International Business

This article discusses the challenges faced by companies while expanding globally. It provides insights into the strategies and models for global market selection and entry process. It also highlights the barriers faced by Wessex Advanced Switching Products Limited (WASP) while expanding globally.

INTERNATIONAL
BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................4
LITERATURE REVIEW................................................................................................................4
ANALYSIS & DISCUSSIONS.......................................................................................................5
Overview of the company & rationale for going global.........................................................5
Critical discussion of the country recommended for entry....................................................7
Demonstration of application of the suitable models and theory related to global market
selection and strategies for entry process..............................................................................8
Various barriers faced by the company while expanding globally......................................11
Critical evaluation of the approach of implementation for internationalization process in the
specified target market based on the analysis.......................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

EXECUTIVE SUMMARY
By expanding internationally provides various benefits to the business of the company as
it not only enhances the business performance but also aids for attaining growth and
developments by fulfilling the pre defined goals. The business organization may develop by
getting all the benefits at inter national platform. For developing and growing in another country,
it is very crucial to critically examine the selected market place conditions and modes for
entering in the global markets. The company has been selected for this purpose and the
company has various exposures for taking the business at international platform.

INTRODUCTION
International business consists of the full range of cross borders goods and services or
resources exchange among the 2 or more countries(Collinson and et, al., 2020). The exchange
may go beyond the monetary exchange for physical products including global transfers of
various other resources like individuals,intellectual property for ex- copyrights,patents,
trademarks and data. The businesses involved in global business ranges from big multinational
companies thousands of employees running business in many nations around the globe as
importer or exporter. For engaging in global business requires the understanding of legal
requirements and regulations of the respective nation in which the company wants to operate.
The company selected for this project is Wessex Advanced Switching Products Limited (Wasp)s
which is a famous mid sized firm in United Kingdom. It was established in the year 1974. It
deals in customized rotary switches used in professional applications consisting of military
communications,custom membrane switches and keyboards and touch screens for use in
defence,food manufacturing and many more. The company wants to expand its operations in
DENMARK for global expansion. The project states the company's overview, models and
theories aiding the company for international expansion with the critical analysis of strategies for
entry and various barriers faced in the global expansion.
LITERATURE REVIEW
According to (Hamilton and Webster, 2018). the global business is refereed to as the
business which operates the functions of the business across the boundaries of the countries. In
short it encompasses the buying and selling of products and services among the 2 or more than 2
countries. For many business organizations the decision making,production of goods, products
and services selling etc. which are impacted by many factors. Cost of the goods play a important
role in the companies which operates in the markets which are developed like United State of
America and Europe. Global business helps in the growth and development of the international
economy and there are many risks also. As every nation have its own government rules and
regulations,inflation rates and currency which may effect directly the model of business of the
business organization. The most common challenges which is faced by the business organization

for going internationals are the barrier of culture and language, the exchange rates of currency
and also the politics & policies of foreign nations. Because of the challenges the company need
different professionals advice who knows and understands the culture and have full knowledges
of finance.
ANALYSIS & DISCUSSIONS
Overview of the company & rationale for going global
Wessex Advanced Switching Products Limited (WASP) is the specialists electronics and
engineering organization which is based of South Coasts of United Kingdom. The organization
was incorporated in the year 1974 and presently employs more than 100 people with the
turnovers of 14$ M. Its office is located in Alexandria Parks, Penner Road,Havants,
Hampshire,P09 1QY, UK. In starting WASP only designed and produced a range of custom
made rotary switches for the use in professional applications consisting of military
communications. By the expertise gained the company expanded the products ranges by
including custom designed membrane switches and specialist keypads and touch screens which
are used in professional applications consisting of medical ,defence,food manufacturings etc.
and recently the company has also entered in the aviation sector. Organization has developed
more goods as a part of its diversification strategy like screen touch suite controls and low
power consumption cabin lighting systems. The business organization has also innovated and
manufactured a virtual window by the use of screen and cameras. It is very significant that most
of the Uks airlines are using WASP for giving the consumers the ultimate experience of flying.
The company works closely with consumers for developing advanced engineered, customized
solutions for meeting the particular requirements and the high quality and reliability of goods is
the main reason for the success of the company. Wasp Switching products Ltd. Products are
100% tested at various steps in the manufacturing cycle for ensuring the total quality and
reliability. WASP also offers the full qualification and Certifications service for goods used in
airlines industry and is AS9100 Rev D certified(Hannibal and Knight, 2018). The organization
offers goods to Boeing and Airbus standards consisting of RTCA DO-160,D6-36440 and
ABD0100.

