International Business: Expansion Strategies for Ruskin's Cafe in Canada

This report discusses the expansion strategies for Ruskin's Cafe in Canada through PESTLE analysis and Porter's Five Forces model. It explores the rationale for going international, barriers faced by firms, and new entry strategies such as exporting, acquisition, and partnership. The report also provides an overview of the cafe and the country, including its economic, social, and legal environment.

International Business

Table of Contents
Executive Summary.........................................................................................................................3
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
Analysis and discussions..................................................................................................................4
1. Brief overview on the Ruskin's Cafe.......................................................................................4
Rationale for going international.................................................................................................4
2. Discussion on the country where Ruskin's Cafe expands their business.................................5
Models for process of international market.................................................................................6
4. Barriers which a company faces on expansion internationally................................................9
5. Critically evaluating the implementation approach for internationalization process of
specified target market.................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

Executive Summary
The report has discussed the concept international business and models of expansion in another
country. The organization wants to expand their business at international level is Ruskin's cafe.
They want their business in Canada as well, with the help of PESTLE analysis. It has been
analysed that circumstantial information for direction on expanding the business in the new
country. With the help of Porter's five forces it also analysed the power rates which can affect the
businesses.
INTRODUCTION
International business refers to the growth and expansion of a business. It refers to the
purchasing, selling and services which starts their another business outside their national border.
All organizations willingly to go international market and have a common goal which to increase
their economic worth when applying for new trade transactions. The organization which
expanding their business is Ruskin's Cafe. At Ruskin's Cafe they offer the nice food, visitors can
have perfectly cooked and delicious food. Cheesecakes and fruitcake are one of the speciality of
Ruskin's Cafe. In this report it stated that the Ruskin's cafe is expanding their business to another
country, some models and strategies are also analysed in this report which helps them to the
process of selection of market. Some strategies and barriers which an organization face after
entering the new place internationally.
LITERATURE REVIEW
Theme1: International business and its importance
As per the view of Morita, T. and et.al., (2020) International business relates to any situation
where the manufacture or statistical distribution of goods and services crosses country
borderline. Globalization that modify towards a more dependent and incorporated global
economy, that creates greater possibility for international business. As stated by Schiele, H and
et.al., (2022) such globalization can take place in term of the human action and where they can
begin the goods and services easily.
Theme2: Rationale for going internationally
As said by Sunarya, P.A., Bernard, D.D. and Damanik, D.M., (2019) Generally companies go
international because they want to develop or expand their business. The profit of entering
international market include generating more income, competing for new gross sales, new

investment chances, modify, reduction of costs and recruiting new people. As mentioned by
Schulze-Horn, I. and et.al., (2020) Going international is a strategy that determine by a variety of
component and is typically enforced over the time.
Theme3: Barriers faced by firm internationally-
According to Morita, T. and et.al., (2018)there are a lot of barriers which is faced by companies
during the expansion internationally. Language and culture barriers occurs when if they do not
speak the same language as the customers, communication is going to be challenge. Local
competition can also bear upon the business. As per the views of Park, S. and et.al., (2018) In
the opinion of The organization has been very careful and aware of what the challengers are
doing in order to control the advantages they have over the organization.
MAIN BODY
Analysis and discussions
1. Brief overview on the Ruskin's Cafe
The cafe which is chosen in this report is Ruskin's cafe, where they offer a good taste.
Ruskin's cafe wants to expand their business from UK to another company, for a better growth.
This cafe has well- trained and well-mannered staff to attain the guests.
Rationale for going international
Some reasons Ruskin's Cafe is going international is mentioned below:
Improving profit margins- This is one of the common reason for entering international
business. When growth strategies are used up on the national level, the upcoming style of an
organization often moved out international growth. Ruskin's Cafe wants to increase their
customer base to improve the growth of their business. They can create the same loyalty across
the worldwide businesses and their profits can increase and business can grow as well. Doing
business worldwide may open up with the advantages of new financing opportunities.
Competing for new sales- Nearly affiliated to the goal to build up traditionally, the
profit margins is one of the desire of any organization to increase their growth. Even if the cafe's
operators are contented with the current revenue, global expansion can boost up to improved
general revenues. Being the first to get in a business but in the other country can provide
significant benefits (Lester, J., 2018). If the Ruskin's Cafe do not enter a global business very

