Table of Contents INTRODUCTION......................................................................................................................3 MAIN BODY.............................................................................................................................3 TASK1.......................................................................................................................................3 Explain the global business environment in which small and entrepreneurial businesses operate....................................................................................................................................3 Analyse the threats and opportunities that face SMEs in an increasingly competitive global environment............................................................................................................................4 TASK2.......................................................................................................................................6 Determine and analyse the advantages of international trading blocs and agreements.........6 Explain the various tariff and non-tariff barriers that exist in the international trading environment............................................................................................................................7 TASK3.......................................................................................................................................8 Determine the advantages and disadvantages of importing and exporting and how to secure a deal......................................................................................................................................8 Explain the differences between merchandise and service imports and exports.................10 TASK4.....................................................................................................................................10 Evaluate the various methods in which SMEs can tap into international markets..............10 Compare and contrast the various ways SMEs can tap into international markets, assessing the pros and cons of each method........................................................................................11 CONCLUSION........................................................................................................................13 REFERENCES.........................................................................................................................13 Books and journals...............................................................................................................13
INTRODUCTION Internationalmarketsarechangingcontinuouslywhichalsobringnumberof opportunities in front of SMEs where we can perform properly by offering their products to customers for satisfying their needs and wants(Trudeau and McLarney, 2017). Because of continuous expansion within international marketing concepts it is important for SMEs to identify and perform different functions for their growth and development. In this report there will be discussion about the Barclays in the UK. In The task, there is explanation about the global business environment and condition of small scale business.it also analyse the threats andopportunitywhicharefacedbyBarclaysinthisglobalcompetitiveenvironment (Wadhwa, McCormick and Musteen, 2017). The task is consisting of determination analysis about the advantage of international trading blocs and agreements. There is also discussion about various tariff and non-tariff barriers with in the international market. In task 3, there is discussion about different advantages and disadvantages of importing and exporting and that difference between and dies and services of import and export. In task4 four there is evaluation of various methods which can be face by Barclays to tap the international market. About comparison and contrast between various and their pros and cons. MAIN BODY TASK1 Explain the global business environment in which small and entrepreneurial businesses operate. Global business environment Global business environment can be said as the environment around the business organisation within the global world where there is trade of goods and services, sharing of technologyandinnovationandmanymore.Thisisanenvironmentwheredifferent businesses are trading and earning profit at global level. The concept of Barclays is continuously growing in the global business environment this is because there are various opportunities within this environment which help the Barclays to grow. There are various changes within the government policies regarding Barclays which help them in fulfilling their objectives as well as growing their business without hurdles. UK business environment is also supporting Barclays because these industries contribute major part in the economy and GDP of UK. According to data presented by world trade organisation, Barclays are important part of global business environment because they are contributing more than 30% within the
overall trade of businesses. This is showing that small scale becoming an important part within the global business environment. There are various political movements like BREXIT or policies for Barclays help them to grow their business(Horn, 2016). Ways to go international For example BREXIT referendum in UK help different Barclaysas by changing policies after the BREXIT there will be more rebates in taxes and other benefits to Barclays within UK. This is because British government have to boost their economy as well as increased there GDP growth after exiting from European Union. This will work as an economy booster for Britain because we have to boost their economy for fulfilling the needs of peoples within whole UK. For this UK government have to formulate different policies which also impact the business of Barclays in positive manner. Government will boost all these industry for increasing their economic conditions and making them favourable to go within the global business environment. This will also support the global business environment as changing policies can attract different customers at global level as well as also attract different countries to change their policies for increasing the contribution of Barclays within their economy. Global business environment Barclays is known for job provider because they provide employment to number of employees within the economy. This also makes them useful for global business environment(Adeola, Boso and Evans, 2018). Analyse the threats and opportunities that face SMEs in an increasingly competitive global environment. There are various challenges as well as opportunities in front of Barclaysin global business world this is because in global business world there are number of industries rules regulations and policies which have to be followed by Barclaysto perform their business activities. Some of the threats and opportunities are mentioned below: SWOT analysis Is that Framework with your brother organisation to identify strengths weaknesses of opportunities and set within the micro environment of the organisation where it can take
