Consideration of capabilities required to internationalise and trade off that may emerge while considering different modes of entry

Individual Assessment
IB9S10 International
Business

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Consideration of capabilities required to internationalise and trade off that may emerge while
considering different modes of entry......................................................................................1
Conclusion.......................................................................................................................................5
REFERENCES................................................................................................................................8

INTRODUCTION
International business can be defined as trade and conducting business activities of services,
technology, goods and capital across national borders (Hamilton and Webster, 2018). It is being
mainly done by companies who want to expand their business and have financial stability. This
present study is based on Sainsbury’s which is the largest chain of supermarkets and wants to
enter in new country for business expansion and for that it has selected China and US as it
mainly serves in the UK and for being in the competition it takes help of CAGE for comparing
countries.
This study is going to show importance of analysing and comparing countries by making use
of CAGE framework for selecting the best one for expansion of business. Different countries
have different ways of performance, cultural, administration, geographical and economic
distances which can affect performance of the company. So, by making use of CAGE framework
company make differences countries and also select the best mode of market entry among all like
direct exporting, licensing, franchising and others. Further, it will also show advantages and
disadvantages of each market entry mode and by making suitability of each mode with country
in which company wants to enter; the best decision is being taken which help them out in
successful business expansion and development.
MAIN BODY
Consideration of capabilities required to internationalise and trade off that may emerge while
considering different modes of entry
Internationalization refers a process of making something international and in the context of
business term it can be said that a procedure by which companies expand their business in
different countries by trading their products, services, technologies and knowledge across
national borders is known as internationalization (De Wit, 2017). This process starts with
planning in which company decide market entry mode via which it can enter in the selected
country. Country selection is also one of the main task for which company required detailed
analysis on some basis like economic, cultural, administration and economic distances and
differences on these basis can be done by CAGE framework. So, it can be said that analysing of
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