International Business: Expanding Furniture Practice Limited in Australia

This report discusses the Furniture Practice Limited's plan to expand their business in Australia, including the relevant academic models for international market selection. It also covers the typical barriers that can affect organisations on expanding internationally, such as language barriers, cultural differences, managing global teams, currency exchange and inflation rates, and foreign policy, politics, and relations. The report provides insights into the Australian market and why it is a suitable place for the Furniture Practice Limited to expand their business.

International Business

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1.Short brief of the furniture practice limited and explanation for going international ........1
2.Discussion about Australia for expanding the business. ....................................................2
3.Discuss about application of relevant academic model that related to the process of
internationalisation for the Australian marketplace...............................................................4
4.Discuss typical barriers can affect organisation on expand internationally........................5
5.Evaluate relevant implementation approach for internationalisation process for specified
target market...........................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
Internation business refers to situation where company distribute and produce the goods
and service in different countries . (Annushkina and Regazzo, 2020)The company shifts toward
a integration and interdependence as it establish more opportunities for country's government.
The international business involves the trade of service, goods, technology, knowledge and
capital beyond the national border. The mostly company try to shift towards globalisation as it
enhance the operational quality of company as it make full utilisation of resources. The furniture
practice limited was founded by Lee Jackson in 1997 and its head office in London. (Avrutis,
Nazari, and Sanjayan, 2019) The receptive company is dealing in luxury furniture such as
chairs, tables, clocks, beds and cabinets etc. The report will cover the discussion about The
furniture practice limited wants to expand the business in Australia along with Australian culture
may impact on respective company's growth. In addition to this, academic theory/ models of
international market selection. Moreover, barriers of international business as well as
internationalisation process for London market.
MAIN BODY
1.Short brief of the furniture practice limited and explanation for going international
The furniture practice limited offers wide numbers of luxury furniture as it design
innovative models to meet consumer's needs. The respective company has approx. 35
professional employees that help to expand the marketplace value in London. The repetitive
company has work with project teams, designer, architects to delver the furniture amenities in
London. The repetitive company has wide range of clients such as hospital, home working,
commercial building and education. (Belyaeva, 2018)(Benz and Jaax, 2022) The respective
company has used highly technology that help to enhance the sales and they generates approx.
$29.85 million in revenue. The respective company has offered sustainable office, recycle,
furniture disposal, relocation, maintenance and space planning. The Furniture Practice Limited
famous for providing the highly designed furniture such as designed clocks and luxury bed and
sofa etc. The respective company has faced competitive challenges as competitor company such
as Chapel Street, FBC London, Hyde House and Decorus etc. increase the use of high
technology and professional expert. The furniture Practice Limited use precise raw material as
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it use high quality wood that make perfect view of furniture style. The repetitive company has
offered whole service and retail service that cover the most of the London market.
The Furniture Practice Limited want to expand the business in international level as they
would like to enhance the revenue potential as the overseas trade help to increase the consumers
and company can understand international consumer's taste and preference. The respective
company will like to allure to international investor to invest in company so they can easily gain
the market capital value. (Cacheda and Barbieri, 2018)The Furniture Practice Limited wants to
understand the different culture and environment of Australia so that they easily approach other
countries after covering whole marketplace of Australia. The Furniture Practice Limited will take
competitive advantage as it offer unique furniture and innovative furniture items to native
people. The respective company will enhance the brand image and market reputation through
expanding the business in Australia as they attract the fresh consumers. The respective company
will increase the productive as they can easily access the Australian technology. The respective
company wants to decline the dependence on Australian market as they will provide the luxury
furniture at nominal price with best quality. The respective company wants to grow in
international market and to move toward from small company to multinational company. (Choi,
Mancuso Tradenta and Tombazos, 2019) The respective company wants to acquire the existing
talents of professional employees in Australia. The expanding the business in different counties
allow receptive company to get out soaked market and expand the global image as it help to
access the fresh market with new competitors. The respective company enhance the product level
that help will be helpful for reduce the cost and increase the productivity. The furniture Practice
limited wants to increase the franchise that help be important for improve the brand value of
company and increase the reputation of company among consumers.
