Tapping Into New And International Markets

This document discusses the global business environment, threats faced by SMEs in the competitive global market, benefits of international trading blocs, and various types of tariff and non-tariff barriers in an international trading environment. It also explores the advantages and disadvantages of import and export and different methods for small and medium-sized enterprises to tap into international markets.

Tapping Into
New And
International
Markets

Table of Contents
INTRODUCTION.................................................................................................................................3
TASK 1.................................................................................................................................................3
P1. Analyse the global business environment through which small and entrepreneurial business
operates..............................................................................................................................................3
P2. Analyse threats of SME which are faced in competitive global market and are reduced by
opportunities......................................................................................................................................5
TASK 2.................................................................................................................................................6
P3. Demonstrates the benefits of international trading blocs and agreements....................................6
P4. Describe the various types of tariff and non-tariff barriers within an international trading
environment.......................................................................................................................................7
TASK 3.................................................................................................................................................9
P5. Explain the advantage and disadvantage of import and export....................................................9
P6. Differentiate between merchandise and service export and import..............................................9
TASK 4...............................................................................................................................................10
P7. Evaluate different methods in which small and medium enterprise tap into international markets
.........................................................................................................................................................10
P8. Analyse the pro and cons for various ways of SME to tap in global business environment.......10
CONCLUSION...................................................................................................................................11
REFERENCES....................................................................................................................................13

INTRODUCTION
New market refers as the marketplace where large number of companies enters at significant
place to promote and position their specialised brand among its potential customers. International
market is a geographical region where a company conducts business outside the territorial boundaries
of domestic country. Small and medium-sized enterprise is described as the business which plays a
major role mostly in developing economies of a nation (Acey, 2019). The organisation selected for
this project is Hilton Hotel as being part of hospitality industry that manages and franchises a broad
portfolio of hotels and resorts. It expands business in Brazil for targeting various travel and tourism
companies for influencing their guests to stay in their hotel for increasing sale and profits by
developing good customer relationship management. This project identifies global business
environment through which small and entrepreneurial business operates and analyse their
opportunities and threats in competitive market. It further demonstrates the benefits of trading blocs
and agreements and various types of tariff and non-tariff barriers within an international market. This
project explains the advantages and disadvantages of import and export with the comparison between
merchandise and service. Additionally, it evaluates pros and cons of different methods through which
small and medium-sized business tap into international markets.
TASK 1
P1. Analyse the global business environment through which small and entrepreneurial business
operates
Global business environment:- This refers as the environment which consists of sovereign
countries that gather within an market for selling their produced finished goods and services to
potential customers. It creates opportunity for growth and stability of business to compete with their
rivalries through their competitive strategies by supplying qualitative products to customers. This
further result in maximisation of revenue, profitability ratio and market share to increase their strength
and opportunities to control weakness and threats. Example:- Internal factors include company
products, employees and marketing strategy whereas external factor involves competitors, customers
and economic conditions.
Hilton Hotel:- This organisation is an American multinational hospitality company that
manages and franchises a broad portfolio of hotels and resorts. It was established by Conrad Hilton in
May, 1919 and headquartered at McLean, Virginia, United States (Brand, Ferrante and Hubert, 2019).
This is expanding business in Brazil for encouraging more customers to stay in their hotel for
surviving luxurious and comfortable livelihood by relaxing with food and beverage services,
housekeeping, etc. It is a privately held company of hospitality industry with the ISIN number of

US43300A1043. The Chairman of Hilton Hotel is Jonathan D. Gray and its Chief Executive Officer is
Christopher J. Nassetta with 169,000 numbers of employees at 2018. The Hilton Hotel provide
product and services for leisure travellers with luxurious and comfort lifestyle to survive. Its main
purpose is to maximise sales by offering extra services such as bed, breakfast, available source for
family fun packages and conference facilities.
PESTLE Analysis:- This framework provides detailed information about the external macro-
factors of business environment which favourably or unfavourably affects stability of an organisation
to sustain in perfect competition market (Clements, 2019). Managers of Hilton Hotel implement this
PESTLE analysis to minimise the controllable and uncontrollable risk of hospitality industry by
maximising their strength and opportunities.
 Political:- The Brazil is most powerful country in South America. It is a member of several
international organizations and unions such as International Monetary Fund, United Nations,
World Bank, etc. Managers of Hilton Hotel are favourably affected as a middle power that
has moderate influence in international affairs.
 Economical:- The Brazil is ninth largest economy in the world by nominal Gross Domestic
Product. Managers of Hilton hotel are adversely affected as the Brazil have 11.8% of
unemployment rate in 2018. It is managed by creating job opportunities to the workers
available in country that have ability to perform their task with high skills and may lead
company to sustain in the future.
 Social:- This factor includes education, housing, population growth, health care, etc. The
Brazil is diverse country in the whole world which has total population of approximately 208
million. Managers of Hilton Hotel are favourably affected as life expectancy rate of
population for men in Brazil is 72 years and 79 years of women which leads in stable demand
of consumers.
 Technological:- The Brazil is largest ICT market in Latin America and prefer using mobile
phone for communicating with their family and friends using internet. Managers of Hilton
Hotel are positively impacted with technological factor of PESTLE analysis as the
government of Brazil heavily invest in innovation and digital transformation projects.
 Legal:- This element refers as the ability of an organisation to follow legal legislations
implemented by government of Brazil. It is mandatory for every organisation to follow those
rules and regulations imposed by political leaders while competing with rivalries through
their competitive strategies. Managers of Hilton Hotel are unfavourably affected as they are
bound to reduce the possibility of corruption and have to provide strong labour unions as
some actions must be in favour of employees (Dahlke, 2019).
 Environmental:- The Brazil is one of the most beautiful country in world as the Amazon
River flows from there. This attracts large tourism sector in rapid growth which contributes in

