Managing International Business

Managing
International Business

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................2
TASK- 1......................................................................................................................................2
TASK- 2......................................................................................................................................4
CONCLUSION AND RECOMMENDATION...............................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
International business refers to commercial activities which involves movement of
goods, services, resources, people, ideas and challenges beyond the national boundaries.
Transactions are done between entities that exist cross borders (Meyer and Peng, 2016). Every
business organisation looks for opportunities to expand the operations in other locations and
international countries are preferred after attaining target profit in the home country. The
dynamics of economic environment is changing with the time resulting in higher competition
and other global needs. This increases the requirement for organisations to enhance its customer
base, number of suppliers, international colleagues and many more. It is a part of international
business strategy which is undertaken by number of eligible individuals who can work
effectively. Restaurants are one of the high revenue generating sectors in Hospitality Industry
and there is always an undying demand for the foods and beverages that are being served in
there. When a business operates at such a scale, it becomes imperative to have a team who is
capable of handling the activities smoothly. However, conducting several analysis of the country
and market which the organisation is targetting, should be done before it starts commercialisation
in that particular nation. There are many variables relevant to the operations of an entity which
should be assessed in the context of international business. In addition to this, management
should make strategic decisions which can make the expansion or other activities successful. It is
significant as expansion requires huge investment and if it is done outside the national
boundaries, the amount of investment gets multiplied. A business organisation taking business in
other countries have to understand demands of its people so that necessary changes can be
incorporated in existing processes and systems (Dzhandzhugazova, and et. al., 2016). Along with
this, there should be adequate resources such as funds, manpower, technologies, etc. Making
decisions related to the raising required resources and their application within the organisations
become the top priority. In this report, Leon has been chosen which is a fast food restaurant
chain located in United Kingdom. It was established in the year 2004. it is considering the
proposal to expand the business to a new international location which is Krakow. Krakow is a
city in Poland which is famous for its heritage and other ancient places in the country. Also, it is
one of the oldest cities in the country which can be a suitable nation for the growth of its fast
food business. It is also considered as a busy trading centre in the region of Europe. The culture
and lifestyle of people living in the country is colourful. Furthermore, this report covers PESTEL
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analysis of new national market which is going to help Leon analyse the macro-environment
factors. In addition to this, a comparative evaluation of minimum two market entry strategies for
entering in the target market, has been conducted. The results obtained from this are likely to
help Leon to mark a position in the marketplace.
MAIN BODY
TASK- 1
National Environmental Analysis
It is a framework used by organisation/entities to track activities of market. This tool is
mostly used to analyse the external factors which are affecting the business. The result is then
surpasses to swot analysis. These external factors does not directly effect decision of
organisation. It act as support system for the firm to tackle from the uncertainty. Also, it is most
useful when new business or firm is about enter in the national or international market (Nurmi
and Niemelä, 2018). So, a brief market research is required to adopt the analysis otherwise one
wrong move can make the organisation sick. Krakrow has been chosen as a national market for
conducting PESTEL of this country. Analysis of macro-environment factors prevailing in the
market of Krakrow is going to provide necessary information to Leon. It has been presented
below:
Political factors- These factors are connected with the contribution and interference of
government which may impact the ability of organisations. It is related with the political
conditions in a country which play a major role. It also takes into consideration political stability
and instability. Currently, Poland has council of government which comprise of Prime minister
and other ministers. The government has provided relaxation in income tax rules and also have
adequate infrastructure for initiation business activities. Furthermore, there is huge scope for
restaurants as the risks of political factors are low. It follows unitary semi-presidential
representative democratic republic. Therefore, Leon can operate freely in the city of Krakrow as
it entities are supported by the government of the country.
Economic factors- Economy shows the standards of living and status of a country.
Economic factor comprises of tax rates, policies, laws, government rules and regulations etc. In
context to Poland, their economy has been increasing at a maturity rate and market growth of
country is considered as average. Poland is developed country, and everyone enjoys the freedom
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