International Business Development: Opportunities and Threats for House of Dorchester in India

INTERNATIONAL
BUSINESS DEVELOPMENT
1

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
PESTLE analysis in India............................................................................................................3
The theory of Porter's Diamond...................................................................................................5
Tariff and non-tariff barriers within India...................................................................................6
The role of trade blocs and point out any trade blocs relevant to the international expansion of
the House of Dorchester..............................................................................................................7
Advice for House of Dorchester..................................................................................................8
Differences between good and services.............................................................................8
Modes of expansion...................................................................................................................10
Recommendation.......................................................................................................................11
The process of expanding business through exporting..............................................................11
CONCLUSION..............................................................................................................................13
References......................................................................................................................................14
2

INTRODUCTION
International business development can be explained as a specific field within the
commerce sector that helps an organization to grab new opportunities by introducing new
products and services into the new markets. The present report is based on the study of the
House of Dorchester which is a premium chocolatier that manufactures British-made chocolates
and sells them within the country. The company is headquartered in Poundbury, Dorchester,
United Kingdom. The present report aims to analyse the opportunities and threats the company is
facing in an increasingly competitive environment. It includes the presentation of tariff and non-
tariff barriers while expanding in the foreign market. The study will determine a foreign market
which is suitable for the company in order to expand its operations. The current study also aims
to identify whether it will beneficial for the company to import or export the products and
services or not. Moreover, it discusses the different modes that are available for the company in
order to expand its operations.
MAIN BODY
PESTLE analysis in India
If the company the House of Dorchester decides to expand its operations within the
market of India, there will be certain opportunities and threats for the company which needs to
assess. They are:
Political Factors
Political factors refer to the political stability of a nation and its impact on the operations
of the business. It has been identified that in India, the regulatory practices of the government are
in line with the international global norms which helps the Indian brands as well as the
international brands in providing them with the ease of doing a business. It has also been
identified that since India is a democratic country, it experiences the advantages of having
political stability within the boundaries of the nation. These aspects can be used as an
opportunity by the House of Dorchester in order to expand its business operations within the
markets of India (Brouwer, and Kohl, 2020).
Economic Factors
Currently, the Government of India is running deficit budgets. This refers to that the
because of this reason the sale of the Sugar and Confectionery industry within India is going to
rise within a short span of time and help them in increasing their profitability. Also, it has been
3

determined that the income level of the consumers have rose sufficiently as compared to the
consumers of the USA (Singh, and PADHI, 2020). This creates an opportunity for an existing
brand as well as the brands that are looking for expansion including the House of Dorchester to
gain customer engagements and increase their profitability with the help of launching market
campaigns.
Social Factors
According to a study, it has been identified that there are around 90 million health
conscious people in India which might not like having chocolates on a regular basis. This can be
a threat for the House of Dorchester as people might not prefer to buy the chocolate produced by
the brand, until and unless, they are made using low calories, or they have certain features which
could help the company in attracting the health conscious individuals towards the brand. This
can affect the sales of the House of Dorchester and lead to a decrease in the profitability of the
company.
Technological factors
A recent report with respect to the Indian market states that India is one of those nations
all over the world that has developed the most promising and innovative technologies in the
world. The city Bangalore that is within the boundaries of the nation, ranks among the list of
leading technology hubs across the world (Jacks, and Novy, 2020). Though, this is an advantage
as it can easily serve the companies within the country with innovative technology which can
help the company in making the business operations easy. However, it also adds to the list of the
threats as the company the House of Dorchester will have to facing cut-throat competition in
India in terms of technology and face technological disruptions constantly.
Legal factors
If the House of Dorchester decides to expand its operations within India, the company
will have to abide by certain laws for the purpose of carrying out its business operations
smoothly. The House of Dorchester will need to adhere to the common law that exists within
India with respect to the Sugar and Confectionary Industry. The House of Dorchester will also
need to comply with other laws such as employment laws, business laws, intellectual property
rights, consumer protection laws. These will guide the company with respect to the business
operations, hiring of employees, selling the products and keep a check of the prices that are set
by the company.
4