Tapping into New and International Markets

This document discusses the opportunities and challenges of expanding small businesses in international markets. It covers topics such as the global business environment, trading blocs, import-export procedures, and methods for SMEs to enter global markets.

Tapping into New and
International Markets

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Description of global business concern for the procedure of small and enterprising institution 3
Provide evidence based analysis of the global business environment in which small and
entrepreneurial businesses operate using specific examples..................................................4
Explanation of danger and possibility that is face by SME's in exploding competitive global
situation..................................................................................................................................5
Critically evaluate and show of menace and possibility faced by SMEs...............................6
TASK 2............................................................................................................................................7
Benefits of global trading blocs and agreements....................................................................7
Describe the several tariff and non-tariff hurdles that occur in global market area...............8
Measure the benefits of global trading blocs and concord...................................................10
TASK 3..........................................................................................................................................10
Benefits and drawbacks of importation and exportation procedure and how a deal can be
barred....................................................................................................................................10
Describe comparison among merchandise and service imports and exports.......................12
Apply appropriate import and export procedure by offering recommendations..................13
TASK 4..........................................................................................................................................13
Several ways in which SMEs can take entry into global markets........................................13
Comparison and contrast the several methods by which SMEs can take entry into global
market, assessing the benefits and drawbacks of every method..........................................14
Analysis of several methods which is opted by SMEs and by providing appropriate
recommendations..................................................................................................................15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Market is referred as an area that undertake purchasers and vendors simultaneously under
few conditions and two or more than organizations are involved to conversation suitable
merchandise and services. For this, market can be the online or physical outlet as in online there
is no direct contact among buyers and sellers (Dwyer and Vongvisouk, 2019). In this
international market undertake the geographical market that exist at the external side of
international borders. The assignment is supported on small business concern and their overall
enlargement in other areas that helps in identifying the overall global business situation and also
analyzeanalyse the opportunities and challenges for the growing of institution. To carry forward
this report, Ella's Kitchen is considered which deals in organic baby food that is sold in
supermarkets and founded in 2006. Company also has 30% share for the baby food sector.
Company has around 62 employees working for them and has the global turnover of
approximately $121 million. Moreover, it also leads to explain the suitable benefits of trading
blocs agreements and define various duty and non-tariff barriers which are present in global
marketplace. Apart from this, comparison among merchandise and services imports are also
discussed that leads to evaluate various methods for small business concern into global
marketplace.
TASK 1
Description of global business concern for the procedure of small and enterprising institution
Worldwide business situation undertakes the overall environment of several countries
that leads to impact the judgement making of institution undertaking the effective utilization of
resources. It is also essential for company to identify the global business environment in an
effective manner that depict the information and environment of area that leads to impact the
success of company (Hollinshead, 2020). The assignment is relying on the enlargement of small
businesses in Europe, specifically in United Kingdom for the suitable enlargement of enterprise
transaction in an effective manner. For this, several aspects are discussed as: Political factors: It is concerned with the political stability and condition of country for
the business operations and it is also essential to identify it. Moreover, Europe has the
favourable condition for the increase of new and small business concern as they tend to
offer effective opportunities to small businesses due to the political progress. For

example, the legal regulations of state are favourable for the effective expansion of small
businesses regarding the investing and commerce as it is advantageous for company. In
terms of Ella’s Kitchen, they tend to undertake taxation policy of UK and suitable issues
with effective factors of bureaucracy, foreign trade policy, small business funding and so
on that impact the growth of company (Ella's Kitchen, 2021). Presently, Ella’s Kitchen
tends to opt local power structure considering the local trends in order to deal at the
domestic level to expand at the global level and negatively impact the overall
performance of Ella’s Kitchen. Economic factors: It undertake various factors like employment rates, wages and so on
that put direct impact on the functioning of Ella's Kitchen. For this, company tends to
expand in India by considering the wages and inflation rates which is quite low that can
become opportunity for Ella's Kitchen in its expansion. Furthermore, these factors are
concerned with the overall economic performance that impact the operations of small
businesses and their decision making (Najmaei and et. al., 2017). By undertaking the
situation of pandemic, it tends to bring lot of economic crisis across the world that
negatively impact the functioning of Ella’s Kitchen (Economic environment, 2021). To
overcome from this factor, Ella’s Kitchen need to organise market research in terms of
mitigating risk factor. Social factors: These factor tends to undertake trends of market area that put direct
impact over the performance of Ella's Kitchen. In relation with, Ella's Kitchen they are
quite capable to serve for the new market area by having proper knowledge regarding the
market trends. For this, there are various socio-economic components that tends to impact
the overall performance of Ella's Kitchen (Ella's Kitchen, 2021) by properly analysing the
ethical situations of UK that tends to influence the overall demand of products and their
operations. Moreover, by considering the cultural factors of UK, Ella’s Kitchen need to
consider strategic formulation in order to respond over the suitable operations as per the
success strategy (Castaldi and et. al., 2019). In terms of Ella’s Kitchen enhancing support
for the renewable energy leads to impact the operational efficiency as it can become
threat for respective company.
 Technological factors: It is the all important aspect which is related with each and every
company and for this, the technical components are identified like effective digitalisation

