International Business Expansion: A Case Study on Marshfield Bakery Limited

This report discusses Marshfield Bakery Limited's plan to expand their business in Sweden and the rationale behind the decision. It also identifies typical barriers that the company may face while expanding internationally and provides recommendations on how to overcome them. The report includes a PEST analysis of Sweden and discusses the impact of language barriers, cultural differences, and foreign policies on the company's internationalisation process.

International Business
1

Executive summary
International business includes trading of technology,services, labour, capital, knowledge
across national borders at international orglobal platform.With the help of this cross-border
transaction of services and goods between two or more than countries companies can gain
significant benefits such as currency exchange, longer product life span, increased revenue,
profitability and more.This report this conducted onMarshfield Bakery Limited which is
operating its business services as a quality handmade cake, biscuits, snacks, bars and seasonal
products manufacturers.Currently organisation is looking for expanding their business in
Sweden, as this country offers number of economic advancement opportunities especially for
small scale organisations and entrepreneurs.This report identifies that with the help of taking
advantage of analysis of international market segment organisation overcome barriers as
financial barriers, cultural barriers and more.It further facilitate company to implement effective
internationalisation strategy to assure success at greater extent.
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Executive summary..........................................................................................................................2
INTRODUCTION...........................................................................................................................5
Analysis and Discussion..................................................................................................................5
1.0. Brief overview of organisation and rationale behind going international................5
1.1. Reason for Selecting the company..................................................................................6
1.2. Rational of going International........................................................................................6
2. Recommendation of country to enter and the rationale behind the decision.....................7
2.1...........................................................................................................................................7
2.2...........................................................................................................................................8
3. Discuss typical barriers that will be faced as the organisation expand internationally......8
PEST Analysis of Marshfield bakery limited....................................................................9
3.1. Language barrier............................................................................................................10
3.2. Cultural differences.......................................................................................................10
3.3. Foreign policies, politics and relations..........................................................................10
3.4. Managing global teams..................................................................................................10
4. Evaluate a relevant implementation approach for internationalisation process for the
specified target market.........................................................................................................11
4.1 Licensing:.......................................................................................................................11
4.2 Exporting:.......................................................................................................................11
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4.3. Build a joint venture with a company:..........................................................................12
4.4. Franchising:...................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................13
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INTRODUCTION
International business is defined as a process of trading of goods, capital,technology,services
or knowledge across national borders.International business mainly institutes cross border
transaction of services and goods between two or more than countries (Ferraro, 2021).Thisform
of business is also defined as globalisation international business allow organisation to have
advantages in terms of increased revenues, easier cash flow management, longer product life
span, access of export financing and more profitability.With the help of internationalisation
organisation can make improvement in company’s image and can enhance its revenue generation
ability. Especially for companies those who are operating in small scale sector
internationalisation process dynamically help them gain recognition and profitability at greater
extent.
Present report has been conducted on Marshfield Bakery which is a family founded
bakery.This company operates with very innovative, highly creative and inclusively managed
teams.Company offers high quality products and services to its customers since 1984.With
having 82 employees this organisation is looking for expanding their business operations in
international market. In this report formative discussion has been conducted on the brief review
of selected organisation and the rationale for going international.Along with this significant
recommendation and typical barriers that company can face while expanding is also included in
this report, along with relevant implication approach for the process of internationalisation.
Analysis and Discussion
1.0. Brief overview of organisation and rationale behind going international
Marshfield Bakery is operating its business services as the manufacture of bread, pastries
and cake and other types of salads. It is a private limited with share capital company operating in
the provinces of United Kingdom. Respective company offer high quality products and services
to its consumer since 1984. This firm is having wide range of selection of shortbread, flapjacks,
loaf Cakes and other bakery products. This organisation is operating in bakeries and tortilla
manufacturing, food manufacturing, retail bakery and groceries and related products industry
(MARSHFIELD BAKERY LIMITED. 2021). With having 82 employees at United Kingdom
location this company is satisfying needs and demands of consumers. Marshfield Bakery is an
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award-winning family-owned business which currently manufacture over 15 different flavours of
flapjack and short bread products along with wide range of biscuits and cakes. This company
keeps on innovating with the help of creativity and bringing uniqueness in their products. This
organisation main aim is to be highly creative and provide extensive and high-quality services to
its consumers with inclusively managed teams.
