Analysis of Global Business Operations and Strategies for Cafepod

This report provides a comprehensive analysis of global business aspects, focusing on the case of Cafepod, a company in the food and beverage industry. The report begins with an introduction to international business, differentiating it from domestic business and highlighting Cafepod's background, including its establishment, mission, size, and financial performance. The main body of the report delves into critical topics such as the protection of intellectual property rights in a globalized economy, covering strategies like trademarks, copyrights, patents, continuous innovation, and separate teams. It then examines the management of functions for international businesses, including planning, organizing, staffing, directing, and controlling. The report also explores the impact of culture on international markets, discussing communication, perception, and workplace rules. Furthermore, it outlines various strategies for entering international markets, such as exporting, joint ventures, licensing, franchising, and outsourcing. The report concludes by recommending franchising as a global strategy for local businesses like Cafepod, detailing the benefits of brand recognition, reduced failure rates, increased purchasing power, and an expanding customer base. The report is supported by references to relevant academic sources, providing a well-rounded perspective on global business operations and strategies.

Global Business
Aspects

Table of Contents
PART-1(COVERED IN PPT POSTER).........................................................................................3
PART - 2..........................................................................................................................................3
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Intellectual Property Rights in a globalised economy.......................................................3
Management of functions for international business........................................................4
Cultures affect on international markets...........................................................................5
Strategies to enter in international markets......................................................................5
Global strategy for the local businesses..............................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

PART-1(COVERED IN PPT POSTER)
PART - 2
INTRODUCTION
The trading performed across the national boundaries refers to the international
businesses (Guercini and Milanesi, 2020). The trading performed by the countries within it's
boundaries are considered as domestic businesses or local businesses. The local business selected
for preparation of this report is Cafepod. This company deals in food and beverages industry. It
was established in 2011 and founded by Peter Grainger and Brent Hadfield. Their objective is to
deliver superior quality and great tasting coffee to their customers that can be easily prepared at
home. The size of the company is around 11 – 15 employees. They are dealing in fast moving
consumer goods and various drinks including hot drinks. As per the records the company
generates the annual revenue of € 3.1m. The report will include the ways to protect intellectual
property rights in international economy. Management of international business function and
impact of native culture on international market. Lastly, the strategies to enter in international
market.
MAIN BODY
Intellectual Property Rights in a globalised economy
The best possible ways to protect intellectual property in international economy are
mentioned below -
 Trademarks, copyrights and patents application – Their are certain new things
developed by the companies which helps them in making unique. Their is high chances
that the other person and use it as their own brand and the innovation transfers in his hand
(Hussain and et. al., 2019). So, to avoid it the companies can apply for cop rights, trade
marks and patents to keep there text, logo, design, picture, name, signature on their own
name. After getting approval no one has the right to use them on their own name.
 Continuous innovation – In order to get competitive advantage, growth and profit
consistent innovation is the key element. The world is so competitive that it do not take
much time for the competitors to introduce the same product made by the company.

 Separate teams – For performing different operations of the businesses separate team
should be their for performing separate functions. The separation of team should be done
so that nobody comes to know the whole process of producing the product.
Management of functions for international business
The business has to perform certain functions so that the operations of the businesses can
be performed easily (Cagle, Yılmaz and Doğru, 2020). The functions for international businesses
are mentioned below -
 Planning – The first and most crucial step of international business is planning. The
planning is done so that the company gets the idea how the work should be performed at
each and every step. The planning should be done related to export and import of
products, partnership or joint venture of the business and all the activities which the
business has to perform in order to achieve organisational goals.
 Organising – The company has to perform the activities in the organised way so that
participation of each and every country could be gathered. Initially they have to decide
the organisational structure and hierarchy that they are going to follow. They are had to
make a protocol through which they can communicate with each other for improving the
performance of the businesses.
 Staffing - The workforce required to perform the activities of the business is also the
function of management. They have to decide either the workforce should be hired
domestically or it should be done form the internationally. The employee whom will
produce effective output is also the important decision taken by the companies.
 Directing – The employees of different culture and nation sometimes finds difficulty in
coordination. They can faces problem while communication or in adjusting with each
other. So the manager are involved in providing proper guidelines to the employees,
through which they can produce desired output.
 Controlling – When the business are performed internationally the changes of mistakes
are high. To avoid those chances the mangers overlooks the activities of each and every
employee and take required reports. After its implementation they make proper control if
any flaws is found.

