International Business: Market Selection and Entry Strategies for CafePod Coffee

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International Business

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Table of Contents
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION...........................................................................................................................1
Discuss about the chosen firm and principles for achieving global value.............................2
Describe the nation you would suggest to enter the market...................................................3
Mention appropriate academic models associated to the market selection procedures globally
with entry schemes.................................................................................................................3
Steps involved in the internationalization and their market assortment.................................4
Explain typical barriers that will be faced as company expand the business internationally 6
On the basis of above analysis, evaluate a relevant implementation method for the
internationalisation system for the required goal marketplace ..............................................7
CONCLUSION................................................................................................................................8
REFERENCES ...............................................................................................................................9
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EXECUTIVE SUMMARY
For a business organisation, their growth depends on the global value because this
provides various advantages to the company by fostering and boosting their performances.
Global value and recognition helps in acquiring the greater heights by fulfilling every set
objectives and goals of the business organisation. To get a brand image and value in some other
country or nation the business organisation needs to examine their industry conditions and how
the chosen mode of entry into the market will benefit them. The Cafe coffee is looked after
because this firm has got different revelations that will help foster the business organisation
globally.
INTRODUCTION
In today's date international business is exchange between two organisations and related
movements of any business which is generally outside the edges of the domestic countries. It is
evident that the international business is not only limited to some particular cash amount or
insurance premium but also they considers their dealings with different parties and firms which
include export and import of products, their related introduction and innovations and many more.
For a business organisation is very crucial that the organisation grows globally and has
international brand value and so internationalization has a great impact on the business
organisation and it is very crucial for them to enhance their market base as well as their business
expansion. International image provides confidence and encourages the business in a great
manner by providing a global platform and giving access to perform their various functionality at
global level (Bednarczyk, 2019). In this way the firm starts to grow globally and and exploring
more of practices that would enhance the productivity and expansion of share in the organisation.
For this report, CAFEPOD coffee which is a well familiar small business in the city of UK has
been taken into circumstance. This firm is known for giving quality and excellent flavours to the
coffee. The CAFEPOD Ltd. Is located in London which has been in the industry for long 11
years. This business firm has decided to go for higher expansion in their business by setting up
their business in the markets of Denmark. Thus this report will comprise of the summary of the
business organisation that would foster the expansion along with barriers and entry into market
strategies which are faced during global internationalization.
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TASK
Literature assessment
According to the (Clark and et. al., 2018) the operation of any business functionality
across the edges and boundaries of the domestic nation refers to international business. Exporting
and importing of goods, products and services between more of nations is known as international
business. In any business organisation, cost play plays an important role in their growth and
enhancement of their business in the developed market such as in nations like United States and
Europe. When making any decision for the business organisation, many factors are taken into
consideration such as manufacturing goods, their selling goods and products and etc. Any
international business aids in the business growth by developing their brand value in the global
economy and on the other hand this also comprises many challenges and risks. As we know that
each nation has their own currency which directly affects the business model of the firm. Some
global challenges that are faced by the organisation are communication and social obstructions,
their different culture, rules and regulations and many more. For these difficulties, one
organisations needs the requirement of different experts that would aid in the process and can
better advise who can foster in understanding of their culture and have a good knowledge of
finance (Ferasso and et. al., 2020).
Analysis and Discussion:
Discuss about the chosen firm and principles for achieving global value
CAFEPOD coffee co. is an autonomous business organisation that was founded by Peter
Grainger and Brent Hadfield in 2011 in the United Kingdom. The organisation is devoted in
offering different class of coffees such as B. Smooth, Intense, Wristlet, Origin Sumatra Lake
Tawar, Compatible capsules, Origin Columbia Hulia etc. The organisation is also known for
serving coffee capsules and espresso blends a that are made from food grade plastics that are
recyclable. The firm is private and has food and beverages services. The main goal of the firm is
to make good taste coffee of rich quality that can be easily be prepared at homes. There rae
different coffee beans such as the Nespresso, ground coffee and whole beans which has rich taste
and they enhance the delicious flavour of the coffee. The main goal of the business firm is to
provide refreshment to burst down the hustle of everyday life. The CAFEPOD idea came to Peter
when he was travelling to South America after leaving his job (Ghauri and et. al., 2021). He
came across the coffee plantation and then decided to provide the best of exciting taste and
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quality coffee by using Nespresso compatible capsules. He also observed that the coffee was in
demand in the supermarkets so he with his partners decided to fix a range of delicious and
powerful coffee blends for the people so that they could enjoy it at their homes. This high
demand of coffee encouraged Peter to expand their business in Denmark too. This thought of
internationalisation benefits the organisation to fulfil their market expansion, diversification in
the business world and in acquiring more of business growth opportunities (Sikora and et. al.,
2019).
Describe the nation you would suggest to enter the market
The CAFEPOD coffee choose to expand their business in Denmark because of the
climate and location which is best in the Europe. Going for business in Denmark was very
profitable and efficient for the CAFEPOD coffee as the World Bank provided Denmark as
number 1 in Europe and further number 4 in the global ease of planning for business index in
2020. Denmark is considered as one of the best economies and best places for expansion of the
business organisation's investment. As Denmark is the free market capitalist economy, it is rated
as the world's best locations for expanding business with a strong social welfare. It has a GDP of
340.00USD Billion in the end of 2021 that is more flourishing than the other nations of the
globe. The nation has great economy due to which it is considered as the most open economies
among all the other nation and very supportive government. These factors of Denmark makes it
more suitable for CAFEPOD coffee the best chosen location for their business organisation.
Mention appropriate academic models associated to the market selection procedures globally
with entry schemes
Global market selection plan of actions:
Undifferentiated: This type of aspect is responsible for focussing on the customers
needs on the fact that their needs are common in the business world and markets which
can be fulfilled by introducing the product at one or all the markets or just introducing the
products of the organisation in one market only. This type of market is considered as a
whole.
Differentiated: This approach fulfils the organisation”s requirements of creating
different and various brands which will aid in combatting the unshared and exclusive
necessitates of every individual and customers in the business organisation (Srivastava
and et. al., 2020)
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. In this way the individual gets diverse opportunities to choose their part of requirements
and fulfil their own needs and enjoy the company's service efficiently.
Concentration: This market approach is responsible for capturing the full grasp on the
market and acquire heavy incursion in one or more than one firm. In this approach, the
firm can invest in paid efforts on some well known, familiar and crowded regions of the
market instead of investing and spreading in more of cities thinly over the areas of the
country. And this helps the organisation to make a strong position in the business market
by focussing more on their provided resources and their enhanced capabilities.
Niche: This aspect aims on the market strategies which is generally are not efficiently
provided to the organisation and mostly overlooked and neglected by the large
organisations which can also profit the business firm. This type of strategies aid in
avoiding the competition with larger organisations.
Steps involved in the internationalization and their market assortment
Market assortment plays a crucial role at global level. This procedure of market selection
is basically based on the brief sorting of the market which is very diverse and complex in the
business world against all the odds and specific defined measures and aspects (SUKOROTO and
et. al., 2020). Now below mentioned are the various types of procedures involved in the market
assortment processes:
Global markets goals: The very first target step in assortment of market for expanding
the business is to determine the business goals and targets.
Factors for assortment: For choosing a perfect market for business, estimation is very
crucial for CAFEPOD coffee. There are different factors that are used by the organisation
for choosing the market that can be utilized by some respective organisations.
Preliminary review: The preliminary review is responsible in removing the non likely
and non deserving market origins in the business organisations.
Market shortlist: In preliminary review, it is possible that they allows the business firm
to withdraw those markets which are not initially taken into consideration.
Evaluation and selection: - analysing the external factors and organisation' s sources the
most demanded in the market is selected to introduce. Selection markets is based on
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feasibility and analytic studies. By studying they will be positioned according to the
whole plead.
Test marketing: - before starting production on a large scale company need to introduce
the product on a small scale. This analysis will help CAFEPOD coffee to know about the
customer response and reviews about the product. Desirable changes can be made in the
product in order to meet customer need.
