Tapping into New and International Markets

This report discusses the global business environment, threats and opportunities faced by SMEs, advantages of international trading blocs and agreements, and different ways SMEs can tap into international markets. It includes a case study of Airdri, a UK-based organization planning to expand its business in the USA. The report provides study material, solved assignments, essays, and dissertations on Desklib.

Tapping into New and
International Markets

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
P1 Explanation of global business environment in which small and medium enterprise operate3
P2. Analysation of threat and opportunity faced by small medium enterprise in competitive global environment 4
M1. Evidence based analysis of global business environment in which small and entrepreneurial business operating using specific
examples......................................................................................................................................5
M2. Critical analysation of implication of threat and opportunity hay face SME in competitive global environment 6
P3. Determination and analysation of advantage of international trading blocs and agreement.6
P4. Explanation of various tariff and non-tariff barriers that exist in international trading environment 7
M3 Evaluation of advantage of international trading blocs an agreement in implication of SME 7
P5. Determination of advantage and disadvantage of importing and exporting of how to secure a deal 8
P6. Explanation of difference between merchandise and service import and export..................9
M4. Application of appropriate import and export process to an organisation along with recommendation about how they could be
applied in context of international...............................................................................................9
P7. Evaluation of values method in which SME can tap into international market..................10
P8. Compare and contrast different ways in SME can tap into international market assessing their pros and cons of each method
...................................................................................................................................................11
M5. Evaluation of different methods of SME that can be used by companies in market for purpose of application to small business
along with masking recommendation........................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
International market refers to a market that are present outside geographic borders of a country. It provides various opportunity to a
company to expand their business in international market as they can earn more profit there. It allows them to access of various
resources, technology and labours which market their business more efficient and improve quality of their service (Ardito, Peruffo and
Natalicchio, 2019). But at same time, it creates various challenges in market. This project report includes analysation of Airdri which
is a UK based organisation that is offering hand dryers and air purifiers to their customers. It is a business which is planning to expand
their business in international market in USA. This project report includes analysation of analysation of opportunity and threat faced
by companies in global environment. It illustrates advantage to trading blocs of firm along with determination of importing and
exporting of process and practicalities involved. It also evaluates different ways in which SME can tap to international market.
TASK
P1 Explanation of global business environment in which small and medium enterprise operate
Globalisation refers to increasing interdependence of economy. Population and culture of a company that brought about cross border
trade among technologies, service, products, and information. It provides various benefits to business and cause different changes in
business environment. It allows business to access to new culture by expanding their business operation. It provides them benefits to
spread of technology as well as innovation which provide benefits to a company as they can access to new technology in their
organisation (Belz, 2017). There are different components with which it can be affected like fiscal framework, political effects,
societal influence, technical development. There are different types of tools that can be used by companies like PESTEL analysis
which allow them to evaluate and analyse external environment and create impact over efficiency of an enterprise. In order to enter in
new market, it is essential for a company to use this tool which allow them to identify threat present in market. In order to evaluate
different factors, present in market, PESTEL analysis of market of USA is mentioned underneath:

Political Factors: Political factors are those factors which consist regulation of government on import and export stability of
government and other things. Airdri is an organisation which are intending to expand their operation in market of USA. In order to
carry out their operation in market efficiently, it is essential for the to conform different ethics in market, tax policies, regulation of
economy and other things (PESTLE Analysis for Small Businesses, 2022). It is essential for managers of this organisation to consider
all these aspects in their organisation. There are different types of regulation impose by political party of USA which is to be consider
by Airdri while operating in USA. Also changes in government policy by government can create impact over survival of company.
Economic Factors: Economical factors are those factors which create impact over point of view of group in market. It is taking
into consideration about different things like fiscal situation, working methods, rate of interest, expense maximisation rate, business
optimism, and other things (de Oliveira and Rottig, 2018). Economy of different country including USA is facing crisis due to covid-
19 pandemic and other things which create impact over business of AirDri.
Social Factors: Social factors are those factors that consist things related to culture, norms of a country. It is essential for AirDri
to consider these factors which operating in market of USA as people are more sensitive about their culture and social values. In order
to ensure operation in USA without any interruption, it is essential for Airdri to ensure their business will hurt sentiments of people.
Technological Factors: Technological factors are one of important factors for purpose of getting success in mares as it provides
benefit of differentiation to a company. Airdri is adopting technology in order to sell their products as it is providing their products at
online stores (PEST Analysis of USA, 2022). This organisation is also using technology for purpose of producing their products. It
increase cost of their products which make it difficult for company to compete in competitive global business environment.
Legal Factors: Legal factors are those that consist laws and regulation which create impact over operation of company. There
are different employment and other laws which is to be consider by Airdri in order to conduct their operation in market of USA.
Ignorance of these laws and regulation can create impact of survival for business of Airdri in USA. This country is very strict with
their rules and regulation that can create impact over business of company.

