Global Marketing Strategies and Trends

This assignment delves into the dynamic landscape of global marketing. It examines various strategies employed by organizations to navigate international markets, considering factors such as emerging market opportunities, the influence of technology and digital marketing, and the importance of understanding diverse cultures. The readings provided offer insights into key concepts, trends, and best practices in global marketing.

Tapping into New and
International Markets

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Global business environment in which small and entrepreneurial business operate........1
P2 Threats and opportunities that faced by SMEs in increasingly competitive global
environment. ..........................................................................................................................6
TASK 2..........................................................................................................................................10
P3 Advantages of international trading blocs and agreements.............................................10
TASK 3..........................................................................................................................................14
P 5 Advantages and disadvantages of importing and exporting...........................................14
P6 Difference between the merchandise and service imports and exports..........................16
Merchandise.........................................................................................................................16
TASK 4 .........................................................................................................................................17
P7 various methods in which SMEs can tap into international markets..............................17
P8 comparing various ways through which SMEs can tap in to international markets.......18
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20

INTRODUCTION
In present global business environment, companies are continuously focusing on new
ways to grow their business internationally. Rapid rise and innovation in digital technology and
removal of trade barriers to enter is considered as easier than ever before, but enterprises needs
to consider the another range of options at the time of making decisions to expand their business
at international level. Present report is based on analysis of ways through which SMEs, COOK
UK, can successfully expand their business internationally. COOK is a manufacturer of and
retail of frozen ready meals. After achievement of success in the local market, Company is
looking forward to growing its operations in other regions of the world and wants to set a plant in
African country to cater for the airline industry. As an assistant business advisor on international
trade, South Africa has been selected for successful expansion of business for COOK. Further,
global business environment in which the small business operates is also discussed along with
the threats and opportunities faced by them in competitive global environment.
TASK 1
P1 Global business environment in which small and entrepreneurial business operate.
1

Notes:
Present report is based on analysis of ways through which SMEs, COOK UK, can successfully
expand their business internationally. Present report is based on analysis of ways through which
SMEs, COOK UK, can successfully expand their business internationally
Notes:
2

From the study, global business expansion has been considered as planned expansion of
business operations and functions by a company in the several regions of the overseas nations
across the world. In present context, as an Assistant business advisor, there are various
opportunities have been identified for SMEs and entrepreneurial business to expand their
business operations in South Africa. In this, company will make efforts to achieve the
competitive advantage by delivering values to customers in global markets.
Notes:
. For example: Cook Ltd can also start shipping of their frozen food products to retailers in South
Africa.
Special modes
Contract manufacturing: Significant opportunity for global expansion in which COOK can
provide permission to other company to start production of frozen foods products under their
label or brand name.
Sole trading: It is also method through which company can expand their business in South
Africa by Establishing their own plants on the basis of personal investments and risks. From the
case study, it is identified that Cook has earned high profits local markets. Therefore, they have
the capability to set up its business at own capital.
3

4

Global expansion and opportunities for entrepreneurs and small business.
Globalization is a major driver which has impacted nearly every business enterprise.
The internalization of markets for sales and purchasing at indirectly influences every business.
Small medium enterprises are continuously becoming increasingly global, mainly on the basis of
inter firm linkages and clusters. Entrepreneurs are considered as economic drivers which are
responsible for establishment of new business. About 25% of manufacturing SMEs are
established internationally and this share will increase continuously.
SMEs operates in global environment by selling their products and services to firms in
another countries. Besides selling products abroad, some essential opportunities can be also be
found in supply chain. Incorporation of more foreign partners in supply chain can helps the
SMEs and entrepreneurs to reduce the costs, enhance productivity and identify new ideas as well
as markets for business set up.
Challenges and threats of globalisation for entrepreneurs and small businesses.
Critics of globalisation have argued that although there are various benefits associated
with globalisation, it is also apparent that SMEs and entrepreneur are threatened in different
ways.
With continuously opening borders which has considered a number of Multinational
enterprises in various countries are offering lower prices, small firms are forced to sell their
products and services at lower costs because it is the only way they can compete and this will
give a negative impact on their profitability.
Global expansion has also brought about stiff competition from Multinational entrepreneur
investing in overseas nations. In developing countries, government have policies benefiting
MNE's and disadvantaging Small enterprise in their quest to attract FDI.
It will create difficulties in adapting corporate culture to new situations and challenges.
Risk is to focus on too much on existing basis of business.
5

