International Business: Expanding Hudson Group in the United Kingdom

This report discusses the expansion of Hudson Group in the United Kingdom, focusing on the company's overview, products ready for internationalization, macro factors analysis of the host country, partnership market entry strategy, and host country culture. The report concludes with insights on the business environment in the United Kingdom and the potential for growth.

INTERNATIONAL
BUSINESS
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TABLE OF CONTENT
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
1 Overview of company and its products ready for internationalisation.....................................4
2 Macro factors analysis of Host country....................................................................................5
3 Partnership market entry strategy.............................................................................................6
4 Host country culture.................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCE..................................................................................................................................9
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Executive summary
The report has discussed about various external factors that impact on expansion of business
across various nations in order to earn higher profit margin. It has also explained about
competitive position of firm and culture of UK that impacts on proposed internationalization
process.
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INTRODUCTION
International business is defined as all such companies that engaged in business activities
in more than one country is call as internal business organisation. This report is based on the case
study of Hudson Group. Organisation operates its business operations in retail sector. Group was
established in the year 1918 and currently operating its business operations in the more than 900
locations all across the globe. Headquarter of the Hudson Group is located in East Rutherford,
New Jersey. This group serves its operations in travel retail sector. Henceforth, reports will
emphasis on a brief overview about the organisation and its products segments. Reports also
analysis about the condition of the host country based on the macro environment factors.
MAIN BODY
1 Overview of company and its products ready for internationalisation
Hudson group has established head office in Malta as well as other branches in various
locations of Europe and North Africa. It’s an international retailer and distributors which deals in
sports and fashion wear. Nike pair of shoes was firstly sold in Malta market. This is now the
boom brand of footwear in whole world. UCB which is known as united colors of Benetton was
also primarily launched by the Hudson group in the market to achieve the goal. UCB and Nike
are worldwide brand in footwear and fashion world (Newburry and Gonzalez-Perez, 2016). New
look, River Island, Timberland, Crocs, and Intersport are the major brands which are parts of
Hudson’s group. Manufacturing of goods are always being produced according to market
demands to achieve the goal. Company tries to manufacture goods according to the culture
prevailing in the country in order to make the brand name and profits. Company selection and
working with the brand name and products are always proved to be the best in the market.
Hudson group includes many brands in fashion sector of the market. Company has rights
partners to have boom in the local market of the country by satisfying the customers of the
brands owned by the Hudson group (Kasemsap, 2016). Location is the key factor for the success
of the brand, so company select the prime location to carry out its business activities for making
brands a great success in the world. Hudson have the most effective and appropriate channels to
advertise its brands between the customers in the market which results in higher sales volume of
the branded products.
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Various products and services are ready for internationalisation as the company have strong
brand image to provide qualitative products and services. Hudson has planned to export its
various products categorise such as shoes, clothes in international market to maximise its
profitability and market share (Autio and Zander, 2016). Company deals in branded clothes,
shoes that helps in meeting needs and demand of different customers range staying across world
having different taste and preferences. United Colors of Benetton and Nike are some of the
brand that company is trying to expand by entering into new market segment such as UK,
Australia etc.
2 Macro factors analysis of Host country
Macro environment refer to external factors that impact adversely on functioning of
organisations such as economic condition of particular country, demographical structure and
social preference or policies of government, technological development (Zhang and Pezeshkan,
2016). Pestle analysis model is used to analysis various macro factors of Hudson model for
smooth expansion of business in UK market. Therefore pestle analysis of Hudson Company is as
follows:
Political factors
Hudson group is planning to make its brands entry in UK due to free trade regulation act
by the country. Company gets support from the government to have trade across the globe.
Brexit is another policy where company imports and exports of products are less due to political
issue between Europe and UK.
Economical factors
Establishment of company office will help UK in generating revenue in terms of tax
charged from the company. Investment of the company will provide UK to come out of its
recession period which is currently prevailing in the country. Company will also appoint many
people to complete the task this will lead to generation of employment in the country.
Social factors
Generating of employment in the country from the Hudson group will leads to social
responsibilities (Zulkifly, Ismail and Hamzah, 2019). Every company needs to pay to the society
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as resources are used from the society to achieve the goal of the company. Hudson group by
offering branded products able to meet needs and demand of customers. People of UK like to
have qualitative products and services in order to satisfy their needs and demand thus social
factors has provided advantages to company to easily expand its business operation in UK.
Technological factors
UK will have the chance to check the technology which is being used by the company to
generating its products demands all over the world. As company travels over sea just to upgrade
its technology from place to place to make the brand name in the market. Hudson can attract
maximum number of UK customers through use of social media as they like to have shopping
while staying at home so home delivery will help in increasing sales and brand image of
enterprise.
Legal factors
Company needs to cop up with the UK law prevailing in manufacturing of products such
as labor law, consumer law, etc. Company also needs to follow safety standards during
manufacturing of products so as to take the legal responsibility of the market. Manager of
Hudson ensure health and safety of employees so that they can easily work in the organisation
and effective contributed towards company success and objectives.
Environmental factors
Company needs to manufacture its products while keeping environmental factors in mind
such as weather, climate, location etc. As resources are limited in particular area so it needs to be
uses effectively and efficiently while achieving the goals. Environmental factors may result well
for the company to achieve the profits as expected primarily.
Nationalisation competitive analysis
Hudson has gain competitive advantages in market through continuously manufacturing
unique products and services so that preference of different individual can be fulfilled. Hudson
group have good image in international market that helps in growth and success of enterprise and
achievements of organisational goals.
