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Tapping into New and International Markets

   

Added on  2023-01-13

21 Pages3341 Words81 Views
Tapping into New and
International Markets

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................2
Introduction to the chosen country and region and explanation of global environment.............2
Analysis of global business environment and influence of key global drivers............................3
......................................................................................................................................................7
Rational for SMEs to expand their business internationally........................................................8
......................................................................................................................................................9
Critical evaluation of the way in which SMEs can take advantage of international
opportunities and overcome barriers for global growth...............................................................9
Explanation of trading blocs and agreements and examination the advantage of specific
trading agreements.....................................................................................................................10
Explanation of various tariff and non tariff barriers that exist in the international trading
environment...............................................................................................................................12
Evaluation of international trading blocs and agreements stimulate and generate growth for
SMEs..........................................................................................................................................14
PART 2..........................................................................................................................................16
Covered in Brochure..................................................................................................................16
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19

INTRODUCTION
Tapping into a new and international markets can be defined as a procedure which is
focused by business entities to expand their business and generate higher revenues. Main
objective of it is to attain long term business goals such as improved performance and
profitability (Catchpole, 2019). Business Advisor of Barclays which is one of the biggest banks
of UK is asked to prepare content for a webpage on Scotland of United Kingdom Region. The
SME which is selected for this report is Red and Blue restaurant which will expand its business
in Scotland it is currently operating business in Liverpool. Present discussion covers various
topics such as analysis of opportunities and threats for firms exposed to an increasingly
globalised environment. Apart from this, illustration of advantages of trading blocs for firms are
also covered in this project.
PART 1
Introduction to the chosen country and region and explanation of global environment
The chosen country and region are Scotland, United Kingdom. Red and Blue is currently
established in Liverpool which will expand its business in Scotland to attain growth and
development. This nation is a part of UK and covers the northern third of the island of Britain. Its
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south and west part is surrounded by Atlantic Ocean and the north-east is surrounded by North
Sea. It is divided in 32 local authorities which are also called council areas. The area with highest
population in the country is Glasgow City and the largest area is Highland. The GDP of the
nation for year 2018 was around 170 billion pounds which is a big contribution in the overall
GDP of United Kingdom. There are various SMEs which are operating business in this country.
Environmental factors leave impact upon operations of the entities in Scotland because the
biggest challenge which is faced by them is climate change. It directly impacts water level,
disease, crops etc. Therefore it is vital for all the SMEs such as Red and Blue to keep detailed
information of the same. Governmental obligations in this nation are also very strict therefore all
the established and the SMEs that are planning to expand its business here are required to make
sure that they have detailed information of such environmental factors. Brexit is one of the recent
activity which has left impacts upon political and economic situation of the country (Jasovska,
2019).
Analysis of global business environment and influence of key global drivers
Global business environment is the combination different types of factors which are
leaving impacts upon functionality of a business. Main purpose of analysis it is to make sure that
all the elements which may leave negative impact upon a business are analysed in advance and
effective strategies are formed to deal with them. The global business environment of Scotland is
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highly impacted due to climate change, governmental policies and Brexit. For SMEs it is very
important to analyse all of them so that possibility of negative impacts of them could be reduced.
The key drivers which are attracting SMEs to expand their business in Scotland are technological
advancements and high international trade. Both of them influence businesses to establish
themselves in the country.
Technological advancements: The level of this driver in Scotland is very high which
helps the country to contribute a higher percentage in the overall GDP of UK. It influences
SMEs to execute business effectively so that they can meet the level of advanced technology and
fulfil requirements of customers.
International trade: Percentage of it in Scotland is very high which is benefiting the
business entities to execute their operational activities in systematic manner. It influence SMEs
because they have to formulate such strategies which can help them to establish themselves
appropriately.
Global business environment can be defined as the environment in which different
countries are operating business around the world to attain growth. It is very important for all the
entities to make sure that they have detailed information of it as it is required to formulate
effective decisions for growth of the organisation. As Red and Blue is planning to expand its
business in Scotland so it is vital for it to analyse it. In order to assess the global business
environment PESTLE analysis could be used by Red and Blue Restaurant. There are six different
elements of it which are as follows:
Political: It includes components such as political instability, taxation policy, political
situations etc. While expanding business in Scotland it will be very important for management of
Red and Blue to make sure that they are having detailed information of the situations of political
environment of the country. For example, the situations of the country are stable therefore it will
help the SME to expand the business successfully.
Economic: Exchange, interest, inflation, deflation, unemployment etc. rates are
considered as the elements of economic factors of PESTLE analysis. While planning for
expansion in Scotland all these components are required to be analysed by Red and Blue
restaurant which will help it to be prepare to deal with all the negative situations in future. There
has been a positive improvement in the economic circumstances in Scotland as there is rise in the
3

employment rate and disposable income is £13,851 which makes it easy for a business to expand
their operations in this country (Scotland's Economic Strategy, 2015).
Social: Choices, preferences, needs, demand, buying behaviour etc. are social factors
which should be focused by all the organisations to strengthen market share. While expanding
business in Scotland it will be very important for Red and Blue Restaurant to analyse the
preferences of customers regarding food so growth could be acquired. For example, now a days
people are becoming health conscious therefore, the management should decide that such food
items will be sold by it there which are low in calories and good in taste. The favourableness of
health conscious trends of people assure that sustainability of the business operations is carried
out.
Technological: Automation, innovation, technological awareness etc. are technological
factors which are required to be focused by companies such as Red and Blue restaurant because
it can help to expand the business successfully. As the SME is planning to expand in Scotland
therefore it is very important for it to use new technologies so that growth could be acquired. For
example, the management can use online marketing strategy with the help of social media which
is a low cost but effective technology which will help to attract large number of customers.
Digital technology can be considered as one of the fastest growing sector in the Scotland
therefore taking advantage of the same will be helpful in achieving successful expansion of
operations in Europe. (Digital technology 'is Scotland's fast-growing sector', 2017)
Legal: It covers different types of laws such as consumer protection, health and safety,
copyright, patent etc. In order to establish business in Scotland successfully it is very important
for Red and Blue Restaurant to make sure that it is complying with all the legal implications. It
will help to attain development.
Environmental: It includes weather, climate, environmental policies etc. which are
required to be focused by SMEs such as Red and Blue restaurant because it is required to ignore
legal interferences and improve market image. The Scottish environment protection agency is an
effective regulator which assures that an efficient and reliable effective policies are build which
assures better environment. In Scotland rules regarding environmental protection are very strict
so the enterprise should make sure that its operations are not leaving negative impact upon the
environment because it can affect the expansion.
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