Global Business Aspects: Market Entry and Cultural Impacts on Business

This report provides a comprehensive analysis of various aspects of global business, focusing on factors influencing international market strategies and the impact of cultural differences. The report begins by differentiating between domestic and international business, exploring the roles of the World Trade Organization (WTO) and trading blocs in facilitating international trade. It then introduces Beppe's Cafe, a local company in the United Kingdom, and discusses the contribution of Intellectual Property Rights (IPR) in a globalized economy, including patents and trademarks. The report further examines the management of business functions in an international context, such as marketing, human resources, and operations, and assesses the impact of business cultures on international markets. Finally, it evaluates different entry strategies for international markets, offering valuable insights into the challenges and opportunities of global business expansion.

Global Business
Aspects

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
TASK 1 ...........................................................................................................................................1
The distinction between domestic and international business...................................................2
The function of WTO in international business .......................................................................3
TASK 2 ...........................................................................................................................................4
The introduction of the local company and its current market..................................................4
Contribution of Intellectual Property Rights in a globalised economy.......................................4
Managing business functions in an international context...........................................................5
The impact of business cultures in international markets...........................................................6
Assessment of entry strategies in international markets.............................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
It is very essential to acknowledge various global factors to run the business organisation to
achieve organizational goal. In order to increase large market share, the global business is an
effective tool to diversify the business. There are many internal and external factors that
influence the work performance of the organisation. These forces not only contributes in
maximising the profit but also ensure quality of the product (Agarwal, Nagpal and Bhandari,
2021). The ultimate goal of every business is to create customer brand and loyalty in the market.
The organisation chosen for this report is the Beppe's Cafe located in the United Kingdom. This
report will analyse the various aspects of global business including market entry strategy , global
factor and impact of business culture.
MAIN BODY
TASK 1
Factor behind the globalisation and formation of modern states .
There are several reason behind the globalisation of market which are mentioned thereunder:
 Reduction in trade tariffs: The factor that promotes foreign direct investment is
reduction of trade barriers which leads to globalisation of trade and commerce. This
factor have positive impact on the business. It helps in ease of doing business and
minimise government regulatory and legal formality.
 Role of Technological changes: It is identified that technology plays significant role in
creating several opportunities to make effective business activities. The change in
technological advancement is the key to success and ensure global market share of the
company. The technology makes company more productive and increase profitability of
the company. The company needs to adopt these changes, technological advancement to
promote quality work and coordinate all the activities. Technology promotes innovation
which helps company to run in the competitive market.
 Decline in investment barriers: It is another factor which ensure globalisation is fall in
investment barriers. The current market world requires huge investment at low risk to
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expand the business and maximise profit in the international market. It is not only
increased competition but also helps in fair decision making.
Advantages and Barriers that affects international business
Advantages
Many advantages are associated with the business organisation when they are primarily
focuses on international presence of the business enterprises. The benefits includes:
 They have benefited to expand its business and earns the higher revenue and build
customer trust.
 It also provide maximum profit to increase market share and increase productivity.
 The company is able to build brand value which ensure competitive advantage in the
international market.
 This will build strong relation between the consumer and company , helps to diversify the
business.
The distinction between domestic and international business
The major difference between the domestic and international business is economic
transaction which generally take place within the certain boundaries of the country whereas the
international business is a combination of activities that cover certain specific country. The
domestic country indulge in the trading between the buyer and seller of same country and
international buyer and seller of another countries (Aggarwal, Jindal and Seth, 2019). The
domestic company aims to expand their business in international market to cover large market
share in different countries. The company set their geographical boundaries to choose particular
boundaries where they can attract large customer expectation and demands in domestic as well as
international market. This will required capital investment from various international investors
which charge low rate of interest and involves low risk. The huge investment ensure growth and
development of the company. The main difference involves these two type of business are
geographical limit that detailed about the kinds of customers, product and quality to choose
certain section of society. The domestic country focuses on both national and international level
of doing business.
