Tapping into New and International Market

This document provides insights into tapping into new and international markets. It covers topics such as global business environments, threats and opportunities for SMEs, advantages of international trading blocs, tariff and non-tariff barriers, and more. The document is based on the Barclays Company and includes relevant examples and analysis.

Tapping into new and
international market

Table of Contents
Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1) Explain the global business environments in which small and entrepreneurial businesses
operate....................................................................................................................................1
P2) Analyse the threat and opportunity that face SMEs in an increasingly competitive global
environment............................................................................................................................2
TASK 2............................................................................................................................................4
P3) Determine and analyse the advantage of international trading blocs and agreement......4
P4) Explain the various tariff and non-tariff barriers that exist in the international trading
environment............................................................................................................................5
TASK 3............................................................................................................................................6
P5) Determine that advantage and disadvantage of importing and exporting and how to secure
a deal.......................................................................................................................................6
P6) Explain the differences between merchandiser and service import and exports.............7
TASK 4............................................................................................................................................8
P7) Evaluate the various methods in which SME can tap into international market.............8
P8) Compare and contrast the various ways SMEs can tap into international market, assessing
the pros and cons of each method...........................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
International market will defines the overseas trading and it is used to get tap into the new
and the international market and with that the business have work with the target to get achieve
higher sales and more profit. It is the concept that is more relative to the growth by inducing
more efforts in the export and import while covering the international regions. The major aim of
the report is to make better understanding of international surround that will have generate more
opportunity for the new business but with that there are some of the threat as well (Aliasghar,
2018). This report is based on the Barclays Company that will provide the financial services to
the people have having the headquartered in London, UK. This report includes the global
business environment to operate the small and the entrepreneurial businesses, threat and
opportunity that is faced by SME to enhance competitive global environment, advantage of
international blocks and agreement, various tariff and non tariff barriers, advantage and
disadvantage of importing and exporting, difference between merchandiser and export and
import services, various method to tap into international market with pros and cons.
TASK 1
P1) Explain the global business environments in which small and entrepreneurial businesses
operate.
Europe is a region of UK, that has been followed the different economic benefits and
having the better political stability as well. In addition to this there are some challenges as well
that is faced by the UK government and they have been worked to make more diverse changes
for the betterment of the country and with that they have always look forwards to get generate
more facilities. Thus the UK government must have always tried to make possible that the small
businesses will measure more growth and diverse more authority as well. It has been generate
and with that in return they have always develop more values and manage the flow of funds
under which they have been act as the backbone of economy of UK. The small business makes
huge contribution to get developed the better GDP and also provide more job facility as well
under which the employment will also get developed (Brace, 2018). UK has the sixth largest
economic generator in world and they will get in the lead to the contribution of the private sector.
UK is one of the most versatile and globalised country that is the epicentre in context of finance.
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The service sector of the UK will make the contribution of around 80% in the net GDP rate and
it includes the small medium enterprise.
The SMEs are the businesses that will operate all their functions at smaller scale and have
covered the limited regions and operate the basic operation at their only. In addition to this, the
small business of the UK have comprises of the less than 50 number of employee and have
generate the revenue of the less than 10 million pounds (Ivashchenko, 2019) The medium
enterprises have worked with the less than 250 number of the employee and have generated the
net revenue of less than 50 million pounds. These are the different companies or enterprises that
have performed their work on global environment and under that they have import different
products and the services to provide better services to the customer. Moreover, they have also
performed the export as well and in that they get export or provide their manufactured goods and
services to the other areas of the world. The entrepreneurial venture and the SMEs have made
huge support to the UK government as they have around 98% of the business that will get
covered by the SMEs. They have worked with the motive to provide 1 pound for the each 3
pound that will in totality that will get generated by these SMEs (UK’s global business
environment, 2011). The maximum of the export that is performed by the SME is all around the
borders of the Europe. The largest SMEs of UK will performed the export to the nearby location
of Europe as like Netherland, France, Spain and many others as well. They have performed this
because of the transportation cost will get reduces and after the impact of Brexit they have pay
the minimum cost and earn more profit.
