International Business: Analysis, Recommendations, and Implementation Approach

This report discusses international business, including an overview of a chosen organization, rationale for going international, recommended country for expansion, barriers to expansion, and implementation approach for internationalization.

INTERNATIONAL
BUSINESS
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Table of Contents
Executive summary .........................................................................................................................3
Introduction......................................................................................................................................4
Analysis and discussion...................................................................................................................4
Brief overview of the chosen organisation and the rationale for going international. ...............4
Discuss which country you would recommend them to enter and the rationale behind the
decision. ....................................................................................................................................5
Barriers that will be faced as the organisation expands internationally......................................6
Critically evaluate a relevant implementation approach for the internationalisation process for
the specified target market..........................................................................................................8
Conclusion.......................................................................................................................................9
Reference ......................................................................................................................................10
Books and journals ...................................................................................................................10
Online........................................................................................................................................10
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Executive summary
In a below report, there is a discussion of international business. Organisation do
international business to enhance their customer’s base and attract foreign customers. This will
helps them in increasing profitability as well. This report includes introduction of selected
organisation which wants to expand. Then it includes rationale of expanding in another country.
Further it includes recommendation in which company wants to expand and why. Then it
includes barriers comes in between and implementation approach within a targeted country.
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Introduction
International business is known as the trading of the product service services with the help of
investment and technology around the boundaries of the nation’s or at the international level.
This is also understood that the global business is also refers to the globalization or the
internationalization. At the time of scaling any type of commercial business there can be specific
elements that are need to be understood by the leaders of the organization in order to make the
company most successful and sustainable. In addition to it there are several issues and barriers
which are faced by the business at the time of scaling up of the operations of the organization in
market of any other nation around the world. The following report is based on rollinson knitwear
(Guercini, and Milanesi, 2020). The organization desires to established in the market of the
Sweden in order to increase the level of their consumer base for the long period of time.
Moreover to this the company was founded in the year 1935. Also the following report will
cover about the rationale of moving the business operation internationally as well as problems or
challenges which can occur in the time of expansion of the business operation in the market area.
It will also cover about the execution method for the process of globalization of the target market
of the organization.
Analysis and discussion
Brief overview of the chosen organisation and the rationale for going international.
The respective organization is one of the largest supplier of the United Kingdom of
corporate wear as well as of school wear. The company was introduced in the year 1935 and the
organization is one of the highest ranking and also it was certified by B Corporation. In addition
to it the company is grand in the 14th position in the global sector of the clothing industry. The
respective organization is leading supplier of the United Kingdom of the school knitwear and it
also known as one of the major companies that are dealing in the clothes of school and corporate.
Also the organization is also offering top quality products of school wear to their several
consumers. It will also assist them in enhancing there goodwill which will lead to their
enhancement in the consumer base for the long period of time (Aguilera, and Grøgaard, 2019).
The business firm is basically concentrating on motivating the other people as well as sharing the
concept and ideas in order to gain more and more profitability within the current market of the
company.
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So the main rationale of moving towards international boundaries in order to paint the operations
of the businesses globally to enhance the sales revenue of the organization, getting the edge over
their competitors, major access to the skilled and talents, it is effective as well as efficient and
many more. There are several specific reasons in order to scale the business operation
internationally are described below in brief.
 Increasing revenue capital - As tapping into international market management can be
more careful to increase their sales revenue as at the time business can also attain more
opportunities of growth in it then it is very relevant to the organization in order to expand
their business operation another part of world (Buckley, Enderwick, and Cross, 2018). In
context to the respective organization global scaling above the operations provides them
to accomplish new consumer ways with the new market area and also To obtain enhance
level of sales revenue from their products as well as services.
 New customer base: It is another reason of organization is to scale globally is enhancing
there level of consumer base. Company basically does not only sell their existing services
as well as goods to their new consumers but they also focus on investing in launching of
the new services as well as goods in order to increase the brand awareness among the
consumer which will lead to wider base of the customers and enhanced level of the sales
in the market area.
