COOK UK: Analysis of Strategies for International Market Expansion

This report analyzes the international market expansion strategies of COOK UK, a manufacturer and retailer of frozen ready meals. The report begins by examining the global business environment for small and entrepreneurial businesses, identifying threats and opportunities. It then focuses on COOK UK's potential expansion into South Africa, evaluating the advantages of international trading blocs and agreements, and comparing the advantages and disadvantages of importing and exporting. The report also differentiates between merchandise and service imports and exports and explores various methods for SMEs to tap into international markets, comparing different approaches. The report provides a comprehensive overview of COOK UK's expansion strategy, offering valuable insights into the challenges and opportunities of international market entry.

Tapping into New and
International Markets

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Global business environment in which small and entrepreneurial business operate........1
P2 Threats and opportunities that faced by SMEs in increasingly competitive global
environment. ..........................................................................................................................6
TASK 2..........................................................................................................................................10
P3 Advantages of international trading blocs and agreements.............................................10
TASK 3..........................................................................................................................................14
P 5 Advantages and disadvantages of importing and exporting...........................................14
P6 Difference between the merchandise and service imports and exports..........................16
Merchandise.........................................................................................................................16
TASK 4 .........................................................................................................................................17
P7 various methods in which SMEs can tap into international markets..............................17
P8 comparing various ways through which SMEs can tap in to international markets.......18
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20

INTRODUCTION
In present global business environment, companies are continuously focusing on new
ways to grow their business internationally. Rapid rise and innovation in digital technology and
removal of trade barriers to enter is considered as easier than ever before, but enterprises needs
to consider the another range of options at the time of making decisions to expand their business
at international level. Present report is based on analysis of ways through which SMEs, COOK
UK, can successfully expand their business internationally. COOK is a manufacturer of and
retail of frozen ready meals. After achievement of success in the local market, Company is
looking forward to growing its operations in other regions of the world and wants to set a plant in
African country to cater for the airline industry. As an assistant business advisor on international
trade, South Africa has been selected for successful expansion of business for COOK. Further,
global business environment in which the small business operates is also discussed along with
the threats and opportunities faced by them in competitive global environment.
TASK 1
P1 Global business environment in which small and entrepreneurial business operate.
1

Notes:
Present report is based on analysis of ways through which SMEs, COOK UK, can successfully
expand their business internationally. Present report is based on analysis of ways through which
SMEs, COOK UK, can successfully expand their business internationally
Notes:
2

From the study, global business expansion has been considered as planned expansion of
business operations and functions by a company in the several regions of the overseas nations
across the world. In present context, as an Assistant business advisor, there are various
opportunities have been identified for SMEs and entrepreneurial business to expand their
business operations in South Africa. In this, company will make efforts to achieve the
competitive advantage by delivering values to customers in global markets.
Notes:
. For example: Cook Ltd can also start shipping of their frozen food products to retailers in South
Africa.
Special modes
Contract manufacturing: Significant opportunity for global expansion in which COOK can
provide permission to other company to start production of frozen foods products under their
label or brand name.
Sole trading: It is also method through which company can expand their business in South
Africa by Establishing their own plants on the basis of personal investments and risks. From the
case study, it is identified that Cook has earned high profits local markets. Therefore, they have
the capability to set up its business at own capital.
3

4

Global expansion and opportunities for entrepreneurs and small business.
Globalization is a major driver which has impacted nearly every business enterprise.
The internalization of markets for sales and purchasing at indirectly influences every business.
Small medium enterprises are continuously becoming increasingly global, mainly on the basis of
inter firm linkages and clusters. Entrepreneurs are considered as economic drivers which are
responsible for establishment of new business. About 25% of manufacturing SMEs are
established internationally and this share will increase continuously.
SMEs operates in global environment by selling their products and services to firms in
another countries. Besides selling products abroad, some essential opportunities can be also be
found in supply chain. Incorporation of more foreign partners in supply chain can helps the
SMEs and entrepreneurs to reduce the costs, enhance productivity and identify new ideas as well
as markets for business set up.
Challenges and threats of globalisation for entrepreneurs and small businesses.
Critics of globalisation have argued that although there are various benefits associated
with globalisation, it is also apparent that SMEs and entrepreneur are threatened in different
ways.
With continuously opening borders which has considered a number of Multinational
enterprises in various countries are offering lower prices, small firms are forced to sell their
products and services at lower costs because it is the only way they can compete and this will
give a negative impact on their profitability.
Global expansion has also brought about stiff competition from Multinational entrepreneur
investing in overseas nations. In developing countries, government have policies benefiting
MNE's and disadvantaging Small enterprise in their quest to attract FDI.
It will create difficulties in adapting corporate culture to new situations and challenges.
Risk is to focus on too much on existing basis of business.
5

P2 Threats and opportunities that faced by SMEs in increasingly competitive global
environment.
Notes:
In this context, cook operating desire to operate on a global market can take advantage of four
main opportunities and achieve competitive advantage over rivals in local market of South
Africa.
6

• In this, Cook can serve a small segment in SA together with the several others within
other countries in order to reach the scale of production and technology which is
considered as impossible for them in single market.
Notes:
. By making contracts with different airlines companies, company can reduce their risk of failure.
7

Notes:
In this, company needs to consider the laws which provides impact on their business before
exporting and establishment of plant in south Africa.
Fluctuation in tax rates: It implies that changes in tax rates also provides an impact on the costs
and sale of Cook in other countries which imposes a threat of decline in sale
8

Notes:
. By reducing the prices through use of low material, company will able to establish their
business operations and achieve a competitive advantage of over rivals in competitive market.
Further, threats will provide a negative implication on business like decline in sale, decrease in
demand of products and services and rise in costs of materials etc.
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TASK 2
P3 Advantages of international trading blocs and agreements.
Notes:
The basic objective of these trading blocs formed and the agreements that have been signed is to
ensure free flow of goods as well as services among the nations to satisfy human needs across
the world. This bloc created in UK, i.e. European Union, has benefited the society and its
members along with the business organisations that operates in the economy. The cited venture,
i.e. COOK has also gained numerous advantages of trade related agreements, a detailed
evaluation of which is explained as under:
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