Global Strategy for Rowlinson Knitwear: Reasons, Strategies, Country Analysis, Mode of Entry and Challenges

This report discusses the global strategy for Rowlinson Knitwear, including reasons for internationalisation, strategies for internationalisation, country analysis using PESL and Porter's Five Forces, mode of entry, and challenges faced by the company while internationalising.

Global Strategy

Table of Contents
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................4
TASK 1.......................................................................................................................................4
Give reasons for internationalisation with support of market data of headquarter market. With
support of competitor analysis, economic data and porter's diamond give reasons for it. .........4
TASK 2.......................................................................................................................................6
Explain about the strategies for internationalisation purpose. The selected strategy should be
evaluate and justified...................................................................................................................6
TASK 3.......................................................................................................................................7
COUNTRY ANALYSIS............................................................................................................7
PESL Framework to determine attractiveness of selected Country............................................7
Porter's Five Forces Framework to analyse Country's Market-Environment.............................8
TASK 4 ......................................................................................................................................9
Explain about mode of entry and justify it by evaluating the task 1,2 and 3 .............................9
TASK 5.....................................................................................................................................10
Problems faced by Company while Internationalising.............................................................10
Problems or Challenges Faced by New Companies while Entering New Market....................10
TASK 6.....................................................................................................................................11
Provide solutions for addressing the issues discussed in above task........................................11
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Global strategy refers to that strategy which a company develops to expand into the
global market. The reason behind for developing global strategy is to increase sales across the
world. The term global strategy basically includes standardisation, multinational and
international strategies. Rowlinson knitwear is taken into consideration in the present report.
Rowlinson knitwear is a manufacturer company which supplies high quality garments to
independent retailers of corporate wear and school wear(Hilson, Sauerwein and Owen,
2020).The company belongs from manufacturing and retail wholesale industry and company's
turnover is 15.6 million according to 2020 year. The company currently employs 53 people and
company is plan to expand in Nigeria country. The present report covers analysis about reasons
for internationalisation and about the strategies for going at international level. In addition to
this, the report will cover discussion about country analysis with support of PESL and five
forces. Moreover, the report will cover analysis about mode of entry and about issues at
managerial and organisational level. The report also consist of solutions for problems faced at
managerial and organisational level.
MAIN BODY
TASK 1
Give reasons for internationalisation with support of market data of headquarter market. With
support of competitor analysis, economic data and porter's diamond give reasons for it.
Rowlinson knitwear is a company which is from manufacturing industry and it gives
opportunity to diversify its market. When company expand themselves then it gives access to
new customers as well and in those market where company does not operate themselves.
According to latest data of Rowlinson Knitwear, company has earned gross profit of £4M and
turnover of £16M(Radojevic and et. al., 2021). The main reason for going at international level is
the need of staying competitive into the respective environment. There are lots of companies
who compete with Rowlinson on a drastic level. There are around 21084 companies who are in
retail industry in England who compete with their own strength in this competitive market.
Rowlinson is famous and unique due to its high trusted and engaged workplace and its effective
HR policies makes the workplace culture very successful. The competitors also tried to innovate

themselves and take initiative towards to make changes in their work culture so that they can
give tough competition to Rowlinson.
According to porter's diamond model which is basically designed to understand the
competitive advantage that country has due to certain factors which are available to them. It
basically includes four elements which are firm strategy, structure and rivalry, factor conditions,
demand conditions and related and supporting industries.
 Firm strategy, structure and rivalry: The national context in which companies operate
largely determines how companies are created, organised and managed so it affects their
strategy and how they structure themselves. For international competitiveness, domestic
rivalry is instrumental so it forces companies to develop unique and sustainable strengths
and capabilities(Lu and et. al., 2020). In context to Rowlinson knitwear, they have tried
to innovate themselves by giving unique wears into the market and they have build such
kind of work culture so that they can give tough competition to their rivals.
 Factor Conditions: These are the conditions which refers to the natural, capital and
human resources available. With respect to Rowlinsn Knitwear, they are rich in terms of
human resource policies and innovative ideas which makes the different wear attractive
and stylish as well.
 Demand Conditions: The presence of sophisticated demand conditions from local
customers also pushes companies to grow, innovate and improve quality as
well(Dudovtseva, 2020).With respect to knitwear company, they can easily grow
according to their country's demand level and can also innovate stylish wears for their
customers.
 Related and supporting industries: The presence of related and supporting industries
gives an excel to local industry. Suppliers are crucial in terms of enhancing innovation
through more efficient and higher quality inputs, short lines of communication and
feedback.
So by these four forces it has been analysed that a company needs to go for international level so
that they can experience at large scale and can grow into innovative manner as well.

