Tapping Into New And 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