Global Business in Context

GLOBAL BUSINESS IN
CONTEXT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Company Outline.........................................................................................................................3
Comparison on Countries (UK and Ireland)................................................................................3
Entry Mode Analysis...................................................................................................................8
Recommendation.......................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Global business can be defined as the international trade whereas global business i.e. a
company that run it’s business around the world. It is important for the company because it leads
extensive competitive advantage and high level of competition between the companies which
helps it to become highly competitive company in the global market by offering high quality
product at lower costs (Swanepoel, 2018). To understand role of global business has an example
Sollatek. It is a small-scale manufacturer and world leader which is established in UK. This
company has goal to expand it’s at global level so it targets, Ireland country for expanding
purpose. In order report will provide comparison on countries i.e. UK and Ireland EU country
based on the global business environment with the support of analytical tool i.e. Pestle analysis.
MAIN BODY
Company Outline
Sollatek is a small-scale UK-based small-scale company that manufactures tubes and
valves. It is a world leader company in the context of voltage protection, power control,
temperature control, solar energy and energy saving (Ahi and et.al., 2017). It has plan to expand
its business at global level because it wants to maximize revenue of the products by selling them
at international level which ultimately enhance approach of the business to other potential
companies. To expand its business, Sollatek targets EU country i.e. Ireland wherein it will locate
its business in Carbazone. There is a reason to select only this particular country such as it is
quite financially strong country and near by UK so there are several rules and regulations are
similar like UK so it does not have to face any cultural issue. In addition, citizens of EU country
travels, settle or work anywhere but only in the UK country. So, company is aware about EU’s
citizens requirements and needs. One of the most important factors is that company manufactures
tubes and valves that are highly demanded by people of EU’s member country Ireland. So,
Sollatek select only this particular country for business expansion purpose.
Comparison on Countries (UK and Ireland)
Different factors i.e. political, economic, cultural, environmental, technological and legal
aspects that plays vital role in developing comparison between Ireland and UK. However, there

is a particular analytical tool that encompasses all factors i.e. political, economic, socio-cultural,
technological, legal and environmental which supports company to analyse it’s external
environment of business before entering into new market. The analytical tool is pestle analysis
model that uses by most of the companies to analyse external environment of business before
entering into new market or launch new product and services (Kasemsap, 2016). This analytical
tool is used by Sollatek to develop comparison based on the global business environment in
respect of two countries, named; UK and Ireland. Factors are mentioned below:
 Political factors: Political factors are tax policy, trade restriction, tariffs, political
stability, environment law etc. which impacts company’s profitability, operations and
productivity.
Ireland: Ireland is completely controlled and leaded by local of government this country who
has chosen by local people through voting system. There are the great opportunity for the
Sollatek company because it does not have to face any political issue. It can adapt their political
policy and follows all rule and regulation of the Ireland government without worrying about
political changes because there has strong political stability. In addition, there has free trade
policy (FTP) that will support company to sell it’s manufactured product in other countries
without giving extra tax. Local government invites MNCs for generating high employment
opportunities.
UK: On the other hand, UK has strong political stability as Ireland but UK’s government has
over control on all national activities. But Brexit has led advanced change in political policies,
taxation policy etc. due to this Sollatek has already faced financial loss in it’s business because it
has to pay extra tax to get raw material for the product manufacturing. Government does not
allow any company to trade it’s product into multiple countries due to trade legislation.
 Economic factors: It includes inflation, interest rates, consumer confidence, employment
rate, disposable income etc. impacts on organization’s economical scale.
Ireland: Ireland’s current economic conditions are facing some slowdown right now due to the
corona virus pandemic. There has good education system so number of people are too much
educated in the country. It is a great opportunity for the Sollatek company because it gets highly
skilled suppliers at minimum wage because there has high unemployment rate as compared UK