International Business Operation: Management of an International Business

This report discusses management of an international business with four detailed questions ranging from decision making, analysing the markets, marketing, expansion and human resource management. It also includes a macro environmental analysis of India and a marketing mix analysis for Walkers Crisps in Japan.

Running head : INTERNATIONAL BUSINESS OPERATION
INTERNATIONAL BUSINESS OPERATION
Name of the Student
Name of the University
Author Note

1INTERNATIONAL BUSINESS OPERATION
Table of Contents
Introduction......................................................................................................................................2
Answer to Question 1......................................................................................................................2
Answer to Question 2......................................................................................................................4
Answer to Question 3......................................................................................................................6
Answer to Question 4......................................................................................................................9
References......................................................................................................................................12

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Introduction
With the increase in globalization, various businesses have an idea of expanding their
business to the international markets. The given report will be discussing four detailed questions
with regard to management of an international business (Cascio 2018). The questions range from
different departments and components of a business such as decision making, analysing the
markets, marketing, expansion and human resource management.
Answer to Question 1
The case suggests that the business sells extremely high tech optical products which are
presently manufactured in London. The company is on a strict budget and plans to send three
expatriates to set up the business properly. The three main expats that should be sent to
Argentina are a product specialist, an unlocker and an auditor.
The product specialist is required to be sent because when a new venture is being started
it is extremely important to see to it that a responsible specialist manager is present who has an
idea of the use of machinery and is aware of the installation process. Hence, one Physicist or a
Physics engineer would be required to be sent. The product specialist will be able to guide the
factory workers as to how organize and maintain systematic procedures with regard to the
functioning of the business in Argentina (Bratton and Gold 2017). Very often, during expansion
plans, when a product specialist is missing, the foreign workers try to take advantage of the
situation and the idea fails. If the person has the ability to speak in Portuguese then it would be
better for him to adapt to the surroundings. Knowledge of the local language is extremely

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important as it helps in understanding the problems aced b the local employees. The specialist is
advised to have the experience of project management.
Next in line is the unlocker. The unlocker refers to the person who is an excellent
knowledge of the laws and legislature of the company. Knowledge of the laws and legislature in
a foreign land goes a long way in keeping the business in a safe zone. It is advised that the
person has extensive knowledge about the Brazilian rules and regulations. It is also suggested
that the person is aware about the governmental agencies as well as the tax system of the country
(Renwick, Redman and Maguire 2013). A business is generally set up to earn profits and hence
the tax structure is quite relevant. The person needs to understand the income, production and
consumption details of the sales.
It is advised that he has extensive knowledge about acquisition. This employee must know the
Brazilian foreign trade rules and laws. He must be familiar with the government agencies
involved and the taxes both for production and sales. It is very confusing, because Brazil taxes
heritage, consumption, income, production and property. It is advised that he has a knowledge of
acquisition would help.
The third expat who should be sent to Argentina is an auditor. The auditor will make sure
that all business transactions are carried out successfully and that keeps a check on the various
activities of the firm. It will be his job to check all balance sheet and other statements
(Marchington et al. 2016). There exists certain difference between an accountant and an auditor.
An auditor is usually external to the business operations and functions as a facilitator of
perfection. The auditor will be checking whether all the operations are being carried out
according to the set rules and regulations.

4INTERNATIONAL BUSINESS OPERATION
Answer to Question 2
The given question is related to decision making. In the given case study an Indian
company plans to expand the business and has various options. The business relates to
competitive automobile industry (Purce 2014). The company is open to three locations which re
the United Kingdom, the Czech Republic and the Spain. Hence, in order to select a suitable
location which will help the company in serving the European market, the given comparative
analysis has been done in order to compare the three companies with respect to certain point of
distinctions like Government legislature, level of technology, labour costs, Operational costs and
Infrastructure.
Components UK Czech Republic Spain
Government
Legislature
The government
legislature in the
United Kingdom is
very strict. They have
laws pertaining to
almost all the aspects
of the business. This
makes it extremely
business for an
organization to
function (Wild, Wild
and Han 2014).
Although the
environmental
analysis of the
country is good, it is
not suitable to set up
the business there.
The government there
functions in a
different manner
which makes it
difficult for any
business to set up out
there.
Spain has a good
business environment.
There exists certain
laws however; they
are not as strict as in
the other countries.
The government
wants to promote its
business and is
therefore providing
various business
opportunities for other
business houses to