economy for several regions of country. Managers of Hilton Hotel are positively impacted as
they are facilitated with large number of travel and tourists are available in order to attract
them with their specialised services which result in increasing sales and high profit-margin.
P2. Analyse threats of SME which are faced in competitive global market and are reduced by
opportunities
Small and medium-sized enterprise:- This refers as the ability of producers to develop
specialised finished goods and services with total quality management for meeting the requirements of
customers. It is essential for an organisation to analyse the change in taste and preference of their
buyers and to supply qualitative and differentiated products through various supply chain
management. This includes direct and indirect channel of distribution to supply goods for removing
the hindrance of place and increasing brand awareness among rural and urban areas to increase sales
and profits (Fleischmann and Fleischmann, 2019). The small enterprise consist 11 to 50 numbers of
employees with fixed assets from US $ 50,000 up to US $ 250,000. The medium enterprises include
51 to 200 employees and have fixed assets from US $ 250,000 to US $ 500,000.
Porter’s Diamond Model:- This theory is designed by Michael Porter in 1985. It is essential
for an organisation to understand the procedure of creating high quality products for selling them at
high prices in market. This is mandatory for business to follow all the rules and regulations imposed
by government to sustain in perfect competition market. Managers of Hilton Hotel are implementing
this theory as to emphasize managers for developing growth in productivity as the focus on national
strategies. It is further categorised into various sectors which are mentioned below as:-
 Firm strategy, structure and rivalry:- This describes that the organisation must implement
strategic decision-making procedure to develop an innovative idea for manufacturing
differentiated products and services. It is the ability of producer to build new product with
specialised features that creates opportunity for growth and stability of business to remain
stable in perfect competition market. Managers of Hilton Hotel can use this strategy as to
analyse the strategy is capable in competing with domestic rivalries first and then apply
within international market.
 Demand Conditions:- This refers as the producers must sell their specialised products in
domestic market for analysing it's demand in home country. It is beneficial for company as to
examine the strategy imposed have the capability to attract large number of customers.
Managers of Hilton Hotel can use this as they have examine and evaluated the demand of
goods and services in domestic market which enlarges buyers and leads to increase sale and
profits (Gerschewski and et. al., 2020).
 Factor Conditions:- It is the strategy which states that an organisation must always consider
the outcome of various nations which are beneficial for their competitors. This also

emphasize producers to identify the competitive strategy through which business can analyse
its national factors as various tools and techniques to compete with rivalries. Managers of
Hilton Hotel can use this strategy as to analyse their scarce resources that must be efficiently
used in order to increase competitive strategies.
 Related and Supporting Industries:- The overall growth and success of company is build
mostly by developing good relations with interconnection of its substitutes. It leads company
to strategise their skills with quality and time management in order to remain stable at global
market. Managers of Hilton Hotel can use this as they are able to achieve success efficiently
by fulfilling the requirements of their end-users through providing them good atmosphere to
survive (Hassan and Sengupta, 2019).
The opportunities and threats faced in competitive global market as follows:-
Opportunities (O) Threats (T)
 The managers of Hilton Hotel are
beneficial in formation of strategic
alliance as to compete with rivalries
through their high market share.
 It is the ability of managers to expand
their business in order to target large
number of customers in Brazil for
increasing sales and profits.
 The threat of terrorism and political
instability leads to change in rules and
regulations which result in delay for
accomplishment of success.
 The adverse change in macro-economic
climate such as tsunami, cyclone, etc.,
which unfavourably affect the stability of
business.
TASK 2
P3. Demonstrates the benefits of international trading blocs and agreements
Marketing Strategy:- The marketing strategy is described as the strategic marketing plan
which specifies the vision, mission and objectives of an organisation to achieve its success efficiently
in accordance with actual performance of business. It is the set of controllable risk, tactics, and
marketing tools that a company uses to produce its desired product for meeting the requirements of
customers. Managers of Hilton Hotel implement this as to minimise their risks by increasing strength
and opportunities (Hills and et. al., 2019).
The benefits and limitations of international trading blocs and agreements are explained
with reference to managers of Hilton Hotel are shown as under:-
Marketing Strategy Benefits Limitations
Gym and Spa services The managers of Hilton Hotel
are beneficial as they are
The managers of Hilton Hotel
are not beneficial as they don’t

