International Business: Overview, Rationale, Obstacles, and Implementation Approach

This report provides an overview of Oak Cash & Carry Limited's international business, rationale for going international, obstacles faced by management, and an analysis of the implementation approach for internationalisation process. The report also recommends India as a potential market for the company. The Uppsala model is suggested for the company's international expansion. Subject: International Business, Course Code: NA, Course Name: NA, College/University: NA.

INTERNATIONAL
BUSINESS

Table of Contents
INTRODUCTION................................................................................................................................3
Overview of the company:...............................................................................................................3
Rationale for going international:....................................................................................................3
Gravely which country would justify them to arrive and rationale afterwards decision.................4
Distinctive obstacles faced by management in manner to enhance internationally........................6
Analysis of implementation approach for internationalisation process ..........................................7
CONCLUSION ...................................................................................................................................9
REFERENCES...................................................................................................................................10

INTRODUCTION
The report is based on International Business which defined as selling of products and
services and acknowledging beyond public borders at worldwide or scale of transactional. It
includes production of products and services between more than countries (Verbeke and Yuan,
2021). Organization is OAK Cash & Carry limited that is situated under Banbury, UK. As it is
component of Grocery and related products of them in business of wholesale merchant. This
includes house of firm registration as per government rules and legislation. It will provide company
overivew of above chosen firm and rationalize for towards deriving as internationally. By
considering India that come in market of rationale behind decision making process. Also, identified
different obstacles that observed by company towards expanding as internationally. This is based on
analysis of determining specific framework of implementation for methods of internalisation for
particular focused on sector in order to enhance its company as globally. It will provide company a
basis for expanding their business as internationally in market sector.
Overview of the company:
Oak cash and carry limited company is the UK's retail company. Company is located in
BANBURY, United kingdom. Company has employee of 37 people. It first started in the year 2000
in British market. They have product of non specialized food, beverages and also tobacco.
Company has annual cash of €11,523.00, they have total cash or asset of €321,395.00 and company
also have their work capital €46,450.00. Company is related to the grocery and merchant whole
seller as they also have product beer, wine along with food and beverages. Their aims is to exapnd
their business as internationally in order to increases their productivity in market.As their successful
entry in the market company need to expand internationally to increase their customer base or to
earn more revenues for their company (Kourula, Pisani and Kolk, 2017).
Rationale for going international:
As rise of globalization is increasing the opportunity for the organization to expand their business
internationally it gives the variety of benefit to the company through which they can easily increase
their revenues. So, for that they do several work in order to rationalize them as nationalwide. Some
reasons are as follows-
To enhance the revenue potential:
When company have great potential in their native country to produce the desired result, they think
of extending their business which allow them to produce more good revenues for their company.
Therefore, Oak cash and carry company also want to expand their business in international market
to develop the better opportunities for the growth of their business. It will allow them to explore the

international market and through which they will make the product which will be able to produce
desired result for them. It is essential for expanding potentiality of revenue in order to gain
sustainability in market by deriving in several aspects for these to produce available outcomes.
To enter into the international market:
Once the company is settle in their native market its time to move in international market. For that
purpose Oak cash and carry company need to do a proper research of the market in which they are
planning to establish their business. Proper strategy and research help them to design a product
according to the customer need and requirement. By moving into sector of internationally growing
business in productive manner towards leading their organization in their several services that they
provide to their customer in order to increases sustainability gowth in market.
Increase the customer base:
Other benefit of expanding the business internationally as it gives new customer base to the
company. Therefore, it allows the organization to diversify their product to attract the customer it
also make the stable position of the business in the market. Therefore, oak cash and carry company
can also able to develop customer base by offering them a reliable and affordable product so that it
will help them to earn more profit for their business. Also, rise their consumer by enhancing
company as internationally, increases customer by which their production takes place in an effective
manner towards leading their business in growing. Through this satisfies needs of customer in
accordance to their perspective and develops base for organization in order to diversification of
goods and services towards making sustainability in their position.
Better reach to the talent:
Internationally expansion of the business allow the company to hire the fresh talent of the
international country. They develop creativity in employees through conducting their business
internationally boost company productivity in market by expanding their organization in several
manner. Therefore, they get the advantage of hiring new talent of that country which gives the
advantage as candidate is connected to their community if company hire them so that it will be
helpful for them to convince the communal or societal people to buy their product. It gets benefits
in determining best talent for company in order of acquisition through nationalwide. Also hiring a
native candidate can also help in interacting with the customer in international market. So, Oak cash
and carry company can conduct a pool interview in international market to hire the fresh talent who
respond better to increase their revenues (Buckley, Enderwick, and Cross, 2018).
Gravely which country would justify them to arrive and rationale afterwards decision
In above company that is expanded as internationally, recommended country will be India,
as it derives many factors as internal as well external factors that helps organization towards leading
in different sectors. It is provided in production of products and services to growing company in