TASK 2
Explain about the strategies for internationalisation purpose. The selected strategy should be
evaluate and justified
There are some strategies required for going at international level and it is defined into
following manner:
 Transnational Strategy: A transnational strategy is that where business has centralised
operation that is based in one country. It oversees assets and operations is defined as
transnational strategy (Lazarevic and Brandão, 2020). This strategy is involved into
international business structure where company's global business activities are
coordinated through interdependence and cooperation between its head office and
operational divisions.. It is also interdependent between retail outlets and subsidiaries.
 Multi domestic strategy: It is that strategy by which companies try to achieve maximum
local responsiveness by customising their product offering and marketing strategy to
match different national conditions. There are certain activities which are tend to be
established in each major national market where business is done. It includes production,
marketing and research and development activities.
 Global Strategy: A global strategy is that strategy that a company develops in order to
expand at global level. The purpose of developing global strategy is that to increase sales
across the world. Global strategy basically includes standardisation, international and
multinational strategies. Developing a global strategy is beneficial for the company in
various ways which includes making sales in new markets, increasing global brand
awareness and many more(Dantas And et. al., 2021). Global strategy is adopted by the
company in that case when it wants to compete and expand into the global market. It
refers to those plans which has developed to target growth beyond its borders.
 International Strategy: It is that strategy or business plan which is created by company
to do its business in international markets. An international strategy requires analysis of
international market where studying certain resources, defining goals, developing
offerings and understanding market dynamics is essential. There are some steps involved

in framing strategies at international level which includes market analysis, resource
identification, setting objectives, market entry and product and service offering.
For Rowlinson Knitwear, they have to adopt global strategy so that they can expand into
different markets and reach out to different types of customers(Song, 2020). They get the
opportunity to interact with other companies and businesses as well in order to increase their
sales and brand awareness as well. By adopting this strategy it will give them a competitive edge
and can earn profits on large scale.
TASK 3
COUNTRY ANALYSIS
PESL Framework to determine attractiveness of selected Country
PESL is a framework with combination of strategic tools that can be used to identify,
analyse and monitor the macro environmental forces that may create profound collision on
organisation's performance. This tool is especially significant while starting a new enterprise or
entering a unknown market (Scipanov, 2020). Given elaboration is the PESL framework to
analyse Intercultural, Demographic, Ecological and Ethical variants effecting environment of of
NIGERIA:
Political Factors: It explains all sort of factors about how and to what degree a government
intervenes in activities of a business or industry in an economy. Nigeria is a Federal State
Republic, with friendly relation to countries around the world(Bush, Coffey and Fastenrath,
2020). However, there are various challenges that a company needs to tackle while entering
its market such as politics, corruption, violence, tribalism, etc.
Economic Environment:Economic factors are vital determinants of economical performance of
a country, which includes income levels, poverty, inflation-deflation, unemployment rates,
etc. Nigeria is a economy booster it would provide huge benefits of trade in terms of Returns
on Invest (ROI) to the business.
Social Factors: This represents the demographic attributes, customs, cultures, norms, etc. of the
country or place which includes population growth, age factors, health, lifestyle, etc.
Although, Nigeria has faced with massive social riots, tribalism, crimes and human
trafficking but it is working towards educating people and strengthening core values.