5INTERNATIONAL BUSINESS OPERATION
work and set up their
business there.
Operational Costs The operation costs
are extremely high
The costs are quite
huge
Spain has
comparatively low
costs
Cost of labour The labour costs are
very high with high
with high wage rates
The labour costs are
medium with
comparatively high
rates of wages
(Cavusgil et al. 2014)
At Spain, the cost of
labour is quite low
with low wage rates
Infrastructure The infrastructure in
the country is very
well developed
The infrastructure is
not suitable to set up a
company with the
current global
requirements.
The business and
infrastructure is very
well developed
Transportation UK has a good
logistics system
It does not have a
good logistics system
Spain has an adequate
system of logistics as
compared to Czech
Republic.
Technology The country has an
access to advanced
technology
Czech Republic has a
medium level of
technology
Technology is well
developed at Spain
Ease of doing Not always, due to Even at the Czech Easy due to presence

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business various restrictions.
Conducting a business
at United Kingdom
means a business has
to go through various
steps and legislative
procedures (Armstrong
et al. 2015).
republic, the
government is quite
strict about
conducting the
business and hence it
is difficult to conduct
the business.
of various subsidies
from the
government`s side in
order to boost the
Foreign Direct
Investment.
Portugal
From the given analysis it can be stated that for the company based in Mumbai, the best
available alternative is Spain. If the company sets up its business in Portugal, Spain it will benefit
because of favourable conditions. The airport system in the given place is extremely well
developed which makes it easier for the firm to operate in the given market. The financial
systems are also very adequate along with the education and training. In that manner, the
company will be able to hire good employees and prosper (Beamish 2013).
Answer to Question 3
In the future, a country which will be able to overtake China in the merchandise sector.
This will be explained by conducted a macro environmental analysis of India where the labour
costs, transportation and other relevant costs will be discussed. India has a business friendly
environment as it is a developing country which is constantly planning to expand its operations
and therefore it taking over the Chinese is easier.

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The merchandise industry of India will be discussed along with the pestle analysis of the
country.
Figure 1: Expected retail industry growth in India (Hill, Jones and Schilling 2014).
The retail industry in India aims to become one of the most fast paced industries in the
country and has been successful in this domain. The retail industry of India accounts for its 10
per cent GDP and gives employment to around 8 per cent of the people. Due to the fast paced
growth rate of the internet, urbanization and middle class population recently becoming affluent,
India has become a paradise for the retail arena. As per Barney (2014), the market size of the
country will increase by 60 per cent and will reach around US$ 1.1 trillion in two years.
The primary reason why the dynamics have changed and the ball is now in India`s court
is because the country has witnessed an extremely high growth rate due to the increase of the
young generation and changing lifestyles of the middle class population. The second reason, the
country has been able to improve its retail industry has been due to its increased growth in the

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merchandise sector. The given section has analysed the external environment of India through
PESTLE Analysis which will help to understand the Indian scenario in a better manner.
Factor Relevance to India
Political The current government is extremely motivated
towards promoting the business aspect in the
country. The motto Make in India has been
favourable for various business policies,
government legislations and taxes. The country
also provided various incentives for the local
businesses which makes the country a paradise for
any new company.
Economical The economy of the country has been growing at a
tremendous rate and is quite stable. Recently, the
company started the Goods and System Tax
Regime, which makes its operations further
organized (Wheelen et al. 2017).
Socio-Cultural The population of the country is high and a
majority of this population is the young crowd
which is more inclined towards entrepreneurial
skills, making the country suitable for a growing
retail sector.
Technological Technology goes a long way in determining the
business environment of any country. India is well
vested with good connectivity, machines and 3g as
well as 4g connectivity. The government is trying