different aspects for it. Towards enhancing their business as internationally in regard to above
context. That is determined by PESTEL analysis of India, elements of its helps in identifying
different aspects by which organization expands as rationalize in sector to growing their business in
way to suggesting them to afterwards in making decision. These are;
Political-
As India, comes under one of the biggest democratic in global, it runs on civil pattern of
government. In these country structure of taxation is well-established and different taxes are driven
by union government (ARUNACHALAM and FOUNTIS, 2021). Also, privatization is impact and
government motivates free company by differentiate of tasks. It will create influence on market of
capital for long period of time, that occurs in their issue as politically of India due to appraisement
in crises of politic.
Economic-
This element in regard to India, creates important stability, by reason of introducing
amendment of industrial procedures. By this, decrement in getting licensing of company,
liberalization of overseas capital etc. that driven result as in consistent advancement of India's
surroundings of economic. Also, improved the rate of GDP by growing in several manners that may
help in rationalize business. As these elements helps in gaining profitability for their company in
order to expand sustainability growth of business as internationally towards which expansion in
their productivity of products and services.
Social-
By increasing in India growing population outcomes by considering enhancement in money
of pensioners and rise in employment of employees who work from long time in organization. Its
system incorporates flexibility, in study, behaviour of work etc. from which maintains sustainability
growth in market. India is comes under diversification of land, by getting awareness about their
culture, expansion in population etc. by which increases demand and supply of products.
Technological- It essentially impacts on enhancement of product and propose new money- cutting
methods. India is served both technology services of 4G and 3G, that provides facilities in various
tasks for their up-gradation (Banerjee, 2021). This will also occupy one of powerful sectors of
information technology in globally, build up enhancement in this sector by upgrading software and
other aspects of its. Through determining distinctive facility in their technology expands business as
internationally by rationalize India in above sectors.
Environmental-
In India, there are benefits in these factor because of raising demand of environment friendly
goods and methods between consumers. Which has revised supply and demand framework in
compelled to change takes place in their planning towards accepting these remade. It will create

negative impact on economical also, due to lack of resources available in sector of market, rising in
pollution that affects environment badly in numerous way. So, by rationalize their decision-making
in India, will benefit for UK company of above chosen firm in regard to these. This can expansion
gains more tourists that rise in economy of country's and business.
Legal-
There are several changes takes place in elements of legal which has been considered in
India, that are rising in the least wage rate which will directly impact on company. It will derive
benefits in this also, advertisement, policies regarding copyright and others procedures of it. That
are made up for especially countries of foreign (Dilip and et.al, 2021). So, helps in selling
opportunities in country of India. Through foreign expansion of brand by rising benefits in their
growth of business by flexible in their rules and laws as selling in country by labouring of money
cost.
These factors help in rationalize decision of India by recommended it towards expansion of
business at platform of internationally in order to increase their sustainability growth in market.
That helps in examining of macro environment elements, by developing its nature and growth
towards earning profitability in given organization. India is only country which is best for above
organization in growing their industry in different sectors through internationally.
Distinctive obstacles faced by management in manner to enhance internationally
There are several changes observed by company in way to expand business as
internationally due to different changes arises because of enhancing as globally. The obstacles are
explained below;
Language and civilizing obstacles- This is major issue that faced by company, every country has
different language and cultural diversification is seen. Due to which create problems in
communication with customer as challenging role comes because of knowing proper language of
other country. Also, company have different culture as compared to other company which is in other
region (Bohnsack, Ciulli and Kolk, 2021). So, develop cultural differences through diversification
of products and services takes place in organization from several ways that leads towards
decremental in productivity of above company.
Competition on local basis- As expanding business internationally, competition also arises in area
of local as contains challenges for organization by enhancing their business globally. Due to dealing
with currency of two regions develops issues in their functioning of services. So, by competitors
gains profitability as compare to this organization. Competition arises in day to day life because of
coming various organization in market through diversifying area of business (Notani and Jain,
2021). It is seen in each level of when performing work in distinctive area that builds competitive
environment for Oak Cash & Carry Limited because of expansion their industry as internationally

