Globalisation Report: Stevia's UK Market Entry and Analysis

This report delves into the multifaceted aspects of globalization, specifically focusing on the strategies, risks, and benefits associated with businesses entering the UK market. The report begins with an introduction to globalization, its impact on businesses, and the problems faced when expanding internationally. A comprehensive literature review examines various methods for market entry, including exporting, licensing, franchising, partnerships, joint ventures, and acquisitions. The report identifies and analyzes the risks inherent in entering new markets, such as competition, economic factors, legal issues, and communication gaps. It also explores the benefits of globalization, including access to talent, improved communication, reduced tax burdens, and increased growth opportunities. The report then assesses the advantages of different market entry methods, such as licensing, franchising, partnerships, joint ventures, and acquisitions. It provides recommendations on mitigating risks and suggests techniques for businesses like Stevia to successfully enter the UK market. The report concludes with reflections on the research process and key findings.

Globalisation

Table of Contents
TASK 2............................................................................................................................................3
Chapter 1 Introduction................................................................................................................3
Chapter 2 Literature review .......................................................................................................4
Chapter 3 Methodology ..............................................................................................................5
Chapter 4 Results.......................................................................................................................9
Chapter 5 Conclusion and recommendations...........................................................................17
Chapter 6. Reflection................................................................................................................18
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20
REFERENCES..............................................................................................................................21

TASK 2
Chapter 1 Introduction
Background of the study
Globalisation can be defined as tendency of companies to expand their business at
international level. It can also be referred to as procedure of increasing integration of markets
worldwide. Globalisation has significant effect on the way different activities are performed by
firm. It is the factor which has significant influence on marketing activities of an enterprise. By
expanding global scale, an enterprise can gain various benefits, But at the same time there are
different types of risks is associated with expansion of business at global scale. Increase in profit
margin and revenue is the main benefit that an enterprise can gain through internalization.
Globalization also provides firm an opportunity to increase its market share and foster business
growth (Taylor, Bogdan and DeVault, 2015.). But there is high chances of business failure as
well as decline in sales of specific product which is associated with globalization of business.
But an enterprise can achieve success planning if it expands business through proper planning. It
is required by management in firm to conduct through market analysis before expansion of
business in other country, as this tactic will help management in addressing those factors which
might create hindrance in launch of new product in the global market.
Nature of problem
The problem is qualitative in nature. The issue is related to the risks which is faced by
organization while entering into UK market. Other issue which is faced by management in an
enterprise is related to selection of suitable ways for entering into UK market. The small medium
enterprise is searching for different strategies which can be applied for reducing the chances of
risks in international market.
Importance of the study
Present investigation has great importance as it will help an enterprise in identification of
suitable ways for entering into global market. In addition to this, current research has great
significance as it will help management of Stevia in determining whether decision related to
launch Stevia as a healthy product which can replace the sugar in the cakes, into the UK market
is effective or not. The information collected through investigation will support manager in

addressing the risk as well as benefit of launching Stevia as a healthy product which can replace
the sugar in the cakes, into the UK market. Result drawn from investigation will assist
management in making suitable decision related to introduction of particular product in new
market.
Rationale foe selecting specific topic.
One of the important reason because of which investigator has selected specific topic for
investigation is that researcher has interest in particular field. Other reason is continuous launch
of new product in international market by retail organizations. It is the factor which has
positively influenced researcher to identify the benefit which is gained by organization by
introducing their goods into new market. In addition to this, by performing the investigation on
specific topic investigator intend to address the motive of launching of new product by firm in
international market especially UK. Due to academic purpose researcher wants to develop the
understanding about the risk related to launch of product in UK market.
Aim and objective of study
Aim : To assess the risk as well as benefit for organization based in USA associated with
promotion of Stevia as healthy product in UK market.
Objectives :
 To evaluate ways through which an enterprise can enter into market in UK.
 To explore the business risks involved in entering into UK market.
 To analyse the benefits of a business entering UK markets
 To develop the understanding about reason of Stevia expanding business in UK market.
 To suggest the techniques using which Stevia can reducer the risks associated with
entering into UK market.
 To provide recommendations to “Steviva Brand, Inc” Company based on analysis
Chapter 2 Literature review

Methods for Business Organization to Enter Into UK Markets
Globalization is one of the best way to expand the business of organization to gain
increased marginal profit and growth in market. In process of globalization different ways are
used by various companies. Selection process of a particular method is based on what kind of
business company is performing. This is important for the organization to select right method
cause performance of business and growth of company is depended on selection of particular
method. As per view of Najam, Runnalls and Halle, (2016) company can use different methods
to enter a new market. Each type of method have advantages and limitations. These advantages
and limitation lead the future of business in new market place. Most time companies use
licensing, franchising, partnership, direct exporting, joint venture and buying a company. It is
also depended on the size and product of organization. For selection of right method for global
expansion company use different research work to find the best suitable way to move on
international level with no added loss. In the process of direct exporting company prefers to
export their product in international market to earn profit. This method is good for the
organization that are in business of products for one time use because company will not be able
to provide them with after sells service.
According to Hitt, Ireland and Hoskisson, (2016) Licensing is also a good way to expand
the business and in this process company provide rights to other local company to perform
business on behalf of them. Franchising method is used by moistly restaurant chains but not by
core product manufacturers. Partnership is also considered as one of the best way to perform in
new market with high efficiency because the local partner are aware of local market and
customers. In joint venture company perform the business by forming a third company to
perform respective business. For he larger companies who do not want to spend too much on
infrastructure in at new place use this method to take over another company to conduct business
activities. For all different method the strategy is decided by the company to full fill terms,
condition and requirement of collaboration.
Risks of Entering New Market
In business expansion there are various types of risks that are faced by the organization to
conduct business practices. AS per the view of Hirst, Thompson and Bromley, (2015) most risks
faced by the business organization are not related to finance and processed of company but the
factors that affect the business are related to new market and competition, local economy,

different standards, employees, language and communication gap, uncontrolled money flow.
Main issue faced by the organization are related to the communication and to change the current
standards of company according to new location. Legal and political factors and policies are
different in other countries this can affect the business management of organization. This is most
difficult for organization to face new competitors in new market and plan strategy according to
condition and market share of competitors. High competition can lead to business and financial
failure. Company also need to spend high capital to gain market share in target market. In
international market organization is highly dependent on relations between nations and their
foreign policies. A small change in the foreign policy can cause large damage to the
organization. These are some risks that are faced by the organization in process of globalization.
Reason of globalization for business organization
Baylis, Smith and Owens, (2017) has analysed that globalization can help different
organization to improve their business profits. These advantages of globalization attract various
companies to expand business of company in international market. These drivers of globalization
are larger option to get talent, improve communication access process of company, reduce the
issues related to tax issues, help in growth of company, reduce currency manipulation problems
and encourage the companied to free trade. When an organization go for globalization they get
better chances to select highly skilled and qualified employees from different areas. For different
operations company requires labour with different skills. These skills are essential for
organization to meet company targets. On global platform organization get large number of
option in selection of skilled and this selection choice help the particular company to gather
skilled workers for organizational tasks.
AS per the view of Hirst, Thompson and Bromley, (2015) Normally companies face different
troubles in communication while they are conducting business outside the nation. Globalization
allows them to get aware of new language to communicate with other people and organization in
order to improve the productivity and performance of organization in international market
conditions. When a company conducts international level business they need to pay different
taxes to both countries. If company open ups a branch of company in other country then it will
save a lot of cost for the company cause this will amount of tax they have to pay to two nations.
Main purpose of internationalization is to improve growth of company and earn larger profit
from the operation of company. By working in different areas company gains high experience to