implementing gym and spa
services for their guest to relax
and enjoy their life.
enlarge their customers to stay
in hotel because guests have a
perception of high expense over
it which result in refusal of sale.
Hygiene Factors The managers of Hilton Hotel
are advantageous as they
provide hygiene food to their
customers which attract them as
nowadays buyers are more
health conscious (Lee and et.
al., 2019).
The managers of Hilton Hotel
are disadvantageous in
providing hygiene factors as
mostly customers includes
children which lacks in
satisfying their needs for junk
foods.
Pricing strategy The managers of Hilton Hotel
are profitable as they supply
qualitative services in their
resorts and hotel which enlarges
customers and they are ready to
pay high prices for fulfilling
their desires.
The managers of Hilton Hotel
are unprofitable as the guest
have to bear high charges which
provide them lack in high
satisfactions and do not
encourage them to stay
repeatedly in hotel.
Staffs The managers of Hilton Hotel
are helpful as they manage their
staff equally with
decentralisation through
division of work which reduces
the possibility of conflicts,
partiality, etc.
The managers of Hilton Hotel
are unhelpful as they don’t
manage their staff or employee
through building relation among
each other which lacks in co-
ordination and result in high
conflicts and jealousy.
P4. Describe the various types of tariff and non-tariff barriers within an international trading
environment
International Markets:- The international marketing is application of principles which
satisfy the varied needs and wants of different people residing across the national boundaries . It is
essential for organisation to trade in international market with large number of global business
environment as to develop foreign direct investment (Maingot, 2019). Managers of Hilton Hotel focus
on this as to enlarge their customers with the motive to increase sales and profits.
Trading Blocs:- This refers a group of intergovernmental agreement of different countries
that manage and promote trade activities. Managers of Hilton Hotel implement this as to trade with
liberalisation and favourably in comparison to non-members.

 Economic Union:- It is composed of a common market with a custom union by various
participant countries with their same or common policies for product regulation, freedom of
movement of finished goods and services (Ranger, 2019).
 Full Integration:- This refers as the number of Gauss points required to integrate polynomial
terms in an element’s stiffness matrix exactly when the elements has a regular shape.
Trading Agreements:- It refers as the unilateral, bilateral and multilateral trade agreements
which require the lowest level of commitment to reduce trade barriers. Mangers of Hilton Hotel
implement this for encouraging the free flow of gods and services between various members of
companies of different countries.
 Unilateral:- It is the trade through which only one country enjoys fewer restriction while
trading with another country such as Brazil.
 Bilateral:- This trade develops opportunity for two countries to trade with their finished
goods and services for maximising sale such as United States and Brazil.
 Multilateral:- This trade refers as interaction between three or more countries through legal
agreement at a specified date.
Tariff Barriers:- The tariff is a custom, duty or tax imposed on products that move across
borders which are inter changeable. Managers of Hilton Hotel implement this as the most common
instrument used for controlling imports and exports.
 Export:- This is the duty imposed on goods by exporting country on its exports such as
minerals and agricultural products are taxed.
 Import:- It is the custom duty imposed by importing nation through implementing tax on
finished goods and services as being levied to raise revenue and protect domestic industries.
 Transit:- This is levied on commodities that originate in one country across its boundary
which results in increasing cost of products and reduction in amount of commodities traded
(Symeou and Merchant, 2019).
Non-Tariff Barriers:- It is described as the trade which restrict the involvement of tax with
implications of government regulation and policies that affect in overseas of trade. Managers of
Hilton Hotel implement this in the form of quotas, subsidies, embargo, etc.
 Quotas:- This is a numerical limit on the quantity of goods that are exported and imported
from one country to another during a specific period of time.
 Subsidies:- It is the payment made by the government to domestic producer so that that they
can compete against foreign goods. This can be either through cash, grant, subsidized input
prices, tax holiday, etc.