P2 Threats and opportunities that faced by SMEs in increasingly competitive global
environment.
Notes:
In this context, cook operating desire to operate on a global market can take advantage of four
main opportunities and achieve competitive advantage over rivals in local market of South
Africa.
6

• In this, Cook can serve a small segment in SA together with the several others within
other countries in order to reach the scale of production and technology which is
considered as impossible for them in single market.
Notes:
. By making contracts with different airlines companies, company can reduce their risk of failure.
7

Notes:
In this, company needs to consider the laws which provides impact on their business before
exporting and establishment of plant in south Africa.
Fluctuation in tax rates: It implies that changes in tax rates also provides an impact on the costs
and sale of Cook in other countries which imposes a threat of decline in sale
8

Notes:
. By reducing the prices through use of low material, company will able to establish their
business operations and achieve a competitive advantage of over rivals in competitive market.
Further, threats will provide a negative implication on business like decline in sale, decrease in
demand of products and services and rise in costs of materials etc.
9

TASK 2
P3 Advantages of international trading blocs and agreements.
Notes:
The basic objective of these trading blocs formed and the agreements that have been signed is to
ensure free flow of goods as well as services among the nations to satisfy human needs across
the world. This bloc created in UK, i.e. European Union, has benefited the society and its
members along with the business organisations that operates in the economy. The cited venture,
i.e. COOK has also gained numerous advantages of trade related agreements, a detailed
evaluation of which is explained as under:
10

Notes:
• This expansion opportunities has enhanced specialisation on the part of cited firm, as
increasing market share requires an enterprise to improve its offerings and be specialised.
Cited firm deals with providing ready meals, which puts the customers at ease, thus, they
are attracted more towards its offerings.
• The scale of operations of present venture has increased overtime due to the free flow of
its providing in international market. It has become a leading provider of frozen ready
meals in UK, thus, it has emerged as a large scale industry from a small enterprise.
• Present firm deals with the agreements made under trading blocs of UK, thus, this gains
a competitive advantage for the firm over its those competitors which operates outside
the blocs and does not work in accordance with the agreements.
11

Notes:
12

• Transit duty: Such a duty is imposed on the transition of products from the border of one
country to another.
Notes:
Subsidies: This is concerned with the domestic producer; the government of the country provides
subsides to domestic producers to compete against foreign competition.
These barriers, whether it be tariff or non-tariff barrier, imposed by an economy leads to
a generation of limited scope for the ventures operating in international market.
13

Notes:
 Trade effects: With involvement of trade blocs, there is no inclusion of tariff and so
company have to pay low costs on import of raw materials. It causes reduction in prices
of products and increase in demand. It allows the organisation with a benefit in
manufacturing to prosper.
TASK 3
P 5 Advantages and disadvantages of importing and exporting.
Importing
Merits: Import of material for
manufacturing of goods and
services is a path for Cook to raise
its profit margins. There are various
for enterprise in importing the
goods such as low price, high
quality and benefits related to
global trade. Company will achieve
comparative advantage on
competition which means lower
prices. Moreover, importer can get
Demerits: There are various
economists who have
considered that importing of
products will provide
numerous disadvantages. For
example: Importing of raw
materials will lead to erosion
of local market along with the
national economies. It will
also raise the condition of
economic deficit I e rise in
import and decrease in
Moreover, a aggregation of risk in
investment and market potentiality
is termed as the benefits of
location for particular
combination of market. In present
context, for retaining the
competencies within organisation
and stitching it throughout the
nation without retaining the
license, selling and outsourcing is
major global benefit in exporting
of products. Low investments
14

