Tapping into New and International Markets

Tapping into New and
International Markets

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Explain the global business environment in which small and entrepreneurial businesses
operate ...................................................................................................................................3
Analyse the threats and opportunities that face SMEs in an increasingly competitive global
environment............................................................................................................................5
TASK 2............................................................................................................................................6
Determine and analyse the advantages of international trading blocs and agreements.........6
Explain the various tariff and non-tariff barriers that exist in the international trading
environment............................................................................................................................6
TASK 3............................................................................................................................................7
Determine the advantages and disadvantages of importing and exporting and how to secure a
deal.........................................................................................................................................7
Explain the differences between merchandise and service imports and exports...................9
TASK 4..........................................................................................................................................10
Evaluate the various methods in which SMEs can tap into international markets..............10
Compare and contrast the various ways SMEs can tap into international markets, assessing the
pros and cons of each method..............................................................................................11
CONCLUSION..............................................................................................................................12
RFERANCES................................................................................................................................14

INTRODUCTION
SME are the small and medium enterprises which are small in size and their market
capitalisation is also very low. Most of the times the CEO of SME's their founders. These SME's
cannot be compared to large companies as the turnover of the SME is very less and their market
capitalisation is very low as compared to large manufactures. This company might be small in
size but their strategies are all very good their CEO are the ones who re the strategic head and the
champion for the success of the firm. This report is made in context with Warburton Building
Services. This SME for last many years have been in the business and they have been providing
services like plumbing, heating and electrical engineers.
This report will discuss about the challenges and the obstructions that the SME will face
will expanding their business globally.
TASK 1
Explain the global business environment in which small and entrepreneurial businesses operate
While expanding the business globally the firm have to do various sorts of analysis so that
they can enter globally. With the analysis the firm can get an idea for the difference between the
business environment in the existing country and the country in which they are planning to
expand. For this the best analysis frame work in the PESTLE analysis on the existing global
business environment PESTLE analysis is an analysis done the company so that they can easily
get information about the external macro factor that can impact the working or expanding of a
business or SME (Ziipao, 2018). PESTLE analysis for Warburton Building Services are as
follows:
 Political – the first is the political factor, this is related to the political framework which
ate prevailing for SME in the business in which small and entrepreneurial business
operates. Warburton Building Services is currently operating in UK and the business
environment in UK for an SME is very promising. The government of UK is motivating
their SME to expand their business globally. With this expansion they will be generating
more and more job opportunities which will help the government and the company to
curb with the problems related to unemployment.
 Economical – The economical factor in this states that how the wage rate, employment
rate and the inflation in UK can impact in the working and expansion of the Warburton

Building Services. As the wage rate and the inflation rate in UK is very low and this will
help Warburton Building Services to grow more and more and to expand internationally.
As they are providing their services in plumbing, heating and the electrical engineering,
so they have to employee professional so that they can work easily and as the
employment rate in UK is also very less so they will find no problem in relation to
finding a professional employee at cheap rates for their working and their expansion.
 Social – These factors in pestle analysis focuses on the sociological factor and analysing
the latest trends. Warburton Building Services for many years have been in business to
provide services because in UK they were fully analysing the latest trends so that they
can provide their customers good quality product which they can remember.
 Technological – The technological factors in the PESTLE analysis states that how the use
of latest technology can impact the working. UK is a very technological advanced
country and as Warburton Building Services are also providing their services in electrical
engineering so they have to use latest technologies so that they can provide their
customers with latest technologies. With the help of latest technologies Warburton
Building Services is providing their customer with high quality and latest technological
products.
 Legal – These factors states that when doing a business, the company whether SME or
MNC they can easily come in a trap of legal factors. In UK there are various laws, rules
and regulation which are safe guarding the interest of the business and of the the
customer so all the working of Warburton Building Services was till now under the rules
and regulation of UK government when expanding they have to change their working
according to the rules and regulations of the country that they are expanding.
 Environmental - These factors in PESTLE analysis states that how the environmental
factors can impact the working of the business or SME. In UK there are strict laws which
are safe guarding the interest of the environmentalists. Warburton Building Services till
now have been doing the business taking in note the environmental factors like reducing
the use of plastic so that it may not harm the environment and when they are expanding
they have to do see that they can work without harming the nature.
This can be analysed from the above information that there are number of function which
have to be used by business firm in order to achieve business function international market. This