Environmental Factors: Environmental factors are those which ar related to protection of environment, weather condition and
others (Devadason, Govindaraju and Mubarik, 2018). Airdri is producing their products in environmental friendly ways that does not
create impact over environment and also reusing material which are usable. This organisation is adopting sustainable practices in
market that create positive impact over image of company. It improve image of company in minds of their consumers and also allow
them for purpose of building positive reputation of company in minds of their government that provide them subsidies and other
benefits.
P2. Analysation of threat and opportunity faced by small medium enterprise in competitive global environment
SWOT analysis refers to an internal and external analysis which helps company to identify strength and opportunity in market
that helps them to overcome of weakness and threat present in market. SWOT analysis tool can be used by managers of Airdri in
market of UK which is important in order to analyse competitive market. Description of SWOT analysis in context of Airdri is
mentioned below:
Strength Weakness
 Airdri has various resource which
provide them success in global business
environment as it has financial
resources, material resources (Dwyer
and Vongvisouk, 2019).
 Airdri it has lack of experience has it is
small organisation which is planning to
expand its operation in global business
environment.
 Airdri has low financial leverage which
create impact over business activities of
company largely.
 It has lack of skilled worker which
create impact over quality of products
and performance of company.
Opportunity Threat

 Expanding operation in market of USA
provide them opportunity to hire new
and diverse skills employees. It
improves employee capability of
company which allow them to hire
employees from other country (How to
Perform a SWOT Analysis for Your
Small Business, 2021).
 Airdri is also getting opportunity to
reach to new customers as expanding
operation for a SME like Airdri allow
them to expand their operation in
global environment.
 There is increasing competition in
global environment for a SME like
Airdri which create impact over their
profitability level and marketing share.
 Expanding business to global business
will increase operating cost of company
which can impact over company and
does not allow them to capture more
marketing share.
M1. Evidence based analysis of global business environment in which small and entrepreneurial business operating using specific
examples
Small medium enterprise is one that operation in global business environment that enhance their productivities (Farrell and
Newman, 2020). It provides them opportunity to access to different resources that improve their performance. For instance, Airdri is
operating in market of UK and planning to expand its operation in USA. Expansion of their business in competitive business
environment helps them for enhancing marketing share and provide more opportunity for them to earn more profit.
M2. Critical analysation of implication of threat and opportunity hay face SME in competitive global environment
SME companies can expand their business operation in global business environment which provide them various opportunities and
threat in market. There are various opportunity can be get by Airdri as it provide employ capability to business as they can access to

