International Business and Globalisation

This report discusses the impact of globalisation on international business, differences in decision making between international markets, and strategies for internationalisation. It includes a SWOT analysis of Congo and Bangladesh, and critical application of theories for practical problem-solving. The report focuses on Micro Focus, a British multinational IT and software company.

International Business and
Globalisation

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
The Impact of global trade globalisation.....................................................................................1
Differences of decision making between 2 international markets/countries...............................3
An analysis of the pattern of internationalisation taken by IB....................................................5
A critical application of theories used to formulate solutions to practical problems when
planning for different international markets................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Internationalisation refers to a product design in such a way which is ready to use by the
people in various countries (Benuyenah, 2021). This is a process which is taken into use by
organisations who are looking for expanding their business in other countries in order to increase
profits. It helps the firms in achieving their targets, growing, spread awareness across the globe
and many more. Through internationalisation many business organisations easily expand their
businesses in other countries which leads to increase in profit and high market share in the
marketplace. The managers of the enterprise have to do proper research of the market in which
they are planning to expand their business. As the current market trends and taste of the people is
very important while expanding it into other places. All the workforce in the company are
required to perform well while expanding as they are starting new business which need research
in depth of the place, product and the current market trend of that particular area.
For better understanding of the given topic Micro Focus is the company taken into consideration.
It is a British multinational information technology as well as software company which is based
in Newbury, Berkshire, England. It is public limited company which provides IT consulting
services, around 11000 active employees are working and founded in 1976
This report highlights the influence and importance of globalisation as well as global
trade. It also covers the demonstration of comparing international markets with reference to the
decision making of internal business. Critical evaluation and analysation of the design of
internationalisation which is managed by the international businesses. Application of relevant
theories, knowledge and tools in order to help in formulating alternatives to practical problems
while planning to expand the business.
MAIN BODY
The Impact of global trade globalisation
Globalisation promotes and speeds up the processes of exchange of goods, services,
money and technology across the world (Callaghan, 2021). Globalisation decreases the costs of
production and several other different operations prevailing in business firm. This facilitates the
firm like Micro Focus in cutting their costs of operation and establish them through a global
network channel. For this, this company is planning to expand its business into new markets of
Bangladesh and Congo. Several internationalisation drivers can be taken into consideration while
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formulating the strategies for expansion to reach global market for better opportunities of
business growth.
Internationalisation drivers
Internationalisation drivers can be known as factors that describes the need of a firm to
expand its market globally (Chang, 2019). Internationalisation drivers that have impacted Micro
Focus to expand their markets in Bangladesh and Congo is given below: Market relevant factors: Market relevant factors includes the quick analysis of market
forces such as customers. Customer is the king describing the success or failure of any
business organisation like Micro Focus. This company needs to keep in check the tastes
or preferences of the customer’s base in Bangladesh and Congo.
 Personal resources: Personal resources such as funds, staff or other assets that a
company has in abundance to expand its market globally (Thrift, 2020). Micro Focus has
enough resources in terms of sufficient funds and skilled personnel for its growth in the
global market of Bangladesh and Congo. Market competition: In order to cut the market competition or to get a competitive edge
in the market, companies like Micro Focus focuses on its global outreach to the
customers. To get a monopoly regarding a particular product or service or to reduce
competition, this company is growing its businesses in Bangladesh and Congo.
Strategies for entering into international markets
Businesses requires several strategies to operate through a global network channel for
reducing costs and generating more profit. Strategies for transforming the network of Micro
Focus from domestic market to international market is underneath: Choosing a right kind of Export: Choosing a right kind of export is essential factor for
the sake of business expansion. For growing its market across the domestic border, Micro
Focus needs to use direct channel of distribution via Congo and indirect channel via
Bangladesh due to their regional benefits. Foreign Direct Investment: FDI refers to the investment related to directly acquiring the
facilities held abroad. In this regard, Micro Focus may acquire an existing small tech
business to run its operations hassle free. This may benefit this firm to cut the cost related
to premises, technology and personnel.
