Managing International Business

This document provides insights into managing international business, including national environmental analysis and market entry strategies. It discusses the advantages and disadvantages of joint ventures and partnerships. The focus is on LEON, a fast food chain planning to expand its business in other countries.

Managing International Business

Table of Contents
INTRODUCTION.......................................................................................................................3
National environmental analysis.............................................................................................3
Market entry strategy..............................................................................................................6
CONCLUSION............................................................................................................................9
RECOMMENDATION.............................................................................................................10
REFERENCES..........................................................................................................................11

INTRODUCTION
International business is including trade of technology, services and products to other
global countries. It will include cross border transaction of good and services between two or
more countries. These cross border transaction will include transaction of goods and services,
technology and capital. This transactions are known as overseas transactions and these will
include two macro scale factors. One of these factors are eliminating barrier and second one is
technological changes. Leon restaurant is fast food chain which is operating from UK. It was
founded in 2004 by John Vincent. It is providing services in 70 countries and want to increase
business in other countries. The report is providing knowledge regarding international
business activities. National market place is selected and pestle analysis of country is
discussed in report. External influences and modes of entry is being discussed in report
(Akcaoglu Wehner and Bolsinger 2018).
National environmental analysis
International business management is a process of performing all activities and
controlling all factors which can have negative impacts on the performance and effectiveness
of the company. In this modern era, there are several fast food companies or restaurants which
are increasing and expanding their business in internal market only because of being in the
competition. There are several factors which are increasing competition and put pressure on
businesses to expand businesses and develop their strategies (Maczka and et.al., 2016).
Technology and globalization is one of the main factor which are increasing competition. In
the context of LEON, it can be said that it already operates in UK, Ireland, Norway, Spain, US
and Netherlands. Now it wants to expand its business and operates in national market for
attracting wider range of customers and making a strong position in the market. There are
several fast food companies and restaurants in the UK such as McDonalds, Burgers king
which are increasing competition in the market.
Entering into a new market is not an easy task as before entering in the new national
market, company requires to identify their current situations and analyse all those factors
which can affect their performance. There are several external business environmental factors
such as political, economical, social, technological and others which can have critic impacts
on the effectiveness of LEON's performance. So, it is important to make an effective use of

PESTLE analysis tool and identify all factors or current situation of the market in which it
wants to operate.
Leon is a fast food chain which is operating in several countries and it is planning ot
increase business in other countries. So, we have taken Qatar which is located at western
peninsula and is officially known as state of Qatar. Qatar is delivering oil to people all over the
world and it is exporting oil on large scale. In Qatar people not have to pay income tax and it
is regarded as the lowest tax paying country in world. Leon fast food company is planning to
enter these market and attract customers so, the report will include pestle analysis of Qatar
which will state macro environment of Qatar (Chugan and Panchal 2016).
PESTLE analysis
Pestle analysis is key framework of analysing the business environment in country.
Pestle analysis include political, economical, sociological, technological, legal and
environmental factors. These factors are affecting business and factors are flexible enough.
These elements which is included in pestle analysis is stating the scenarios of the country and
industry. There are certain advantages of people analysis like it is easy and it includes cross
function a skills and individual is expertise in effective way. Pestle analysis have certain
disadvantages as well. User will include information and decision is depended on the pestle
analysis. Process of pestle need to be conducted regularly because it is changing regularly.
Political factors
In Qatar there no election held so, country is not having democratic government, but in
these case country is ruled by king, and he is the face of country all over world. There are
many foreign people living in Qatar, but they do not have right to apply for citizenship of
country. Country is building world-class museums and stadiums in which all other countries
will be playing Fifa world cup 2022. Government of Qatar is investing in sport activities of
country which will build strong image of country. People are provided every type of facilities
which state that they want to maintain good relation with government. There is no fluctuation
in economy and so country is training in effective way. In fast food industry company have to
follow rules and regulation of Qatar. Employees of this company which are working in Qatar
will be provided wages according to the rules of country (Fan, and et.al., 2016).
Economic factors