9INTERNATIONAL BUSINESS OPERATION
to support the local industries as well to compete
with the foreign markets.
Legal Various legal changes like minimum wage rate
have had a huge impact on the various industries.
The process of recycling has also influenced the
country`s business atmosphere.
Environmental This is the only aspect which is not adequate in
India and there exists a huge amount of air
pollution as well as water pollution in the given
country (Wilson et al. 2016).
From the various factors it can be witnessed that India has all the suitable factors for overtaking
the excellence of the merchandise industry from China.
Answer to Question 4
Walkers Crisps Marketing Mix Analysis for Japan
Products
A product can be defined as a set of offerings made by the company that help a firm to
gain popularity in the market. However, according to De Mooij (2013), as the company plans to
expand its operations to the given country it needs to look after the attractive offerings in Japan.
The walkers have introduced a wide variety of products which include French fries, squares,
sticks, max, cheese and bacon mix, salt shake, quavers and others (Walker.uk 2018). It can make
several customizations to the given product like offering reduced sizes to ensure trial testing and
adding their cuisine tastes to attract and retain the population

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Price
The price of the product refers to as the value of the product which the customer is
willing to pay for the particular product. Slack (2015), states that the price of the product needs
to be set according to the market segment and consumer chosen. In UK the price is 30p to 2.50
pounds but the prices may vary according to the different markets. In Japan the prices can be set
according to different standard and income of the customers. The people in Japan do not have an
income level same to that of the United Kingdom and therefore it is essential for the company to
reduce the price in order to attract the consumers.
Place
Place refers to the places where the given product will be sold. Generally snacks like the
Crisps are sold in local markets and super markets. In Japan, the chips can be sold in various
stores, mini markets, and super markets. Targeting areas like schools and colleges is advised
because the younger generation and the school kids are extremely fond of crisps and hence the
given place is suggested.
Promotion
Promotion refers to the advertisement strategy as adopted by the firm to attract the
customers. The promotion can be done through normal marketing which includes advertisement
in television, magazines and newspapers. Various campaigns can also be set up so that the
customers get attracted to the product. Social media advertisement can be done using mass media
as a huge percentage of the Japanese population use various social media applications.
Personnel

11INTERNATIONAL BUSINESS OPERATION
The personnel refer to the people who are appointed to promote the product. In Japan, it
is suggested that the company employees the local employees as Japanese is a difficult language
for expats but is widely spoken in the country.

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References
Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction.
Pearson Education.
Barney, J.B., 2014. Gaining and sustaining competitive advantage. Pearson higher ed.
Beamish, P., 2013. Multinational joint ventures in developing countries (RLE International
Business). Routledge.
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Cascio, W., 2018. Managing human resources. McGraw-Hill Education.
Cavusgil, S.T., Knight, G., Riesenberger, J.R., Rammal, H.G. and Rose, E.L.,
2014. International business. Pearson Australia.
De Mooij, M., 2013. Global marketing and advertising: Understanding cultural paradoxes. Sage
Publications.
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated
approach. Cengage Learning.
Marchington, M., Wilkinson, A., Donnelly, R. and Kynighou, A., 2016. Human resource
management at work. Kogan Page Publishers.
Purce, J., 2014. The impact of corporate strategy on human resource management. New
Perspectives on Human Resource Management (Routledge Revivals), 67.

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Renwick, D.W., Redman, T. and Maguire, S., 2013. Green human resource management: A
review and research agenda. International Journal of Management Reviews, 15(1), pp.1-14.
Slack, N., 2015. Operations strategy. John Wiley & Sons, Ltd.
Walker.uk., 2018. Walkers Crisps | Walkers UK. [online] Available at: https://walkers.co.uk/
[Accessed 6 Mar. 2018].
Wheelen, T.L., Hunger, J.D., Hoffman, A.N. and Bamford, C.E., 2017. Strategic management
and business policy. pearson.
Wild, J.J., Wild, K.L. and Han, J.C., 2014. International business. Pearson Education Limited.
Wilson, A., Zeithaml, V., Bitner, M.J. and Gremler, D., 2016. Services marketing: Integrating
customer focus across the firm. McGraw Hill.