International Business: Expansion of Rowlinson Knitwear in Sweden Market

This report discusses the rationale behind Rowlinson Knitwear's decision to expand internationally, the recommended country for expansion, and the barriers that may be faced during the expansion process. It also evaluates the implementation approach for internationalisation process for the specified target market. The report provides an overview of the organisation, its products and services, and the benefits of international expansion. It also discusses the challenges of language barriers, cultural differences, foreign politics and relations, and operational risks with hiring staff members. Finally, the report evaluates the implementation approaches of exporting goods and services, making direct investments, partnerships and alliances, and reverse internationalisation.

INTERNATIONAL
BUSINESS
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Table of Contents
Executive summary .........................................................................................................................3
Introduction......................................................................................................................................4
Analysis and discussion...................................................................................................................4
Brief overview of the chosen organisation and the rationale for going international. ..........4
Discuss which country you would recommend them to enter and the rationale behind the
decision. ................................................................................................................................5
Barriers that will be faced as the organisation expands internationally.................................6
Critically evaluate a relevant implementation approach for the internationalisation process for
the specified target market......................................................................................................8
Conclusion.......................................................................................................................................9
Reference ......................................................................................................................................10
Books and journals ..............................................................................................................10
Online...................................................................................................................................10
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Executive summary
The main purpose of this report is study about international business. In this given report,
there is a discussion of international business. Organisation do international business to enhance
their customers base and attract foreign customers. This helps them in increasing profitability as
well. This report includes introduction of selected organisation in which they wants to expand.
Then it includes rationale of expanding in another country. Further it includes recommendation
in which company wants to expand and why. Then it includes barriers comes in between and
implementation approach within a targeted country.
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Introduction
International business is described as trade of goods and services, capital, technologies
across national borders or at a global scale. It includes transaction within cross borders of goods
and services between two or more countries. While expanding any type of business, there could
be certain things which are to be considered by managers of organisation (Bano, Din, and
Jabeen, 2021). Further, there can be various barriers that comes between expansion of a business
in any other country. The organisation selected in this report is Rowlinson Knitwear. It was
founded in the year 1935. Company wants to expand in Sweden market to enhance their
customer base. This report includes rationale of going international and challenge that can come
in between while expansion in new market. Then, it includes implementation approach for
internationalisation process of target market.
Analysis and discussion
Brief overview of the chosen organisation and the rationale for going international.
Rowlinson knitwear is a leading UK supplier of school wear and corporate wear. It was
founded in the year 1935. Company is ranking highest in Certified B Corp and it is ranked 14th in
worldwide in clothing sector. Company is UK leading supplier of school knitwear and also
regarded as one of the acknowledge in school wear industry (Rowlinson is a leading UK supplier
of school wear and corporate wear, 2021). Company is also providing high quality of school
wear to their corporate customers. This helps them in increasing their customer base. Company
did not sell their products to general public or schools, in fact they support independent retail
sectors of UK who locally support them. Products in which company deals is Sweatshirts,
knitwear, hoodies, jog pants, blazers and polos etc. It is focusing on inspiring others and
spreading ideas to make more profits within an existing market.
The rationale of going internationally of organisation is to Increase their revenue
potential, gaining competitive advantage, greater access to talents, cost savings etc (Coll, and
Arend, 2021). There could be certain reasons of being internationally which are discussed below:
 Increasing revenue capital- As going internationally company could be able to enhance
their revenue capital. As when business exhausted their growth opportunities, then this
may turn into expansion in any other country. In relation with Rowlinson knitwear,
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international expansion offers them to explore new markets and gaining in million of
sales of their products and services.
 New customer base: The next reason of company is to expand internationally is
increasing customer base. It does not only sell their current products and services to new
customer but to invest in introduction of new products and services to customers. Broader
base consist of increase in sales.
 Gaining competitive advantage: Expanding in abroad allows an organisation to get out
saturated market (Zhang, Shang, and Wisk, 2021). Expanding of company helps in
accessing new customers from abroad which their competitors did not operate.
Rowlinson knitwear wants this to be done while expansion in new country.
 Cost saving: This is another reason of expanding a business in any other country. By this
business will be able to lower their cost and saves money. Many of the companies are
taking this as advantage to move in another country in order to lower their manufacturing
and cost of operations.
 Improving reputation of company: While introducing a business in any country,
company will be able to enhance their brand reputation in front of new customers and
market and competitors. As by this business provides reliable service to their
international clients and customers. By having good reputation, this will be resulting in
attracting new customers. Expanding in any other country allows a business to build their
brand name in other country and resulting in attracting new customers as well.
So from the above points, the rationale of expanding of Rowlinson knitwear company in
international business is that this will helps them in saving their cost, building brand image,
enhancing customer base as well (Klarin, Inkizhinov, and Gorenskaia, 2021). Going
internationally results in increasing profits and revenue of an organisation.
Discuss which country you would recommend them to enter and the rationale behind the
decision.
