Strategic Management of International Business

This report examines and analyzes the strategic management of entities engaged in international business. It discusses factors that motivate organizations to go international, various strategies used to reach goals, and different pathways to enter the international market. Examples of companies and their strategies are provided. The report emphasizes the importance of market knowledge and proper implementation of strategies for success in international business.

International business

Table of Contents
INTRODUCTION ...............................................................................................................................3
MAIN BODY ......................................................................................................................................3
Explain factors that motivate organisations to be international .....................................................4
Examine and analyse various strategies that companies use to reach their goals............................5
Different pathways used by entities to enter into international market and becoming international
business............................................................................................................................................7
CONCLUSION .................................................................................................................................12
REFERENCES...................................................................................................................................13
Books & Journal: ..........................................................................................................................13

INTRODUCTION
Market is wider and broader and with increase of competition the international business is
rising at rapid scale. In this contemporary business environment, it is essential to focus on market
situations so that appropriate strategies are implemented. International business is to be defined as
trade of goods and services across the national borders (Almazrouei, 2020). Main aim of this report
is to examine and analyse the strategic management of entity engaged in international business. In
regards of report questions, this report is based on international business, strategies and
globalisation. This report comprises concept of globalisation, internationalisation, strategies used to
achieve goals and business examples.
MAIN BODY
Explain when operating in a global context, examine and analyse the various strategies that
companies use to reach their goals. Use business examples to support discussion.
The business sector is wider and broader and is increasing its activities rapidly.
Globalisation is defined as process by which businesses start to develop international influence
and interacts among people and countries. Whereas internalisation refers to developing of business
activities within multiple countries. (Cusumano, 2019). Both globalisation as well as
internationalisation has wider impact on business processes, functions and operations. With occur of
COVID 19, both these have been affected at wider scale. Mostly organisation such as Tesco, Apple,
ASDA, has been largely impacted by COVID 19.
Comparison
GLOBALISATION INTERNATIONALISATION
Definition It is defined as process of
connecting economies of world
for free trade integrate globally.
It refers to process through
which globalisation can be
achieved.
Linked structure It is linked and related with
different economies of the
world. For example- Olympics
began in ancient Greece and is
continue today all around the
world.
It is linked and associated with
business, individual and
organisation. For example-
Apple is operating at global
scale.
Factors It is affected by infrastructure,
telecommunication and
logistics and many more.
It is affected by culture, taste or
preference etc.

Examples- Visa obligations for visitors,
tariff and non tariff trade etc.
Producing, selling, sourcing of
materials within more than one
country.
Advantages of internationalisation
 Internationalisation is beneficial as it helps in accessing to new business opportunities and
also enhances strength of entity at higher level.
 Another benefit is that by being international, firm is able to increase profit, revenue and
brand goodwill increases at higher scale (Hamilton, 2018).
Limitations
 Drawback is that it becoming international is a time consuming process and which requires
deep level of market information.
 Another drawback is that risk associated with international business is high and it can
impact upon business operations of firm at wider level. For example- due to impact of
COVID 19, it is not possible to FMCG companies like Tesco, Sainsbury to sold their
products in foreign countries (Henry, 2019).
From above discussed matter, it has been analysed that both globalisation and
internationalisation are important concept which is to be considered in proper manner. Furthermore,
it is also seen that they affects the enterprise at wider level. With increase of competition, human
resource of firm make assure that both concepts are being applied and considered with proper
considerations.
Explain factors that motivate organisations to be international
Being international is not an easy task and which require proper implementation of
strategies so that all goals are accomplished at appropriate level. Motivating factors are important
which are to be considered and as they help in accessing to international business in easy way. It is
essential to be well aware of motivating factors so that all goals are accomplished
There are various motivating factors that encourages business to be international and are mentioned
as follows-
 Large market size- It is an important motivating factor which is to be considered by
organisations on basis of which they access to business internationally. When business
execute their activities into different countries, they are able to access to large market size
which is beneficial for development of organisation future growth and success. For
example- Apple is located all around the world and has market share and shipments of 201.1