 Gaining competitive advantage: Scaling up the business operation in global market area
permits the company in order to get more saturated market area. Internationalization
assist in attaining new consumer based from the international market share as the
competitors of the company cannot reach to them conveniently and effectively. In case of
the respective organization management desires to do this in order to have the edge over
their competitors by scaling the operations in the new country (Cherunilam, 2020).
 Cost saving: It is another reason of scaling the operations in the different country by the
business. Through this organization will be more capable to reduce the level of their cost
and also assist in saving the capital as much as they can. Several of the organization are
taking this benefit through scaling the operations in that another nation in accordance to
minimise their production as well as other cost of operation respectively.
From above mentioned elements the main reason of scaling the operations of the respective
organization in the another country is that it will assist them in saving their expenses,
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constructing more appropriate image of the brand, increasing the level of the consumer base and
many more. The expansion of this operations in the other country can also be helpful for the
organization in increasing the level of sales revenue which will lead to the higher profitability of
the company
Discuss which country you would recommend them to enter and the rationale behind the
decision.
In order to expand in the another country it is recommended to the respective
organization that they can scale their business operation in the market of Sweden because by
spending their it can increase the level of their consumer base as well as enhance the sales
revenue which will lead to the higher profitability of the company (Buckley, 2019). Sweden is
known to be the world class nation with having more spending power of the consumers. The
standard of living of the people there is peaceful as well as fair. In addition to it the Sweden is
known to be one of the best nation in order to scale the operations of the business in the most
efficient as well as effective way. This also attains more optimistic results in association with any
type of the commercial business. In relation to the respective organization management are
planning to scale the business operation in Sweden. As the government of the Sweden is very
much stable as well as supportive if any of the business need to scale the working in their market
area then government make sure that they are not having any issue in doing that. Per capita
income of the Sweden is considered to be one of the highest in the globe but they are taxes are
also high as well. The nation is basically dependent on the global free trade in order to manage
their standard of living appropriately. The population of the Sweden is around 9,000,000. So it is
beneficial for the organization in order to expand their company in the market of Sweden in
order to attain large number of the consumer ways towards their company.
This is also recommended to the organization in order to expand in the country Sweden because
the nation is having several strength like they are possessing highly skilled as well as talented
workers, they also have upgraded as well as latest technology with the massive capital in the
department of research and development (Hamilton, and Webster, 2018). The local currency of
the Sweden is Swedish krona. In addition to it the state in which the respective organization can
scale their operation and manufacturing is Stockholm as this is known to be the capital of the
country that is one of the largest in the nation. Whereas there are several competitors in the
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market of the Sweden from which the organization need to compete and attain edge over them .
Basically the organization focused in dealing the school where so they can also find specific
number of the individual that are ready to buy the product for their own children. Also the
organization is also offering top quality goods of clothes and services as well so that they can
increase their goodwill in the market of Sweden which will lead to enhancement in the base of
consumer.
Sweden have several number of talented workers that can supply and gave one of the best
productivity and performance in accomplishment of the goals as well as objective of the
respective organization (Dörrenbächer, and Gammelgaard, 2019). In this the company can also
be more capable to recruit the workers locally who that are more skilled and talented that assist
them when having more appropriately relationship with the consumers and they also can know
there preferences and the taste in the market. It will give the outcome and accomplishing some of
the innovative strategies as well as contained in order to make the more suitable opportunities of
the growth in the market of Sweden. The nation have several manufacturing as well as
production strategies that assist the company in producing the new product as well as selling it to
the customers. Hence if the respective company is scaling the operations inside and then they can
also take more benefits of the New market area as it will lead to their enhanced profitability as
well as consumer base.
Barriers that will be faced as the organisation expands internationally.
