International Business: Country Selection and Entry Strategies for Hayward Tyler

This report discusses the internationalization process of Hayward Tyler, a UK-based corporation that trades in pumps and electric cars. It includes a country selection model, analysis of entry strategies, barriers faced by the organization, and relevant implementation approaches.

International Business

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Brief overview of the chosen organisation and its internationalisation.................................1
Country selection....................................................................................................................3
Theory/models related to the process of international market selection and entry strategies 3
Barriers faced by the organisation to expand internationally.................................................6
Relevant implementation approach for the internationalisation process for the specified target
market.....................................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
International business essentially entails the alternate of capital, items, offerings and
knowledge that exists globally across national borders. This consists of the trade of services and
items among two or more nations (Vrontis and et. al., 2020). The corporation selected for this
file is Hayward Tyler, which trades in pumps and electric cars for the carrier, layout and
manufacture of critical electric cars. This report opinions the initial approach and hyperlinks it to
the version. Includes a test model of country choice, an evaluation of the three countries, and in
addition tips when it comes to United States selection. This includes political dangers affecting
ethics, lifestyle, corruption and the prison device. In addition, it includes numerous frameworks,
Porter's 5 Forces analysis and PESTLE evaluation. It consists of various input modes to that may
be used by the business enterprise for its internationalization method better understand.
MAIN BODY
Brief overview of the chosen organisation and its internationalisation
Hayward Tyler is a united kingdom-based corporation based in 1815, headquartered in
Luton, United Kingdom. The enterprise operates in worldwide markets which include the USA,
China and India. It operates in the globalise energy sector. The corporation also function and
manufacture liquid-filled electric powered motors and pumps inside the power sector. The
investment of Hayward Tyler closely isn't always most effective in R & D, however additionally
within the education and development sector. We also are investing tens of millions of kilos in an
enterprise unit with machinery appears and curves. Hayward Tyler gives modern answers for
huge pumps and vehicles operating inside the most complex and annoying systems, consisting of
excessive pressure generation, high temperatures and difficult fluids to handle.
Its products are supported through a team of product design engineers and carrier
specialists around the arena who are dedicated to offering customers with the best exceptional
service and technical assist. The organization is operating hard to provide the shortest viable lead
instances to refocus overall performance (Bell and Cooper, 2018). The corporation is expanding
its enterprise across the globe because of its global competitiveness, which has been the driving
force behind its overseas commercial enterprise. the primary elements at the back of Hayward
Tyler's overseas trade activities are indexed below.
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 Increasing Demand: With increasing service, product availability, and purchaser demand
in the global market, there are numerous growth opportunities within the international
marketplace (Frasquet et al., 2018). Governments round the world's free trade guidelines
to promote commercial enterprise, communities and lifestyle internationally have
dramatically expanded the number of clients around the globe. Because of the lack of
availability of positive products in sure regions, Hayward Tyler has observed methods to
boom its presence in extraordinary countries round the arena.
 Price Changes: The value of merchandise in single vicinity can be higher than the cost of
merchandise in some other vicinity because of the unfair distribution of uncooked
substances. Consequently, overseas businesses are given the possibility to amplify into
other components of the global marketplace (Silva, Styles and Lages, 2017). Availability
of raw substances, reasonably-priced hard work, and many others factors could help
organizations make extra income within the worldwide marketplace. This is why groups
round the globe are transferring and expanding.
 Increasing Competition: There are numerous competitors in these types of
manufacturing and service industry, and advanced international locations just like the
United Kingdom offer few possibilities for companies like Hayward to generate better
income. Businesses look ahead to international boom to avoid competition in the home
marketplace and are trying to find international opportunities. Global increase gives
excessive boom opportunities because of much less competition. The use of system gear
is possibly to be expected in growing nations, increasing boom possibilities on this
market (Schubert and et al).
 Globalisation: Political legal turmoil is affecting the increase of companies around the
globe and is a primary indicator of corporate growth on the worldwide arena. Changes in
border policies over the last decade have made it simpler for governments around the
globe to amplify their commercial enterprise abroad. GAAT in 1947 and the arena
alternate business enterprise (WTO) in 1995 reinforced the boom of businesses in the
global market via providing better guidelines and favourable possibilities for agencies to
grow internationally.
