Tapping Into New and International Markets

Tapping Into New and
International Markets

Table of Contents
INTRODUCTION.......................................................................................................................................3
LO1.............................................................................................................................................................3
P1 Explain global business environment in small and entrepreneurial business operate.........................3
P2 Analyse threats and opportunities face by SMEs in increasing competitive global market................5
M1 Provide evidence on global business environment in which small and entrepreneurial businesses
operate.....................................................................................................................................................6
M2 Critically analyse implications of threats and opportunities face by SMEs in increasingly
competitive global environment..............................................................................................................7
LO2.............................................................................................................................................................7
P3 Determine the advantage of international trading blocs and agreements............................................7
P4 Explain various tariff and non-tariffs barriers that exist in international trading environment...........8
M3 Evaluate advantage and international trading blocs and agreements and their implications for SMEs
.................................................................................................................................................................9
D1Critically evaluate SMEs are able to take advantage of international opportunities and overcome
barriers.....................................................................................................................................................9
LO3.............................................................................................................................................................9
P5 Determine advantage and disadvantage of importing and exporting and how to secure a deal...........9
P6 Differences between merchandise and service imports and exports.................................................11
M4 Apply appropriate import and export process in organisation and make recommendations............11
D2 Produce valid and justified recommendations for use of different approaches in international
context...................................................................................................................................................12
LO4...........................................................................................................................................................12
P7 Evaluate various methods in which SMEs can tap into international market....................................12
P8 Compare and contrast the various ways SMEs can tap into international markets with their pros and
cons of each method..............................................................................................................................13
M5 Evaluate different methods SMEs can use to tap into various markets with application of small
business or entrepreneurial venture.......................................................................................................14
D3 Justify recommendations with supported critical consideration and evaluate of implementation of
different methods...................................................................................................................................14
CONCLUSION.........................................................................................................................................15
REFERENCES..........................................................................................................................................16

INTRODUCTION
Exploring the new markets is one of the best opportunities to jumpstart the business share
and growth of the organisation. In this time, a firm faces issue to find the new opportunity and
new customers along with threats and weaknesses. International market refers to the
geographical region where one enterprise operates their business that is outside the boundaries of
the domestic market. The main aim of this report is to find the opportunities to enter into the new
global market by the SMEs firm. it helps the reader to know about the implications that is faced
by the organisation at the time of entering into the global market. This report is based on the
Airdri Ltd. It is one of the SME Company in the UK that deals in hand dryers. It has large
experience of manufacturing the innovative hand dryers and they want to open their business unit
in Germany to enhance their profits and market growth and also the longer sustainability of the
business. This report includes the opportunities and threats for firms that are helps in increasing
the profit in global market. it also helps in knowing the advantage of trading blocs for the
organization. Further it shows the importing and exporting process and their practicalities that
help in exploring the enterprise. It also includes the various ways that helps in entering the
international market. all this factors helps in enhancing the profits and growth of the
company(Deng and Yang, 2015).
LO1
P1 Explain global business environment in small and entrepreneurial business operate
Globalization refers to the framework that helps in integrating the market into the
international level. It shows the connection with different countries for expanding and exploring
the business venture in the form of economic, cultural and political activities. It is the integration
and interaction between the different people, governments and companies on a global level.
It may be influence many factors including political, social, technological etc. In this
Airdri wants to operate their business in Germany for this they analyse the global business
environment by using PESTLE analysis that has to be shown below(Izberk-Bilgin and Nakata,
2016).
 Political factor – this factor shows that the political condition in UK is unstable due to
Brexit, that means some of the European countries are separated from the EU union

because of this large business affected. But at the same time it creates the best
opportunities for small scale business to expand and explore their business. In this Airdri
wants to explore their venture in the Germany, UK. This helps in earning high profits and
sales by attracting large customer’s base because it is supported by the
government(Najmaei and et. al., 2017).
 Economical factor- this factor in UK suggest the economic condition of the UK,
because of Brexit it will affects the person’s income due to this customers spending
power on brands is low. For Airdri that is a SMEs firm will give the employment
opportunities to the local people where they operate their business so that want to attract
the customers and increases the sales and also benefitted the country’s economy.
 Social factor – As UK is one of the largesse consumers market in the world expanding
their venture into the UK is one of the best opportunities for earning high profits. In this
Airdri wants to expand their business in Germany where people are more conscious about
their health and hygiene and because of this firm wants to open their outlet in there to
attracts large customer base and at the same time fulfilling all the demand of the society
by providing best quality products at reasonable price.
 Technological factor – In terms of using the advanced technology UK is one of the
famous country especially Germany. Due to this factor it will create the best
opportunities for the Airdri that is a SMEs firm because they innovate and modify their
products to meets the customers’ demands by using modern technology so that they
exports their products into the other countries and also expand their business in Germany
this helps in earning high profits and revenues.
 Legal factor- It explains the legal laws that a government was imposed for the benefit of
employees. In this Airdri follow the act related to equal pay so that all the employees are
motivates to work and give their best because of this they expand their business unit in
Germany and attracts customers for tier innovative products. If employees are motivated
than they will achieve the task and helps in earning higher profits.
 Environmental factor- This factor shows the environment condition in the global
market in this when a Airdri wants to expand their business in Germany they firstly
examine the environment so that it is easy to deal in the market and earns a high profits.
Environment in Germany is very effective and clean so that firm wants to use those