more diversified employees. It also increases customer base of company which allow provide them products and customers to
customers present in different countries. This organisation will also get threat in global business environment as it increases
competition in market and also increase business cost of company.
P3. Determination and analysation of advantage of international trading blocs and agreement
Trading blocs can be described as formal agreement among different countries which is developed for purpose of removing
barriers of trade. Different types of agreement and trading blocs are developed among countries which assist for conducting business
activities in effective and efficient manner (Ferraris, Santoro and Bresciani, 2017). It consists group of countries that are in specific
region and manage to promote trading activities. It helps in trade liberalisation and also for trade creation among different members.
Types of trading blocs
North America free trade agreement- This agreement was signed by Canada, Mexico and US and established trilateral trade bloc in
North America. This come in force on 1st ofJanuary 1994, Canada and US gives highly mechanical surrounding for manufacturing
and resources growth and Mexico introduce affordable materials. It helps in reduces the trade barriers for its people and country to
generate more investment opportunists.
European union- It is a government and economic union of 27 states of Europe, it is the most unsegregated trade bloc around the
world established in 1951. the main objective of this is to construct single Europe-wide market and single currency for all the regional
trading.
Association of South East Asian Notions- It is introduce in 8th August 1967 in Bangkok 10 countries comes under this bric. The
main objective of this is to grow economic growth, community progress and increase regional space and stability. The main focus is to
modify ASEAN in single entity whereas Singapore is one of its largest trading market.
South Asian Associate for Regional Cooperation- It was started in 8th December 1985and it gives platform for all people who are
from South Asian to work with faith and understanding. They start exporting and importing merchandise to the world.
Airdiri is using NAFTA trade blocs that provides different benefits to a company which are mentioned below:

Increase economic growth: Trade blocs and agreement are contributing to economic growth of a country as it allows free flow
of trades which assist company to expand their operation in another country which create employment opportunity in host country and
also allow them to earn more profit.
Improve trade: There is reduction in trade due to trading blocs or agreement which results in improving trading function of a
company. It provides opportunity to an organisation like Airdri to expand its business operation in different countries where they can
expand their marketing share and also earn more profit.
Technology transfer: Trading blocs and agreement are important as it allow them free flow of technology in an organisation
(Götz and Jankowska, 2018). It provides opportunity to Airdri to adopt new technology in their organisation and get advantage in
market.
Free transfer of trade: These trading blocs and agreement allow company to transfer their material as well as resources to other
countries which is important in order to perform business activities in effective manner.
There are different types of international business to be adopted by managers of Airdri while expanding their business operation.
Explanation of these theories in context of company is mentioned below:
Porters five forces model: This framework uses to analyse the companies competitive environment, and uses to guide organization
strategy to generate competitive advantage.
 Competitive rivalry- It refers to the number of competition in the market and their capacity to undercut the organization.
Competitive rivalry is low in airdri company because it has greater power to charge the high price.
 Bargaining Power of suppliers- It is depends upon how many suppliers are in the market for providing goods and services to
the company. It is low because around the market there are so many suppliers so company can easily switch too other supplier.
 Bargaining power of buyer- when in market there are so many substitutes are available then customers can easily go to other
product. It has high impact in the company.
 New entrants- The impact of new entrants in market is high because of entry of new market consume less time and money.

 Threat of substitute – substitutes which can be used by the customer in place of firms product. The threat of substitute is high.
Global strategic rivalry:
This theory founded in 1980s and main objective of this is on MNCs and achieve a competitive superiority against the other global
industries. It is the service or goods which is provided by leading firms that serves to international customers. A firm gain the
competitive advantage by gaining the brand name, trademarks along with patents. This focusses on planned decisions that company
embrace as they compete internationally. This consequence both international trade and international investment. There are various
competitors present in market of airdri which create impact over profitability of company.
P4. Explanation of various tariff and non-tariff barriers that exist in international trading environment
Different types of issues and barrier are faced by a company in international market which is important to identify in order to
overcome of its impact. These barriers can be traffic and non-traffic barrier that create impact over performance of company.
Traffic barrier are those barriers which are related to duty, tax paid by company in order import and export their products (Guo
and Jiang, 2020). Non traffic barrier on the other hand can be described as restriction that can be implemented in different process of
trade that does not includes duties and taxes. Some of these barriers faced by Airdri in global business environment are mentioned
below:
Traffic barriers:
 Transit Duties: Transit duties can be described as tax that government and other parties charge on different products as well
as commodities that can be import and export. It creates negative impact on cost of company which can be huge barrier for
small company like Airdri.