It is recommended to Rowlinson knitwear to expand in Sweden market because by this
they could enhance their customer base and increase their profitability and revenue. Sweden is
regarded as a world class country. There is a fair welfare and peace and it has achieved standard
of living. As Sweden is a best country to expand a business in most effective way. It brings
positive outcomes in relation with any type of business. In context with Rowlinson knitwear
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organisation, they are expanding business in Sweden. As Sweden government is very much
supportive if any business should have to expand in their market, then government fully support
them. As Sweden per capita income is highest in the world but its taxes are high as well. Country
is highly dependent on international free trade to maintain its standard of living. Sweden
consisting of 9 million people (Spasova, and Marinov, 2021). So if company could expand in
their market then they could enhance large amount of customer towards their brand. Sweden
consist of modern distribution system which performs internal and external communications
(Why Expand to Sweden?, 2021). It includes trades between various countries such as Germany,
Norway, US, Finland etc. so this could helps Rowlinson to serve all these areas also and
distribute their products in all those countries as well.
It is recommended to expand in Sweden country because it is having various strength like
they are having talented employees, latest and updated technologies and massive investments in
research and development departments. It is having Swedish krona as a local currency. The state
in which Rowlinson knitwear can expand is Stockholm, as it is capital of Sweden which is
serving largest area. Country is consisting of various competitors from which company can
compete and gain competitive advantages. As company is dealing in school knitwear, so they
could finds certain number of people who are ready to purchase them for their children. Further,
company is providing high quality of products and services so that they could enhance more
customers.
Sweden consist of talented candidates who can deliver their best efforts in achievement
of organisational goals and objectives. In this, Rowlinson knitwear organisation could able to
hire talented local employees which helps them in behaving better with customers and know
their taste and preferences (Acheampong, 2021). This will resulting in taking out some creative
content and other strategies to create growth opportunities in Sweden market. Sweden is
consisting of various manufacturing and production techniques which helps the organisation in
making new materials and selling it to consumers. Thus, if Rowlinson knitwear is expanding in
Sweden market then they could take certain advantages of their market and develops their
customer base and profitability.
Barriers that will be faced as the organisation expands internationally.
While organisation is expanding in international business, they faces certain issues and
challenges. Whether company is expanding globally and selling its products and services
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internationally, company has to face certain issues that could impact business environment. As
every country has its own policies of government, laws and languages and cultures, inflation rate
etc. so this can be become a difficulty for an organisation to develop and create opportunity in
another country. Some of the difficulties and challenges that could be faced by Rowlinson
knitwear are mentioned below:
 Language barrier: This is one of the biggest challenge that could be faced by
organisation while expanding in any new market. As while starting business globally, it is
important to focus on language spoken in that country (Marhold, 2021). As, when
managers and other members did not speak in their local languages then this will results
in dissatisfaction among customers. Further it will be resulting in barrier for a company at
a time of expansion.
 Cultural differences : As every organisation is having their own languages, cultures and
beliefs. This includes arts, foods, tradition and social norms etc. so, it becomes important
for organisation to develops according to the local people cultures and values. Then only
they can develop growth opportunities for them. So, it is important to learn about cultures
of country in which company wants to expand. As while managing teams and selling of
products and services to local people, this is important to have their cultures.
 Nuances of foreign politics and relations : This is another challenge faced by
organisation if they wants to expand. In relation with Rowlinson knitwear, they have to
follow all rules and policies made by Sweden government. If they could not follow then
this will be resulting in becoming an issue and government has a power to stop entering
an organisation in their market (Leitheiser, 2021). In Sweden market, there is high
individual tax rates which can be faced by Rowlinson knitwear at a time of recruitment
and selection process.
 Operational risks with hiring staff members: As if company is starting a business
internationally, then they have to known about their languages and cultures in order to
hire a new staff. This new and talented staff will leads in making smooth conversation
with local people to sell their products and services. In relation with Rowlinson knitwear,
this becomes a challenge for company to recruit and select a talented employees. As
hiring of more staff leads to risk and also it includes high amount of funds on training of
those employees.
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Critically evaluate a relevant implementation approach for the internationalisation process for the
specified target market.
There can be various implementation approaches that could be used at the time of
internationalisation in the target market. There are various factors which are affecting business
environment at a time of expanding like competition, languages and cultural barriers etc. these
should be considered in mind of managers who are being there. Further, some of the ways in
which Rowlinson knitwear can expand their business in Sweden are discussed below:
 Exporting of goods and services: This is a most common way of internationalisation a
business. It consists of transportation of final goods and services from own nation where
they are manufacturing into host nation that is now importing. Exporting of finished
products and services allows an organisation to take full advantage of economic scale in
home country and this refers to a good idea when cost or speed are a critical factor for
their success of organisation (Du Plessis, Nel, and Taylor, 2021). An advantage of this is
it helps in keeping full control on property that is going into production process. And in
this Rowlinson knitwear company can easily exit if they see a lot of loss in their business.
 Making direct investments: If company wants to expand, then they are more looking for
foreign market as a direct investment to set their operations and enhance their customer
base and profits. Direct investment is regarded as doing business in another country.
