International Business Strategy of Hayward Tyler: Evaluation, Country Selection, and Entry Modes

This report evaluates the current international strategy of Hayward Tyler, analyses country selection using Porter's Five Forces and PESTLE analysis, and suggests entry modes for the company. It also discusses the opportunities and challenges of international business and the impact of political, economic, social, technological, environmental, and legal factors on the company's strategy. Subject: International Business, Course Code: Management

International Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Evaluation of the current international strategy of Hayward Tyler........................................1
Country selection....................................................................................................................3
Entry modes............................................................................................................................5
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
International business basically involves the trade of capital, goods, services, knowledge
across the national boundaries which are present at the transnational and global scale. It includes
the services and goods between two or more countries. The organisation chosen for this report is
Hayward Tyler which deals in pumps and electric motors that involves services, designs and
manufactures critical electric motors. In this report, it involves the initial strategy and link it to
model. In context to Country Selection, it involves the scanning model of a country selection and
look at 3 countries and further recommendations. It further involves the political risks that
involves ethics, culture, corruption and legal systems. In addition to that it involves various
frameworks porter five forces and pestel analysis. It involves the various entry modes that helps
in better understanding them.
MAIN BODY
Evaluation of the current international strategy of Hayward Tyler
Hayward Tyler is a UK based organisation that was founded in the year 1815 and is
headquartered at Luton, UK. It is operating in global markets including the US, China, and India.
It operates in the global energy sector. It also operates and produces liquid-filled electric motors
and pumps in the energy sector. It invests heavily in R&D and the training and development
sector. It also invests millions of pounds in the new Beauty Centre. Hayward Tyler provide
innovative solutions for performance pumps and motors that operate in the most complex and
challenging systems - with high pressure technology, high temperatures, and hard-to-manage
liquids. Its products are supported by a team of product design engineers and service
professionals worldwide dedicated to delivering the highest quality service and technical support
to its customers. The company works hard to give short lead time as possible, to get back to
focusing on its performance (Bell and Cooper, 2018). The company has expanded itself
internationally due to the certain competitive international forces that driven the business
overseas. The key factors behind the foreign trade activities of Hayward Tyler are given below:
There are many opportunities for growth in the international market due to the availability of
services, goods and higher customer demand across the international market (Frasquet and et. al.,
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2018). The number of customers around the world has increased dramatically due to the policies
of free trade by the government around the world to increase businesses, communities and
cultures internationally. Due to the unavailability of certain products in a particular area
Hayward Tyler has found opportunities to improve its presence in various countries across the
world.
Product costs in one area may be higher compared to product costs elsewhere due to the
unequitable distribution of the raw materials. That is why companies get the opportunity to
establish their businesses elsewhere in the international market in the foreign locations. With the
availability of raw materials, cheap labour etc. can help an organization to make more profit in
the international market which is the reason for the movement and expansion of companies
across the world.
There are many competitors in the mechanical industry and developed countries like UK
offer few opportunities for organizations like Hayward to generate higher incomes. In order to
avoid competition in the domestic market and explore the opportunities internationally, the
companies are looking forward to grow globally which offers high growth opportunities due to
low competition. The use of mechanical tools is more expected in the developing countries
which increases the chances of growth in that market (Schubert and et. al., 2018).
Political legal turmoil affects business growth around the world and is major factor that
demonstrates the growth of businesses in the international areas. Due to border policy changes in
recent decade’s governments around the world have made it easier for companies to expand their
businesses overseas. The GAAT, 1947 and the World Trade Organization (WTO), 1995
strengthened the growth of business in the global market by bringing better policies and
favourable opportunities for the companies to grow internationally.
Rapid technological change has become one of the key elements of globalization and which
has also connected the societies around the world. People sitting in one corner of the globe can
order items in one place with a single click on their smartphone. Due to the rapid advances in
technology and the invention of the internet over the past decade it has strengthened the global
trade process. The rapid changes have also forced Hayward Tyler to expand its business
internationally.
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Country selection
The scanning model basically involves the process of environmental scanning which involves
utilization and possession of the information in relation to the relationships, occasions, trends and
patterns within an organization external and internal environment. In context to Country
selection it basically involves the type of active international management that basically
measures the contribution towards the various performance attributes and also investing in the
better performing stock markets of the world. In context to country selection, the analysis
involves various risks such as ethics, corruption, legal systems and culture. The analysis of
various countries could be done with the help of following frameworks which involves:
Porter Five Forces: It is basically a strategic management tool which is used for the purpose to
umderstand and analyzes industry and underlying the levers of profitability when it comes to a
industry. In context to Hayward Tyler, the managers of the company uses Porter Five Forces for
the purpose to understand the five competitors forces that impacts the profitability and develops
a strategy for the purpose to enhance the advantage of competitive and long term profitability in
the services and industrial services and goods. In context to Porter Five forces, it is a basically a
holistic strategy framework that helps the organisation in taking strategic decisions for the
purpose to analyse the present competition. The framework helps in building a sustainable
competitive advantage in the services and goods industry. In relation to Hayward Tyler Group,
the managers of the organisation not only use it for the purpose to develop a strategic position
with in industrial service or goods but also help in exploring profitable opportunities in the whole
industrials sector.
