International Business Management: Evaluation of Current Strategy and Market Entry Recommendations

This report evaluates the current international strategy of Hayward Tyler, a multinational company dealing with pumps and motors. It includes SWOT analysis, evaluation of international strategy, and recommendations for suitable new market entry and entry mode. The report also covers PESTLE analysis and Hofstede's 6 cultural dimensions.

International Business
Management

Table of Contents

Introduction......................................................................................................................................1
An evaluation of the current international strategy of the organisation...........................................1
SWOT Analysis......................................................................................................................1
International strategy..............................................................................................................2
Recommendation for a suitable new market to enter with justification..........................................2
Porter's Five Forces Analysis.................................................................................................2
PESTLE Analysis...................................................................................................................4
Hofstede's 6 cultural dimensions............................................................................................7
Recommendation....................................................................................................................9
Recommendation for a suitable entry mode to use with Justification.............................................9
Country selection OLI Method...............................................................................................9
Recommendation..................................................................................................................12
References......................................................................................................................................12
Appendix........................................................................................................................................14

Introduction
International business management is defined as the trade of goods and services along
with the technology and capital across the national borders at a global and transnational level. It
basically involves the transactions of products and services among more than one country which
is also considered as the cross-border transaction. It is a management of business operations in
the company who are serving the markets and operating in multiple countries (Rana and Morgan,
2019). Organisation chosen for the current report is Hayward Tyler. It deals with the product and
services of pumps and motors headquartered in the United Kingdom and established in 1815. It
is a multinational company which operates in more than one country. It operates in several
countries such as UK, USA, India and China. The following discussion is based on the
international business management of a chosen company. The reports will provide the insight of
evaluation of the current international strategy of the organisation and the recommendation for a
suitable new market to enter with supporting evidence and reasoning. The report also views the
justification for a recommendation for a suitable and remote to use with supporting evidence and
reasoning. Moreover the current report will also evaluate the external business environment of
the organisation and the cultural management as well which includes the present analysis and
SWOT analysis with various models and theories of culture management as well.
An evaluation of the current international strategy of the organisation
SWOT Analysis
Hayward Tyler has strengths such as it has strong brand portfolio, reliable suppliers,
successful track of mergers and acquisition with development of new products and strong
distribution network. Its weaknesses includes the lack of financial planning, below average
profitability ratio, less investment in research and development department and low ability to
tackle the challenges of new entrants. Its opportunities includes the new environmental policies,
new trends in consumer behavior, lower inflation rate, advancement in technology and market
development can bring competitive advantages. Its threats includes the intense competition,
liability laws, changing consumer behavior and low range of product portfolio (Fatehi and Choi,
2019). As per the SWOT analysis conducted, international strategy is analysed and determined in
the below section.
1

International strategy
The company has transformed its way into operations and has the in-depth analysis of the
implementation of the digital twins which results in the dynamic and virtual factory which has
provided the access to the actionable information. This is a current international strategy of the
company which falls under the transnational strategy of international business management.
Transnational international strategy is defined as the action plan where the business makes the
decisions to conduct its activities across the global borders. This is a strategy which is invested
by the company in its operations and assets which connects every Nation with its company
operations. Another international strategy is a multi-domestic strategy which is defined as the
marketing approach of the company which focuses mainly on the advertising and commercial
efforts as per the needs and requirements of the local market instead of taking it on a global
approach (Cherunilam, 2020).
Hayward Tyler focuses on information and communication Technology in order to
operate its business across the world on an international basis. It has a prediction of the
simulation technology which supports the digital twin which has the platform of the execution
and schedule based planning. It uses the technology with ease to deploy and has a user friendly
environment with better team management across every Nation their operating. The company
states that they are extremely dynamic and also wants the solution to quickly adopt the advanced
technology in its manufacturing systems for better operations and management within each of
the offices they are operating in every country. They have introduced the 3D factory model in
order to optimize their operational processes and the various information systems such as
enterprise resource planning systems and other management information systems for better
operations across the world (Buckley and Casson, 2019).
Recommendation for a suitable new market to enter with justification
Porter's Five Forces Analysis
Country 1: Australia Country 2: France
Threats of entry There is high threat of entry
due to huge of capital required,
difficult to achieve economies
of scale and there are high
There is high threat of entry
due to High vengeance
existing companies, it is hard
to attain economies of scale
2