basis. So, facing this barrier is enormous for company in regard to company. Though creates
decrease in products and services and also fails to attain organization aims and objectives towards
leading as globally.
Lack of supply chain- In regard to organization, there is problem deal with management of
supplying products and services to other countries that comes under exports of products and
shipping etc (Finkenstadt and Handfield, 2021). As supplying in different country many procedures
has to be followed that consumes time and also may occur in failing towards production of services.
This comes as result in decremental of importing and exporting of products and services as
internationally. Due to which many problems in shipping of products of their such as food, beverage
etc. in manner fails to provide customer that they want by creating several obstacles in function of
shipping. It expands business as internationally by crossing to distinctive boundary occur major
changes in its process of supplying or trading of goods and services through diversification of
country. Through which leads towards in accordance to develop obstacles for company by fails to
attain aims and targets of Oak Cash & Carry Limited to expand their business as internationally
through rationalize as different aspects of its.
Analysis of implementation approach for internationalisation process
The Oak cash & carry limited is a UK company which provides cash and carry services. The
company provides a range of products for retailers, offices and other local businesses etc. It can
expand its business in international market, through the use of Uppsala model. This model
subdivides into four steps, in which the various steps indicate the business activities depending
on the market experience gained by the Oak cash & carry during the process of development and
expansion (Santangelo and Meyer, 2017).
Step 1- No regular export activities
In this starting stage the local company starts to enter in foreign market but does not export
on a regular basis. As market knowledge is limited and experience is gained by chances not
systematic. With the above scenario, Oak cash & carry initially will establish itself in the domestic
market and then increase its commitment and resources in the targeted market. Further it will
proceed with the concept of internationalization in which the company enter in Indian market where
it lacks behind in the process of not exporting goods and services on a regular basis. Being lack of
market knowledge in targeted country and the difference between culture, traditions, languages,
external factor etc. will affect the overall productivity of the company. The Oak cash & carry
limited has many external threat such as availability of different competitors in the targeted market
(Sadeghianfar and Mohammadizade, 2020). By lack of market knowledge and experience of foreign

market, the oak cash & carry limited which is newly entering into the Indian market, needs to tackle
the various problems according to the experiences gain simultaneously. It can't be capture or
gathered from the past data.
Step 2 – Export via independent representatives
In this step, the company exports systematically by using the agents. This is called as
indirect export which provides the company with some experiences and market knowledge about
the customers in the targeted market.
After considering the situation of stage one, the Oak cash and carry limited will exports its goods
and services in a systematic manner with the help of agents available in targeted market of India. By
exporting indirectly, the oak cash and carry limited will get some experiences and market
knowledge to understand the Indian market in appropriate way. This will lead to understanding the
customer taste & preferences in targeted market.
Step 3 –Establishment of a foreign sales subsidiary
This step signifies that if the company is willing to commit itself to more export than it will
take over the middleman's operations and try on its own to export in other market. This means that
the firm has to have the necessary knowledge and information about the market and how to
establish its own operations. In regard to this, if the Oak cash and carry limited is successful in
exporting with the help of agents in India, then the company will take its own initiative in
expanding their products and services on their own level. Further, the Oak cash & carry limited will
understand the Indian market in context to their knowledge and gathers all necessary information
which is related to the market and customers. After this, it will establish its identity and take their
own operations for exporting goods and services. It will remove the agents cost and leads to
enhancement of their business internationally.
Step 4- Foreign Production or Manufacturing
The final step is to establish the production facilities of the company in the market it already
exports to. This happens as the company has feeling of having enough knowledge and wants to gain
locational advantages. Of course, it can always be that it is forced to offshore as regulation demands
this or risks like currency risks can hedge this way.
On the completion of the operations of exports by oak cash & carry limited. The company Oak cash

