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Global Business Portfolio - Pros and Cons of EEC, Reasons and Challenges of MNC Internationalisation

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Added on  2023/06/07

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Global Business Portfolio covers the pros and cons of the European Economic Community (EEC) and the reasons and challenges faced by Multinational Corporations (MNC) when internationalising. The first section discusses the benefits and drawbacks of the EEC, while the second section critically examines the reasons why MNCs go global and the typical challenges they encounter. The content includes examples and solutions to overcome these challenges.

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Global Business
Portfolio

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Table of Contents
A. Individual Notes 1 ......................................................................................................................3
Conduct an online research on The European Economic Community (EEC). What are the pros
and cons of the EEC? ............................................................................................................3
B. Individual Notes 2 ......................................................................................................................4
Critically discuss the reasons why Multinational Corporations (MNC) internationalise and the
typical challenges they encounter. .........................................................................................4
C. Individual Report ........................................................................................................................8
Select an MNC and analyse how the company could enter an international market that it does
not have a presence. The report should cover the following: ................................................8
Introduction ...........................................................................................................................8
Analysis of Domestic Market-................................................................................................9
Strategy of internationalise.....................................................................................................9
Mode of entry, challenges it may find in the country and possible solutions-.....................10
Leadership qualities that supports the market entry-............................................................11
Conclusion............................................................................................................................12
D. Individual Reflective Essay......................................................................................................12
Briefly summarise what you have learned from this module and how you review your own
entrepreneurial qualities.......................................................................................................12
REFERENCES..............................................................................................................................15
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A. Individual Notes 1
Conduct an online research on The European Economic Community (EEC). What are the pros
and cons of the EEC?
The European Union was formally established on November 1, 1993. European arrangements
and coalitions, be that as it may, have been set up starting around 1949 when NATO was shaped.
The European Economic Community was framed in 1957. Since the 1950s, different businesses,
including coal and steel, have attempted to make one substance serving all Europeans rather than
lined countries serving little areas of the populace.
With the commencement of Brexit and an expansion in psychological oppression, the objectives
of the EU stand yet to be determined(Bruyndonckx, Coenen and et,al., 2021). Here are the
benefits and disservices of the European Union to consider.
The entry which is forced of Maastricht Treaty in the year 1993, the term EEC was changed into
the European Community that shows the large range is covered into policy economically. This is
formed when three communities of Europe that includes EC, which is collectively managed in
form of 1st constitute into three pillars of European Union, that also founded treaty(Swann,
2018). The European Community existed within the form which was abolished in 2009. the
treaty of Lisbon, that was incorporated the EC's institutions in the larger frame work of EU that
provides the EU can be “replaced and be successful in the European Community'.
Advantages of EEC-
It creates a hihgly influencial block economically - Individual countries inside the
battle of Europe to hold effect globally as a result according to their size. Due to having
few little countries joined for one financial reason, more affect are applied on worldwide
and nearby financial aspects. Biggest monetary blocks made better import and product
amazing open doors, better evaluating on needs merchandise, and deregulation potential
open doors all assistance to help the general advantage of Europe.
Travel Becomes Easier- With various countries of Europe cooperation, it has created a
general citizens which is fairly borderless for movement objectives. There are low
designated spots, consumer passage concentration, and other kinds of ID checks prevents
prevents expected while making the trip from one country to another(Domazet, 2018).
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This takes into account free travel inside the landmass for the people who are applied for
the suitable ID.
Disadvantages of EEC-
Restrictions and Fewer borders which means high opportunities for nefarious
desires- History are shown us that us that single individual, with the right encouragement
and instruments, can caused a ton of devastation for general peoples. Beginning around
2010, there has been an expansion in vehicular assaults and other dread like occasions
that have happened on European soil. The exceptionally organized Paris assaults
in November 2015 killed 130 peoples and a few have happened according to that point
forward. With open lines comes greater opportunity to create problems.
