Tapping into New and International Markets

UNIT-43
TAPPING INTO NEW AND
INTERNATIONAL
MARKETS

Table of Contents
INTRODUCTION.......................................................................................................................................3
LO1.............................................................................................................................................................3
P1 Explain global business environment in which small and entrepreneurial businesses operate............3
P2 Analyse threats and opportunities that face SMEs in increasing competitive global environment.....4
LO2.............................................................................................................................................................5
P3 Analyse the advantage of international trading blocs and agreements................................................5
P4 Explain various tariff and non- tariff barriers that exist in international trading environment............6
LO3.............................................................................................................................................................7
P5 Advantage and disadvantage of importing and exporting and how to secure a deal...........................7
P6 Differences between merchandise and service imports and exports...................................................8
LO4.............................................................................................................................................................9
P7 Evaluate various methods in which SMEs can tap into international markets....................................9
P8 Compare and contrast various ways SMEs can tap into international markets with pros and cons of
each method...........................................................................................................................................10
CONCLUSION.........................................................................................................................................11
REFERENCES..........................................................................................................................................12

INTRODUCTION
Tapping into new and international market is very challenging for the small and medium sized
organisation. If they want to explore and expand their market into the new place they need to be prepared
a proper plan and executed it very well with more patience. For every business organisation international
market create a great opportunities for earning high profits but at the same time it is very complex in
nature. This report is based on the Verdant Leisure that is one of the prominent firms founded in 1991. It
offers the wide range of holiday options in all budgets. They mainly visit in the Scotland,
Northumberland and County Durham where person can enjoy their vacation with fantastic customer
service and perfect environment. It includes the analysis of opportunities and threats for a company that
exposed into the global environment. It also shows the advantage s of trading blocs and various types of
tariffs and non-tariffs that were exist in the international markets. It also involves pros and cons of
importing and exporting and comparison between merchandise and service imports and exports. at last it
shows the ways that a SMEs use to tap into the international market and gain large amount of profits and
expand their existence in the global market(Najmaei and et. al., 2017).
LO1
P1 Explain global business environment in which small and entrepreneurial businesses operate
Global business environment refers to the environment of the different countries with their
external factors that is different and varies from the home environment of the business firm that influence
the decision making and capabilities of using the resources. It helps in showing the connections with the
different countries in which an organisation wants to explore and expand their business unit by analyzing
all the external factors like economic factor, political, social, technological, environmental etc. It also
showcases the integration of the governments, people on the global level. In case of Verdant Leisure they
wants to open their business outlet in the Germany so that they can offers services to customers in
Germany holiday parks also for this they need to analyse the PESTLE analysis that can be shown
below(Rahman, Zailani and Musa, 2017).
 Political factor – As the organisation is aiming to expand their business in the Germany for this
they need to know the political stability, tax rates, trade blocs that are followed by the company.
due to Brexit occur in the UK in which some European countries are separated from the EU union
due to this many large businesses affected. But for SMEs like Verdant leisure it will create an

opportunity to explore their business in Germany as government of Germany supports them and
due to this they earn high amount of profits and attracting many new customers.
 Economical factor – It includes the inflation rates, tax rates, people spending power etc. as
because of Brexit spending power of the consumers are not so high and there is a problem of
unemployment this will create a opportunity for the Verdant leisure as they offers services in
budgets as per the customers needs and provide employment to the unemployed people so that
company image will be strong on a global level.
 Social factor- It shows the values, belief, customs etc. In this Verdant Leisure wants to explore
their business unit in the Germany where people are more excited to travel and enjoys their
holidays in their own way. So it will create an opportunity to attract the large base customers and
earns a high amount of revenues(Solheim, 2016).
 Technological factor – In recent time this factor is very trending for expanding the business unit
by the Verdant leisure they need to examine the Germany way of using technology. in this
Germany is famous for using new and advanced technology and as they offers their products by
using the advanced technology in their promotions and services that attracts the larges base of the
customers.
 Legal factor – This factor shows the laws and regulations that were imposed by the government
of the country for employees and customers. In case of Verdant leisure they will follow all the
legal laws for the employees benefits so that they will encourage for the good working and
ensures that company will stay in the market for a longer term.
 Environmental factor – It includes the laws related to the environmental safety. in this Verdant
leisure can explore their market in Germany and analyse that it is very attractive and clean that it
helps the company to earns a high profits and attracts the customers for enjoying their services in
the Germany atmosphere(Serra and Theng, 2015).
P2 Analyse threats and opportunities that face SMEs in increasing competitive global environment
Tapping into new and international market is not a cakewalk especially for SMEs. A business
venture needs to analyse various factors that is helpful in expanding the business in the new place. In this
it is very essential to examine the internal environment of the company so that it is easy to make a further
plan for earning high amount of profits and revenues. A manager of a Verdant Leisure can use the SWOT
analysis so it is easy to know the strength and weakness and also helps in knowing the opportunities and
threats that it was containing. in reference of Verdant Leisure SWOT analysis can be explained
below(Poulios, 2015).
SWOT ANALYSIS