International Business Management: Entry Modes and Strategies for Hayward Tyler in Germany

This report discusses the elements of international business management and evaluates the current international strategy of Hayward Tyler. It recommends Germany as a potential market for the company and discusses entry modes such as direct exporting and FDI. The report also includes PESTEL and SWOT analysis and provides recommendations for the company.

International Business
Management

Executive Summary
The mentioned report highlights the elements of international business management.
Moreover, various attributes has been discussed in the report in regard to addressing the new
market. Moreover, the report also addressed the strategies of the organisation as well as also
highlighted the entry modes such as direct exporting and FDI. FDI has been concluded for the
respected firm in order to enter in the Germany.

Table of Contents
Executive Summary .......................................................................................................................2
Introduction......................................................................................................................................4
Main Body.......................................................................................................................................4
Overview of the company......................................................................................................4
Entry modes............................................................................................................................5
International trade...................................................................................................................6
Country of choice...................................................................................................................7
Entry modes............................................................................................................................7
PESTEL..................................................................................................................................8
SWOT.....................................................................................................................................9
Porters five forces analysis...................................................................................................10
Recommendation..................................................................................................................11
Conclusion.....................................................................................................................................12
References .....................................................................................................................................13

Introduction
International business management determines the process which is adopts by the
companies in order to manage their business operations in more than one country. To serve in the
international market, organisations requires detail information and skills to perform efficiently in
a specific market. In instance, the legal and financial environment, competitive condition as well
as company capability to cater the across border market are some of the factors which addressed
by firms before entering in the new market. In regard to the above discussion the respected report
will evaluate the various attributes in context of respected organisation which is HAYWARD
TYLER(LUTON).
The Hayward Tyler manufacture and services the performance critical electric motors
and pumps to delivers the high quality of services to their potential customer around the globe.
The respected company was established in 1815 with the headquarter in Luton, Bedfordshire and
performing their functions in the international market (Aguilera, and Grøgaard, 2019). In
addition to this the respected report will evaluate the current intentional strategy of the respected
company as well as also recommend the new potential market in which company can establish
their operational functions more effectively. In order to backed up the recommendation an
optimal entry mode will evaluate as well as various model will be discussed in the context of
new potential market.
Main Body
Review of literature
Overview of the company
The Hayward Tyler is one of the leading firm in the industrial pumps and motors with the
heritage of over 2000 year in the respective field. The respected company offers the long
durability pumps which indulged with innovative design and engineering. It pump can be found
in energy sector with around 2300 BCPs as well as 600 nuclear pump approximately were
established globally in power plants. In instance the mentioned organisation has their global
footprints in USA(Michigan, Vermont), UK(Glasgow, Luton), India (Delhi), china (Kunshan).
Range of products which offers by the firm are performance critical pumps and motors, nuclear
pumps, positive displacement pumps, Canned motor pumps. Moreover, the respected
organisation also offers the efficient services to their potential customer such as repair service,

field service, asset management, spare parts, and upgrades as well as remoter condition
monitoring. In addition to this various industries has acquired by the mentioned company which
is nuclear, clean energy and water, power industry, chemical refinement and processing etc.
around 316 employees are working across the three continents. Hence, all of the above
information clearly stated that the mentioned organisation developed the effective business plan
through which they catered the various region for their wide range of products (OUR company,
2022).
Entry modes
There are number of modes through which companies can establish their operational
functions in the international market. By selling the product in the international market provides
the opportunity to cater the new market, increase the sales, gain brand recognition, as well as
decreases the threat of operating in a one region. Hence, in order to develop the effective
roadmap in the international market, an organisation can adopt the various modes which will be
further discussed in the mentioned report (Buckley, 2019).
Direct Exporting is the process in which an organisation can sell their product
directly in the other country. The mentioned practice is determine as one of the effective method
in approaching the new market with a lower risk. One of the major advantage of adopting the
mentioned strategy is there is no need of deploying the investment in establishing the production
line in a chosen country. All the products can be produced from the home country and can
deliver to the chosen region through the determined supply chain management. One of the major
disadvantage of the mentioned practice is the high transportation cost which deployed due to
tariff charges of a particular region. Hence, it can increase the product cost for a specific region
as well as can affect the marketing strategy. In order to form the bridge of export an organisation
need to involve the three parties: an importer, government of a specific country,and a efficient
transport provider (How to enter a foreign Market, 2022).
According to Lisa Forrest, (2022) Strategic acquisition is the practice in which an
organisation acquires a controlling interest in a overseas firm. By choosing the similar firm to the
business operations an organisation can easily perform the effective functions in the overseas
market. Through such functions an organisation can retain the existing management of acquired
company. It is considered as one of the fastest mode of entry in a new market. In addition to this
company can use the existing infrastructure as well as can take the benefits of existing market

share. Therefore, by the mentioned practice an firm can enhance their international business
operations on large scale more effectively (Strategic Acquisition: A Good Choice for Growth,
2022).
According to the Gordon Scott, (2021) foreign direct investment is the process in which
an business or individual directly invest in the foreign market. These investment can be in the
form Whether buying share of existing firm in the foreign market or by establishing the new
business venture. In addition to this it requires the huge capital to fulfil the operational
requirement such as cost of staff, premises and infrastructure(Foreign Direct Investment (FDI),
2021).
International trade
According to Bruna Martinuzzi, (2018). International trade determines the exchange of
goods between the economies. It assist the companies in enhancing the business operations by
entering in the new market. One of the major advantage of international trade is an organisation
can form the new customer base for their organisation functions which ultimately assist them
into increase their revenue. It opens the new pathways which can be adopted in evolving the
business operations. Moreover, by choosing the least competitive region can also assist the
organisation to establish the strong brand image as well as perform the functions with the huge
crowed market. International trade also increase the lifespan of product, there are times when
sale of particular product could dip in a specific market. But by acquiring the overseas market
can built the opportunity of sales. In regard to this, the mentioned organisation already have their
operational functions in the three continents. Hence, it support the respected organisation to cater
the large number of customer as well as better cash flow management in their operational
functions (What Are the Advantages of International Trade, 2018). in the context of the above
discussion in order to eliminate the possible threat such as cultural differences, stakeholders
complexities the respected firm deployed the effective growth planning for its each region to
maximise efficiency, boosting profitability. Through, creating the virtual dynamic factory
company form the insight predictive simulation by which effective plans were developed in a
less span of time. By the virtual plan company got to know what need to be adopt in future to
deliver the effective product in the operational market Through which customers demand and
profit can be maximise globally (Hayward Tyler Develop growth plan with Predictive
simulation, 2022).

Country of choice
The respected company is already have the strong brand in the global market. Hence, the
respected organisation can enhance their business operations in the new region. According to the
market stats and size of the market Germany is one of the suitable country for expanding the
business operation.
Illustration 1: Europe Electric Motor Market Outlook - 2022
From the illustration of the above graphical representation it is clearly stated that
Germany cater the one of the largest market share within the Europe in electric motors and
pumps which is around 3.6% CAGR. Hence, there is a huge demand over their for such specific
product. Hence, by addressing the respected market the mentioned company can get the benefits
in building the new relationship, higher revenue etc.
Entry modes
FDI- In order to entering the above mentioned market the respected organisation can adopt the
foreign direct investment mode in order to establish effective operational functions. Before
addressing the mentioned region the organisation need adhere the various traits such as