Developing an overlooking government did not heal division- The vote of new Brexit
is proof where the Europe can appreared to be joined in the Union, yet the old divisions
actually exist(Aleknevičienė and Mušeikytė, 2020). The European Union has
demonstrated that they facilitates supportive benefits according to financial outlook, yet
there is as yet a patrotism feeling that provides the underpinning of what has been worked
beginning around 1993. All in all, Brexit shows that that the amicability present is
something else for visible presentations as it were.
B. Individual Notes 2
Critically discuss the reasons why Multinational Corporations (MNC) internationalise and the
typical challenges they encounter.
The Reasons of MNC going on international platform-
Enhancing potential revenue - Whenever companies are depleted about experiences of
learning at home, they go to global extension to assist with developing goodwill of
business. For some companies, worldwide development provides an opportunity for
investing markets and get closed enough to a huge number of customers, hence deals are
expanded.
Entry in New Market- In case if your company are effective in particular nation of
origin, then it is the right time for taking a gander at business sectors in foreign. Be that
as it may, before you entering in new market, doing research is basc. Whether it has been
taken a gander at developing business sectors in the country of South America, trend

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setting centre of innovation points in Asia or investigating developed markets in Europe,
every locale facilitates a huge opportunity for extension gains.
New Consumer Base- One more benefits of growing foreign is that it facilitates the
opportunity to not only just for providing to their ongoing administration to another
customers base yet additionally to contributing and presenting new
items/administrations(Bhagra and Sharma, 2018). Due to having more extensive
customer base, firm easily produced more increment and business deals.
Expansion Permits To Diversify- Running the activities of business in the home market
can restrict potentials for benefit. One of the drawbacks companies faced when they
doing their task only in single nation is the openness to showcase changes. Taking the
business gloabally allowed you the potential opportunity to expand your sectors in
business, so the level of your income is more steady. On the off chance that your home-
grown market is dialing back, enjoying the advantage of a global market will assists with
padding the company at the time of more slow financial times.
Greater Access To Talents- One more superb benefit of managing your business
globally is that you achieved admittance to a high prominent pool of capability.
Employing global ability can brings many advantages which involves progressed abilities
of language and different instructive foundations. Likewise, extending universally
additionally allowed companies organizations to use neighbourhood labourers who have
the aptitude to impart and serve your clients (inside a same time region) with no
confusions.
Gaining Competitive Advantage- Go to advertise before your rivals do. Expansion of
abroad allows you to hide a soaked market. Extending abroad facilitates you admittance
to new customers and within market where your competitors do not work.
Improving The organization's Goodwill - One reason why companies expaand their
activities globally is to have the option to provide a a dependable support to their
worldwide customers. A decent global standing will drawn in new customers (Jinand,
Hurd and et,al., 2018). Expanding abroad allowed an company to develop name
memorability and lay out validity in universal manner.
Saving of Cost – With help of setting up in different country, a business will really wants
to brings their functional expenditure and set aside fund. Many companies have viewed
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as its worthwhile to move the part of their arranging work to various business sectors
because of low expensive task expenses and more reasonable capability.
Offset Fluctuations in your Local Market- if the firm expand globally and also
diversify market presence which offers the firm to mitigate the risk for long-term which
eventually affects fluctuating the international and global market. To enter the
international market the firm allows to lower their dependency on their domestic market.
Instead of considering high and low of the market, the firm needs to use the profitable
marketing operations to offset the poor performance of other. The further reason why the
firm goes on international platform is that they get benefits over the foreign market which
helps to introduce the different services and product based on the domestic market. The
product which performs poorly within the local market, the product can also perform
offset if its introduced in other country where consumer prefers a better reception.
Improve the firm's margins- Going international gives the company's business to new
technology and new talent. This can help to bring down the operational and production
costs, which allows the firm to improve the profits and sales margin. Many countries like
India, china and many Asian countries has also gained a good reputation as they have
increased their economy by increasing their production over places. In foreign countries
firm gets more affordable material, labour costs, talent etc which allows the businesses to
be constant on manufacturing costs down while by also ensuring the business
performance and quality products.