Commercial production: - an organisation can manufacture the product in bulk after
receiving the customer review by introducing the product on a small scale. Now,
CAFEPOD coffee need to make fewer changes to the products.
Ways for the entrance in the market: -
Exporting: - it is described as the most convenient way to enter into the market. For
expansion of the business it is required to enter into the global market. International
marketing includes the marketing of the product from domestic country to external
countries. The benefit of global marketing includes that the company does not need to
invest for the establishment of operation in particular market. For CAFEPOD coffee, it
is required to evaluate the price they are offering and market oriented labelling if they
want to enter in global market for the expansion.
Licencing and franchising: - to enter into global market organisation minimize the
risk and want to introduce a retail presence in global market. Licencing and franchise
are another method for the introduction in the global market. This makes other
companies to take chance on organisations behalf. Since global organisations pay
royalties for the use of brand names, production process and trademarks it is very
crucial to take license agreements and franchise payments. For all the losses while
investment only licensee and franchisee is liable. In this way, CAFEPOD coffee will
be able to introduce a presence in the Denmark even with less amount of money and
risk.
Joint venture: - it is a way for introduction in global market for organisations do not
have any problem in sharing knowledge, expertises and brand . Organisations want to
expand the business to the global market can installation joint venture with overseas
home agencies, foreign agencies and each the organisation divide the possibilities and
dangers related to organisation. Both the companies proportion investment, profit, loss
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and costs. Those countries in which the government is not allowing 100 percent
foreign ownership this type of entrance is suitable for the global marketing..
Explain typical barriers that will be faced as company expand the business internationally
for getting entrance in global market organisations face a lot of issue includes financial
crises, competition, language boundaries and cultural barriers. In case of CAFEPOD coffee the
barriers may be faced while entering into global market are enlisted and described below:-
language and cultural boundaries:- one of the biggest barrier which CAFEPOD
coffee is going to face is language barrier while expanding he business into foreign. For
CAFEPOF coffee it is very crucial to remove this barrier since 86 percent of the citizen
of the Denmark speak in Danish and the second language used there is English. The
employees of the company have to learn this language quickly otherwise it can affect
the income of the company and company can face financial crisis. The members need to
improve communication skills so they can communicate in Danish too for the expansion
of the business (Elo, and Riddle, 2019).
Cultural difference:- every individual nation has its own language and lifestyle so
united state of America has. The lifestyle accommodates of traditions, art, holidays and
meals and most significantly social norms that are observed by specific group of
individuals. To realize the culture of the nation where organisation want to expand is
very important. In case of CAFEPOD coffee the realisation and adaptation of Danish
culture is very important for the expansion of their business. They would fail to
introduce the business in the local market and would not understand local business
strategies if they would not adopt the Danish culture. This will lead the organisation do
not have the opportunities o explore (Fuller, 2018).
Managing the global teams:- while expanding the business globally it is difficult to
mange the team. There are a number of barriers comes in way of team management like
culture, language and time zones. In case of CAFEPOD coffee it is required to work on
team management to build a string business relationship with global team. A business
can not run effectively if the organisation is not able to manage the team globally.
Management of team is very important to run the business globally. Poor team
management makes the survival tough in the global market (Baláž, Zábojník, and
Harvánek, 2019.
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Legal and regulatory compliance:- one of the most toughest barrier faced by an
organisation while expanding the business globally is legal and regulatory compliances.
Eliminating this barrier is not so easy as others. This barrier accommodates of various
kind of demanding situations including buying and selling regulation, taxation and
selling and buying rules. For CAFEPOD coffee it is very crucial to follow the rules
while expanding the business because if they fail to follow the regulation they have to
pay penalties to the government.