and advancement of technology in country. For this, Europe is famous for advanced and
updated technology all over the world which is useful for the operations of company
(Butzbach, Fuller and Schnyder, 2020). It is useful for company to expand their business
at the international level and reason behind this is the automation and information
regarding ICT which is beneficial for the expansion of market in an effective manner.
Moreover, one of the most effective technology is Artificial Intelligence (AI) that is
useful for companies to secure their details and transactions that become an opportunity
for small companies (Ella's Kitchen, 2021). In order to enhance the adoption of digital
technology that can become opportunity for Ella’s Kitchen in order to make things easy
considering payment and digitalisation that can positively impact the operational
efficiency of Ella’s Kitchen and its services (Dwyer and Vongvisouk, 2019).
The global business environment in which small and entrepreneurial businesses operate using
specific examples.
SMEs are those businesses who tends to maintain suitable assets, revenues for the
number of employees below for the suitable threshold. For this, it tends to offer suitable type and
defined category which is depend on the number of characteristics. SMEs are important for the
economy regarding the overall growth and development as it leads to offer employment
opportunities and open new markets (Rahman, Zailani and Musa, 2017). It also tends to
contribute around 51% of the turnover which is being generated by the private sector. SMEs also
tend to create a group for the skilled and semi-skilled workers in order to support upcoming
industrial and business expansion in country. This is how the economy of the region is supported
and influenced by the small business organisations and the enterprises of small in size bring
revenues for the society, jobs and employments and more importantly providing a regular money
flow to the society as people are employed and have increased their purchasing power.
Global business environment is important to examine as it aid in characteristic the
affirmative and destructive aspects for the small businesses which are concerned with the
suitable business situation (Lu, 2017). In regard of this, it undertakes suitable key actuation
regarding the experience and expansion in United Kingdom. Few factors are as follows:
 Market share growth is related with the success of market and also possible for the huge
amount of market area which is being achieved by companies at the international level. In

regard of this, company tends to achieve success for the help of new customers and
commodities.
 Competition is another key driver that occur from both the international and local market
that can become threat for small businesses (Nordin and Lindbergh, 2019). For this,
organisations need to come with unique approach in terms of expanding their business in
various regions to ensure the growth and property in dynamical business situation.
 SMEs, or small and medium-sized enterprises, are defined differently around the world.
The country a company operates in provides the specifics on the defined size of an SME.
The sizing or categorization of a company as an SME, depending on the country, can be
based on a number of characteristics. The traits include annual sales, number of
employees, the amount of assets owned by the company, market capitalization, or any
combination of these features.
Explanation of danger and possibility that is face by SME's in exploding competitive
global situation
Expanding businesses tends to face suitable challenges that undertake several issues and
opportunities as it need innovative solutions for the success that can become best approach for
company. It also leads to undertake identification and overcoming from the prominent barriers as
it is related with effective development and growth of business. In this, suitable leadership is
useful in order to develop and make new opportunities for the growth in future (Chen, Kim and
Kohli, 2017).
Opportunities Future Planning: The first and the biggest opportunity which exist within hands of Ella's
Kitchen is of future planning. The entity can undertake the suitable planning which is
essential to achieve growth for business and acquire sustainability in the competitive
business environment. This is an essential aspect to conduct suitable planning that helps
in offering suitable vision to the managers regarding the expansion of the firm and its
movement to new workplace and region (Prashantham, Zhou and Dhanaraj, 2020). It is
also useful to reduce different risks which can become significant barriers for Ella's
Kitchen in future in regards to growth of business and the expansion. Keeping up with market: Another impactful and influencing opportunity which exist for
Ella's Kitchen is of keeping up with market and stay innovative. A major concern for

