Tapping into New and International Markets

Tapping Into New and
International Market

Unit Number and Title U
ni
Project Title E
xp
Learners
Declaration: I
certify that the
work submitted
for this unit is
my own and the
research sources

Table of Contents
INTRODUCTION ...........................................................................................................................4
TASK 1............................................................................................................................................4
P1 Global business environment in which SME business operate its functions .......................4
P2 Opportunities and Threats which are faced by SME in an competitive global business
environment.................................................................................................................................6
TASK 2............................................................................................................................................7
P3 Determine and analyse advantage related with trading blocs and agreements .....................7
P4 Explanation of various tariff and non-tariff barrier related with international trading
environment ................................................................................................................................8
TASK 3............................................................................................................................................9
P5 Advantages and disadvantage of importing and exporting to ensure business deal..............9
P6) Explain the differences between merchandiser and service import and exports................11
TASK 4..........................................................................................................................................12
P7) Evaluate the various methods in which SME can tap into international market................12
P8) Compare and contrast the various ways SMEs can tap into international market, assessing
the pros and cons of each method..............................................................................................13
CONCLUSION..............................................................................................................................15
REFERENCES ..............................................................................................................................16

INTRODUCTION
Globalisation provide platform to all organisation for performing and managing functions
beyond the local market and it generate international market for each industry or sector. With
selling organisational product or service in another country management introduce the
organisation to a huge market. This report is written from perspective of Smith brothers and they
provide services in the energy sector and the recent focus of organisation is to establish their
division within international market (Zhong and et. al., 2017). Moreover, this report highlights on
global business environment in which small and entrepreneurial business operate and also threat
as well as business opportunity that exists in global business environment. International trading
blocs and agreements will also include the report along with tariff and non-tariff barrier of
international trading environment. In the last, advantages and disadvantages of importing and
exporting are focused in the upcoming report.
TASK 1
P1 Global business environment in which SME business operate its functions
The study of international business market involves and undertake different factor which is
used to understand the effects of the organisation activities that is impacted due to performing
operations into foreign market. This also defines that for accomplishing success in the foreign
market it is essential for Smith brother to enter into international business that helps in recognise
the diversity and difference between local and global environment. With the analyse of
respective organisation market conditions it is identified by management that multi-domestic
company that are independent to trade are more focused for entering global operations because it
leads business to undertake huge market area that also enhance company profits (Yahya and
Mutarubukwa, 2015). Smith Brothers can make use of PESTLE analysis so that it can evaluate
the market of UK which can help the company in strategically expanding in the market of
Germany:
PESLTE
 Political- The first step relates with the political environment conditions and it include
different factors which focuses on company and it also leads to complete all task in an
appropriate manner by following the government rules and regulations. In context of
Smith brothers it works as positive environment because most of the government are