Unit 43: Tapping into New and International Markets

Tapping into New and
International Markets

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1 .................................................................................................................................................1
P1). The global business environment in which small and entrepreneurial businesses Operate:
.....................................................................................................................................................1
P2).The threats and opportunities that face SMEs in an increasingly competitive global
environment.................................................................................................................................2
LO2 .................................................................................................................................................4
P3).The advantages of international trading blocks and agreements..........................................4
P4).The various tariff and non-tariff barriers that exist in the international trading environment
.....................................................................................................................................................4
LO3..................................................................................................................................................6
P5).The advantages and disadvantages of importing and exporting:..........................................6
P6).Differences between merchandise and service imports and exports ...................................7
LO4..................................................................................................................................................7
P7).The various methods in which SMEs can enter into international markets.........................7
Exporting.....................................................................................................................................8
P8)Compare and contrast the various ways SMEs can enter .....................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
An international market is a geographical area or region which relates with business
conduct by the company in order to attain maximum profits in business through expanding it in
another countries(Azad, 2020) . Tapping into international market defines the value of company
through doing business outside the territorial boundaries of home country. Global platform will
setup the business performances through attaining the objective of strategic planning,price and
promotion and by directing the flow of goods and services to their consumers by catering them in
other countries too. By expansion of business globally company will have to follow the external
forces considered with laws and regulation to demand value of other countries peoples.
Approaching into international market by small business requires an efforts which relates with
strategic planning on threats and opportunities which are occur during international business
operation. The below report is based on Oscar technology which deals in excellent recruitment
services It industries, digital sector and technology by working with other businesses to fulfil the
requirement needs. This report is considered with global business environment relates with Oscar
Technology, threats and opportunities that faces by Oscar technology, various methods uses by
SME's to enter into international market.
LO1
P1). The global business environment in which small and entrepreneurial businesses Operate:
Oscar technology deals in service of recruiting for the industries like IT technology,
digital sectors which relate with online businesses and working with other business to fulfil the
requirement of human resource(Batalhone and Clement, 2018). They are working with 70
employees globally. They considered with specialist teams which are continuously working on
recruiting best talents for the required companies and dealings in careers of technology, energy
and construction peoples. The mission of this company is to be internationally known as a trusted
partner for recruiting activities. They are specialised in working through delivering the best in
class recruitment services and solution to each and every person.
The term relates with general environment which deals in diversify environment in which
company operates their business. Includes with politics, technology, culture and the economic
status of the global environment and geographic locations. The global environment relates with
what kind of government policies are operating in other countries includes taxation policies and
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rules and laws consideration. The risks and benefits have to be properly analysed by the small
business. Small scale business who are willing to expand their business across the countries
should know about global environment in which they are going to serve. In the context of
company like Oscar technology they have to study properly about the external forces which will
impact the organisation in long run, changes that occur in global businesses will either provide
benefit or losses in their operation work. To analysis this global business environment company
will go for model like PESTEL which defines external impact on the company through political,
economical, Social, technological,environmental and legal. Entrepreneurship environment works
on various situations within which size of the business matters like large, small and medium.
Working in global platform by small business will needs to take care about the operations in
relation to its specialist teams who are regularly working on finding the best suitable candidates
for companies like IT and digital platform organisation, Oscar have experienced extreme growth
and enhance themselves as a specialist in finding the talents through technologies industries.
In relation to the company like Oscar technology they have to depend upon the external
factor which are moving globally. In course of doing operations is that providing with best
recruitment service through properly working on the number of factor which includes cultures,
beliefs, political environment in that particular country. The objective of small business is to
determine the risk and probability of success into different market globally.