 Specific duties: It is another barrier that create impact over sales and profit of company as it charged on products an service
that pass through a country.
Non traffic barrier:
 Important policy barrier: These are another barrier that can affect performance of business and it is important or managers of
a company to develop strategies to overcome of these barriers that allow business to import their products (Kupp, Marval and
Borchers, 2017).
 Service barriers: These are barrier which is faced by a company due to restriction of government for distribution of products
and service across borders. These barriers consist rules on offering of service by a company in a country.
All these barrier are creating impact over operation of company of Airdri. In order to overcome of impact of these barrier, NAFTA is
proving support to business. These support is in form of subsidies and grants which are mentioned below:
Grants: In order to provide support to small business like Airdri, NAFTA is providing support to business. For this, they are
providing grants to business that can be momentary or non monetary.
Subsidies: In order to provide support to business like Airdri, it is also essential for business to provide support to business. For this,
they are providing discounts that leads to reduction in cost of company and provide them opportunity to capture more profit in market.
special agreements: NAFTA is also providing support to business by offering them that provide them various benefits while
operating in USA. For instance, they are providing tax benefits and other things to small companies like Airdri.
M3 Evaluation of advantage of international trading blocs an agreement in implication of SME
International trading blocs as well as agreement are important for a small enterprise as it provide them opportunity to expand their
business in different companies with free flow of trade among these countries. It provides opportunity to business of Airdri to increase
sales of products and also allow them to reduce barrier present in international market. It provides them opportunity to adopt new
technologies and other resources that provide company with competitive advantage in market.

P5. Determination of advantage and disadvantage of importing and exporting of how to secure a deal
Importing and exporting activities play important role in economy of a country as it provides support to local business and
provide opportunities to company for expanding their business in international market (Li and Fleury, 2020). Explanation of these
importing and exporting activities in context of company is mentioned below:
Importing: Importing refers to an activity to purchase products and service to a country that was developed in another country.
It consists action that organisation takes for purpose of selling of products that are manufactured in abroad and bring to sell in a
country in which they are conducting business. Airdri will securing benefits of importing activities in their business by importing
cheap resources from foreign countries that allow them to reduce cost of company. It also allow them to import advance technology
that increase productivity of company and also allow them to increase efficiency of company.
Advantage of importing:
Importing of products and service provide advantage to a company as they can reduce their cost of manufacturing as
sometimes manufacturing of products and service many results in increasing cost of company.
It is providing different advantage to a company as it allows them to helps them in emergency situation. There are various
emergencies occur in a country due to drought, natural calamity which does not allow a country to produce enough products and
service and in that situation, they can import products and service.
Disadvantage of importing:
There is a risk of currency as due to fluctuation in inflation rate, business is facing difficulties in international market (Lo and
Campos, 2018). If importuning of a company is more in compare to their export, then it can result in issues in currency which create
problem for a company like Airdri.
Exporting: Exporting can be described as action that are taken by organisation for purpose of selling its products and service
in different countries.
Advantage of exporting:

Exporting good to other countries provide an advantage to getting knew ideas, learning new techniques of marketing and
management which helps Airdri to be more competitive in market. It also leads to increased sales of company as it provides them
advantage to capture more marketing share. Airdri can secure a deal with using this method as it allow them for purpose of selling of
their products and service in other country. It allow them to capture more profit and allow them to expand their products and service to
different countries.
Exporting products and service of Airdri in market of USA, company will get benefit of getting more profit. It allows company
to reduce their cost as it provides them benefits of economy of scale as company can produce more units.
Disadvantage of exporting:
There is increasing competition in global market and for exporting business, an Airdri needs to compete with different players
present in market (Marinova, 2018).
There is increasing cost due to exporting of products and service of a company as government is charging different types of
taxes and duties in market.
P6. Explanation of difference between merchandise and service import and export
There is a difference among service import or export and merchandise import and export. Merchandise refers to efforts made by
an organisation as well as individual for purpose of promotion of products and service to their customers. Merchandise can be
described as physical foods like air planes, cars, furniture and other things which are developed in one country and can be sold to
another country. Service on the other hand includes considering, web hosting, accounting service and other things which can be paid
to other people.
Merchandise can be described as practices where tangible products are export to another country where company can get
opportunity for purpose of expansion of products and service that can be easily accepted. Airdri is an organisation which are
expanding their business in USA where they develop products a per needs of people (Mic and Eagles, 2019). Needs of people in USA
is different in compare to USA for which company needs to develop product as per requirement of customers.

Service export and import can be described as activities in which earning of company made through services for purpose of
exchanging of intangible products. Service export can be described as receiving payment for exchanging of service. Service import
can be including activities for which a company needs to pay for purpose of accruing services.
M4. Application of appropriate import and export process to an organisation along with recommendation about how they could be
applied in context of international
Import and export play important role in growth of economy which consist different steps and in order to expand business at
international level, business managers need to follow all step carefully. In order adopt import process, a company needs to consist
trade enquiry, placing order, license and quotas, letter of credit, completing different document, clearing of goods and other
formalities of customers, making payment as well as completing transaction. Exporting on the other hand consist different steps like
order to export, confirmation, manufacturing of products, excise clearance, in last shipment of products. All these steps need to be
followed by an organisation for purpose of expansion.
P7. Evaluation of values method in which SME can tap into international market
There are different methods through which an organisation can be expand their operation in international market which provide
them opportunity for purpose of increasing profit. Some of these methods that can be chosen by Airdri for purpose of expanding of
their business are mentioned below:
Franchising: Franchising is a method that can be used by Airdri for purpose of expansion of their organisation in which
franchisor provide license for using their procedure, business model, intellectual property, brand of franchisee and in return they will
get certain feeds and allow companies for purpose of complying with obligation (Najmaei, Mansori and Raueiser, 2017). It allows
managers of Airdri to expand their operation without investing it.
Joint venture: Joint venture refers to a strategy which is combination of two or more parties that are taking development of
single enterprise or a project for purpose of profit, sharing risk associated with its development. These parties are free to contribute

their resources, capital, assets skills, knowledge, labour, and other resources for completion of a project. Managers of Airdri can adopt
this technique for purpose of sharing cost and risk associated in market.
Outlet and Branches in abroad: It is another method for expansion of products and service in market in which business can
open their branches in market. It is market which helps companies for purpose of increasing profit and allow company to attain their
goals. Airdri can use these methods which helps them to increase their numbers of stores in market of USA. It also allow company to
increase their market reach that assist them to increase numbers of customers of company.
Partnership with large organisation: It is a method for expansion of business for Airdri in market of USA in which they can
be partner with another large organisation and can take share in business (Ray, Ray and Kumar, 2017). In this company will get profit
for the amount they have invested in business and can also develop strategies for success of business. It assists managers of Airdri to
make profit for their organisation and also helps them for purpose of understanding needs of customers. This method provide various
advantage to Airdri as they can support from large organisation that allow them to use their resources and also to share debt of
company.
P8. Compare and contrast different ways in SME can tap into international market assessing their pros and cons of each method
Airdri is an organisation who has its business in market and planning to expand its business operation in market of USA. It is a
company which is developing air purifies and hard dryers to their customers (Taylor, 2019). In order to expand their business, they can
adopt different strategies which provide different advantage and advantage in market. Some of these strategies of company in market
Joint Venture: It can be described a method if internationalisation in which business invest or acquire in a particular business.
 Pros: It provide benefits to business of Airdri as it allows them to access different resources and allow business to expand their
operation without investing in training and development opportunity to employees or hiring new employees.
 Cons: This strategy create problems for Airdri as there are different policies related to taxation in US which create burden of
cost on company.

