Tapping into New and International Markets

This presentation explores the rationale for SMEs to expand their business internationally, the advantages and barriers of international opportunities, and the role of trading blocs and agreements in generating global growth. It also discusses the global environment analysis and key drivers for SMEs. The presentation concludes with the importance of understanding the market and the benefits of partnerships.

Tapping into
New and
International
Markets

Table of Content
 Introduction
 Global environment analysis where SMEs operate.
 Global business environment analysis
 Key global drivers
 Rationale for SMEs to expand their business internationally.
 Advantages of international opportunities and overcome their barriers for global growth.
 Trading blocs and agreements
 Tariff barriers
 Non-Tarrif Barrier
 International trading blocs and agreements generate global growth for SMEs.
 Conclusion

Introduction
Global environment is explained as those factors which are
uncontrollable in nature but create huge influence of business day to
day working. Barclays is expanding the business in UK because this
nation is financially stable in nature as well as are technologically
advanced nation as to compare to other country. The government of
UK is encouraging new and innovative business to grow in their
nation. SMEs is expanding their business globally in order to
survive and sustain in the competitive world.

Global environment analysis where SMEs
operate.
The global environment in which small and entrepreneurial business operates are discussed as
under:
Political factor: UK is politically stable so Barclays can easily expand their business in this
nation. It is technologically advanced nation which will help SMEs to grow and develop easily.
Economical factor: SMEs will be beneficial by expanding the business in UK as the
education rate of this nation is high. The labour are highly skilled which will help the business
to attain their set goals and objectives in the set time span.

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Social factor: SMEs is investment bank and financial services company. As
they are expanding the business in UK firm need to understand their social
factors . By this best services can be offered to the customers.
Technological factor: UK is well-known for using modern tools and
techniques. By expanding the business in this nation with the help of
modern tools SMEs will be able to create tough benchmark for others.

Global business environment analysis
By deeply studying political, social, economical and technological factor
management is able to frame strong tactics to over the issues emerged from
this factors. By analysing all this factors business is able to capture huge
market ratio easily. Along, with this huge customer base can be raised for
the business in the coming years which is a positive mark for the business.
SMEs will be able to gain competitive advantages against rivalry by
measuring all this factors deeply.

Key global drivers
International investments: SMEs is influenced by global drivers in UK because huge
investment is required to expand the business in the international market. They are small in
size and are not financially stable in nature due to which SMEs is more likely to be affected
by global drivers.
Technological advancement: Huge finance is needed to implement advance technology in
the working premises. SMEs is greatly affected by global drivers as they are small in size
and are does not have enough skilled employees with them in order to cope up with rivalry
in the international market.

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International trade: International trading is done when the product and
services are innovative in nature and are able to compete in the market.
SMEs does not have enough resources to come up with innovative idea
every now and then. This is the reason the global drivers most influence
SMEs business day to day operating activities.

Rationale for SMEs to expand their
business internationally.
Generating more revenue: By expanding SMEs in the international market
they will be able to maximize huge revenue by which further growth of
business can be done easily. With the phase of time this business will turn
out to be financially strong.
Diversifying: The purpose of SMEs is to expand business in the
international market is to diversify their market and product segment. By
this customer base can be raised gradually in the market which is a positive
mark for the business.

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Recruiting new talent: As business is expanded in the international market
SMEs is able to hire more talented and capable staff members in their
organization in order to full-fill the emerging needs of the customers. By
this brand recognition can be done slowly in the eyes of the customers.
Due to which more loyal customers can be build with the phase of time
towards the product and company.

Advantages of international
opportunities and overcome their
barriers for global growth.
Planning an international expansion: SMEs management need to plan
weather the international expansion will aid with their long term
scalability.
Ways to overcome barriers:
Experts should be hired in order to understand weather the expansion of
SMEs business in the international market will be successful or not.
Both internal and external scanning of environment should be done in order
to understand how resources can be assembled by SMEs.

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Understanding the market: To sustain in the international market it is essential
to better understand the market SMEs is planning to enter.
Ways to overcome barriers:
Before entering the UK market SMEs need to scan the market, type of
customers, their taste, disposable income and so on. By doing so firm will
be able to design the product and services accordingly and can survive for
longer time duration.

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Look to partnership: SMEs by building partnership with international businesses is the
best way to introduce goods and services to foreign customers.
Ways to overcome barriers:
Proper contract should be signed by both the parties regarding the products and
services sale. Along with this profit and loss ratio should be mentioned in the
agreement in order to avoid conflict in the up-coming years.
Before conducting partnership SMEs need to understand their terms and conditions
earlier so as to avoid mis-understanding and for how long will the contract is valid.

Trading blocs and agreements
Advantages of Trading blocs:
Through this competition raises and prices of the products and services decline in UK.
The goods and services tend to be more cheaper in prices as foreign nation products
are more widely available in the open market place of UK.
Trading blocs enables free trade between geographically close nations including UK.
The another advantages of trading blocs is that it raises economies of scale of UK to a
large extent.

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Advantages of Trading agreement:
Raises trade among two or more nations due to which economy of the nation
raises to a large extent.
It increased economic growth of UK and make it financially stable.
Trading agreements build more dynamic business climate in United Kingdom.
This uplift foreign direct investments in UK.
With the help of trading agreement there is more technology transfer in UK.

Tariff barriers
Quotes: Limit placed on the number of imports.
Subsidies: The subsidies render from government side to the local company
helps them to gain competitive advantages in the open market place.
Embargo: Total restriction on imports from particular nation. Example US
embargo with Cuba.
Voluntary export restraint (VER): This same as Quotes that is used by
nations in order to agree to limit the number of imports. Example: US used it
for importing of Japanese cars.

Non-Tarrif Barrier
Protecting Jobs: By imposing non-tariff barriers government is trying
to safeguard domestic employment to a large extent. Due to foreign
competition the domestic employment is influenced because home
nation companies start to import services from foreign in order to
cope with the competition prevailing in the global market.
Retaliation: This assist nations to permit for free flow of trade
among them. Governing bodies intervenes in the trade policies in
order to act as bargaining tool.
National security: Nation impose non-tariff barriers in order to
safeguard the the security of the country.

International trading blocs and
agreements generate global growth
for SMEs.
Common Market: It the first step towards economic integration. In
order generate growth for SMEs in the common market there should
be significant level of harmonisation of micro- economic policies.
Free Trade area: This encourages growth for SMEs as through free
trade when two or more countries in a region agree to reduce
barriers to trade on all the products coming from other members.

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Preferential Trade area: This is a type of trading blocs which stimulate
and generate global growth for SMEs when nation within
geographical region agree to abolish tariff barriers on chosen goods
imported from other nation.
Trading agreement stimulate and generate growth for SMEs as they
safeguard domestic employment at a tremendous scale. Due to
foreign competition the domestic employment is influenced because
SMEs start to import services from foreign in order to cope with the
competition prevailing in the global market.

CONCLUSION
From the above it can be concluded that SMEs need to expand their
business in the international market so that they can meet the
emerging needs of the customers easily. Those factors which affect
business operation activity are studied in order to make
improvements in the business functioning so as to attain productive
results as compare to rivalry. PEST is examined in order to better
understand the it's affect on small and entrepreneurial bushinesses.
Trading blocs and agreement generating global growth for SMEs is
measured so that tactics can be framed in order to select the most
suitable for business flourishment.

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