sooner than the competitors can. Not only they are missing the income source, besides they can
lose other valued assets that they can use to promote the business.
Recruiting the new talent in global business that also allow new venture access to a
bigger and more wide-range talent. Employees who communicate with different languages and
understand dissimilar culture can raise the link with a wider consumer base. Having a global
business brand that is well reputed, will ask for top talented employees for the Ruskin's cafe.
Businesses can also construct international work teams in a manner that allows for collaboration
on building a international brand.
Enter new markets and spread- The risk quality of globalization is also acknowledged
countries to initiate business barriers and lowering tax over the world. Globalization permits
organization to modify their businesses and be able to moderate the risk of decrease need, over
various countries.
2. Discussion on the country where Ruskin's Cafe expands their business.
The country which is chosen by the consultant to expand Ruskin's cafe internationally is,
Canada. This country is full of entrepreneurs, it provides a visibility to the proprietor of
Canadian small and medium-sized organization (Moran, Nono and Rherrad, 2019). All the
essential entrepreneurial activity frequently hold place inside the business. Capitalism is a
significant power to manage the creativity, productivity, job formation and economic
development.
New businesses in Canada have high durability rates at both the one-year and five-year
point of view. Again, Canada differentiate effectively in this point with almost every country
investigated here. Canada creates a lower division of fast amplifying businesses, in the food
sectors most of the investigating countries observed here. Canadian small medium enterprise's
proprietor are attracting more different and more well-educated people. This direction is
probably helps to modify the amount and originality of new businesses.
The business and economic condition in Canada has been strongest and increasing at a
rate, beyond other countries. Meanwhile, the governing industries in Canada are commercial
enterprise, fabrication and raw materials. Business perception in Canada is related to US and
UK. Canadian business has routinely been stratified in respect for punctuality, equality and
Organization variety belief specifically governing the business situation.

Canada has a direction through the global business crisis, better than numerous global
banks due to its strict regulation in bank environment. In fact, Canada has one of the healthy
Organization finance systems in worldwide (Kennish, 2019.). This benefit connected with its
well-knowledgeable manpower, abundance of natural resources and advantageous free trade
arrangements make Canada a uppermost choice for businesses. Canada's economic system is one
of the most cultivate and largest in the world.
For expanding the business in Canada, Ruskin's cafe has to face some disadvantages as
well. Which is organization needs to borrow some money to buy a new premises and some
equipments. Compromised its quality due to lack of resources, governance, faculty and even the
device may not be able to keep up with the extra workload.
The services business enterprise in Canada accounts for a tremendous 80% of GDP.
Business proprietor in Canada benefit from various international industries. The North American
free goods agreement and full scale economical trade agreement connecting Canada and the
European Federal. Canada has numerous skilled people in the workforce because of its esteemed
universities and institutes for business training. Foreign business proprietor who desire to hire in
Canada will have an expandable talent organization with well-educated and capable candidates
to select from. Foreign capitalist look frontwards to setting up shops in Canada.
Models for process of international market
The models which is are mentioned below is PESTLE analysis and Porter's Five Forces model:
PESTLE analysis of Canada:
With the help of PESTLE analysis provides the circumstantial information about the business
direction which is discussed below:
1. Political environment- Canada is an anti authoritarian country with a legislature in a
spot. Canada has a benefit of political stability, it is one of the safe country in the globe.
With a rate of crime is low and reliable patrolling services, Canada's locality itself a very
good point for businesses and exploration. It is worthy to mention that Canada's direction
on globalization operations has earned it a good international image.
2. Economic environment- Canada has a one of the tenth largest economic system in the
world-wide. It has a integration with the World Trade Organization and the dictatorship
of nations. Canada also has a free marketing understanding with a number of countries. It

has a extremely formulated mixed economy, Both the governing and the people of
Canada make economical way out for the country.
3. Social environment- Canada is a very different country, in fact diverseness has played a
major role in the history of the Canada. Many people call Canada a country of
newcomers. Canada supports immigration and people with proper ability and experience
can apply to resettle to the country. Canadians living standard is high amongst all the
countries in the world.
4. Technological environment- The improvement and approving of mobile technology
creates many opportunities for Cafes. They are group up with the Apple to use their
gadgets on the plan for presenting discounts. The growing preferences for internet
connectivity has granted to cafes as an opportunity to modify their coffee houses and
support on the competition by providing unsecured Wi-Fi.
5. Environmental issues- The accessibility of non- renewable goods, particularly popular
ones like oil or fossil fuels can immensely change the market. The contribution of these
goods falls, costs might grow high, substantially affecting organizations that use the fuels
in any important quantity (Christodoulou and Cullinane, 2019.). It refers to the physical
situation on earth, consider everything from climate and weather to accessibility of
resources.
6. Legal environment - Positive rights of worker are secure by law in Canada. There are
some minimal regulation employers must continue by regarding employees, business
hours, nominal wages, illness leave, holiday and many more. The Canadian civil right
forbid favouritism on the base of gender equality, age and a number of the information.
Porters Five forces models:
For the analysis of the competition in the Canada, Porter's five forces analysed that which is
discussed below:
 Bargaining power of suppliers- In some business inputs-labour, raw materials are
much-needed. The value of the inputs can have an important effect in the organization.
Bargaining power of suppliers is high, if the buyer does not correspond a large part of the
distributor's sales.
 Bargaining power of buyers- The power of buyers narrates the outcome that the food
sector's customers can have on the desirability of the business. Food industries has three