Challenges faced by MNC-
Language Barriers- During the time of participating in global business, it is important
to focus on the dialects expresing to the nations to which individual are hoping to grown
(Tolstoy, Özbek and et,al., 2021). Does your product provides data to make an intereption
of well into other dialect? Focus recruiting a mediator and counselling a speaker locally
and inhabitant of each country.
One assumption of an product "decreased in interpretation" which created from extravagance
vehicle brand Mercedes-Benz. While at the time of making entry in Chinese market, the
company picks a Mandarin Chinese name which is sounded as "Benz": Bēnsǐ. This names
creates an interpretation an interpretation of to "hurry to death" in Mandarin Chinese, which was
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not impressed Mercedes-Benz required to made with help of new crowd. The company urgently
in form of occuring change its Chinese name to Bēnchí, which means "running fast and rapidly."
In addition to this it is focusing the the dialects which is expressed virbally by your company
colleagues located in workplace globally. With help of putting various resources in form of
translators can support in aspect of guaranteeing your business kept on working without a hitch.
Differences in culture - similarly as each nations have their own cosmetics of dialects,
every likewise have it own specific culture or mixture of communities. Culture basically
comprised of special times of year, food sources, traditions, expressions and normal
practices follows with specific gathering (Zahra, 2021). It is significant and increasing to
to identified about various ways of life of each nation where individual will carried out
on with task. While overlooking groups in abroad workplaace area, providing items to
their possinle clients and retailers globally, or run an abroad created office, shows the
way that you have required some investment to comprehend their communities can
display the ability and regard to understand individuals on a profound level essential to
effectively direct business.
Example- One type of illustration regarding social contrast between Spain and US on the basis of
a regular business day. In US, the timing of working hour is 9 a.m. to 5 p.m., frequently
expanding later or prior time. In Spain, be that as it may, the hours of working are regularly 9
a.m. to 1:30 p.m. what's more, 4:30 to 8 p.m. The break time in business day is considered for
rest, and this rest is taken after lunch in numerous Mediterranean and nations of Europe.
Maintaining Global Teams- Other challenge of business globally is to overlooking
employees who experienced everyplace. During the time of attaining task collectively, it
tends to be challenging to presenting language obstructions, time region, social contrasts
and various levels of innovation assess. To fabricate and kept strength in areas for
positive relationship with your groups globally, worked with ordinary registrations,
ideally utilized the stage of video conferring and due to this individual easily
communicate continuously. The research of Gallup displaays that representatives who
have registration in standard manner with their supervisors are multiple times bound to be
locked in working than employees who don't.

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Example of this challenge can be – In that point when distance partitions groups, as it has for
particular at time of Covid (COVID-19) pandemic, the most essential element is openess which
guaranrees everybody feels locked in and esteems.
Inflation and exchange rate in currency The worth of dollars in your nation would
not generally occurred to same sum in another nations' cash, nor will the worth of money
reliably merit same measures of of labour and goods (Naradda, Rajapakshe and et,al.,
2020). Dive more deeply into fund trading rates between individual nation and those who
intends to carrying on with task. The standard of conversation is one of the worth
between the two countries monetary forms. For example, the ongoing swapping scale
from the dollar of Canadian to the United States dollar is 0.77, meaning one Canadian
dollar is equivalent to 77 pennies in US money. Makes it a highlights watch trade rates
intently, as they can change.
It is likewise vital to analyse expanding rates, which are the rates that general level of cost in an
economy increments year over the year, coordinated as a rate. The rates of expansion change
across various nation and can impact work and mterial cost, as well as item evaluating. Intently
following and understanding these two types of rates can facilitate significant information
regarding the worth of company items in various areas after some time.
