CafePod Coffee Co.: Strategies for Success in International Markets

This report provides an analysis of CafePod Coffee Co.'s international business expansion strategy, focusing on the importance of cross-cultural management for success in new markets. It reviews relevant literature on international marketing strategies, highlighting the need for understanding local customs and adapting business practices accordingly. The report discusses various market entry modes, including exporting, licensing, and strategic alliances, and emphasizes the significance of SWOT analysis in identifying opportunities and mitigating risks. It also explores the challenges and benefits of managing a multicultural workforce, emphasizing the importance of effective communication, employee training, and conflict resolution. The report concludes by underscoring the need for CafePod Coffee Co. to adapt its strategies to align with the cultural expectations of the target market in Asia to achieve sustainable growth and competitive advantage. Desklib offers a wealth of similar resources, including past papers and solved assignments, to support students in their academic pursuits.

International business

Executive Summary
International business can be defined as the actions taken by business organisation so that
they are able to expand their operations in business environment. It is not easy to expand the
business, there are various opportunities and challenges that might be faced by the company at
the time of expansion. In this report, a local company is being selected that wants to expand the
business in international market. The requirements of the market and being analysed and all the
strategies that will help them to attain success are being evaluated. The review of literature in
relation to strategies of marketing organisation are being studied. The opportunities and risk that
arise in cross cultural management are part of the report. The actions taken by management must
be analysed so that the company is able to attain success.

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Literature Review.............................................................................................................................3
Analysis and Discussion..................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10
Books and Journals...............................................................................................................10

INTRODUCTION
The business environment is dynamic and it keeps on changing. There are various business
organisations that are planning to expand their business in international market. In that there is
difference in the local market and the traditions and cultures in international market. There is
need of understanding the culture of the place and adopting the working style of the place so that
they are able to achieve success (Caligiuri and et.al., 2020). This report is based on CafePod
Coffee Co. The business organisation is headquartered in UK and was established in 2011. They
are now planning to expand the business in international market. They provide quality coffee to
the customers so that they are able to enjoy. This report is based on the importance of cross
cultural business management and it helps the company to gain advantage over the competitors.
They must adopt right strategy that would help them to attain success in international market.
The opportunities and risk of entering in international market are being analysed and help to
attain goals and objectives successfully. There are several ways of entry and selecting best
among them is being analysed in the report. The risk involved while international market must
also be minimised so that real success can be achieved.
MAIN BODY
Literature Review
According to Mol and Brandl, 2018, international business marketing can be defined as entering
in internal market to carry on the business. For that purpose, there is need of analysing the needs
and wants of the customers. The economic condition of the nation will be different and there is
need to provide best so that success can be accomplished. It is seen that, CafePod Coffee Co. is
planning to expand their operations in Asia and for that reason it is important to know that the
cultural expectations of the society are different. The company needs to analyse the social culture
needs of the customers over their so that they are able to cater their needs and wants. It is being
analysed that in Asia the businesses are allowed to expand and various subsidies and options are
being given to them. There will be a political support being provided to the organisation trying to
enter the market. It is important for CafePod Coffee Co. to analyse all the factors that shape their
business and will help them to achieve success. By emphasize on their major strengths the
business organisation will be able to compete in international market as well.