types of buyers direct consumers like guests in the cafes, supplier and wholesalers.
Bargaining power of buyers are low when buyers are high in numbers.
 Threat of new entrants- The important obstacle to the new entry are: capital
necessitate, government rules and regulations, accession to inputs and classification. The
power of threat of new entrants is high because the new organization will face the
problems.
 Threat of substitutes- Some products from one business can be arranged by goods from
another business (Nandonde, 2019). This happens in the food sectors mostly, if
organizations produce a trade good product that is dissimilar, consumers can easily shifts
away. The power of substitutes is high when competitors of another companies offer
consumer more attracted and lower cost products.
 Rivalry among competitors- Threats competitor can be decreased by employing this
two tactics . The first is, to reduce the cost competition in food sector, differentiate the
good from the competitors by introduce or rising attribute. Other tactics is focussing on a
specific portion of the market. Rivalry competition is high when there are just a few
industries are marketing a product and services.
New entry strategies.
There are some strategies which helps to choose global market:
Exporting- Exporting is generally the easiest way to enter an international market and
Ruskin's Cafe makes their strategies after analysing the country's advantages and disadvantages,
therefore most industries begin their global expansion using this framework of entry. Exporting
is the sale of production and services in international countries, that are sources from the
domestic country. Among the disadvantages of exporting are the costs of transporting goods to
the country, which can be advanced and can have an unsupportive impact on situation.
Acquisition- An acquisition is a dealing in which a firms gain power of another company
by buying its stock, swapping the stock for its own profit. Acquisitions are appealing because
they give the company fast, constituted access to a new market. When deciding whether to
follow an acquisition strategy, Ruskin's Cafe analyse the laws in the Canada.
Partnership and strategic alliance- Another way to enter a new market is through a
strategic confederation with a local partner. A strategic alliance affect a written agreement
between two or more organization condition that the active parties will cooperate in a settled

manner for a certain time to accomplish common purpose. Ruskin's cafe already made their
agreements along with another organization. The advantage which refers that local firm likely to
understands the local taste of market and ways of doing business better than external firm.
Whereas, the disadvantage of partnering are deficiency of direct control and the possibility that
partner's objective is differed from its firm's objective.
4. Barriers which a company faces on expansion internationally.
There are four barriers in expansion which is highly affected the businesses at international level:
 Talent acquisition and on boarding- Acquiring a talent is a big part of international
expansion. Talented faculty provide a basic knowledge base, determine success within a
fixed region (Dawadi, Basnyat and Adhikari, 2020.). Hiring staff on the premise is also a
challenge, affect a unique on boarding procedure that they might find ambitious to
implement as its carried out distantly.
 Compliance issues- Another challenge of international expansion is tax and compliance.
Productive in more than one country means handling with more than one fixed business
regulation. Organization needs to be well conscious of any special trading standardized
that apply to their operation.
 New market competition- Comparability in services, products and business models can
create furious rivalry between organizations. Similarly, new organization are having to do
business deal with two separate place of regulatory. Amount and dealing stimulation
whereas, the rival may only be operative in one.
 Language and culture- Perception of the local language, culture and intended the
correct rule for doing business in a new marketplace that can be essential for successful
business expansion. At least one employee should know the local language and support
the product perspective.
5. Critically evaluating the implementation approach for internationalization process of specified
target market
Internationalization process is referred as designing a product or service in a way which
can be consumed by the customers in different companies. This process is useful for the
businesses that are looking for expansion in different nations which is crucial in order gain the
maximum advantage. It is helpful in increasing their market share and gaining competitive