ranges of taxes as well.
Therefore, threats of entry is
considered high for Hayward
Tyler to enter into Australia
(Bahoo, Alon and Paltrinieri,
2020).
and moreover there are broad
taxes ranges also. Hence,
threats of entry is considered
high for Hayward Tyler to
enter into France as well.
Bargaining power of
suppliers
There is low bargaining power
of suppliers due to low number
of suppliers of this industry in
Australia, materials are
broadly accessible used by the
firm so therefore, suppliers
bargain low in terms of raw
materials. Hence, bargaining
power of suppliers is
considered low for Hayward
Tyler to enter into Australia.
There is high bargaining power
of suppliers due to high
number of suppliers of this
industry in France, materials
are less accessible which is
used by the firm so therefore,
suppliers bargain high in terms
of raw materials. Hence,
bargaining power of suppliers
is considered high for
Hayward Tyler to enter into
France.
Bargaining power of buyers There is low bargaining power
of buyers due to there are less
number of companies who are
delivering the good quality
products and services in
Australia. Hence, bargaining
power of buyers is considered
low for Hayward Tyler to enter
into Australia.
There is high bargaining power
of buyers because there are
more number of companies
who are delivering the good
quality products and services
in France. Hence, bargaining
power of buyers is considered
high for Hayward Tyler to
enter into France (Sniazhko,
2019).
Threats of substitutes There is high threats of
substitutes because there are
There is low threats of
substitutes because there are
3

small companies in Australia
who provide similar products
and services. Customers who
have low purchasing power
will buy low quality products
instead of paying high to
Hayward Tyler. Hence, threats
of substitutes is considered
high for Hayward Tyler to
enter into Australia.
low number of companies in
France who provide similar
products and services. Hence,
threats of substitutes is
considered low for Hayward
Tyler to enter into France.
Threat of rivalries There is low threats of rivalries
because there are low number
of firms who are delivering
high quality of products and
services so the customers who
have good purchasing power
will prefer Hayward Tyler for
goof quality products and
services. Hence, threats of
rivalries is considered low for
Hayward Tyler to enter into
Australia (Srivastava, Singh
and Dhir, 2020).
There is high threats of
rivalries because there are high
number of firms who are
delivering high quality of
products and services. Hence,
threats of rivalries is
considered high for Hayward
Tyler to enter into France.
PESTLE Analysis
Country 1: Australia Country 2: France
4

Political Factor Hayward Tyler can experience
threat in Australia in terms of
political factor. The reason
being is that it has high taxes
and strict regulations due to
Brexit which becomes difficult
for the company to maintain
stability in the marketplace.
That is why political factor can
prove negative for the
company in Australia (Ferraro,
2021).
Hayward Tyler can experience
opportunities in France in
terms of political factor. The
reason being is that it has
moderate taxes and easy
regulations as compared to
Australia which becomes
simple for the company to
maintain stability in the
marketplace. That is why
political factor can prove
positive for the company in
France.
Economical Factor Hayward Tyler can experience
opportunities in Australia in
terms of economical factor.
The reason being is that the
country can provide good rate
of employment and also can
earn better gross domestic
product. That is why
economical factor can prove
positive for the company in
Australia.
Hayward Tyler can experience
threats in France in terms of
economical factor. The reason
being is that the country can
low rate of employment due to
Covid 19 which directly
affects the gross domestic
product and national income of
the nation. That is why
economical factor can prove
negative for the company in
France.
Social Factor Hayward Tyler can experience
opportunities in Australia in
terms of social factor. The
reason being is that the people
in the country are more
Hayward Tyler can experience
opportunities in France in
terms of social factor. The
reason being is that the people
in the country are more living
5

