Tapping into New and International Markets

Unit 43 - Tapping into New
and International Markets

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1Explain the global business environment in which small and entrepreneurial businesses
operate.........................................................................................................................................1
P2 Analyse the threats and opportunities that face SMEs in an increasingly competitive global
environment.................................................................................................................................2
P3 Determine and analyse the advantages of international trading blocs and agreements.........3
P4 Explain the various tariff and non-tariff barriers that exist in the international trading
environment.................................................................................................................................4
P5 Determine the advantages and disadvantages of importing and exporting and how to secure
a deal...........................................................................................................................................5
Advantages of Importing ............................................................................................................6
P7 Evaluate the various methods in which SMEs can tap into international markets................7
P8 Compare and contrast the various ways SMEs can tap into international markets, assessing
the pros and cons of each method...............................................................................................7
CONCLUSION................................................................................................................................9

INTRODUCTION
In the globalised era, organisations are aiming towards continuous expansion of their
business at international platforms in order to gain access and advancements of internal market
opportunities. International process allows companies to ensure higher profitability and growth
within due course of time (Azad, 2020). Organisations by taking advantage of different types of
expansion methods can emerge out as profitable business entity while assuring large base of
consumers attention. It lead companies to generate higher revenues, business growth and
profitable incomes. Present report has been conducted on Ella's Kitchen which is a small scale
company engaging in the business operations of making organic toddler and baby food with
natural ingredients and packaging that appeal attention of little ones. Company was established
in the year 2004 by Paul Lindley (About Ella's Kitchen (Brands) Ltd. 2020). Ella's Kitchen is
performing their business operations with 70 employees those who are working together to fulfil
company main mission which is to offer high quality baby food.
In this report formative discussions has been conducted in global business environment
within within small and entrepreneurial businesses in conducting their business operations.
Along with this, report includes opportunities as well as threats that are being facing by SMEs in
competitive global environment, benefits of international trading blocs and agreements and
different non-tariff and tarriff barriers existing in international trading environment. Along with
this, difference among service importance, merchandise and exports are also included in present
report.
LO1
P1Explain the global business environment in which small and entrepreneurial businesses
operate
UK is being selected as the country, as in this nation large number of SMEs are
performing their business operations. This country is offering wide range of benefits as well as
growth opportunities to SMEs through which entities performing in this sector can assure their
long term growth and profitability (Krefting and Prince, 2020). It has been evaluated that, United
Kingdom government is offering many business opportunities to this sector, as SMEs are major
source of country revenue generation which also lead country to ensure higher GDP. This has
been determined that SMEs offers wide range of job opportunities to local individuals within
1

country which is also increasing their standard of living. In addition to this, companies those who
are operating their business role in this sector are also offering high quality products and services
to customers in affordable rates which is enhancing their level of satisfaction and trust towards
SMEs. With having quite stable economic conditions United Kingdom acts as great platform for
SMEs to perform their business operations while assuring higher profitability.
Along with this, it has been determined that due to less political interruptions and
consistent rules and regulations SMEs can conduct their activities with less complexities. It has
been identified that SMEs are contributing about 80% in country gross domestic production
(Hollinshead, 2020). They are also acting as major source through which many local and
medium scale individuals can assure their regular income. SMEs are offering individuals with
wide range of alternatives through which they can have their regular income. SMEs are
backbone of UK economic stability and growth which can also been seen by taking example of
BREXIT. In this situation, SMEs acted as major strength for country economic growth. Thus,
there is significant importance of SMEs and entrepreneurial businesses in UK market through
which entities operating their business services in this sector can gain number of advantages.
Threats and opportunities that face SMEs in an increasingly competitive global environment
It has been evaluated that due to increase in competition organisations specially those
who are conducting their business services in small scale industry is facing many threats in terms
of lack of financing, lack of access to management and technology and many rules and
regulations enforced by organisations. However, it has been identified that SME’s are vital part
of UK economy thus in order to support them government of country offered many tax relations,
flexible policies and other relieving options in order to support them in effective manner. With
the help of this opportunity SME’s can ensure more growth and sustainable business operations.
2