Tapping into New and International Markets

Unit 43 - Tapping into
New and International
Markets

Table of Contents
Table of Contents.............................................................................................................................1
INTRODUCTION...........................................................................................................................2
Task 1...............................................................................................................................................2
P1 Explanation of global business environment in which small and entrepreneurial businesses
operate..........................................................................................................................................2
M1 Evidence based Analysis of Global Business Environment.................................................4
P2 Analyse of threats and opportunities that face SMEs to increasingly competitive global
environment.................................................................................................................................4
M2 Critical analysis of implication of threats and opportunity...................................................5
Task 2...............................................................................................................................................5
P3 Determine the advantages of international trading blocs and agreements.............................5
P4 Explanation of various tariff and non-tariff barriers that exist in the international trading
environment.................................................................................................................................6
M3 Evaluate the advantages of international trading blocs and agreements and their
implications for SMEs.................................................................................................................7
Task 3...............................................................................................................................................8
P5 Determine the advantages and disadvantages of importing and exporting and how to secure
a deal............................................................................................................................................8
P6 Explanation of differences between merchandise and service imports and exports..............8
M4 Apply the appropriate import and export process to an organisation and make...................9
Task 4.............................................................................................................................................10
P7 Evaluate the various methods in which SMEs can tap into international markets...............10
P8 Compare and contrast the various ways SMEs can tap into international markets..............11
SMES’s can tap in to international market for this comparison and contrast are as defied by
stating advantages and disadvantages of entering methods:......................................................11
M5 different methods can be used by SME’s to enter in to market..........................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15
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INTRODUCTION
Tapping in to international market means to enter in to a new market out of the national boarder
that can help to run a business. In business environment different organisations are running that
wants to integrate and connect with global economies and nation by growing opportunities.
Growing and developing technologies along with reducing and liberalizing trade barriers and
regulation makes it harder and more affordable for companies to grow internationally and work
on the international market (Yeung, 2017). To understand about this River Island company has
been selected that is London headquarter high street fashion brand, that is operating business in
worldwide market. Thus organisation is set up in 1948, by Bernard Lewis and his brother in
London. This is privately owned company that deals in fashion, textiles and clothing helps to
organise the business activities effectively. This report covers opportunities and threats for
organisation exposed to increasing global environment, advantages of trading blocs and
importing and exporting process that practicalities involved. Moreover, this involves different
ways where SME can tap into international markets.
Task 1
P1 Explanation of global business environment in which small and entrepreneurial businesses
operate.
Small businesses are those business which are operated at small area and level in order
fill people’s needs and wants that helps to make feel them happy and satisfied. All organisations
whether small, entrepreneurship and larger companies should have courage to take risk and
increase their organisational performance.
River Island is a fashion, clothing and textile industry that is operating business in UK
and near by nation after understanding their needs that help to provide kind of products and
services. Quite recently, such organisation has decided to expand its business by entering in to
international market. So, to expand business and growing continuously River Island is expanding
business into new market that is Europe particularly in Malta that will help to increase business
activities and profitability prominently.
Globalisation - Globalization is a process of integration between people, companies and
different nation which are useful in international trade and added to information technology.
Every business is focusing on their activities which they want to increase in out of the border.
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This process has effect on culture, political system and economic development which helps to
run a business all over the world.
Why to go international - The reason to go international is business concern wants to
increase their operations by entering into international market and generate more revenue. This is
important for all people to have market knowledge and people needs when a business is going to
run outside. This can help to increase the business activities by exapnding functions. Small
business has opportunitis to expand their business in international country so it can ngrow and
increase the brand image. Global business environment refers as business process that helps to
run business in international market. To enter in to international market there is need to evaluate
the various factors such as political, environmental, social, economical, technological and legal
that are important to run business and increase business profitability. River Island is expanding
business in to international market by analysing all factors and evaluating them. This helps to
increase the market growth by adopting technology and competition in global market.
International rules to expand business-
 The knowledge about international trade and political system.
 Availability of resources, capital and human resource which can help to maintain. A
business effectively.
 WTO and principles of good standardization, regulatory and conformity assessment
 Practices
 The relationship between national legal system and international that helps to run a
business out of the national border.
 Good relation with people who are living outside the country.
Small and entrepreneurial business operates in global business environment such as
Increasing customers – Small business are providing products in domestic area by
involving customers. It operate business at global level by porving better quality of products and
services by expanding business and having knowledge of marketing. For instance, River Island is
running its business by increasing number of customers globally that helps to increase revenues
and resources.
Brand expansion – The amother reason of entrepreneurs is to expand their brand in
competitive environment by promotion and advertising thta can help to attracts customers and
increase profitability. The mnager of River Island company is expnading its brand by using
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