Organisational Report and Global Operations Presentation

This report discusses international environment, management planning process, and risks arising from international trade operations for Miel Bakery. It also evaluates different techniques for business expansion in international settings.

Organizational Report and
Global Operations
Presentation

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
MAIN BODY ..................................................................................................................................4
Evaluating international environment and examining different type of factors that impact
company's expansion:..................................................................................................................4
Evaluating range of techniques that applied to management planning process for strategies and
goals in internation setting:..........................................................................................................6
Risks arising from international trade operations........................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Every business organization want to expand in international market to generate surplus
profit and contiguous growth with success, it is very clear exploring international market is
challenging task, business need to have those strategies which bring easiness to expansion
process. This study is based on Miel Bakery, one of the finest bakery in the UK with continuous
growth in the business (Kahiya, 2020). This report will discuss international environment and
will focus on different international factors that might impact business expansion process. Later
this report will discuss techniques for management planning process including multi domestic,
global and transnational strategies. At last this report will discuss risk and strategies to mitigate
these risk that may impact company and their management process.
MAIN BODY
Evaluating international environment and examining different type of factors that impact
company's expansion:
Every business organization focus on entering new market, international expansion is
dream for firm that have continuous success. International environment comprise certain risk that
impact business, expansion is not an easy task. International environment simply means each
country have their own policy and procedures impacting business, it is very clear that global
market have different trend and regulation which need to be considered by business before
entering (Perera, 2017). Strategies does matter when planning to effectively explore international
environment, business have to plan their policy to manage risk that arrive from international
environment. There are certain international environment, these are: Miel bakery have to focus
on certain types of international environment, these are:
Political environment: Political environment is one of the most important type, when business
operate in home country they have idea about government involvement. However, international
political environment simply means if business is expanding in new market then government
policy of these country will be different and might not match with strategies of company. For
example; if Miel bakery is planning to expand to international market (Romania), then
government policy of Romania will be considered by the business (Puck and Filatotchev, 2020).
If Food and safety act is different, then Miel bakery have to change their strategic structure to
make expansion possible. Political environment keep changing with time, each country bring
modification in their policy and procedures which heavily impact business and their management

process. International political pressure on business impact their strategic implementation
allowing firm to be ineffective in global market.
Economic environment: Each country have their own economical background with stability,
some country might be suffering from economic crisis due to certain event including COVID-19.
Business expansion become challenging when there is no stability in internation economic
environment because price of every material will be high and might impact business. For
example; if there is high inflation rate in Romania economy then expansion of Miel bakery will
become challenging because price of raw material will be high. Economic instability simply
means there will be disturbance in labour market impacting business and their operation in
international environment (Tien, 2019). Economical element in international environment is
important because certain change in economic stability will change management process of
business, after COVID-19, there is instability in almost every economy of the world which
means expansion might be dangerous for business in current market condition.
Social environment: Social and cultural environment does matter when business enter
international environment, social element means behaviour of customer in the market and their
taste that might be differed from country to country. Social environment is important element
which need to be considered when focusing on internation business. For example; if taste and
preference of Romanian customer are different from taste and preference of UK customer then
Miel bakery have to bring major changes in their product. Culture will become a barrier because
each country have their own culture which might impact those organizations who focus on food
and beverage industrial area. Social factors keep changing due to change in trend, customer have
their own taste and preference which will be different.
Technology environment: This is important element which need to be considered when
focusing on international environment, technology change in whole industry not only in country
which means business have to focus on movement in industry rather than country's technological
advancement. For example; if there is technological advancement in food and beverage industry
then Miel bakery have to bring change accordingly, company have to catch trend in the industry.
Technology does matter when it comes to international environment because business have to
advance in meeting demand of particular market, technology will reduce risk of failure bringing
down chance of losses.