Nuances of Foreign Policies, Politics and Relations- There is no such things as
business in a vacuum — It is affected by legislative problems, rules, strategies and
communication between various nations. Therefore, those communicaations are
incredibly nuanced, and due to this individual actually and intently follows news related
with various nations where individual carried on it with task. The choices are made with
pioneers politically which influenced charges, rules in task, unrefined cost substance,
school systems, transpotation framework and that is only a starting. One speculative
model Reinhardt shows in business globally which assumes that the government of China
select to finance Chinese ranches of diary, it effectively impact the ranchers of dairy in
various encompassing nations (Mukherjee, 2018). It is on grounds that, with addition of
financing, Chinese dairy homesteads might create an excess of dairy products, making
them for growing their business sectors to adjoining nations.
It is both invigorating and scaring that the subtletie of global legislative problems, relationship
and arrangement an impact in the business of individual. Remain informed and settled on
essential choices as new information emerges.
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C. Individual Report
Select an MNC and analyse how the company could enter an international market that it does not
have a presence. The report should cover the following:
Introduction
CafePod is the company which was introduced by three friends who met over pizza's and beer's
in London. The firm born year is 2010. This company provide services of food and beverage.
The company has 11-50 employees working under them(Sinkovics, Sinkovics and et,al., 2018).
For all the information there is Website available i.e. www.cafepo.com. Its headquarters are in
London, this enterprise is Privately Held and has specialities in Drinks, Hot Drinks and FMCG
etc. In present, after a decade the company is working passionately towards the firm's goals
which is to make high-quality and great-tasting coffee which excites and also is very easy to
prepare.
Analysis of Domestic Market-
In UK, chain of bistros has becomes 5.6% and contributed29.1% small pieces of pies in 2005, be
that as it may, free cafés had becomes only just 2% and experience the time of troublesomeis
around similar time. There are 14,022 bistros in UK, yet 62% of espresso customers had visited
top three chains of cafés: 1,175 Costa, 731 Starbucks and 440 Cafe Nero. At the time of multiple
months in 2010.Moreover, non-experts of cafés are followed the means of chains of bistro and
converted into the ongoing possible contenders of the espresso market, for instance, drive-
through eateries and the coffee houses in the general store. Therefore, here, we classified that
vitally previous contenders of cafés are one of the best three chains of bistros and non-expertise
of coffee houses are current possible contenders. The main competitor of Cafepod are through
various way to dealing with gain the customer and increments their portion of espresso market. I
aspect of Costa it is the main 1 of chains of cafés, by establishments; it has north of 1,300 bistros
in UK. Regarding Costa,10% of the dedicated customers make more than half of meetings
(Fragouli, 2020). It carried the vital elements to this report that continues to exist consumer
becomes the steadfast customers will be the test of future. Regarding this challenge Costa used
the prepay cards which is one of their process, with prepay card customers easily get 6% higher
spending option from others. Beside,Costa fostered new type of items, for instance, lower
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calories or caffeine beverages to fulfil and draw in new consumers who concern their weight and
well being.
Strategy of internationalise
The SME can use method like Lean Approach, this approach can be a way to optimize the
resources, the people, energy and efforts of the company to create value of the consumer. This is
based on two components one respect of people and second continuos improvement. This
approach can also help the enterprise Cafepod coffee House to develop the global expansion
strategy. Going Lean will be allowing the firm Cafepod to adapt the changes as they happens,
Instead of being a low profitable set to an ineffective,righteous 10 year plan. The excellent path
to begin and to establish a section in the business plan to test the targeted marketplace from
operations and sales perception diving ahead first(Calvelli and Cannavale, 2018). The firm
should make sure of the responds of the market, it should be well to the company's product and
confidently justifies the investment in fixed assess and infrastructure. The SME like Cafepod
should be sure and precise about there plan before investing thousands of dollars and lot of time.
Mode of entry, challenges it may find in the country and possible solutions-
Mode of entry- When the firm is similar with scale of entry, then the firm needs to take its
business internationally. This may want some certain consideration as the decision can
importantly impacts the results. Few modes are discussed beneath:
Exporting- It is one type of immediate offering to merchandise and/or administrations in
another location or country. It is a very popular and common tool for maake entry into
unfamiliar market. In this type of tool individual did not need to put into creation of
offices in the selected company. All goods are as yet deliverable in own nation. Then
shipped off unfamiliar nations available to be buyed. Nonetheless, raising of cost in
transportation are probably gone to develop the cost of sending out quickly rather than
later.
Licensing- Licensing allows more than one company according to individual country
objective to use own property. Here property is transferred to typically immaterial - for
example, _trademarks, creation methods or licenses. This tool will payed a charge to be
allowede a option for utilizing the property. Permision required next to no speculation
and can provide an exceptional yield in venture(Jiang, Wang and et,al., 2020).
Franchising- It is fairly like permitting in that licensed innovation freedoms are provided
to franchiser. Notwithstanding, the principles for in which way franchisee completes

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business are typically extensively severe - for example, any process should be follows, or
explicit parts should used in manufacturing.
Challenges and solutions Faced by the firm in other country-
Slow growth in the developed markets- The initial challenge faced by the firm is slow
growth within the develop target marketplace. This is a fact that in developed markets the
growth rate has been slow down. The global market eventually remains to re call that
instead of slow growth rate the marketplace still has large markets and this will be
continued by the marketers to be targeted within the marketplace.
Falling growth rates in emerging markets- The second wide challenge faced by the
global market is falling the growth rate within the emerging marketplace. Instead, the
growth rates falls there is a lot of emerging markets, the marketers has to remember that
the emerging markets has to continue to grow faster and faster instead of develop
markets. This can happen because of the rising income levels and large population that
boost-up the demand within the marketplace(Vecchiotti, 2018). However, all the global
marketing firm's needs to after the developed markets and also to focus on the efforts on
overall emerging markets also.
Demographics- The third challenge can be demographics. The population of western
markets is aged and as well as younger population if its considered in emerging
economies. The emerging markets will however remain the most significant and
international marketing companies, However, the firm like Cafepod will need to be
constant and be focused in their emerging markets.
Increased competition and Innovation- The fourth important challenge is to increase
innovation and competition. The firm in the developed world may face challenges like
more and more firm's like Cafepod emerging within the marketplace. The firm Cafepod
must focus on innovation which helps to reduce the costs or also increases the benefit to
their consumer will be thriving.
The increased role of communication- The last significant challenge is to consider their
influence on increasing communication role. The role of communication has to more
focus on the firm's from one part world which acquires the consumers via various parts of
world. A successful global market enterprise will however, will be focusing more and
more on the efforts to effective communication with its consumers.
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Leadership qualities that supports the market entry-
Self-development- Self-development means the setting ahead to time every week which
prioritize what the leader wants to achieve in the ahead week(Sandybayev, 2019). This is
helpful to the leaders to become more intentional. “this can be counted as quick
experience of leaning, it can be whether through short videos, online trainings or can be
online videos”. The process is part of learning in which people learn to deal difficult
situations, difficult conversations and also how to motivate those people who are difficult
to motivate. Learning is the term which is never ending, this should be continual.
Team-development- The team development is as crucial as developing the members of
the team. Mostly managers adopts leadership approach which enhances the developing
partnerships with workers. In this model, superiors grasp developing equation with
employees, working altogether as a team will helps the leader to achieve and develop the
goals which allows the workers to take more independency on completing their own
work. Leader should check with the team weekly, review their work and also engage with
them to know how there are feeling in international market.
Conclusion
This portfolio can be concluded as the phrase global organisation is suitable phenomenon which
displays real enterprise transactions and huge expanses among some of individuals from
distinctive cultures and with distinctive tactics. This can also be concluded that in present time
selections for crossing home borders and internationalize the enterprise is a prerequisite for
critical boom and improvement of the enterprise entity. As such, the owner of the SME is
constantly looking and evaluation of ability region in which the organisation from small or
medium enterprise entity could end up the company corporation striving to continuously
increasing and growing its personal portfolio. To make a choice to make investment outdoor of
the personal borders is complicated and compete procedure. This procedure is finished thru
numerous degrees and tactics that comprise a long time complete evaluation and scanning newly
elected funding location.
