Tapping into New International Markets: Opportunities and Challenges for SMEs

Tapping into new
international markets

Table of Contents
Tapping into new international markets..........................................................................................1
Introduction......................................................................................................................................3
Part 1................................................................................................................................................3
Introduction to the chosen country and region............................................................................3
A critical analysis of the global business environment and the influence of key globaldrivers
specifically in relation to the chosen country..............................................................................4
Discuss the rationale for SMEs to expand their business internationally...................................5
Critically analyse the opportunities and challenges for global growth.......................................6
Evaluate a range of trading blocs and agreements and examine the advantages of specific
trading agreements that would have a direct significance for your region and country.............7
Critically evaluate how these stimulate and generate global growth..........................................8
Part 2................................................................................................................................................9
Advantages and disadvantages of the different types of exporting processes for exporting
merchandising and services.........................................................................................................9
The documentation that is required e.g. letter of credit, packing list, commercial invoice,
terms of payment, customs document.......................................................................................10
An evaluation of the different methods of tapping into new international markets, including its
limitations and benefits.............................................................................................................10
Different methods of tapping into new international markets:.................................................10
Justified recommendations on appropriate methods and countries to meet specific business
requirements..............................................................................................................................11
REFERENCES..............................................................................................................................12

Introduction
Tapping in new international markets can be very helpful in the process pf massive
undertaking that can help in the process of developing huge opportunity for business. It helps in
the process of achievement of higher market share as there can be new market share which can
be approached easily that helps in the process of expansion of the present productivity and
profitability of the business (Samiee and Chirapanda, 2019). Present report is based on analysing
the expansion of the select organisation into some new market region here they are not having
presence. The selected region is south east Asia and the selected country is Philippines.
Part 1
Introduction to the chosen country and region
Present report is based on Davison canners limited that is having its location across UK
and is part of fruits & vegetable preserving speciality food manufacturing industry. It is presently
having a workforce of 108 employees at this location and they are generation approx 16.26
million dollar sales. The main history behind Davison canners is that Davison family had grown
and harvested their first crop of Irish bramely apples (Vendrell-Herrero, Darko and Ghauri, ,
2019). Through the last four decades there is growth to meet the changing needs of customers
who have diversified to stay ahead of these trends. Presently the SME brand is willing to expand
its presence in the regions of south east Asia that is in Philippines. Philippines is the the island
country of south east Asia it is situated in western pacific ocean that includes 7,640 island and is
also broadly categorized across three main geophysical locations that is ranging from north to
south.
It is bounded by the south china sea to the west. It covers a area of 300,000 km and in
year 2020 the population is around 109 million people that is making it the worlds twelfth most
populous country. In the present scenario Davison canners is having a opportunity of market
expansion as Philippines is a emerging market and is also a newly industrialised country that is a
economy of transitioning from being based on the agriculture to more on manufacturing and
services. Further it is also a founding member if u8nites nations. Association of south east Asian
nations and world trade organisation (Assadinia, Boso,, Hultman and Robson, 2019). The
country has a variety of natural resources and a significant level of biodiversity that can help the
SME brand in having successful business expansion.

A critical analysis of the global business environment and the influence of key globaldrivers
specifically in relation to the chosen country
A global business is an organization that conducts its business operation such as factories
and distribution centres in many countries around the world. In context of it is essential for them
to understand the environment of the Philippines before they transform their organization into a
global business (Addicott 2020). To understand the environment PESTLE analysis is utilized and
elaborated below:
Political:
The Philippines has a fairly stable economy and is also an active member of the UN. In
context to Davison Canners, it is a suitable region to expand their business as the organization
will face no hindrances from the political environment of the country.
Economical:
The Philippines is an ideal country to invest into due to its low business set-up cost,
strategic location and availability of effective workforce. In context to Davison Canners, the
economy of the county is ideal for them to expand their operations within the country.
Social:
The country has an educated, highly trainable and efficient English speaking workforces
which makes it attractive for foreign companies. In context to Davison Canners, their expansion
into the country will provide them with an effective workforce at low-cost.
Technological:
The Philippines is tech-savvy and has made rapid progress over the years in terms of
technology and innovation (Caliendo, Monte and Rossi-Hansberg, 2018). In context to Davison
Canners, the expansion of their operation into the county will give them the opportunity to use
the technological resources offered by the Philippines.
Legal:
The legal laws relative to hiring employees are not complex and provide assistance in
hiring, firing, work hours and overall employee benefit. In context to Davison Canners, it is ideal
to expanding their business in the country as they will not face any legal issues while hiring
employees for their organization (Alembakis ., 2019).
Environmental: