Tapping into New and International Markets - Desklib

This report discusses the business environment at global level, threats and opportunities for SMEs, advantages of international trading agreements and blocs, tariff and non-tariff barriers, and more. It also covers the disadvantages and advantages of importing and exporting and how to secure the deal. The report provides expert insights on Desklib.

Tapping into New And
International Markets

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 Describe about the business environment at global level in which entrepreneurial and
businesses of small level operate ...........................................................................................3
P2 Evaluate about the threats and opportunities that face SMEs into the increasingly global
environment at competitive level ..........................................................................................4
P3 Advantages of international trading agreements and blocs...............................................5
P4 Different tariff and non tariff barriers that resides in the trading environment at
international level. .................................................................................................................6
M1 Provide analysis on the evidence based of business environment at global level in which
entrepreneurial and businesses of small level operate with support of particular examples..6
M2 Assess the implications into critical terms for opportunities and threats that face SME s in
the global environment at competitive level..........................................................................7
P5 Find out the disadvantages and advantages of importing and exporting and in which
manner to secure the deal.......................................................................................................8
P6 Describe about the differences between service exports and imports and merchandise .8
M4 Put the proper export and import procedure to the company and give recommendations
that in which manner they can be applied to the international level relation .......................9
P7 Assess the different techniques in which small medium enterprises can enter into markets
at international level.............................................................................................................10
P8 Contrast and compare the different ways SME s can enter into markets at international
level by evaluating the all the cons and pros of every method ...........................................10
M5 Assess dissimilar methods that SME s can use to tap into different markets with
application to small business or entrepreneurial venture making valid recommendations. .11
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
The market at international level is the region of geographic area where the organisation
conducts the business which is at the external side of boundaries of territory of an organisation's
country of home. It is important because it makes the cultural and social exchange which is
possible between dissimilar countries of the world. In the present report, Hilton hotel is taken
into consideration. Hilton hotel is a brand of global level which provides service of resorts and
hotels. It is basically the type of brand of flagship of multinational of America of Hilton of
hospitality company(Adomako and et.al., 2021). The report basically consist of global business
environment in which entrepreneurial and small business operate. The report also consist of
threats and opportunities that SME s face into this global environment at competitive level and
also about the pros of blocs of international trading and agreements. Moreover, the report will
cover analysis about dissimilar non-tariff barriers and tariff barriers which exist into the trading
environment at international level. The report basically consist of disadvantages and advantages
of exporting and importing. The report also consist of differences between merchandise and
service exports and imports and also about dissimilar methods in which SME s can tap into
international markets.
MAIN BODY
P1 Describe about the business environment at global level in which entrepreneurial and
businesses of small level operate
Business environment at global level refers to the task and societal environment of an
organisation that is impacted through the forces on the global basis. The global forces are not
restricted to market of labour at the global level but it also include technological force,
economic, legal and political forces(Akter and et.al., 2021). A new organisation of global level
is a firm of business which is from inception, seeks to derive significant advantage at competitive
level from the sale and use of resources of outputs into dissimilar countries. There are different
factors which runs the SME's into positive terms which are defined into the following manner:
 New market conditions: The existence of alliances and global networks, global nature
of current business, homogenisation of buyers needs and follows the trade abroad.
 Technological advances: The possibilities of online business, advances in
communication technology also gives a support system to the small businesses.

 Learning from overseas: Network of people and tapping into technological innovation
also gives opportunity to SMEs to learn into positive manner.
Degree of competition: SME s find it very advantageous to market at international level as these
are the main markets that has been entered by the significant rivals within the particular industry
(Blackburne and Buckley., 2019). So it has been observed that competition is the important force
of driving for SME s to operate and market on the global basis.
In context to Hilton hotel, it is a very famous company of hospitality at global level
which has a portfolio of eighteen brands of world class level which is comprised of more than
6800 properties and has more than one million rooms in 122 territories and countries.
P2 Evaluate about the threats and opportunities that face SMEs into the increasingly global
environment at competitive level
There are certain opportunities and threats which has been faced by small medium
enterprises in this global environment at competitive level which are defined into the following
manner:
Opportunities faced by SME s in the environment at global level
 Increase in Profits/sales: It is the important reason that why SME s would like to
market at international level where revenue has experienced the increment in it. It is
directly related to improvement into profits as well where revenue has generated on the
larger scale which increases the profits into significant terms.
 Economies of scale: Internationalisation will help SME s in order to attain the greater
scale of economy as compared to small businesses which were only operates into the
domestic market(Chetty and et.al., 2018). When there is higher scale of production of
production and marketing on the international scale the greater will be the benefit that
mainly results into cost savings.
 Competition: SME s find it beneficial in order to market at international level as these
are the main markets which have been entered by different significant rivals within the
particular industry. Hence, it has been observed that competition is the significant force
of driving for small medium enterprises to operate and market on the global basis.