The UK, SMEs have perform the trading as from the shared bordered countries as like
Africa, America and the Asia as well. It is the opportunity that will get developed and by this the
positive impact on the GDP will get affected and the new income of the UK will also get raised.
P2) Analyse the threat and opportunity that face SMEs in an increasingly competitive global
environment.
Global business environment and the influence of key global drivers
The global business environment has more activeness and that is more due to the
different external factors of an environment of the UK (Jancenelle, 2018). As per the recent
scenarios after the Brexit and thus the change in the different factors will get inserted and by this
UK government have made a lot of policies. The SMEs have got more freedom in aspect of the
UK governance and by which they have make their trading in other relative country in the
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Europe. It has developed as after the BREXIT and with that the SMEs and the entrepreneurial
venture have operated the function by making the interest and the exchange rate. There are some
of the key drivers that have made direct impact on the economic generation of the UK and these
are as labor force, investments and the productivity as well. The UK’s labor forced is quite
expensive and thus the SMEs will select the labor that are from the ASIAN countries by which
the labor cost will get decreased and more revenue will get developed within the business. There
are some of the other drivers as well as like the investment and the productivity and that has
more impact on the business by which the growth has been influenced (Khan, 2018).
Rationale for SMEs to expand their business internationally
The UK intends on the SME is as it helps to expands their venture on international level
by which the targeted market will get more developed and with support of the sales and the
revenue will also get more enhanced. There are some other rational as well and with that the
SMEs expand or enlarge their business even more on international level by which they get
cheaper labor and wider market as from the Africa and the Asian areas.
Threats and opportunities in competitive global environment
SMEs will performed their businesses with the small number of staff and have worked of limited
scale by which they must have face different challenges while managing the operation in the
international level. The biggest challenge is as like the lack of finance, resources, skilled and
talented labour, and accessibility of the market that has restrict the performance and with that the
productivity as well. There are some other issue as well as they have the lack of economy and
with the profit rate will get reduced and they only get profit on larger number of production. The
network area of the SME is also being more bounded and in adverse the market has huge
completion that induces more instability while given the competition to the larger firm
(Kuppuswamy, 2018).
In addition to this there are some of the different opportunities as well that will get
measured by the SME. As the UK government has developed different opportunity while
developing the strategy and policies of the easiness of the SME and thus they have operated their
business with paying the tax and also get discount on the loans.
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TASK 2
P3) Determine and analyse the advantage of international trading blocs and agreement.
The Trading blocs defines the different agreement of the inter government and that
includes the different limitation and the restriction that is more related to trade that is performed
in between the different countries. In this the government have resolved the different issue to
eliminate by which more participation will get more developed. The trading blocs and the
agreement includes the contract that is of between different nation by which the trade has been
performed with the businesses in order to make free trading and that will improvised the
economy of the country (Ram, 2019).
Trade blocs and the agreement includes different region by which the tax will not get paid
as the UK has the memorandum with the European Union makes more better trading with more
perfection. But as after the Brexit, the UK will make more agreements with the other nation to
enhance the better opportunities for their trading. As the trade bloc absorb CARIFORUM-UK
economic partnership agreement ad with this the SMEs of UK make their trade more easiness
as like Bahamas, Barbados and the other 11 countries as well.
SACUM-UK economic partnership agreement (EPA) has another agreement with this
UK has developed trade with the south areas of Africa as they have more development of the
ordinary mechanism and with this SMEs have made trade without tax and have more advanced
cost profit.
As after Brexit, UK is more responsible with the regulation of the World trade
organisation (WTO) that includes trade agreement with the other 163 members. It is more
beneficial trade bloc and with this have performs the fair trade prices (UK trade agreements,
2019).
Stimulation of global growth for SMEs
The agreement and the international blocs will facilitate more growth that is more
considerate by the SMEs and with that the free trade will get performed with the foreign nations
and in this they have pay less tax by which the expense will get reduced thus better expenditure
and growth will measured by SMEs (Ryan, 2019).