Legal environment: Legal environment are some of the most important factors, this may
include tax, regulation, law and legislation of the country which differ from each other.
International environment have their own regulation and laws impacting business, each country
implement their own legislation impacting enterprise and their expansion process. Tax and
regulation focus on keeping the business track clear, firm have to compile their policy and
strategic management with international legal policy. For example; Miel bakery have to compile
their policy with international regulation implemented by each country including food and safety
standard. Company have to be active in legal process because this might become the biggest
barrier in international environment.
Environmental environment: This is another important element which need to be consider by
those firm planning to enter international environment, environmental factor means business
have to focus on betterment of nature and society around them (Twarowska and Kąkol, 2016).
Corporate social responsibility of each firm lies in environmental environment which need to be
complete, it is very clear that each country and international environment have their own
methods and procedure to manage nature and risk related to nature. For example; Miel bakery
have to compile their strategies with nature and sustainbility measure which is current
international demand as well. Environmental factor impact business expansion because if
company have not taken any measure to manage nature then internation environment will not
allow firm to operate impacting nature in the process.
Evaluating range of techniques that applied to management planning process for strategies and
goals in internation setting:
Business expansion is one of the biggest goal of every business organisation allowing
them to explore international market and focus on continuous growth, expansion demand
business to have strategies that meet all requirement. It is very clear that techniques does matter
when it comes to planning process, this simply means business have to stay active and effective
while entering international market (Hitt, Li and Xu, 2016). There are certain expansion
strategies which is considered by many multinational business organization, these strategies are
commonly used by have major impact on the business, these are:
Multi domestic strategy: This is one of the most important type of expansion strategy allowing
business to explore local market, multi domestic strategies focus on local area rather than
international market. This strategy allows business to first have powerful impact on local market

then focus on internation environment, however, success in local market decide whether business
will survive international market or not.
When business plan to compete in international environment, they have to
consider success in local market, marketing efforts in local market need to be effective enough to
meet the demand (Hitt, Li and Xu, 2016). Multi domestic strategy put heavy pressure on business
to divide their target domestic market according to demographic and location. Business have to
focus on expanding domestically because there might be hidden opportunity in domestic market
allowing business to gain success and stability for international market. Local market have wide
range of opportunity allowing business to become stable, however, domestic market demand
company to have strategies for local market only, for example; a business can not use domestic
market strategy for international market expansion.
Global strategy: Global strategy is one of the most important element in the business expansion
process, this strategy allow business to perform globalization and focus on continuous growth.
Global strategy include certain other strategies that are developed by business to expand in
international market. One of the focus on global strategy is to increase sales of the company and
become industry leader with total focus on continuous growth (Lessard and Westney, 2021).
Every business organization know the importance of having right strategies at right time, it
becomes essential for business to have international management process and effective strategy.
In global strategy, firm try to develop plan that incorporate with both local and international
market for example if firm have goal to reduce cost occurring in manufacturing of product and
service then they have to develop those strategies that meet the demand of both domestic and
international market.
Transactional strategy: This is one of the most important type of international strategy
allowing company to stay in home country but operate in other nation as well. For example;
dealing in home country will provide stable and powerful base to company which can be used for
operation conducted in different nation. Transactional strategy focus on continuous growth
process because company already dealing well in domestic market and having stability in
international market as well (Peng, 2021). Transactional strategy lies in between domestic
strategy and global strategy, many multinational companies adopt this method of expansion
allowing them to stay stable if things go bad in international market. In transactional strategy,

local responsiveness does matter for the company because if there is no local stability then
international expansion might become the biggest threat for the company.
Multinational strategy: Multinational strategy is most common but effective one, business who
have invested in more than one nation including home country. It is very clear that multinational
corporation focus on continuous expansion which means they invest more in different nation as
compared to domestic. For example; A business might focus in import and export process to
operate in international market. Multinational strategy allow company to focus on country's
origin because it does matter to their target customer, MNC who have brand image all over the
world see multinational strategy easier and effective as compared to multi domestic strategy
because company can invest in new area with new resource, new people, new environment and
new market condition.
Partnership: Partnership is one of the most common but effective way to expand in abroad, this
allows business to partner with those organisations who have stable operation in different
market. This is the best way to expand in international environment, business have to find those
same scale business that have partnership option available for international brand. However,
partnership is not an easy task, business have to consider risk and have to make strategies
accordingly (Verbeke, 2016). Partnership is easy process but require company to bear risk, it is
very clear that partnership with other company in new market is quite risky because a firm does
not have idea about market condition that is why market research does matter in the expansion
process. Partnership with same manufacturer or same business unit will help firm to become
stable in new market, company can enjoy continuous growth with right partnership and right
partner.
Risks arising from international trade operations
When any company decides to go international, which refers top that make the products
and services provided by the company available to the countries beyond the geographical
boundaries of the country the company was established in it has a lot of benefits and
opportunities but also with the good aspects come risks and threats that the company has to face
at the time of this global trade expansion (Doh. and et.al., 2017). Some major risks that affect the
working of the company and its position in the market are discussed further in brief. Risks can
not be precisely counted as they can occur from any aspect of the environment, but the major
risks that a business that desires or plans to expand to different countries and operate

internationally are economic risks, political risks, currency risks, cultural risks, commercial risks
and environmental risks, all of the mentioned risks are explained below:
Economic risks
The country that the company is planning to expand to does matter a lot. Aspects like the
infrastructure like bridges, telecommunication networks and roads can either make things better
or worse for the company. If the infrastructure of the country is poor then it will be more
expensive for the company to do its working and operate in such country. Conditions like
unskilled labour or high rate of unemployment act as major barriers in the entry of companies.
Some of the nations might have potential but also have major risks like terrorism, civil unrest
and internal conflict. Some countries also have anti foreign sentiments within the citizens,
government officials and workers also tend to make doing business in different countries
extremely challenging. For example, if a company based in Europe wants to expand its base, it
will think many times before doing it in Syria, because of the literacy rate, employment rates and
civil unrest within the country.
Political risks
It is extremely necessary for the companies to analyse and examine the political
environment of the country they in particular are wishing to enter in (Leitner. and Meissner.,
2016). An ineffective and unstable government of a particular country will not be able to protect
any company that comes from another country. If there is a lack of a foreign trade policy that is
strong in a country then the company will in particular have to helm through the government
officials that might fall from their power. Also, a government that is new and incoming might not
be the best idea in case of business, and may decide to change the trading regulations, impose
quotas, increase tariffs or change export-import routes.
Currency risks
Currency risk can also be quoted as financial risks (Colacito. and et.al., 2018). This
basically refers to the risk that is generated due to the continuous and adverse fluctuations that
are present in the exchange rates. Fluctuation is something very common in the case of exchange
rates and the currency value in comparison to other countries or the same country's evaluated
past values or predetermined future values. Currency risk or financial risk specifically arises
when the international transactions of a business are done through usage of more than a single
national currency, and rather two or more currencies are involved. For instance, Adidas, a

company headquartered in Germany, trades or does business all over the world. If the company
sells its products to Japan, then it is obvious that the money will be received in the form of Yen,
but the currency used in Germany is Euro. Due to fluctuation the company can face major issues.
Cultural risks
Cultural risks are the risks that arise due to some cultural miscommunication or
misinterpretation (Ferraro. 2021). Every country has different values, cultures, ethics and beliefs,
a company that has started trading in a new country should be aware and respectful of those
cultures. But due to unawareness and less knowledge the working is hindered. These risks occur
due to difference in lifestyles, languages, mindsets, religions and customs. These differences
affect the employee performance and shopping patterns of the purchasers. For example, France is
a place which values its language and cultural beliefs a lot, L'Oreal a huge brand French brand
has expanded to many countries including India. India is also a country full of culture ans beliefs,
therefore while expanding to the country the brand took major steps for examining the cultures
and languages of the country and then worked accordingly. Which made the customers relate to
the brand.
Commercial risks
Commercial risks basically refer to a kind of risk that occurs due to the potential failure
or loss from poorly executed or developed tactics, procedures or strategies of business.
Sometimes managers might make wrong or poor choices in various areas such as the time chosen
for entering a particular market, selecting particular business partners, creating features of a
product, promotional themes and pricing. These factors are also in existence at the time of
domestic business, the situations become more complicated and consequences more expensive
when they take place within international business.
Environmental risks
An environmental risk is a very important factor that affects the working of a business, if
its working on a national level or on an international level (Liu. and et.al., 2016). This risk can
have a environmentally driven or materially environmental affect to the business or company
that is associated with either the planned or the current use of real estate that is commercial.
Environmental risks basically refer to those risks that are caused due to the environmental issues
that might be natural or created by other aspects. Some of these risks include severity of weather,
decreasing demands of particular goods or services, higher costs, sustainability preference, etc.

CONCLUSION
This report has discussed expansion process and its importance in the business
organization. Later this report has discussed international environment and examined different
type including political, economical and other international environment which impact company
and their expansion process. Later this report has discussed management planning process
including strategies and goals for international setting including different strategies for example
multi domestic strategy, global strategy, transactional strategy and partnership strategy allowing
business to enjoy enter with low risk. At last this report has discussed examination of risk that
will arrive from international trade including operation risk, economical risk, political risk and
currency and other risk that impact company and their expansion process.

REFERENCES
Books and Journals
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