company today for surviving is keep on innovating and addressing the requirements of
customers (Holzmayer and Schmidt, 2020). Keeping up with market offers Ella's Kitchen
a chance to effectively understand their customers and potential buyer and make sure of
offering them the best products and reach to them before any other.
Threats Change: Change refers to the changing environment and business situation due to
increasingly evolving market trends and requirements of customers (Tolliver, Keeley and
Managi, 2020). Thus, change is a threat for and SME's like Ella's Kitchen as entity faces
problems in keeping up the market requirement and lacks behind in addressing the needs
of customers as compared to other larger businesses creating a huge threat for the firm.
 Business interruption: It represent the interruption of businesses like threat from current
institution and new entrants. It represents that SMEs face danger for their enlargement
and also face hazard due to different business concern (Petrou and et. al., 2020). These
existing and new entrants in the industry will create problems in growth of Ella's Kitchen
as the market will be saturated soon and the force of existing as well as new rival will be
huge.
Evaluate and show of menace and possibility faced by SMEs
For the expansion in international businesses most of the organisations face threat and
also get accidental to person it into chance (Oviatt, Maksimov and McDougall, 2021). SMEs
need to identify their danger and chance which are helpful to deal with any sort of change for the
expansion in global market. Therefore, it is analysed that planning and keeping things updates
leads to bring more opportunities for small businesses. For this, changes in businesses can
become major threat for small businesses and it is needed that companies must have competent
leaders that can apply effective leadership for their management.
TASK 2
Benefits of global trading blocs and agreements
Trading Blocs is a union of bundle or countries and nations which are aligned and have
made arrangements with each other for developing their training policies and to be part of free
trade policies with less barriers and supporting one another (Tajeddini and Ratten, 2020). The

agreement of trading blocs was made for developing common training policies which are flexible
and advantageous for all and reduced barriers.
Commerce blocs depict the suitable grouping of state that leads to made agreement
undertaking the trading among them to have suitable barriers for free trade deals (Prashantham,
Kumar and Bhattacharyya, 2019). For this, there are three kinds of trade holds which are
undertaken by small businesses: Free trade area: The suitable trade understanding is escaped from tariff among
associates as no external ones are engaged in it. Therefore, the member of country leads
to negotiate on their own trading. Custom union: It depict the free commerce area and communal outer duty as the
associate of trade bloc tends to easily bargain with other party for effective deal.
 Common or single market: It is effective for eliminating for the prominent barriers of
trade in order to transfer products, workers, services and capital. Besides from this, non-
tariff barriers lead to reduce effective level of harmony within the economy.
Therefore, effective agreement for United Kingdom is quite common which is useful in
offering free commerce of merchandise across the state that tends to develop ratio of
merchandise without any barrier of national borders.
Benefits of Trade Bloc and agreements Free trade: The first and foremost feature which is also a benefit of trading blocs is the
free trading area provided to businesses of those region or nations who are part of the
agreements. This free trading areis will be the most suited and advantageous aspect for
Ella's Kitchen as a SME offering it a huge ground to do business and make revenues
(McCormick and Somaya, 2020). Wider Market access: The free trading is will also be offering the businesses part if
trading blocs nations, a significant are of market for conducting business transactions like
selling and even purchasing that is importing good form potential producer with low cost
and easy transactions and no complexities (Rahman, Zailani and Musa, 2017). Ella's
Kitchen being an SME will be holding greater opportunity of exposure to a larger market
and to a wider business area. Size of market: It depict the improvement of abroad direct investing which is
advantageous for overall economy of UK. It depicts the development in the scope and