Legal Factors: These factors overlaps along political factors, but legalities are more specific
laws related to employment, copyright and patenting, safety and health, employment laws,
consumer protection, anti-discrimination, etc(Lo, 2021). Copyrights- patenting and land
acquisition are made easy by Nigerian Government that helps upcoming businesses.
Porter's Five Forces Framework to analyse Country's Market-Environment
It is a analysis framework that demonstrates level of competition within a certain
industry. This is helpful for the new business entering in a new industry or foreign locus to
determine profit potentials and competitiveness of their business. Elaboration of PORTER'S
FIVE FORCES is given below to understand NIGERIAN market: Threats of New Entrants (Low): Within a particular industry level of prominent
competition is one of the important players that affects a company. Nigeria does have a
good political image but has bad reputation for establishing businesses that reduces
chances of new entry in industry. Bargaining Power of Suppliers (High): This force interprets how much the suppliers are
capable to rise their sales prices or reduce quality of products or services, which in-turn
reduces industry's profitability potential. There are few suppliers in Nigerian market that
makes them to determine their rices thus increasing cost of production. Bargaining Power of Buyers (Low): It can be termed as the market of outputs, that tells
whether customers are able to increase tension on company by affecting prices in the
market. Buyers are unable to influence prices due to low availability of distributors in
Nigerian market. Rivalry among Existing Companies (low): Nigeria is a Monopolistic economy where
very few companies exists that helps new companies in maximising profits could be
attained by the company because of lack of competition(Avila and Sozzo, 2020).
 Threat of Substitute Products (Medium): Nigeria is a underdeveloped country which is
continuously growing with wide scope for upcoming companies. A few substitutes are
available for any product in the market which reduces chances of substitution.

TASK 4
Explain about mode of entry and justify it by evaluating the task 1,2 and 3
There are certain modes of entry at international level which includes licensing, franchise
and merger and acquisition
 Licensing: An international licensing is a kind of licensing agreement which allows
foreign firms either non-exclusively or exclusively to manufacture a proprietor's product
for a fixed terms in a specific market(Salmon and Tordjman, 2020). Licensing is a kind
of business arrangement where one company gives permission to another company for
manufacturing its products for a particular payment. Licensing basically involves
allowing other company to use its patents, trademarks, copyrights and other intellectual in
exchange for some percentage of fee or revenue.
 Franchise: Franchising is basically a method of expansion that established or new
franchises can use to move into new geographical markets and areas. Under this system,
franchisor grants to the franchisee with exclusive power to distribute its services and
goods in establishments which are furnished and equivalently equipped as well.
International franchising is important because it includes the worldwide expansion of
business without giving up too much control.
 Merger and acquisition: A merger occurs in those condition when two separate entities
combine together for crating a new and joint organisation. Whereas acquisition refers to
that takeover of one entity by another. From legal perspective, merger requires two
companies to consolidate into a new entity with a new management structure and
ownership(Al Mubarak, 2020). Whereas in the case of acquisition, a new company does
not merge
From the above all modes of entry, licensing is the best way to enter into a new market. It
is the best method because it is a kind of legal way through which company can easily enter but
it requires some formalities and legal proceedings and on the basis of that company can expand
themselves on a large scale. Licensing is the way through which company jump the borders and
tariff barriers as well. This method also need lower capital and also has potential for large return
on investment.

When company enters into new market with this method they have to face low risk with
an established product and also need to take fewer legal and financial risks. That's why licensing
method is the best way to enter into a new market.
TASK 5
Problems faced by Company while Internationalising
South African business are under focus on continuous basis as companies which cited
growth opportunities there are at two ends(Otsuka and Ali, 2020).Although certain companies
have gained millennium of profits, many companies has also been forced out by the poor
economic conditions and improper regulatory operations of government.
Problems or Challenges Faced by New Companies while Entering New Market
Nigeria has largest contribution to population in Africa, which boats calibre, dynamic,
ambitious, entrepreneurial and educated people. Nigeria is among the fastest growing countries
in the globe, that promotes chances for new arrivals to experience fast growth. There are certain
challenges that are faced by mangers of new establishments in Nigeria which are as follows:
Organisational Co-ordination:
Coordination is a function of creating synchronised-rhythmic flow of activities or actions
of people that unifies their efforts towards a single objective. In case of a company there is
synchronisation of action among the employees working in various departments to achieve
organisation's objective efficiently. To achieve successful and effective cordial relations among
the activities of business managers should implement coordinating mechanisms (Zylbeari and et.
al., 2021).Mutual adjustment, direct supervision and standardisation of employees skills, work
processes as well as outputs are the coordinating mechanisms that can be used by management or
organisation to establish smooth coordination.
Socio-Cultural Dynamics:
For evaluating the cultural dynamics of Nigeria HOFSTEDE Insight consisting six
dimensions of national culture is given below: Power Distance Index: Autocratic economy in Nigeria is deeply followed by people so
management could have less efforts in framing cordial relations.

