Tapping into New and International Markets

Tapping into New and
International Markets

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
LO 1.................................................................................................................................................4
P 1 Global business environment................................................................................................4
P 2 Threats and opportunities that SMEs face in the competitive market...................................5
LO2..................................................................................................................................................6
P3 Determine and analyse the advantage of international trading blocs and agreements...........6
P4 Explain the various tariff and non-tariff barriers that presented in the international trading
environment.................................................................................................................................7
P5 Determine the advantage and disadvantage of importing and exporting and how to secure
the deal.........................................................................................................................................8
P6 Explain the difference between merchandise and service import and export......................10
LO 4...............................................................................................................................................11
P 7 Methods for SMEs to tap in international market...............................................................11
P 8 Compare and contrast the various ways SMEs can tap into international markets.............12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
There are a lot of risks and measures which have to be taken for making the company
gets international so that there is going to be better sales. The customers have to be made aware
of the products and services and to have a strong portfolio organization must follow policies,
tariff and other factors which are going to make functioning in international market efficient and
effective. Oak & Cash Carry is a private organization which a non-specialised in tobacco,
beverages and wholesale of food. Company is located in Oxfordshire, United Kingdom and was
incorporation on 2000. Company is micro sized with 10 employees and a turnover of under £2
million. In report there is a discussion on Global business environment, threats, opportunities,
advantages and disadvantages of trading bloc and importing and exporting and importing. There
is also going to be a discussion on methods for SME tap into international market and comparing
the different methods and recommend best for company.
LO 1
P 1 Global business environment
The environment is also going to differ from one place to another and connectivity as
well for which the political parties put a lot of policies like trading taxes, etc which have to be
maintained by the organization so that there is going to be better functioning (4 considerations
before taking your business international, 2020). There is a lot of impact of corruption in the
business which is not going to be good and the labour laws also have to be maintained so that the
company will be able to operate in the market effectively. There are a lot of factors which is
going to have an influence on the business when the businesses want to expand in the market.
Oak & Cash Carry Ltd will also find it very difficult for working since the organization will not
have a lot of international marketing, policies, trade and other political regulations which can
make the company have limited sales. For businesses in the market, it is very essential for them
to have a strong image and portfolio for themselves in the market which is going to help the
organization to expand themselves easily.
Lifestyle of the customers is different from one another so that there is going to be good
functioning and there has to be good improvement according to this factor so that the customers

are going to be loyal (Kearney, 2018). There are anti discrimination laws which the SME will
have to follow so that the company can have a strong reputation in the market which is going to
make the organization have better performance in the market. SME will have to find employees
when they shift and having high unemployment rate in the country is going to make the company
have higher economic factor which is going to be positive. The culture, beliefs, values are going
to differ in all the countries and they have to be maintained so that the organization can make the
customers have a better experience and become loyal as well.
P 2 Threats and opportunities that SMEs face in the competitive market
When the organization is ready to expand themselves the company will have to analyse
opportunities and threats for themselves which is going to help with competing with competitors
in the market. The following report is going to discuss opportunities and threats which Oak &
Cash Carry Ltd are going to face.
 Threats
The threat for the SMEs in the market is going to be that they are not going to have a lot of
experience to be able to expand them even after they have been able to have a strong base and
portfolio for themselves in the market. There is uncertainty in the political power of the countries
as well which can make the company have a lot of investment on the strategies and making the
working slower and profitability reduce. Employees will not want to work with small businesses
since there is going to be an unstable future for them therefore Oak & Cash Carry Ltd is going to
have a difficult time to be able to operate effectively. There are a lot of large retailers which have
expanded themselves internationally and competing with them is going to be challenging and the
organization will have to find plans and measures to be able to compete (Gammeltoft and
Hobdari, 2017). Investment is not going to be high therefore the information technology,
qualified human resource, exchange rates and other important factors will not be able to operate
effectively.
 Opportunities
This is going to make the business know more and improve accordingly so that there is going
to be higher sales and the satisfaction of the customers is going to be present which is good for
loyalty. Networking for the SME is going to be excellent which is going to make the functioning