forward looking in technology
so they aspire goof quality
products as per their
purchasing power. That is why
social factor can prove positive
for the company in Australia.
in current trends so they look
for the varieties. That is why
social factor can prove positive
for the company in France
(Tien and Ngoc, 2019).
Technological Factor Hayward Tyler can experience
opportunities in Australia in
terms of technological factor.
The reason being is that there
are highly advanced
technology which can be used
to operate and manage the
business in order to enrich the
customer experience with
brand. That is why
technological factor can prove
positive for the company in
Australia.
Hayward Tyler can experience
threats in France in terms of
technological factor. The
reason being is that as
compared to Australia,
technology advancement is
less which can moderately help
the organization to grow. That
is why technological factor can
prove negative for the
company in France.
Legal Factor Hayward Tyler can experience
threats in Australia in terms of
legal factor. The reason being
is that there are several laws
and legislations which impose
high duties on the raw
materials purchased by the
company. That is why legal
factor can prove negative for
the company in Australia.
Hayward Tyler can experience
threats in France in terms of
legal factor. The reason being
is that there are taxes which
are highly imposed on the
products of the firm which are
strictly followed up by the
laws related to the business.
That is why legal factor can
prove negative for the
company in France.
6

Environmental Factor Hayward Tyler can experience
opportunities in Australia in
terms of environmental factor.
The reason being is that there
are various environmental
programs in which the
company can participate so that
the sustainability can be
maintained by the firm. That is
why legal factor can prove
positive for the company in
Australia (Sharma, Leung,
Kingshott and Cardinali,
2020).
Hayward Tyler can experience
threats in France in terms of
environmental factor. The
reason being is that there are
low number environmental
programs conducted within
country through which it is
unable to maintain
sustainability for the firm. That
is why legal factor can prove
negative for the company in
France.
Hofstede's 6 cultural dimensions
Country 1: Australia Country 2: France
Power Distance Index There is high score of power
distance index in Hayward
Tyler as it has a centralized
organization and distributes
power between employees
equally and the people
properly understand their roles
and responsibilities in the
company. This helps the
company in entering into the
market of Australia. (Birru,
Runhaar, Zaalberg and
There is low score of power
distance index as they have a
large communication gap
between their employees and
superiors in France country. In
this all members are equal as
they follow flatter
organisational structure in
Hayward Tyler.
7

Mulder, 2019).
Individualism Versus
Collectivism
The Hayward Tyler company
follows Individualism culture
which helps in valuing their
employees well-being over the
group of others. This will help
the company in bringing more
productivity and growth by the
sales of products and services
in the market of Australia.
There is Collectivism culture
where employees need to
sacrifice their own needs and
wants to fulfil the goals and
objectives of the Hayward
Tyler company. This reduces
the morale of employees and
results in decreased
productivity and growth in the
market of France.
Masculinity Versus
Femininity
Australia is a high masculinity
society which means hiring
more male employees and less
female employees. Hayward
Tyler company needs more
male employees as they deal in
manufacturing and designing
fluid filled electronic motors
and motor pumps which
require more strength and
time.
France is considered as a
low feminine society
where people mainly focus
on managing by consensus,
discussion, negotiation and
compromise. This supports
hiring more female staff
which creates problem as
they do not work overtime.
(Shams, Vrontis, Belyaeva
and Czinkota, 2021).
Uncertainty Avoidance
Index
There is low score of
Uncertainty Avoidance Index
in Australia and this helps the
employees of Hayward Tyler
company to be comfortable
with any change and brings
innovative ideas in the
company. This helps the
There is high score of
Uncertainty Avoidance Index
in France and this makes the
structure of Hayward Tyler
more rigid and conservative.
This makes it difficult for the
company to make clear and
concise plans for attaining
8