government norms which regulates on the foreign companies. According to the foreign tax act
1972, 15% tax is levied on the corporate income. One of the biggest advantage which is offering
by the mentioned government is that it is a flat tax rate (Cherunilam, 2020). Hence, company
does not need to overlook over their higher revenue. Moreover, the mentioned organisation also
offers the subsidiaries to foreign companies of around 25% withholding tax on dividends.
Therefore , company can adopt the mentioned entry mode channel through which they can
establish their new plant. Moreover, through the effective marketing strategy and predictive
simulation plan company can address the major requirements more efficiently which could be
further used in attracting the stakeholders (Buckley, and et. al., 2018).
PESTEL
 Political- One of the biggest challenges which faced by the businesses in performing the
operational function in Germany is regard to the taxes. While the mentioned government
offers the various tax incentives, but the laws which enforced by the government is
complicated. Businesses in Germany need to makes nine tax payment in a financial year
which consume almost 218 hour on an average (Chi, and et. al., 2019). Moreover,
registering property in the mentioned nation is an another big task as it requires the high
documentation such as land registry , pre-emption rights as well as notarize of transfer
agreement.
 Economic- Germany has the largest consumer market in the European union with the
population of 84. 4 million. The geographic location is at the centre in the Europe which
can gives an advantage to the mentioned company in order to expand its operations to
other European countries. In addition to this the mentioned region have an stable trading
economies which offers the developed economic framework (Collinson, and et. al., 2020.
 Social- The mentioned country has the high living standards and literacy rate. In instance
due to high high per capita income the respected organisation can face the high
operational cost. Moreover, the unemployment rate is low which can impact the business
operations in order to recruit the ideal candidate for the company functions.
 Technology- Germany is hub of innovation and technology advancement. Hence, by
establishing the operational functions in the mentioned region can benefits the respected
organisation in order to enhance their business functions by developing their techniques.

It could help in decreasing the operational thorough advancement of cost effective
techniques (Dörrenbächer, and Gammelgaard, 2019).
 Environment- The respected government deployed the various number of environmental
policies in its country to saving the environment. By the implication of these polices the
government is aiming to decreases the emulsion from the environment. Hence, the
mentioned company need to improvise their technologies in order to reduce the carbon
emulsion from their factories. Hence any breaches in the laws can cause the lawsuit to the
company operations as well as hefty fines could be implemented.
 Legal- Government of Germany enforced the laws and regulation on the operating
companies in the mentioned region. In instance minimum wages law, maximum working
hours law, employee discrimination law, CSR policies, employee rights law etc. hence , it
is compulsory to follow all these laws efficiently. Hence, violation of laws can impact the
business operations (Guercini,and Milanesi, 2020).
SWOT
Strength
 High level of customer satisfaction-
The respected company has the high
customer satisfaction rate with their
effective operational activity such as
desired product according to the
customer need, efficient after sale
services form the loyal customer base
which makes the strong brand image
(Hamilton, and Webster, 2018).
 Innovation- by the effective innovative
approaches the respected organisation
build the innovative product portfolio
which can easily attracts the customer
even in the new operational market
(Hooper, and Holtbrügge, 2020).
Weaknesses
 financial planning- the current assets
ratio and liquid ratio is not appropriate
according to the company functions.
Hence, the respected organisation need
to develop the strategic financial
planning in their operational functions
for addressing the business activities
even more effectively.
 Organisation structure- The
mentioned organisation follows the
hierarchy organization structure which
increases the decision making time.
Hence, any decision which need to be
addressed rapidly cannot be possible
due to structure.

Opportunity
 opening up of new market- Due to the
globalisation and governments flexible
agreements, the respected company has
the opportunity to expand their business
operations more efficiently in the
global market. Hence, by focusing on
Germany the respected company can
establish their plant over there by the
support of government laws.
 stable cash flow- The respected
organisation has the stable cash flow.
Hence, by the free flow of cash the
mentioned company have the
opportunity to adopt the new
technology according to their business
requirement. Moreover, the
advancement of technology can assist
the company in order to decrease the
operational cost which further could be
beneficial in catering the target market
through cost leadership (Jones, 2022).
Threat
 Intense competition- The economic
region in which company is planning to
perform their functions is highly
competitive. Moreover, these
competitors already has the established
market share. Hence, the respected
organisation can face the issues in
establishing their brand image in the
Germany(Hult, and et. al., 2020).
 New environmental regulation- The
government of UK form the effective
polices regard to the environment.
Hence, the mentioned company does
not have the adaptive technology which
can reduce the industrial waste from
their operational functions. Therefore ,
they need to be innovate their
techniques in order to eliminate such
threat.
Porters five forces analysis
 Competition in the industry (Moderate)- The respected company is planning to
Perform their operational functions in the Germany which is already is a highly
competitive market. WOMA, EUBA, ACTIRO are one of the leading brand in the
mentioned region. Various business and marketing strategies has been adopted by them
in order to cater the market. Moreover, these brands also have the high financial support

