International Business Strategy: Issues and Strategies for Frosty Boy

This presentation explores the concept of international business strategy and addresses the issues and strategies for Frosty Boy, an Australian food business operating in emerging markets. It discusses the threats of corruption, problems associated with the country environment, and strategies to deal with corruption. The presentation also covers theories related to international business strategy, such as country similarity theory. Overall, it provides insights into the challenges and opportunities of international business strategy for Frosty Boy.

International
Business Strategy

Content
 Introduction
 Overview of the organisation
 Emerging markets and its conditions
 Threats of corruption
 Problems associated with country environment
 Strategies To deal with the threat of Corruption
 Theories related to international business strategy
 Conclusion
 References

As a team member this presentation is prepared to understand the
concept of international business strategy and various issues related
to it. The issues which are included in the presentation are emerging
market and the conditions for the food business in Australia. Various
strategies are addressed that helps to identify the threats of corruption
and problems which are associated with it. On the basis of this
various entry strategies are recommended which will help the
businesses to make their business idea viable.
Introduction

Overview of the organisation
The food business that is taken into consideration is Frosty Boy. I is an
Australian manufacturer and distributor of frozen yogurt and soft
serve whose headquarters are in Queensland, Australia. It was
founded in 1976.

Emerging markets and its conditions
Frosty boy is an Australian small business which is operating with
specific offering to the customers at international level. The
business is affected by various conditions of business environment
as due to such conditions various trends emerge in market with
which the company has to cope up with.

Demand fluctuations
The demand for the small businesses are affected due to cyclic
fluctuations but the revenues of large businesses are much affected
as they produce in large quantity. The products which are offered by
the Frosty boy are such which gets affected so frequently with
change in season. But they have an advantage of demand at
international level as global transportation cost is reducing and
advances in communication technology helps them to operate
effectively.

Economies of scale and high fixed costs
The larger businesses take advantage of economies of scale as it helps
them to reduce the cost of per unit but the economies of scale of
small businesses is not that much. Frosty boy does not have high
fixed cost with which they to cope up with so it reduces the pressure
on them to recover the fixed cost. The economies of scale of the
business is not large which is why they can easily accommodate
their operations as per the trends.

Managerial issues and innovation assets
With the changing market condition the managers of the small
businesses have to develop various skills as to grow the businesses
they have to expand into the new areas. The changing and emerging
trends compel the managers of the Frosty boy to innovate their
products and their processes and this can be done by adequate
administration along with effective resource management.

Financial relationships
The major issue which is faced by the company is that of the financial
crises as to procure funds by small businesses is challenging
because they do not have adequate security to mortgage. To met up
with the changing needs of the customers and to adopt the trends the
finance is must for the Frosty funds which helps them to manage the
financial pressure.

Technology adoption
The technology affects all the businesses whether a small or large as it
bring changes in the taste and preference of the customers. The
business of the Frosty boy does not get affected much by it as they
tries to adopt various such trends in their businesses such as they
make their products available online.

Threats of corruption
Corruption is a deceptive act which not only affects the individual
engaged but also affects the entire organisation. Due to this the
organisation has to analyse the ways in which the threat of
corruption can be reduced. The impact of corruption can be
distortion of the market, reputational damage, incurring legal and
professional fees etc.

Problems associated with country environment
The country environment also has impact on the business as the
resources of the country are being used by them. Various
environmental issues which Australian countries have been facing
are related to infrastructural development by the businesses,
deforestation, pollution etc. which has impact on the businesses
operating their and even on Frosty Boy.

Strategies To deal with the threat of Corruption
To reduce the impact of corruption and the problems associated with
the country's environment various strategies need to be developed
by the Frosty boy that will help them to manage the impact. To
reduce the impact of corruption the anti corruption laws are imposed
on the companies under which if they found out involved in any
case of corruption or bribery their license will be cancelled to
operate also they have to pay fines.

Continue…
In this framework, the activities will be analysed at different levels
such as at corporate level, operational level and at staff level. In this
to prevent such unethical act risk assessment, trainings, effective
communication, declarations need to be done. Further to detect such
acts forensic focussed audits, transaction monitoring, compliance
review, reporting mechanism need to be done by the company.

Continue…
Another strategy that can be used by the company is of risk assessment
in which they have to identify the key areas where there is potential
exposure to bribery and corruption. In this it is to be analysed that
what are the legal, audit and governance compliances exist and then
on the basis of this the scope and objectives need to be determined.
This will define the extend to which the employee has been
restricted to operate.

Theories related to international business
strategy
When a business wants to operate in different countries they have to
consider various theories which helps them to understand the
prevailing market conditions. The theory for international business
strategy which can be Frosty Boy to enter into any new international
market is country similarity theory.

Country similarity theory
This theory helps the organisation
to understand the similarity
among the country in which
they are operating and the one
in which they are planning to
expand.

Continue…
Also the Frosty Boy can use a traditional theory of comparative
advantage in which they have to identify how different their good is.
In this the major focus is on the productivity differences with the
companies operating in the country where they want to expand. It is
suitable for the company to expand their business if they have major
productivity differences as it will help them to take competitive
advantages.

Conclusion
It is concluded from the above report that for an organisation it is
important to understand the international market before they enter or
plan to enter as it exert stiff competition. Along with this the
company need to consider the activities of the employees in context
of corruption and bribery as it directly affects the performance of
the organisation. For the organisation it becomes important to
formulate various strategies to meet up with such acts and incidents.

References
Buckley, P.J., Burton, F. and Mirza, H. eds., 2016. The strategy and
organization of international business. Springer.
Johnson, G., 2016.Exploring strategy: text and cases. Pearson Education.
Kolk, A., 2016. The social responsibility of international business: From
ethics and the environment to CSR and sustainable development.
Journal of World Business. 51(1). pp.23-34.
Rugman, A.M. and Verbeke, A., 2017. Global corporate strategy and
trade policy. Routledge.

Thank You