International Business: CafePod Coffee in Sweden - BABS Assignment

This report provides an analysis of international business, focusing on the opportunities and risks associated with CafePod Coffee's potential expansion into Sweden. It reviews relevant literature on internationalization, cross-cultural challenges, and management strategies. The report identifies potential opportunities such as access to new markets, diversified revenue streams, and competitive advantages. It also highlights risks like currency fluctuations, cross-cultural misunderstandings, and commercial challenges. Management responses to capitalize on opportunities and recommendations for achieving cross-cultural proficiency, including enhancing cross-cultural competence, developing intercultural relationships, and understanding the local culture, are discussed. The analysis concludes that while international expansion offers significant potential, careful planning and risk mitigation are crucial for success. Desklib provides similar resources for students.

International Business

Executive summary
International business is related to situation in which production as well as distribution of goods
and services are happened across national boundaries. It is cross-border transactions of goods
and services between two or more countries. In international business transactions of economic
resources, capital, people are included for the purpose of international production of physical
goods and services. The main purpose of this report is to identify key factors that are considered
by the organisation to conduct business operations at international level. This report covers
various opportunities and risks that are faced by the organisation to in the process of
internationalising business in different countries. Along with that management responses to
achieve available opportunities in international market and methods to achieve success and
cross-cultural proficiencies are mentioned in this project report.

Table of Contents
Executive summary .........................................................................................................................2
INTRODUCTION...........................................................................................................................4
Literature review .............................................................................................................................4
Analysis and discussion ..................................................................................................................7
CONCLUSION .............................................................................................................................10
REFERENCE.................................................................................................................................11

INTRODUCTION
International business is defined as the trade of goods, technologies, knowledge and
capital across national boundaries or at international level. In global businesses cross-border
transactions of goods and services are included between two or more countries.
Internationalisation of business facilitates local business to expand their customer reach, market
and revenue. Business faces various opportunities as well as threats in the process of expanding
business operations at global level. It provides various various competitive advantages to
organisation and develop effective brand image at international level (Arnold, Beauchamp and
Bowie,2019). In this report chosen organisation is CafePod Coffee which is established in the
year of 2011 by two entrepreneur Brent Hadfield and Peter Grainger. Respected organisation is
independent business which is related to coffee and headquarter situated in London, England,
UK. CafePod Coffee organisation is planning for expanding business in the country of Sweden
which is high class country and provides various facilities to new business to run their operations
efficiently. This report covers various risks and opportunities that are faced by organisation to
operations operations in cross-cultural environment. Management responses to face challenges in
international business are mentioned. Along with that recommendations for organisation to
achieve cross-cultural proficiency to attain success in international market place are explained in
this project report.
Literature review
Potential opportunities and risks of doing business in such cross-cultural environment can be
effectively managed
According to views of Aykol, and Leonidou, (2018) international business is related to providing
organisational products, services, technologies and others things across national boundaries that facilitates
business to attain competitive advantages and expand business operations in wider market place.
Internationalisation of business activities helps business to gain various opportunities that help business to
explore business in different market areas and attract large number of customers towards organisational
products ans services. CafePod Coffee organisation take decision to expand business operations in
Sweden through providing its products that help business to gain wider market and customers. The top
most advantage of internationalisation of business is that it facilitates business to gain number of potential
clients that open up a path way for business to business growth as well as increase organisational revenue.
CafePod Coffee organisation adopt various strategies of internationalisation that help business to gain

competitive advantages. Through expanding business operations in international market is also the
opportunity for business. It helps business to manage cash flows that enable business to sustain in
international market for long run and ensure business growth and development. Respective organisation
gain the opportunity through conducting business operations in Sweden because it business to gain
diversify market and customers that help business to manage risk that are faced by organisation in single
market.
As per the views of Bolwijn, Casella and Zhan, (2018) becoming less dependent on single market
helps business to mitigate risk that are consisted by core market that are related to downturn in home
country economy, political factors, environmental factors and other risk factors. Internationalisation
facilitates business to have the outlet to dispose of surplus goods which are unable to sell in home market
of organisation. Conducting business activities at international facilitates business to boost its reputation,
raise business profile as well as enhance organisational capability to explore in both home and abroad
market. Respective organisation analyse these opportunities and grab them efficiently to ensure business
growth and development in international market. International business provides opportunity to business
through accessing nee and right talent pool that helps business to gain unique advantages because it
increases business productivity as well as performance level. CafePod Coffee organisation attain foreign
investment opportunities through expanding their operations at international level. Internationalisation
provides various competitive advantages to organisation over other competitors because business can
provide various its products and services to large customer base and achieve the objectives of higher
profitability.
Risks of doing business in such cross-cultural environment:
According to views of Giambona, Graham and Harvey, (2017) in the process of expanding
business operations at international level business faced various risk that impacts business
operations and activities in negative manner. International risk are defined as the possibilities of
loss that are caused by the unfavourable or undesirable events that are take place in international
market. Some major risk that are faced by CafePod Coffee organisation are cross-cultural risk,
country risk, currency risk and commercial risk. Currency risk is related to risk of adverse fluctuation in
exchange rates that impacts business financial positioning in the market of Sweden. Cross-cultural risk is
the situation or event in which cultural miscommunication put some human value and stakes.
According to views of Hung, Kim and Li, (2018)it is posed by differences in lifestyle, customer,
religion, language and various other that create difficulty for business to operate functions. Commercial
risk impacts CafePod Coffee organisation functioning because it is the potential loss or failure from
poorly developed and executed strategies (Benefits of international expansion, 2021). The country
risks are related to the country policies and conditions that adversely affect organisational operations and