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The function of WTO in international business
The World Trade Organisation (WTO) plays significant role in promoting trade related
activities of international business. This is the international statutory body that regulates the trade
related activities between various company. It helps to ease the way of doing business. The main
aim of this organisation is to proper functioning of trade related activities which includes import ,
export duty, trade tariffs, investment risk , registration procedure etc. It authorised its member
state to consider every aspects of business which promote business activities. The globalisation
process helps to trade in international market and adopt global market strategy to run the
business easily. The WTO allows its member state , relaxation from trade tariffs, low production
cost, enforce the rule and many more (Cejnar and Duke, 2018). The main purpose of introducing
WTO is establishing the free trade and open market to avoid any hinder in conducting the
business activities. It provides fair communication mechanism between the states . The
Governing body ensure a platform where trade related dispute can be solved easily and parties
are negotiate with each other. In context to the Beppe's Cafe, they are deciding to expand its
business in the international markey which contributes to gain competitive advantage in the
international market.
The effects of Trading blocs in international business.
Trading blocs is another mode of potential barrier to trade effectively in international market.
It is an association of countries that deals with trading to promote specific countries. The best
example of trading bloc is European Union through which many countries are associated to
charge no tariffs. It helps in reducing the cost of goods and services which is not beneficial for
the company but also profit to import and export of business.
The World Trade Organisation (WTO) allow its member state to exchange alliances, also
bring about lower protection against other nations than present before the establishment of the
exchange coalition. It is a factor that helps in choosing nation collaboration and requires less cost
provider in an outside nation. The World trade Organisation promotes economic growth through
promoting international business activities.
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The concept of tradition association , the country should address typical outside levy of tax
which ensure expense for advancing such expansion. The huge incurred to influence the
suppliers directly to provide fresh food to its customer. Whereas, the buyers also get influenced
by paying the cost that involves in imports from the third party interference , is an important tool
to choose traditions association such as commercial transaction that add the value in product due
to levy of certain tax. Trading bloc promotes economic integration that allows people and
business capital to adopt various government policies. The United Kingdom is an integrated
economy which emphasise on free movement of capital , no trade barriers between the member
state etc.
TASK 2
The introduction of the local company and its current market
The company which is chosen in this report is a local cafe of the United Kingdom known as
the Beppe's Cafe . This is the cafe famous for beverages and fresh food products to its customers.
The company also offers various schemes and discount on products such as pizza, burger, French
fries and all the fast food etc. (Freedman and Loutzenhiser, 2022). It is an opportunity for the
cafe to diversify their business in the international level to achieve extensive growth and revenue
profit form their service. This is the well known cafe for its special taste for the coffee.
Contribution of Intellectual Property Rights in a globalised economy
Intellectual Property rights aims to secure the right of the inventor and product. Innovation is
a interesting concept for every business that helps to identify, develop, evaluate the innovation to
achieve long term success in the market. Intellectual property rights includes copyright, patent,
trademark and geographical indication etc. It is not restricted to innovation and technological
advancement but valuable approach for attracting the investors. IPR outlines the methods and
ways to claim for licensing which helps the company to introduce new product , increase sale,
achieve new market , prevention from exploitation of rights. There are many International
Convention on IPR such as TRIPS , Paris Convention , Berne Convention provides wide range
of legal protection to theses rights in the form of patent, copyright, royalty etc. To achieve
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constant success in business , it requires to maintain quality of products and services, knowledge
assets, business strategy, rewarding ideas and many more.
The IP rights provide improvement in existing business strategy and helps to formalise new
plans and policies to make effective business identity in the international market. There are
Intellectual Property Rights includes patent which can be claim when the product will meet the
essential criteria of novelty , non obviousness and industrial application. Patent is granted for
excluding others from sell, use, manufacture of the product and empowers exclusive rights to the
patent holder. Whereas Trademark provide wide protection to the symbol, sign , logo of the
product. It provides licensed innovations that is non exclusive for others. Therefore, many
incentive are given to the business as a fees for inventing new products in the market and
contributes in the business growth. These IP rights helps to recognise unique product that
belongs to particular company or brand (Jia and Winseck, 2018) . Therefore, the confidential
information are kept to be secret so to get success over others. These Ip rights are the main
source of protecting the right of the business and create goodwill of the company. IP is
considered as intangibel right that are available to the owner as an expressive rights and exclude
others from its access. The Company uses its as an effective tool which secure their rights and
impose liabilities on them who infringes the rights of its actual owner.