1.1. Reason for Selecting the company
Currently this organisation is looking forward to expand their business services in
international market segment. In addition, it has been identified that respective company is
looking forward to go international due to various growth and development opportunities
(Czinkota, Khan and Knight, 2021). Furthermore, it has been underlined that the rationale behind
Marshfield Bakery to go international is to leave the comfort zone to trade on international
platform and make business stronger, more profitable and more successful. Company is also
looking forward to serve large base of consumers with their high-quality products and services.In
addition to this organisation also aim towards increasing its revenue, longer product lifespan and
access more growth opportunities to have long-term sustainable business.
1.2. Rational of going International
In addition to this, the main rationale behind going international is to enhance value of
business and access new technologies and accelerate growth in effective manner. Along with
internationalisation also allow business to have a greater number of consumers and access new
talent pool through which company can conduct their business operations in more effective
manner (Mathews, S2021). Exposure to foreign market facilitate company to have more source
of revenue generation and learn a new culture that will further allow them to move forward in
different market with high confidence. With the help of internationalisation Marshfield Bakery
can significantly enhance their growth and development opportunities and can further expand
their business in other countries. This will benefit them in terms of long-term sustainability high
business growth and profitability. Some rationales are:
Brings Foreign Exchange
The global corporation acquire big amount of forex thru promoting their items within
numerous countries. In addition to this, whole bills are obtained in admire of distant places
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currencies which is probably applied via their home nation for price of imports. Additionally,
the forex received thru those ventures that aids into complete inexpensive boom of country.
Spreading Of Business Risks
International commercial company presence internationally aids in spreading their danger.
In case, there may be any loss passed off thru this commercial enterprise into a person of the
united states of America’s then this can be adjustable in clean manner with profitability won into
unique global locations. In addition to this, that is also beneficial for organization. To transfer it's
far surplus products or resources into one kingdom to different that aids them in minimizing its
threat.
2. Recommendation of country to enter and the rationale behind the decision
In order to assure higher growth and sustainable development opportunity it is
recommended to Marshfield Bakery to enter in the business market segment of Sweden. The
main rationale behind the decision is that, this country is having various national policies that
addresses innovation in entrepreneurship and innovative activities of SMS,with the help of
offering direct support to them with the assistance of programs and many other ways. This
country is becoming one of the biggest European start-up hubs and foster innovation and
entrepreneurship (Doing Business in Sweden. 2021).
2.1
It has been evaluated that this country is in the top 10 countries for business and is having
strong economy which is leading this nation to be the prime European start-up firms. In addition
to this, it has been identified that the main reason behind selecting this international market is
that, this country is known for fostering entrepreneurship and innovation which can bring
number of growth and development opportunity for the companies like Marshfield Bakery. In
addition to this, it has been identified that this country is having large number of small and
medium size companies (DiMatteo, 2021). Sweden offers extensive business opportunity for
those organisations who are innovators and entrepreneurs with unique ideas and products and
services that can satisfy consumer needs and demands in effective manner.This nation also
promotes and support international competitive products and services and organisations while
testing and refining their business ideas with help of different seminars, drafting of action plan
and workshop. Sweden offers number of business opportunities to organisations.
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2.2
In addition to this it has been identified thatSweden is having a strong as well as stable
economy which is attractive location for foreign investments (Westney, 2021).This country ranks
10th out of 190 economics in the terms of business of doing business.It has been identified that
with having a population of 10 million and GDP $560 billion (PPP) this organisation offers high
standard of living for citizens (Lee and Muminov, 2021).However, in this it is essential for
Marshfield Bakery to understand local laws regulations and rules in order to assure success of
their business expansion. This country offers ease of doing business and has easier business
operations and formation process that include online filing platforms for taxes, incorporation
formatting, property transfer and more.This country is an open economy that duly foster
competition and innovation. Along with this, government of this nation invest in promoting
growth in sectors such as food processing and biotechnology.This country is open to work and
trade to support growing market and is innovation hub.Furthermore, it has been identified that
Sweden is a hotspot for start-up and entrepreneurs that will significantly allow Marshfield
Bakery to have successful growth opportunity.Furthermore, it has been identified that Sweden is
mainly renowned for its strong business climate, diverse language skill,global competitiveness
and commitment to innovation.This country is a free-market environment and have a highly
developed education system (Tauriainen, 2021).