On the basis of above analysis, evaluate a relevant implementation method for the
internationalisation system for the required goal marketplace
The Uppsala model of internationalisation is being used as it is the most famous method
of ways organisation address the foreign places system (Alsaad, and Taamneh, 2019). This
represents a successive method and depicts that the organisation will grade by grade emerge as
internationalized. This model tell that lack of information about the foreign market may lead to
the bad impact on internationalisation. Therefore it is suggested that companies need to primarily
installation their function through domestic market and then move to the next step after they have
gained experiences from the local market. The stages are given below:-
A :- exporting should not be done on a regular basis (sporadic exports)
B :- for exporting the products agencies which are independent are not considered (export mode)
C:- introduce foreign places workplace for meeting the sale requirement
D:- establish a foreign places manufacturing unit
The first step followed by the CAFEPOD coffee is to entre into the Denmark market. They
should not export on a regular basis.
In step 2nd the company systematically export via agent. Experience and knowledge of the
Denmark market gained by the company via this export.
If the company is keen to vow more exports, then in step 3rd the control will take over the work of
mediator and attempt by its own (Bolwijn, Casella, and Zhan, 2018). This is specify that the
company need to know about the market where going to expand the business and how to
introduce the business in global market.
The last step includes installation a company's manufacturing facility in a marketplace that is
already existing. This occurs due to organisation feel well knowledgable and keen to take
advantage of the location (Hannibal, and Knight, 2018).
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CONCLUSION
From the above file it is analysed that introducing globally is being taken into
consideration as one of the most essential factor for commercial enterprise corporation so that it
will enhance their commercial enterprise client base at the side of the profits. This file behaviour
the distinctive abilities for the chosen organisation to function their commercial enterprise
capabilities globally for enhancing their presence and decorate their profitability. This file
additionally concluded the selected agency can increase their commercial enterprise with inside
the marketplace of Denmark so that it will develop their commercial enterprise and acquire the
success that's useful for his or her long period of sustainability. In addition to this, this file
additionally concluded the modes to go into into the brand new marketplace and barrier which
may be face through the corporation to move internationally. It talks about all the barriers come
in way of expanding the business globally. All the improvement need to made for the global
expansion is mentioned in this report.
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REFERENCES
Books and Journals
Alsaad, A. and Taamneh, A., 2019. The effect of international pressures on the cross-national
diffusion of business-to-business e-commerce. Technology in Society, 59, p.101158.
Baláž, P., Zábojník, S. and Harvánek, L., 2019. China's Expansion in International Business: The
Geopolitical Impact on the World Economy. Springer Nature.
Bednarczyk, A., 2019. A project introducing innovations in a coffee industry company (Doctoral
dissertation, Instytut Technik Wytwarzania).
Bolwijn, R., Casella, B. and Zhan, J., 2018. International production and the digital economy.
In International business in the information and digital age. Emerald Publishing Limited.
Chow, D.C. and Schoenbaum, T.J., 2020. International business transactions: problems, cases,
and materials. Wolters Kluwer.
Clark, D.R., Li, D. and Shepherd, D.A., 2018. Country familiarity in the initial stage of foreign
market selection. Journal of international business studies, 49(4), pp.442-472.
Elo, M. and Riddle, L. eds., 2019. Diaspora business. BRILL.
Ferasso, M., Beliaeva, T., Kraus, S., Clauss, T. and Ribeiro‐Soriano, D., 2020. Circular economy
business models: The state of research and avenues ahead. Business Strategy and the
Environment, 29(8), pp.3006-3024.
Fuller, C., 2018. The region in international business and economic geography. In The Routledge
Companion to the Geography of International Business (pp. 213-226). Routledge.
Ghauri, P., Strange, R. and Cooke, F.L., 2021. Research on international business: The new
realities. International Business Review, 30(2), p.101794.
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.
Sikora, T. and Baranowska-Prokop, E., 2019, June. Relationship Between Competitive Strategies
of Small and Medium-Sized Polish International New Ventures and Their Market
Performance: Cluster Analysis Approach. In International Conference on Applied
Economics (pp. 355-371). Springer, Cham.
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.
SUKOROTO, S., HARYONO, S. and KHARISMA, B., 2020. Target Market Selection Using
MCDM Approach: A Study of Rolling Stock Manufacturer. The Journal of Distribution
Science, 18(7), pp.63-72.
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