Managing business functions in an international context
There are many essential functions that company needs to manage and coordinate the business
activities at international level. There are many approaches which is considered by the company
to conduct managerial activities.
 Marketing Team: The company will require to create a team that are responsible for
conducting various business activities related to cafe in the international market. This is
important function that necessary to expand the business to win over the others.
 HR Function: Another most important function that human resource manager will
perform to train and develop the skills in their employees so to increase productivity and
performance. Human are considered as the most important asset for the company , so it is
the duty of manager to satisfy all the needs of its employees.
 Operations Team: Operation team is responsible for the Beppe's cafe which deals with
the day to day operation of business and operational activities to perform the task in most
effective manner.
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The impact of business cultures in international markets
The cultural behaviour helps in assisting the individuals and their field which is best suited
to them. The culture not only influence the whole society but also its people. According to
Francis Fukuyama “the most appropriate manner of current life wherein cultural practices that
have direct impact on growth and prosperity of the global market is called as economy. The
Albeit monetary movement is expressed the social and political life which helps to evaluate the
economy. The cultural behaviour of the worldwide business deals with the HRM functio,
production chain, onboard activities, legal compliances and these approaches helps to build
complete working mechanism. The cultural behaviour also have social impact positive and
negative depending upon the regulatory body and social values. The culture can be summarised
as the homogeneous of all the factors including conviction, conduct, values and human aspects.
Each culture has sub culture which also distinct taste, preferences and values , So, these national
culture contributes in understanding the individual perspective to disseminate information vital
to business.
The custom and tradition helps to connect the social values and influence the national culture
which may vary from international culture. The taste, language and preferences of both the
countries requires lot of hardship to understand the behaviour of customer to create market value
and brand. The global demand and societal change allows the business to consider all the factors
to adapt new techniques and methods to run in the competitive market.
Assessment of entry strategies in international markets
There are multiple ways to enter into a foreign market depends upon business strategy and
policies. In order to enter smoothly, one should focus on every aspect of business that simplifies
trade in international countries. In order to take straight entry, one can go one for merger and
apply certain strategy that helps to increase production (Shaukat, 2021). There are certain
elements that attract strategy to reduce tariffs, increase investment, transportation cost etc. It
expected to increase sale to set off such prices. The strategic tool evaluates the need and demand
of market to impress customer as it is the primary objective of business to implement such tools.
The following planning are the key to take entry option to businesses:
 Direct Exporting: Exporting includes direct sale in the market to select the area that will
help to make successful exporting of the product. It can be made through mediators, or an
agent.
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 Licensing: it is defined as authorising the company to transfer the rights of their product
and services to another (Zhongming and Wei, 2021). It is primarily deals with the
strategy that the buyer of license pays them certain amount of royalty over it.
 Franchising: It is identified as opening of the same branch of the particular brand . It
shows success of business through diversification of franchise of the company . It is
considered as powerful brand globally and act as future rivalry for other businesses. At
initial stage, it is business model but due to specific or powerful brand recognition helps
to go for franchisee.
CONCLUSION
From this above report, it has been concluded that there are many factors that
contributes to expand its market in the foreign countries. There are many new strategies that are
being adopted by the Beppe's Cafe to cover large market share. In order to diversify the business,
the company should be aware of the threats and adopt new technological advancement to achieve
long term objectives of the business. They are also need to analyse the customer taste and
expectation in order to create brand value and loyalty among the customers. There are essential
function that are necessary to gain in the competitive advantage and improve work performance
of the business.
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REFERENCES
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Fehrer, J.A., Woratschek, H. and Brodie, R.J., 2018. A systemic logic for platform business
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