International Business: Expansion Strategy for Next Plc in Poland

This report discusses the rationale for Next Plc to go international, recommends Poland as the target market, discusses typical barriers faced while expanding internationally, and evaluates franchising as a relevant implementation approach for internationalisation process.

International Business

Table of Contents
Executive summary..........................................................................................................................1
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Provide a brief overview of the chosen organisation and the rationale for going international.. 1
Critically discuss which country you would recommend them to enter and the rationale behind
the decision..................................................................................................................................3
Discuss typical barriers that will be faced as the organisation expands internationally..............4
Based on your analysis, critically evaluate a relevant implementation approach for the
internationalisation process for the specified target market........................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

Executive summary
It is essential for an organisation to expand and enhance its business practices by providing
its products or services to large market area. International business can be describe as the trading
of good, services, capital or technology in order to meet with the demand of customers across
national borders. This will lead to have positive impact on overall performance and growth of
business as well as help in attaining desired goals.
INTRODUCTION
International business can be describe performance of organisational activities across
national borders in order to meet the demand of potential customers. It is essential for
organisation to carry out its business activities at international level in order to significantly meet
with the requirements of customers (Ferraro, 2021). This is refers to the business which take
place across international borders as well as includes sales of goods and services between
countries. For example business which is providing its producers overseas with the motive of
meeting needs of customers as well as increasing profitability of organisation. This report is
based on Next Plc company. This organisation was developed in year 1864 and founder of this
organisation is Joseph Hepworth. Head office of Next Plc company is located in Enderby,
England, UK. Next Plc company is dealing in retail market area and it products or services
includes fashionable cloths, accessories, footwear and so on. This report includes rationale for
going international for business. It includes recommendation for business to enter a company
along with the rationale behind the decision. This report consist of typical barriers that is faced
by organisation to expand business internationally. Apart from this, it includes evaluation of
relevant implementation of approach for internationalisation process for a specified target
market.
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MAIN BODY
Provide a brief overview of the chosen organisation and the rationale for going international.
Next Plc is one of the well known organisation that is providing high quality products and
services to different market area (Backus, Kehoe and Kydtand, 2021). This is a British
multinational clothing, home products and footwear company that is conducting its business
practice in retail market area. Next Plc company was formerly organisation of J Hepworth & Son
for year 1864 to 1982. This organisation is a public limited company that is offering products as
per the requirements of potential customer. Headquarter of Next Plc company is located
Enderby, England, UK. It is important for Next Plc company to expand it business at
international level in order to increase its customer base (Buckley and Casson, 2021). There are
various benefits and advantages that could be attain by company by conducting business
activities at international level as well as help in enhancing overall performance of organisation.
Rationale of going international for Next Plc company is mention below in detail –
 Increased revenues – One of the crucial rationale for Next Plc to go international includes
that it will lead to increase revenues of business. It is essential that company is providing
its products and services to international market area which the motive of targeting more
customers as well as increase sales. This will lead to have direct and positive impact over
increasing revenues of business. going international can be describe as the opening a new
pathway to business growth and increase revenues of organisation.
 Decreased competition – it has been determined that by going international respective
company is able to decrease competition. This is beneficial for organisation in order to
grow and develop its business. decreased in competition will lead to positively affect
functioning of business and help in enhancing sales.
 Effective risk management – By going international, Next Plc company is able to
effectively manage risk as well as improve performance level of organisation. It is
essential for company to expand its practices at international level as international trade is
market diversification. Through this, respective company get opportunity of providing
new products to new customers. This is very useful for reducing risk as well as accurately
managing risk practices.
 Improve customer base – It has been analyse the international functioning of business is
beneficial for improving customer base of organisation (Verbeke and Yuan, 2021). This
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is effective for attracting and retaining large number of customers form different
international market area. This will lead to directly improve customers of Next Plc and it
is able to offer products and services to more customers base.
 Enhance reputation of business – the rationale of going international includes enhancing
reputation of business. It has been determined that by offering products and services at
international level respective company is able to develop positive and strong image in
customer mind. This play crucial role in attract customers as well as improving overall
sales of business.
Critically discuss which country you would recommend them to enter and the rationale behind
the decision.
It has been identified that Next Plc company is offering its products or services to
different international market area. It is recommended that Next Plc company needs to expand its
business operation and improve sales of products in Poland. This is country which is located at
the central of Europe (Christofi and et.al., 2021). This is one of the effective country in which
respective company in provide its products and services in order to increase overall sales and
revenues. It is crucial for organisation to analyse and evaluate different aspects before taking
decision for expanding business. It is essential that manager of Next Plc company is identifying
and determining different aspects in order to take correct and accurate decision for improving
business practices at international level. There are various benefits that could be attain by Next
Plc company to expand business in Poland. This country is providing effective talent acquisition,
human resources or professional employer organisation that is significant for conducting
business activities in effective and efficient manner. This will help performing business functions
in accurate manner as well as develop positive image of company. Poland country has population
of approx 38.5 million people and this will lead to increase in sales of business. it has been
analysed that with high population it increase the chances of enhancing sales of products and
services provided to customers. Poland country is very rich in natural resources and the primary
minerals produced which helps in enhancing overall functioning of business. All of these factors
can be consider as the rationale for the decision making. it is crucial that Manager of Next Plc
company is analysing and evaluating these aspects of Poland in effective and efficient manner in
order to increase its performance as well as improve overall sales and revenues (Shams and et.al.,
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2021). It is essential that Next Plc company is expanding its business at Poland market area in
order to gain several benefits and accomplish desired goals.
