Tapping into New and International Markets

Tapping into New and
International Markets

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Contribution of small and entrepreneurial businesses in global economy......................3
P2 Threats and opportunities face by organisation in prevailing competitive market ..........4
TASK 2............................................................................................................................................6
P3 Determine and analyse the benefits of global commerce blocs and concords..................6
P4 Explain various traffic and non traffic barriers that exist in international trading
environments..........................................................................................................................7
SECTION 3.....................................................................................................................................8
P5 Advantages and disadvantages of import and export including a secure deal..................8
P6 Distinction between service imports and exports as well as merchandise.......................9
SECTION 4...................................................................................................................................10
P7 Analysing Various methods in which SME can tap into international markets.............10
Recommendation .................................................................................................................12
P8 Compare and contrast various modes of SME can tap into international markets, assess
pros and cons of each method..............................................................................................12
CONCLUSION.............................................................................................................................14
REFERENCES..............................................................................................................................15
Books and journals...............................................................................................................15
Online...................................................................................................................................16
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·INTRODUCTION
Tapping into the new international market is the best process or opportunity for the
SME company's. Through this organisation can explore their businesses and growth effectively
by performing at international business activities with the aid of different tools and techniques
of international market development. Organisation can meet the effective growth and achieve
huge profit by satisfying the international customers demand. The Furniture Practice Limited is
the Small enterprise located in the London. Total number of the employees in this company is
72, that is having four branches of company, it deals with the wholesale services of furniture
goods. In this report is including the analysis of international business environment along with
the consideration of environmental force and its impact. There is the consideration of non-tariff
and tariff barriers along with the study of import and export advantages, disadvantages in terms
of services and merchandising. Different techniques and process of international market access
is also going to be evaluated in this report in context SME.
·TASK 1
· P1 Contribution of small and entrepreneurial businesses in global economy
SME are said to be those companies which run over a comparatively small platform than
large organisations. Such enterprises require lesser amount of capital to run their operations to
establish profits. According to world trade organization, there are over 90% of business
population being presented by SME sector which provides 50-60% employment and total of
55% of GDP development. Hence SMEs are representing maximum amount of global economy
(Arnold, 2019).
The Furniture Practice Limited is one of leading furniture based organisation which
provides services to architects as well as designers in relation to corporate customers. It believes
in regular innovation and motivation to staff members to increase its productivity. Though the
organisation is operating in UK and not worldwide, it seeks to tap in the international market to
gain real profitability. Globalisation is the process of interconnection between between different
nation which offers the opportunities of trading and cultural exchange, it offers the opportunity
to increase the products of goods and services along with the development of various small scale
organisation at international level and through this employment and economy of the
interconnected organisation grow.

Importance of going international
there are the various factors which represent the importance of developing into the
international market. Such as the positive effect of international development in the form of
increasing revenue. Developing new customers, opportunities of diversification, company can
achieve competitive edges.
Different way to get enter into the global business
Company can analyse and adopt different ways of international penetration as there are
the various method's to go international such as the exporting, partnership, joint ventures,
piggybacking, licensing and franchising. It depend on the type of organisation size of
organisation and their financials ability to chose on of them. The Furniture Practice Limited can
prefer direct exporting and licensing in order to step into the international market.
Rules and regulation of globalisation
Their are the various laws and legislation for globalisation such as global environment
sustainability management, according to which in environment have to be protected from the
bad effects of the organisation practices and in other hand there are some other rules and
regulation w facilitate and prevent the trading that is the trading blocs and trading barriers.
Along with the other employee's law which influence the global development of the
organisation.
l壱P2 Threats and opportunities face by organisation in prevailing competitive market
Most of the organisations operating worldwide are small in size, but their contribution in
overall development of economy is massive (Singh and Srivastava, 2018). They might face
threats as well as get opportunities in order to increase their existing market. It can improvise its
operations by providing better living standards and improvisation in employment rate for overall
development of organisation.
Opportunities for SMEs: In SME segment there are various opportunities in the
prevailing new market. These opportunities can be new favourable environment policies, new
technology, economic support, e-commerce utilization, increased cash inflows and so on. The
Furniture Practice Limited can grab these opportunities by implementing these elements which
will be significant for company's overall growth. These factors plays vital role in creating
potential revenue opportunities by sticking with the prevailing market changes. Selected