company in taking better
decisions for achieving high
growth.
company's goals.
Long- Versus Short-Term
Orientation
They follow a short term
orientation as it helps in
determining and comparing
the cultural behavior and
values. Hayward Tyler
company needs to place
more importance on
consistency, principles and
truth. (Aguilera and
Grøgaard, 2019).
They follow a long term
orientation in France culture
which tends to be modest,
thrifty and more pragmatic. In
this culture Hayward Tyler
emphasize more on virtues and
obligations.
Indulgence Versus Restraint Australia is considered as an
indulgent country which helps
employees of Hayward Tyler
company to enjoy their work
and live a happy life.
France considers low score of
Restraint which makes it
difficult for employees of
Hayward Tyler company as
they needs to follow more
rigid and controlled behaviour.
Recommendation
It is recommended that Hayward Tyler must expand its business in Australia because
there are more positive aspects as compared to France. Porter's five forces is analysed along with
the PESTLE analysis and Hofstede's 6 cultural dimensions. After examination of all such
models, it is determined that Australia will be more effective to operate for the company instead
of France.
Recommendation for a suitable entry mode to use with Justification
Country selection OLI Method
Ownership Location Advantages Internationalization
9

Advantages advantages
Import and export Under import and
export the organisation
may enjoy ownership
advantage which
means that all the
decisions will be taken
by the organisation
itself irrespective of
their existence in
different country
(Akdeniz, Zhang and
Cavusgil, 2019). It
could be said that as
Hayward Tyler is
expanding their
business in Australia
so the company may
have fuller control on
their ownership.
As the form of entry is
import and export
which means that the
organisation may not
have location
advantage. For
Hayward Tyler if the
company selects
import and export as a
method of getting
entry into Australia
then the organisation
will not be able to
acquire location
benefits as the
company will have to
depend upon resources
existed within
Australia.
When export and
import is selected as
internationalisation
strategy then the
organisation may get
internationalisation
advantage. This means
that Hayward Tyler
will be able to make
contract and different
joint venture with
existing local
companies within
Australia which is
highly beneficial. But
at the same time the
organisation will not
be able to develop
their existence into
markets of Australia as
only final products
will be imported or
exported in another
country.
Licensing Using licensing
ownership advantages
can be attained by
Hayward Tyler which
means that the
Using licensing
location advantages
cannot be taken by
Hayward Tyler in
Australia as different
Using licensing
internationalisation
advantages cannot be
acquired by Hayward
Tyler as the company
10

company will retain
their rights in brand,
copyright and other
intellectual property.
This will provide
competitive advantage
to the organisation in
order to offset their
liabilities.
resources of the
organisation are
immobile in nature
which means that
fullest potential of
resources can not be
attained.
will have to outsource
their business
proceedings hence,
could not provide
additional benefits to
the organisation.
Foreign Direct
Investment
In the terms of foreign
direct investment this
is stated that
ownership is remained
constant within the
method as Hayward
Tyler will invest in
some other country
due to which their
ownership will remain
constant. In the
Australia, Hayward
Tyler will use their
rights and benefits
which is helpful for
the organisation to
settle down their
business in different
market territory
(Wieland, Bals, Mol
and Handfield, 2020).
This is the advantage
When the organisation
selects foreign direct
investment as their
market entry strategy
for entering into
different country then
also the organisation
will not have to leave
their ownership which
means that all the
decisions will be taken
by the organisation
without any
interference of
external party. In the
context of Hayward
Tyler as the
organisation has
decided to manage
their expansion in
Australia which means
that if Foreign direct
In terms of foreign
direct investment this
is analysed that the
company makes their
investment in another
country as an
investment so that to
enter into another
market and to unleash
success opportunities
in the nation in which
multiple opportunities
are available
(Szkudlarek, Osland,
Nardon and Zander,
2020). When foreign
direct investment is
selected as entry
strategy then this can
be said that
internationalisation
benefits can be
11

that Hayward Tyler
will not use their
valuable resources in
terms of expanding
their business into
different market
territory.
investment is taken as
their entry method
then the company will
be able to use their
owned resources in
such manner that their
brand image and name
can be retained into
the market.
attained as
international identity
can be made. For
Hayward Tyler as the
company have decided
to make their entry in
Australia which means
that the company will
able to manage their
existence along with
fuller business
operations.
Recommendation
It is recommended that Hayward Tyler must choose foreign direct investment. The reason
being is that it fosters economic growth with human capital and technology development. It
improves the capital flow and create the competitive market with exchange rate sustainability
and increment in exports as well.
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.
Akdeniz, M.B., Zhang, C. and Cavusgil, S.T., 2019. Innovative pedagogical approaches in
teaching international business. Journal of Teaching in International Business, 30(2),
pp.96-101.
Bahoo, S., Alon, I. and Paltrinieri, A., 2020. Corruption in international business: A review and
research agenda. International Business Review, 29(4), p.101660.
Birru, W.T., Runhaar, P., Zaalberg, R. and Mulder, M., 2019. Explaining organizational export
performance by single and combined international business competencies. Journal of
Small Business Management, 57(3), pp.1172-1192.
Buckley, P. and Casson, M., 2019. Decision-making in international business. Journal of
International Business Studies, 50(8), pp.1424-1439.
Cherunilam, F., 2020. International business. PHI Learning Pvt. Ltd..
Fatehi, K. and Choi, J., 2019. International business management. Springer.
Ferraro, G.P., 2021. The cultural dimension of international business. Prentice Hall.
12

Rana, M.B. and Morgan, G., 2019. Twenty-five years of business systems research and lessons
for international business studies. International Business Review, 28(3), pp.513-532.
Shams, R., Vrontis, D., Belyaeva, Z. and Czinkota, M.R., 2021. Strategic agility in international
business: A conceptual framework for “agile” multinationals. Journal of International
Management, 27(1), p.100737.
Sharma, P., Leung, T.Y., Kingshott, R.P. and Cardinali, S., 2020. Managing uncertainty during a
global pandemic: An international business perspective. Journal of business research, 116,
pp.188-192.
Sniazhko, S., 2019. Uncertainty in decision-making: A review of the international business
literature. Cogent Business & Management, 6(1), p.1650692.
Srivastava, S., Singh, S. and Dhir, S., 2020. Culture and International business research: A
review and research agenda. International Business Review, 29(4), p.101709.
Szkudlarek, B., Osland, J.S., Nardon, L. and Zander, L., 2020. Communication and culture in
international business–Moving the field forward. Journal of World Business, 55(6),
p.101126.
Tien, N.H. and Ngoc, N.M., 2019. Coping With Challenges and Taking Opportunities in
International Business Strategies of Foreign Enterprises in Vietnam.
Wieland, A., Bals, L., Mol, M.J. and Handfield, R.B., 2020. Overcoming blind spots in global
sourcing research: Exploiting the cross-sections between supply chain management and
international business. Journal of International Management, 26(1), p.100709.
13

Appendix
PESTLE Analysis
Country 1: Australia Country 2: France
Political Factor Threat Opportunity
Economical Factor Opportunity Threat
Social Factor Opportunity Opportunity
Technological Factor Opportunity Threat
Legal Factor Threat Threat
Environmental Factor Opportunity Threat
Porter's five forces analysis
Country 1: Australia Country 2: France
Threats of entry High High
Bargaining power of
suppliers
Low High
Bargaining power of buyers Low High
Threats of substitutes High Low
Threat of rivalries Low High
Country selection OLI Method
Ownership
Advantages
Location Advantages Internationalization
advantages
Import and export Yes Yes No
Licensing Yes No No
Foreign Direct Yes Yes Yes
14

Investment
15