Franchising: Franchising is another strategy in which franchisor provide right to franchisee to share their business model and
process and for which franchisee needs to pay some fees to franchisor.
 Pros: This strategy helps business of Airdri to protect them from market risk and also allow them to increase their customer
base.
 Cons: It create problems for managers of Airdri as sometimes franchisee will not carry out business according to business
strategy of franchisor. Managers of company also needs to monitor activities of franchisee which increase cost of company.
Partnership with large organisation: It is a strategy in which company needs to made contract with another company where they
can share profit in a ratio in which they invest capital (Thrassou, Giacomarra and Galati, 2020).
 Pros: Airdri is an organisation which will get benefit of this strategy as it allows them to share risk in market and also it is easy
to form.
 Cons: Adoption of this strategy in market create negative impact on decision making process of Airdri and create results in
less focus on organisation as there can be situation arise of conflict among partners.
Outlet and branches in abroad: it is a method that allow company to expand their operation by opening their branches in market.
 Pros: This method provide advantage to Airdri by allowing them for purpose of increasing numbers of stores in USA.
 Cons: it is another method that increase burden of cost of company and also increase marketing risk.
M5. Evaluation of different methods of SME that can be used by companies in market for purpose of application to small business
along with masking recommendation
There are different methods to be adopted by managers of companies for purpose of expansion of products these methods include
franchising, opening new branches, partnership with other organisation, joint ventures. It is recommended to managers of Airdri to
select methods that best suits to their resources. It is also recommended to mangers to adopt ethical and sustainable practices while
expanding business at international level as it provides them opportunity in market.

CONCLUSION
From above mentioned project report, it can be concluded that international market provide opportunity for small medium
enterprise to expand their business operation. It allows them to access to different resources, technology in market and earn more
profit with expansion of marketing share. There is various disadvantage to this international market as it creates various threat and risk
in market. There are different types of strategies to be adopted by managers of company in order to expand their operation including
franchising, branches, partnership, joint venture and many more. There are different types of tools to be used by companies in market
to identify risk and opportunity like SWOT analysis and PETEL analysis.

Tapping into New and International Markets
Explanation of these importing and exporting activities in context of
company is mentioned below:
Importing: Importing refers to an activity to purchase products and service
to a country that was developed in another country. It consists action that
organisation takes for purpose of selling of products that are manufactured
in abroad and bring to sell in a country in which they are conducting
business. Airdri will securing benefits of importing activities in their
business by importing cheap resources from foreign countries that allow
them to reduce cost of company. It also allows them to import advance
technology that increase productivity of company and also allow them to
increase efficiency of company.
Advantage of importing:
 Importing of products and service provide advantage to a company as
they can reduce their cost of manufacturing as sometimes manufacturing
of products and service many results in increasing cost of company.
 It is providing different advantage to a company as it allows them to helps
them in emergency situation. There are various emergencies occur in a
country due to drought, natural calamity which does not allow a country
to produce enough products and service and in that situation, they can
import products and service.
INTRODUCTION
International market refers to a market that are present outside geographic
borders of a country. It provides various opportunity to a company to
expand their business in international market as they can earn more profit
there. It allows them to access of various resources, technology and
labours which market their business more efficient and improve quality of
their service (Ardito, Peruffo and Natalicchio, 2019). But at same time, it
creates various challenges in market. This project report includes
analysation of Airdri which is a UK based organisation that is offering
hand dryers and air purifiers to their customers. It is a business which is
planning to expand their business in international market in USA. This
project report includes analysation of analysation of opportunity and threat
faced by companies in global environment. It illustrates advantage to
trading blocs of firm along with determination of importing and exporting
of process and practicalities involved. It also evaluates different ways in
which SME can tap to international market.
TASK 2
P5. Determination of advantage and disadvantage of importing and exporting of
how to secure a deal