Direct investment resulting in full “location” of a company products and tight control on
intellectual property. It helps in controlling on marketing activities and sales efforts as
well. Being in this approach of internationalisation approach, Rowlinson knitwear
organisation should have to consider extra stakeholders and efforts of marketing to
mitigate their natural act by foreign companies.
 Partnerships and alliances : If company is not willing to get ready for direct investment
in foreign country, then they could go for partnerships and alliances. Structure of
internationalisation alliance is varying from depending on goals and partners. But this
option is better for both direct foreign investment and exportation (Solimano, 2021). It is
a franchise agreement in which a local company purchase a right to operate under foreign
brand. One of the advantage of approach is that partnership with another company does
not requires high amount of investment by an organisation which wants to expand.
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 Reverse internationalisation: It is helping a foreign brand to enter in a market where
they have presence. This can consist of multiple exploitable angles (Stambøl, 2021). A
reason is test the solution with customers they have access to and this helps in learning
about intellectual property. This will helps Rowlinson in deciding whether there could be
something similarly local.
In context with Rowlinson knitwear organisation, they are expanding business in Sweden
market and Sweden market is very good for expansion and operating business. From the above
approaches, company is using Direct investment. As it means to operate business in another
country. It helps in enhancing organisation's customer base and profitability both. One of the
major advantage of doing direct investment is that organisation is having full product
localization. It helps in retaining, controlling of intellectual property. Further it helps in
competing with local organisation which are already existing in a country. Rowlinson knitwear
is providing school knitwear which helps them in attracting parents more towards their brand and
company. However, there can certain disadvantage of direct foreign investment is high
investments risk (Willemez, 2021). As there could be higher cost as compared to competitors for
being a foreigner. Rowlinson knitwear should use this and their managers will focus on these
issues and challenges while expansion and selling of products and services. This will helps them
in gaining more profits and revenue while providing customer satisfaction.
Conclusion
From the above report, it can be concluded that international business is the most
important for business to enhance their profitability and customer base. Rowlinson is doing
international business to enhance their customer base and increasing their profitability. By
expanding business into Sweden, company will attract more customers and increase their sales.
For this, they have to face certain challenges relating to recruitment, changing culture and
customer taste and preferences. So, these issues should be considered in mind while expanding
of a business in any other country. Further, there is an implementation approach which is for
internationalisation process of respective company for a Sweden market is discussed.
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Reference
Books and journals
Acheampong, D.O., 2021. Perception of the difficulties of international postgraduate students
writing research proposal. International Journal of Humanities and Innovation (IJHI),
4(1), pp.17-24.
Bano, S., Din, M. and Jabeen, M., 2021. Relationship of Creativity and Academic Performance
of Students at Undergraduate Level.
Coll, A.R. and Arend, A.C. eds., 2021. The Falklands war: lessons for strategy, diplomacy, and
international law. Routledge.
Du Plessis, C., Nel, L. and Taylor, H., 2021. You’re Going to Do What? Patients’ Myths
Regarding Hypnotherapy as Described by South African Psychologists. Integrative
Psychological and Behavioral Science, pp.1-14.
Klarin, A., Inkizhinov, B., Nazarov, D. and Gorenskaia, E., 2021. International business
education: What we know and what we have yet to develop. International Business
Review, p.101833.
Leitheiser, E., 2021. How domestic contexts shape international private governance: The case of
the European Accord and American Alliance in Bangladesh. Regulation & Governance.
Marhold, A.A., 2021. Energy in International Trade Law: Concepts, Regulation and Changing
Markets. Cambridge University Press.
Solimano, A., 2021. The Rise and Fall of the Privatized Pension System in Chile: An
International Perspective. Anthem Press.
Spasova, C.A.P.E. and Marinov, E., GLOBAL VALUE CHAINS AND THE CHANGING
NATURE OF INTERNATIONAL SPECIALIZATION1.
Stambøl, E.M., 2021. Borders as penal transplants: Control of territory, mobility and illegality in
West Africa. Theoretical Criminology, p.1362480621995457.
Willemez, A., 2021. What international framework to support the sustainable exploitation of
marine energy and mineral resources?. In The Role of Law in Governing Sustainability
(pp. 23-40). Routledge.
Zhang, J.Y., Shang, T., Ahn, D., Chen, K., Coté, G., Espinoza, J., Mendez, C.E., Spanakis, E.K.,
Thompson, B., Wallia, A. and Wisk, L.E., 2021. How to best protect people with
diabetes from the impact of SARS-CoV-2: Report of the International COVID-19 and
Diabetes Summit. Journal of Diabetes Science and Technology, 15(2), pp.478-514.
Online
Rowlinson is a leading UK supplier of school wear and corporate wear, 2021. [Online] Available
through <https://marketingstockport.co.uk/businesses/rowlinson-knitwear/>
Why Expand to Sweden?, 2021. [Online] Available through
<https://www.startupoverseas.co.uk/expanding-a-business-in-sweden>
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