 Technological Advancement: Rapid technological trade has come to be one of the key
factors of globalization and connects societies round the globe. People sitting in the
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corner of the globe can order merchandise in one region with a single click on their
phone. With the speedy advances in era and the invention of the internet over the last
decade, it has boosted the global buying and selling technique. Speedy changes have
pressured Hayward Tyler to amplify his commercial enterprise them to expand
throughout the globe.
Country selection
Within the United States there is a lot of opportunity for the organisation Hayward Tyler to
increase its manufacturing activities due to the craze of mortar vehicles and customised vehicles.
The country selected for the international expansion of the Hayward Tyler is the USA that could
provide greater opportunities to raise large number of customers. The scan model essentially
involves the technique of environmental scanning. This consists of the use and possession of
facts about relationships, activities, traits, and styles within the corporation's external and inner
surroundings. within the context of United States of America choice, it is basically about the
form of active global control that essentially measures contributions to various overall
performance attributes and invests within the international's higher appearing inventory markets.
When it comes to the selection of United States, the analysis involves various risks inclusive of
ethics, corruption, criminal system and subculture.
Theory/models related to the process of international market selection and entry strategies
The analysis of international market could be done with the help of following frameworks
which involves:
Porter Five Forces
It’s basically a strategic management tool designed to recognize and analyse the enterprise
and the underlying profitability equipment of the enterprise. In reference to Hayward Tyler, the
organisation's managers use Porter's five Forces evaluation to understand the 5 competitiveness
that impact profitability, with competitive advantage and long-term profitability inside the
services and commercial services and commodities sectors. Develop a strategy to enhance
intercourse (Kourula, Pisani and Kolk, 2017). Within the context of Porter's 5 Forces, it is largely
an overall strategic framework that facilitates organizations make strategic decisions to research
their current competition. This framework helps build a sustainable competitive benefit within
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the services and commodities enterprise. With respect to the Hayward Tyler organization,
organizational managers not only use it to construct a strategic position for business services or
commodities, but additionally help explore beneficial opportunities throughout the industrial
sector.
 Threats of new entrants: When it comes to the organization, new additions to the
business enterprise introduce new methods and improvements, positioned strain at the
Hayward Tyler group percent, convey new price propositions to consumers, decrease
pricing techniques and decrease prices that could be beneficial for the organization
(Hannibal and Knight, 2018). in the context of an organisation, businesses can counter
the chance of recent market entrants with the assist of progressive new products and
services. This is because it leads to the acquisition of new clients.
 Bargaining Power of suppliers: In the context of businesses engaged in industrial
services and commodities, the primary awareness is to purchase raw materials from
numerous suppliers. Within the context of an organization, a dominant dealer can lessen
the company's margins that may be earned within the marketplace. It helps to construct an
efficient supply chain with more than one provider and broaden devoted providers when
it comes to businesses that have interaction in provider bargaining strength. Bargaining Power of Buyers: In relation to companies, buyers are very stressful and
need to shop for the first-class deals available at cheap costs, further squeezing long-term
profitability. It’s very critical for an enterprise to have a much more potent consumer base
and to offer robust offers and discounts. In the context of a business enterprise, a business
enterprise can cope with consumers' bargaining strength through constructing a huge
consumer base, lowering buyers' bargaining power, and offering opportunities to
streamline production and income procedures.
 Threat of Substitute products or services: Within the context of products and services,
meeting consumer wishes in distinct ways is very vital and the industry is struggling with
profitability (Bell and Cooper, 2018). In fighting service and product threats, it's far
crucial to increase purchaser switching prices, be service-oriented, and understand the
core wishes of consumers. Rivalry among the existing competitors: In the context of a company, competition
among current players inside the industry may be very fierce, leading to reduced
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profitability within the enterprise. In the context of Hayward Tyler, the corporation
operates in a noticeably competitive offerings or commodities industry. In terms of the
company, organizations can compete towards opposition by constructing size and
sustainable differentiation, and can enhance collaboration with competition to develop the
market. By means of studying all 5 competitiveness, it can be apprehended that the effect
on business profitability, identify trends that alternate the game, respond to new
opportunities, understand models, and managers in these designs.
