Exploring International Environment and Marketing Strategies in International Trade

Organisation Report

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Exploring international environment with different types of example-......................................3
Marketing Strategies in the International Trade-........................................................................5
Strategies for entering into International Trade-.........................................................................6
Benefits of International Trading-...............................................................................................8
Pitfall of International Trading-..................................................................................................8
Conclusion- .....................................................................................................................................8
References:.....................................................................................................................................10

INTRODUCTION
The principles of international business helps in determining different cultural, legal,
ethical and economic environment which emphasis on business practices and outcomes for
producers, employees and consumers. International business referred as trade of goods, services,
technology across national borders at global or transactional scale. The global economy is
dominated by multinationals from all countries in world. It allows firms to take use of resource
which is present in different countries more efficiently. New latest technologies are bring by firm
in order to utilize resources in more efficient way (Anwar,and Sun, 2019). Through set up of new
industries and business in different countries, international business helps in improvement of
business growth & employment potential in those countries. There is not only movement of
goods or services in international business but also involves movement of capital, technology,
intellectual property such as patents, trademarks etc. For the report TESCO is considered which
is British multinational groceries and general merchandise retailer establish in 1919 dealing in
products of supermarket, superstore, hypermarket. Its headquarter is located in Welwym Garden
city. England UK. The report will cover international environment by conducting PESTEL
analysis. The range of techniques related to management planning process is applied and
strategies of internal business is determined in this report. Further, report will discuss several risk
which are arising from international trade operations.
MAIN BODY
Exploring international environment with different types of example-
The international managers of organisation face intense and constant challenges which
requires training and understanding of foreign environment. The manager has to deal with large
variety of cultural and environmental differences (Chang,2020). The international environment
macro- environment in context to Tesco which is wide term affecting firm business environment
that involves factors of political, economic, cultural etc. Therefore, it is compulsory for people at
managerial level to work on factor which comprises international business environment as this is
essential for country's economy. Following are types of international business environment
which are mentioned below-

 Political environment- As Tesco is largest retailer in the world with numbers of stores
operating in different corners of the world, so for keeping a good brand image in the
market company needs to fulfil or follow various rules and regulations which are
imposed by the government of different countries on the functioning of company's
managerial activities (Friel,Schram, and Townsend,2020). It is very essential for Tesco to
keep updated itself with the changes which are occurring in the political sector because, if
a business wants to run smoothly in the market without and hurdles then it become
important to stay accountable towards the responsibility for the public authority. By
taking a recent example related to Brexit, Tesco may face the problem fluctuation in sale
of their product and services. Due to the tension which can be seen between US and
China in relation to their trading, Tesco find it difficult to get the complete control on the
market. The situation between these two countries is very complex and other issue which
Tesco might face is the alteration in the taxation policies in some countries from where
company purchase its raw material, it somewhere affect the earning of the company.
 Economic environment- Several economic components and products which are
available in the market affects the consuming criteria of the customers in relation to the
broad line up of Tesco's product. Company should carefully focus on the economic
condition of the countries in which it is operating, because several economic factors like
increase in the price of the products, purchasing power of the consumer, etc., may affect
the profitability and and other operational activities of the organisation. For a successful
distribution and good return on the offerings, firm must have the complete knowledge
regarding the tax structure. Tesco is continuously growing in the markets of several other
countries but its maximum earning is still generate from the customers of United
Kingdom, so if some changes have been occurred in the economic sector of the country
then Tesco will have to bring big change in its production line up or selling strategy,
because of this company may suffer some extra costs in its functioning.
 Social & cultural environment- Tesco needs to maintain a good social image in its
different marketing practices, not only this according to the Social Inclusion Initiative in
United Kingdom Tesco is responsible for respecting and work for fulfilling the needs
and expectations of the people in the society. In many countries people are interested in
buying goods or products in mass volume and by observing this change in the purchasing