The Strategy of International Business

The Strategy of
International Business

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION...........................................................................................................................3
THEORITICAL BACKGROUND..................................................................................................4
ASSESSMENT OF CORPORATE AND FUNCTIONAL STRATEGIES....................................7
Strategy that company use to expand internationally.............................................................7
Analysis of the international corporate strategy adopted by any company..........................10
Analysis of foreign market entry strategy............................................................................10
How Rowlinson organise their strategy...............................................................................11
CONCLUSION AND RECOMMENDATIONS..........................................................................11
REFERENCES..............................................................................................................................13
APPENDIX....................................................................................................................................15

EXECUTIVE SUMMARY
Expansion of the business on International level enables the organisations to ensure their
sustainability of the business. For this they have to undertake various analyses to determine the
impact of various factors that can influence the strategy so formulated by the company. In this
report various strategies are analysed that can used by the company for implementing their
expansion plan. The Rowlinson is planning to expand their business in Canada for which
PESTLE analysis is undertaken with the help of which the impact of various factors can be
identified. In addition to this the theory of Dunning’s eclectic theory is also used that will enable
them to understand various aspects related to the investment and expansion. It is important for
the businesses to understand various entry strategies so that the best suitable to the business
operations can be used due to this various such strategies are identified for Rowlinson but they
must focus direct exporting initially. For determining the strategy of international business the
strategies so adopted by the various companies are analysed that enables the managers of
Rowlinson to formulate their strategies but the focus of the company must be on the
multinational strategy as this will help them to expand their business in future as well.
INTRODUCTION
With the globalisation the interdependence on the world economy is increasing due to which the
organisations are expanding their businesses in terms of size by tapping into newer markets at
global level. This enables the businesses to ensure the long term sustainability of the businesses
as their market share and market size increases (Yuliansyah, Rammal & Rose (2016)). The
international business is refers to as the trade of goods and services across borders due to which
cross border transaction takes place and this leads to mobility of funds and offerings from one
country to another. By tapping into new global market the companies can increase the level of
profitability s with this they can increase their customer base. The efforts of the businesses are to
solve the problem of customer by offering goods and services as per their needs and wants so
that they can be satisfied and by expanding businesses on international level the options to the
customers can be increased. Moving to the different nation facilitate the company to have an
access to various resources such as availability of funds, human capital, lower restriction of
operating in comparison to the home country. This enables them to use such resources and also
offers various advantages to the people of host countries. The expansion strategy facilitate the

businesses to diversify the market of the company that they are serving which enables them to
shift to other areas in case any natural drastic shift takes place in one areas. Going global is not
that easy as with this various challenges emerges before the company that they have to deal with
so that they can ensure the success of the business. For this they formulate various business and
corporate strategy that enables them to identify their activities, determine the actions that they
have to take to deal with the challenges effectively. Such policies and strategies are formulated
on the basis of the market research which is conducted by the teams of the companies in context
of the opportunities and threats present in the different locations where they want to expand their
business. For this they have to analyse various internal and external factors that has impact on
the expansion strategy of the business (Xu & Hitt (2018)). With the help of various theories and
analysis the internal abilities, resources of the companies are analysed in comparison to the
situations prevailing in the external business environment. In this report a UK based uniform
manufacturing company is taken into consideration which is Rowlinson Knitwear. This company
manufacture uniforms for schools and corporate houses on the basis of orders placed by them
and they make their offerings available to them at their premises as they do not have any store
from where they can sale their products. The company is planning to expand their business in
Canada as it is a developed country and has many organisations and better schools to which they
can provide their uniforms. With the help of this report various strategies for the expanding their
business are analysed. This report includes the background of various theories that helps in
internationalisation and identification of various opportunities as well as threats in the targeted
country. Apart from this the various business and corporate strategies are discussed which can be
used by the company for expanding their business internationally. Various foreign market entry
strategies are discussed that are used by the various other companies operating in the same
industry or other industry. On the basis of this various recommendations are made to the
company with the help of which they can plan their expansion in the new international market.
THEORITICAL BACKGROUND
For entering into the international market it is important to have an understanding of the
various theories that can facilitate internationalisation. Also it is important to understand the
influences of various external factors so that the opportunities and threats within the country can
be identified. Due to this the PESTLE analysis and the Dunning Eclectic theory is being
discussed below that will facilitate Rowlinson Knitwear in their expansion: