International Business Management: Expansion Strategies for Hayward Tyler

This report discusses the expansion strategies for Hayward Tyler, a UK-based organisation that deals in offering full-service pumps and motor repairing. It includes a discussion on initial strategy and its linkage with a model, selection of countries for expansion, and different modes of entry. The report also provides recommendations for the company. The chosen country for expansion is the United States. The report uses models like Ansoff Matrix, 3/2 Scanning, PESTLE Analysis, and Porter's Five Forces to analyze the market and competition.

International business
management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
TASK 1............................................................................................................................................3
Discussion of initial strategy and its linkage to a model.............................................................3
TASK 2............................................................................................................................................5
Selection of country through using different models and frameworks along with the
justification..................................................................................................................................5
TASK 3............................................................................................................................................8
Different Modes of Entry and Recommendation.........................................................................8
Recommendations:....................................................................................................................10
CONCLUSION..............................................................................................................................11

INTRODUCTION
International business is defined as a business that concentrates on any commercial
transaction or an activity among the organisations, government entities or individuals which
crosses the boundary line of a country into various regions and nations. The management of
international business is considered with the management of business activities within an
organisation that serves the markets as well as operates in more than a country. Within this
report, Hayward Tyler is an organisation that is taken into consideration for demonstrating
different aspects of this report (Aguilera and Grøgaard, 2019). It is a UK-based organisation and
supplies full-service pump as well as motor repair and manufacturing along with advanced
design engineering. This report includes a discussion on initial strategy and its linkage with a
model. Moreover, three countries are going to be selected in this project in order to expand the
business and different models will be used in context to this. Furthermore, different modes of
entry will also be discussed and recommendations will also be given to the company.
MAIN BODY
Within this report, Hayward Tyler is a UK-based organisation located in Luton, England
that deals in offering full-service pumps along with the motor repairing as well as manufacturing
and advanced design engineering. The respective company is a leader in the performance-critical
pumps and motors for the international energy industry that is fulfilling the most demanding
applications. In order to expand the business of Hayward Tyler, the three countries that are
chosen in this project are India, United States and Denmark.
TASK 1
Discussion of initial strategy and its linkage to a model
Hayward Tyler is considered as one of the leading suppliers of mission-critical electronic
motors as well as pumps for the gas, oil, nuclear, chemical and industrial markets within the
world (Buckley, Enderwick and Cross, 2018). The company is depended on the predictive
simulation to plan an ambitious growth strategy of the business and communicate its vision to its
stakeholders. In context to Hayward Tyler, the company has adopted the strategy of growth as its
initial strategy. For capitalising on the opportunities across a large number of its developing
markets, the respective company identified that it required to undertake a project of the business
transformation that was concentrated on the following aspects:

 Aligning capacity to demand
 Maximising the efficiency
 Enhancing the profitability
The respective organisation has already attained a substantial growth in the turnover of
the business operations in Luton from £18 million in the year 2011 to £26 million in the year
2014 (Hayward Tyler Develop Growth Plan With Predictive Simulation, 2022). The next stage
of the company was to develop a plan in order to enhance the number of units that the company
was capable of producing. In context to growth expansion and strategic development, the model
of Ansoff Matrix can be used in relation to Hayward Tyler:
Ansoff Matrix is a tool that is used by organisations in order to identify and analyse the
strategies for business growth and to plan as well as analyse the strategies for development of
business in future. Hayward Tyler used this model as it helps the company in thinking about
growth of organisation. The model of Ansoff matrix is given as follows in context to Hayward
Tyler:
 Market penetration: This growth strategy helps the company to grow its market by
extending its sales volume through selling its current products to current markets. If
employees of Hayward Tyler use this strategy while doing international expansion then it
has to reduce its product price in order to capture more market share. This strategy would
help the company in evaluating its market and strengths and weaknesses of competitor’s
products and services.
 Product development: This kind of growth strategy helps the company in launching
unique and innovative products into existing markets. If this strategy s followed by the
organisation then it would facilitate in creating an innovative environment in order to
bring new and innovative ideas in introducing new products (Dobrucalı, 2019). For
adopting such strategy at time of global expansion, Hayward Tyler should have strong
concerns with the requirements of market share for satisfying the needs and wants of
customers.
 Market development: As per this growth strategy, the company has to introduce its
existing products into the new markets out of their current markets. When managers of
Hayward Tyler follow this strategy while doing international expansion then it would
help the company in acquiring new market share and thereby increment in revenues of

the company will take place. The company has to design new pricing policy in order to
attract a large amount of customers or new market divisions.
 Diversification: According to this strategy, if the administrators of Hayward Tyler want
to expand its business at global level, then they have to introduce company’s new
products in the new market segments. This strategy would help the company in reducing
the risk of loss and the managers of organisation should pay an special attention as they
are not much experienced in new markets, therefore they should have a clear vision
regarding the perceptions of the market share.
From the above discussed growth strategies, it is analysed that Hayward Tyler should go
for Market development growth strategy with an aim to launch its existing products into the new
market segments in order to attain business growth and market share (Dörrenbächer and
Gammelgaard, 2019). It would help the company in allowing its business to enhance the level of
profitability as well as productivity within the business.
TASK 2
Selection of country through using different models and frameworks along with the justification
In order to select the country for the business expansion, Model of 3/2 Scanning can be
used as this model involves three filter and two phases in order to select the country market. This
model would help Hayward Tyler in getting maximum benefits of the current research as well as
thinking. To start with this model, the company should conduct simultaneous selections of
countries using analysing traditional aggregates variables. After that the analysis of emerging
countries is conducted. These broad-based filters are hammers of “rough-cut” phase. The last and
final filter applied within this model is of micro-fit analysis and after that the precision tool is
used in the “diamond cut” phase. In this way, the selection of country market is done.
Therefore, in this project The United States is taken into consideration as a country in to
expand the business at international level.
Recommendations for the country selection:
Within this project, Hayward Tyler is recommended to expand its business at US because
in this country, there is a wide range of capabilities that can be gained by the company (García-
Lillo and et.al., 2019). This would also help the company in gaining competitive advantages over
the rivalries within the market place. The technological environment of US is highly updated that

would assist the organisation in using developed technologies in its business operations that
would save the cost as well as time of the business. The country is also offering engineering
services that would also be beneficial for Hayward Tyler in conducting its business operations in
an effective and efficient manner. The economy of US is also very high and well-developed that
will provide benefits to the respective company in increasing its overall efficiency in terms of
productivity and profitability (Guercini and Milanesi, 2020). Therefore, it has been proven that
US will be an effective country for Hayward Tyler in order to expand its business. The market
and competition analysis of the US is given as under in context of Hayward Tyler:
Pestle Analysis is a tool that is used by the organisations in order to analyse the impact of
macro-environmental factors that influence the functioning of an industry. Hayward Tyler will
use such type of model as it would help the company in making strategic decisions that will lead
to the success of the business at global level. Impact of different factors of Pestle Analysis is
described as follows in relation to Hayward Tyler:
 Political factors: Such factors are associated with the government guidelines and
regulations that impact performance of a business. In context to Hayward Tyler, COVID-
19 is a major factor that will influence the functioning of the company as government of
US has made certain guidelines regarding this pandemic situation like social distancing,
proper sanitising, etc. This can reduce the business operations so the organisation has to
make effective business strategies in order to overcome such challenge.
 Economic factors: These factors include inflation rates, interest rate, exchange rates,
unemployment rate and many more. Pandemic situation of COVID-19 has become
significant factor within the nation as there was economic lockdown and due to which
most of the organisations suffered a huge amount of loss (Hooper and Holtbrügge, 2020).
However, the situations become normal but still Hayward Tyler has to consider such
factor while expanding its business in international markets.
 Social factors: Such factors involve health consciousness, population growth rate, taste
and preferences, age distribution, etc. US has a vast market and is a great opportunity for
Hayward Tyler to understand the values and perceptions of its customer-base to whom it
will be going to offer its products and services in order to satisfy the needs and wants of
its market share. It will help the company in increasing the sales volume and positively
impacts its business performance.

 Technological factors: These factors are related with technological advancements and
include mobile technology, automation, research and development. US is one of the most
technologically advanced country and managers of Hayward Tyler should use highly
updated technologies within its business that will help the company in saving time and
overall business cost. This will bring positive impact on organisation and enhance its
business performance.
 Legal factors: Such factors involve various laws and legislations that are set by the
legislative system of US and include The Consumer Protection Act 1986, Employment
Laws and many more (Hult, Gonzalez-Perez and Lagerström, 2020). Hayward Tyler must
adhere these laws and work in an ethical environment in order to capture a large number
of market share within the US. This will positively influence business operations of the
company and enhance its productivity.
 Environmental factors: There are various environmental laws in US that should be
taken into consideration by Hayward Tyler while doing business expansion. The
environmental factors include pollution, climate, weather, CSR and many more. The
company must follow the environmental laws of the country and can use electric vehicles
in order to supply its products to market share as they emit less pollution to the
environment.
Porter’s Five Forces is another model that helps an organisation in analysing its internal
strengths and weaknesses that facilitates in creating new strategies in order to earn and maximise
the profitability level within business. This kind of framework will help Hayward Tyler in
analysing the competition within industry and also provide assistance to managers of company in
analysing the influence of five forces of this model on the business performance. These five
forces of this model are described below in context to Hayward Tyler:
 Competitive rivalry: This kind of force facilitates in analysing the number of
competitors within the market as well as their impact on the company’s performance
(Rialp and et.al., 2019). Hayward Tyler will operate in a very competitive market of US
where there are large number of rivalries of the company such as Marelli Motori,
Electromech Technologies, Gilkes, Magnetic Innovations and many more at a large scale.
Therefore, it is a high threat for the respective organisation and in order to face these

competitors and gaining competitive advantages, Hayward Tyler has to keep its prices
low for capturing more customers and to survive in competitive market.
 Threat of new entrants in the industry: If there are less trade restrictions or barriers
within US, then it would be easy for any new entrant to take entry into industry. In
context to Hayward Tyler, there is a high threat for the respective company as new
entrant can bring unique services and products that can capture more customers. The
organisation has to make effective business strategies otherwise its business operations
will get negatively impacted.
 Threat of bargaining power of buyers: Within every industry, the customer-base holds
the power to drag the prices low if they are large in number. In such scenario, the
company has to invest a huge amount of money in order to attract new market share.
Hayward Tyler should have positive relations with its potential customers within US and
maintain customer loyalty towards business operations (van Tulder, Verbeke and
Piscitello, 2018). Hence, there is a low threat of bargaining power of customers for the
organisation.
 Threat of bargaining power of suppliers: In context to Hayward Tyler, there are a wide
number of suppliers in US that will enable the respective company for offering its price
rather than accepting their offers. Thus, there is a low threat of bargaining power of
suppliers for the company.
 Threat of substitutes: This kind of force facilitates the company in making an analysis
of the influence of substitute services and products on the business. Rivalries of Hayward
Tyler like Marelli Motori and Gilkes have emerged with a variety of substitutes.
Therefore, it is a high threat of substitutes for the respective company.
TASK 3
Different Modes of Entry and Recommendation
In order to expand the business within international markets of US, the company can use
various modes of entry for taking entrance to these markets. Below is an explanation of different
entry modes in context to Hayward Tyler along with their advantages and disadvantages:
Licensing and Franchising: The companies that want to develop a retail presence in an
overseas market with less threats or risks, the entry mode of licensing and franchising will be