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different diseases related to policies and procedures within the organisation to survive in competitive environment. Strength Innovation: innovation is a major strength of small scale industry which also help them in installation of organisation as they can now prefer different type of functions because of innovative ideas and attractive products. Support from government: one more strength of small scale industries in the process of internationalisation is support from the governments. this is because small scale industries are contributing towards the economy in and greater ratio compared to Other industries. this attracted the attention of the government towards small scale industry and help small scale industries in increasing their market by the support of government. Weakness Small scale level: the major weaknesses of small scale industry is the small level this is also impact on the resources of the organisation as the difficulties in arrangement of finance as well as other resources which are required to functioning within the competitive environment for gaining advantage. Opportunities Improvement in revenue collection: by performing the operations within global level of organisation with this is because they are not selling beyond their regular market which also increase the cells of products as well as explain the market of organisation or small scale industry. This directly impact on the revenue increases the sales will bring increase revenue to the organisation. Diversifying company market: company can easily diversify its market by performing at international level where it can easily self its product through different markets of different countries. This will help Barclays in diversifying its product as well as attracting new customer where we can easily sell their products and services by combining all the resources within current places(Schreinemachers, Simmons and Wopereis, 2018). Threats
Legal challenges: there are various government institutes and authorities within the market you have found different legal rules regulations policies and procedures which have to be followed by each and every organisation within the market where they are going to launch their business or doing their business currently(Literat, 2017).is legal issues related to tax lawstradeandtarifflossanddifferentregulationactivitiesforconductingbusiness operations. These rules are changes according to the nature of business but company have to clearly identify these rules and make policies and procedures for doing business in an appropriate manner and saving style from legal activities on liabilities. Communicationandtechnology:thereiscontinuousdevelopmentwithinthe technology as well as communication languages within the market by the changing of nation are using the international trade for as it is important for these organisations to clearly identify the knowledge and technology in which is going to be used in the particular nation where the organisation is working to expand its business. it is a major in front of Barclays as they have to perform separate functions for identifying the communication channel as well as technology for selling their products in international market. These challenges must be clearly identify for increasing the volume of company as well as growth within global market (Fang, 2016). TASK2 Determine and analyse the advantages of international trading blocs and agreements. Internationaltradingblocsandagreementsarecontinuouslyincreasingand developing by the increase the concept of globalisation within different economy of the world. Trading blocs are usually those groups of countries in specific region which are famous for managing and promoting their trade activities in combination.OPEC, G7 and many more are the common example of these trade blogs. Direction advantages of trading and blocks and agreements which are mentioned below: Attract FDI: trading blocs or international trading agreements always attract foreign direct investment this is because they are reading in a combination form where there is elimination of competition within them and this make it easier for investor to invest in this type of agreements because they generally doesn't feel for the market risk is low within this type of formations(Neaime, 2016).
Trade effects: these are also helpful for organisation as well as customers because these agreements reduce the negative impact of trading. Like because of selling differently the companies can conflict on prices which can impact negative on different functions as well as revenue of organisation. Also help organisation in maintaining the low cost of production where they can easily control the cost by combining technology of each other(Chen, Kim and Kohli, 2017). Technology transfer: by working in a group there is sharing of different ideas technologies and innovation within the market. Technology transfer is the mean key of success of these types of trade agreements and blocks where different organisations can get the benefit of technology, the share technology as well as gain competitive advantage within the market. Trade block agreements: The trade bloc agreements can be defined as those bilateral trade agreements between different countries for smoothening and facilitating easy reading activities within their Nations. It can be easily understood from the European Union example where they are collectively selling products of 30 separate international organisations from different area of Europe. These trade agreements are generally of two type where there are free trade restrictions for some tariff control. Disagreements include those politics and rules which are related to investment ordination competition as well as reducing the effects of labours in this time. Explain the various tariff and non-tariff barriers that exist in the international trading environment. There are various opportunities in front of small scale organisations within the global business world where they can increase their market shares as well as promote the different products of organisation within global market for getting success(Rahman, Zailani and Musa, 2017). But these opportunities there are some trade restrictions and tariff of sections which exist within the global trading environment in front of organisation. These are described below: Tariff barriers: For example: Barrier imposed by American government on the Chinese product where it charges duty on all Chinese products.
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Transit duties: these are those taxation policies of different governments within the competitive world which are related to products and services of organisation and arise when they are transmitted from one country to another.it is one of the major barrier in front of small scale organisations when they are operating on international level because they have to comply with these and formulae different policies about that. Export tariff: it is also a problem in front of Barclays to manage the tariff which is imposed by different government on product and services transferred by the organisation from one place to another. Increase the cost of production within the organisation as well as act negatively on revenue of organisation(Jain, Kothari and Kumar, 2016). Non-tariff barriers: For example: licensing imposed on the products which include high level of medicine drugs as well as impact on human body. Import quotas: it is a trade restriction in front of organisation which is arises when government imposes the quota on their import. There are various Moves taken by the government because of maintenance of balance of trade within the country but it impact on Barclays because they have to face different issues related to profitability and functioning. Voluntary export restrictions: these are those restrictions which are developed by the organisation because of unfavourable economic conditions of changes in the price of goods and services because of inflation and deflation rates. These impact negatively on the business of Barclays because they have to see because of closure of different operations related to internationalisation. Licences: sometimes because of government policies and regulations company have to take permission from government institute regarding their products and services. This impact negatively on the form as they have to close their operations for the time which incur for licence about their goods and services(Fforde, 2019) This can be seen that, Barclays has to face different problems related to non-tariff tariff barriers.it is recommended to organisation that they have to follow them for getting success as well as reducing legal liability.
TASK3 Determine the advantages and disadvantages of importing and exporting and how to secure a deal BasicImportingExporting AdvantagesImportantwillhavethe Barclaysinincreasingits business as well as purchasing from material for the business at lowercostfromdifferent countries. import provide the facility to the organisationwheretheycan improve their services as well as providethebatteryquality products to customers The major advantage of export is that company can increase its business to the global world where it can sell its product to different countries and earn the moneyinforeignreserves whichwillhelpcompanyin increasingitsshare(Gugler, 2017). Exportingwillalsohelp companyinincreasingthe employmentopportunities within the economy. DisadvantageImportofgoodsandservices can also cause negatively on the costoftheorganisationas sometime it get costlier for the organisationtoimportthe resources from different nations becauseofsomebarriersor othertraderestrictions (OgechukwuandAzubike, 2016). importantandalsoimpact negatively on Barclaysasthey have to operate with low capital within the developing economy Exporting can be negative for the organisationin sometime as exporting reduces the value of the products within different countriesbecauseofsome factorsrelatedtocostof transportation and other. Export can also impact on the goodsandservicesofthe organisationasasmalland mediumorganisationof variousdifferentkindsof issues.
which can impact negatively on theprocessofimportingas company can have to import at higherpricesbecauseof inflationwithintheexchange rates. For securing a property dealer organisation can use both input and export policy where it can use import when it is getting the cheaper products raw materials for the production of different products. On the other hand, it can use export for increasing the revenue of the organisation by decreasing its disadvantage and combining all advantage together to get a proper competitive advantage within the market. Explain the differences between merchandise and service imports and exports Difference between merchandise and service imports and exports Merchandise imports and exportsService export and import It include the export and import of tangible goods which are send out of the country by an organisation to other country to a different organisation.it include import and export of goods which are brought into the country and sell it to different country. For example a contractor in UK send toy action figure from UK to United States it is a merchandising import and export. Whenanorganisationimportandexport services rather than goods then it is known as service export and import. It includes non-productinternationalsmallscale enterprises or individual receive payment. Small scale enterprises or individual receive payment after making their services export to different countries. The company of the individual paint is making a service as an import. For example and American tourist stay at the hotel in London then the hotel receive the payment for its services which canalsotermedasservicesimportand export(Solheim, 2016).
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TASK4 Evaluate the various methods in which SMEs can tap into international markets. Due to increase of globalisation as well as international concept there are various methods which can be adopted by the small scale enterprises to get into the international markets and sell their products and services some of these methods are mentioned below: Joint venture: is the most common method which is used by different small scale enterprises as well as big companies to create a base with in different nations and use the concept of internationalisation. here Barclays can tie up with different organisations where they can easily cope with their technology and know the market for building there separate chain within these markets. Licensing: when organisation is dealing in some specific factors which are related to specific drugs or other restricted items then it have to of the licence from the country where it want to start the work. Barclays can use this method where there is requirement of licence for starting the operation within these can type of countries.it is a costlier method as there is some cost which have to pay for acquiring the licence as well as some rules and regulations must be fulfilled by the organisation(Longin and Würschum, 2016). Exporting the product: assemblies can also attack a method where they can export their products and services to their customers on by the use of online or telephonic booking methods this will help the organisation in identifying different opportunities as well as increasing their business for longer period of time. This will also help the organisation in acquiring the findings services according to their requirements where they can easily export their services and products to customer. These all are the methods which can be used by small scale enterprises for increasing their businesses to the international level where they can expect it for increasing the market share. Joint venture is best suitable method for the Barclays organisation as it can use its where it have to invest low amount of resources as well as it can easily identify a proper supply chain of the organisation which is working in the market from past times. Compare and contrast the various ways SMEs can tap into international markets, assessing the pros and cons of each method It is important for small scale enterprises to clearly identify different aspects of the business as well as internationalisation where they can minimise their cost and use the
resources effectively(Izberk-Bilgin and Nakata, 2016). There are some pros and cons which are mentioned below related to the various ways which can be adopted by the small scale enterprises for tapping their business to international markets. Pros This health organisation in attracting more customers as it can work at a global level where it can attract large number of customers buy the products and services. This also wearing economy of scale with small scale business as they can now produce at larger level which ultimately helps them in increasing the economy of their scale. Increase market share of different business enterprises and Barclays as they can now increase their market to global level from one country to another. Cons Increase the capital requirement of Barclays as joint venture expanding licensing and many more function required huge amount of finance for starting the business and expanding it to global level. Organisation also deals with different cultures and backgrounds of different people which can act negatively on the flow of goods and services in different economy. Compare and contrast between various methods BasicJoint ventureLicensingExportingthe product Meanin g It is the methods which are used by the organisation for internationalisationwhere they can join their hands with other organisation which are tradinginannation organisation want to expand its business. Licensing is the method whichisusedbythe organisationsfor internationalicingtheir operations by the help of takinglicencefrom respectedgovernment legalauthoritiesinthe nationwheretheyare goingtolaunchtheir Thismethod includesthe processof exportingthe productstothe Nations where the organisation wants toexpandits business.
