SME's International Business Expansion: Market Analysis Report

This report provides a comprehensive analysis of the international expansion strategies for Small and Medium Enterprises (SMEs), focusing on the global environment and its impact on business operations. It examines the political, economic, social, and technological factors influencing SMEs, particularly in the context of Barclays' expansion. The report delves into the rationale for international expansion, highlighting advantages such as revenue generation, market diversification, and talent acquisition, while also addressing barriers to growth. It further explores trading blocs, agreements, tariff and non-tariff barriers, and their effects on SMEs. The report concludes with an overview of how international trading blocs and agreements stimulate global growth for SMEs, offering valuable insights for businesses seeking to expand internationally and navigate the complexities of the global market. The report also studies the PEST analysis and its effect on small and entrepreneurial businesses.

Tapping into
New and
International
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Table of Content
 Introduction
 Global environment analysis where SMEs operate.
 Global business environment analysis
 Key global drivers
 Rationale for SMEs to expand their business internationally.
 Advantages of international opportunities and overcome their barriers for global growth.
 Trading blocs and agreements
 Tariff barriers
 Non-Tarrif Barrier
 International trading blocs and agreements generate global growth for SMEs.
 Conclusion

Introduction
Global environment is explained as those factors which are
uncontrollable in nature but create huge influence of business day to
day working. Barclays is expanding the business in UK because this
nation is financially stable in nature as well as are technologically
advanced nation as to compare to other country. The government of
UK is encouraging new and innovative business to grow in their
nation. SMEs is expanding their business globally in order to
survive and sustain in the competitive world.

Global environment analysis where SMEs
operate.
The global environment in which small and entrepreneurial business operates are discussed as
under:
Political factor: UK is politically stable so Barclays can easily expand their business in this
nation. It is technologically advanced nation which will help SMEs to grow and develop easily.
Economical factor: SMEs will be beneficial by expanding the business in UK as the
education rate of this nation is high. The labour are highly skilled which will help the business
to attain their set goals and objectives in the set time span.

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Social factor: SMEs is investment bank and financial services company. As
they are expanding the business in UK firm need to understand their social
factors . By this best services can be offered to the customers.
Technological factor: UK is well-known for using modern tools and
techniques. By expanding the business in this nation with the help of
modern tools SMEs will be able to create tough benchmark for others.

Global business environment analysis
By deeply studying political, social, economical and technological factor
management is able to frame strong tactics to over the issues emerged from
this factors. By analysing all this factors business is able to capture huge
market ratio easily. Along, with this huge customer base can be raised for
the business in the coming years which is a positive mark for the business.
SMEs will be able to gain competitive advantages against rivalry by
measuring all this factors deeply.

Key global drivers
International investments: SMEs is influenced by global drivers in UK because huge
investment is required to expand the business in the international market. They are small in
size and are not financially stable in nature due to which SMEs is more likely to be affected
by global drivers.
Technological advancement: Huge finance is needed to implement advance technology in
the working premises. SMEs is greatly affected by global drivers as they are small in size
and are does not have enough skilled employees with them in order to cope up with rivalry
in the international market.

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International trade: International trading is done when the product and
services are innovative in nature and are able to compete in the market.
SMEs does not have enough resources to come up with innovative idea
every now and then. This is the reason the global drivers most influence
SMEs business day to day operating activities.

Rationale for SMEs to expand their
business internationally.
Generating more revenue: By expanding SMEs in the international market
they will be able to maximize huge revenue by which further growth of
business can be done easily. With the phase of time this business will turn
out to be financially strong.
Diversifying: The purpose of SMEs is to expand business in the
international market is to diversify their market and product segment. By
this customer base can be raised gradually in the market which is a positive
mark for the business.

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Recruiting new talent: As business is expanded in the international market
SMEs is able to hire more talented and capable staff members in their
organization in order to full-fill the emerging needs of the customers. By
this brand recognition can be done slowly in the eyes of the customers.
Due to which more loyal customers can be build with the phase of time
towards the product and company.

Advantages of international
opportunities and overcome their
barriers for global growth.
Planning an international expansion: SMEs management need to plan
weather the international expansion will aid with their long term
scalability.
Ways to overcome barriers:
Experts should be hired in order to understand weather the expansion of
SMEs business in the international market will be successful or not.
Both internal and external scanning of environment should be done in order
to understand how resources can be assembled by SMEs.

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Understanding the market: To sustain in the international market it is essential
to better understand the market SMEs is planning to enter.
Ways to overcome barriers:
Before entering the UK market SMEs need to scan the market, type of
customers, their taste, disposable income and so on. By doing so firm will
be able to design the product and services accordingly and can survive for
longer time duration.