Internationalisation Strategy for Marshfield Bakery in the USA

INTERNATIONAL
BUSINESS
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TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
QUESTION 1..................................................................................................................................3
Organisational overview and reasons for internationalisation.....................................................3
Question 2........................................................................................................................................4
Country Analysis for supporting rationale-.................................................................................4
QUESTION 3..................................................................................................................................8
Internationalisation strategy for business....................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Internationalisation is defined as the approach or method of expanding business activities
from domestic and local market to international boundaries or market segment (Jafari-Sadeghi
and et.al., 2021). With several driving forces such as technological developments, economic
reasons, market needs and growth opportunities most of the organisations are seeking efforts to
push their limitations and to seek growth in international markets as well. This report will discuss
the rationale and methods by which organisations choose to enter into international markets. It
will also analyse the suitability of chosen destination for international market entry.
QUESTION 1
Organisational overview and reasons for internationalisation
Organisation:
Marshfield bakery is well known organisation in UK which produces handmade bakery
products such as biscuits, cakes, seasonal goods as well as snack bars. Its products are so tasty
and in demand that organisation has been able to expand its services across entire Europe and
other EU countries as well (Marshfield bakery, 2022). It was started as farmhouse kitchen in
1984 which now owns a huge site. To improve the customer experience, it also permits its users
to tailor the content of snack packs. With its immense success and innovative approach, it is now
planning to expand its services in international hub, initiating first mile from United States.
Rationale:
Contemporary business environment is driven by broad economic strategies. From future
perspective as well as effective functioning internationalisation has become an essential part. In
order to free from local dependence and to access broad market segments small organisations
such as Marshfield bakery are choosing ways to go internalised (Rahman and Mendy, 2019).
Further by utilising global resources and technology firms are also able to minimise their cost
and increase efficiency. Thus internationalisation is an opportunity for the firms to achieve new
miles of success. Some of the key reasons for the firms to adopt path of internationalisation are
as follows:
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Opportunities through diversification: There are services which are not available in host or
domestic country. Thus organisation used to get opportunities in such markets in which there is
huge demand for the products or services offered by client. It gives broad market segment and
growth options to firm (Kryeziu, Coşkun and Krasniqi, 2021). Operations in countries with high
demand also lead to greater profit margins for the firm. Among customers there is huge craze
and demand of foreign brands and their popularity. Thus organisations have wide platform to
serve and to gain profits.
Innovation and improved productivity: In international market firms used to undergo great
innovation and efficiency in terms of technology and business model to meet customer
expectations (Cortellazzo, Bonesso and Gerli, 2020). Exposure to new market and technology
allow small bakeries and organisations to innovate their process and business methods. Thus it
not only enhances productivity but also build a strong brand.
Customer needs: There are customers who used to relocate or travel very frequently. Thus they
are always in need of products and services which they regularly use. In order to retain such
large segment of customers it is re1quired that organisations are available in every corner of the
world. Technology has made it possible and eliminated all barriers in this context (Estrin,
Gozman and Khavul, 2018). Thus contemporary firms always have plan to satisfy and retain
their loyal customers by assuring service availability.
Survival in competition: Currently many firms are dominating international market. Thus in
order to survive from the fierce competition it has become mandatory for small businesses like
Marshfield bakery as well that they must understand international dynamic and their strong
international presence can help them in surviving the increasing rivalry (Kryeziu, Coşkun and
Krasniqi, 2021).
Economies of scale: Globally organisations have vast options for suppliers, manufacturing or
processing technology and distribution network. Thus it is very easy for the service providers
like Marshfield bakery to achieve economy of scale and to reduce their costs with increasing
demand. This is one of the reasons that organisations are choosing internationalisation context
for improving their business outcomes (Pascucci and Bartoloni, 2018).
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