million in 2020 (Lindsay, 2018). So, this is crucial element which is being focused with aim
of being international.
 Profit potential- It is also crucial factor which is to be focused as when business access to
international market, they are able to gain more profits and higher margin in appropriate
manner. For example- Samsung and Apple are two of the most recognised auto-mobile
manufacturer in the world with higher profits and ruling in market from longer period of
time. Profit potential is the major focus point when organisation aims at becoming
internationally. Most of the businesses aims at becoming internationally to gain higher profit
and revenue.
 Foreign distributors- It is another important element which is to be considered by
organisation who wish to become international. When operations and functions of
organisations are expanded at international level, it is easy to access to foreign distributor
ans accordingly supply of trade is done in appropriate manner. For example- Tesco,
Sainsbury are largest supermarket chain of United Kingdom and that have many foreign
distributors who trade goods across many countries (Mukhezakule, 2019).
 Growth & development- This is also crucial factor which is being adopted as because
when organisation access the market internationally they are able to enhance and achieve
growth as well as development at higher level. Also, this is analysed that international
market has wide number of business opportunities on the basis of foreign companies invest
into other countries. For example- Google, Microsoft, Dell are some of the big IT companies
that invest in international market (Pezzuto, 2019).
Thus, from above discussed matter it is seen that motivating factors helps in accessing of
international market. With consideration of explained factors, it is analysed that it is crucial for
organisation to scan the environment so that appropriate factors and rationale are focused of being
becoming internationally.
Examine and analyse various strategies that companies use to reach their goals
In this competitive market, it is important to use strategies so that goals are accomplished
within period of time. Without use of strategies, it is not possible to access set of objectives. When
organisation aims at accessing to international market, it is crucial for them to adopt effective tactics
and strategies. It is also crucial for entities to use tactics so that goals are achieved within time
period. So, there are various types of strategies that are used and beneficial to be adopted which are
discussed as follows-
Applying SMART Objectives
SMART objectives are important to be focused as they help in achieving organisational in

reaching of their goal. SMART objectives are summarised as follows-
Specific- It is first element in which it is crucial to be focused in which it states that goal
which has been set is needed to be specific and proper. For example- Tesco which is a large
supermarket chain has specific goal of becoming leading retail supermarket and deliver better
quality (Putra, 2020).
Measurable- It is element in which it focuses on measuring of progress and processes
which has been taken into consideration to complete specific goals. For example- Measurement can
be done through accessing to quantitative and qualitative data of Tesco and internal management.
Achievable- This is also crucial component in which it states that goal which has been set is
required to be achievable so that it is easy to influence employees decisions in appropriate manner.
So, in reference of Tesco there goal is easily achievable as because they are able to provide better
quality and also it is easy for them to generate profits and revenue (Rae,2019).
Relevant- It is another component in which it specifies that the goals which is being set is
required to be relevant so that employees and other people involved within process are able to
execute their roles and responsibilities in effective manner. It is important for organisation to have
relevant goals so that resources are used at optimum level. If goals are irrelevant, it is not possible
for firm to achieve their objectives in proper manner.
Time oriented- It is element in which it focuses on the time interval of completion of goals
and activities involved in it. This is an crucial component in which manager of firm make ensure
that everything is being done on basis of time duration of every activity. The team manager make
assure that every activity is being completed on time.
Cross sell more products
In market, there are various types of organisation which focuses on selling of wide range of
products to same customers. This type of business strategy is most beneficial for office supply
companies, banks, online retailers etc. For example- Amazon, IKEA, Walmart uses this strategy of
cross sell products. Through increasing product sold per customer, average cart size can be
increased at higher scale. With use of cross selling products, it is easy to attract customers and
increase their retention period for longer time interval. This is further analysed that cross selling
require appropriate type of knowledge of market (Кричевский, 2019) .
Grow sales from new products
It is another business strategy which can be used to achieve goals in time period. There are
different types of entities that like to invest in research and development with aim of producing