P2).The threats and opportunities that face SMEs in an increasingly competitive global
environment
In small business company when they are operating internationally in relation to their
businesses lots of issues are considered while handling globally is that external forces(Brace,
2018). Which are occurred in the form of language and cultural obstacles, different legal
landscapes, communication and technology with environmental concern. In the context of Oscar
technology they are inducing with several threats which are basically impact the businesses in
their long run is that: when they will operate into new market globally in relation to their
operation of recruiting services they have to face problems like:
Other language and cultures
This will considered to be the common barrier which is arises when the small business enter into
market which have totally different culture and languages. Small businesses finds it difficult to
enter into this market in relation to the different country. In the context of Oscar technology they
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are dealing in services of recruiting the peoples for the particular job in relation to IT industries
and digital companies. Organisation have to take time to learn different culture and local
language. Recruitment needs a proper process of communication so due to their operation work
they have to deal with problems in setting up their services in china and other different countries.
The legal Landscape
when small business crosses borders, they have to deal with many laws, tax rules and numbers of
regulations, and trade related policies. They have to follow the rules according to laws of
particular country(Gunderson, Magnan and Baciu, 2018). In the context of Oscar technology
they have to rely on the basic rules of other countries in relation to imply their services.
Communication and technology
If Oscar technology operates their businesses with particular communication and channel of
technology in recruiting the people for their required company position. They have to properly
implement the same program in other countries too. Because change in technological aspect will
going to be more threatening for them in relation of declining in sales and profitability.
Opportunities of small business in operating under the global competitive environment is that:
New market
By working in the environment globally. Business like Oscar technology will going to achieve
the progress in their operation through introducing with new services into new market segment.
By catering the large fresh peoples around the different countries this recruitment service
company will surely going take this advantage.
Access to talents
Another advantage of going globally through small business operation to access new talents from
different countries as this small business works on the principle of recruiting candidates for the
particular company job profile. IT industry will going to benefits this organisation in providing
with requirement and they will induce with finding best talents.
Competitive advantage
Small businesses will going to attain competitive advantage over their large business competitors
by adopting the value of introducing new or unique product and services. In the context of
company like Oscar technology they will come up with new ways of recruiting fresh talents, this
will leads to generate competitive value for them.
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LO2
P3).The advantages of international trading blocks and agreements
In the context of company Oscar technology they are inducing with activities which operates on
recruiting the best suitable people from the business location ion which they will going to work
soon(Hamilton-Hart and Wai-chung Yeung, 2019). So by trading blocks and agreement with
different countries through the process of business operation here are some of the advantages of
trading blocks and trade agreements formulations are as follows:
 Tariff removal from the country will leads to provide with trade creation, which leads to
attain the lower prices on the particular services on which organisation will work for their
consumers. Enhance the ability of exporter to operate their business in most efficient
manner, this will considered with opportunity for this Oscar technology.
 By increase in the trade aspect will enhance and increase the specialisation factor for the
business like Oscar technology, which will give benefits of economies of scale. By
enhancing the trade value, organisation will induce with specialised activities relates with
talent hunting.
 The approach of catchup effects, large numbers of countries are joining a rich trading
block which can benefit form their inward induced investment and will increases the
trade opportunities. Countries relates with eastern Europe made considerable progress in
catching up with average income.
 Will gives the small businesses countries an opportunities in global trade agreement.
Oscar technology will adopt the advantage of trade agreement.
 Increased in competition are going to be more competitive by removal of tariffs will
create greater choices for consumers.
P4).The various tariff and non-tariff barriers that exist in the international trading environment
These both barriers are related with specific restriction on the movement of products and
services between the countries, this aspects are imposed by the governments of different
countries on the basis of their international trading policies(Khan and Lew, 2018). In the context
of company like Oscar technology when they will adopt their operation into different countries
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they have to take care about the barriers which relates with tariff and non-tariffs. Number of
restrictive barriers in relation to these small business activities are as follows:
Tariffs Barriers
This restriction is based on custom duty or tax imposed on certain products that will run across
the borders, hence its one of the most common barrier used to control import and export. In the
context of Oscar technology they have to follow tariffs rules which are performing in their
operations such as:
Import tariff: It's the custom duty which is imposed through importing country in relation to the
tax imposed on goods imported. This barriers is imposed with the motive to generate business
revenue through this process and protect the domestic industries. So Oscar technologies have to
initiate in other countries through understanding the tariffs values in other country as well.
Export tariffs: This duty is imposed on that goods which are operate by exporting country is
that by imposed taxes on their exporting products and services. If Oscar will going to attain their
services approach they will induce with export tariffs activities.
Transit duty:This duty are imposed on that commodity which are originate in one country,
crosses another country and import at their destination is that on another country(Kumar and
Srivastava, 2019). Transit duties are imposed by country through which the goods will pass or
cross. It will going to increased in cost of products and reduce in price of commodity traded.
Non-tariffs barriers
These are concerns with non-taxation restrictions such as government regulation and related
policies, overseas trade which effects by the government procedures. This will be either in the
form of quotas. Subsidies etc. In the context of Oscar technology they have to follows non-tariffs
operations too, by building the process of small business activities in another countries.
Quotes:It considered with numerical limit on goods quantity that can be exported and imported
within a specific period of time. This quantity may states in the license of the firm, if importer
will pay more than their demanding products or services they have to pay extra price value for it.
Subsidies: The payment made by government to domestic produce who are having the process
of producing products domestically so that they will compete against foreign products or
services. It will involve with cash grant, tax holiday, government participation in equity. It assist
the local firm to minimize the cost and will gain control over the market. In the context of Oscar
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technology will going to attain the value of providing with subsidies in accordance to the
services of recruiting policies.
LO3
P5).The advantages and disadvantages of importing and exporting:
Import and Export are means of foreign trade (McCormick and Somaya, 2020). This
operations deals in goods and services, which are having the aspects of import and export and the
balance of foreign trade. Import and export relates with particular goods and services which are
going to make trade internationally between two or more countries. An objective of import and
export is to formulate goods and services across the country through import, export policies.
Exporting refers to selling goods and services from home country to foreign country, whereas
importing refers to purchase of products and services from foreign bring them in home nation. In
context of Oscar technology if they will going to enter into globalised market they have to work
on their operations by maintaining the value of trading policies by making changes if needed so
here are the advantages and limitations are as follows:
Advantages of Import and Export:
 It is considered to be the simplest way of enter into the global trades, by import and
export approach it will generate large number of employment opportunities for required
people. In the context of Oscar technology they will provide with huge impact by
recruiting job opportunities.
 By having the approach of import and export they require with less investment in terms
of money and time by comparing it with other methods of entering through global trade.
 Its relatively less riskier as compared to other different routes of entering into market.
 By adopting import and export, Oscar technology will going to attain the best
technologies which is available and best services as well.
Disadvantages of Import and Export:
 In import and export process lot of extra packaging, transportation, insurance cost which
build the cost of items in total.
 Business like Oscar technology if they are not careful, then they will loose grip on
domestic market and the customers in which they are dealing like IT businesses.
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 Obtaining licenses and document in relation to the foreign trade is quite frustrating and
difficult to operate.
P6).Differences between merchandise and service imports and exports
Merchandise export are tangible products which relates with goods that is sent out of a country.
Merchandise import relates with goods which will going to brought into country(Milburn and
Guertin-Martin, 2020). In context of Oscar technology they will provides with best suited
services of providing with recruitment facilities within the country and to expand their business
they have to rely with their services itself. Merchandise export and import are relatively
important aspect which have to be followed by each and every business who relates with its
products services that is merchandise goods, tangible in nature.
Service import and export generates Non- product international earnings without dealing in
products value. Here the company is receiving payments is relates with service export. The
individual or company paying is making a service import. In the context of Oscar technologies
they are inducing in services like recruiting the capable candidate in relation to fill the
requirement of the companies is that IT industry, digital platform etc. They are more focused on
their service value which will become a important source for the company like Oscar as they will
operates globally by making relationships with different companies across the countries.
Merchandise import and export requires less time as compared to the service import and export.
LO4
P7).The various methods in which SMEs can enter into international markets
Small medium enterprise relates with small operations having an ability to implement their
businesses processes in relation to expand their business(Sheth, 2020). Oscar technology deals in
outstanding digital and technological recruitment services. They have a strong long standing with
candidates and companies clients by providing with best suitable jobs in accordance with
requirement which considered with filling tech and digital roles, and with focusing on who will
be the best candidates to fill this requirement. They are basically having the services of recruiting
the candidates on the basis of company needs in human resource. Oscar technology by adopting
this methods to enter into international market will going to attain the business operation
globally:
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Exporting
It is basically the process of providing goods and services as a direct sale in another country.
