International Business: Business Drivers, Trade Barriers, and Expansion Methods

International Business

Executive summary
Every organization aims to expand their business in other country by managing all
functions and activities which can help to develop organizational productivity. in other Words,
the movement of goods from country to another us known as international where number if
products and services are delivered to customers and supports to increase the productivity. This
involves cross- border transaction of goods and services between two and more countries.

Table of Contents
Table of Contents.............................................................................................................................3
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
CONCLUSION................................................................................................................................9
REFERENCE................................................................................................................................10

INTRODUCTION
International business refers to trade of goods, services, capital, technology, and thoughts
across the border and at the global or transaction scale. There is contractual agreement that
allows foreign firms to use products, services, processes from other nation. To improve
understanding about international business Softwire has been selected that is small size UK
based organization (Ferraro, 2021). The company is a dynamic and successful software
development company with offices in London , Manchester. The organization is providing better
quality of software to their customers who can help to attract number of customers and develop
organizational productivity. The company wants to expand their business by entering in to
Chinese market for their “UHT milk that will help to influence people and supports to increase
organizational productivity. The present report covers business drivers, trade barriers, ethical and
social issues, cultural preference, and expansion method.
MAIN BODY
Background
Softwire is the small size organization that develops software for their customers which
can help to develop organizational productivity. The company was founded earlier for the
purpose of providing different kind of software and services to their customers. The company
wants to expand their business in Chinese marketing that will help to attract number of
customers and increase organizational productivity. The company deliver innovative, and high
quality of software solutions to their clients involving BBC, and Google DeepMind. It has seen
that working environment is very relaxed and friendly, and there are opportunities to engage in
probono and charitable work. The company understand the customer requirement and design the
kind of software with optimum solution that can help to develop organizational productivity and
profitability (Bahoo, Alon, and Paltrinieri, 2020).
 Business drivers behind company’s expansion into the given country.
To expand a business and managing all functions there is need to analysis the
environment as it helps to know which factor might be affect business industry and how it could
be operate a business regularly. To start a business and enter in to new market, environment
analysis and competitor factor are used to introduced all functions and activities that supports to
manage business activities. In relation to Softwire company, management has analysed that
1

International business

Table of Contents
Executive summary: ......................................................................................................................3
INTRODUCTION...........................................................................................................................4
TASK...............................................................................................................................................4
Business drivers..........................................................................................................................4
Porter Five force model ..............................................................................................................7
Trade barriers..............................................................................................................................8
Ethical and social issues............................................................................................................10
Cultural factor...........................................................................................................................11
Methods of expansion...............................................................................................................13
REFERENCES..............................................................................................................................15

Executive summary:
The report states that international business is a procedure of conducting business
activities at international level across national boundaries. Different trade drivers which plays
essential role in performing business functions internationally. There are various methods of
expansions that help business to explore its functions in different market to attain growth and
development objective. The report covers various business drivers, social and cultural issues as
well as trade barriers in international business.

INTRODUCTION
International business encompasses various commercial and business activities that take
place transfer of organisational goods and services, ideas, resources, people as well as
technologies across different national boundaries. In international business, organisation operates
different activities at global level and perform range of commercial functions to attain the
objective of gaining higher profitability and maintain effective brand positioning in global
market place (Boa, Wattanatorn and Tagong, 2018). It provides international expansion
opportunities to business to gain higher revenue. In this report the chosen organisation is Saputo
Dairy UK which is founded in 1981 and it is leading dairy organisation of British. Organisation's
headquarter is situated in United Kingdom and it want to expand its business activities and
functions in Chinese market to gain in opportunities. Respective organisation analyses demand
of UHT milk in the market of Beijing and consumption rate of dairy. Organisation target
audiences are children of age group 3 to 11. 17,200 employees are working with business and
organisation faces competition from various competitors like Darigold, Byrne and Leprino foods
that provides similar dairy products and services to customers (Saputo, 2021). revenue of
respective organisation is approximately 14.94 billion Canadian dollars in 2020 that shows that
organisation covers higher share of marekt. the report covers key driven factors that impacts
business activities such as Pestle analysis and porters five forces. Furthermore, cultural factors,
ethical factors as well as social factors are covered. There are various trade barriers and
international business expansion methods are covered in this project report.
TASK
Business drivers
Business drivers determined as the factors and activities that affects organisational
operations and functions positively and negatively. There are various factors are included in
business drivers that existed inside or outside of business boundaries and influences business
growth and development. Saputo Dairy organisation access all key business drivers of china
market through conducting effective market research than take decision of entering in Chinese
market and target specific target customers such as children. Respective organisation provides
higher proportion of UHT milk in Chinese market than local business areas for the gain higher
profitability. In order to evaluate different trade barriers of respective country, Organisation