As per Lund, Hansen and Lindgreen, 2019, There are various components that have direct
impact on the operations of a firm in international market. First of all, there is need of proper
research so that the best growth opportunity for the organisation can be analysed. It is seen that,
the main barrier that arise is related to language. The language used in international market is
different and that is the reason the process of interaction becomes complex. Each and every
business organisation needs effective communication in order to attain goals and objectives. And
other factor is the education level of people. The qualification of the customers has direct impact
on the success of the CafePod Coffee Co. so it is also important to first select the target group of
customers that can be served. It will help them to attain the success in a better way. The religion
and values followed by the people must also be considered. At the time of selling coffee in the
international market it is important to know about the requirement of the customers. It is
important to build relation with customers over their by knowing about their customs and
respecting the same (Nippa and Reuer, 2019) Providing proper value to the customers helps the
company to attain success in the international market advantage over the competitors. At present,
there will be various business organisation that will be providing coffee over there. By providing
something unique the CafePod Coffee Co. will be able to attain success over the competitors.
According to Veronica, Shlomo, Antonio and Victor, 2020, All the major decisions
related to expanding are based on studying the culture of Asia. The people over there like to
build relation and like to sit and enjoy at the place. They believe in socialising and working
together so that they are able to attain success. It is examined that, there is need to conduct in
depth study so that right decision related to changes in product can be made. There is need of
proper communication so that they are able to attract the customers. There is requirement to learn
about the customs of that place and then provide the customers according to the same. The
culture of organisation that will help CafePod Coffee Co. must be studied. Along with that, they
will hire the employees of the nation. The company needs to respect the employees and
understand the requirements of them so that they are being valued.
As per Bolwijn, Casella and Zhan, 2018.To select the best market in which the business
organisation must expand can be done by conducting SWOT analysis. It is seen that the CafePod
Coffee Co. serves quality coffee and are able to satisfy the customers of UK. At the time of
entering international market there is need to work on the strength. The taste of the coffee will
help them to attract the customers and serve them in proper manner. It is necessary to note that

the quality of coffee will assist help CafePod Coffee Co. to attract the target customer. They are
planning to serve the customers of age group 16 to 35. The friend will come for entertainment
and the professionals can also come to carry on the meetings over there. By targeting right set of
customers the CafePod Coffee Co. will be able to serve the potential customers.
According to Aagaard, Aagaard and Harrison, 2019, There are various ways of entering in
international market. It is necessary to analyse all the modes of entry so that they are able to
choose the best one and attain success.
Exporting: It is one of the easiest way to enter the international market. It is one of the most
famous international expansion mode. Under this method business organisation directly sell the
product to the foreign countries that are most from the home country. The main advantage of this
mode is it reduces the expenses of operating in new country. It is important for the firm to
distribute the product in new country through a contractual agreement with the help of a local
distributor (Horak, Farndale, Brannen and Collings, 2019). So that the products are delivered
effectively to the international market and they are directly able to enhance the sales.
Licensing and franchising: It is a mode of fast entry that help the business organisation to start
their operations by giving licence to organisation over there. It has low cost and organisation
does not face much risk. The firm opens the business in the same manner it used to be in local
market so that sales can be enhanced.
Partnerships and Strategic Alliances: The next way to enter in new market is strategic alliance
with a local partner. The contractual agreement between two or more enterprises that are
involved to work for a certain period of time to achieve a common purpose. This check the
suitability of both the forms and decide to partner with each other so that they are able to attain
success. Advantages for the local form as they are able to directly launch their product in the
international market and then do not need to understand the culture of the place (Paul and
Criado, 2020). They just have to invest money and the local partner will analyse all the situation
and research properly the needs and wants of customers and it will help them to serve the needs
and wants of customers properly. It is beneficial for small enterprises to invest in the business
and enter the local market successfully.
It is necessary to take proper care of the workplace policies. The business organisation must
provide best workplace policy that is suitable for the company so that there are best working
environment in that place. They best way to communicate with the employees must be analysed