3 Partnership market entry strategy
Hudson group is one of the biggest retail company operating large portfolio of various
products and services with high factor of innovation , creative working parameters being highly
optimised in funnel for being one of the biggest retailer company serving its products worldwide
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(Schreier, Scherrer and Farrar, 2020). The company to expand its business into international
market horizons with globalisation factor and highly investing to bring in the funnel of gathering
the best optimum funds. Hudson brand is being one of the best innovative retail company plans
to expand its business into UK which is highly growing with large customer base and high
demand for best retail services and high quality standards which have been the high determinants
for expansion into international markets. The company will use partnership as the most
appropriate entry strategy for internationalisation procedures with various high market growth
opportunities which funnels high sales management and profits in revenue. Partnering is an
innovative strategy in market areas where culture, business and social standards are highly
different than the local partners as there is relative functional differentiation factor involved.
Partnership enables companies to expand in international market effectively with wide expansion
factors, high optimum funds and resources allocation with strategic planning for gaining large
customer base segments. Partnership can take effective variety forms with simple co marketing
arrangements with an already established brand to high sophisticated strategic alliance (Aagaard
and Eberhard Trykker, 2020). Hudson group will use partnership business model to expand its
services into UK market horizon with various parameters of working under collaboration of an
already established market and company with relative service optimisation (Kumar, Kumar and
Vivekadhish,2016).
Partnership will work as one of the most effective working structure to emerge with
already established business scenario where technical efficiency are highly strong and
prominently known to various factors. These factors enable us to analyse that partnership is one
of the foremost functional way through which countries business position work as an important
determinant for larger working segments and functional strength among consumers. Hudson
group is one of the best retailer company of Malta having high innovative portfolio of goods,
furniture and various accessories of fashion and industry of retail consumer products. Hudson
company for gaining market strength position into UK market has to functionally operate the
structure with strategic planning, management into best arenas and gather best resources of
technology which can work as resource for inputs for long time business avenues. Partnership of
marketing and functional strength to bring large evocative revenue and consumers strength
goodwill will enable in gaining higher profits. UK market has high potentiality and strength to
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gain huge companies partnerships and leverage the fundamental attributes to cater to the most
strength and higher positional revenue margins among industry. Retail industry is highly
competitive with various new companies and brands coming up with high innovation factor ,
partnership will enable brand to get best optimum place in UK market and function more
technically stronger (Tierney, 2020). Partnership will enable to deliver larger vision and stronger
developed working strength which will also positively built larger paradigms onto more
progressive developed determinant onto rational larger focus. The partnership can be focused
onto international working determinant to keenly program out vision which will program out
rational synergy and focus on more pragmatic rational synergy which will program out larger
profits, goodwill among consumer market for higher technicality and larger vision.
4 Host country culture
Hudson group is looking to expanding its business operations in the United Kingdom. As
per the ease of doing business index United Kingdom is ranked among the first top 20 courtiers
who indicates that the United Kingdom is among the prime location for expanding business at
international level. United Kingdom is also among the developed economies that also serves
effective purchasing power of customers due to its effective per capita income. Culture of the
United Kingdom is well diversified (Sit, Mak and Neill, 2017). People in United Kingdom are
very supportive towards accepting new organisations and products. Social acceptance of the
people will be an effective tool that will support the growth of the organisation in the market of
the United Kingdom. Culture of United Kingdom is open in nature which indicates that peoples
over there are acceptable towards fashionable products. Hudson Group can launch its products
on the basis of existing trends of United Kingdom and also it can launch new products in the
market of United Kingdom as the society is open to explore new products. Choices of society in
United Kingdom promote new equipments and fashion which also allows company to explore in
the products development and also channelize creative ideas and techniques.
In case of business expansion companies look for such market that is open for new
organisations associated with the market. Company also analysis the per capita income of the
target customers in the new market. In both the perspectives United Kingdom is considers as the
idle market for the business expansion in the international market. Culture of United Kingdom is
also open which will allow company to explore and channelizes creative ideas of products
development which will involve trying out new designs and fashion. Hudson Group has chosen
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the United Kingdom due to its well diversified culture and effective target customer base. Brand
acceptance is also a key aspects behind the success of the company in market (Hesham, Hesham,
and Goodman, 2019). United Kingdom social factors involves all religious aspects which also
further includes fashion, trends, diversification and the company can channelize all social
elements for entertaining growth in the market of United Kingdom. Government is also
supportive towards the business organisations in United Kingdom which is also a positive aspect
that serves growth opportunity in United Kingdom for the Hudson group. Society in United
Kingdom is also keen towards innovation which also allows company to channelize new and
creative business practices to operate different functional activities of the organisation. It can be
summarises that from the above analysis the culture and society in United Kingdom serves the
effective business environment to the Hudson Group which will support the organisation to
expand its business in the United kingdom.
CONCLUSION
This report concludes factors and parameters of international business and how various
macro environment factors relatively impacts company business structure, technological usage
and the strength of positioning into larger horizons. Report concludes Hudson company being
present in Malta actively takes strategic platform to expand into UK economy market. The report
further concludes the structure of host country, macro factors and the various investments which
are undertaken by for further business positioning into international horizons. Report concludes
how partnership will work as an evocative market entry strategy for larger market composition,
goodwill development and business services development into larger avenues.
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REFERENCE
Book and journals
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