Thus, according to the analysis, it has been identified that Marshfield Bakery by expanding
their business services in Sweden can gain number of benefits in terms of ease of doing the
business operations,open economy, innovation hub and many more.However, in this process it is
essential for respective company to have proper understanding of country taxes and other form of
regulation in order to perform their business operation in a seamless manner.This will
significantly facilitate company to ensure long-term growth and sustainable business operation in
respective country.
3. Discuss typical barriers that will be faced as the organisation expand internationally
In order to expand business operations in Sweden there are number of barriers that
company can face in the process of internationalisation some of the areas are being discussed
below with the help of pest analysis of Sweden
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PEST Analysis of Marshfield bakery limited
Political:
There are number of government rules and responsibilities which is essential for business
organisation to abide (Andelekke and Gichuru, 2021).In addition to this it has been identified
that Sweden is a very safe country and politically stable that will benefit Marshmallow Bakery to
operate their business services in effective manner.
Economical:
Marshfield Bakery can get a number of economic benefits while expanding their business
in Sweden in terms of greater labour force participation and increase in public spending (Prescott
and Filatotchev, 2021).This will significantly help Marshfield Bakery to ensure successful
business.However, in this it is essential for company to be responsible implementing government
physical policies in order to have greater access to the capital market.Along with this Marshfield
Bakery is also required to implement labour market policies in order to operate the business
services in smooth manner.
Social:
As per this factor it has been identified that Sweden is very rich country and individual in
this nation enjoy and advanced welfare and good quality healthcare system (Iyamu and Isizah,
2021).There are a number of special days in which people of Sweden celebrate food.However, it
has been identified that in this country individual are now more concerned towards healthy life
cycle.This can create challenges in terms of Marshfield Bakery to provide low sugar and lets
carb products to gain their attention.
Technological:
Sweden is a technological advanced country in which government is mainly focused on
artificial intelligence (Zucchella, 2021).However, it has been identified that Sweden faces skill
shortage and, in this country, there is growing demand for individual with specialist IT
knowledge and skills such as system engineering and software development.This can create
challenge in front of Marshfield Bakery to hire employees to manage their business operations
technical way.
In addition to the above challenges, it has been identified that there are some other certain
talents that can affect Marshfield Bakery internationalisation process some of these are being
stated below:
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3.1. Language barrier
While engaging in international business language can act as a major barrier that can
affect business operations of a company (Boje and Rana, 2021).In this, it is essential for
Marshfield Bakery to make sure that employees are well aware with the native language of
country, as this will help them to communicate with customers in a smooth manner.
3.2. Cultural differences
Cultural differences can play a major role in terms of conducting business operations in
an effective manner (Gonzalez, 2021).In this, Marshfield Bakery can face issues in terms of
different taste of tradition, foods and norms that are followed by individual in country.In this it is
important for company to learn about the culture of individuals in this country in order to
perform their business operations in a seamless manner.
3.3. Foreign policies, politics and relations
After brexit there are number of changes in taxation and other policies which is essential
for companies in the provinces of United Kingdom to abide as to conduct their business
operations in other European countries (Tietze, 2021). In this foreign policies relations and other
laws can affect Marshfield Bakery to perform their business operation on international
platform.In thiscompany is required to have proper understanding of the impact of taxes, raw
material costs, labour laws, transportation infrastructure and other factors in order to conduct
their business operations in strategic manner.
3.4. Managing global teams
The different key barrier of world business enterprise that corporation might also
additionally faces is dealing with body of workers who lives the world over. When focusing to
perform as a set, this can be difficult to account for cultural differences, language boundaries,
time zones and changing technological degree get proper of access to. For times, for retaining
further to building a more potent paintings family members with their international crew,
organisation may additionally provide non-forestall take a look at ins, ideally using a video
conferencing platform so they'll engage into real time.
According to the research with the aid of Gallup, it is been regarded that frame of workers
who have non-stop test- ins with its administrative are 3 times much more likely to be involved
at work in comparison to employees who do not. In addition to this, at the same time as distance
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separate corporations, as this has for numerous at the time of corona virus (COVID-19)
pandemic, conversation is fundamental to assures all feels valued similarly to worried
Thus, according to the above-mentioned analysis it has been identified that these are some
certain forms of issues that company can face while expanding their business operations on
international platform (Maksimov and Luo, 2021).In this it is essential for Marshfield Bakery to
emphasize upon implementing strategies to overcome these issues as to ensure success in their
business expansion.