beneficial for it as this strategy will allows another company assuming the risk on behalf of the
organisation. Through licensing agreement and franchising, a business that is based on overseas
will pay royalty charges or commission in order to use the name of brand, its manufacturing
process along with the products, trademarks as well as other key intellectual properties. While
the licensee or franchisee presumes all risks and suffers all losses, it shares a proportion of its
profits and revenues to the licensor.
Advantages:
 The entry mode of licensing and franchising will help Hayward Tyler in lowering its cost
of entry into the international markets of US (Wieland and et.al., 2020). It will also help
the company through offering a passive source of income.
 Another advantage of this process is that it facilities facilitates organisation through
reducing the political threats and also allows the business expansion in various regions of
the country with minimum investment.
Disadvantages:
 The major disadvantage of the entry mode of licensing and franchising is that it can
leverage the acquired knowledge as well as pose just like future competition for the
business of Hayward Tyler.
 In some of the cases, the company might be unable to exercise overall control on its
licensing and franchising partners within the international market.
Joint Venture: This kind of entry mode is considered as one of the most preferred mode of
entry into the international markets for the companies who do not mind in sharing their brand,
expertise as well as knowledge. Hayward Tyler can form the joint venture with local business
within the international markets of US in which both the partners of joint venture will share the
profits and threats associated with the business. Both the business organisations will share costs,
investments, profits and losses at a defined proportion. Such type of entry mode is suitable in
those countries where the political system do not permit one hundred per cent foreign ownership
within certain industries.
Advantages:
 The main advantage of this entry mode is that with the help of this process both the
partners can leverage their respective experts in order to expand and grow within a
selected market.

 The political threats involved in this process are lower because of presence of local
partner that is having the knowledge and information of the local market as well its
business environment.
Disadvantages:
 The mode of joint venture can face the chances of cultural clashes within the business
because of the differences in the respective organisational cultures in both the partnering
firms.
 Another major drawback of the joint venture is that when a dispute occurs within the
business, dissolution of joint venture becomes a complicated and lengthy legal process.
Strategic acquisitions: This mode of entry implies that an organisation acquires a
controlling interest within a company that is already existed within the international markets. The
acquired organisation can be indirectly or directly engaged in providing identical products and
services within the overseas market. The main organisation can retain existing management of
newly acquired company in order to get benefit from their expertise, experience and knowledge
while having members of team positioned in the board of organisation as well.
Advantages:
 This type of entry mode is considered as one of the fastest mode of entry into the
international markets on a large scale.
 The company can get advantages from the knowledge, expertise as well as experience of
the current management along with main personnel by retaining them.
Disadvantages:
 Just as joint ventures, this process also includes a chance of cultural clashes within the
business because of the difference in the culture of organisations.
 Another disadvantage is that this process also includes some problems with seamless
integration of the processes as well as systems and technological issue is considered as
one of the most common issue in strategic acquisitions.
Recommendations:
From above description, it is recommended to Hayward Tyler to use the entry mode of
Joint Venture at the time of expanding its business in the international markets of US. This
process affords both company in having access to the organisational resources to the other
company without having to invest a large amount of capital. This process will also help the

company in maintaining its own recognition as well as can easily return to normal business
activities once this process is complete.
CONCLUSION
From above explanation of the report, t has been concluded that the concept of
international business management facilitates the companies in gaining a broader understanding
of various markets, cultures as well as businesses. In this report, various aspects of international
business management have been explained. There has been a discussion on the initial strategy of
the company along with a model of business growth. A country has been selected among the
three in order to expand the business and in consideration with that, various models have been
used within this report. Pestle analysis helped the company in analysing impact of macro-
environmental factors on business operations and Porter’s five forces model has been used to
analyse the competition within the industry. Moreover, different modes of entry have also been
discussed in this report along with their advantages and disadvantages and recommendations
have also been given to the company in order to expand the business in international markets.

REFERENCES
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