Discuss typical barriers that will be faced as the organisation expands internationally.
There are several challenges and issues faced by organisation while expanding its
business practices internationally. It is important that company is analysing or evaluating
different aspects of business in order to take right and accurate decisions. The typical barriers can
be describe as the issues that will lead to have negative impact on business while expanding its
products and services at international level (Czinkota, Khan and Knight, 2021). Due to these
barriers decision of organisation to enhancing its practices at international level can be
negatively influenced. Because of barriers faced by organisation to expand internationally
includes that negative impact on performance and productivity of business. it is important for
respective company to carefully analyse these barriers in order to take right and appropriate
decision for expanding business internationally. Different barriers that could be faced by Next
Plc company in order to expand its activities as well as providing products and services at
international level is mention below in detail –
 Language and cultural barriers – This can be consider as one of the crucial risk which
will lead to have negative impact on business. Due to lack of information about
languages and culture of Poland market area, it will be very difficult for manager to take
to right and accurate decision for growth and development of business. Language barrier
can be describe as the issues which occur due to lack of understanding of the Language.
It is essential that staff of Next Plc company is well ware regarding the local language of
the Poland market area with the motive of taking right decision. It has been analysed that
cultural barriers will negatively influence functioning of business. Due to inappropriate
understanding about the Poland culture, Next Plc company will not be able to take right
and effective decision for growth of business. This barrier will influence performance and
practices of Next Plc company in Poland market area.
 Local competition – This barrier can be describe as the issues or problems which is
created due to effective performance of local business. High competition in market area
will lead to have major negative impact on business and it will lead to directly influence
sales and performance of business (Curran, Eckhardt and Lee, 2021). it is essential that
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respective company is analysing and evaluating impact of local competition before
decision making for expanding internationally. The local competition can be consider as
the serious issue or barrier for business as it will directly affect sales and profitability of
business. If customer of Poland market area have more trust on local companies then they
will not purchase products form Next Plc company. This will lead to have major impact
on decision making or practices of respective company at international market area.
 Tax code and compliance issues – This is one of the crucial barriers which lead to affect
business performance and its decision making at international market area. tax code as
well as compliances issues can be consider as the major factor that affect functioning of
Next Plc in Poland market area (Rose and et.al., 2021). It has been determined that
dealing with taxes is the crucial and complex part of business. There are different issues
faced by company while dealing with trade taxes and compliances of new international
market area. it has been identified that dealing with the taxes, tariffs as well as fees for
international trade can be consider as the crucial obstacle for companies. it is essential for
Next plc company to gain proper understanding regarding tax code as well as
compliances of Poland in order to expand its business practices at international level.
This is very challenging and time consuming process. This will also lead to increase the
cost of business to deal with compliances issues in significant manner.
 Risk of supply chain – While conducting business at international level respective
company have to maintain effective and efficient supply chain. There is high risk of
supply chain management while expanding business activities at international level. This
barrier will lead to have negative impact on overall performance of business as well as
affect functioning of business. Risk of supply chain can be describe as the problems that
is faced by company while importing, exporting, shipping as well as performing logistic
practices. It has been analysed that management of supply chain is one of the crucial
challenge for business and it will lead to negatively influence functioning and
performance of business (Peleckis, 2021). It is important that respective company is
taking right and accurate decision for dealing with the issues of supply chain. This will
help in timely importing or exporting of products or good with the motive of meeting
customers and business needs.
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 Operational issues – This can be refer as the problem which is faced by company to
conduct its day to day operation. It is very challenging for Next Plc company to conduct
its operations in effective and efficient manner. operational issues will lead to have
significant influence on decision making of business as well as providing high quality
products to customers. This can be consider as the crucial barrier for Next Plc to expand
internationally at Poland market area. It will be difficult for respective company to
manage its staff member successfully in order to attain desired goal and objectives. This
will lead to have major negative impact on overall performance or capability of business
to attain desired goals. Operational risk will lead to negatively influence day to day
functioning of business and lead to negatively affect business practices.
 Managing global team – This can be consider as the issue or barrier for organisation as it
is more complex for Next Plc company to successfully manage activities at global
market area. respective company is performing its practices in different market areas that
includes various teams. It is crucial that teams of Next Plc company is conducting its
activities in significant manner in order to attain desired goals as well as meet with the
expectation of company (Peleckis, 2021). It has been analysed that managing global
team is very crucial for business and it will influence functioning of business. this barrier
for expanding business at international market will lead to influence decision making or
activities of business.
Based on your analysis, critically evaluate a relevant implementation approach for the
internationalisation process for the specified target market.