business. ScopeThescopeofthistypeof methodishigherforsmall scale businesses we can easily coordinatewithother organisationbythehelpof their innovative products and ideas. Thismethodishave limited scope as there are somerestrictionson licencesofproducts which are hazardous for the human life. this method have a vast scope as there arevarious processeswhich canbefollowed bythe organisation while adoptingthis process as well as it provide a large market cover. BenefitsThisisbeneficialforthe organisationswhichare trading in small scale level as coordinatewithlargescale organisationinthenation without wearing high court on development of supply chain other resources. Thismethodvarious benefit to the small scale enterprisesafteropting thelicencefromthe government it can charge thepricesaccordingto their needs which focuses on higher profits. There are various benefitsofthis methodasit providesdifferent servicestothe organisation whereitcan increase its market aswellascover largemarketby selling product to different nations. CONCLUSION It can be concluded from the above mentioned report that Barclays are important part of global business environment.it can also see that there are various type of methods which can be adopted by Barclaysto gain the advantage within global market by expanding their business operation. It is analysed that there are various advantage of international trade blocs and agreement like foreign direct investment and reduction in negative impacts which will help an organisation to increase its business at global level. Organisation can also use the
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goods and services export and import policy which directly help it in gaining advantage and selling its product by increased market share REFERENCES Books and journals Adeola, O., Boso, N. and Evans, O., 2018. Drivers of international tourism demand in Africa.Business Economics,53(1), pp.25-36. Chen, S., Kim, Y. and Kohli, C., 2017. A Korean, a Chinese, and an Indian walk into an American bar: Tapping the Asian-American goldmine.Business Horizons,60(1), pp.91-100. Fang,E.S.,2016.Threedecadesof“repackaging”Islamicfinanceininternational markets.Journal of Islamic Marketing. Fforde, A., 2019.From plan to market: The economic transition in Vietnam. Routledge. Gugler,P.,2017.Emergingcountries’country-specificadvantages(CSAs)and competitivenessofemergingmarketmultinationalenterprises (EMNEs).Competitiveness Review: An International Business Journal. Horn, S.A., 2016. Subsidiary capacity building in emerging markets: How Japanese MNEs sequencemarketentryanddevelopmentstrategiesinIndia.Thunderbird International Business Review,58(1), pp.55-74. Izberk-Bilgin, E. and Nakata, C.C., 2016. A new look at faith-based marketing: The global halal market.Business horizons,59(3), pp.285-292. Jain, N.K., Kothari, T. and Kumar, V., 2016. Location choice research: Proposing new agenda.Management International Review,56(3), pp.303-324. Literat,I.,2017,January.TappingintotheCollectiveCreativityoftheCrowd:The EffectivenessofKeyIncentivesinFosteringCreativeCrowdsourcing. InProceedings of the 50th Hawaii International Conference on System Sciences. Longin, C.F.H. and Würschum, T., 2016. Back to the future–tapping into ancient grains for food diversity.Trends in plant science,21(9), pp.731-737. Neaime,S.,2016.FinancialcrisesandcontagionvulnerabilityofMENAstock markets.Emerging Markets Review,27, pp.14-35. Ogechukwu, O.S. and Azubike, J., 2016. Evaluation of the Contribution of Non Oil Revenue to Government Revenue and Economic Growth: Evidence from Nigeria.Journal of Accounting and Financial Management,2(5), pp.41-51. Rahman, M.K., Zailani, S. and Musa, G., 2017. Tapping into the emerging Muslim-friendly medical tourism market: evidence from Malaysia.Journal of Islamic Marketing. Schreinemachers, P., Simmons, E.B. and Wopereis, M.C., 2018. Tapping the economic and nutritional power of vegetables.Global food security,16, pp.36-45.
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