Pestle Analysis
It is basically a strategic tool that helps to research the employer's macro environment
elements. This framework basically represents the political, monetary, social, technical,
environmental, and felony elements which have a great effect on a business enterprise's macro
environment (Ryan and et. al., 2021). Adjustments in macro-environmental factors have a big
effect on the company, but also on different competitors in the enterprise and various products
developed by these competitors. Macro environmental elements essentially affect the five powers
that assist to form an aggressive landscape of the Hayward Tyler.
 Political Factors: In relation to political factors, it performs an vital function in
determining factors which have a sizable effect at the lengthy-time period viability of a
particular marketplace or country. Numerous political elements encompass trade
restriction, degrees of corruption, chance of military aggression, safety of intellectual
property, and various other factors.
 Economic Factors: Essentially, it carries various factors for consolidating funding and
demand within the economy, together with interest prices, inflation rate, business cycle,
savings rate, business cycle, and so on (Frasquet and et. al., 2018). Different factors,
consisting of inflation and competitive requirements, have a widespread effect on an
agency's competitive benefit.
 Social Factors: In the context of an organization, the work and subculture of a employer
has a substantial effect at the organization's environment in terms of population,
demographics, attitudes, and a spread of different factors.
 Technology Factors: This is basically a technology concept that modifications swiftly
and has a great impact at the employer. These consist of elements including the price of
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technology adoption, latest technology improvement, and the impact of technology on
product transport.
 Environmental Factors: Environmental elements: distinctive markets have one of a kind
standards and requirements that have a huge effect on the employer's profits (Byram,
2019). Various factors consist of attitudes, weather alternate, law, recycling, and lots of
other factors.
 Legal Factors: In many nations, legal frameworks and establishments are not sturdy
enough to defend a business enterprise's intellectual belongings rights. Numerous legal
elements include records protection, labour regulation, and fitness and health regulation.
Barriers faced by the organisation to expand internationally
Expanding business at international level is imperative to earn higher amount of profit. But
the companies have to face ample of issues while expanding operations at international level. In
context of Hayward Tyler, they are expanding business in USA. The major barriers faced by the
company during expansion are mentioned below:
Legal requirements: Legal requirements of every country are not similar. Here, the norms
are different within different countries. While expanding business within another country, there
is requirement to follow the legal requirements (Cherunilam, 2020) . For this purpose, the
company needs to make changes in their rules & regulations. Here, they need structure new rules
and make modifications in existing ones in order to survive within the country for longer
duration. These legal requirements create barriers for the organization to sustain within an
international business environment.
Language barriers: During internationalization of business, it is imperative to understand
the difference in language. It is stated that different languages are used within different countries.
In this situation, it is quite difficult to maintain proper interaction with customers. Apart from
this, the company also face issue in translating the message well. For this purpose, they need to
hire native people or consultants which sometimes enhance the overall cost. In context of
Hyward Tyler, they will also face the issues related to language barrier while expanding business
within different country.
Cultural differences: Each country has its own languages, culture, rituals and more.
Culture is the combination of foods, rituals, tradition and more. It is important to encourage the
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people to learn the culture of respective country where they are doing the business. When
managing an international business, it is often seen that individuals take time to understand the
culture of different countries (Buckley, Enderwick and Cross eds., 2018). In the given context,
the respective company is going to expand their business in USA. Here, culture of USA is not
same as their home country hence the individuals will face the issues in terms of adjusting within
the culture of new country in an efficient manner.
Managing global teams: The another significant challenge of international business is
managing individuals who are living at different parts of the world. When working as a team, it
is quite difficult to account for language barriers, time zones, varying levels of technology access
and more. In order to maintain effective relations with global teams, there is requirement to
facilitate regular check-ins, using video conferencing and more. In context of the selected
company, they are going to face the issue related to managing the teams of different individuals
within international environment. This will create issues in terms of running business efficiently
at market place.
Relevant implementation approach for the internationalisation process for the specified target
market
While entering into international market place, a particular process is used by the company
which is mentioned below:
Domestic market establishment: This is the first step of internationalization process
where the business owner needs to establish the domestic market. Here, it is important to arrange
necessary equipments, tools and more so that the business can run effectively within domestic
market place (Liu, 2022).
Export research and planning: When companies determine to trade abroad, they often
search for countries similar to their language, legal and economic system, culture and more.
Through research regarding the international market, potential problems and weaknesses need to
identify.
Initial export sale: During the implementation of an export plan, it is recommendable to
test the market. Here, it is required to stay familiar with initial shipment before starting the
exporting.
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Expansion of international sales: On getting the good initial sales, the next step is to
plan the further expansion. This stage is accompanies with market research.
Investment abroad: On getting higher sales with expansion, the respective business entity
needs to enhance their presence within more countries. However, it includes more
responsibilities than operating merely at domestic market.
Internationalization approaches:
Looking at the target market of the respective company, there is requirement to choose a
suitable method of expansion. In this context, different methods of international expansion are
mentioned below:
Exporting:Exporting is the highly used method of internationalization. In this, the
respective company will sell its products to customers directly. It is basically a long-term
commitment towards the foreign markets. Here, the firm can also chose distributors or local
agents to sell their products at international market (Chi, and et. al., 2019).
Licensing: It is a way where permission is granted by the licensor to licensee. Here, licensee
buys the right to use the technology or brand name of licensor. In this condition, the licensor is
benefitted from the local knowledge and distribution channel. This types of agreement are
generally used in R & D industry. In context of the respective company, they can use the
respective method in order to enter into foreign market.
Franchising: Here, franchisor gets the right to perform the business activities. Ample of
firms are likely to use franchising in terms of entering into international market place. In
reference of the respective company, they can use franchising to enter into foreign market.
In context of the target market, Hyward Tyler they can use franchising in order to enter into
international market place.
CONCLUSION
From the above report, it has been concluded that international business plays a very
essential position in the company. This record reviews the preliminary strategy of the
organization for entering international market and links it to the model. Moreover, it consists of a
experiment version of united states of America chosen, for evaluation of internationalization, and
in addition recommendations in relation to USA selection. This consists of political risks
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affecting ethics, tradition, corruption and the legal aspects of internationalization. Further, it
includes diverse frameworks for Porter's five Forces and PESTLE evaluation. It consists of
numerous entering modes into the international market to help the organization to apprehend
successfully.
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REFERENCES
Books and Journals
Aguilera, R.V. and Grøgaard, B., 2019. The dubious role of institutions in international business:
A road forward. Journal of International Business Studies, 50(1), pp.20-35.
Bell, V. A. and Cooper, S. Y., 2018. Institutional knowledge: Acquisition, assimilation and
exploitation in internationalisation. International Marketing Review.
Buckley, P.J., Enderwick, P. and Cross, A.R. eds., 2018. International business. Oxford
University Press.
Byram, M., 2019. An internationalist perspective on internationalisation. In Educational
Approaches to Internationalization through Intercultural Dialogue (pp. 15-26).
Routledge.
Cherunilam, F., 2020. International business. PHI Learning Pvt. Ltd..
Chi, T., and et. al., 2019. Real options theory in international business. Journal of International
Business Studies, 50(4), pp.525-553.
Frasquet, M. and et. al., 2018. Integrating embeddedness with dynamic capabilities in the
internationalisation of fashion retailers. International Business Review, 27(4). pp.904-
914.
Hannibal, M. and Knight, G., 2018. Additive manufacturing and the global factory: Disruptive
technologies and the location of international business. International Business
Review, 27(6), pp.1116-1127.
Kourula, A., Pisani, N. and Kolk, A., 2017. Corporate sustainability and inclusive development:
Highlights from international business and management research. Current opinion in
environmental sustainability, 24, pp.14-18.
Liu, J. M., 2022. Diasporic placemaking: the internationalisation of a migrant hometown in post-
socialist China. Journal of Ethnic and Migration Studies, 48(1). pp.209-227.
Ryan, D and et. al., 2021. Communities of practice as a solution for the implementation gap in
internationalisation of the curriculum. Higher Education Research & Development. pp.1-
16.
Schubert, T. and et. al., 2018. Firm capabilities, technological dynamism and the
internationalisation of innovation: A behavioural approach. Journal of International
Business Studies, 49(1)..pp.70-95.
Silva, G.M., Styles, C. and Lages, L.F., 2017. Breakthrough innovation in international business:
The impact of tech-innovation and market-innovation on performance. International
Business Review, 26(2), pp.391-404.
Vrontis and et. al., 2020. Cause-related marketing in international business: what works and what
does not?. International Marketing Review.
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