Internationalisation process can be describe as the procedure of enhancing international activities of
organisation. It is essential that internationalisation process of respective company is performing in
effective and efficient manner with the motive of attaining desired goals. The process of
internationalisation could be performed through exports, direct purchase of a factor in new market area.
There are different approaches that is significant for implementation of internationalisation process of
Next Plc company in Poland market area. Respective company can expand its business as well as provide
products or services through various modes such as direct exporting, licensing, franchising, partnering,
joint venture and so on. All of these are effective approaches for implementation of internationalisation
process in order to effectively and efficiently conducting business activities. It has been analysed that for
Next Plc company franchising is the most effective approach in order to successfully implement
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internationalisation process. This will lead to have positive impact on business as well as assist in
enhancing overall performance of business.
Franchising
This can be describe as the form of distributing products and services in which owner of the
organisation grants to an individual or group of individual that right to run a business in order to sell
products or provide services with the support of franchisor business system. Through this approach of
implementing internationalisation process franchises gives permission to use branding, trademarks as well
as identify marks under specified guideline (Curran, Eckhardt and Lee, 2021). This is well known and
effective way of enhancing products and services at different market area as well as improve performance
level of business. This approach can be consider as the license that is provided to franchisee access to
franchisor proprietary business, knowledge, process and so on in order to conduct its activities effective
and efficiently. This is a legal way through which operations of a firm can be successfully and effectively
performed at different international market area. There are benefits and drawbacks of franchise that will
lead to have impact over internationalization process of business as well as affect its functioning at new
international market area. Advantages and disadvantages of franchises are mention below in detail –
 Advantages – Franchises are significant and effective for respective company as it will provide
opportunity to grow and develop its business. Through effective performance of franchises, Next
Plc company is able to develop positive and strong image in market area. this will lead to attract
more and more customers towards business. through franchising approach of internationalisation
process respective company is able to reduce cost of business. This is significant for enhancing
revenues and profitability of business. It has been determined that each franchisee is responsible
for financing their own outlet. Through this respective company is able to get royalties and fees
for providing its products and services. The main advantage of franchises is that it helps in
managing business practices successfully. It is more easier for respective company to successfully
and effectively manage its practices in order to meet with the demand of customers. Through
franchises respective company is able to develop a brand and it will provide benefits from the
capital investment.
 Disadvantages – There are some issues or drawbacks which are associated with the
franchising business. it has been identified that franchising is not the solution to provide
injections of capital form other people when business is facing difficulty. This approach
of internationalisation process can not be considered when respective firm is not able to
conduct its task and activities in effective manner. another drawback of franchising is the
time (Curran, Eckhardt and Lee, 2021). This is one of the major issues that is affecting
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performance and functioning of business. it has been identified that franchising business
is very time consuming and it is important to invest huge time while expanding business
at international level. It has been analysed that cost of franchising in business includes
significant amount of financial investment. Due to this reason most of the people do not
considering conducting business practices through franchises.
CONCLUSION
From the above report it can be concluded that international business are very crucial in
today’s market area. International business is effective way in order to provide products and
services. It is essential for organisation to determine different aspects and elements in order to
consider right and accurate country for performing its international practices. It has been
analysed that there are various benefits that could be accomplished by organisation. Through this
organisation will be able to increase its revenues and growth of business. It is crucial that
company is analysed different aspects of business in order to take right decision for selecting
country. This will lead to have major impact on overall performance and development of
organisation. It has been analysed that there are different barriers which is faced by organisation
while expanding internationally. Apart from this, it is crucial for company to consider franchise
approach in order to implement internationalisation process.
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REFERENCES
Books and Journals
Ferraro, G.P., 2021. The cultural dimension of international business. Prentice Hall.
Backus, D.K., Kehoe, P.J. and Kydtand, F.E., 2021. 11 International Business Cycles: Theory
and Evidence (pp. 331-356). Princeton University Press.
Ghauri, P., Strange, R. and Cooke, F.L., 2021. Research on international business: The new
realities. International Business Review, 30(2), p.101794.
Buckley, P.J. and Casson, M., 2021. Thirty years of International Business Review and
international business research. International Business Review, p.101795.
Verbeke, A. and Yuan, W., 2021. A few implications of the covid-19 pandemic for international
business strategy research. Journal of Management Studies, 58(2), pp.597-601.
Christofi, M. and et.al., 2021. Agility and flexibility in international business research: A
comprehensive review and future research directions. Journal of World Business, 56(3),
p.101194.
Shams, R., and et.al., 2021. Strategic agility in international business: A conceptual framework
for “agile” multinationals. Journal of International Management, 27(1), p.100737.
Czinkota, M., Khan, Z. and Knight, G., 2021. International business and the migrant-owned
enterprise. Journal of Business Research, 122, pp.657-669.
Curran, L., Eckhardt, J. and Lee, J., 2021. The trade policy response to COVID-19 and its
implications for international business. critical perspectives on international business.
Rose, L., and et.al., 2021. An Overview of the International Business Environment. International
Journal of Global Business, 14(1), pp.1-12.
Peleckis, K., 2021. Negotiations strategies in international business.
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