advantage in the global industry. Ruskin's Cafe may implement the licencing approach for
successful expansion of their services in the Canada market. Licensing is an effective
internationalization strategy that provides assistance to a business to expand by providing the
right to conduct business practices on the name of the company which is looking to expand
(Ardito, Peruffo and Natalicchio, 2019). This approach may be implemented by the company in
order to select a licensee in the Canada market to agree their terms and decide the payment of
royalties, proprietary license etc. This process may help the company to partner a reliable
individual or business in the foreign market and reduce its risks of expansion. It may be helpful
for the business to use the market image of licensee in the Canada market which can have a
positive impact on its expansion in the global business environment.
The target market of the business may include the consumers of Canada that are
interested on visiting coffee shops on a regular basis and are interested in having a better time.
The people who are of the age of 16 to 40 may be targeted as they are more keen to explore new
cafes and restaurants in their areas. The people from different gender, backgrounds and
ethnicities may be given the required details about the unique dishes and services that may be
offered to them by the business (Oe and Weeks, 2021). The licensee may have a better
knowledge about the market conditions that may be helpful for the business to interpret the needs
and demands of the target market. This may be a crucial aspect for the business to consider in
order to gain better competitive advantage in the industry and enhance its productivity. The
organization may be able to reduce the risks of large capital investment which can be helpful in
order to work upon the different areas of the business and provide the customers with better
quality of output. This internationalization method is easier for the business to have a good
expansion in the new market and get better opportunities to grow their brand image in the global
scenario (Pinho, da Rocha and Pinho, 2022). Ruskin's Cafe may get a better exposure of the
demand and supply needs of the new market with the help of licencing approach that is crucial in
order to conduct a successful expansion of business in the global market. It may implement this
approach for engaging the customers with the reputation of licensee in the country which has a
positive impact on the success of the business.

CONCLUSION
In this report it has been concluded the brief about the expansion of international business. It
refers to the purchasing, selling and services which an organization wants to start their another
business outside their national border. The organization which mentioned above is Ruskin's cafe.
They located in UK and wants expansion of their business at international level. The country
which is selected by them is Canada, this is one of the most successful country over the globe.
PESTLE analysis and Porter's five forces models are also mentioned above which refers to the
analysation of the country and company. Some barriers also analysed which is face by an
organization in expansion of the business at international level. Approaches which is critically
evaluated for internalization process for specified market.

REFERENCES
Books and journals
Christodoulou, A. and Cullinane, K., 2019. Identifying the main opportunities and challenges
from the implementation of a port energy management system: A SWOT/PESTLE
analysis. Sustainability. 11(21). p.6046.
Dawadi, S., Basnyat, B. and Adhikari, S., 2020. A review of medical problems in Himalayan
porters. High altitude medicine & biology. 21(2). pp.109-113.
Kennish, T., 2019. From Next Best to World Class: The People and Events That Have Shaped
the Canada Deposit Insurance Corporation 1967-2017. Banking & Finance Law
Review. 34(3). pp.505-511.
Lester, J., 2018. Business subsidies in Canada comprehensive estimates for the government of
Canada and the four largest provinces. The sNandonde, F.A., 2019. A PESTLE
analysis of international retailing in the East African Community. Global Business
and Organizational Excellence. 38(4). pp.54-61.chool of public policy
publications, 11.
Moran, K., Nono, S.A. and Rherrad, I., 2019. Does confidence data help forecast business
cycles? New evidence from Canada. Applied Economics, 51(21), pp.2289-2312.
Morita, T. and et.al., 2018. Implementing Multi-Robot Cafe by PRINTEPS with Service Quality
Dimensions. Procedia computer science. 126. pp.1954-1963.
Morita, T. and et.al., 2020. Evaluation of a multi-robot cafe based on service quality
dimensions. The Review of Socionetwork Strategies. 14(1). pp.55-76.
Nandonde, F.A., 2019. A PESTLE analysis of international retailing in the East African
Community. Global Business and Organizational Excellence. 38(4). pp.54-61.
Park, S. and et.al., 2018. CAFE: A virtualization-based approach to protecting sensitive cloud
application logic confidentiality. IEEE Transactions on Dependable and Secure
Computing. 17(4). pp.883-897.
Schiele, H. and et.al., 2022. The “research world café” as method of scientific enquiry:
Combining rigor with relevance and speed. Journal of Business Research. 140.
pp.280-296.
Schulze-Horn, I. and et.al., 2020. Artificial intelligence in purchasing: Facilitating mechanism
design-based negotiations. Applied Artificial Intelligence. 34(8). pp.618-642.
Sunarya, P.A., Bernard, D.D. and Damanik, D.M., 2019. Viewboard Implementation Based on
Javascript Charts as a Media for Submitting Sales Information on a Green E-
Commerce Website Light Cafe. Aptisi Transactions On Technopreneurship
(ATT). 1(1). pp.11-19.