Tapping into New and International Markets

Tapping into New and
International Markets

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 Global business environment under which small businesses operate....................................3
P2 Threats and opportunities which is faced by SME in the global environment.......................4
P3 Analysing advantages of international trading blocs and agreements....................................6
P4 Tariffs and non tariff barriers which exist in international trading environment...................7
P5 Advantages and disadvantages of importing and exporting and how to secure deal.............8
P6 Difference between merchandise and service imports and exports......................................10
P7 Various methods through which SME can enter in international market.............................11
P8 Compare ways through which SME enters in global markets, addressing pros and cons of
methods......................................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES................................................................................................................................1

INTRODUCTION
New and international markets can help the company in increasing the profits and
facilitate growth. When the company do exposure in international market then they have to face
both pros and cons of that but operating globally can bring massive advantages and also gives
brand recognition. Airdri manufactures and design hand dryer, along with hand dryer company
offers all washing equipments, elevators etc. this company is known for its good quality of
products. This study will discuss global business environment under which small businesses
operate and also the threats and opportunities which SME have to face in the competitive global
environment. Further, analyse the benefits of international trading blocs and agreements and will
explain tariff and non tariff barriers that exist in international trading. This study will also discuss
advantages and disadvantages of importing and exporting and the difference between
merchandise and service imports and exports. Will evaluate different methods by which SME
can enter in international markets and comparing methods by explaining pros and cons of each
methods.
MAIN BODY
P1 Global business environment under which small businesses operate.
Businesses operate in the dynamic environment and which have direct influence on the
operations and also on objectives of the company. The external environment of Airdri affects the
business operation of company a lot (Aithal, 2017). Although the managers of business have
control on the business internal environment, they decide about what kind of employees they hire
and decisions related to raw materials etc. but the external environment changes fast and not in
the control of business. To compete these factors manager should regularly analyse market
trends. Global competition is the element which is not easy to control by the business. The
various environmental influences are:
economic influences:
Economic influence is the external influences of the business, if there is any fluctuation in the
economic activity then it will affect the entire business cycle of Airdri. If the economy is high
then it will cause less unemployment and high income level. If there is change in the economy
then it will affect the inflation rate and interest rates. Basically it depends on demand and supply
which will decide the products prices and their behaviour in the market.
Political influence:

This factor is the another challenge for Airdri, the government laws and the level of political
stability influence the political climate. If the company want to operate internationally then this
factor is very important to consider. Government stability is also very important.
Demographic factors:
These factors are also not possible to control by the managers, demography is the approach of
the statistics of people which include age, gender, religion, location etc. demographics will help
Airdri to search for target markets and also tell the size of the product. Company must focus on
hiring skilled and knowledgeable workforce so that can achieve company to achieve the
objectives. Company should consider ethnic group when forming their marketing strategies as
the spending power of minority group has increased.
Management skills:
As Airdri is small company so it is very important that the company upgrade their management
skills, the method from which they collect information and the technology. It is also seen that
SME are more flexible when it comes to offer products according to the taste and preference of
the customers. To become more productive company can borrow funds and distribute funds
between research and training and development (Perez, 2017). If Airdri will operate on global
level then the company have to adopt advanced technology to survive for the long time.
Government laws: government policies affect the companies a lot, if the policies are in the
support of business then it can help the company to face the global competition and strict
government laws can influence the profit of the company.
P2 Threats and opportunities which is faced by SME in the global environment.
Threats faced by SME:
cyber crime will increase:
When Airdri will operate at global level then there are chances of increasing in the cyber
crime. Often businesses are on the radar of cyber attack, so businesses have to be very careful
and even the company should appoint experts so that they can control on such crimes.
Carefully store the data:
Company should use such software so that their data can remain secure and should not post their
important data on social media like as we can see that Facebook are said to be responsible for
leaking the personal information of the users (Belyaeva, 2018).
Extreme weather: