Tapping into New and International Markets

Tapping into New and
International Markets

Table of Content
• Introduction
• Global business environment in which small and entrepreneurial businesses operate
• Threats and opportunities that face SMEs in an increasingly competitive global environment
• Analysis of the global business environment
• Implications of threats and opportunities that face SMEs
• Advantages of international trading blocs and agreements
• Tariff and non-tariff barriers
• Advantages of international trading blocs and agreements and their implications for SMEs
• Conclusion
• References

Introduction
It is very important for organisation to tap into new or international market in order to expand business.
It is essential for organisation as this will lead to growth and development of business. There are various
methods that can be used by organisation in order to expand business activities into new market area.
The company chosen for this presentation is Airdri, which is a SME operating in the UK market. The
company manufactures air dryers of different styles and consume low energy. The company was found
in thye year 1974 by Peter Philipps and Peter Allen.

Global business environment in which small and
entrepreneurial businesses operate
The global business environment can be defined as the environment in various regions or countries with
external factors besides the home environment of the company that influence its various decisions
including how to make use of the available resources in various regions.
•Internal Business Environment
•External Business Environment

Threats and opportunities that face SMEs in an
increasingly competitive global environment
There are various opportunities as well as threats that could be faced by SMEs like Airdri with the
increase in competitive global environment. Competitive global environment refers to the overall
competition in the global business environment.
Threats
•Increase in competitions
•Business cost
Opportunities
•Increasing employees capabilities
•Reach to new customers

Analysis of the global business environment
It is essential for SMEs organisation to operate their function in different part of the global environment.
This will help in enhancing as well as improving business performance. For example Airdri company.
This is a small scale company that is operating its business function in UK market area. The company
holds a record of producing hand dryers that are the most energy efficient. The dryers manufactured by
the company are quietest and slimmest dryers that are available in the market. In order to expand its
business overseas, the company should analyze the performance of other competitors in the market and
then develop its strategies accordingly.

Implications of threats and opportunities that face SMEs
SMEs companies can take advantage of the opportunities that occur due to increase in competitive
environment. There are several threat that is faced by SMEs while performing its function in competitive
global environment. In order to overcome these threats various effective strategies can be implemented
so that Airdri gains a competitive edge in the market.

Advantages of international trading blocs and
agreements
Trading blocs can be define as a formal agreements that is developed to remove trade barriers between
two or more regional and countries. There are different types of trade blocs as well as agreements that
will help organisation to perform business activities in effective and efficient manner. Increase economic
growth
•Technology transfer
•Improve trade
•Free transfer of resources

Tariff and non-tariff barriers
There are various barriers that is faced by company which is performing its trading at international level.
It is very important for company to identify as well as analyse various types of tariff and non tariff
barriers that has impact over organisation.
Tariff barriers :
•Transit duties
•Specific duty
Non tariff barriers :
•Import policy barriers
•Service barriers

Advantages of international trading blocs and
agreements and their implications for SMEs
International trading blocs are considered to be very important for SMEs as this will help in offering free
trade to these companies. Due to international trading blocs and agreements as well as its implication on
organization will help in increase sales of product and services offered by organization. They can act as
both advantages as well as disadvantages for the operations of the company.

Conclusion
From the above report it can be concluded that it is essential for organization to expand its business as
well as tap into new market area. This will help in performing business activities at different part of the
world as well as reach to new customers. Global business environment have major impact over decisions
as well as performance of organization and SMEs should carefully analyze the environment in order to
gain advantage.

References
• Williams, A., 2016. Developing strategies for the modern international airport: East Asia
and beyond. Routledge.
• Izberk-Bilgin, E. and Nakata, C.C., 2016. A new look at faith-based marketing: The global
halal market. Business horizons, 59(3), pp.285-292.

Thank You