2.Discussion about Australia for expanding the business.
The main reason of choosing Australia for expanding the business of furniture as
Australia is an wide-opened market with low level of restriction on export and import the
business. The Australia has highly educated employees that will help the Furniture Practice
limited as it will improve the operational activities and enhance the skills of existing employees.
Australia has high level of natural resource that will help for manufacturing the luxury furniture
items. (Clark and Shepherd, 2018)The Furniture practice limited will easily expand the business
as Australia has business- friendly environment, efficient regulatory. Australian people like
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luxury and heritage furniture items that will assess the respective company to increase the
revenue. Australia' has 13th largest economy as Australian economy is supported to new setup
and internal firm to expand the goods and service. The political condition of Australia is more
stable when compare to other countries and it;s has ranked in top five in global according to the
Index of economic freedom. (Csanády and et.al., 2019)The business relation between Australia
and UK is strong as it will be helpful for the Furniture Practice Limited to expand the business
in other countries. The Australia is mainly famous for wealthy nation and high gross domestic
product as it shown that Australian people more like to purchase new goods and service. The
Australian people prefer heritage and luxury furniture that will help to Furniture Practise Limited
to increase the marketplace place value. The Australian government has support the international
company to make full utilisation of natural resource and improve the infrastructure. The
Australian government has support to disposable goods that will help to Furniture Practice
Limited to more focus on reusable items and disposable items. (do Rosário Correia and Meneses,
2021)The Australian company has enhance the technological advancement that will help to
enhance use of technical machinery so that they will easily improve the effective operational
work and reduce the wasteful activities. The Australia always welcome foreign company as it
contribute to toward productivity and economic growth. The legal policy of Australia is the most
suitable for international firm as it provide monetary incentive. The Australian bank easily
allow a business loan to foreign company for expanding the business and provide quality service
to their native people. Australia has rich etiquette and culture that attract the new foreign
company to invest in Australia. The Australia is the one of the comfortable place to export as it
has top rank in legal; right that will help the respective company to maintain the strong legal
laws. The Australia's assets approx. Aus.$6.4trillioion and the Australia's sectors have grown-up
10 percent during the past 2 decades. (Vanegas-López, and et.al., 2020)The Australia is a good
place to expand the business as it has global 4 largest superannuation function. The Australia'
has good employment rate, healthy and safety culture the attract the existing managers to stay at
Australia.
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3.Discuss about application of relevant academic model that related to the process of
internationalisation for the Australian marketplace
The international marketing help to gauge the global market and opportunities for
products and service to accomplish the organisational goal.(Feil, And et.al., 2022) This process
has five stages to evaluate the international business.
Country Identification: In this initial step, The Furniture Practice Limited have to choose
one country that will more suitable and appropriate for business's expanding. The respective
company will understand the culture and environment of any countries whereas company expand
the business.
Preliminary Screening: In this second step, the furniture Practice Limited company will
look at financial position such as domestic consumption, exchange rate and currency stability,
government policy, rules and regulations and etc.(Gankema, and et.al., 2019) that will help to
expand the business. Some countries have not political stability that may affect the company
business.
In Depth Screening: In this third step, The furniture practice limited will select the vital
marketing decision making that help to distribute the goods and service. The respective company
not only measure local condition of market but also evaluate the micro economic factors. The
repetitive company will estimate the cost of production and then decided the price of product in
Australia. The repetitive company will identify the targeted consumers that help to focus on
valuable consumers and reduce the unnecessary efforts.
Final Selection: In this fourth step, The furniture practice limited 's mangers will reflect
upon the match in the country and strategic objective. The respective company will look at
similar domestic organisation and close competitors that may affect the company's business. The
repetitive company's manger will measure the other country that will be similar from chosen
country.