Rational for expansion of business in global market places-
 For enhancing the revenue- It is the first and main reason for management of Wasp
Switching products Ltd. For going internationally is for enhancing the sales of the
business organization. By operating internationally the concerned organization has
chances of targetting new market places and get access to millions of customers resulting
in revenue increase.
 New talent access- It is the another reason for Wasp Switching products Ltd. To take the
business in to global market places. By going internationally the company's management
will get access to skilled and professional pool of talent leading to various competitive
benefits for the business organization(Hernandez-Pozas and Carreon-Flores, 2019).

Critical discussion of the country recommended for entry
The Wasp Switching products Ltd. Wants to grow and develop the business in the market
places of Denmark as the location for doing business and the weather and climate of Denmark is
the best and ranked at the top in whole Europe. Operating business in Denmark is economically
feasible, quick and effective for the Wasp Switching products Ltd. And World Bank has ranked
Denmark as no. 1 in whole Europe and is at no. 4 in the world in ease of doing business index in
the year 2021. As per the report of world bank the nation has the competitive economy and is
one of the best nations for growing and developing the business. GDP of the nation is anticipated
to touch around 340.00 US Billion Dollars at the end of the fiscal years 2022 which is a good
sign in comparison to other nations(Hooper and Holtbrügge, 2020).The Denmark's government
is very helpful and the countries economy is known as most open economies between all the
countries. That is why Denmark is the best option for the Wasp Switching products Ltd. For
establishing the business.

Demonstration of application of the suitable models and theory related to global market
selection and strategies for entry process
Various methods for entering in the global market-
 Export- It is the easiest way for entering in the global market. This entry mode is the
common way for the company in growth of business in global market. It is basically
trading of products and services to the other nation from the home country. The main
advantage of this mode is that the company may avoids the costs of doing operations in
the selected country. If Wasp Switching products Ltd. Choose this methods for expanding
the business then they must think about the market oriented labelling,packaging and
offers(Hult, Gonzalez-Perez and Lagerström,2020).
 Franchising- The organizations which are seeking for minimizing the risk and wants
retail presence in global markets,franchising is the simplest way of entering in
international markets. It allows the other companies or people to take risk on behalf of the
company. By agreements and franchise payments, the other company pays the
commissions for using the name of the brand, production process and other intellectual
property. The licensee takes the risk and accountable for losses but shares the profits with
parent organization. The management of WASP can use this methods for making its
presence in DENMARK with less investment and risk.
Pestle analysis- It is a frame work used for analysing the external environment of industry
before launching any new product or business.
Political factors- They are those factors which consists of intervention of governments.
The management of WASP will have to look after the many regulatory and legal laws such as
employment laws,tax policies etc. While expanding the business globally as it will impact on the
operations of the business.
Economic factors- The interest rates in the nation comes in this factor. If WASP wants
to profit from the global markets then they must look at the exchange rates as they speaks about
volumes for how much the company will benefit from global market operations(Kolk, Rivera-
Santos and Rufín, 2018).