size of small business. Hence, it also tends to develop market share to offer better
opportunities for companies of UK of trade bloc. Economic leverage: It permit the production that helps in activity of economical scale by
considering mass industry as it leads to eliminate the reducing of expenditure of industry.
Hence, trade block is useful in enhancing the economical purchase of involving state of
trade understanding (Tajeddini and Ratten, 2020). In regard of this, rapid change of
technology that helps in trade bloc to increase the efficiency of manufacturing process.
So, it leads to depict better productivity to achieve effective economies of scale for
organisations of UK.
Disadvantages of Trade Bloc and agreements Job Outsourcing: The first drawback of trading blocs and agreements is of job
outsourcing. As national borders are open and people has easy access to other regions
who are part of the agreements the job outsourcing is a common outcome. This results in
moving talents from other regions and increasing unemployment in own region (Literat,
2017).
 Natural Resource Exploitation: The next very significant damage which is caused by
trading blocs is exploitation of natural resources. Due to businesses having flexibility for
conducting trade over exploitation of resources takes place the domestic and international
businesses all are engaged in increasing revenues at any cost including affecting the
environment as well.
Describe the several tariff and non-tariff hurdles that occur in global market area
At the time of running business at the global market, various tariff and non-tariff barriers
are occurred which are faced by small companies. For this, few of them are mentioned as:
Tariff barriers:
These hurdles are relying on the custom tariff which is obligatory on the commerce of
suitable products and employment at the time agitated them crosswise the home boundary line
that comes under public bodies and government of country with the suitable objective of
protecting small companies to keep equilibrium among the cost. Some of them are discussed as: Particular tariff: It effectively represent the fixed charges which are being relevant on
the essential export of products and employment on specific unit. Along with this, it tends
to get vary as per the kind of product which are imported on the grounds of physical

entity as per the weight and measuring of transportation commodities (von Oppenkowski,
Hassler and Roesler, 2019). Ad valorem tariff: It is helpful in offering just trade obstruction as the custom duty which
is applicable on the cost in comparison to lower price products. Hence, it also tends to
eliminate the load of tariff for small companies.
Non-tariff barriers:
These are reasoned as the non-tax limitation that are being imposed by public bodies in
terms of having control and observation on abroad trade. Some of the non-tariff barriers are
mentioned as: Voluntary Export Restraint (VRE): This is a very significant Non-tariff barrier which is
a self-imposed trade restriction by the country on their exports. In simpler words, the
exporting country itself impose a break on its exports and the number of goods being sold
outside the domestic market. These goods are of particular nature and this barrier is
imposing by the request made by the importing country or region (Milner-Gulland and et.
al., 2018). Licenses: It represent the backhand approval which is being given by the authorities as it
tends to permit business to transfer and deal with particular type of products and services
in Worldwide market (Petrou and et. al., 2020). For this, effective use of licence and
argumentation are made by authorities of state to make over restriction for the suitable
flow of trade with the objective of direction of business relation and enhancement in
prices which are being faced by companies.
 Import quotes: It depict the suitable kind of barrier which is being imposed for the
amount of particular product and services which are imposed by companies from other
countries. Hence, movement of products are permitted for the suitable bound of measure
which is being determinate by governance and legal control.
 Subsidies: It is being used by the domestic manufacturer or small organisations in terms
of reducing the domestic cost and limit their imports (Dwyer and Vongvisouk, 2019). In
terms of Ella’s Kitchen, presently they are dealing at the domestic level and because of
this subsides is effective factor in order to eliminate additional cost by limiting the
imports of company.

