International Business Solution 2022

Running Head: INTERNATIONAL BUSINESS
INTERNATIONAL BUSINESS
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1INTERNATIONAL BUSINESS
Answer 1
There are four important steps that the management must follow in order to bring efficacy
to establish a successful export strategy. According to the research of Broocks and Van
Biesebroeck (2017) it can be stated that the first steps towards establishing a successful export
strategy is to evaluate the market potential. In other words, the market analysis is very essential
for a business organisation before facilitating the export strategy. In most of the cases the
business enterprises at first analyses the market environment and then decides the market entry
strategy because the entry strategy is always depended on the situation and risk in the new
market (Hollender, Zapkau & Schwens, 2017). For instance, if a coffee brewing company is
interested in entering into the Australian market then it will be important to understand the
market trend. The coffee market of Australia is highly customer oriented and has its own features
that is completely different from the international market. The market threat is also at high risk.
Based on this understanding, the respective company must choose the right decision of market
entry.
Apart from that it is also pertinent for a business organisation to evaluate the market entry
constraints before establishing a successful export entry strategy. It is important to note that the
role of the market entry constraints will help the organisation to figure out the risks and the
advantages of choosing the right entry mode (Crowley & Song, 2018). If it is an export strategy
then the company must adhere to the government regulations and duty charges. In fact, it will
increase the product price as well. Therefore, the company must understand the consequences of
successful exporting and also the knowledge of regulations and duty charges before going to
export products.

2INTERNATIONAL BUSINESS
Utilisation of effective marketing practice is also identified as a crucial task for the
business companies before exporting the product. According to the research of Bugamelli,
Linarello and Serafini (2019) effective marketing practice generates a strong brand value and
presence in the competitive market. It initiates a connection with the customers and get them
attracted. Therefore, implementing better marketing practice before exporting the product has a
pivotal role to play. Furthermore, Broocks & Van Biesebroeck (2017) advocated that the role of
effective marketing is also associated with providing enough information regarding the trend and
demand of the customers. As a result of that the organisation can set its target market based on
the responses over the marketing practice and shape the product in the same manner as the
customers are expected.
The final part in establishing a successful export strategy is to plan an effective
distribution network so that it can provide strategic advantage in the competitive market. From
the research of Crowley, Meng and Song (2018) it can be derived the supply and distribution are
integral part of the export strategy of an organisation. It requires proper negotiation with the
suppliers and distributors once the product will be exported. The success of exporting also
depends on its market capitalisation and the distributors are responsible to create better
environment for the organisation. Henceforth, it is crucial for the organisation to gain success in
exporting by establishing good relationship with the distributors.
Answer 2
The foreign direct investment mode of entry strategy is very advantageous and effective
for the multinational business companies. One of the main reason is the organisational
performance. In the directly owned business, the multinational companies are able to control the