Challenges Faced by UK Businesses in Overseas Manufacturing

This report delves into the multifaceted challenges faced by UK businesses engaged in overseas manufacturing operations, particularly within the Asian market. It explores various aspects, including the selection of distributed systems, the negative impacts of operating overseas, and the positives of UK business in Asia. The report examines the causes of price escalation, the effectiveness of global pricing strategies, and the role of research, encompassing both secondary and primary data. It also discusses globalization positioning and provides examples from different sectors, such as Deloitte and Accenture, highlighting their positives and negatives. The conclusion summarizes the key findings, emphasizing the importance of data management, cultural sensitivity, and strategic pricing. The report concludes with recommendations to address the identified challenges, such as understanding consumer needs and eliminating psychological dependence. The report also includes a comprehensive list of references.

Running head: CHALLENGES OF RUNNING OVERSEAS MANUFACTURING OPERATIONS
Challenges of running overseas manufacturing operations
Name of the Student
Name of the University
Author Note

1CHALLENGES OF RUNNING OVERSEAS MANUFACTURING OPERATIONS
Table of Contents
1. Introduction...........................................................................................................................2
2. Procedure of choosing distributed systems............................................................................2
3. Negative challenges of running overseas problems...............................................................2
3.1 Positives of UK business organizations in Asian market.................................................3
4. Cause of price escalation........................................................................................................3
5. Effectiveness of global pricing strategies..............................................................................3
6. Effect of research...................................................................................................................4
6.1 Secondary data.................................................................................................................4
6.2 Primary data.....................................................................................................................4
7. Globalization positioning.......................................................................................................4
8. Examples of different sectors.................................................................................................5
9. Negatives and positives of each topic....................................................................................5
10. Conclusion............................................................................................................................6
11. Recommendations................................................................................................................6
12. References............................................................................................................................7

2CHALLENGES OF RUNNING OVERSEAS MANUFACTURING OPERATIONS
1. Introduction
There are diverse categories of challenges which are faced by the commercial
establishments of UK such as maintaining the structure of the organization, maintaining the
foreign laws and international trade regulations, calculation of the costs, selection of the
appropriate shipping methods, communication difficulties and managing the cultural
differences when they enter the Asian market.
The notable determination of this assignment is to focus on how different business
sectors faces and addresses these business challenges. This paper shall be having numerous
sections and each of the section will be very much useful to enhance the reliability of the
paper.
2. Procedure of choosing distributed systems
There are diverse categories of distributed systems which are deployed in the
commercial business organization which are very much useful for the business computations.
Considering the business challenges faced by the UK organizations, it can be said that the
choice of the selection of the distributed system must be directly depended on the type of data
which comes inside and out of the organizations (Roberts, 2016). The usability of the systems
in accordance with the available resources must also be understood before the selection of the
exact distribution system. Processing power of the computer systems and the storage issues of
the computer systems has to be understood in the first place before choosing the exact
distributed system.
3. Negative challenges of running overseas problems
There are diverse categories of commercial challenges which are faced by the
commercial business organizations of UK in terms of the managing the unfamiliar culture,

3CHALLENGES OF RUNNING OVERSEAS MANUFACTURING OPERATIONS
management of the organizational communication procedure, selection of the human
resources, selection of the tariff and export fees.
3.1 Positives of UK business organizations in Asian market
The prime positives of the UK based commercial establishments in UK are as
followings:
 Huge inflow of capital.
 Reduced government regulations of the Asian countries.
 Local employment
4. Cause of price escalation
The disproportionate difference in the process of the products and service between the
UK based organizations and the Asian countries is one of the primary reasons behind the
cause of price escalation (Snelson-Powell, Grosvold & Millington, 2016). There are diverse
categories of additional and overhead costs in the Asian markets which is the other reason
behind the cause of price escalations.
5. Effectiveness of global pricing strategies
There are diverse categories of global pricing strategies which are adopted by the
commercial business operations of UK on their Asian market such as the competition based
pricing strategies, skimming pricing strategies, hourly pricing strategies, dynamic pricing
strategies, and cost plus pricing strategies (Neubert, 2017). Each of these pricing strategies
are selected based on the business requirements and the abilities of the resources of the UK
based organizations. The other selection criteria of these strategies is the competition coming
from the local competitors of Asia.

4CHALLENGES OF RUNNING OVERSEAS MANUFACTURING OPERATIONS
6. Effect of research
The R&D teams of each UK based organizations uses diverse categories of research
procedures while they work on the Asian markets (Sarker et al., 2018). Brier description of
these research are discussed in this section of the paper.
6.1 Secondary data
The cultural differences between the British and the Asian people are understood by
the UK commercial organizations with the help of the monthly newsletters which are released
by the Asian commercial organizations (Chong, 2016). The other secondary data source
which are selected by the UK organizations in the Asian market is the peer reviewed journals
where the reputed scholars have stated their opinions how the challenges faced by the
overseas commercial organizations are addressed.
6.2 Primary data
The selection of the international market place depends upon the data collected from
the primary sources such as the strategic planners of the similar organizations. The evolution
of business patterns can be understood in the first place with the help of the primary data
collection.
7. Globalization positioning
Communication is very much significant for the UK based commercial organizations
as the strategic planners of the UK based organizations must be knowing the exact
expectation of the Asian consumers (Yuesti et al., 2018). The positioning of the business
from the global perspective has to be clear for both the management team as well for the
consumers of the business.

5CHALLENGES OF RUNNING OVERSEAS MANUFACTURING OPERATIONS
It can also be said that the concept of internationalism can be very much beneficial for
these business organization who wants to expand their business area outside Europe.
However, there are few challenges related with internationalism which the labour
laws of the Asian countries, selection of the choice based products, governmental regulations
and the competitive market conditions.
8. Examples of different sectors
There are diverse categories of UK based commercial business organizations which
operates in the Asian countries such as Deloitte Haskins & Sells LLP and Accenture Services
Pvt Ltd.
Accenture Services Pvt Ltd is a UK based public sector organization which provides
diverse categories of services such as the diverse categories of emerging technologies,
consulting services, and the strategic advises to the consumers (Deloitte UK, 2020).
Deloitte Haskins & Sells LLP is a type of professional service organization which
provide services like auditing, taxation, financial advisors, risk advisors and the management
of the legal issues (Accenture, 2020).
9. Negatives and positives of each topic
Organizatio
n
Positives Negatives
Deloitte The wide range of services
provided by this organization
provides huge employment to
the Asian countries where
getting a job is really very
difficult.
The local organizations of Asian are
hugely affected from the financial
perspective due to the presence of this
business organization.
Accenture The business objectives and the
vision of the Asian business
organizations is enhanced due to
the services provided by this
organization.
Psychological dependency is one of the
most significant limitation of this
organization as they try to enact their
UK based processes in the Asian
Market.

6CHALLENGES OF RUNNING OVERSEAS MANUFACTURING OPERATIONS
10. Conclusion
Data management capability and expertise of the resources are the selection criteria of
the distributed systems. Management of the unfamiliar culture, management of the
communication and selection of the human resources are the prime challenges faced by UK
based organization in Asia. Disproportionate price of services is the major cause of price
escalations and the selection of the global pricing strategic depends upon the criteria the
abilities of the resources and the role of local market competitors of Asia. Both secondary and
primary data collection are conducted by the organization to deal with these business
challenges. The negatives and positives of two UK based organization can also be understood
from the concluding section of this paper.
11. Recommendations
The list of recommendation regarding the ways to address the challenges faced by UK
based organizations are as followings:
 Needs of the Asian consumers must be understood by the organizations.
 Psychological dependence must be eliminated by the managers of the organizations.

7CHALLENGES OF RUNNING OVERSEAS MANUFACTURING OPERATIONS
12. References
Accenture | New insights. Tangible outcomes. New Applied Now. (2020). Retrieved 6
January 2020, from https://www.accenture.com/gb-en
CHONG, M. (2016). Corporate Reputation in Asia.
Deloitte UK | Audit, Consulting, Financial Advisory and Tax services. (2020). Retrieved 6
January 2020, from https://www2.deloitte.com/uk/en.html
Neubert, M. (2017). International pricing strategies for born-global firms. Central European
Business Review, 6(3), 41-50.
Roberts, J. (2016). Russia’s gas challenge: the consequences for China, Central Asia, Europe
and the USA. The Journal of World Energy Law & Business, 9(2), 83-104.
Sarker, M. N. I., Hossin, M. A., Hua, Y., Sarkar, M. K., & Kumar, N. (2018). Oil, Gas and
Energy Business under One Belt One Road Strategic Context. Open Journal of Social
Sciences, 6(04), 119-134.
Snelson-Powell, A., Grosvold, J., & Millington, A. (2016). Business school legitimacy and
the challenge of sustainability: A fuzzy set analysis of institutional decoupling.
Academy of Management Learning & Education, 15(4), 703-723.
Yuesti, A., Julianti, L., Suryandari, N. N. A., & Astuti, P. S. (2018). Challenges of Bali
Economic Export Development in Changing Global Environment. International
Journal of Contemporary Research and Review, 9(01).