Social factors- They include the different culture ands demgraphic aspects of society.
The WASP management will have to observe the different elementss like awareness of
safety,age distrubutuion,population and attributes of the country in which its wants to do
business as is if the company will not adapt to the external social environment then it may not be
able to survive in the market.
Technology factors- The advanced technology allows the companiess for manufacturing
goods and services for less moneys resulting in less price of goods, if WASP management wants
to get benefitted from economies of scale than it will have to opt for latest technology ,it will
cost much buts benefit in long term.
Legal factors- All the business's are prone to legal threats and if WASP wants to go
global then it will follow all the rules and regulations of the respective nation asif they fail to do
so then they may have to pay heavy penalties.
Environmental factors- Today consumers prefer to buy goods from those companies
wich are eco friendlys. If WASP management wants to establish itself in thes global market it
must invest in renewable energys and aim for in store energy for fully renewable. They can also
make goods like solar and wind panels.
Porters five forces analysis- This analusis is used for examining the forces which may
affect the companies operations. Here is the analysis of WASP Ltd.-
 Competitive rivalry force- In the global market WASP will have to face high
competition as every firm wants to get benefitted from the international operations. So
this force is strong for WASP(SriVătămănescu and et, al., 2020).
 Bargaining power of buyers- The consumer are king in every market as they buy the
goods of the company. The consumers in the internatioanl market can slightly affect the
company as they have other options but cannot adversly impact as they are not united so
this force is moderate.
 Bargaining power of suppliers- The suppliers of the company who provide the raw
materials to the company has moderate power as there are many suppliers in the market
but for specific resources the company is dependent on suppliers.

 Threat of substitutes- This force is very weak as company makes unique and
customized products which are developed by research so there is less chance for getting
imitated.
 Threats of new entrants- If any new company wants to enter in the market then they
will have to provide consumers with some unique products and for uniqueness in
products research is required which will cost bery much and new entrants cannot affords
it so the power is weak.
International market selection process-
At the global level the selection of market plays a crucial role. It is based on the assessment
of different markets against particular and well defined measures by taking in consideration the
firms resources. Here are some steps-
 Objectives of global market- In this steps the identification of marketing goals is done.
The market chosen may not be optimal for the achievement of marketing goals. So the
WASP management have to firsts identify the objectives of expanding the market in
Denmark to see that if market is suitable or not.
 Selection parameters- For evaluating and selecting the market it is crucial for WASP to
establish the parameters for evaluation. The parameters are corporate resources, global
environment ,conditions of the market.
 Preliminary review- It is done for eliminating the non potential markets. WASP
management can use per capita income,populations ,economic structures etc. for pre
screening.
 Short listing markets- The previous step allows the company in eliminating the markets
which are not considered initially. The left markets will be reviewed for more info about
the markets.
 Selection and evaluation- The selection of market will be evaluated in terms of cost
analysis and feasibility study. They are ranked on basis of entire appeal. By considering
the firms resources and environment the best market is selected.
 Test marketing- The selected market is tested on small level by launching product in
subset of the market. It will tell WASP the response of consumers about the goods which
helps for analysing what consumers want.

 Commercials manufacturing- After the test of product in selected market the firm does
mass manufacturing. In this stage the WASP management cans make small changes to
the producst mix.