Direct Experience: The Furniture Practice Limiter's mangers will visit the chosen country
and experience the culture and environment of such country. (Korth,, Schwede and Zajac,
2018)The mangers will decide the actual position of country and research data that help in
identify the country.
Market entry strategies refers to method that asses to company to distribute and deliver a
goods and service in internation market. The company generally use strategy that based on the
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kind of product and service as effective strategies help to company to expand the business in
global level. Market entry strategies is an important for company as it help in maintenance
process and planing.
Exporting: The exporting refers to marketing and distributing the products in different
countries In context to Furniture Practice Limited, The respective company can easily expand the
market through exporting their products without involvement of third party.
Piggybacking: The Furniture Practice Limited will contact other organisation that
presently dealing in overseas. The Furniture Practice Limited and other international company
will make agreements to add furniture items and they will share profits and loss of each sale.
Licensing: The Furniture Practice Limited will transfers the right to sell or use a product
of different company. (Kriz and Welch, 2018)The respective company will use this strategy if
their product in demand and they want to planing of license the product.
Joint Ventures: In this strategies, the Furniture Practice Limited will create joint venture
with different organisation which plan to distribute the products in global marketplace. This
strategy help to minimize the risk in going into the global market.
Franchising: The franchise is mainly use in chain retail organisation in which company
sell right to other company. In relation to Furniture Practice Limited, the respective company
will transfer their right to international organisation so that they can open the branch of
respective company.
Outsourcing: In this strategy, The company hire other organisation to manger certain
operational activities on the behalf of company. (Kumar and Arora, 2018)In context to Furniture
Practice Limited, The respective company will hire top Australian company which help to
manger the operational work in other countries.
4.Discuss typical barriers can affect organisation on expand internationally.
The furniture practice Limited wants to expand into international market of Australia,
there are many barriers that affect this process. The five major barriers of international expansion
such as,language barriers, cultural differences, managing global teams, currency exchange and
inflation rates and foreign policy, politics and relations. (Lin. and Lee,2020)International
business for production and operation between countries, because different countries have their
own government policies, laws, language, cultures, currency, inflation rate and time zones, hence
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international expansion can be difficult. In context to Furniture practice Limited while expanding
business in Australia market, company has to faced five major barriers such as,
Language barriers
While expansion into international market, it is important to consider language of the
country. As different countries has their know language which organisation need to take into
consideration for business in international market. It make people of that particular country feels
comfortable and helps to attract more customers and increase sales.
Cultural differences
As different countries has different culture, there own specific blend of cultures which
people follow undoubtedly. It mostly consist of arts, traditions, holidays, social norms and foods
followed by specific group of people in each country. (Thukral and Jain, 2021)It is important and
enriching about cultures of countries to take into consideration for organisation to market into
international. Managing teams and business into international branch of selling products to
customers or potential customers manger needs to take time to understand cultures that can
projects respect and emotional aspects towards people to conduct business successfully. Hence it
company needs to focus on cultures of Australia for expansion.
Managing global terms
Another aspect of barrier for company in expansion into international market is managing
employees across the globe. Managing functions operations of teams it becomes important to
understand their needs, goals and objectives to operate smoothly for success and profits of
company. To maintain relation and build trust with employees across global business company
needs to provide direct interaction wit employees to understand them, by using video
conferencing platform in real time helps company to get connect with their employees across
global business. Hence it is necessary for company firstly interact with teams in Australia to
motivate and provides requirements for success and profits of company.
Inflation rates and currency exchange
The value of currency is not same in every country as various countries with different
currency which company needs to take into consideration for offering products worth same
amount in production country. Exchange rate between two countries should taken into
consideration before expansion into international, also it is important to measure inflation rates
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as it vary across countries that can impact operation and production level of company so
company needs to consider both during expansion into international market.
Foreign policy, politics and relations
Every country has their own policies government politics and relations that can influence
between countries, the government politics on policies can affect on labour law, taxes,
transportation, infrastructure, educational system and raw material costs. Hence it is important
for company to consider all rules and regulation of Australia to expand in market for business
5.Evaluate relevant implementation approach for internationalisation process for specified target
market.
