Tapping into New and International Markets

This presentation provides insights into tapping into new and international markets. It covers the advantages of international trading blocs, tariff and non-tariff barriers, and the analysis of the global business environment. It also discusses the threats and opportunities faced by organizations. Suitable for Task 1 & 2.

Task 1 & 2
Tapping into New and
International Markets

Table of Content
 Introduction
 Introduction to the chosen country and region
 An analysis of the global business environment
 Threats and opportunities faced by the organization in global b
usiness environment
 Advantages of international trading blocs
 Tariff and non Tariff barriers
 Conclusion
 References

Introduction
The current market conditions and huge competition
demands the organisation to expand their operations on to
a global level. The SME which is selected for the
expansion purpose is Ella's Kitchen which is planning to
expand in Australia. The effect of all the global factors on
an entrepreneurial organisation will be examined.

Introduction to the chosen country an
d region
The analysis for the report is performed on the aspects of
United Kingdom, as the nation is well known with fact that
a a lot of small and medium enterprises are contributing
efficiently to enhance national economy. The UK is the most
developed and constant growing part of the Europe
continent. The UK is ranked on the 6th position among the
world in respect of its nominal GDP which impacts majorly
on the development of nation as well as of its people. The
nation is recognised for the continuous trend evolvement in
the sector of education, business and technologies.

An analysis of the global business envi
ronment
Global business environment captures the overall
transformation in business, which are erupted by the
globalization of trading factors and other technological
factors. These environmental aspects effect the political,
social and economic conditions of the respective nation.
Major key decisions for cooperative actions can be taken by
analysing the nature and position of all the business factors
as per the global environment.

Continued...
There are various factors which are required to be focused
by Ella's Kitchen which is planning to expand business in
Australia. All of them should be analysed on international
level. Description of all of them is as follows:
Political: The political situation of Australia is very stable
which is beneficial for all the organisations to expand
business there.
Economic: There are various economical factors such as
unemployment, inflation, deflation, exchange etc.

Threats and opportunities faced by th
e organisation in global business envir
onment
From the analysis of the global business environment it has
been analysed that there are various opportunities and threats
for Ella's Kitchen which could be faced by it while
expanding business in Australia. All of them are as follows:
Opportunities: Stable political situation of Australia is an
opportunity for the organisation because it will be beneficial
for it to establish the business successfully.

Continued...
Threats: The major threat for the organisation is sudden
changes in economic situation which may leave negative
impact upon functionality of business because it results in
lower purchasing power of customers.
Impact of threats: The threat for Ella's kitchen will be
negative because it will affect the growth of business in
Australia.

Advantages of international trading bl
ocs
International trading blocs are very beneficial for the
organisations because it help them to ignore the
additional tariffs which are required to be paid at the
time of import or export.
Trading blocs are very beneficial for SMEs because with
the help of them companies such as Ella's Kitchen can
grow effectively and attain the long term goals.

Tariff and non Tariff barriers
Tariff barriers
Specific duty – These are the barrier related to the
direct charges of trading into a particular nation that is
charged by legal authorities. That leads to raise cost of
business, which affects the price,sale and profits.
Transit duties – the taxation charges which is charged
by governmental authorities of a country on the transmission
of products and services from location to location are known
as transit duties.

Continued...
Non tariff barriers
Import policy barriers – the import policy barriers
are those restriction which affect the organisation's global
trading in a negative manner. It is necessary for business to
undertake such barriers tactfully to carry out the business
effectively.
Service barriers – These restrictions are placed in
order to monitor and control the distribution of product and
services through out the respective nation while performing
the international trade.

Conclusion
From the above information, it can be summarised that
export and import is very important for a business as it
provides growth opportunities and help in expansion and
diversification of a business. Thus, it increases the
productivity of a business and help in conducting smooth
operation of a small and medium enterprises. With the rise of
digital technology, organisation have to make wide range of
decisions to expand the market internationally.

References
Viswanathan, S. K. and Jha, K. N., 2019. Factors Influencing
International Market Selection for Indian Construction
Firms. Journal of Management in Engineering. 35(5).
p.05019006.
Leick, B., 2019. Steering through tough times? Insights into
strategic change processes of small firms in the context
of demographic challenges. International Journal of
Globalisation and Small Business. 10(2). pp.163-186.

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