Various barriers faced by the company while expanding globally
Global business comes with various challenges which the company have to face but the
firm may use it as an opportunity for growth and development of the organization. Here are some
challenges which the Wasp Switching Products is going to face-
 Language barriers- It is on of the biggest barrier which the business organization faces
for expanding the business in other country. It is crucial for the company to consider the
spoken language of the country in which they are expanding business. In context of Wasp
Switching products Ltd. it is very crucial for the business firm for focusing on this
barrier as more than 80% population of Denmark speaks Danish as their first language
and their second language is English. The business organization members will have to
learn the language very quickly or else it will act as the biggest barrier resulting in impact
on the sales of the company(Cherunilam, 2020).
 Cultural difference- As each and every nation they have their own language in same
way they have their own culture also. Culture consists of art, holidays,food,holidays and
the norms of the society followed by the specific group of peoples. It is significant for the
organization to understand and know about the countries culture in which they are going
to expand the business. In Wasp Switching products Ltd. context it is crucial for the
company to know and understand the culture followed by the Denmark's people. If they
fail to understand they will also fail in adopting the business model of local market places
and will not be able to understand the practices of local businesses. It will result in that
the business organization management will be unable in exploration of the new
opportunities
 Management of the global teams- It is the another barrier faced by the business
organization if they want to expand the business globally of management of the
company's employees. It will be difficult for the organization for carrying the functions
of business as a team. For managing the teams many things come in the way like
language,time zones, cultural difference etc. In Wasp Switching products Ltd. It is crucial
for the company's management for maintaining the strong working relationship with the
international team. If the management of the business organization does not manage the

international teams effectively then it will act as a barrier for the company for operating
the function of the business effectively(Wulff and Villadsen, 2020).
 Legal and regulatory compliance- It is known as the most difficult barrier faced by the
business organization in the global expansion. It consists of various challenges types
like regulations of trading, taxation policy,legislation of the employees, business
requirements etc. In Wasp Switching products Ltd. It is very crucial for the company to
follow the rules and regulations as by failing to obey these rules will lead to penalties and
ban on the business organization.
 Currency Exchange and Inflation Rates- The value of the pound will not always be
same in other nations currencies ,nor the currency value regularly be worth as same
amount of products and services. In Wasp Switching products Ltd. Context the
executives must familiarize with the exchange rates of currency among the nations. For
example- The present exchange rate from British Pounds from the Danish Krone is 11.54
and for doing business internationally the company must know the currency
rates(Buckley, 2019).

Critical evaluation of the approach of implementation for internationalization process in
the specified target market based on the analysis
The Uppsala model for internationalisation is known as the best known models of how
the business organizations handle the process of internationalisation. It presents the approach to
success and states that business will slowly become internationalized. The model states the lack
of info of inter national markets places which may impact the process of internationalization
negatively. So, it is recommended to the business organization that they should first establish the
position in the domestic markets ,then opt for developing the company and resources in the
foreign nations and then move forward to the next stages after having good understanding of the
condition in the international market place(Aguilera and Grøgaard, 2019). The models discusses
the 4 successive stages which represents the advanced degree of international involvement
market places commitment. The 4 stages are explained here-
Stage 1- No consistent export activities (overseas exports)
Stage 2- Export by a autonomous agency (mode of export)
Stage 3- Establishment of international office for sales
Stage 4- International manufacturing and production unit
Step 1 is the first stage for Wasp Switching products Ltd. For starting to enter in market
places of Denmark but do not export regularly. Information of the market places is not enough
and knowledge is randomly gained rather than by a system.
In step 2 the concerned company exports through agents systematically. It is basically
and export indirectly which provides the companies knowledge and experience about the
market places of Denmark and Danish consumers in the market places.
In step 3 the company is willing to do more exports as the management wants to take
over the work of agents and do it by self. It shows that a business organization must have the
necessary info about the target market places and how to set the business.
The last step is of setting up the manufacturing facility of the business organization in
market which is already doing export. It happens due to the well informed feeling of the
company and the company wants to take the advantage of location(Srivastava, Singh and Dhir,
2020).

CONCLUSION
The above project concludes that going international for any business is the most
significant aspect for growing the business, customer base along with the profitability of the
organization. In the project conduct of various functions for the selected firm to operate the
functions of business internationally for increasing the presence and profits. The project also
discusses about how the selected firm may expand the business in the market of DENMARK for
developing the business and get success which is beneficial for the long term stability. In last is
is also states the various modes for entering in the new market place and different barriers faced
by the business organization to go international.

REFERENCES
Books and Journals
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Cherunilam, F., 2020. International business. PHI Learning Pvt. Ltd..
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