Tapping into New and International Markets

This presentation discusses the benefits of tapping into new and international markets for SMEs. It covers the global business environment, trading blocs, and agreements. It also explores how SMEs can take advantage of international opportunities. The chosen country and region for expansion is Scotland, United Kingdom.

Tapping into New and
International Markets
LO1 and LO2

Table of content
 Introduction
 Introduction to the chosen country and region
 Analysis of global business environment
 Rational for SMEs to expand their business internationally
 Critical evaluation of the way in which SMEs can take advantage
of international opportunities
 Explanation of trading blocs and agreements
 Explanation of various tariff and non tariff barriers
 Evaluation of international trading blocs and agreements
 Conclusion
 References

Introduction
The SME which is selected for this project is Red and Blue
restaurant which will expand its business in Scotland it is
currently operating business in Liverpool. The main objective
of the organization is to attain growth for which it has planned
to expand business in a new country.

Introduction to the chosen
country and region
The chosen country and region are Scotland, United Kingdom.
Red and Blue is currently established in Liverpool which will
expand its business in Scotland to attain growth and
development. This nation is a part of UK and covers the
northern third of the island of Britain. Its south and west part
is surrounded by Atlantic Ocean and the north-east is
surrounded by North Sea.

Analysis of global business
environment
Global business environment is the combination different types
of factors which are leaving impacts upon functionality of a
business. Main purpose of analysis it is to make sure that all
the elements which may leave negative impact upon a business
are analysed in advance and effective strategies are formed to
deal with them. The global business environment of Scotland
is highly impacted due to climate change, governmental
policies and Brexit.

Continued...
Technological advancements: The level of this driver in
Scotland is very high which helps the country to contribute a
higher percentage in the overall GDP of UK.
International trade: Percentage of it in Scotland is very high
which is benefiting the business entities to execute their
operational activities in systematic manner.

Continued...
Global business environment can be defined as the environment in
which different countries are operating business around the world
to attain growth. It is very important for all the entities to make
sure that they have detailed information of it as it is required to
formulate effective decisions for growth of the organisation. As
Red and Blue is planning to expand its business in Scotland so it
is vital for it to analyse it. In order to assess the global business
environment PESTLE analysis could be used by Red and Blue
Restaurant.

Continued...
Political
Economic
Social
Technological
Legal
Environmental

Rational for SMEs to expand
their business internationally
SMEs are the businesses which are benefiting countries to be
in a stable position so that the fluctuation in GDP could be
ignored. For all such types of companies it is important to
expand their business internationally.

Continued...
Rational of it could be understood with the help of following
points:
Main reason for international expansion is generating higher
revenues and capturing larger market share.
By expanding internationally SMEs will be able to grab
foreign direct investments which will help to perform
operational activities properly.

Critical evaluation of the way in
which SMEs can take advantage
of international opportunities
For all the SMEs it is vital to make sure that they analyse the
international opportunities and take advantage of them. For
this purpose, effective market research could be conducted by
them which can guide them collect detailed information about
taste, requirements and preferences of potential customers who
are targeted by them.

Explanation of trading blocs
and agreements
Trading bloc can be defined as a intergovernmental
contract which is made by some countries to import
and export appropriately. There are several types of it
which are as follows:
Preferential trade area
Free trade area
Customs union
Common market

Continued...
Trade agreements are the set of contracts which are made by two
countries which have agreed to help each other in trading. Different
types of it are as follows:
Multilateral agreements: Main purpose of them is to shape
international trade unions by setting riles for trade between several
countries.
Bilateral agreements: These are used to set trading rules between
two specific countries and provide them tax and tariff benefits.

Explanation of various tariff
and non tariff barriers
Tariff is the amount of tax which imposed by the countries
on importing goods and they charge tax according to per
unit they import. These kind of barriers will increase the
product price and further it reduces the overall profit
margin of the company.

Evaluation of international
trading blocs and agreements
Trading bloc is the inter-governmental agreement which
include the regional barriers for the international trade. With
the help of it, organizations able to reduce eliminate the
restriction and allow participating states to involve in the
market. Implementation of trading bloc include the agreement
where countries can freely trade or improve the economy
significantly.

Conclusion
This presentation concludes that tapping into new market is
beneficial for SMEs as it can help them to generate higher
revenues and capture large market share. There are various key
drivers such as technological advancement and international
trade that are influencing SMEs in Scotland. Different trading
blocs and agreements which could be focused by SMEs are
preferential trade area, free trade area, customs union, common
market, multilateral and bilateral agreements.

References
Catchpole, A., 2019. Tapping into the UK market.
Steiner, A. and Fan, S., 2019. Rural revitalization: Tapping
into new opportunities. IFPRI book chapters, pp.16-25.
Jasovska, P., 2019. Tapping into foreign markets:
internationalisation of the craft beer industry from small
open economies (Doctoral dissertation).
Rana, M., 2018. Tapping new opportunities in personal
mobility market: opportunities & challenges for SUZUKI
Bangladesh.

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