profitability. Sweden political, economical, government inventions are different from UK that impacts
business functionality. Respected organisation faces financial risk as cash-flow is the biggest concern that
are faced by CafePod Coffee organisation in the beginning of internationalise business operations.
Respective organisation analyse these risk and challenges and develop effective policies to mitigate them
in efficient manner.
Management responses that should be undertaken by organisation to realise the opportunities
available in international market
Management department of CafePod Coffee organisation takes various actions and responses to
realise as well as gain the opportunities that are available in international market. Actions and strategies
of management facilitates business to run business operations in efficient manner and grab opportunities
that enable business to attain competitive advantages. Managers of respective organisation develop
various strategies and policies to smoother functioning of business in the market of Sweden. Managers
concentrates on hire potential staff and provide them training that enable them to perform their defined
operations in most efficient manner.
According to views of Iddagoda, and Opatha, (2017)managers analyse all conditions and
situations of Sweden then develop policies which ensure efficient working of business in international
market and ensure business growth and development. As international market provides opportunities to
business to through provide wider market and large customer base so, management of organisation
analyse current market trends and needs and demands of customers to satisfy them with organisation and
retain for longer period of time. Managers ensure them all strategies and policies are properly
communicated to to all staff members so they can attain desired outcomes. CafePod Coffee organisation's
managers take risk as well to grab market opportunities that are situated in Sweden. Respective
organisation's management manage conflicts that are raised that make sure efficient working of business
in international market as well as CafePod Coffee organisation develop effective network with local
suppliers of Sweden that help business to gain competitive advantages and attain opportunities that are
raised in international market.
Suggest practical and justified recommendations to achieve cross-cultural proficiency which is
essential in achieving success in the international market selected
According to views of Koponen, (2019) it is important for organisation to analyse market
conditions as well as cross-cultural conditions of business that enable organisation to gain
proficiency and ensure business growth and development. There are various recommendations
are provides that help business to achieve cross-cultural proficiency which is important for
business to attain the objective of success in the market of Sweden. It is recommended to

organisation to enhance cross-cultural competence through improving the ability of workers to
understand, communicate as well as interact other people in different culture and be polite with
customers, clients and suppliers that help business to conduct its operations in efficient manner
and gain success in the market of Sweden. Cross-cultural competence help business to attain
competitiveness, responsiveness and innovativeness that enable business to sustain in
competitive business environment. It advised to CafePod Coffee organisation to concentrated on
developing intercultural relationship that help business to perform operations in efficient manner. It is
recommended to organisation to understand the culture of Sweden and manage staff members attitude
towards culture then enable them to serve better properly to enhance customer's experience with
organisation.
According to views of Lorenz, Ramsey and Richey Jr, (2018) it is recommended to organisation
to develop reliable information sources that helps to business to gain information regarding country
culture, market trends, customers needs and requirements which help business to run operations with
efficiency and effectiveness as well as gain cross-cultural proficiency. It is advised to organisation to plan
cross-cultural communication as well as gather feedbacks of customers form organisational products that
enable CafePod Coffee organisation to make changes in products according to demand of customers. It
advices to organisation that it should hire local employees of Sweden because they have knowledge and
understanding of cultural environment of respected country so they can handle customers of Sweden in
more efficient manner. It helps business to gain cross-cultural proficiency and success in international
market.
Analysis and discussion
Potential opportunities of doing business in such cross-cultural environment
From the above explanation, it is analysed that cross-cultural business environment
provides various opportunities and chances to business that help business to expand their
operations in efficient and attain success in international market. It is analysed that,
internationalisation of business operations in Sweden helps business to increase revenue that lead
business towards attaining growth and development. CafePod Coffee organisation expands
business operations Sweden and provides quality coffee products to customers with unique taste
that attract wide customer base and decrease competition as well as help to gain various
sustainable competitive advantages (Shijaku, Larraza-Kintana and Urtasun-Alonso,2020). It is
analysed that conducting business operations at international level help business to manage the

