Unit 43 Tapping into New and International Markets

UNIT 43 TAPPING INTO
NEW AND
INTERNATIONAL
MARKETS

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................1
Section-1..........................................................................................................................................1
Evaluation of the way SME are able to take advantages of international opportunities and
overcome barriers...................................................................................................................1
Various threat and opportunities available for company in globalised environment.............2
Advantages of international trading blocs and agreements....................................................3
Tariff and non tariff barriers existing in international environment.......................................4
Section 2...........................................................................................................................................5
Advantages and Disadvantages of importing and exporting and securing deal.....................5
Difference between merchandise and service imports and exports........................................6
Section 3...........................................................................................................................................7
Methods to tap into international market................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
International market is geographical region where particular organization operates its
business in order to earn more market share and profitability. Small medium enterprise are firm
that have employees around 50-250 that are continuously working for growth and operation of
business in international market. Sykes Holiday cottage is an enterprise that has a portfolio of
11000 properties across Ireland and UK that emphasized on providing better services to
customers so that end objectives can be achieved. It has covered essential information related to
several threats and opportunities business has to suffered while exposed to global environment.
Moreover, consist information related to import and export process used by organization and its
advantages and disadvantages. At last, it has highlighted points related to method related to SME
with pros and cons related to international market.
Section-1
Evaluation of the way SME are able to take advantages of international opportunities and
overcome barriers
Global business environment can be termed as environment of different foreign countries
in which company operates in order to earn maximum profitability and market share. Global
business environment is dynamic in nature as there are various changes in external environment
that directly impact on business operation. Likewise, social, technological, political and
economical that has both positive and negative effects on company (Walkshäusl, Weißofner and
Wessels, 2019). Therefore, the way SME that is Sykes Holiday cottage has taken advantages of
global opportunities and overcome barriers can be illustrated through use of Pest model such as:
Political Factor: It specifies about policies, rules and regulation that are made by government
related to business so that no harm can be caused to others in any circumstance. Likewise, Sykes
Holiday cottage is operating in UK and government has implemented Brexit policies that has
caused loss to company. As it has decreased movement of people therefore company in order to
cope up with threat has make use of digital technologies to generate awareness among people
that are living in different parts of world.
Economic Factor: Recently, UK economy is suffering from economic slowdown due to
uncertain political condition therefore people are less interested to make unnecessary expenses
resulting in decreasing overall sales. On contrary, there are various people that are interested to
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come UK in order to have fun and entertainment so it has provided them opportunities to expand
business by meeting their respective expectancy (Du and Jaw, 2018).
Social Factor: It can be stated that taste and preferences of people keep on changing so
company in order to sustain needs to meet requirement of customer's beyond their expectancy.
Such as nowadays, most of the people like to spend time out of their home or move to several
destinations to have fun and leisure time. Therefore, Sykes Holiday cottage by seeing social
factor as opportunities has planned to provide information to people about qualitative services
provided by company to fulfil their needs.
Technology Factor: At last it can be stated that Sykes Holiday cottage is Small medium
enterprise in United Kingdom so it has limited financial resources to invested in innovative
technologies for better outcome. Such as the company in order to make the best use of
opportunities has emphasized on digital marketing that contribute in generating awareness
among maximum number of individuals.
Various threat and opportunities available for company in globalised environment
Global environment is wide in nature as there are numerous factors that keeps on
changing and directly impacting on growth and operation of business. Threat is term that
explained about the things that acts as a threat to an individual while opportunities is alternative
options that could yield maximum benefits to company (Meier, 2019). Therefore, various threat
and opportunities available for Sykes Holiday cottage in global environment can be explained
below as:
Opportunities Threats
 Digital marketing: The company have
opportunities to expand its business by
making use of digital marketing. As
there are various individuals that spend
lot of their time in playing games,
watching videos and gathering
information through social platform.
 Global expansion: Moreover it can be
illustrated that globalization has
provided opportunities to Sykes
On contrary, it can be stated that there are
various threat that company is facing in recent
scenario such as:
Covid-19: It can be stated that it is an
pandemic and uncertain situation that has acts
as a threat for Sykes Holiday cottage.
Therefore, company in order to promote its
business operation has focused on ensuring
safety of people by regularly cleaning of
rooms, sanitizing them. Thus, all these helps
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