by their stakeholders as well as have effective supply chain management. Hence, such
functions clearly derives the moderate power of the competitor (Kolk, Rivera-Santos,
and Rufín, 2018).
 Potential of new entrants into the industry (Low)- The business industry in which
company performing their function need high investment as well as need to fulfil the
various number of requirement which could be work as barrier for the new entrants.
Hence, the mentioned company does not need to focus on the above mentioned factor.
 Power of supplier (Moderate)- In order to develop the quality of electric motor and
pumps company rely on their suppliers. Company needs various raw material in
developing the finish goods such as metal, copper wire, electronic chips etc. moreover,
the number of supplier in the Germany are low on strength which provides the quality of
products (Mäkelä, and Kinnunen, 2018). Hence, the mentioned organisation cannot
which to other supplier as it could be costly as well as could impact the business
functions. Therefore, supplier have the power to fluctuate the prices in the mentioned
industry.
 Power of customer (moderate)- The mentioned region has the large number customer
base for the above mentioned product. In regard to this, company can easily built the new
customer base with the low acquisition cost. Hence, such factor shows the low power of
customers (Reshetnikova, and et. al., 2018). Therefore, these individuals not have power
to deicide the product price in the operational market.
 Threat of substitute product (Moderate)- By performing in the above mentioned
market the mentioned company can face the threat of substitute product in the operational
market. As it is highlighted in the above discussion, that there are large number of
competitors which already providing the same product portfolio which company already
have, in addition to this the mentioned company is not in the condition to attain the
market position of monopoly due to the threat of substitute product (Shenkar,and et. al.,
2020).

Recommendation
From the analysis of above discussion below are the some recommendations which can
be used in developing the effective business planning. Hence, it can facilitate the organisation to
perform in the international market more effectively.
 Adaption of sustainable technology- The mentioned company need to enhance their
technology which can assist them in decreasing the pollution from their operational
functions. In regard to this it can facilitate them in addressing the environmental policies
of the above mentioned region. Moreover, by the advancement of technology company
can lower down their operational cost which further can be used in catering the market
more efficiently. By such function company can reduce the manufacturing time as well as
cost which could be beneficial in rapid manufacturing of products. By such practice an
effective strategic marketing can be form in regard establishing the brand image in the
potential market (Srivastava, Singh, and Dhir, 2020).
 Innovation in the product- The respected organisation need to invest on their research
and development department in order to analyse the market need more efficiently. By
getting these insights the mentioned firm can develop the new and effective product for
acquiring the new market. By the innovative product vast number of customer can be
attracted as well as can also manipulate the customers of competitors. Hence, it can help
the organisation in boosting the sales which ultimately helps in enhancing the revenue
(Zhaoand et. al., 2018).
Conclusion
From the analysis of above discussion it is concluded that international business
management plays a vital role in operating the business functions more efficiently in the new
market. In regard to this various entry modes has been discussed in the above discussion such as
direct exporting, strategic acquisition and FDI. From all these modes one of the effective mode
has purposed in the context of the company functions. In order to evaluate the internal and
external factors of the mentioned company in the new purposed region, various models were
addressed in order to evaluate the market scenarios more efficiently. At last, various
recommendation has been deployed such as adoption of innovative product, adoption of
sustainable technology in order to perform efficient functions in the operational market.

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Online
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