Challenges faced by SME s in the environment at global level
Issues of Timing : It act as a large scale problem for the SME where dissimilar markets have
dissimilar zones of time which can't be avoided. For instance, as Hilton hotel operates into
different countries so there can be time differences in order to operate the hotel into successful
terms.
Currency changes: The market of currency are very volatile in terms of nature and also
subjected to the fluctuations on the daily basis. For instance, it has been observed that Hilton
hotel operates into different countries so every country has their own currency due to which they
have to face problems in order to operate at the international level. There is one more example
which can prove this point where American firms have to suffer a severe set back when dollars
strengthened against the Euro. It affects the profits on a larger scale which results into fluctuation
level.
P3 Advantages of international trading agreements and blocs
In context to trading blocs, it is basically a type of intergovernmental agreement which
allows to trade in a easy and effective manner. In context to international trading blocs or the
trading agreements, it consists of the following advantages:
Varied Products and lower prices: In context to the organization, the tariff elimination basically
results in low prices for the customers and due to the free flow, it helps in increasing the access
to a wide range of goods and services (Akter, Hossain, Lu and Shams, 2021).
Larger market: In context to the company, it can increase its profits to other country’s members
without worrying for any kind of protection. The broader market helps in taking benefit of the
economies of scale.
Encourages specialization: with the support of increases trade, it leads to increased
specialization.
Increases economic power: In context to trade, it offers members a strong power of bargaining
position for the agreements and trade policies as they form a united front.
More abundant capital and access to cheaper options: In context to the company, the
organizations can take advantage of the member countries who basically have more developed
financial markets.

Offers new opportunities for investment and trade: In context to trade, it offers more benefits and
advantages when it comes to opportunities for trading and investment.
P4 Different tariff and non tariff barriers that resides in the trading environment at international
level.
In context to tariff, it is a tax which is imposed by the nation on the goods which are
imported. In relation to these tariffs and protective tariffs, it makes the imported products less
attractive to the buyers as compared to the domestic products. In reference to the major hurdles
or barriers in the international trade, it generally comprises of the language or distance, non
tariff barriers, taxes on imported goods and tariff barriers. In context to the non tariff barriers to
trade, it basically comprises of the exchange controls, import quotas, buy national regulations
and embargoes.
Buy national regulations: These are basically the government rules that offers privileges to the
retailers and the domestic manufacturers.
Embargo: In context to such tariff, it is basically a total ban on the exports and the imports of the
product.
Exchange controls: In context to such tariff, it comprises of laws that involves a organization
earning foreign exchange from its exports for the purpose to sell the foreign exchange to a
control agency for example the central bank (Elo and Silva, 2022).
Import quota: In context to such tariff, it is basically the limit on the goods quantity that could be
imported.
Protective tariffs: In context to such tariffs, it is basically imposed for the purpose to make
imports less attractive to buyers than the domestic products. In addition to that, these tariffs plays
a very important role in protecting infant industries, protecting the U.S jobs and protecting
technology and industries during the peace time which is very important in the situation of war.
M1 Provide analysis on the evidence based of business environment at global level in which
entrepreneurial and businesses of small level operate with support of particular examples
Global business environment basically refers to the opportunities and challenges which
businesses face when it operates into the global market place. The global environment is
important because it basically offers the comprehensive platform in order to gain more customers
of the product or service(Clark and et.al., 2018). The best example of global business
environment is the US which has higher level of power country on the world wide basis which

has stable and strong economy. It has achieved growth on the higher scale that makes the best
place for doing business into context of growth and stability as well.
M2 Assess the implications into critical terms for opportunities and threats that face SME s in
the global environment at competitive level
At the global level, it has been observed that there are certain opportunities which are
beneficial for the growth and development of SME s into positive manner.
These opportunities contribute into the context of revenue and profit growth of the SME
s into result oriented form. The threats which have been faced by SME s act as barrier in terms of
achieving growth and success for the organisation(Elo and Silva., 2022). So at the global level in
context to Hilton hotel the opportunities contribute into the context of enhancing the
performance and threats act as barrier for the hotel in terms of achieving their goals and
objectives as well.
D1 Assess that how SME sable to take pros of opportunities into critical terms of opportunities at
international level and resolve the barriers
At international level, there are certain sponsors and supporters who act as advantageous
factor for SME s where they can grow themselves into financial aspect by making investment
into their businesses. It has been observed that there are certain barriers at international level but
their innovative and creative efforts support in terms of overcoming the barriers into positive
manner. Their marketing strategy also act as opportunity at the international level for enhancing
their performance and contribute into context of overcoming the barriers.
M3 Assess the advantages of blocs of international trading and agreements and their suggestions
for their SME s
There are certain pros of trading at international level blocs which includes the larger
market, ,boost the direct investments, lower prices and more varied products. In addition to this,
encourage specialisation, decrease the monopoly power when competition increases and access
to abundant and cheaper capital(Ibeh and et.al., 2018). When they have implied at the
organisational level of SME s then they can perform into more better terms and also enables for
the free trade between close countries at geographical level. It basically lead towards the
increment into export potential, economies of scale, higher growth and greater competition.

P5 Find out the disadvantages and advantages of importing and exporting and in which
manner to secure the deal
Importing Exporting
Advantages: Goods are available into ready
form.
 Goods can be available at lower cost
since they were imported
 Good may be into better condition or of
good quality since imported
Advantages: Minimum level of risks and
investment
 Speed of entering market is very higher
 Maximises scale with use of existing
facilities
Disadvantages: There are certain goods who
have higher cost without competition of
imported goods
 There are times when there is problem
of unavailability
 The risk of transportation are always
present there.
Disadvantages: Trade barriers and tariffs to
costs and transport costs
 The risk of limited access to local
information is always present
 Company is also viewed as an outsider.
For ensuring the success of a business deal it is important that to get the right people and
also be well prepared into positive manner. It is also important that to never underestimate the
risks and focus on the key issues which memorialise the deal. There are certain steps which
needs to be followed where negotiation takes place between the interested parties and after that
deal can be secured into positive manner(Khakurel and et.al., 2018). Payment phase is the next
stage is the next stage when the deal has been secured where prices are agreed between the
parties and after which the imports and exports have been taken place through establishing the
distribution channel. In context to Hilton hotel, it is important that to listen their customers into
positive terms and takes care about the expectations of customers in order to secure the deal or
attracting customers on a larger scale.

P6 Describe about the differences between service exports and imports and merchandise
Merchandising of export refers to the technique of providing the goods of retail level for
the target of selling goods into the market at foreign level of consumers which indicates about
the import merchandise. Export goods of merchandise are those who left the territory of statistics
of a country. Merchandise imports refers to the goods that act as addition into the stock of
country of resources of material through entering its statistical territory(Khan and Lew., 2018).
On the other hand, the imports and exports of services reflect about the value of services which
has been provided to residents of other countries through the country's residents Importing and
exporting of services is easier than importing and exporting of merchandise as it latter requires
the more physical movement than the former. For instance , it has been observed merchandise
requires the establishment of efficient and effective logistics system in the entire distribution
channel. Merchandise basically requires the physical movement from one part of the world to
another which can be only by the use of ships and cargo plane(Magnani and et.al., 2018).When
compared to importing and exporting of services then it has become easier and also available
into wider terms due to emergence of online technologies and internet as well. There is also
another example of export service is about the remote computer access where the screen of
computer can be shared by some one who may be somewhere else into the world. In context to
Hilton hotel, they can provide their services into different countries but it can be possible that a
person can make payment of US for the customer of UK as well.
M4 Put the proper export and import procedure to the company and give recommendations that
in which manner they can be applied to the international level relation
For the proper export and import process it is important that to do the market research
and set the objectives of regulation. It is important that to implement the trade regulations and
make contacts into appropriate terms and also need to have quotation and terms as well. In the
further step, it is important that to have sales contract and execute the contract into proper terms
and also need to have customs clearance as well (McCormick and Somaya., 2020).At the end,
get paid into positive terms. For applying at the organisational context it is important that the
organisation has to properly follow all the steps of export and import where it is important for
them to make a strategy in order to successfully import and export the goods, services as well.
D2 Produce the justified and valid recommendations for use of different approaches into
organisational context