most the cheaper products from the
international market as a result of
low labour cost and low taxes etc.
While focusing of quality, the
company can also have raw
materials with high quality and
manufacture its frozen food
products with high quality and
expand the profits margins of
business. In African countries,
government provides major support
to the importers for development of
trade relationships.
Thus, it can be said that exporting
the products and service will not be
suitable for Cook towards
expansion of business. They can
import the products from
international market at lower costs
which will tends to raise the profit
margins.
`In the order secure an
import or export deal, the
organisation must needs to keep a
proof of import or export. Safe
mode of payment must be selected
for transfer of payments with all the
documents. These must needs to
identify the importer or exporter,
seller or customers, goods and their
value, export destination and mode
of transport and the route. In the
both cases, the most good company
exports or imports will be zero rate
for VAT.
exports. Suppliers in of raw
materials for frozen food
products will also face loss of
jobs in the respective markets.
Exporting:
Merits: One of the major
benefit of export of products
is identified as ownership
which is related to the
international business
experience of the firm, assets
and capability of the exporter
of either developing
differentiated or low costs
products with in the value
chain.
have been required in exporting of
products that the other modes of
international trade and expansion
such as FDI.
Demerits: According to (),
exporting of the products is
complex and disadvantageous for
SMEs which having less than 250
employees. Further, selling of
products and services will be
considered as difficult for them
rather serving the domestic
market. Due to lack of
understanding of different
languages, cultural difference,
exchange regulations and trade
provisions will have a major
influence on exporting the goods
for SMEs.
15

P6 Difference between the merchandise and service imports and exports.
Basis Merchandise Service imports and
exports.
Meaning It is considered as an activity
for the promotion of sale of
goods at retail. In this,
company will perform
activities like display
techniques, on the spot
demonstration, pricing,
provide free samples and
special offers to the
organisation in airline
industry.
It is termed as an activity of
import and exporting goods
from / to other country. In this,
company will important good
services from the organisations
in international market to
reduce their cost and provide
services to companies to
whom they export their
finished goods.
Source of revenue In this. Company will make
revenue and profits from the
sale of inventories such as
frozen foods to airline
companies. It usually relies on
the sale of tangible goods.
In this, company will offer
services such as house
keepings, distribution of food
to travellers as the main
sources of revenue. They
usually measure the results and
time spent on import and
export as a basis of revenue.
Inventory In merchandise, based on the
business make revenues and
profits off inventories, it is
imperative that current as well
as future inventories needs to
There is no requirement of
keeping inventories in import
and export of services.
The nature of business can also
determine the future costs, the
16

be kept in reserve. enterprise will incur and
required to budget for. It will
be specially in the case when
comparing the different
structures of merchandise and
service-based business on
imports and exports. In this
context, there are some points
have been discussed which
states the distinction between
merchandise and service
imports and exports in context
of Cook.
TASK 4
P7 various methods in which SMEs can tap into international markets
As per the above-
mentioned scenarios, there
are various important
method have been
available for the company
through which they can tap
into global and
international markets. A
business identifying the
options suggest by the
Ansoff matrix should well
be stimulated to focus on
the market development
and try to enter
international market as
growth strategy. Below
given are the methods
through which COOK can
enter in to international
market such as:
Exporting direct to clients:
It is essential method of
tapping in which Cook,
UK will take orders from
17

the international customers
and starts shipping of
products to their
destinations. It is
considered as essential
because it develops direct
relations of Cook with
airline companies and
entire profits margins will
remain with the business.
Selling via agents and
distributor: Cook can also
make a distribution or
agency contracts with the
one or more intermediaries
such as distributors and
agents, who will buy the
stock to provide service to
local demand. It is
beneficial as agents of
distributors have specialist
market information and
knowledge about the
existing customers.
opening overseas
operations: It is also
important method which
involves the physical
establishment of one or
more business locations in
the target market. As per
the case study, Cook, UK
also needs to set u their
new plant in African
country to serve the Airline
industry. However, Cook
can enter in to market of
South Africa and set up a
new business location nut
it requires a huge
investment and less
suitable for SMEs to
operate in global market.
joint venture: In this,
the company makes
their investments in an
existing business which
operates in the target
market. Cook can also
make joint venture
with the other frozen
food manufacturing
company in South
Africa and make
collective efforts to
expand the business.
P8 comparing various ways through which SMEs can tap in to international markets.
There are various ways
have been implemented by
the organisation in order to
enter in to international
market but it is essential
for the company to analyse
that which method will be
suitable for them and
provide them benefits
rather than generation of
economic problems. In this
context, some important
methods have been
compared with each
other’s in order to
understand their
effectiveness for selection
from enterprise.
It is also important method
which involves the
physical establishment of
one or more business
locations in the target
18