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 Opting for a Joint Venture: Joint venture is associated with the contract based
partnership of two businesses for a certain period of time (Cherunilam, 2020). Here, the
two businesses club their resources to facilitate both businesses or assigned projects. In
this context, Micro Focus may prepare a contract with the several associated businesses
for running its operations efficiently or effectively.
 Adopting for licensing strategy: Licensing provides the companies such as Micro Focus
with the legal rights for using the property prevailing in the target country (Dörrenbächer
and Gammelgaard, 2019). Target country here is the one where a company is looking to
expand or enter into its market. For this, Micro Focus needs to pay a certain fee for using
the resources of a particularly chosen company.
Differences of decision making between 2 international markets/countries
Decision making is a step by step process which helps a manager of a company in
making more effective, relevant decisions by organising various information as well as
alternatives (Dwyer and Čavlek, 2019). All the enterprise is required to take decisions in context
to various operations applied in an entity. The managers of Micro Focus need to analyse the
external environment so that they do not face any issues while expanding the business into other
countries and also earn profits. With the help of PESTLE analysis managers of Micro Focus can
make strategies for the company which is needs to be follow by the employees of the firm. The
managers of Micro Focus are planning to expand their business in other countries like Congo and
Bangladesh. By performing PESTLE analysis of both the countries, the managers can take
decision in which to expand. PESTLE analysis of two countries with reference to Micro Focus is
discussed below:
PESTLE Analysis of Congo is discussed below:
Political: The political situation of Congo is not up to the mark as due to the democratic
republic of Congo is afraid of the terrorist attacks which is harmful for the people to stay in the
country. It is a threat for the managers of Micro Focus in expanding the business in Congo, so
local people will not come out to purchase the products.
Economical: Economic factor like high inflation rate which affects the people of Congo
in negative way as low purchasing power of customers results into less profit for the managers of
Micro Focus
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Social: Social factor of Congo involves education level in society which is on high phase
as people living in the country are well educated and interested in new market trend which is
helpful for the managers of Micro Focus.
Technological: The managers of Micro Focus use water based technology in the
company which helps IT industry the most as it gives opportunity to expand their business in
new places like Congo.
Legal: There are certain laws which is given by the government in Congo, managers of
Micro Focus have to perform proper research of the legal practices put in by them so that while
expanding they can keep in mind all the issues.
Environmental: For operating the business in Congo, managers of Micro Focus need to
use environment friendly ways in order to attract the local people of the country.
PESTLE Analysis of Bangladesh is given below:
Political: The political situation of Bangladesh in currently working on making better it
diplomatic ties which is beneficial for the managers of Micro Focus while expanding their
business in new place.
Economical: The current economic factor in Bangladesh is the foreign exchange rates of
the of the home country. Managers of Micro Focus can be benefited by the change in the country
as floating rates provides them with high purchasing power.
Social: The managers of Micro Focus are benefited by the social factor of Bangladesh
that is high population. This will help them in more buying of the products in the beginning
while expanding the business.
Technological: The technological environment of Bangladesh has the advance
technology of robotics in the country. This is beneficial for the managers of Micro Focus as they
can adopt the same technology at the time of expanding the business.
Legal: There are some rules, laws and regulations which is set by the government of
Bangladesh for the local people to follow. While expanding business, the managers of Micro
Focus can easily apply it at the time of expanding it into new place.
Environmental: As the population is increasing which leads to air pollution in the
environment of Bangladesh, this affects the managers of Micro Focus while expanding as it will
directly affect the health of an individual.
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An analysis of the pattern of internationalisation taken by IB
SWOT Analysis helps a business organisation to identify risk as well as benefits that may
arise in the business operations (Geodecki, 2020). It benefits the company in grabbing
opportunities in the market, lower the threats arise while expanding the business in Congo and
Bangladesh. The managers of Micro Focus may face some issues while expanding the business,
SWOT analysis is done for checking viability in context to Micro Focus is given below:
SWOT Analysis in context to Congo is mention below:
STRENGTHS The distribution network of Micro
Focus is strong which is beneficial for
them to operate in Congo. Good brand image and awareness of
Micro Focus will be benefited for them
while expanding in Congo.
WEAKNESSES
 They have less success outside the core
business which is weakness for them.