At the time when the company is scaling the business in the global market then they
encountered several problems as well as issues. If the organization is spending internationally as
well as selling their goods and services globally the management needs to encounter several
problems that can influence the working and profitability. As all the nations has their own laws
as well as regulations which are imposed by the government, also the nation have different
language and culture, rate of nucleation and many more which can be sometime become very
problematic for the company in order to grow and attain more success opportunity in the market
area of different nation. Few of the problems as well as challenges that can be faced by the
respective organization are described below in brief (Kolk, Rivera-Santos, M. and Rufín, 2018).
 Language barrier: This is considered as one of the largest and the biggest issue that can
be encountered by the company at the time of scaling the operations in the new market
area. As at the time of launching the operations of the business internationally this is one
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of the most crucial element in order to concentrate on differences of languages in the new
country. And at the time when the leaders or managers and other employees of the
organization are not able to speak in the local language of the new market area than it can
give the outcome and dissatisfaction among the consumer base of the company which
will lead to low goodwill. So this will act as the main barrier and issue for the
organization at the time of expression expansion which they need to overcome.
 Cultural differences : As all the companies is possessing their own languages and they
are also having different beliefs and cultures (Collinson, and et.al., 2020). This is
becoming very essential for the companies in order to develop in accordance to the need
of the local people, their culture as well as their values of the new market area of different
nation. In addition to it organization can only attend the success opportunity in the new
market area by adapting the culture of the local people. So this is very crucial for the
company in order to learn regarding the culture of the different nation in which the
organization desires to expand their operations. As at the time of maintaining the teams
as well as selling the products and services of the company to the local citizens it is very
crucial to attain their culture as well (Saarenpää, 2018).
 Nuances of foreign politics and relations : This is also known to be a very crucial
problem which are encountered by the company in which they want to scale their
operation. In context to the respective organization management have to follow all the
policies as well as laws which are made by the government of Sweden. If the
management cannot be able to follow then it will give the outcome in beginning the main
problem and the legal authorities can be more capable to restrict the operations of the
business in their nation. Additional in the market of the Sweden there is hi tax reads
individually that can be faced by the respective organization as the problem at the time of
selection as well as process of recruitment (Wulff, and Villadsen, 2020).
Critically evaluate a relevant implementation approach for the internationalisation process for the
specified target market.
There can be several execution methods that can be utilised at the time of pending the
operation in the global market area. There are several elements that are influencing the operation
of the business at the time of scaling. These approaches need to be implemented by the managers
are the leaders of the organization and in addition to it few of the methods in which the
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respective organization gang scale their operations in the market area of Sweden are described
below.
 Making direct investments : If the organization requires to scale their operation then
the management are more focusing on the global market as the direct investment in order
to fix their operations in that country. In addition to it direct investment is known as the
conducting the operations of the business in the different country or the different market
area (Gomez-Trujillo, and Gonzalez-Perez, 2020). This gives the outcome in appropriate
location of the organizations goods as well as services and its major monitoring on the
intellectual property of the company. This also assist in monitoring the practices of
marketing as well as efforts on sale by the company. So in this method of globalization
approach a company must have to focus on their additional stakeholders and put more
efforts on the techniques of marketing in order to mitigate there any type of rejection by
the global organizations.
 Reverse internationalisation: This is supporting the global organization in order to tap
into the market area anyway they are existing. This can involves the several multiple
exploitable elements. Rational is the test of the solution with the consumers they possess
exist and it assist in understanding regarding the intellectual property (Prud’homme,
2019). It will also assist in focusing on deciding if there can be something basically
similarly and locally.
In relation to the respective organization management are scaling the operations of
business in the market of Sweden and the Sweden market is known to be well enough very good
for expansion of the businesses and doing their operations there. From the above method
management is focused in utilizing the direct investment in its operations as this refers to
conduct the activities of the business in another nation (Zhao, Zhang, and Kwon, 2018. This will
assist the organization in increasing the consumer base which will lead to their enhanced sales
value and profitability. One of the major benefits of implementing the direct investment in the
operations of the businesses that company is having the localization of their full product in the
market of the Sweden. This also assist in retaining as well as monitoring the intellectual property
of the company.