work with different work culture. Value of currency is depended on the international economy.
For each nation the changing rate is different so globalization provides opportunities to deal with
these issues in separately. International level of operation reduce the transportation and cost of
raw material to the company..
To analyse the benefits of a business entering UK markets
According to Benería, Berik and Floro, (2015) different marketing strategies are used by
companies to enter a new market and this methods comes with different advantages. These
advantages drive the success and performance of organization in international market. Licensing
is considered as one of the best method to move the company to global market. Main advantage
of licensing is related to the infrastructure, business management and employees with skills and
knowledge of field. When an organization provide right to other company to perform business.
This can save a lot of cost for company because the other company that performing on behalf of
organization already consists of enough resources to perform the business and certain amount of
profit will directly go to the business organization. This is how organization get pure benefits
from operation of other company.
AS per Ritzer and Dean, (2015) in franchising company higher local vendor to conduct
business of company with administration power and profit is split in proper ratio that is decided
by both organization and local vendor. These reduces cost to the company of recruitment of
employees and in building infrastructure. Partnership used by the organization that are coming
together for something bigger project and this strategy help both companies to split profit and
investment. The main benefit of this strategy is risks and failures are also equally divided in both
companies. This prevents both company from huge loss. Joint venture is good for the companies
that are working in technological industry. This type of venture will allow them to combine their
technology to get better output form the third company that is joint venture of both individual
companies.
Macedo and Gounari, (2015) have evaluated that Buying a company can also be
considered as an effective method to go on the international platform. In this process company
buys a preoccupied company in target country and use their infrastructure to perform business
and that provides advantage to the company to save time and money which is required in
establishing process of new branch of company at new place. This will also provide information
data base of local market that can be used by the company to make contact with local suppliers

and customers. That is how the organization use leverage of these methods of expansion for
globalization of company to improve brand value and profit of company.
Methods to Reduce the Risk of Globalization
According to Payne and Askeland, (2016) organization can use different methods to
support globalization in effective way and reduce the negative impact of globalization. One
aspect of globalization is related to the economy of company. This is important for them to
manage the accounting process of company in right order to maintain financial condition stable.
Risk calculation and preventing actions of organization can keep the company stable in process
of internationalization. For the large size organization it important to manage communication
with the political body of country to minimize the level of risk in operations by making
discussion with other nations. Company also can perform a market research to get aware of local
market conditions to start implementation of globalization procedure. By following corporate
social responsibilities company can minimize different issues that are related to cultural and
environmental conditions. This will also support the organization to gain trust of local customers.
Deep planning and managing operation also can reduce the negative impact of risks that arr
present in process of globalization.
Ways to improve globalization of Steviva Brand, Inc
For a small and new organization it is difficult to move on the international platform. By
using different effective policies company can improve the globalization process. Globalization
process is consists of various steps and these steps lead to the success of globalization plan.
Different factors affect the business of company on global platform and by considering this
factors negative impact of these factors can be minimized. By monitoring political issues of
country company can plan alternative method to keep the organization effective in international;
market. Effective planning is also important for company to perform globalization. Company can
reduce the level of risks by using different management and planning tools for effectiveness of
globalization.
Chapter 3 Methodology
Methodology can be referred to as systematic plan which can be applied for performing
investigation in systematic manner. It is the selection of an appropriate research methodology on

which outcome of research is based. The various methods which has been used by investigator
for conducting investigation on particular topic are:
Research type :There are two types of research such as quantitative and qualitative research.
Qualitative research is type of research which involves the scientific method of observation in
order to gather non-numerical data; it is used to gain an understanding for underlying reasons,
motivations and opinions (Silverman, 2016.). Qualitative research assist in depth understanding
of issue or a problem in a natural setting. Qualitative research refers to meanings, definitions,
concepts, characteristics, symbols and description of things but not their measures and counts.
Quantitative research is a type of research which is a structured way of collection of data and
analysing the collected data in order to draw a conclusion.
Qualitative investigation has been performed by researcher in present study. Specific type
of investigation has been executed by researcher as it provide proper insights in to a problem.
Research approach:Research approach is procedure or a plan that consists of number of steps
of broad assumptions about techniques which can be applied for aggregating, analysing and
interpretation of data about the subject (Steger, 2017.). Research approach can also be divided in
to three major categories such as deductive research approach, inductive and abductive research
approach. Deductive research approach is a type of research approach which is considered with
the development of hypothesis that are based upon the existing theories Inductive research
approach is a research approach which starts with observations and theories proposed towards
the end of research and are considered as result of the observation. Abductive researcher
approach is a type of research approach that begins with surprising puzzles related to fact and
research process is devoted for explanation. In this study inductive research approach is used as
this approach helps investigator in development of new hypothesis.
Research design : It may be defined as set of various procedures and methods which are utilized
by researcher for collection of data and assist in analysing the measures of variables that are
specified within a problem. It is the framework of various techniques and methods that are
chosen by researcher in order to combine the various components of research in logical manner
so that research problem can be easily handled It can be divided in to three different categories
such as exploratory, descriptive and causal research design. Exploratory research is a type of
research which is conducted for a particular problem which has not been studied
clearly ,descriptive research is a type of research which helps in describing the characteristics of

