Opportunities for SME in International Market

UNIT 43

Table of Contents
INTRODUCTION...........................................................................................................................................3
Main Body...................................................................................................................................................3
TASK 1..........................................................................................................................................................3
P1) Discuss global business environment................................................................................................3
M1) Analyze global business environment in which small enterprises operated....................................4
P2) Discuss threats and opportunities faced by SME in competitive global environment.......................4
M2) Discuss the implications of threats and opportunities in reference of SME.....................................5
TASK 2..........................................................................................................................................................5
P3) Discuss how trading blocks and agreements are important for business..........................................5
P4) Discuss several tariff and non tariff barriers present in international environment..........................6
M3) Discuss benefits of international trading blocs and agreements......................................................7
D1) Discuss the way in which SMEs are able to get advantage of opportunities in international market
and overcome with barriers....................................................................................................................7
TASK 3..........................................................................................................................................................8
P5) Determine advantages and disadvantages of importing and exporting............................................8
P6) Define the differentiation among merchandise and services imports and exports...........................9
M4) Apply the appropriate import and export process and make recommendations of how they could
be applied in international context.........................................................................................................9
D2) Recommendations to undertake different approaches in international context............................10
TASK 4........................................................................................................................................................10
P7) Assess the different methods in which SMEs can tap in to international markets..........................10
P8) Compare and contrast the various ways SMEs can tap into international markets........................11
M5) Different method SMEs can utilise to tap in to different markets with application to a small
business or entrepreneurial venture.....................................................................................................12
D3) Give recommendations with critical consideration and evaluation of different methods..............13
CONCLUSION.............................................................................................................................................14
REFRENCES................................................................................................................................................15

INTRODUCTION
Market refers to a place where products and services are exchanges in terms of money.
There are some crucial parities such as buyers, seller, suppliers and more are present in market.
Products are exchanged in market with a major aim to earn higher profit margin and meet with
the requirements of customers (Aernoudt, 2017). International market exists beyond the
boundaries of a country. The present report is based on opportunities for SME to enlarge
business in international market. In the current report DCS group is taken into consideration that
is distributor of beauty and house hold brads within UK. It was founded in 1994 by Denys
Shortt. The report includes analysis of global business environment along with several barriers
related to tariff and non tariff within international market. In addition, difference between service
and merchandise imports and exports also included in the following report.
Main Body
TASK 1
P1) Discuss global business environment
Here, global business environment is made with the environment prevailing within
different countries that influence overall decision making process of company. For managers of
SME, it is essential to analyze global business environment in order to expand business
successfully. Here, different factors for this purpose are given as under:
Political Factors: It is analyzes that political environment of different countries is not
similar. It comprises several factors such as trade policies, political condition of country and
more. it is monitored that political environment of Europe is favorable for growth and expansion
of small business. But, managers of DCS group need to evaluate political conditions of different
countries in terms of business expansion in significant manner.
Economical factors: In this, elements such as employment rate, interest rate, demand,
supply and more are included. In global business environment, there are ample of nations and
their economic conditions are included (Zerdin, 2017) . However, economic condition of UK is
favorable but there are some developed countries that are still lacking even in necessary
infrastructure. In reference of DCS group, managers need to evaluate the economic conditions
of different countries ijn order to prepare effective strategies.

Social Factors: These are important factor of global business which includes purchasing
behavior, personality, attitude, social class and status of individuals. In context of DCS group,
they need to consider these factors so that they can meet with needs and requirements of global
audience.
Technological factors: In current business world, there are ample of new as well as
innovative techniques are used by companies in order to ensure sustainability. For this purpose,
managers of DCS group also adopt creative approaches to strengthen their market position.
M1) Analyze global business environment in which small enterprises operated
Global business environment comprises positive as well as negative factors that influence
small business in significant manner. Now, global market has become highly competitive that is
creating difficulties for small business to expand market. In addition, there are several other
factors such as political, economical, social and more which also affect global business
environment. So, organizations need to bring unique approaches as well as strategies in order to
explore business in international market place.
P2) Discuss threats and opportunities faced by SME in competitive global environment
Opportunities
Business expansion: It refers to enlarge business functions, operations in another
countries at global market place (Kaur, Kaur and Singh, 2017) . It is considered as one of the
greatest opportunity for SME that further help to target local as well as international audience.
With this, managers of DCS group can enhance business presence in international market.
Increase in profit: Main aim of each and every business is to earn substantial amount of
profit. Here, global business environment provides this opportunity to small business to earn
higher amount of profit that will lead business towards higher growth and success. In addition, it
will also provide an edge to company at competitive market place.
Threats:
Business interruption: It is analyzed that in global business there are ample of
competitors of company are present in market (Bah and Azam, 2017) . So, SME has a great