The organisation need high investment for
inventing modern technologies (Ratten, 2020).
OPPORTUNITIES
 The Micro Focus can grab the
opportunity of low inflation rate of
Congo. In the Congo market, less
transportation cost will be benefited to
the managers of Micro Focus.
THREATS
 High number of competitors can be a
threat for the managers of Micro Focus
in Congo.
 The rules and regulations of Congo
can affect the managers of Micro Focus
in negative way.
SWOT Analysis with reference to Bangladesh is underneath:
STRENGTHS
 The managers of Micro Focus consist
of reliable suppliers which can be
strength for them while expanding. For capturing new branch in
Bangladesh strong flow of cash will
WEAKNESSES
 The main weakness of entering the
market of Bangladesh is the traditional
technologies used by the company.
The research and development team has low
investment which is a limitation for them
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also help the businesses. (Perraton, 2019).
OPPORTUNITIES
 The current technological
advancement will be helpful for Micro
Focus managers. There is high freedom of political
trade in Bangladesh which is an
opportunity for Micro Focus team.
THREATS
 The high influence of pandemic also
increases threat of less suppliers in
Bangladesh.
 The change in behaviour of the
customers of Bangladesh can be a
threat for the managers of Micro Focus.
Focussing strengths and opportunities from the above table in order to analyse the viable
factors for Micro Focus
From the above SWOT analysis, threats and opportunities are identified in order
to penetrate Micro Focus in Congo as well as Bangladesh. These opportunities and threats are
mention below:
OPPORTUNITIES
 The managers of Micro Focus, have various opportunities to grab while introducing the
business in Congo such as less inflation rate and less transportation cost.
 Whereas in Bangladesh, the mangers of Micro Focus can take the benefit of advance
technology and also high freedom of political trade.
STRENGTHS
 In context to Congo, the managers of Micro Focus can enter the new international market
with strong distribution network and good brand image of the company. In relation with Bangladesh, with the strong flow of cash and reliable suppliers, the
managers of Micro Focus can be beneficial.
Advantages for focussing on the country with reference to Micro Focus
There are various benefits or advantages that can be grab by the managers of
Micro Focus while expanding the business in Bangladesh. It is a well-established country that
gives opportunity to the managers who are planning to expand their business in Bangladesh. The
managers of Micro Focus can easily start up with their operations in the country. As Bangladesh
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have strengths and opportunities which are beneficial for the managers in penetrating so this is
the country chosen for expanding their business.
A critical application of theories used to formulate solutions to practical problems when planning
for different international markets
Every business organisation requires various strategies while entering into new economies, they
need to do proper research of the country, current market trend, present technology and demand
of the local people (Hamilton and Webster, 2018). The managers of Micro Focus are planning to
enter new international market of Bangladesh in order to increase profit and improve brand
awards outside the country. While planning to expand their business the managers are facing
some problems so there are some strategies which can be used by them are as follows:
International strategy: This strategy is made by the managers of the company by making
use of the factors positioned on international level between several economies (MacKinnon and
Cumbers, 2018). The international strategy helps the business organisation in expanding their
business in other countries in order to earn more profits. The managers of Micro Focus can use
the international strategy as it will help them in analyzing their current position in the market.
And also this strategy provides firms with successful techniques which is useful for them while
expand the business in Bangladesh. The managers can also evaluate the current local market of
that place which will help them to be clear with the goals to achieve.
Localization Strategy: This strategy of localization helps the business organisations in
capturing the local market of the specific country where expansion is going to be done (Michie,
ed., 2019). Through this strategy the managers of company can easily take out information of
that particular place so that they can identify that it will be beneficial to them in future or not.
The managers of Micro Focus are planning to expand their business in Bangladesh, through
localization strategy they can identify the needs, taste, preferences, behaviour of the local people
in the global market. The managers can use this localization strategy as they only need to do
proper research on the market trend and the local people so that they can satisfy the people. This
leads to increase in profits of the company and they can even achieve the sustainable competitive
advantage in the market.
Global Strategy: This is the major strategy which is used by various business
organisations while expanding their businesses in other countries (Mallinson, 2021). As this
strategy helps the firm in covering international, standardisation as well as multinational
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strategies for the enterprise while expanding into other places. Across the global market the sales
of the company can be easily increased and also they organisations can compete with their
competitors in the market. The managers of Micro Focus are planning to expand their business in
Bangladesh so they can adopt the global strategy as it will be beneficial for them. It will help
them in increasing their revenue, sales and profits in the bringing only as demand low cost for
expanding any business.
Transitional Strategy: The transitional strategy involves high level of global integration
and local responsiveness in their operations (Nichkasova and Shmarlouskaya, 2020). Through
this strategy the local people of Bangladesh gets opportunity to get discounts, offerings and also
standardization practices implemented in proper way. The managers of Micro Focus can adopt
the following technique by making standardized products in regards to the global market.
The global strategy is the most effective which can be use by the managers of
Micro Focus as it will benefit then to increase their sales, brand awareness on global level and
also high market share. It also aids in creating new standardised products with regards to the
global market.
CONCLUSION
From the above report it is concluded that Internationalisation is used by various business
organisations in order to expand their business in different countries with low cost and high
profit. Globalisation helps the firms in lowering its production cost and also some other
operations happening in the business. Internalisation drivers are the key factors of the enterprise
while expanding into global markets which includes market relevant factors, personal resources
and market competition. The strategies involved in entering into new international markets are
choosing a right kind of export, foreign direct investment, opting for a joint venture and adopting
for licensing strategy. Decision making is an essential part of all the business organisations as it
helps them in taking right decisions for the company. The strategies which are required to adopt
by all the business organisations while expanding their businesses are international, localization,
global and transitional strategy.
The organisations should use the global strategy in their companies while expanding it
into international markets as it will help the managers to increase their sales, revenue, profits and
overall performance. As this strategy demands low cost from the firms who are planning to
expand their business in other countries. Expanding the business in Bangladesh is a good
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decision taken by the managers as the population is increasing which creates a strong customer
base segment for the managers of the enterprise.
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REFERENCES
Books and Journals:
Benuyenah, V., 2021. Conflict Barometer: An investigation into cross-cultural conflict and its
effect on performance. International Journal of Business and Globalisation.
Callaghan, C.W., 2021. Consequences of deindustrialisation for globalisation: Insights for
international business. International Business Review. 30(3). p.101804.
Chang, H. J., 2019. Kicking away the ladder–globalisation and economic development in
historical perspective. In The Handbook of Globalisation, Third Edition (pp. 392-399).
Edward Elgar Publishing.
Cherunilam, F., 2020. International business. PHI Learning Pvt. Ltd..
Dörrenbächer, C. and Gammelgaard, J., 2019. Critical and mainstream international business
research: Making critical IB an integral part of a societally engaged international
business discipline. critical perspectives on international business.
Dwyer, L. and Čavlek, N., 2019. Economic globalisation and tourism. In Handbook of
globalisation and tourism. Edward Elgar Publishing.
Geodecki, T., 2020. 2 Globalisation trends in the service industries. Outsourcing in European
Emerging Economies: Territorial Embeddedness and Global Business Services, p.12.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
MacKinnon, D. and Cumbers, A., 2018. An introduction to economic geography: Globalisation,
uneven development and place. Routledge.
Mallinson, W., 2021. The Effects of Globalisation. In Guicciardini, Geopolitics and
Geohistory (pp. 99-118). Palgrave Macmillan, Cham.
Michie, J. ed., 2019. The handbook of globalisation. Edward Elgar Publishing.
Nichkasova, Y. and Shmarlouskaya, H., 2020. Financial technologies as a driving force for
business model transformation in the banking sector. International Journal of Business
and Globalisation. 25(4). pp.419-447.
Perraton, J., 2019. The scope and implications of globalisation. In The Handbook of
Globalisation, Third Edition. Edward Elgar Publishing.
Ratten, V., 2020. Entrepreneurial ecosystems. Thunderbird International Business Review. 62(5).
pp.447-455.
Thrift, N., 2020. Virtual capitalism: the globalisation of reflexive business knowledge.
In Virtualism (pp. 161-186). Routledge.
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