 Embargoes: They were effectively use when the country tends to ban trade for the
specific products and services with another country. In regard of this, government trends
need to take effective measures in terms of supporting for the specific political and
economic goals (Castaldi and et. al., 2019). In context of Ella’s Kitchen, the harmful
products which is not appropriate for babies are banned by the government that can relies
under the barriers.
Measure the benefits of global trading blocs and concord
Effective formation and creation of trade blocs among various countries leads to offer
suitable benefits to the small companies and also tends to create positive impact over them. In
regard of this, trade blocs lead to create suitable opportunity for small businesses in terms of
having access which is concerned with advanced technology as it tends to enhance their
efficiency regarding the effective production and manufacturing (Yip and Prashantham, 2019).
Moreover, for the free flow of person is also bankable for small business concern as they lead to
have cheap labour that helps in eliminating production cost and economic leverage by meeting
prominent goals of economies of scale in SMEs.
TASK 3
Benefits and drawbacks of importation and exportation procedure and how a deal can be barred
Exporting is the process that leads to undertake selling and exchange of commodities to
customers in particular area with the objective of having suitable market share and profitability.
Importing is a process of purchasing good and services that is raw materials and intangible
services from international dealers. It undertakes effective export process which is being
discussed in terms of small businesses:
Direct exporting: This process of exporting undertakes the effective sales of products and
services which are being developed in foreign area without any engagement of middleman. For
this, small organisations lead to take responsibilities to sell products and services across the
country and also being responsible to deal with foreign organisations (Ram and Liu, 2019). For
this, suitable benefits and drawbacks are as:
Benefits:
 It helps in offering effective control over the transaction of sales and make it more
effective in terms of developing direct connection with customers.

 Middleman are being eliminated from the process of exporting by which profitability is
in the part of company.
Drawbacks:
 For this, companies are equally responsible for the safety and risk which are being
engaged in the transaction of production.
 It requires more time and money to attract customers who belong from abroad countries
without the help of mediator.
Indirect exporting: This method tends to depict the suitable movement of products with
the help of middleman in foreign countries. For this, independent agents and export management
organisations are responsible to sell intermediaries and also responsible for moving and
exporting commodities at the foreign countries (Holzmayer and Schmidt, 2020). Its benefits and
drawbacks are discussed as:
Benefits:
 It helps in offering less risky for the export of their products and services with the help of
sales intermediaries. Along with this, the limited time and investment is required in comparison to direct
investment.
Drawbacks:
 It leads to eliminate profit margin of this process undertaking the commission agent and
middleman which are being engaged.
 It also tends to take over the control for the sales transaction which is led by the direct
export.
Hence, in terms of securing deal for the export process they lead to use direct method
which leads to recommend two small companies in order to take more control over the sales and
transactions. For this, effective market research and examination is done by small businesses to
analyse better export opportunities at the international market.
International purchase order is a document which is normally issued for preceding by
an exchange of information between tow specific parties the importer and the exporter in regards
to the price, quality and quantity of products (Zou and Petrick, 2017). In terms of Ella’s Kitchen,
they make effective use this document when they have small kind of transaction at is for the
domestic purpose by considering two more parties which is sender and recipient.

Packaging list is another document which is used in international trade which is used for
providing the exporter the international freight forwarded and the ultimate consignee with the
information of shipment. In relation with Ella’s Kitchen, they lead to generate this document at
the time of exporting products through ships by marking their number over it the external side of
box or container.
Certificate of origin which is a declaration presented referring to the goods and services
and the country in which the commodity is manufactured. The document contains information
about the products, its destination and the country from which the products are exported. In
terms of Ella’s Kitchen, it is the common document as it tends to include details regarding the
product and particular destination.
Irrevocable letter of credit is determining as an official corresponding document
presented from the bank which is a guarantee for payment of goods and services which are being
purchased by entities who are the applicants and presented when requested. In relation with
Ella’s Kitchen, they tend to get this document by bank as the guarantee for their overall payment.
Describe comparison among merchandise and service imports and exports
Merchandise imports and exports is the process involving offering and selling on
tangible goods outside the domestic border and making purchase of tangible resources form
international borders and businesses.
Service imports and exports is the procedure which is related to transaction of intangible
offerings that is services to international borders and buying intangible services from the other
region and countries. There are few differences in between merchandiser import and export and
service import and export which are presented below in the table.
Basis Merchandise imports and exports Service import and export
Nature
of goods
A major difference between merchandise
imports and exports is of goods offered.
The tangible goods are transacted in
such business practice where the parties
can touch and feel the products being
purchase and sold (Myers, Knocke and
Leeman, 2019).
On the other hand, in service import
and export the good being sold and
purchase can only be felt no physical
contact is made and such products are
known as intangible goods and
commonly addressed as services.