Disadvantage of importing:
There is a risk of currency as due to fluctuation in inflation rate,
business is facing difficulties in international market (Lo and Campos,
2018). If importuning of a company is more in compare to their export, then
it can result in issues in currency which create problem for a company like
Airdri.
Exporting:
Exporting can be described as action that are taken by organisation
for purpose of selling its products and service in different countries.
Advantage of exporting:
Exporting good to other countries provide an advantage to getting
knew ideas, learning new techniques of marketing and management which
helps Airdri to be more competitive in market. It also leads to increased sales
of company as it provides them advantage to capture more marketing share.
Airdri can secure a deal with using this method as it allow them for purpose
of selling of their products and service in other country. It allow them to
capture more profit and allow them to expand their products and service to
different countries.
Exporting products and service of Airdri in market of USA, company
will get benefit of getting more profit. It allows company to reduce their cost
as it provides them benefits of economy of scale as company can produce
more units.
P6. Explanation of difference between merchandise and service import and
export
There is a difference among service import or export and merchandise
import and export. Merchandise refers to efforts made by an organisation as
well as individual for purpose of promotion of products and service to their
customers. Merchandise can be described as physical foods like air planes,
cars, furniture and other things which are developed in one country and can
be sold to another country. Service on the other hand includes considering,
web hosting, accounting service and other things which can be paid to other
people.
Merchandise can be described as practices where tangible products are
export to another country where company can get opportunity for purpose of
expansion of products and service that can be easily accepted. Airdri is an
organisation which are expanding their business in USA where they develop
products a per needs of people (Mic and Eagles, 2019). Needs of people in
USA is different in compare to USA for which company needs to develop
product as per requirement of customers.
Service export and import can be described as activities in which earning of
company made through services for purpose of exchanging of intangible
products. Service export can be described as receiving payment for
exchanging of service. Service import can be including activities for which a
company needs to pay for purpose of accruing services.

In order adopt import process, a company needs to consist trade enquiry,
placing order, license and quotas, letter of credit, completing different
document, clearing of goods and other formalities of customers, making
payment as well as completing transaction. Exporting on the other hand
consist different steps like order to export, confirmation, manufacturing of
products, excise clearance, in last shipment of products. All these steps need
to be followed by an organisation for purpose of expansion.
P7. Evaluation of values method in which SME can tap into international market
There are different methods through which an organisation can be expand
their operation in international market which provide them opportunity for
purpose of increasing profit. Some of these methods that can be chosen by
Airdri for purpose of expanding of their business are mentioned below:
Franchising: Franchising is a method that can be used by Airdri for purpose
of expansion of their organisation in which franchisor provide license for
using their procedure, business model, intellectual property, brand of
franchisee and in return they will get certain feeds and allow companies for
purpose of complying with obligation (Najmaei, Mansori and Raueiser,
2017). It allows managers of Airdri to expand their operation without
investing it.
Joint venture: Joint venture refers to a strategy which is combination of two
or more parties that are taking development of single enterprise or a project
for purpose of profit, sharing risk associated with its development. These
parties are free to contribute their resources, capital, assets skills, knowledge,
labour, and other resources for completion of a project. Managers of Airdri
can adopt this technique for purpose of sharing cost and risk associated in
market.
Outlet and Branches in abroad: It is another method for expansion
of products and service in market in which business can open their branches
in market. It is market which helps companies for purpose of increasing
profit and allow company to attain their goals. Airdri can use these methods
which helps them to increase their numbers of stores in market of USA. It
also allow company to increase their market reach that assist them to
increase numbers of customers of company.
Partnership with large organisation: It is a method for expansion
of business for Airdri in market of USA in which they can be partner with
another large organisation and can take share in business (Ray, Ray and
Kumar, 2017). In this company will get profit for the amount they have
invested in business and can also develop strategies for success of business.
It assists managers of Airdri to make profit for their organisation and also
helps them for purpose of understanding needs of customers. This method
provide various advantage to Airdri as they can support from large
organisation that allow them to use their resources and also to share debt of
company.
P8. Compare and contrast different ways in SME can tap into international market
assessing their pros and cons of each method
Airdri is an organisation who has its business in market and planning to
expand its business operation in market of USA. It is a company which is
developing air purifies and hard dryers to their customers (Taylor, 2019). In
order to expand their business, they can adopt different strategies which
provide different advantage and advantage in market. Some of these
strategies of company in market

