This presentation discusses the importance of tapping into new and international markets for business expansion. It explores the global environment, PESTEL analysis, opportunities and threats for Airdri, rationale for SMEs to expand their business, advantages of trading blocs, impact of tariff and non-tariff barriers, and the introduction of Airdri.
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Tapping into New and International Markets
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Introduction β’In the globalised era, companies are continually looking forward to new ways of expanding at international scale. β’Gaining access into new and international markets is important for organisations to facilitate expansion. β’It results into increment in scale of operations.
Global Environment β’United Kingdom has been chosen as the country as there are a large number of SMEs that are operating within the confines of this nation. β’UK pertains to Europe which is acknowledged tobe a lucrative continent for commercial purposes. β’It is recognized as the 6th biggest economy of the world which promotes the growth and development of small and medium enterprises. β’This facilitates people to build high standard of living.
PESTEL analysis Political-Government of US has less trade restriction and free trade policies for small size company. It is beneficial for Airdri company to expand its business activities in US market area. Economical-US country has one of the highest economic rates that will be helpful for Airdri company to conduct business task in cost effective manner.
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Cont.β¦ Social-US country has high income population which can be consider as advantage for Airdri company. This will help in enhancing sales as well as profits of business. Technological-It is crucial for Airdri company to use more modified and updated technology in its business process. US nation has one of the most advance technology in that will lead to have positive impact on respective business.
Cont.β¦ Environmental-Airdri company will be able effective supply its products to potential customers as US has pleasant weather and environmental. Legal-At US government has develop various guidelines and rules for small size company which help or develop opportunity for Airdri to conduct their business properly.
Global Business Environment β’Global business environment is referred to as the environment in a number of sovereign nations, with elements exogenous to domestic market of organization thatplace aninfluence over decisions related to leveraging resources and capabilities. β’This includes a number of extrinsic factors or conditions which largely impact upon the operations exhibited by business.
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Threat and opportunity for Airdri Opportunities: β’Competitive global environment help respective company to hire more skills, experienced and knowledgeable candidates from other nations. Threat: β’This develop unemployment in the core country at which Airdri is operating.
Rationale for SMEs to expand their business β’These are discussed in a brief manner as follows:- β’Sales Expansion: β’Cost Savings: β’Market Diversity:
Sales Expansion β’The first and most primary explanation behind undertaking an association to another nation is to open doors for increment in volume of sales. β’There are billions of shoppers in international markets and doubtlessly not every person who needs organisational offerings has access to them.
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Cost Savings β’The subsequent motivation to get drawn towards gaining entry into international markets is the opportunity for doing savings of cost. β’In an event that the business is vigorously production based, it is likely that such entity possesses the potential to exhibit cost savings by executing manufacturing operations in nations whereby land and workforce are available at moderate rates, for example, China.
Market Diversity β’Identical to the manner in which people intend to diversify their investment portfolio,smallandmediumsizedbusinessesgainaccessintonewand international markets with a view to expand their existing base of customers.
SMEs take advantage of international opportunities β’There are a number of opportunities as well as barriers associated with attainment of global growth by SMEs. β’As these firms gain entry into international market, the cost of operations for companies tend to rise by a significant proportion. β’This can be dealt with the help of the opportunity that is present for SMEs to take advantage of a global strategy and thereby enhance the existing volume of sales.
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Trading blocs and agreements and advantages β’InflateeconomicdevelopmentβOwingtotradeblocsandagreements, association would have the option to enhance the growth of economy β’Technologytransferβ Trading alliances and agreements tend to give unique and innovative techniques to business associations. β’Improvementof exchangeβ Reduction in terms of exchange limitations and strategieswouldtendtopromptimprovementsinexchangingcapacityof association.
Advantage of Trading blocs There are number of advantages of trading blocks, from which some are given below which are gain by Airdri:- β’This will help respective company to access to huge market in order to lead or increase internal economies of sales. β’Trading blocs will also help in spreading technology rapidly which increase opportunity for Airdri.
Tariff barriers β’Transit duties βThis can be referred to as the taxation which is charged by governmental authorities on products transmitted from one location to another. β’Specific duty βThis can be referred to as a barrier that affects the sale and profitability of company.
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Non tariff barriers β’Importpolicy barriersβThese
Explain tariff and non tariff Barriers Tariff Barriers Tariff barriers will include a customs levy or tariff of products while entering into a nation and it is imposed by government. It can be seek to reduced by conducting free trade agreements. There are several examples of tariff barriers such as licensing requirement, data storage requirement, price controls and many more.
Cont.β¦ Non Tariff Barriers Non tariff barriers are regulation, rules and laws a nation enacts in order to protect domestic sector against the foreign competition. This may reduce market opportunities for the United State exports as well as it provide unfair competitive advantages for the products and services from other nations.
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International trading blocs and its impact β’Trading blocs reduce unnecessary restriction on trade affairs by making uniform policies for the nation. β’Owing to Brexit, UK has signed agreement with various countries in relation to trade practices. CARIFORUM-UK economic partnership agreement is a trading bloc that helps SMEs to trade in Barbados and Bahamas and execute the option to trade freely.
Introduction of Airdri The Airdri Group is introduced in year 1974 by two business partners i.e. Peter Philipps and Peter Allen in Oxfordshire, United Kingdom. These two partners are experienced as well as entrepreneurial engineers who want to start their own business.
References β’Steiner,A.andFan,S.,2019.Ruralrevitalization:Tappingintonew opportunities.IFPRI book chapters, pp.16-25. β’Fernhaber, S., Li, D. and Wu, A., 2019. Internationalization of emerging- economynewventures:Theroleofwithin-countrydifferences.Business Horizons.