Moreover to this there are specific drawbacks or the disadvantage of the foreign direct
investment is that it involves risk of high investment. As there can be enhanced level of expense
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in comparison to the rivals as being the foreigner of the company. Respective organization
immersed utilise it as well as their leaders need to concentrate on the challenges as well as issues
at the time of scaling the operations of the business and selling the product as well as services in
the new market area. It will assist them in attaining more consumer base as well as sales revenue
which will lead to enhanced goodwill in the market (Rialp, and et.al., 2019).
Conclusion
From the above report it can be concluded that global business is one of the most crucial
for the commercial business in order to increase the consumer ways which will lead to the
profitability of the company. The respective company is conducting the operations of the
business globally in order to increase the consumer base and it will enhance their profitability. In
addition to it through scaling the operations of business in the new market area which is Sweden
management will be more capable to increase the chances of their growth as well as success as a
whole which is beneficial for their long term sustainability. In order to do this management need
to eliminate several challenges and issues which are encountered by them at the time of scaling
of the business in the new market area effectively and efficiently.
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Reference
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.
Buckley, P., 2019. International business in a VUCA world: The changing role of states and
firms. Emerald Group Publishing.
Buckley, P.J., Enderwick, P. and Cross, A.R. eds., 2018. International business. Oxford
University Press.
Cherunilam, F., 2020. International business. PHI Learning Pvt. Ltd..
Collinson, S., and et.al., 2020. International business. Pearson UK.
Dörrenbächer, C. and Gammelgaard, J., 2019. Critical and mainstream international business
research: making critical IB an integral part of a societally engaged international
business discipline. critical perspectives on international business.
Gomez-Trujillo, A.M. and Gonzalez-Perez, M.A., 2020. What do we know about organizational
sustainability and international business?. Management of Environmental Quality: An
International Journal.
Guercini, S. and Milanesi, M., 2020. Heuristics in international business: a systematic literature
review and directions for future research. Journal of International Management, 26(4),
p.100782.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Kolk, A., Rivera-Santos, M. and Rufín, C., 2018. Multinationals, international business, and
poverty: A cross-disciplinary research overview and conceptual framework. Journal of
International Business Policy, 1(1), pp.92-115.
Prud’homme, D., 2019. Re-conceptualizing intellectual property regimes in international
business research: Foreign-friendliness paradoxes facing MNCs in China. Journal of
World Business, 54(4), pp.399-419.
Rialp, A., and et.al., 2019. Twenty-five years (1992–2016) of the international business review: a
bibliometric overview. International Business Review, 28(6), p.101587.
Saarenpää, K., 2018. Stretching the borders: how international business travel affects the work–
family balance. Community, Work & Family, 21(1), pp.1-16.
Wulff, J.N. and Villadsen, A.R., 2020. Keeping it within bounds: Regression analysis of
proportions in international business. Journal of International Business Studies, 51(2),
pp.244-262.
Zhao, H., Zhang, F. and Kwon, J., 2018. Corporate social responsibility research in international
business journals: An author co-citation analysis. International Business Review, 27(2),
pp.389-400.
(Guercini, and Milanesi, 2020)
(Aguilera, and Grøgaard, 2019)
(Buckley, Enderwick, and Cross, 2018)
(Cherunilam, 2020)
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(Buckley, 2019)
(Hamilton, and Webster, 2018)
(Dörrenbächer, and Gammelgaard, 2019)
(Kolk, Rivera-Santos, M. and Rufín, 2018)
(Collinson, and et.al., 2020)
(Wulff, and Villadsen, 2020)
(Gomez-Trujillo, and Gonzalez-Perez, 2020)
(Zhao, Zhang, and Kwon, 2018)
(Rialp, and et.al., 2019)
(Prud’homme, 2019)
(Saarenpää, 2018)
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