• Pros: It provide benefits to business of Airdri as it allows them to
access different resources and allow business to expand their operation
without investing in training and development opportunity to employees or
hiring new employees.
• Cons: This strategy create problems for Airdri as there are different
policies related to taxation in US which create burden of cost on company.
Franchising: Franchising is another strategy in which franchisor provide
right to franchisee to share their business model and process and for which
franchisee needs to pay some fees to franchisor.
• Pros: This strategy helps business of Airdri to protect them from
market risk and also allow them to increase their customer base.
• Cons: It create problems for managers of Airdri as sometimes
franchisee will not carry out business according to business strategy of
franchisor. Managers of company also needs to monitor activities of
franchisee which increase cost of company.
Partnership with large organisation: It is a strategy in which company
needs to made contract with another company where they can share profit in
a ratio in which they invest capital (Thrassou, Giacomarra and Galati, 2020).
• Pros: Airdri is an organisation which will get benefit of this strategy
as it allows them to share risk in market and also it is easy to form.
• Cons: Adoption of this strategy in market create negative impact on
decision making process of Airdri and create results in less focus on
organisation as there can be situation arise of conflict among partners.
Outlet and branches in abroad: it is a method that allow company to expand
their operation by opening their branches in market.
• Pros: This method provide advantage to Airdri by allowing them for
purpose of increasing numbers of stores in USA.
• Cons: it is another method that increase burden of cost of company
and also increase marketing risk.
M5. Evaluation of different methods of SME that can be used by companies in
market for purpose of application to small business along with masking
recommendation
There are different methods to be adopted by managers of companies for
purpose of expansion of products these methods include franchising, opening
new branches, partnership with other organisation, joint ventures. It is
recommended to managers of Airdri to select methods that best suits to their
resources. It is also recommended to mangers to adopt ethical and sustainable
practices while expanding business at international level as it provides them
opportunity in market.
CONCLUSION
From above mentioned project report, it can be concluded that international
market provide opportunity for small medium enterprise to expand their
business operation. It allows them to access to different resources,
technology in market and earn more profit with expansion of marketing
share. There is various disadvantage to this international market as it creates
various threat and risk in market. There are different types of strategies to be
adopted by managers of company in order to expand their operation
including franchising, branches, partnership, joint venture and many more.
There are different types of tools to be used by companies in market to
identify risk and opportunity like SWOT analysis and PETEL analysis.

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Kupp, M., Marval, M. and Borchers, P., 2017. Corporate accelerators: fostering innovation while bringing together startups and large
firms. Journal of business strategy.
Li, J. and Fleury, M.T.L., 2020. Overcoming the liability of outsidership for emerging market MNEs: A capability-building
perspective. Journal of International Business Studies, 51(1), pp.23-37.
Lo, F.Y. and Campos, N., 2018. Blending Internet-of-Things (IoT) solutions into relationship marketing strategies. Technological
Forecasting and Social Change, 137, pp.10-18.
Marinova, S.T., 2018. Motives and strategies for foreign direct investment in Central and Eastern Europe. In Foreign Direct
Investment in Central and Eastern Europe (pp. 93-116). Routledge.
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and Tourism, 25, pp.113-121.
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Marketing Management and Consumer Behavior, 1(5).

Ray, P.K., Ray, S. and Kumar, V., 2017. Internationalization of latecomer firms from emerging economies—The role of resultant and
autonomous learning. Asia Pacific Journal of Management, 34(4), pp.851-873.
Taylor, M., 2019. Enterprise, embeddedness and local growth: inclusion, exclusion and social capital. In Promoting Local Growth (pp.
11-28). Routledge.
Thrassou, A., Giacomarra, M. and Galati, A., 2020. The requisite match between internal resources and network ties to cope with
knowledge scarcity. Journal of Knowledge Management.
Online
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analysis-for-small-businesses>
PEST Analysis of USA, 2022. [Online]. Avialable through: <https://pestleanalysis.com/pest-analysis-of-usa/>
How to Perform a SWOT Analysis for Your Small Business, 2021. [Online]. Avialable
through:<https://www.salesforce.com/eu/blog/2021/07/swot-analysis-small-business.html>