International Business Development: Opportunities and Threats for House of Dorchester

INTERNATIONAL
BUSINESS DEVELOPMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
1. Global business environment and threats and opportunities of company by using PESTLE.3
2. Case for company for expanding its business in foreign market............................................4
3. Trade blocs and Tariff and non-tariff barriers.........................................................................6
4. Advise the house of Dorchester to determine whether it is beneficial to import or export
merchandise and/or services.......................................................................................................7
5. Compare and contrast the available modes of expansion for the house of Dorchester...........8
6. Explain the process of the company’s expansion i.e. house of Dorchester to export to the
foreign market...........................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
International business development is the process that uses to evolve through the normal
processes of having the trade, foreign direct investment, capital flows and the advancement of
the technology in the under developed countries. The current project is based on the House of
Dorchester that is the premium chocolatier which uses to produce the wide range of high quality
of chocolates. The reports will outline the opportunities and threats of the business by using the
PESTLE analysis. Further it will outline the tariff and non- a tariff barrier that exits in the
internal trading and it will also analyse the trading blocs and agreements. This project will
outline the advantages and disadvantages of importing and exporting and the differences between
the merchandise and service imports and exports. At last this report will outline the various
methods in which the small-medium enterprise can tap into the international markets and it will
compare and contrast various ways with its pros and cons.
1. Global business environment and threats and opportunities of company by using PESTLE
The global business environment refers to the environment which uses to define the
environment of the different sovereign countries by stating the different other factors. The
company after identifying the other factors can operate in the global business (Thomas and et.al.,
2021). The company must focus on the various factors like geographic location, politics,
technology and thee economic status of the countries where the organization has to do business.
PESTLE analysis is basically the tool that used to describe the external factors affecting
the company and its effects on the profitability of the company (Nandonde, 2019). The
opportunities and threats by using the PESTLE analysis of the company are as follows:
Political factors: The political factors may have an impact on the survival and
profitability of the company. The political risk varies from the nation to nation. In case of doing
the international business the political factors may affect the company in order to earn the good
profits. The increase in the corruption and many laws that the country enforces affected the
company. This factor may be threat for the company as the political factors used to change from
nation to nation and affect the profitability of the company.
Economic factors: The economic factors include the factors such as inflation, interest
rates, growth rates, gross domestic product and the current economic situation of the company
(Gupta, Gupta and Gupta, 2019). These factors use to have an impact on the aggregate demand

and aggregate investment of the business. The economic situation of the country such as increase
in the inflation and interest rates will be threat for the company in order to trade globally. The
organization has not control over these factors as these factors affect the overall economy as a
whole.
Social factors: The social factors used to have impact on the reflection of the society that
includes the culture, beliefs, attitudes, and values of the country. The increase in the population
also includes in the social factors as society is always related with the community population.
The company may get affected by the differences in the background of the people as different
people have their different views. But there is an opportunity for the company that the increase in
the population will increase the demand of their chocolates in the global market.
Technological factors: Technology used to change on the rapid basis and increases the
competition in the market. It is very important for the company to adopt the new technology in
order to do fast production to trade in the global market. The impact of the technology will
improve the profitability of the business and make the organization successful. This is the
opportunity for the company to adopt the new and innovative technology and increase its
profitability.
Legal factors: The legal factor includes the policies and laws of the government that used
to affect the economy as a whole. In today’s world the policies are not enough to control and
protect the workers; the government has to take legal action against company if they are
following the laws. The organization should not discriminate their workers on the basis of
gender, caste and wages. If company used to do this there will be a threat for the company in
order to survive in market.
Environmental factors: Different companies used to hold the different standards of
environmental protection in order to survive in the global market (Tumaku and Ren, 2020). This
factor makes the company know that they must protect the environment by manufacturing their
products and services. The change in the weather conditions may affect the transportation of the
company and will be threat for the company to earn profits.
2. Case for company for expanding its business in foreign market
The house of Dorchester is used to expand its business in the foreign market and the
company used to decide in order to expand its business in India. The organization can also check
the external environment of the country where it is expanding its business by using the porter’s