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P4) Explain the various tariff and non-tariff barriers that exist in the international trading
environment
The international trading environment will be the amalgamation of the different surround
that includes various trading as like national trade of the different businesses. It is the procedure
that will get restricted with the different challenges or barrier of tariff and non-tariff. The tariff
barrier have forced the appropriate revenue in relate to custom duties and the interest rates
(Sirisena, 2018). The non-tariff will have imposed with objective to bind the import and the
export of the particular type of product and the services.
The trade barrier of tariff will get restrict the limitation of the SME and the trade of the
export of product and services. These are the barrier that is relative to the charge of the tariff
while make the entry in specified areas. It will include the international trading will gave bound
the trade and with that the SME have to pay more taxes and high interest rates. It includes the
different barrier as like control of price, license and many others as well. The custom or the
taxation will be the different barrier that must get followed by the trading of the SMEs.
In addition to this the non-tariff trade will also get restrict the international trading and it
will not get imposed the revenue of the interest or the taxation. It includes some of the different
barrier as like procurement rules, product labelling requirements, subsides, quantity restrictions,
administrative procedures and many others as well.
As per the tariff and non tariff barriers will get influence the growth and the development
of the SMEs and the entrepreneurial ventures. In addition to this, there are some of the restriction
as well that is required to get maintain discipline in relation with the industrialisation. It is the
barrier that gets more earning and as from this trading the effective profit will get gained
(Steffen, 2018). The export and the import will get helps to country to restrict the import as from
the packaging, labelling and the unreasonable. It is the major reason of these barriers and in that
the stability will get maintain balance in the legislation and includes employment law, import
licensing, occupational health and safety, overvalued currency etc.
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TASK 3
P5) Determine that advantage and disadvantage of importing and exporting and how to secure a
deal.
The overseas of the trading is the process under which the export and the import of the
different products and services will take place. Thus there are some of the different advantages
and the disadvantages of the importing and the exporting that are as defined below as:
Importing is a process through which the products and the services will get transferred to the
foreign countries. It is the concept that is more supportive of the economy and with this manages
the trade balance by manufacturing different innovative and creative goods (Steiner, 2019).
There are some different advantages that are as defined below as:
 The goods will get procured with the less cost and could be sold further at higher prices
that raises the profit margin of the SMEs.
 The raw material and the labour cost of the SME are quite less and it helps to make better
production and as from this the manufacturing rate will get decreased.
 There are a lot of countries that will provide the better facility in the tax concession thus t
the SME develop the products with better quality and lower cost and with less taxation as
well.
 The UK government also support the SMEs and with that more companies will get
developed the business by measuring the import of the goods.
In addition to this there are some of the disadvantages as well of importing and that are as
defined below as:
 The SME must have pay the GST and the other tax as well while importing the business
that reduces the profit margin for the SMEs.
 When the SME have tended to import the products and the services from other countries
by which the employment will get increased as the local people didn’t get the job
opportunity.
Exporting is the process through which the SMEs and in that the they have sell their
products and the services to the foreign country in order to developed more profit and higher
revenue by which the economy will get more balanced (Tajeddini, 2020). There is some of the
different advantage that is as defined below as:
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 The SMEs has gain more advanced market in the global market and in this the products
and the services will get exported.
 The SMEs has also earned more profit by which the higher revenue will get developed as
the currency value will be higher.
There is some of the disadvantage of the exporting as well that is as defined below as:
 The SME and the other country must have face different financial risks that get affect the
economic factors that more generate more uncertainty.
 The SMEs have get more limitation of the licensing the documentation that restrict the
entering of the company in newer market.
 The SMEs have followed the different requirement of the government and with that the
maximum time and the higher cost will get induced.
P6) Explain the differences between merchandiser and service import and exports.
The export and import services of the merchandiser are more vital for the company that
has that much willing to get enter in new market. There is some difference as well of in between
the merchandiser and the export and import services that is as defined below as:
BASIS Merchandiser import and export Service import and export
Meaning It will refer to the export and the import of the
different tangible goods that could have sold and
acquired within the various countries (Tidd,
2018). For example, Barclays offer some diverse
product to their client as like gadgets that are for
the internet banking and outside of UK.