so that there is accomplishment of objectives. There is need to provide training to the employees
so that their skills can be enhanced. At the time of working ion international business
organisation there are chances of conflicts. The employees also face issue in working in the
environment and there are various barriers to trade. The need to deal with all the employees in
necessary. Motivating them on regular basis assist the company to attain success (Aguilera,
Crespí-Cladera, Infantes and Pascual, 2020). There is need to provide them reward for the good
work that is done by them so that real advantage can be achieved. If all the employees can work
together and does not face the issue of conflict, then the real success of company is achieved.
There is need of proper management so that all the activities can be attained properly. The use of
all the functions properly CafePod Coffee Co. will be able to attain success. If the cross cultural
differences can be analysed properly and deal with in proper manner and company will be able to
attain objectives.
Analysis and Discussion
Cross culture refers to the efforts of company that help them to ensure that all the people interact
with each other no matter they are from which background. CafePod Coffee Co. are operating
and global level and there is enhancement in cross culture management by the company
organisation is entering Asian market and planning to attract customers. It is necessary for them
to understand the ethnic differences as well as regional issues that may be faced by the company.
By managing the cross culture of the company they will be able to keep the employees satisfied
and attain goals and objectives effectively. The various opportunities in this field are discussed
below:
 By starting a business in international market the creativity is enhanced and the different
viewpoints give rise to success of the business (Asemokha, and et.al., 2019). It helps in
driving innovation and creativity. Needs and wants of the customers are sold in better
manner and the exciting ideas can be find out.
 Multicultural workforce capable of understanding the needs of new market. In order to
achieve success overseas they analyse the laws and regulations, customs, competitive
landscape of the place so that they are able to boost the capability of their business
organisation. They have extra capability is that help them to gain competitive advantage
and are able to understand the needs of customers in better manner.

 The diversity of team members in and the productivity of the company. Each of them
have different ideas that have to solve the problem and issues of productivity can also be
solved (Jancenelle, Javalgi and Cavusgil, 2019). Teamwork helps to enhance to give rise
to healthy competition and this help to efficiency in the organisation.
There is need to understand there are certain risk that can also be faced by CafePod Coffee Co.
due their operations in international market. It is necessary know that all the risk can be
overcome by proper management. The various risks are as follows:
 There are chances of conflicts. In that all the employees have different opinion and
belong to different nation. The cultural differences in conflicts among employees and the
decision-making process can be delayed. It will also hindrance the team working skills of
the employees. It is seen that they have different opinion and this will cause problem to
work together. (D’Angelo and Presutti, 2019) The management of CafePod Coffee Co.
must provide them proper training to work in team with which they are able to manage
cross culture of the organisation. It is necessary to provide best employees so that all the
tasks are achieved successfully.
 The process of professional communication is also difficult to understand. Barrier to
language are faced by the employees and the environment of office also gets disturbed.
Sometimes there is issue of misunderstanding and offences among the team members that
belong to different countries. There is need to provide basic training related to language
in the starting of hiring employees (Ye, Lu, Flanagan and Ye, 2018). And some gestures
must be fixed so that there is no problem faced by the employees while working in
organisation.
The real success of CafePod Coffee Co. lies in the hands of the employees so it is important
to minimise all the risk that may arise at the time with the help of proper management. By
understanding the employees and providing them proper training whenever required help the
company to stablished operation successful in the market. Because after the employees are
satisfied they will be able to enhance the production in efficiency of the organisation that will
assist the company in attaining goals and objectives and satisfying the customers better.
There are some recommendations that will help CafePod Coffee Co. to attain success. The
proper actions that must take by a company and its management are as follows:

 First of all, there is need to analyse the needs and wants of the customers that are
available in market. The problem that is faced in the international market must be
analysed so that the company is able to provide the solution. A proper research is key to
success. The company must try to know about the customers of the place and the customs
and values that are being followed by the company.
 Afterwards, there is need to conduct proper analysis of environment. The CafePod Coffee
Co. must work on the strengths and weakness so that the read advantages can be
achieved. It is required to work on the strengths and weakness of the company so that
they are able to provide best. The competitive analysis will help the CafePod Coffee Co.
to know about the strategies being adopted by the company. It will help them to carry on
the business properly and attain advantage over them.
 It is important for the company to know about the best expanding strategy that is
available. The business organisation must know about the best option of expansion that
will be more advantageous for the company. This will help them to attain success in the
market. There is need to provide best strategy so that business organisation is able to
attract the customers and serve them.
 There is requirement of setting budget so that there are no financial problems faced by
the company. The finances can be arranged in proper manner so that there is no issue
faced by the company in the end. It is necessary to understand the differences in the
employees and culture so that they are provided good working culture. By providing best
to the employees and then helping them to enhance production real success of the
company can be accomplished.
 A right marketing strategy that will help the company to spread awareness is important. It
is necessary to use best promotional strategy so that the company is able to reach more
customers. There are changes that place in the environment and by taking care of
customers and providing them best message the CafePod Coffee Co. will be able to attain
success.
CONCLUSION
From the above report, it is analysed that international marketing plays a major role in
success of a business organisation. It is seen that there are changes taking place in the
environment. The company or able to operate good in local market and have achieved growth

and success but to work effectively there is need to expand their business operations in
international market. There are certain issues that are being faced by them and one of them is
cross cultural management. This report is based on review of literature that is based on the
opportunities that might be good for the company. It is important to know about the key elements
that will help the company to expand their business. Afterwards the marketing strategy that can
be used by the company is also analysed and the various options of expansion available for the
company or mention. The use of theories will support the business organisation to extend their
operations in international market and literature review related the same is also part of this
report. There is analysis related to cross cultural opportunities being available for the business. Is
important to note that there are various challenges faced by the company that are examined and
the actions that will be taken by management in order to minimise the risk mentioned in the end
of this report.

REFERENCES
Books and Journals
Aagaard, A., Aagaard, A. and Harrison, 2019. Digital Business Models. Cham: Springer
International Publishing.
Aguilera and et.al., 2020. Business groups and internationalization: Effective identification and
future agenda. Journal of World Business, 55(4), p.101050.
Asemokha, A., Musona, J., Torkkeli, L. and Saarenketo, S., 2019. Business model innovation
and entrepreneurial orientation relationships in SMEs: Implications for international
performance. Journal of International Entrepreneurship, 17(3), pp.425-453.
Bolwijn, R., Casella, B. and Zhan, J., 2018. International production and the digital economy.
In International business in the information and digital age. Emerald Publishing Limited.
Caligiuri, P and et.al., 2020. International HRM insights for navigating the COVID-19
pandemic: Implications for future research and practice. Journal of international business
studies, 51, pp.697-713.
D’Angelo, A. and Presutti, M., 2019. SMEs international growth: The moderating role of
experience on entrepreneurial and learning orientations. International Business Review, 28(3),
pp.613-624.
Horak, S., Farndale, E., Brannen, M.Y. and Collings, D.G., 2019. International human resource
management in an era of political nationalism. Thunderbird international business review, 61(3),
pp.471-480.
Jancenelle, V.E., Javalgi, R.R.G. and Cavusgil, E., 2019. Cultural entrepreneurship and
legitimate distinctiveness in international prosocial crowdfunding. International Business
Review, 28(4), pp.802-810.
Liu, X., Xia, T., Jiangyong, L. and Lin, D., 2019. Under what institutional conditions does
overseas business knowledge contribute to firm performance?. International Business
Review, 28(3), pp.588-602.
Lund-Thomsen, P., Hansen, M.W. and Lindgreen, A., 2019. Business and development studies:
Issues and perspectives (pp. 3-14). Routledge.
Mol, M.J. and Brandl, K., 2018. Bridging what we know: The effect of cognitive distance on
knowledge-intensive business services produced offshore. International Business Review, 27(3),
pp.669-677.
Nippa, M. and Reuer, J.J., 2019. On the future of international joint venture research. Journal of
International Business Studies, 50(4), pp.555-597.
Paul, J. and Criado, A.R., 2020. The art of writing literature review: What do we know and what
do we need to know?. International Business Review, 29(4), p.101717.
Veronica, S., Shlomo, T., Antonio, M.P. and Victor, C., 2020. International social SMEs in
emerging countries: Do governments support their international growth?. Journal of World
Business, 55(5), p.100995.
Ye, and et.al., 2018. Diversification in the international construction business. Construction
management and economics, 36(6), pp.348-361.