It has been recommended for Hilton hotel that they have to focus on direct importing and
exporting. Under this head, sales has been done by an exporter directly to the buyer who is
located in a foreign country and importer directly purchases goods and services from the foreign
supplier. The main advantage of direct exporting or importing is that the company have more
control over their products and in addition to the import and export processes.
P7 Assess the different techniques in which small medium enterprises can enter into markets at
international level
There are different methods through which SME s can tap into markets at international
level which are defined into the following manner:
 Exporting: It is a kind of act which sends the commodities out of the country and also
involve in terms of trade purpose.
 Licensing: It basically refers to the obtaining of permission from the company in order to
sell or manufacture one or more products within the defined market area (Qi and et.al.,
2020). The organisation who obtains these rights usually agrees on paying the royalty fee
to their original owner.
 Partnering: It refers to the application of functional expertise in one area of the
organisation for enhancing the decision making into business units in the entire
organisation.
 Acquisition: An acquisition basically refers to the process where one company
purchases most or all of another company's shares in order to gain control of that
company.
 Greenfield venturing: It is a kind of market entry strategy where with establishment of a
new wholly owned subsidiary in a new country through constructing its facilities from
the initial level.
In context to Hilton hotel, they can use licensing method to enter into any new country because
the business can legally enter into the new market by following all the procedures and rules as
well. So its the best method to tap into new market at the international level with the right kind of
approach.

P8 Contrast and compare the different ways SME s can enter into markets at international level
by evaluating the all the cons and pros of every method
There are different methods of entering into markets at international level which include
exporting, licensing, partnering, acquisition etc. The main advantage of exporting is that it
increases the administrations costs for SME s as there is requirement of to deal with export
regulations when trading outside the domestic market (Surdu and et.al., 2018). The disadvantage
of exporting is that remote relationships management can be very tricky due to geographical
distance. In case of licensing it allows the SME s to create new services, merchandise and market
opportunities for themselves. The key disadvantage of licensing is that its not easier to take
license for doing business into new country where they have to follow lots of procedures and
roles, responsibilities as well.
In case of partnering, the main advantage is that they can share the profits and roles,
responsibilities and burden as well so its easier to run the business. The con of partnership is that
the liability of partners for the debt of the business is very unlimited and every partner is equally
responsible for the debts. Under head of acquisition, it is easier to grow into markets and also
contribute into context of improving revenue. When acquisition have not been done into
appropriate terms then it reduces the market share and also decreases the revenue as well. From
the comparison point of view, it has been observed that licensing is the best method for
organisation of Hilton in order to tap into new foreign market. So these are the pros and cons of
different ways of tapping into international market.
M5 Assess dissimilar methods that SME s can use to tap into different markets with application
to small business or entrepreneurial venture making valid recommendations
As there are different methods of tapping into international market which include
exporting, licensing, acquisition and partnering as well(Xiao and et.al., 2021). It has been
recommended that they can use licensing method by the organisation of Hilton hotel and as it is
from the service industry so its the best method to tap into new foreign market. So its the best
method to enter into new market at the international level.
D3 With support of critical consideration justify recommendations and assess the different
methods implementation
The recommendation of licensing method is the best way to tap into new international
market. As it is not the easiest method to enter into new market because there are lots of

procedures and rules regulations which is not easier from organisational point of view. When it
has been implemented at the organisational level of hotel then it is easier to understand what
steps need to follow for entering into this new foreign market.
CONCLUSION
The above stated report concludes that tapping into international market is not easier and
need to follow proper procedure in order to complete the process. It has been concluded that
global business environment is very important in order to run the business into successful terms.
It has been determined that there are certain threats and opportunities which has been faced by
the SME s in this global business environment. It has been observed that there are certain
advantages of international trading blocs and agreements. There are different barriers of tariff
and non-tariff which exist into this international trading environment. There are certain
advantages and disadvantages of importing and exporting and also there are steps which needs to
be followed for securing the deal into proper terms. There are certain differences between
merchandise and service imports and exports as well. It has been observed that there are different
methods of entering into new foreign market and every method has their ow n pros and cons as
well.

REFERENCES
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