Tapping into New and International Markets

Tapping into New and
International Markets

Table of Contents
INTRODUCTION ..........................................................................................................................3
PART 1............................................................................................................................................3
LO1..................................................................................................................................................3
Explanation of Global Business Environment............................................................................3
Evidence based Analysis of Global Business Environment.......................................................5
Threats and opportunities that are faced by Allied Irish Bank in an increasingly competitive
global environment.....................................................................................................................6
Critical analysis of implication of threats and opportunity.........................................................7
LO2..................................................................................................................................................8
Determination of international trading blocks and agreements..................................................8
Evaluation of advantages of international trading blocks and agreements and their
implications for Allied Irish Bank.............................................................................................9
Tariff and non tariff barriers that exists in international trading environment .........................9
CONCLUSION..............................................................................................................................18
PART 2..........................................................................................................................................19
Covered in brochure..................................................................................................................19
REFERENCES .............................................................................................................................22

INTRODUCTION
With the enhancement in the integration and connection between various global
economies and nation the organisation also started for looking better growth opportunity and
ways of expansion in the global environment. The rise and improvement in the technology
together with the reduction and liberalisation in trade barriers and policy it become more easier
and convenient for companies to expand globally and operate at international market. This
assignment is based on tapping of a new and international market the chosen organization is
Allied Irish Bank which is a commercial bank situated in UK and providing various financial
services to its customers. This report includes an analysis of opportunities and threats faced by an
organization in globalized environment together with advantages of trading blocks for firm.
Beside this, the importing and exporting process along with their practicality is also included.
Further, this report consists an evaluation of ways in which SMEs can tap into international
markets.
PART 1
LO1
Explanation of Global Business Environment
It is very important for an organisation to appropriately and effectively be aware of the
global business environment in which it operates, as it represents different facets and aspects of
the surroundings of the firm that could be a major influence on the sustainability and growth of
the company.
Allied Irish Bank is a SME organisations within the United Kingdom, which provides its
financial services to its customers within the nation. Quite recently, the company is expanding
itself in the trade bloc market of Europe, specifically in Malta, which the firm believes could
prominently be used for expanding the business operations effectively. In addition to this, there
are several aspects which are related to the global business environment, which are described
below in context of Allied Iritsh Bank: Political Factors: Furthermore, countries like Europe has a favourable environment for
the company to expand their business operations within their trade bloc market as they
present the organisation with ample opportunities due to being politically stable and
progressing nation. For example, the legislation and political position of the organisation

is favourable in terms of investments and imports, which is an advantage for the company
to ensure better and more structured access to finance within the region. In addition to
this, EU is very much in favour of Foreign Direct Investment, meaning that the firm
could do business within that country quite easily, due to having favourable
governmental support. Economical Factors: These factors are the ones which covers a country's economic
performance which directly influences the trade bloc market of that region, upon where
the SME is planning to expand. UK currently is struggling due to the events of Brexit,
which has led to decrease in the value of pound and enhancement in inflation. Moreover,
this has also led to limited cash flow within the market, which would not be beneficial for
the company to acquire funding for its expansion. However, this presents the company
with an opportunity as the market of Europe is quite sustained and has progressive
economy which would provide the firm with better accessibility in terms of funding. Social Factors: These factors undertake all the trends, customer preferences and social
concerns within a country which has a direct influence on the SME in expanding its
market in the region. In context of Allied Irish Bank, the current trend within the Banking
sector has individuals wanting more technologically advanced and reliable financial
services, along with ease in payment options. This could be a major opportunity for the
bank in relation to provide the same to its customers for better attraction and retention. Technological Factors: For instance, due to enhanced access in digitalisation and
transportation, Europe has acquired top technologies from all parts of the world and is
using the same in relation to the organisation. One such technology is Artificial
Intelligence which allows the firms like Allied Irish Bank to secure financial transactions
and hence, is an opportunity for the company. However, the city is an offshore zone,
meaning that the financial designation of the country has been structured in a way to
attract international residents too. Hence, in this regard the AI would help the firm in
providing security to the international clients that would be a opportunity for the
company. Legal Factors: These factors are the ones which cover the legislations and rules and
regulations of a country. In context of Allied Irish Bank, due to Brexit, there are several
drastic changes within the legislation surrounding the banking sector of the Europe if an

organisation belongs to the UK, which are very much difficult to map and anticipate, and
could be a major threat for the organisation in context of expanding its business within
the European Union.
 Environmental Factors: These are the factors that are related to the environmental
sustainability within the trade bloc market. Within Europe, the government and the
industries are very much inclined towards ensuring sustainability of the environment and
has several legislation and policies to govern the same. Hence, this presents the company
with an opportunity associated with adhering to these policies and ensuring a better and
sustainable practice which would allow the firm to gather support of communities and
government. Furthermore, the SMEs that want to expand their markets within the region
are very much required to adhere to these aspects in order to succeed in the trade bloc
market of the region, which is an opportunity for Allied Irish Bank.
Evidence based Analysis of Global Business Environment
Hence, analysed under are certain of these drivers with respect to Allied Irish Bank:
 Market Share Growth:
One of the key drivers of globalisation is related to growth within the market share which
is possible as more market is captured when a company moves internationally. Furthermore, with
new customers and products, firms could make this growth very certain.
 Competition:
Another key global driver for a firm like Allied Irish Bank is competition. Allied Irish
Bank has several local as well as global competitors which are a constant threat to the
organisation. Hence, in this relation, the firm must expand its business globally within countries
like Europe to ensure effective growth in sustainability and competitive advantage.
 Technology:
This is another factor which drives companies to expand globally. The reason for this is
because with technology like automation and ICT, information could be facilitated globally in a
second, which provides advantage to the company in enhancing their market space effectively.
How trends of globalisation impacting SME growth
There are several ways through which globalisation is impacting the SME growth within
the region. Some of these ways are explored below:

 Enhanced Access: One of the major impacts which SME's are facing by the globalisation
is enhanced access within the global market. With new trends of transportation and
travelling, companies could set up their units in different locations with easy access to
their resources, suppliers and other aspects like technology. This has a positive impact
within these organisations as it could help them in enhancing the scope of their expansion
within countries within EU.
 Competition: Another aspect which have an impact on the SME's. With rise in
globalisation, there is also a rise witnessed in trends within the competition. Each
organisation has multiple companies as their competitors who adopt different strategies to
sustain a better market position. The impact could be both positive and negative within
the companies and it influences their practices which must be to ensure high quality
products that are promoted and positioned in a better manner than their competitive firms.
Threats and opportunities that are faced by Allied Irish Bank in an increasingly competitive
global environment
Threats of increasingly competitive global environment.
The threats that are faced by Allied Irish Bank in an increasingly competitive global
environment are:
Stiff Competition- The biggest threat faced by Allied Irish Bank in global environment is
high lavel of competition form big multinational companies. At global level the big international
organisation make use of effect8ive research and development and are able to provide better
quality product at low prices which created a threat and pressure on Allied Irish Bank to produce
and deliver good quality product and services with cost effective methods to maintain their
consumer base and integrity in the market. In business market of Malta a stiff competition is also
seen with the rapid growth of economy which is creating a threat for Allied Irish Bank.
Migration of staff- The another threat faced by Allied Irish Bank in competitive global
environment is associated with the migration of staff as the globalisation has made movement of
employees quite easy from one nation to another that has lead to transfer of talented and skilled
staff in big multinational companies cresting threat of mass turnover in Allied Irish Bank. Beside
this, in the global business environment an issue of high operating cost is also faced by Allied