Cultures affect on international markets
Culture refers to the behaviour or ideas of society or individual towards looking things.
The factors affecting the international markets are as follows -
 Communication – The languages use to communicate with each other varies from
country to country (Sunny, Patrick and Rob, 2019). While trading in international
markets the first barrier that occurred by the business are language. The business are now
customers oriented. They manufacture their products and services as per the taste and
preference of the customers. So to understand the perception of the customers it is very
important for the business to understand the languages of the local people.
 Perception – People of different culture has different attitude towards looking the work
of business. Different organisational hierarchy, leadership and motivational styles are
followed by various companies as per their choice. When the employees of different
perception are brought together then the changes of conflicts arises as they will be not
comfortable with the view and opinions suggested by them. With this the efficiency of
the employees as well as of organisation affects badly.
 Workplace rules – The rules of the workplace is something that should be needed to
aware by the workforce working internationally. Some countries call their employees
with their first name where as, some employees calls their employees by their last name,
this depends on the countries one is working. This can make the employees feel
uncomfortable if they are not aware about the rules of the companies. Apart from this
working hours also differs form country to country.
Strategies to enter in international markets
Their are number of modes thorough which the companies can enter in international
markets, some of them are mentioned below -
 Exporting – Exporting refers to producing the products in the native country and
delivering it to other countries (Sartor and Beamish, 2018). They are certain ways to
export products like- through ship or by cargo plains. Export is cheaper then establishing
new businesses, but in the long run it is costlier. The export and import duties are
incurred on the products which increases the price of the product and results in shifting of
the customers.

 Joint ventures – Joint ventures refers to the agreement between two or more parties or
companies that comes together for the purpose of working together on an particular
project for a specified period of time. For that time period they share their ownership,
risk, profit and return through that project.
 Licensing – The agreement done among two different countries that one country is
issuing temporarily access or its name, logo, trademark, technology, process, secret,
copyright and manufacturing process to other company. A fee or the amount is being
charges by the company providing license in the name of royalty. By this the domestic
country business can be operated in the international market without any hurdle.
 Franchising – The franchising refers to the written agreement done among the two
different countries that franchisee can sell their products customers in the brand name of
the franchisor with any difficulty.
 Outsourcing – Outsourcing refers to appointing other companies to perform the business
operations of our country. The management of the all the activities are in the hand of the
outsourced company but it is overlooked by the native company. This also helps in
reducing the cost and increasing efficiency of the native company, as the outsources
company is expertise in it's field.
Global strategy for the local businesses
The most appropriate strategy used by the businesses for increasing it's profit is by
providing franchising to the businesses (Das, 2021). The local business Cafepod can use this
strategy to make it's business more profitable. The benefits for providing franchising by the local
businesses are as follows -
 Brand recognition – When an person starts his business from the beginning it takes time
for them to promote their businesses, where as franchising help them in avoiding all these
step. The businesses are already well known among the customers, so opening a new
franchise will automatically connects the customers with them.
 Reduces failure rate – The franchising system is not for individual success it is joint
success for all the outlets of it's company. When one outlet is make less or no profit then
it can be covered from the other outlets of the business, this helps in dividing the risk or
the business and the rate of failure of the businesses also reducers.

 Purchasing power – The single store has the limited supplying capacity, but in franchise
the capacity of the company increases. This results in sales of the product and the
companies will acquire large customer base. With this the company can achieve
economics of scale and supply it's product to the customer at lower price.
 Increasing customer base – When the customers have to make less efforts in finding the
outlets of the companies then the customers engagement will increases. More number of
customers will visit the store more frequently this will increase the profit and customer
base of the company.
CONCLUSION
From the above file it can be concluded that there are various intellectual property rights
through which companies can acquire the rights over the products and technology designed by
them. The functional of business helps in performing the operations of business smoothly. The
impact of culture on international market. Lastly, the strategies used by the businesses to enter in
international market.

REFERENCES
Books and Journals
Guercini, S. and Milanesi, M., 2020. Heuristics in international business: a systematic literature
review and directions for future research. Journal of International Management, 26(4), p.100782.
Hussain, and et. al., 2019. Intellectual property right in India-A review. International Journal of
Drug Regulatory Affairs, 7(3), pp.8-13.
Cagle, M.N., Yılmaz, K. and Doğru, H., 2020. Digitalization of business functions under
industry 4.0. In Digital Business Strategies in Blockchain Ecosystems (pp. 105-132). Springer,
Cham.
Sunny, S., Patrick, L. and Rob, L., 2019. Impact of cultural values on technology acceptance and
technology readiness. International Journal of Hospitality Management, 77, pp.89-96.
Sartor, M.A. and Beamish, P.W., 2018. Host market government corruption and the equity-based
foreign entry strategies of multinational enterprises. Journal of International Business
Studies, 49(3), pp.346-370.
Das, M., 2021. Unveiling benefits through franchising in Indian power distribution: addressing
the resources scarcity. Journal of Economic and Administrative Sciences.