An implementation approach determined through manager to choose power bases that
can be applied to techniques used to enhancing potential of plan adoption, it is environment
planning for centralization, type of production, amount of complexity and emphasis on
efficiency. (Wulandewi and Mahyuni, 2022)Expansion in market of Australia the furniture
practice limited needs gather information regarding business strategy and market research
suitable of operation to provide products. There are various steps in implementation approach for
international process for target market such as,
1. Choosing expansion country
After using accurate matrix and evaluation method Furniture Practices Limited
chose Australia for attracting market fit for particular products that company can offer, after
following some factor that impact decision of choosing specific country for expansion as,
demanding of products, considering regulations, getting license & certification accordingly and
lastly taxation issues.
2. Conducting market analysis
Furniture practice limited used tools to analysis market of Australia such as,
Porter's five forces and SWOT analysis that helps to determine advantages and disadvantages of
business marketing to set up into market. After analysing external and internal factors that can
affect company is taken into consideration for success of organisation.
3. Planning market entry
Organisation considered knowledge of and made a framework of strategic plan for
entering into international market of Australia for business operation. Company consider all
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possible factors and implications that can affect entrance into market and planned strategy for
business with the help of specific tools.
4. Evaluating market position
After understanding and evaluating market position into niche and target market
in Australia company analysis its market position for business set up to operate and offer
products to customers.(Yan, Hu and Liu, 2020)It helps to identify niche and targeted market for
selling products and services to potential customers.
5. Considering specific target
Difference in lifestyle, taste and spending of people in Australia company develop
and improved its products according to the preference of customers needs & requirements.
Targeting different customers by analysing geographical, demographical, psychological and
behavioural data to point specific target audience.
6. Products and services
Market research helps to identify demand of target customers in Australia
Furniture practices limited consider to adapt changes in production level of products according to
the preferences of customers and supply the products in market. It will helps to increase success
as organisation is meet specific needs of customers.
7. Evaluating competencies
Gathering information by evaluating market position, product and target audience
company needs to identify core competition, which will help organisation to plan strategy against
competence for getting position in market and success in future. After evaluation of market
competition in Australia company can focus on creating its own position into market to get
identification
8. Analysing value chain option and supply chain
Furniture practices limited needs to focus on identifying franchising, licensing,
importing/exporting and regulation of Australia to determine advantages to establish business
internationally. Company analysis its supply chain and value chain factor for operation in
international market, which will help in smooth function of selling products and services to
customers.
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CONCLUSION
The above stated report concludes that international business is very important for
company development and growth as well. It has been concluded that Australian business market
is most the suitable and appropriate for foreign company as it Australian government support the
new start-up and foreign company. The Furniture Practice limited will face barriers such as
tariff , language, distance, imported goods and natural etc. while expanding the business. There
are various strategies such as exporting, licensing, ventures, franchising and outsourcing etc. that
will help to respective company. The international business process will help to identify the
most suitable country for country's growth. The company can easily extend the business and
revenue through global expanding. The company may require professional experts and
professional employees in order to effective expanding the business. The Furniture practice
limited will require effective planing and implementation strategies to accomplish the expanding
the business in global market.
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REFERENCES
Books and Journals
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In The Art of Going Global (pp. 57-79). Palgrave Macmillan, Cham.
Avrutis, D., Nazari, A. and Sanjayan, J.G., 2019. Industrial adoption of 3D concrete printing in
the Australian market: potentials and challenges. 3D concrete printing technology,
pp.389-409.
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Kumar, S. and Arora, F., 2018. Non-tariff Barriers on International Trade Flows in India.
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Vanegas-López, J.G and et.al., 2020. International market selection: an application of hybrid
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Business and Strategy.
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Wulandewi, D.M. and Mahyuni, L.P., 2022. Blue Ocean Strategy to Increase the
Competitiveness of Egy Shell Craft Exports. Budapest International Research and
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