Threats of new entrants: In context to organisation, the new entrants in the organisation helps in
introducing new ways and helps in bringing innovation and puts up pressure on the Hayward
Tyler Group Plc for providing new value propositions to the consumers, lowering the price
strategy and reducing costs. In context to organisations, the company can tackle the threats of
new entrants with the help of innovating new services or products as it results in bringing new
consumers.
Bargaining Power of suppliers: In context to companies who are involved in the industrial
services and goods basically focuses on buying the raw material from various suppliers. In
context to organisation, the suppliers in the dominant position can result in decreasing the
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margins of the company it can earn in the market. In context to organisation in order to tackle the
bargaining power of the suppliers it helps in building efficient supply chain with multiple
suppliers and developing dedicated suppliers.
Bargaining Power of Buyers: In context to organisations, the buyers are highly demanding and
want to buy the best offerings which are available at affordable prices which further results in
putting up pressure on the profitability in the longer run. It is very important for organisation to
make the customer base much stronger and offering heavy offers and discounts. In context to
organisation, the company can tackle the bargaining power of buyers with the help of building a
large base of customers and reducing the bargaining power of the buyers and providing an
opportunity for the purpose to streamline the production and sales process.
Threat of Substitute products or services: In context to service or product it is very important to
meet the needs of the customers in different ways that suffers in the industry profitability suffers.
In context to tackling the threat of the services or product, it is very important for increasing the
switching cost for the customers, being service oriented and understanding the core need of the
consumers.
Rivalry among the existing competitors: In context to organisation, the rivalry among the
existing player in an industry is highly intense and results in decreasing the profitability of the
industry. In context to Hayward Tyler, the company operates in a very competitive services or
goods industry. In context to organisation, the company can deal with the rivalry through
building scale and a sustainable differentiation and also enhancing collaborating with the
competitors for the purpose to increase the market size. With analysing all the five competitive
forces, it helps in gaining a clear image of the impacts of the profitability of the company that
helps in identifying the game changing trends and responding towards the emerging opportunity
and understanding the model and helping managers in shaping those factors in their favour.
Pestle Analysis: It is basically a strategic tool that helps in analysing the macro environment of
the company. The framework basically stands for the Political, economic, social, technological,
environmental and legal factors that create a major impact the macro environment of the
company. The change that happens in the macro environment factors have a major influence on
the organisation but also impacts other players in the industry service and goods. The macro
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environment factors basically impacts the porter five forces that helps in shaping the competitive
landscape.
Political Factors: In context to political factors it helps in playing an important role in
determining the factors that has a major influence on the long term profitability in a particular
market or country. The various political factors involves trade regulations, level of corruption,
risk of military invasion, intellectual property protection and various other factors.
Economic Factors: It basically involves various factors such as interest rate, inflation rate,
economic cycle, savings rate and economic cycle for the purpose to aggregate investment and
demand in an economy. Various factors such inflation and competition norms create a major
influence on the competitive advantage of the organisation.
Social Factors: In context to organisation, the way of doing things and culture of the society
creates a major impact on the environment of the organisation which involves population level,
demographics, attitudes and various other factors.
Technology Factors: It basically involves the concept of technology which is fast disrupting and
creates a major influence on the organisation. It involves factors such as rate of technological
diffusion, recent technological developments and technology impact on the product offering.
Environmental Factors: Each market have different standards and different norms that creates a
major impact on profits of the company. The various factors involves attitudes, climate change,
laws, recycling and various other factors.
Legal Factors: In number of countries, the legal framework and institutions are not robust enough
to protect the intellectual property rights of an organization. The various legal factors involves
data protection, employment law, health and safety law.
Entry modes
The international entry of Hayward Tyler will require careful consideration as its decision
can have a profound effect on company’s overall outcomes in the foreign market (Ryan and et.
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al., 2021). There are a few ways to enter the international market that can be used by Hayward
Tayler which are as follows:
 Exporting: Export refers to direct selling of products services abroad of a nation. It is
probably the most well-known way to enter the foreign market, with very low risk. It can be
less expensive as Hayward Tyler would not require investing in manufacturing facilities for
its preferred country - all goods are still produced in the same country and exported for sale.
However, rising shipping prices merely raise containeering costs in the near future. Most of
the costs involved in exporting come from marketing costs. Generally, Hayward Tyler needs
involvement of four parties: the transporters, foreign buyer, its business and the authority
permission of the government of a location where it wish to export.
 Licensing: Licensing mainly helps another company in moving to the foreign place to use
the existing location of the company. The things in acquisition are usually intangible –such
as copyrights, trademarks and patents. The licensee will pay a fee to qualify for the use of
the property. Licensing needs less investment and generates high return on total investment
of Hayward Tyler. The licensee can also handle any production and sales expenses in the
markets internationally.