This is considered to be the best-known method by which small business like Oscar technology
will enter into foreign market by covering the lower risk. It will also consists with cost-effective
process as this recruitment service company will not need to invest in production facilities in
their chosen company as they are already dealing in services oriented works. Services will export
through implementing the channel of operate their employees by appoint them in different
countries for their operations(Sinha and Sheth, 2018).
Licensing
By adopting the method of licensing which allows another company to use your property by
targeting the country in which they want to operate their operation. Property involves with patent
s, trademark etc. The licensee will pay a fee in order to make their patent in use for business
operation. In the context of Oscar technology they are relatively working as an services provider
by finding the best suitable candidate for other company so they can adopt the value of taking
licensing to generate business.
Joint venture
A joint venture relates with two companies who are establishing a jointly own business, here of
the owner are connected with local market to their foreign market. By providing with new
business with a management team and by sharing the control of operations. Company like Oscar
technology can go for this process by attaining all the agreement considered in making this
process.
P8)Compare and contrast the various ways SMEs can enter
Small medium businesses are rely on the objective to enhance the possibilities of entering into
the market through methods of exporting, licensing and joint venture (Tidd and Bessant, 2020).
They are going to be important sources in providing them strength to enter into the international
market. Exporting will definitely the first preference by any company to induce in this activity
properly by providing the services to other country. In the context of company like Oscar
technology they are handling the position of providing quality services to their clients and to
particular company. In comparison with joint venture, exporting will assist them to provide with
appropriate services in another country. While joint venture process will going to assist the
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company in making them stable in long run by giving them with platform to run in local market ,
by working on particular profits in the operation.
Some of the entry strategies have been discussed below:
SME exports and imports
The frequency and rate of outsourcing are indicated by a fixed dimension and, as mentioned
above, SMEs are, all in all, subversion in world trade, despite mounting evidence of SME
globalization for the OECD and non-OECD economies. While they may represent up to 99% of
a nation's efforts, only one in five SMEs in OECD countries derive between 10% and 40% of
their turnover from cross-border businesses. In general, SMEs are estimated to contribute
between 25% and 35% of global manufacturing tariffs, although there can be large variations
between economies and by region.
SME participation in international alliances and networks
The new and progressive wave of modern reconstruction around the world, coupled with
mechanical advances (especially in ICT) has been a key factor in the rapid development of major
transversal disasters, consolidation and construction and between administration of secure
systems. Opportunities have emerged for SMEs to be: I) supporters in vital trade unions around
the world; ii) members or focus in consolidation and transversal construction; iii) suppliers
dedicated to global efforts; iv) individuals from global prevention groups; and v) members of
electronic organizations. For SMEs, such activities can provide benefits including a range of
benefits including access to funds, accumulated research efforts, article promotion, broader
channels of behaviour and so on.
SMEs and Foreign Direct Investments (FDI)
Non-family direct profiling (FDI) may be another important mechanism for SME convergence,
although they are mostly prone to occur in the future (as a result of the fruitful experience gained
in trade and possibly disaster formation), although some groups of youth innovation are exempt.
Very few SMEs export abroad and a new view showed that only 3% of SMEs in Europe have
supporters, subsidiaries or joint ventures in different countries.
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CONCLUSION
It has been concluded from the above report is that every small business organisation has
to make sure about the strategies regarding their intention to enter into global business. They
have to work related to study the global environment what sort of external forces will going to
impact their operation. The threats and opportunities have to be clearly determine by the small-
medium enterprise by doing internal checks on their operations. Small businesses have to
properly go through with the agreements which are concern with international trading. By
evaluating the various approaches through which small business will enter into the international
market is that by establishing connections with larger organisation and by partnership with them.
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REFERENCES
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Tidd, J. and Bessant, J.R., 2020.Managing innovation: integrating technological, market and
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