Implication of Direct Export Strategy PDF

RESEARCH PROJECT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
P1 Producing research proposal defining research questions supported by literature review....1
P2 Examining appropriate research methods and conducting primary and secondary research 7
P3 Conducting primary and secondary research considering costs, access and ethical issues...8
P4 Applying analytical tools for findings of research.................................................................8
P5 Communicating outcomes to audience..................................................................................9
P6 Reflecting on effectiveness of research methods applied in the business...........................17
P7 Alternative research methodologies.....................................................................................17
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19

INTRODUCTION
Present report is on research project and the topic chosen for this project is the impact of
implication of direct Export strategy in Kenya on Burberry PLC engaged in fashion industry. As
business is establishing its international step for first time on other methods can do best other
than a research project. This strategy is chosen with complete integration of the knowledge in
research process. An analysis is conducted in relevant industry to reach a significant outcome.
Under research methodology data collection, approach, type, design, philosophy, sampling
technique of research are discussed in detail. After completion of research projects its outcomes
and findings are communicated to stakeholders which might get effected by this project.
P1 Producing research proposal defining research questions supported by literature review
Background
Globalisation has led path for economies to be interdependent with regards to goods and
services. It has become favourable to mankind in getting products and services which are not
available in their own country (Mommen and Jilberto, 2017). Large inflows and outflows of
items takes place having wide variety of goods being offered to people leading to satisfaction
level as they can purchase from pool of commodities. Integration of developed and developing
economies of world have provided all the relevant outcomes by which multinational firms
operating on large scale can effectively export goods for increasing and expanding their
operations quite effectually.
Direct exporting market strategy has become useful for organisations to export directly to
potential and new customers for purchasing the same (Burnett, 2017). This leads to avoiding all
middleman costs or third party distributors having more profits in the best way possible. The
present aim of research project is to examine the impact of direct exporting entry strategy of
Burberry PLC in Kenya, country in East Africa for maximising operational activities. Burberry
PLC is a globally sound organisation engaged in fashion industry making entry to emerging
market which is Kenya so that customer base can be increased. This will help company to attain
more profits and enhance its overall position in the new market. It will be fruitful for firm in
accomplishing objectives in new emerging market which is achievable due to globalisation.
Aim
“To examine the impact of direct exporting entry strategy in Kenya in the context of
fashion industry- A study on Burberry PLC”.
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Objectives
 To identify factors of direct exporting strategy for benefiting impact growth of Burberry
PLC in Kenya.
 To analyse major benefits of globalisation leading to enhanced operations of Burberry
PLC in overseas market.
 To recommend on improving operations and examining direct exporting strategy for
success of Burberry PLC in Kenya.
Research Questions
Q1. What challenges Burberry PLC to expand to Kenya market for better performance?
Q2. What are the factors of direct exporting market strategy beneficial for Burberry PLC?
Q3. Do globalisation enhances overall operations of Burberry PLC?
Importance of study
Globalisation has paved the way for attaining international markets so that profitability
position can be enhanced quite effectually. It is becoming useful for firm for expanding its
customer base. Direct exporting entry market strategy is helpful for organisations in
accomplishing profits by reducing middleman costs in effective manner (Carmel, 2018). The
importance of present study will focus on Burberry PLC that how can it enter market of Kenya
with the help of direct exporting and what will be impact of such strategy on company. Market
entry strategies are required to be implemented so that company may be able to attain desired
customers in accordance to target market.
Eliminating intermediaries in a manner which will be fruitful for company in attainment
of huge quantum of profits (Delaney. 2018). Burberry PLC has implemented strategy for
attaining efficiency on global scale and will deliver combination of organic profits and strong
cash generation and fair allocation of capital. This will prosper company in accomplishing higher
growth. Moreover, greater level of control on organisation's operations and aspects of transaction
made with them. Direct exporting is global market entry strategy which will be used by Burberry
PLC to enter into Kenya so that operations can be expanded and more profits can be
accomplished. Research questions being formulated by researcher will be effectively addressed
so that objectives of research can be met and conclusion could drawn of research with aspect of
examining impact of direct exporting strategy on Burberry PLC for expanding to Kenya.
Literature Review
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Theme 1- Direct Export and Emerging Markets
As per the views of Lasserre (2017), globalisation is one of the important aspect in
movement of goods and services across borders. Trade liberalisation is based on export growth
model and has major benefits in the form of profit generation, employment creation and boosting
growth of economy. Business is able to expand in countries which help to attain overall
economic growth. In contrast to this, Blanchard and Olney (2017) says that trade liberalisation is
reverse process of protectionism being imposed by domestic country to protect industries from
global industries in fear of losing domestic share in hands of international companies. Free trade
is possible because of trade liberalisation. Moreover, direct export injects profits to firm as trade
becomes simpler and costs is minimised. The result of liberalisation and integration process is
termed as globalisation which signifies relationship between trade liberalisation and
globalisation.
Theme 2- Impact of market entry strategies on companies
According to Gözgör and Can (2017), market entry strategies on global level is important
for company in order to provide better understanding of international scenarios so that customer
base can be attained in a better way. Exporting, countertrade, licensing, joint venture are some of
entry strategies of market which helps business to attain an edge over new market ahead of its
competitors in the best way possible. Sunde (2017) says that impact of these strategies on
organisations are of much importance. This is because company implements such strategies in
order to enter into market with a view to accomplish customer's base in effective manner.
Exporting is used to enter in market by selling goods to consumers with the involvement of
intermediaries. Countertrade is another international trade which is attained by exchanging goods
which are paid with other commodities rather than with currencies. As per the views of Deng and
et.al. (2018), licensing is an agreement where licensor grants permission to licensee and in return
royalty fees is paid. Joint venture is an enterprise which is formed by two or more investors
sharing ownership and rights over control and operations. Such market entry level impacts
companies which are based on various aspects such as ownership, sharing of risks and control
over operations.
Theme 3- Direct exporting in international business
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Petras (2017) says that direct exporting is selling goods directly to customers without
third party distributors and exports can take place. This helps to eliminate middleman and direct
contact with customers can be accomplished in a better way. It is beneficial for economies which
have low profits in hand by exporting with the help of intermediaries. It helps to cut-down costs
and more income can be generated by them. It also provides protection in terms of trade marks,
copyrights and patents. Indirect exporting is major aspect of exporting goods or selling to
inventory which in turn sells to customers or wholesalers. It is a low-risk strategy often
implemented by organisation which has no knowledge about market situation and taste of
customers. Furthermore, in export process, minimal involvement is required and objectives can
be achieved. It has a greater level of exports on international basis.
Theme 4- Mergers
According to Tarba and et.al., (2017), international merger and acquisition is growing on
regular basis. Generally this entry strategy is replicated to specific merger and acquisition which
are taking beyond boundaries of specific country. However, these are also known as global or
cross border merger and acquisition. Globalisation and worldwide reforms of financial has
directly contributed for developing international acquisition and merger at substantial extent. As
these mergers and acquisition are undertaking in varietal forms such as vertical, horizontal,
congenric, conglomerate, accretive mergers and others.
According to Brueller, Carmeli and Markman (2018), these global merger and acquisition
are performed with objective of attaining some strategic advantages in markets for specific
country. By considering helps from these international merger and acquisition, various MNCs
could enjoy numerous advantages which consist of economies of scale and market dominance.
However, according to author global merger and acquisition signifies important role involved in
company's growth. It directly deals with various transaction for helping in big companies for
penetrating in innovative market and to attain economies of scale. Hence, it also stimulates
foreign direct investment or FDI.
As per views of Vuori, Vuori and Huy (2018), process of M&A is invariable consolidates
the position in organizations which are duplicated. It often signifies the probabilities of lay-off
and must place people for working an indefinite duration. Due to absence of potential is
considers as definite until the completion of this process. In the similar context, many
organizations are forced at high level of uncertainty because they don't know about happenings.
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