and carry will now establish its production facilities in India. This will only happen when the
company gets enough knowledge and experience about the market of targeted country. From this,
the company will easily gain the marketing advantage and will remove certain competitors. This
process will lead to transfer of resources and technology from local country to foreign country.
The Uppsala model will help the Oak cash & carry limited in making expansion of goods
and services over the international market. As this model is a step by step process which describes
how companies can increase their investments and activities in foreign markets(Wu and Vahlne,
2020). From the above discussion it has identified that this model has benefited the company in
certain internationalization process such as-It deals with indirect exporting of product through
external export agents. It is considered as low costing method to enter into foreign markets. And it
also increases the sales and captures great customers from foreign market. Whereas there are certain
drawbacks has been identified by using this model such as there is lack of knowledge in the initial
stage as exporting is done with the help of agents. It requires additional cost to know the market
scenario of other country.
CONCLUSION
From the above report it can be concluded that an organization can expand and develop its
business by serving their products and services across the nation’s borders. It involves cross-border
transactions between more countries which ultimately increases the revenues. The report includes
about the OAK cash & Carry limited on the account of expanding its business internationally. It
also includes the key elements of international environment and the recommendation to enter the
new country as India and reasons behind the decision. The report further includes the typical
barriers that have been faced Oak cash & Carry company to expand its business globally. And from
the analysis the Uppsala model can be used by Oak cash carry limited for internationalization
process.

REFERENCES
Books and Journals
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sustainability and the rise of social development. Journal of Contemporary Issues in Business
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Banerjee, S., 2021. A Comprehensive Review on the Economic Status of the Global Convenience
Food Industry. International Journal of Business, Management and Economics. 2(1). pp.43-52.
Bohnsack, R., Ciulli, F. and Kolk, A., 2021. The role of business models in firm internationalization:
An exploration of European electricity firms in the context of the energy transition. Journal of
International Business Studies. 52(5). pp.824-852.
Buckley, P.J., Enderwick, P. and Cross, A.R. eds., 2018. International business. Oxford University
Press.
Dilip, D. and et.al, 2021. Effective/Differentiating Marketing Strategies of McDonald’s in Malaysia
And Indonesia. Journal of the Community Development in Asia (JCDA). 4(1). pp.16-33.
Finkenstadt, D.J. and Handfield, R., 2021. Blurry vision: Supply chain visibility for personal
protective equipment during COVID-19. Journal of Purchasing and Supply Management.
p.100689.
Kourula, A., Pisani, N. and Kolk, A., 2017. Corporate sustainability and inclusive development:
Highlights from international business and management research. Current opinion in
environmental sustainability. 24. pp.14-18.
Notani, V. and Jain, P., 2021. SURVIVING INTERNATIONAL COMPETITION: ANALYSIS OF
MEASURES EMPLOYED BY LOCAL COMPANIES. International Journal of Management
(IJM). 12(6).
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.
Online
The Definition of International Business. 2021. Available
Through.:<https://courses.lumenlearning.com/suny-internationalbusiness/chapter/reading-what-is-
international-business/>
Why would a business expand internationally?. 2021. Available
Through:<https://www.worldfirst.com/uk/blog/guides/6-reasons-to-expand-internationally-in-
2021/>