 Franchising: Franchising is not the same as licensing activity, which involves rights
regarding intellectual property to the business owner. However, the rules for how Hayward
Tyler will do the business are also complex - for example, certain elements must be applied
to production and process etc.
 Joint venture: It involves two organisations amalgamating to create a joint venture. One
owner or partner will be from the local country and another will be foreign location. There
are a few benefits to this type of business. It can allow Hayward Tyler to access external
market information and allow it to reduce expenses by sharing it. However, some challenges
that may be faced by Hayward Tyler such as who invests and how the profits can be divided
among the partnering companies.
 Direct foreign investment: FDI is where company can do investment directly into the
international markets. It costs a lot of money to pay for expenses such as buildings,
technology and staff.
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 Fully owned company: A fully owned company is almost identical to foreign investing in
another company, with a foreign business is bought or purchased in full settlement. Then it
is up to the owners of Hayward Tyler to continue operating as before or take additional
control of the fully owned company (Byram, 2019).
 Piggybacking: Piggybacking brings together different non-competitive organisations,
businesses or firms that work coexisting to trade in the products or services of others in their
home country. Although it is a low challenge process that requires less money, some
companies may not prefer to establish their partnership with some other company.
Hayward Tyler does have deep roots in the company's five values that are customer focus,
accountability, people, beauty and citizenship. This is evident throughout the rest of their work
series, from acquisition of materials until the order fulfilment. The company can utilise these five
values to expand its business in the international market. These are as follows:
 CUSTOMER: Skip Expectations - The Company offered value that can be displayed to
customers, externally and internally. Hayward Tyler safety behaviour has also attracted
customers and the customer is focused on everything the company supplies. The company
listen to its customers and improve its products and services to meet expectations, and
measure the success of our efforts by accurately defining customer needs and satisfying their
needs.
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 RESPONSIBILITY: Bring in all commitment - Hayward Tyler achieves agreements with
clear and concise goals, and they are accountable for their actions and results. The company
meet requirements on time, at all times, and they do not accept deviations to distract from its
goals and expectations unless agreed upon in advance. If a commitment cannot be met,
Hayward Tyler seeks an acceptable solution as soon as they hear of the situation. They make
no excuses or and provide true information what has helped the company to expand its
business. PEOPLE: Treat Everyone with Care and Respect - Hayward Tyler care about the well-
being of others, and in the organization always treats its employees with dignity. Also, it
promotes and values the diversity among their employees and the many cultures across the
multiple nation with whom they do business, and regard the diversity as a fundamental
force. THE BEST: Be the Best - The Hayward Tyler compares itself to opportunity, not
competition. They compete with time, previous performance, and industry competitors to
continue to achieve the best results (Liu, 2022). The company is not downgraded or
overwhelmed by past achievements but it tries to achieve experience and excellence in
future. CITIZEN: Do the Right Thing - The Company does what it enjoys today and tomorrow.
All its business transactions are done in a fair, straightforward, and honest manner. Hayward
Tyler is careful and efficient in the use of raw resources, both financial and human, and
manages the environment responsibly by maintaining sustainable work culture.
CONCLUSION
From the above report it has been concluded that internal business plays a very important
role in the organisation. In this report, it involves the initial strategy and links it to model. In
context to Country Selection, it involves the scanning model of a country selection and look at 3
countries and further recommendations. It further involves the political risks that involve ethics,
culture, corruption and legal systems. In addition to that it involves various frameworks porter
five forces and pestle analysis. It involves the various entry modes that help in better
understanding them.
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REFERENCES
Books and Journals
Aguilera, R.V. and Grøgaard, B., 2019. The dubious role of institutions in international business:
A road forward. Journal of International Business Studies, 50(1), pp.20-35.
Bell, V. A. and Cooper, S. Y., 2018. Institutional knowledge: Acquisition, assimilation and
exploitation in internationalisation. International Marketing Review.
Buckley, P.J., Enderwick, P. and Cross, A.R. eds., 2018. International business. Oxford
University Press.
Byram, M., 2019. An internationalist perspective on internationalisation. In Educational
Approaches to Internationalization through Intercultural Dialogue (pp. 15-26).
Routledge.
Cherunilam, F., 2020. International business. PHI Learning Pvt. Ltd..
Chi, T., Li, J., Trigeorgis, L.G. and Tsekrekos, A.E., 2019. Real options theory in international
business. Journal of International Business Studies, 50(4), pp.525-553.
Frasquet, M. and et. al., 2018. Integrating embeddedness with dynamic capabilities in the
internationalisation of fashion retailers. International Business Review, 27(4). pp.904-
914.
Liu, J. M., 2022. Diasporic placemaking: the internationalisation of a migrant hometown in post-
socialist China. Journal of Ethnic and Migration Studies, 48(1). pp.209-227.
Ryan, D and et. al., 2021. Communities of practice as a solution for the implementation gap in
internationalisation of the curriculum. Higher Education Research & Development. pp.1-
16.
Schubert, T. and et. al., 2018. Firm capabilities, technological dynamism and the
internationalisation of innovation: A behavioural approach. Journal of International
Business Studies, 49(1)..pp.70-95.
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