TASK 3
P5. Explain the advantage and disadvantage of import and export
The advantage and disadvantage of import and export are described with reference to
managers of Hilton Hotel as follows:-
Export:- This refers as the managers of Hilton Hotel trade from one country to another by
selling their finished goods and services with the motive to maximise sales and profits. Managers of
Hilton Hotel focus on exporting their goods through secure deal as to increase brand awareness.
 Advantage:- The managers of Hilton Hotel are advantageous as they are able to sale their
goods and services to various countries which result in increasing economic Gross Domestic
Product (Vézina, Selma and Malo, 2019).
 Disadvantage:- Managers of Hilton Hotel are disadvantageous as they are bound to sale at
less price which result in less profit- margin.
Import:- It is described as the procedure of receiving specialised raw materials, products and
services from another country as being the scarcity in domestic market. Managers of Hilton Hotel
focus on this importing for a secure deal as to reduce their cost of manufacturing process and to
purchase it in least-cost.
 Advantage:- Managers of Hilton Hotel are beneficial as they import goods at least-cost
which result in producing products and services at low prices.
 Disadvantage:- The managers of Hilton Hotel are not beneficial as this reduce the economic
growth of country which further reduce the stability of organisation in global market.
P6. Differentiate between merchandise and service export and import
The comparison between export and import of merchandise and services are mentioned below as:-
Features Merchandise Services
Definition Export:- It is the process of
selling tangible goods from one
nation to another for increasing
sale.
Import:- This refers as to
purchase tangible or visible
goods from another country to
domestic nation.
Export:-This refers as the
procedure of sending intangible
services to another country by
promoting and positioning
brand awareness.
Import:- It is the procedure
through which domestic country
purchase intangible services
from another country as being

scarcity in one nation.
Focus The managers of Hilton Hotel
focus on the tax imposed by
another country while exporting
the goods and services in order
to identify the tax payable or
receivable.
The managers of Hilton Hotel
focus on the tax charged by one
nation to another while
importing goods and services
from them.
TASK 4
P7. Evaluate different methods in which small and medium enterprise tap into international markets
There are various methods of small and medium enterprises tap into international markets that
are as follows:-
 Franchise:- This refers as the marketing strategy adopted by managers of Hilton Hotel for
their business expansion in Brazil by franchising license to other entrepreneur for using
business model, brand name and logo.
 Direct export:- It is the direct method of exporting goods and services from manufacturers to
end-users by developing customer relationship management.
 Indirect export:- This is the procedure of indirect exporting goods and services through
various supply chain management from various intermediaries (Zhao and et. al., 2019).
 License:- The official permission which is allowed by one country to another country for
manufacturing goods and services through specific details of product and payment.
P8. Analyse the pro and cons for various ways of SME to tap in global business environment
The pros and cons for various ways of Small and Medium-sized enterprise to tap into global
business environment are shown as under:-
 Franchise:-
Pros Cons
 It encourages employees by
providing them authority and powers
to take decision related with
accomplishment of success.
 It is the very difficult task to
purchase well-known company
franchise as it’s quite expensive.
 Direct export:-
Pros Cons

 The managers of Hilton Hotel are
beneficial as they are capable in
developing high profits by building
customer relationship management
that leads to analyse the change in
taste and preference of buyers.
 The managers of Hilton Hotel can
achieve success only when they are
capable to complete their business
activities within proper quality and
time management procedure.
 Indirect export:-
Pros Cons
 This challenges the circumstances of
small financial risks which are easily
controllable through intrinsic
strength of competitive strategies.
 This result in delay for
accomplishment of success by
ascertaining low profit-margin which
requires long duration to achieve
goals and objectives.
 License:-
Pros Cons
 It is advantageous for managers of
Hilton Hotel that the licensee will be
responsible for the cost of
manufacturing goods and services.
 The managers of Hilton Hotel are
disadvantageous as the supply of
poor quality will adversely destroy
the brand image and reputation and
breaks the trust and faith of potential
customers which further lacks in their
loyalty and support.
CONCLUSION
From the above discussion it have been concluded that new and international market are most
important aspect for an organisation to explore themselves by competing with large number of
companies through their competitive strategies. The small and medium-sized enterprises maintain
revenues, assets and number of employees below a certain threshold. The SME is used by
international organisations such as the World Bank, the European Union, the World Trade
Organisations and the United Nations. This project identifies global business environment through
which small and entrepreneurial business operates for brand diversification and enlarging customers
with the analysis of their opportunities and threats in competitive market. It further demonstrates the
benefits of trading blocs and agreements and various types of tariff and non-tariff barriers within an
international market. This project explains the advantages and disadvantages of import and export

with the comparison between merchandise and service. Apartly, it evaluates pros and cons of different
methods through which small and medium-sized business tap into international markets that are
franchise, direct and indirect export, license, etc.

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