market. As per the case
study, Cook, UK also
needs to set u their new
plant in African country to
serve the Airline industry.
However, Cook can enter
in to market of South
Africa and set up a new
business location nut it
requires a huge investment
and less suitable for SMEs
to operate in global
market.
Licensing and franchising Agreements: Both these terms implies to agreement which can be
made for providing rights to other individual or companies to sell the products of existing
business in another countries on its brand name. For expansion in international market,
companies can provide licenses and franchises to individuals in various countries where they
need to establish their market. It does not require any cost and provide long term benefits to
organisation. In comparison, It can affect the brand name of company if franchises will not
provide appropriate services to customers.
Creating Joint ventures: For globalisation of business, SMEs can also enter in to joint venture
agreement with MNEs in other countries for complete of specific project. It helps in developing
relationship and getting international experience. In comparison, it is more risky and can create
challenges and threats of liquidation.
Relationships and partnership with MNEs: Creating relationship and partnership with MNEs
in international markets is a best opportunity for SMEs to expand their business. It is beneficial
for them due to limited liability and needs of financial resources. In contrast with licensing and
franchising, it creates challenge for company to perform its operates and need to compromise on
grounds of profitability.
From comparison, it is analysed that licensing and franchising is appropriate and
beneficial for COOK to expand in international market.
CONCLUSION
In this report, it has been concluded that there expansion of business at international level
is most complex task which required approprite and analysis of effective methods. It is also
analysed planned expansion of business operations and functions by a company in the several
regions of the overseas nations across the world. There are various method through which Cook
limited can expand its business in international market such as Exporting direct to clients, Selling
via agents and distributor, joint venture, sole trading and partnership etc. Moreover, Cook also
19

gets various opportunities in establishment of own plant in south Africa and achieve a rapid
growth in business operations.
20

REFERENCES
Books and Journals
Andrews, M., 2017. DHHI's global approach. Australia's Paydirt. 1(254). p.12.
Bartlett, C.A. and Beamish, P.W., 2018. Transnational management. Cambridge University
Press.
Bridge, G. and Bradshaw, M., 2017. Making a global gas market: territoriality and production
networks in liquefied natural gas. Economic Geography, 93(3), pp.215-240.
Cabezas, H., 2017. Yoram Krozer: Theory and practices on innovation for sustainable
development.
Chen, S. 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.
Estrin, S. and Khavul, S., 2018. The evolution and adoption of equity crowdfunding:
entrepreneur and investor entry into a new market. Small Business Economics, pp.1-15.
He, S., Fallon, G., Khan, Z., Lew, Y.K., Kim, K.H. and Wei, P., 2017. Towards a new wave in
internationalization of innovation? The rise of China's innovative MNEs, strategic
coupling, and global economic organization. Canadian Journal of Administrative
Sciences/Revue Canadienne des Sciences de l'Administration, 34(4), pp.343-355.
Lane, V. and Parthasarathy, M., 2018. A Comparison of Excess Stock Market Return to Standard
Marketing Metrics. In Research, Practices, and Innovations in Global Risk and
Contingency Management (pp. 20-37). IGI Global.
Little, S. E. and Poon, T. S. C., 2017. Introduction: From International to Global. In Global
Innovation and Entrepreneurship (pp. 1-17). Palgrave Macmillan, Cham.
Marinchak, C.L.M., Forrest, E. and Hoanca, B., 2018. The Impact of Artificial Intelligence and
Virtual Personal Assistants on Marketing. In Encyclopedia of Information Science and
Technology, Fourth Edition (pp. 5748-5756). IGI Global.
Najmaei, M. and Raueiser, M., 2017. Marketing from Islamic Perspective, Tapping into the
Halal Market. Journal of Marketing Management and Consumer Behavior. 1(5).
21