innovative products and services. For example- Tesla and Kia comes under this category. Growing
sales from new products leads to generation of new ideas in effective manner. Growing sales from
new product is no easy and is time consuming process. Thus, quantitative and qualitative
information is needed to be used so that effective constraints are used to increase the sale.
Product differentiation
It is also most effective strategy which can be used as because in this new product and
services are being introduced in new market. This is also seen that it is crucial to have appropriate
information about market so that strategy is being used in proper manner. For example- Apple,
Google, Microsoft are some of the companies that uses this strategy within their business in order to
achieve goals as well as competitive benefits. Risk associated with this business strategy is high
and it is necessary to examine about the market situation so that appropriate decisions are
undertaken (Henry, 2019).
Pricing strategy
It is most effective business strategy which is used with aim of achieving goals and
objectives in appropriate manner. It is important to set prices so that it is easy to carry out exchange
process of products and goods in appropriate manner. For example- Cadbury, Nestle are some of the
firms that uses this pricing strategy with aim to achieve business goals. There are various types of
pricing strategies such as price skimming, price penetration, etc. (Hamilton, 2018).
Therefore, above explained matter states that it is crucial to use tactics so that it is easy to be
ahead in market & achieve business goals in appropriate manner. Furthermore, it is also analysed
that proper market information is needed to be collected an d obtained so that strategies are being
appropriately.
Different pathways used by entities to enter into international market and becoming international
business
Entering into different international market require skills, knowledge and expertise.
Basically there are various types of path ways which are used by most of the organisation when
they aims at becoming internation and are mentioned as follows-
 Exporting- It is most appropriate form of path of entering into international market. It is
defined as exporting of goods & services across the nation with more than one country. It is
also to be known as most effective way because investment need to not has to be made by
firm. For example- Tesco, Sainsbury, are some of the companies that uses this path way to
enter into international market (Cusumano, 2019).

 Licensing- It is also crucial method in which it is kind of business arrangement in which
one firm allows other firm to use, manufacturer product for a particular payment. For
example- Mickey Mouse has design on their products, clothing manufacturer Life is Good
etc. A fees is charged to the party who uses the product or service for particular period.
 Joint venture- It is also important path way which is being used to be come international
business. It is most safe and secure way of becoming or executing business activities in
proper manner. It refers to a business agreement between two or more than two firms with
aim of achieving common desired goals. For example- BMW and Toyota are into joint
venture. Main benefit of this path way is that everything is being shared between firms and
which makes it easy to execute the business operations.
 Foreign direct investment- It is another way of entering into foreign market as in this it
focuses on investing into foreign market facilities. For example- there are various types of
FDI like horizontal, vertical etc. Like McDonald opening restaurant in Japan is to be viewed
as horizontal FDI. Using of FDI is needed to be done in effective way so that investment and
money is used with proper considerations (Almazrouei, 2020).
Therefore, it is analysed that international business is of broader range and it is important to
be aware about these different type of path ways so that appropriate gate ways are being used by
organisation to access international market. This is analysed that it is duty of manager of business
organisation to assure that most effective type of pathways are being adopted.

CONCLUSION
After a brief analysis of above report, it has been concludes that it is essential to be aware
about market situations so that business activities are executed at international level in appropriate
manner. So, discussions have been made about globalisation, internationalisation and strategies.
With higher flexibility of market, it is difficult to access to business opportunities. Through
scanning of business environment, it has been examined that organisation is able to access
competitive advantages at wider scale. Also, it is seen that HR of firm need to be well about market
so that it is easy to make decisions.

REFERENCES
Books & Journal:
Almazrouei, 2020. A Sustainable Approach for Organisational using Strategic Management.
International Journal of Sustainable Construction Engineering and Technology, 11(2),
pp.242-247.
Cusumano, 2019. The business of platforms: Strategy in the age of digital competition, innovation,
and power. New York: Harper Business.
Hamilton, 2018. The international business environment. Oxford University Press.
Henry, 2019. From doing to being: Process type as indication of purpose in academic business
reports. Journal of English for Academic Purposes, 42, p.100778.
Lindsay, 2018. A critical diversity framework to better educate students about strategy
implementation. Academy of Management Learning & Education, 17(3), pp.241-258.
Mukhezakule, 2019. The relationship between corporate strategy, strategic leadership and
sustainable organisational performance: Proposing a conceptual framework for the South
African aviation industry. African Journal of Hospitality, Tourism and Leisure, 8(3), pp.1-
19.
Pezzuto, 2019. Turning Globalization 4.0 into a Real and Sustainable Success for All Stakeholders.
Pezzuto, I.(2019). Turning globalization, 4, pp.8-18.
Putra, 2020. Competitive Environment Analysis in Global Retail Companies Operation Strategy: A
Data Envelopment Analysis (DEA) Based Approach. AFEBI Management and Business
Review, 5(01), pp.16-36.
Rae,2019. The effect of cultural configurations on international business performance–Case:
Moomin Characters.
Кричевский, 2019. International Business and Competition: electronic educational-methodical
complex for undergraduates in the specialties 1-25 80 01 «Economics», 1-26 80 03
«Business Administration».