Internationalisation of Marshfield Bakery in Australia

Business

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................2
Providing the overview of the chosen organization and rationale for internationalisation.........2
Discussing the country to be entered...........................................................................................3
Application of theory and models relating to process of international market selection and
entry strategy...............................................................................................................................4
Discussing the different barriers which will be faced by the organization to expand
internationally..............................................................................................................................5
Evaluating the relevant implementation approach for the internationalisation process..............7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
Internationalisation is being defined as the company going to expand the business within
another new country. For the business to grow and develop it is very necessary for the company
that they continuously expand their operations. This is crucial as it will be assisting them to
increase their operational efficiency and the profitability of the business as well. the current
study is based on the Marshfield bakery. The current report will outline the internationalisation
of cited company in Australia. This current report will outline the overview of the company and
the reason for internationalising. Further the study will outline the recommendation for the
country as well along with the application of different theories and models relating to the
international market. Further the discussion relating to the barriers faced by companies at time of
the expansion will be undertaken. in the end the implementation approach for the
internationalisation will be done.
MAIN BODY
Providing the overview of the chosen organization and rationale for internationalisation
Marshfield bakery is a small shop being located in Chippenham in UK and is currently a
part of bakeries and Tortilla manufacturing of industry. The company produces quality
handmade cakes, biscuits and other related products (Eduardsen and Marinova, 2020). The
company is a small scale company and because of this the company wants to expand its business
and want to enter into new markets. Currently the company is looking to expand the business and
they are proposing to enter into new country and for this it is necessary that they effectively
evaluate the different countries and then finalise the decision to be implemented. The rationale
for internationalisation is that this will assist the company in increasing the working efficiency of
the company. the reason underlying this fact is that when the company will expand its working
then this will be improving the working efficiency of the company. this is necessary for the
improvement of the company and its profitability. Along with this internationalisation will help
Marshfield Bakery in improving the market stake and the global footprint as well. this will help
the company in improving the profitability of the company and will help in increasing the market
share.
Along with this another reason for which Marshfield Bakery must go international is to
attract the new consumers. This is very necessary for the reason that in case the new segment of
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consumer is being targeted then this will be helping the company to increase their profits and
growth (Metsola and et,al., 2020). Along with this another reason for the internationalisation is to
gain competitive advantage. This is very necessary for the reason that when the company will be
expanding in new market with good quality and innovative products then this will be assisting
them in improving the working efficiency. Hence, this will be providing a competitive advantage
over other companies.
Discussing the country to be entered
The country recommended to Marshfield Bakery is Australia because the country is
witnessing higher growth within the bakery field. Thus, this will be providing a better growth
opportunity to the company and will be assisting in improving the performance and profitability
of the company (Morley and et.al., 2018). The different reasons for which country Australia is
being selected are as follows-
Political factor- the political factor involves the different changes which are being
undertaking within the country. Currently the country is having very stable government and the
regulation are not very strict and bounding (Tran and Marginson, 2018). Hence, this will be an
opportunity to Marshfield Bakery as it will be improving the working efficiency and expansion
process in better and effective manner. Also, the tax rates are declining and subsidies are also
being provided by government to small companies for their promotion of the business. thus, this
will be helping the company in getting major benefits.
Economic factor- this includes the changes within the economic policy and other factors
which govern the working of the economy. These economic aspect includes the different types of
factors like inflation, purchasing power of consumer, interest rates, foreign exchange and many
other different related factors. With respect to Australia, the purchasing power the people is
increasing continuously and this will pose an opportunity for Marshfield Bakery (Morais and
Ferreira, 2020). The reason underlying this fact is that in this modern working environment the
consumer has shifted towards the high living standard and this involves consuming cakes and
other desserts as well. Hence, this will be providing better opportunities for growth and
development.
Social factor- the current attitude of people is changing and they are shifting to a modern
lifestyle wherein leisure is the major focus for the people. Hence, this will be an opportunity for
Marshfield Bakery as they also deal in the making innovative and health conscious bakery
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