D. Individual Reflective Essay
Briefly summarise what you have learned from this module and how you review your own
entrepreneurial qualities.
I have learned from this module that the term international firm is more likely very general
phenomenon, that reflects actual transaction of business and large expenses between many
individuals from various cultures and with various approaches. In todays time woldwide
company is a seriously general peculiarity, which shows geniune dealings and enormous
territories between different individuals according to different societies and by using different
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methodologies. Can be presumed that the existed options for crossing home-grown borders and
internationalizing the business is very important for serious improvement and development of a
substance in business (Guzmán, Rozenfeld and et,al., 2020). Thusly, the entrepreneur is
continuously looked and examination of potential areas where the company from medium and
little business element would coverted into a corporate groups endeavouring to continuously
extending its own profit margin . To go with a option to contributing beyond the own borders is a
perplexing and far reaching process. This interaction is completed with various phases that
contained a drawn out with examination and filtering recently chose speculation area. In this
point when company contend beyond their country, they faced different types of tension and
issues. These tensions and difficulties kept us with seriousness, expect from the company cut
costs, all togethered the shoppers for do not assesing their products as excessively costly (Bonsu
and Twum-Danso, 2018). This promoted the requirements to identify creation offices where
creation price are less, and improvements in high normalized products in various nations.
The entrepreneurial qualities which is I have learned from this module:
Every excellent entrepreneur shares various critical attributes, that can be witnesses with time by
being helpful to thousands of successful leaders. When to start the business, these are some key
elements that should comes to my mind while reading this module and pertain towards the
success of the firm Cafepod:
Problem-solving- First up on our rundown is a characteristic that is frequently
underestimated. As a matter of fact, it's so essential to can issue tackle and ponder main
things regardless of what comes in professional life! Assuming that Individual
continuously hoping for taking care of business, here individual have this range of
abilities to evade what is happening life tosses our direction. The effective business
business visionaries go beyond their usual range of familiarity to track down
arrangements.
Impeccable communication- As an business person, individual achieve barely anything
in the event that individual required relational capabilities. Articulating one's thoughts in
obvious manner and succinctly can frequently be the contrast between somebody and
normal expert who succeeds. This applies to your everyday connections and the manner
in which you convey on paper and email.r profession! The expert business person go

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beyond there manual range of familiarity to track down arrangements during the time of
resisting the urge to panic under stress.
Determination to excel- This next feature is something that mains the person who
understand what it seemed liked to come up short can truly appreciable: assurance!
Effective businesses visionaries let nothing protect them from achieving where they
required to be, involves disappointment. Life did not generally task out accoding to
expectation, yet there are still approaches to completing needs results insofar as one has
persistence.
Calculated risk-taking- If it is not used according to expectation then quality are a
shortcoming; be that as it may, faced difficulties and going with determining options have
supports various numerous business visionaries by succeeding. For example, a visionary
of business could take a chance with not extending their goods providing when deals are
not in presence. On the off chance that determined gamble taking were absence in
business person's range of capabilities, the people would not have the choice to rapidly go
with that choice.
Strong leadership skills- During the time of implements credits are fundamentals of
everyone, they becomes much more common while managing their own business. On off
option individual did not have authority abilities, and due to this group of individual did
not cooperate really with same vision and comprehension of your pioneering aims.
Passion and ambition- Enthusiasm is glimmer of energy of individual eyes when he
become gotten some data regarding the business, or for few purposes, it is important in
individual life. Driving business visionaries to do what they truly do consistently desire.
There is a possibility that energy that droves them into business venture since starting a
business are unnerving and questionable, not for cowardly. Business people have an
intrinsic drive to make progress, which might have originated from being enthusiastic
about their thought(Kahiya, 2020).
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REFERENCES
Books and Journals
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