a population which is being studied. Causal research assists in developing the understanding
about relationship between cause as well as effect. The exploratory research design has been
applied by researcher as it assist them in gaining the in depth knowledge about the subject which
can be further helpful in making decision.
Research philosophy:It is a belief related to way by which a data about any phenomenon should
be gathered and analysed and used. It is considered as an important part of a research
methodology and can be divided into three categories which include Realism, positivism and
interpretivism. The researcher in present investigation has utilized interpretive research
philosophy as it assist in investigator in interpretation of information related to topic.
Sampling : Sampling may be defined as a process which is used in a statistical analysis as
predetermined number of observations is taken from a huge population. In simple language
sampling refers to a process of selecting members from a population to involve them in study.
The two type of sampling techniques which are generally applied by investigator is probability as
well as non-probability sampling (Kumar, 2019.). Non probability sampling is a technique or
method in which the individuals do not get equal chance of being selected. Probability sampling
is a type of sampling method or a technique which is chosen from large population. Within the
study, researcher uses random sampling technique as it is easy for a research to choose a sample.
The total sample size selected by a researcher is 50 participants which are the employees of
Stevia corp.
Data collection : Data collection is a systematic approach for gathering information related to
topic. There are two types of data collection methods which a researcher can use one is primary
data collection method and second is secondary data collection method. Primary data collection
method is a method in which data is collected by a researcher using different techniques such as
interview, survey, questionnaire and observation etc. Information gathered from the primary
source is considered to be as more reliable (Ledford and Gast, 2018.). In secondary data
collection method a researcher collects a data which is already available; it is easy to collect and
is less expensive. In this study researcher has accumulated data from both primary and
secondary sources. Interview technique has been applied by investigator for gathering data
related to topic. Questionnaire form consist of both open-ended and few close ended questions.
In context of present study, researcher has applied the semi-structured interview technique in
order to provide participants with freedom to share their opinions. Other reason because of which

investigator has chosen semi structured interview is that it enables interviewer to prepare
themselves as well as appear competent during the interviewing procedure (Mackey. and Gass,
2015. ). In addition to this, specific technique has been applied by investigator as semi structure
interview technique assist researcher in collecting more reliable data. Online articles, magazines
and newspaper has been used by investigator for gathering the secondary data. In relation to
present study, researcher has utilize both the sources in order to gather detailed information
about subject.
Data analysis: Data analysis is one of the most important parts of research as it is the process of
applying a logical technique or statistical tools in order to describe evaluate, illustrate data. It is a
process of inspecting cleansing, transforming and also modelling of a data with a purpose of
achieving a useful information which can be helpful in context of making suitable decision. The
two most popular techniques which are utilized by investigator are qualitative as well as
quantitative technique. In relation to present study, investigator has applied the qualitative
technique. Specific technique has been used by researcher as it provides them an ease in
analysing the information (Flick, 2015.). In addition to this, thematic analysis has been also
applied by researcher in present study, theme has been designed considering the answers
provided by investigators. This technique has been used by investigator as it helps them in
identification of the way answer being provided by participants.
Questionnaire
Name:
Position :
Department :
Ques Which is the best way through which an organization can enter into international market ?
 Franchising
 Joint venture
 Strategic alliance
Ques What is the main risk associated with launching business in international market ?
 Product Failure.

 Market Risks.
 Technological Risks.
Ques What is the main benefit firm can gain by expanding business in UK ?
 Increase Revenue potential.
 Increase in customer base
 Access to New market for selling product
Ques. Which is the best strategy that can be utilized by firm for reducing the chances of risk in
launch of Stevia in global market?
 Market Research.
 Risk Analysis
 Risk Management Plan.
Ques: Do you think that product will face high competition in international markets?
 Yes
 No
 Not sure
Ques: Which marketing strategy should be followed by the company to generate awareness
about new product in international markets?
 Print media
 Banner and Hoardings
 Social media marketing
Ques : what is the main issue faced by your organization in relation to expansion of business in
global market?
 Physical Distance
 Unfamiliar culture
 high tariff as well as export fees