International Business Development .

Unit 43
Tapping into New and International Markets
International Business Development
Student Name-
Student ID-
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Table of Contents
Introduction......................................................................................................................................4
Business Overview..........................................................................................................................5
Explanation of the global business environment in which small and entrepreneurial businesses
operate:........................................................................................................................................5
Analyzing the threats and opportunities that face SMEs in an increasingly competitive global
environment.................................................................................................................................7
Providing the evidence-based analysis of the global business environment in which small and
entrepreneurial businesses operate using specific examples.......................................................8
The analysis of The House of Dorchester’s business expansion in the European Market by
using the “Porter’s Diamond Model”........................................................................................10
Determining and analyzing the advantages of international trading blocs and agreements......11
Explanation of the various tariff and non-tariff barriers that exist in the international trading
environment...............................................................................................................................14
Evaluation of the advantages of international trading blocs and agreements and their
implications for SMEs...............................................................................................................15
Determining the advantages and disadvantages of importing and exporting and how to secure
a deal..........................................................................................................................................16
Explanation of the differences between merchandise and service imports and exports............18
Evaluation of the methods in which SMEs can tap into international markets.........................20
Comparison of various ways by which SMEs can tap into international markets, assessing the
pros and cons of each method....................................................................................................21
Justifying recommendations with consideration and evaluation of the implementation of
methods......................................................................................................................................22
Conclusion.....................................................................................................................................23
References......................................................................................................................................24
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Introduction
This is the age of globalization and every sector, as well as businesses, are running from home to
abroad across the borders. By adopting the concept of globalization, businesses are expanding
much more in the international market. In this report, the globalization effect and the
international business environment for SME business will be described. Here a medium business
firm The House of Dorchester’s business operation and expansion in the international market
will be analyzed. Firstly, the report will describe the threat and opportunities of the firm as well
as the advantages of international trading. It will evaluate the effective plans and processes.
Finally, the report will demonstrate the evaluation process of the international market by “The
House of Dorchester”. The overall report will help to understand the international business
environment and policies for an SME firm.
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Business Overview
“The House of Dorchester” is a prominent chocolate company in the UK that started its business
around fifty years ago. Which offers a wide range of premium chocolate items, sweets, and
different luxurious gift items to its customers. The uniqueness of the company is they provide a
wide range of hand-making traditional British chocolates and they manufacture innovative and
diverse products which easily bring a smile to the customer’s face. After starting its journey, it
has become a leader in its sector. It has a large market share in the UK with its large operational
channel (Taylor, 2017). Besides the domestic market, it’s going to enter into the global business
environment and adopt various strategies to sustain itself in the global market at present. The
business of “The House of Dorchester” is getting expanded rapidly with the demand and
satisfaction of the customers. The global operations and strategies of the company are going to
be illustrated in this report.
Explanation of the global business environment in which small and entrepreneurial
businesses operate:
Global Business Environment: The international business environment consists of some
factors. Such as communication media, marketing channels, political issues, supports of the
technology, demographical characteristics, existing market, etc. (Muhammad et al., 2016).
Before entering the market “The House of Dorchester” must need to analyze those factors
individually and choose the best plan for them. They have to communicate with the market and
create a positive vibe at the time of entering. Each of the elements of the market can bring a
massive change either positive or negative to further operations.
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Figure-01: Global Business Environment (Muhammad et al., 2016)
“The House of Dorchester” needs to implement some strategies to operate its business in the
international market -
Adopting an effective Business Plan: A plan is a prerequisite and very vital before
commencing any operation or process. The plan must be created according to the firm’s
necessity and ability (Cuervo‐Cazurra, 2017). The House of Dorchester needs to create a precise
and dynamic plan for global operations like the domestic one.
Targeted Market analysis: During making the planning process, a firm should analyze the
targeted market where it wants to enter. The management has to collect various data and
scenarios of the market (Schmidheiny et al., 2019). They need to know the consumer’s
behaviors, necessities, and demands. The market offerings, overall economic scenario, and
competitiveness also should be considered during the analysis.
Targeting the Consumers: Every business tries to serve its customer as much as it can.
Because the customer is the heart of a business. Final products are served to the customers and
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