4. Evaluate a relevant implementation approach for internationalisation process for the specified
target market
In order to ensure success of internationalisation process it is essential for a company to
choose the market that presence the greater opportunity and lowest risk (Jin and Wang, 2021).In
this it is essential for organisation to implement effective approach for internationalisation
process for the specified target market.In this Marshfield Bakery can undertake advantage of
specific internationalisation approach.
4.1 Licensing:
It is defined as a method in which organisation give licence to other entity that allow
company to conduct their operations in the name of that respective organisation.It can duly serve
as an optimal strategy in case an enterprise intent to facilitate expansion of their business
operations at international platform (Koesoema and Septina, 2021).In respect to Marshfield
Bakery organisation can charge them royalty or fees for using the technique as well as brand.In
this approach two companies get included in a contract which include licensor and licensee.In
this former provide licence to other organisation while the latteris the company who procures
licence in order to conduct business operations.With the help of taking advantage of this
Marshfield Bakery can get the opportunity to gain active income and can further carry out
expansion with a new market.
4.2 Exporting:
This can be defined as a process in which company export or supplies their products and
services in a new market (Santoso, 2021).In terms of Marshfield Bakery in this method they are
required to offer their product in international market through which they can drive number of
benefits.In this company can gain benefits and can enhance their sales and market
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presence.However, there are some certain drawbacks of this method in terms of issues of export
legislation of different nation that can affect expansion process.
4.3. Build a joint venture with a company:
It includes making another identity in which both the starting partners take dynamic roles
in forming procedure and deciding (García-Cediel, 2021). It assists with sharing technologies
and lower the expenses of high dangers in different improvement projects. Joint Ventures make
firm to acquire financial matters of scale and extension in esteem including exercises a
worldwide premise. It makes a firm to duly secure down access to partners innovation and
aggregate learning measure which is utilized for more viable future rivalry in the business.
4.4. Franchising:
Franchisee buys the right to take business functions utilizing the franchiser's name or
brand name instead of any protected innovation (Melin, 2021). Many firms pick this method for
internationalizing as it sets up association's business in brief time frame with moderately minimal
direct speculation and makes worldwide image through standard showcasing approach. It permits
franchiser a high level of control and empowers to comprehend the localtaste as well as
preferences of international market segment.
According to the above discussion it has been identified that it is essential for organisation to
select effective approach for internationalisation in a new market.However, there are certain
barriers that can affect company internationalisation process (Hendriarto, 2021).According to the
above analysis it has been identified Marshfield Bakery can undertake advantage of franchising
in order to expand their business in Sweden, as with the help of this method company can assure
low failure rate and can have higher profitability.It also helps Marshfield Bakery to build- in
consumer base and ensure high rate of success with an ease to conduct business operations.This
method will also help Marshfield Bakery to understand the local tastes and preferences of
consumers in respective market segment that will significantly help them to develop a strong
consumer base (Callaci,2021).In this it is essential for organisation to make sure that they
implement effective internationalisation approach according to the needs and demands, in order
to maximize the chance of success of the internationalisation in new business market.
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CONCLUSION
According to the above-mentioned report it has been concluded that internationalisation is a
process that allow small scale business to measure high growth rate development opportunity
and ability to generate maximum revenue and profitability.Internationalisation also allow
organisation operating in small scale sector to improve organisation brand image and acquire
large number of consumers around the world. In this it is essential for company to undertake use
of effective internationalisation strategy while examining the challenges that can be faced by
them during the process.In this organisation can face challenges in terms of lack of proper
funding, cultural barriers etc.In this with the help of application of effective internationalisation
strategy organisation can assure success in international market segment.With the help of taking
advantage of comprehending the culture of new country and taking use of effective
internationalisation route organisation can overcome barriers such as marketing and financing.
This will allow company toassure success in establishing its business in international market
segment and can further ensure long-term sustainability.
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Online
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MARSHFIELD BAKERY LIMITED. 2021. [Online]. Available
throughhttps://www.dnb.com/business-directory/companyprofiles.marshfield_bakery_li
mited.454432f1842bea751b28bd231e08b146.html
Doing Business in Sweden. 2021. [Online]. Available
throughhttps://www.wolterskluwer.com/en/expert-insights/doing-business-in-sweden
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