 Individualism v/s Collectivism: Nigeria follows a collective society which is paramount
and follows collectivity among employees and people. Masculinity versus Femininity: Most of country's population is men that means wider
availability of workforce for new businesses. Uncertainty Avoidance Index: People in this country feel threatened and discomfort by
ambiguous/unknown situations so they prefer avoiding new companies. Long term Orientation Versus Short term Normative Orientation: Nomadic life and
normative thinking of people concern them towards truth and great respect of tradition.
 Indulgence: People in social formations and gatherings generally acquire ecstasy and
exhibits desired benefits.
Type of Organisational Structure:
The structures of organisations can be classified as follows that can be implemented in an
organisation: Centralisation: Centralisation can be defined as concentration of power resting in one
hand. In the following type of organisation authority and responsibility rests in the hand
of one superior who takes all decisions and others are employees. Hierarchy of such an
organisation involves two levels consisting of Top level management and employees
which is effective only for a small business operation.
 Decentralisation: It refers to the disengagement of power by superior among the
subordinates. In following type of organisation authority and responsibility lies with the
superiors and some flows to the subordinates and then to sub-subordinates who could
take decision on their behalf. Hierarchy involves many levels like Organisational heads,
Departmental heads, Functional heads, Managers, Employees, Workers, etc. which is
generally followed by huge companies.
An organisation that is going to foot themselves in NIGERIA should try to follow mixed
form of organisational structure involving centralisation and decentralisation for optimum
operations of their business.

TASK 6
Provide solutions for addressing the issues discussed in above task
In order to address solutions of issues faced by Rowlinson Knitwear in Nigeria country is
related to context of cultural, organisational coordination and organisational structure as well. It
is defined into following manner:
For solving cultural issues it is required that company has to study background of people
and different aspects into appropriate manner. It is necessary to have patience and understanding
while entering into new market because on the basis of that company can understand culture and
etiquettes of different country (Hong Hong, 2021).For explaining the objectives of their company
they have to be very clear and display message in such a manner that it can be understood by
every kind of people. In order to solve problem of organisational coordination they have to be
very clear about functions of different departments so that execution can be done within a set
period of time. For solving this issue, organisation have to be very clearly define roles and
responsibilities of employees working into different department. Organisation has to formulate
proper policies and procedures so that work can be executed into appropriate manner.
Rowlinson Knitwear have to focus on mutual communication so that information can't be
misinterpreted among team members. Company has to focus on proper control and effectiveness
in order to solve problem organisational coordination. For solving problem of organisational
structure of Rowlinson Knitwear, it is important to list out needs of organisation. Then it s
necessary to review the current position and then it is required to evaluate employees into
appropriate manner.
After that budget should be set so that results can be achieved within that particular
period of time. In this way, problem of organisational structure can be resolved into positive
manner. These are the solutions for issues faced by company while entering into new country
which is named as Nigeria.

CONCLUSION
The above stated report concludes that global strategy is very important at global level as
well as from perspective of business. It has been concluded that there are certain reasons for
company to go at international level because it not only gives them opportunity to expand
themselves but also gives a chance to increase their profits. It has been determined that there are
certain strategies which are required to go at international level. These can be transnational,
global, international and multi-domestic as well. It has been observed that every country has their
attractive parameters due to which a company can easily expand themselves into positive
manner. There are different kinds of entry of mode which includes licensing, franchising, Merger
and acquisition. One of the best method can be used for entering into new international market.
Every company majorly face some issues which can be at organisational level, cultural and
structure as well. For solving these problems there are some solutions for it which can be applied
into the organisation for achieving objectives within a set period of time.

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