In linked with the merchandiser, the trading of
the different product is intangible. For example,
Barclays pay to the different company for to
import the services and in that the professional
of firm provide that services to some different
firm.
Scope It has quite narrow scope as the tangible product
didn’t get effectively dealt by the companies in
import and export.
As per the comparison it has quite more wider
scope as it includes different services
professional training, infrastructural
development, and technological installation etc
that will exchange of money.
Cost The cost of the merchandise that will incur in
trading and manufacturing is quite high as it
needs the efficient acquits ion of raw material,
investment in the development of trading norms.
It is more simple procedure as specific services
will be traded that reduces the operating cost as
it doesn’t include any process to develop the
product (Wang, 2019).
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TASK 4
P7) Evaluate the various methods in which SME can tap into international market
The business might be small, medium or the large but there are very few ventures that
can operate their function and operation in the international market in order to develop the share
market and by this the profit making will also get more increased. It could also be more
supportive to develop more revenue and the market value of the company. There are some of the
different method through which the SMEs will tap into the international market and that are as
defined below as:
Franchising: It is an agreement that is performed in between the two parties and in this
the franchiser allows the franchisee to get use its brand logo and the name in order to sell the
product and the services with their name. It is the method that will bind the parties in the contract
that must get followed and in this the quality of the company will get maintain and the brand
image and equity will get enhanced (Williamson, 2018).
Joint venture: In this method the company of different region will get agree and work all
together on some specified project and have more beneficial for all the parties. In this the
partnership will get developed for some period of time to expand the limited boundaries to
perform certain operation.
Licensing: It is the method that also involves the agreement in between the two parties
that allows the license to get access the patent and the trade secrets and get more royalty value.
There is no limitation to maintain the quality and image of the products and business.
P8) Compare and contrast the various ways SMEs can tap into international market, assessing
the pros and cons of each method.
The SMEs can tap in the international market by using the different methods as like licensing,
franchising and the joint venture and there are some pros and cons that are as defend below as:
Pros
Franchising Licensing Joint venture
It is more affordable method and
didn’t require any ample of funds
and have the moderate amount of
risk as well.
The SMEs could capture maximise
market share as they only have the
information about the local market
and the involvement of the risk is
The SMEs must get enjoyed the
integrated expertise as their
resources will also get added up and
the risk will also get shared in
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also be very less. between the linked companies in
equal manner.
Cons
Franchising Licensing Joint venture
There is the threat as well of get
reducing the image and the quality
of the brand and its product and
services if it is not get maintained by
the franchisee.
It will get developed the different
issues related to the non payment un
return of the royalty and result n
huge losses (Witz, 2018).
If the SMEs use this method the
business must have face more
rigidity and sometime the unequal
involvement also get developed that
reduces the risk as well.
CONCLUSION
It has been concluded from the above report that the SME and the entrepreneurial venture
has been generate more benefits within the government and in that they have developed a lot of
job opportunities by which higher revenue will get generated. There are some of the different
challenges that are faced by the SME in terms of competition and financial stability. The SME
have followed different rules and regulation to maintain smooth flow of funds and sources. The
trade agreements and the blocs will get helped the SME to get benefit of tax policies and interest
rate. The UK will make different agreement to provide more facility to SME and reduces the
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different restriction as well. At the end, there are some of the different export and import
methods to tap in the international market to gain more dependency.
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REFERENCES
Books and Journals
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Ram, J. and Liu, S., 2019. Social Commerce and Innovative Business Engagements: An
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Sirisena, A.B. and Shneor, R., 2018. Understanding international location decisions of poverty
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Steffen, B. and et. al., 2018. Opening new markets for clean energy: The role of project
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Steiner, A. and Fan, S., 2019. Rural revitalization: Tapping into new opportunities. IFPRI book
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Tajeddini, K. and Ratten, V., 2020. The moderating effect of brand orientation on inter-firm
market orientation and performance. Journal of Strategic Marketing, 28(3), pp.194-224.
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Online
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