Risk The business engaged in Merchandise
imports and exports are more the main
reason is easy access and manageable
aspects related to run such business.
Hence, it is a huge expansion
opportunity present in hand of Ella's
Kitchen for growth and development,
In context to Service imports and
exports the same risk is risen as the
operations and functions involved in
such transactions are highly complex
and can affect the profitability of Ella's
Kitchen if engaged in such business
transactions (Woldarsky, 2019).
Cost This is a factor which will affect
business of Ella’s Kitchen as the
company will be needed money and
incurring cost from purchase of raw
materials.
On the contrary in service import and
export transactions of cost is generated
through the operating transaction
generated for rendering services and
managing functions of business.
Apply appropriate import and export procedure by offering recommendations
The import and export procedure involve licensing and other compliance that is used
before shipping of goods and services, arrangement of transport, adequateness of customs
clearance along with tax payments and release of services in competitive marketplace. In this it is
recommended that SME make order placement and letter of credit under which documentation is
processed with effectiveness and in this working capabilities also get managed and control in
timely frame.
TASK 4
Several ways in which SMEs can take entry into global markets
The organisation might have been small, medium or large but they get expand their
business internationally that furthermore assist to advance market share and profit ratio. In this
various operations and project management is increases under which revenue generation and its
value both get enhanced over a certain period of time. The SMEs like Ella's Kitchen make
supportive usage of various methods in order to tap its business into an international marketplace
and it is as briefly explained below as:
Franchising: This is an agreement which is usually performed in between two different
parties within which franchiser provide permission to franchisee so as to make suitable usage of

brand logo and symbol as with this selling of suitable goods and services is processed as per
name (Konara and Ganotakis, 2020). It is a mode of market entry within which different parties
belonging to separate domains can work together to maintain and bring in quality and service
standards in the operation and the offering presented to customers. By using this brand image
and its value both get advanced on continuous basis of both the entities involved and it also
offers several benefits to businesses as well as to their growth. The SME's like Ella's Kitchen can
engage in franchising option to expand and grow.
Joint venture: It is a common form of business entering into new international market for
the purpose of conducting business into new market. Joint venture is a business arrangement
where two or more parties are engaged with each other with a common objectives and for attain
it in the most effective manner (Holzmayer and Schmidt, 2020). The businesses conducting their
international entry through joint ventures they create their pool of resource with the motive of
fulfilling the tasks related. Ella's Kitchen can make use joint venture to move its business and
join hand with existing business and make sure of combining their resources like skills,
expertise, money and many more.
Licensing: This is a market entry mode which is similar to franchising where companies
joining hands through the market entry mode will be allowing the other firm to use their
intellectual property and make the best use of them in order to make the offerings authentic and
reliable (Kaye, Chen and Zeng, 2020). The aspects which separate licensing and franchising
form one another is the rights are given to the other firm in licensing for a particular period of
time and renewed at the end of the transactions.
Strategic Acquisitions: When a company acquires the controlling system of another
company located in same country as well as in another country, then this is called strategic
acquisition. Controlling system of another company is gained by purchasing stock, paying owner
a purchasing price of that company and by exchanging stock with each other. In context of Ella's
Kitchen, there is a big scope of opting this method of expanding their business in many countries
by using the strategies and workforce power of another company.
Strategic Alliance: It is the method which consist of signing an agreement to work
together by using each other’s resources and to achieve a common goal for a particular time
period while remaining independent organisations. The companies dealing in same sector with
similar segments can adopt strategic alliance to enter new market internationally. In context of

Ella's Kitchen, company may use this method by agreeing to work with its tough competitors
like Serenity Kids and Sprout to gain the advantage to learn their strategies and using their
resources for betterment of company.
Comparison and contrast the several methods by which SMEs can take entry into global market,
assessing the benefits and drawbacks of every method.
The small business enterprise makes adequate usage of different methods so as to tapping
into an international market and for that franchising, licensing and joint venture is considered
along with its pros and cons that is also get explained below as:
Pros
Franchising Licensing Joint venture Strategic
Acquisition
Strategic
Alliances
It is quite
affordable
method that is
used by business
as it also doesn't
require any
excess amount of
funds and also
induce lesser risk
as well
(Tajeddini and
Ratten, 2020).
The small and
medium business
intensify the
market share and
its profit with
usage of this
method and in
this there is
lesser amount of
risk too.
SMEs get
advance its
integration with
support of this
method as in this
resource
utilisation is also
get advance and
with this risk
assumption also
get reduced in
balanced mode
as it is share
between all the
parties (Castaldi
and et. al., 2019).
This method
reduce cost like
establishing the
company, hiring
manpower and
many other
because in this
method owner
already get fully
established
company with
skilled
employees.
Acquiring
company get
benefit of new
ideas and
strategies by
using same
manpower of that
When two or
more companies
come together to
achieve similar
goals then each
company achieve
their goals in
more frequent
time. In order to
develop alliance
companies uses
each other’s
technologies and
because of this
each company
have advantage
to produce more
goods with better
quality

company.
Cons
Franchising Licensing Joint venture Strategic
Acquisition
Strategic
Alliances
It is a method
that bring threat
for the business
as it is not
essential that
image and
quality of
business is
maintained by
the franchisee in
ordinate manner
(Rahman, Zailani
and Musa, 2017).
It is a method
that offer various
challenge as
within this return
on investment is
also get affected
and it has direct
impact over
image of
business (Petrou
and et. al., 2020).
In this SME
might offer
various
challenges and
within this
unbalanced
involvement is
processed that
reduces risk
credibility.
Both existing
company and
another company
who is acquiring
the previous
company has
different
cultures. It is
possible that
values and
cultural
differences will
affect the
business by
increasing
conflicts in
offices. Most of
the time
acquiring
company
demand rawer
materials. So this
creates pressure
on suppliers and
owner of
acquiring
Working with
another company
creates
disadvantage too
because another
company may
offer more salary
to good
employees and
gain the best
employees.
When two or
more companies
come together to
achieve similar
goal then they
have different
cultures which
creates conflicts
in every decision
making stage as
well as in daily
working routine

company
changes existing
suppliers to its
previous
suppliers.
Analysis of several methods which is opted by SMEs and by providing appropriate
recommendations
The SME make adequate usage of joint venture as with the supportive usage of this
ability of a business to expand and diversify its product and services is advanced on regular
basis. In this working efficiency and its effectiveness is improvised as with this business advance
its working suitability also enhance in balanced manner. In support of joint venture ability of
business to expand its working is increases and it help SME to expand its business on larger
scale.
CONCLUSION
Hence, it is analysed that Global business environment undertake various opportunities
for small businesses as it is concerned with effective use of technology and various sources of
finance that helps in the future expansion of business. Along with this, it undertakes various
threats like migration of workforce and so on which is being developed by enhancing global
competition. For this, international trading blocs is helpful for having suitable participating that
make trade agreement easy and undertake several types of exporting process which is being
discussed with direct and indirect method. Moreover, several types of methods are discussed for
small businesses which is useful to take entry into international market by joint venture,
licensing and franchising.

REFERENCES
Books and Journals
Butzbach, O., Fuller, D.B. and Schnyder, G., 2020. Manufacturing discontent: National
institutions, multinational firm strategies, and anti‐globalization backlash in advanced
economies. Global strategy journal, 10(1), pp.67-93.
Castaldi, S and et. al., 2019. Business group affiliation and foreign subsidiary
performance. Global Strategy Journal, 9(4), pp.595-617.
Chen, S., Kim, Y. and Kohli, C., 2017. A Korean, a Chinese, and an Indian walk into an
American bar: Tapping the Asian-American goldmine. Business Horizons, 60(1), pp.91-
100.
Dwyer, M. and Vongvisouk, T., 2019. The long land grab: market-assisted enclosure on the
China-Lao rubber frontier. Territory, Politics, Governance, 7(1), pp.96-114.
Farrell, H. and Newman, A.L., 2020. Chained to Globalization: Why It's Too Late to
Decouple. Foreign Aff., 99, p.70.
Gebauer, H., Saul, C. J. and Haldimann, M., 2017. Business model innovation in base of the
pyramid markets. Journal of Business Strategy.
Hollinshead, G., 2020. Global value chains in international knowledge work: networks,
stratifications and labour markets. Global Networks, 20(3), pp.472-488.
Holzmayer, F. and Schmidt, S.L., 2020. Financial performance and corporate diversification
strategies in professional football–evidence from the English Premier League. Sport,
Business and Management: An International Journal.
Kaye, D.B.V., Chen, X. and Zeng, J., 2020. The co-evolution of two Chinese mobile short video
apps: Parallel platformization of Douyin and TikTok. Mobile Media & Communication,
p.2050157920952120.
Konara, P. and Ganotakis, P., 2020. Firm-specific resources and foreign divestments via selloffs:
Value is in the eye of the beholder. Journal of Business Research, 110, pp.423-434.
Literat, I., 2017, January. Tapping into the Collective Creativity of the Crowd: The Effectiveness
of Key Incentives in Fostering Creative Crowdsourcing. In Proceedings of the 50th
Hawaii International Conference on System Sciences.
Lu, J. N., 2017. Tapping into rubber: China’s opium replacement program and rubber production
in Laos. The Journal of Peasant Studies, 44(4), pp.726-747.
McCormick, M. and Somaya, D., 2020. Born globals from emerging economies: Reconciling
early exporting with theories of internationalization. Global Strategy Journal, 10(2),
pp.251-281.
Milner-Gulland, E. J. and et. al., 2018. Evidence to Action: Research to Address Illegal Wildlife
Trade.
Najmaei, M. and et. al., 2017. Marketing from Islamic perspective, tapping into the Halal
market. Journal of Marketing Management and Consumer Behavior, 1(5).
Nordin, F. and Lindbergh, J., 2019. Foreign market learning: an integrative model of its
antecedents, processes and outcomes. Journal of Business & Industrial Marketing.
Oviatt, B. M., Maksimov, V. R. and McDougall, P. P., 2021. International entrepreneurship.
In World encyclopedia of entrepreneurship. Edward Elgar Publishing.

Petrou, A.P and et. al., 2020. Strategic decision-making processes, international environmental
munificence and the accelerated internationalization of SMEs. International Business
Review, 29(5), p.101735.
Prashantham, S., Kumar, K. and Bhattacharyya, S., 2019. International new ventures from
emerging economies: Network connectivity and legitimacy building. Management and
Organization Review, 15(3), pp.615-641.
Prashantham, S., Zhou, A.J. and Dhanaraj, C., 2020. Depth vs. breadth: Network strategy in
emerging markets. Management and Organization Review, 16(2), pp.229-260.
Rahman, M. K., Zailani, S. and Musa, G., 2017. Tapping into the emerging Muslim-friendly
medical tourism market: evidence from Malaysia. Journal of Islamic Marketing.
Ram, J. and Liu, S., 2019. Social Commerce and Innovative Business Engagements: An
Empirical Investigation. Electronic Journal of Information Systems Evaluation, 21(2).
Siegel, J., Pyun, L. and Cheon, B.Y., 2019. Multinational firms, labor market discrimination, and
the capture of outsider’s advantage by exploiting the social divide. Administrative
Science Quarterly, 64(2), pp.370-397.
Tajeddini, K. and Ratten, V., 2020. The moderating effect of brand orientation on inter-firm
market orientation and performance. Journal of Strategic Marketing, 28(3), pp.194-224.
Tolliver, C., Keeley, A.R. and Managi, S., 2020. Drivers of green bond market growth: The
importance of Nationally Determined Contributions to the Paris Agreement and
implications for sustainability. Journal of cleaner production, 244, p.118643.
von Oppenkowski, M., Hassler, M. and Roesler, T., 2019. Informal markets and global value
chains–the disembedding of Romanian dairy smallholders. European Planning
Studies, 27(5), pp.995-1012.
Yip, G.S. and Prashantham, S., 2019. Innovation in emerging markets. The Oxford handbook of
management in emerging markets, p.351.
Zou, S. S. and Petrick, J. F., 2017. Tapping the Chinese market: An examination of Chinese
tourists' images and constraints towards cruising. Tourism Review International, 21(4),
pp.347-364.
Online
Ella's Kitchen. 2021. [Online] Available through: < https://www.castuk.com/our-clients/case-
studies/ellas-kitchen >./
Economic environment. 2021. [Online] Available through: <
https://primefeed.in/news/4477319/baby-food-market-pestel-analysis-competitive-
landscape-and-swot-studyabbott-laboratories-mead-johnson-company-llc-nestle-s-a/>