Economy of country is not affected because country is full of natural oil and gas.
Country is peaceful so, businessman and industrialist are thinking if investing country. GDP of
country is increasing rapidly which will state that company can invest in country which will
increase business of country. Qatar is earning heavy income because of natural oil is exporting
other countries and country is earning huge amount from that. It is stated as world largest gas
field and it is holding majority of world reserves. There is no impact of recession on country
because company is already earning in case of it is trading in Qatar. Financial crises in UK
will have some negative impact on Qatar because trading is indirectly depended on UK market
(Henttonen Nöjd and Mäkinen 2017).
Sociological factors
Society and country is focusing on the education and health of young generation as
well. People can visit other countries and take education form different universities, and they
have to trade in several countries. It is saving huge amount which was spent by country on
education. People are concentrating on religion because people are following Muslim religion
and other religion are discriminated in country. Company is increasing economy by way of
increasing the financial investment form other countries by their own. People are quite health
conscious in country. People are consuming health products and innovative products which
can attract customers in Qatar. Fast food industry is affecting health of people because fast
food cannot be consumed by people daily basis and in case if consumed it will affect the
health of customers. So, people are buying low calorie products with some nutritional content
in it.
Technological factors
Qatar is increasing business by way of development in technology and using new
mobiles. Country is also using computer technology by way of using internet and using social
media websites as well. Qatar is increasing business by way of using technology in airline
industry. Country is also using technology in oil and natural gas and in exporting oil and gas to
various countries. It is utilizing all resources along it is also trading and working in effective
way. In Qatar company is increasing business by way of doing marketing social media and on
websites as well. It is increasing business by way of digital technology and by providing the
services at home. Fast food firm can use technology and increase services by way of reducing
the labour cost on products (Kashwan 2017).

Legal factors
The government of Qatar is working in effective way by making laws and
implementing these laws in country. Judicial system of country is quite strong and there are
many laws which are made for fast food company and restaurant. Once laws are implemented
they will ensure that the security and safety of people in country. Companies can investing in
country and enter the country but by following rules and laws of country. Fast food
organization have to look after the rules and regulation because these companies can have
negative impact on health of people. Quality of food and process of preparing food is
important for customers because it will affect health of people. So, company have to follow
rules and regulation of food and drug administration of Qatar. So, Leon has to enter market,
and then they have to follow rules and regulations.
Environmental factors
There is ministry of environment which is handling the issues regarding environment.
Government is making laws which are made for protecting laws and stopping environment
pollution. People are ensuring that agriculture is promoted in country along with cleanliness is
maintained in country. Government of Qatar is building new hotels because Qatar is going to
handle Fifa world cup in 2022 (Lucas, and et.al., 2019). As Leon is fast food company, it has
to look after waste management and look that waste will not affect environment. Company can
use recyclable products for packing of good and products. So, company can use these products
as an opportunity for gaining customers trust which will result in increase in sales (Mannan
and et.al., 2019).
Market entry strategy
Rather, external environmental factors, there are several other factors which need to be
considered. After analysing all factors, it is important for international management consultant
to identify market entry strategies in order to get market growth opportunities. Market entry
strategy refers delivery method of products and services to a new target market (Zou and Yu,
2020).
There are several market entry strategies which have some advantages and some
disadvantages. So, it is also important to analyse market entry strategies on the basis of
external business environmental factors and choose the best one for entering. On the basis of

PESTLE analysis, it has been identified that economic condition of Qatar is developed and
effective which can give several growth opportunities to LEON.
Joint venture
A joint venture is business which is created by two parties which want to trade in
country. Companies generally do joint venture for entering new market because companies
cannot afford to take chance of entering new market and in case of failure company not have
to bear whole loss. So, companies are doing joint venture for entering in to new market. There
are different rules and regulation made for joint venture in different countries. There are some
advantages and disadvantages of joint venture (Mian, and et.al., 2017). By making use of this
market entry strategy, LEON can expand its business in other countries and it can get better
resources without making investment in it.
Advantages
In a joint venture there are new insights for company and also it will have chances of
better resources. In a joint venture company will get better resources like trained and skilled
staff. Leon will have option of using new technology and working in effective way. Most
important joint venture is temporary because company cannot trade with other organization for
long time. In these both parties are sharing risk and profits. In same time it is benefit for
company while in other side it is not beneficial for company. Joint ventures are flexible along
with it also have option of exit. In a joint venture employee will know about what they want to
sell, and they will sell it in effective way. In case of joint venture there are more chances of
succeeding in work along with they will have option of building strong relation and networks.
Company will save money because cost of advertising and marketing cost is shared. In case of
international joint venture the risk of discrimination is eliminated and companies will work in
effective way.
Disadvantages
In joint venture flexibility is restricted because participants are not able to work
individually, and they cannot take any decision individually. Objectives are not cleared in joint
venture, and they are only want business to achieve success in market. Responsibilities and
work is distributed among partners by ratio of shares. Partners in joint venture can be from
different countries and these will result in change in caste, culture and beliefs. These can have
negative impact on business performance. There are limited opportunities for partners outside

because in contract of joint venture there are certain restrictions. Through which any partner
cannot work outside project (Milliot and Nivoix 2019). In order make joint venture successful
company will need research and panning. It is because company have to analyse market and
macro environment of country in which they are going to start business. Detail analysis of
competitors in market and many more. In joint venture there is lack of communication which
will affect business in negative way. Objectives of joint venture are unclear so, it will have
negative impact on business. Partners in joint venture are from other countries and so, it will
result in unreliable partners as well.
Partnership
Partnership is the business in which long term business partnership is formed. In these
partners are working for achieving best practices along with long term objectives. It will result
in reduction in cost and also it is more flexible than merger and acquisition. In forming
partnership companies need to sign the partnership deal and contract as per act of country. In
Qatar there are several rules and regulation for partnership. In these companies have to analyse
market situations and also look after the internal features of company. It will also provide
financial help for business partners, and they can perform their work in effective way (Spector
and Sanchez 2018).
Advantages
In partnership there are fewer formalities and rules formed by country. Due to less
legal obligation company will not face any problems in Qatar and run business efficiently.
There is only partnership agreements which is signed by both partners which are working in
an organization. Through less legal formalities it is easy to get stated and it can achieve
success in market as well. In partnership burden of both partners is shared and these can be
easy for both because in case of new entry in market company will might face success or
failure. In these both case both partners will face situation and deal with situation.
In these cases both have different knowledge, skills and networks which will help them
to complete the work in effective way. In this partnership there decision is depended on one
and these will improve decision-making skill of both partners. Privacy is also maintained by
company in partnership. In order to make partnership successful the ownership and control of
both partners are combined. In partnership partners are not fixed so, there can be more
numbers of partners and these will increase the capital and project will be done on large scale.

Profits is divided among partner on basis of the share invested by partners in company. So,
partners will do the work in effective way (Tian 2016).
Disadvantages
In partnership business has no legal status and it will affect brand image of company.
In case of partnership agreement is signed by partners and one of them is demand then the
partnership is dissolved. Unlimited liability is because of business has no separate legal status
and partners are liable for all debts and looses occurred by company. There is limited access to
capital because partner have no access to take the capital back without consent of other
partners. So, money cannot be used by partners in other work. These type of case are reason
for increase in the differences and conflict among partners in company. Conflicts will have
negative impact on sales and performance of company. As more number of partners decision
cannot be taken by partners and without discussion of topic with partners. These will affect
company on large scale, and they will not be able to take the decision. Profits are shared
among all partners because they have invested their amount in company. In these case they
have right to have share of profits. In partnership there are limits on business along with they
will not have right to expand business (Turton 2017).
So, from the above discussed all market entry strategies, it can be suggested to this
company that it should focus on joint venture. Company can use strategy for entering the
market of Qatar because company will option of entering the market. Leon can enter market
by way of joint venture. Company have to increase sales and expand their business but in
partnership business there is no option of increasing business in global market. In partnership
business cannot be expanded in country but in case of joint venture it can be expanded. There
are better resource which can be provided to company. Although Qatar is focusing on
education and country will have some skilled and talented candidate which can work in joint
venture. On other side the joint venture is temporary because both partners can work on
project for long period. In this case once company is successful in country, then company can
buy share of partners and handle the work in effective way. It is also flexible and so, company
can trade efficiently (VanDuzer, and Leblond 2020).
CONCLUSION
From the above report it has been concluded that company can enter market of Qatar
for increasing business. In order to increase sales pestle analysis of Qatar is done in report. It

will state about the all factors which can affect company on large scale. Company can increase
business by way of entering market of Qatar. Market is effective for new entrant because
economy of Qatar is stable and GDP of country is also growing rapidly. Organization can
enter market by way of joint venture. This entry method is beneficial for company. The report
is providing knowledge international market and global market conditions. Entry methods like
partnership is evaluated and it has been evaluated that joint venture is effective entry method
for company.
RECOMMENDATION
Company can adopt new technologies and enter the market by way of joint venture. In
Qatar people are health conscious so, company have to provide products which are healthy
and tasty them only it will attract customers. Organization can look after quality of food and
safety measures which must be taken while preparing the food. Customer notices everything in
outlets. So, company can take effective measures for attracting customers. So, it will include
national entry analysis and market entry strategy. Company is entering the market by way of
joint venture because it will increase sales and productivity of company. Company will also
take specific measure of protecting the environment because in fast food industry wastage is
more and waste management techniques must be used by company. These will protect
environment and c many can use these in marketing of products (Williamson 2018).

REFERENCES
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