flow of cash and risk in efficient manner. Business gain new market other than home country to
provide its products and services that enhance business sales and profitability ratio.
CafePod Coffee organisation diversify its assets and operations in Sweden that facilitates
organisation to reduce the level of risk and gain advantages that lead business towards success and
development. Globalisation provides opportunity of accessing new talent pool that enhances
organisational productivity and performance level in different market place. Respective organisation gain
competitive advantages over other opponents through first-mover in market (Mouna and Anis, 2017). It
has been analysed that internationalisation help organisation to access new technologies which improve
their operations. CafePod Coffee organisation get additional investment opportunities that are offered
by the foreign market. Organisation realised all these opportunities and take necessary steps and actions
to grab them in efficient manner.
Risks of doing business in such cross-cultural environment
Along with opportunities, cross-cultural business environment provides various risk and
challenges that have capability to influence and affect business operations and functionality in
adverse manner. It is important for business to analyse these risk and challenges that are raised in
the process of internationalisation process. It is analysed that CafePod Coffee organisation majorly
faces various risk such as currency risk that are raised due to currency exposure, foreign taxation, asserts
valuation and inflationary and transfer pricing that impacts business policies and operations in Sweden.
Respective organisation also influenced by commercial risk that consist various problems such as weak
partners, timing of entry, poor execution of strategies, competitive intensity as well as different kinds of
operational problems. Cross-cultural risk is the greatest risk that are faced by the CafePod Coffee
organisation in expanding business operations in Sweden that are related to cultural differences, decision-
making style, ethical practices and negotiation patterns. Along with that, country risk and consist
government in interventions, legislations that are not in favour of foreign firm and political as well as
social unrest or instability. All these risk and challenges are analysed by analysed by the organisation
before entering in international market place. Proper evaluation of these challenges help business business
to develop effective policies and strategies for mitigating them in efficient manner.
Management responses to realise the opportunities available in international market
Management department of CafePod Coffee organisation take various actions to identify the
opportunities that are available in international market. Managers of organisation conducts competitive
analysis to identify competitors their products, services, pricing policy and others factors to gain
competitive advantages. It is analysed that respective organisation access or explore different market
opportunities and different environmental factors and develop policies accordingly that enable business to

run business operations in smooth manner and attain determined goals and objectives in efficient manner
(Muralidharan and Pathak, 2017). CafePod Coffee organisation talk to current customers for analysing
their needs, demand and preferences that help business to provide them products that satisfy their needs as
well as provide different market opportunities. Respective organisation hire hire local employees from
Sweden that have capability to serve all customers in efficient manner and handle their complaints
because they are familiar with local culture.
Managers of CafePod Coffee organisation ensure them proper training is provided to employees
so they can perform defined operations with effectiveness. Respective organisation's managers take risk
to attain opportunities of international market as well as develop back-up plans to handle critical
situations in efficient manner. Management ensure that all strategies and planning are communicated at
each hierarchical level of business and influence team members to perform according to planning that
help to business attain desired goals and objectives in efficient manner. Risk are the possibilities of loss
that are caused by the different unfavourable and undesirable events that have capability to impact
business operations at international level.
Suggest practical and justified recommendations to achieve cross-cultural proficiency
Organisation expand their operations at international level for attaining higher market
share as well as large number of customer base that help business to explore its operations and
improve profitability. There are various recommendations and advises are provided to business
that help it to attain cross-cultural proficiency and success in expanded market place. It is
recommended to CafePod Coffee organisation to enhance cross-cultural competence in business culture
that improve business capability to understand people of different culture as well as engage them with
organisation that help business to attain success in the market of Sweden (Parc and Kim, 2020). In
international business being able to communicate and work with people across culture is important in this
competitive business environment.
Cross-cultural competence facilitates business to develop mutual understanding and create
effective human relationships which are necessary for attaining professional goals and objectives. It is
advised to organisation to stay concentrated on goals through developing intercultural relationships that
help business to attain success in cross-cultural environment. It is important for organisation to
understand the culture and values of Sweden and include them in business policies and strategies that
enable business to attracts customers and retain them with organisation for longer period of time. It is
recommended to CafePod Coffee organisation to develop cross-cultural communications that help
business to run operations in efficient manner and attain determined goals and objectives in efficient
manner and gain cross-cultural proficiency (Sadeghi and Biancone, 2018).

It is analysed that, if business understand the cross-cultural competence then it can efficient run
business operations in the culture of Sweden and satisfy customers needs and demands through provide
quality products at affordable prices. It is recommended to respective organisation to analyse all
competitors and external business environment factors such as political, environmental, cultural and
social factors and their impacts on business operations that develop efficient policies that facilitates
business to attain cross-cultural proficiency as well as attain success and growth in the market of Sweden.
CONCLUSION
As per above report, it can be concluded that international business is the process of
trading organisational products, services, capital and technologies across national boundaries.
Internationalisation of business operations facilitates business to attain higher market share and
large customer base. Expansion of business operations in international level provides
opportunities as well as challenges to business so, it become important for business to analyse
these factors and develop efficient policies and strategies that enable business to grab
opportunities and mitigate risk or challenges. It helps business to attain competitive advantages
and sustain in different market place. Globalisation of business operations helps business to
enhance revenue, manage risk and develop organisational brand positioning in market that help
business to explore its operations in different market and attain the objectives of growth and
development. Management of organisation take various actions to grab opportunities that are
raised in international market. Business which expand its operations in international market place
analyse all situations and cultural conditions of specific country that conduct operations which
lead it towards success and growth.

REFERENCE
Book and journal
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Online:
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