Global Business: Market Analysis and Entry Strategies

This report provides a comprehensive analysis of global business strategies, focusing on international market entry and expansion. It begins with an overview of the European Economic Community (EEC), discussing its advantages and disadvantages. The report then delves into the motivations behind multinational corporations (MNCs) seeking internationalization, including increased sales, economies of scale, and market diversification. It also examines the challenges MNCs face, such as market imperfections, cultural diversity, political instability, and foreign laws. The report uses Unilever as a case study, analyzing its domestic market strengths and weaknesses. Finally, the report discusses leadership qualities that support market entry. The report includes individual notes, a reflective essay, and references to support the analysis.

Global Business
Assignment

Table of Contents
Individual Notes 1............................................................................................................................1
Individual Notes 2............................................................................................................................2
Individual Report.............................................................................................................................5
Introduction............................................................................................................................5
Analysis of domestic market..................................................................................................5
Strategy to internationalise.....................................................................................................6
Selected country environmental analysis...............................................................................7
Mode of entry, challenges it may find in the country and possible solutions........................8
Leadership qualities that supports the market entry...............................................................9
Conclusion............................................................................................................................10
Individual Reflective Essay...........................................................................................................10
References:.....................................................................................................................................12
Books and Journals...............................................................................................................12

Individual Notes 1
The European Community, former name of which is European Economic Community
(EEC), by name Common Market, was a regional organisation designed to integrate the
economies of Europe. On March 25, 1957, The EEC was created by six European Coal and Steel
Community members which were Belgium, France, Italy, Luxembourg, the Netherlands and
West Germany, that established the European Atomic Energy Community (EURATOM), which
was primarily designed to foster cooperation in the development of atomic energy, research and
its utilisation. The other countries that joined later in the year was United Kingdom, Denmark,
and Ireland in the year 1973, Greece in 1981 and later Portugal and Spain too came forward in
the year 1986. The EEC was designed with the objective of creating and developing a common
market for its members through eradication of trade barriers related with the movement of goods,
labour, capital and services and establishment of common trade policy (David and et. al., 2020).
(Ronit, 2020). The signed treaty also encouraged common agriculture policy (CAP) to protect
EEC farmers from agriculture imports and private agreements, which was established in the year
1962. By the end of July 1968 all the internal tariff were removed followed by implementation of
first reduction in tariff in January, 1959. Till the year, 1993, an entire single market was
established which was known as Internal Market which allowed European Countries to freely
trade within EEC with the movement of goods, capital, services and people.
Like ECSC, the EEC also formed four other governing institutions which were commission,
a ministerial council, a court and assembly. In the year 1965 Members of EEC signed the
Brussels treaty which merged commission of EEC, EURATOM and the high authority of ECSC
into a single commission after a creation of Economic and Social Committee to advise
commission and the council of ministers on a numerous range of social and economic policies.
Advantages of European Economic Community
 There are better jobs, wages and highly skilled workforce in the European countries
thanks to European Union that despite of Brexit emergence there is still a single market
which provide for the companies to negotiate on international trade.
 With the help of Internal Market and integration of the economies, Europe succeeded in
re-industrialisation of the continent just after the six years of World War II which made
the drastic condition in Europe as there was scarcity of food and jobs were few.
Disadvantages of European Economic Community
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 Because of the Single entry Visa Schengen average person can travel across several
nations and its controlled boundaries making it more susceptible for many illegal entries
leading to more theft and insecurity to the countries (Zhou, 2020). Due to less travel
restrictions there are more chances to cross border with false documentations and ID.
 Despite of Unified market and structure, there is growing disapproval among many
countries as there are many cultures, ethnicities and beliefs and perceives things
differently. Evidently there are few wars among nations due to EU but nationalism,
fascism and other problematic issue could not be addressed.
Individual Notes 2
Today, internationalization has become one of the most important elements of the
effectiveness of MNCs and a vision for the future. In order for a company to be able to compete
locally, it is important that internationally. There are many reasons and the challenges which a
MNC company encounter when thinking about internationalisation of their business in the
foreign soil. This is also necessary in order to sustain the long run growth of the company and
being competitive and sustainable throughout their operations in more prominent and effective
operations. Below are the some reasons or the motive which illuminates why does a MCN
company are looking forward to internationalisation which are as follows-
1. Increase sales and profits
With the expansion of the global market, it is likely that an increase in sales volume from
total sales, as well as a reduction in operating expenses, will attract a larger customer base. In
addition, with the help of technology and the Internet, the transforming world trade has become
even more attractive to companies of different sizes (Kim and Kamalanabhan, 2021). By being
able to cash out their winnings, they will be able to reduce costs and improve business operations
and efficiency.
2. Large-scale economy
Some MNCs in order to grow their business, products like them are more likely to be
adopted worldwide. In many industries and globalization: can benefit the company, creating a
better quality and economy. This is especially true for companies operating in a very small
domestic market. In addition, internationalization can also be used as an opportunity to isolate or
extend a new product, service, or product.
3. Entering new markets and spreading risk
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Internationalisation becomes easier as due to countries and opening trade barriers and
lowering the overall price. Internationalization allows the company to diversify its business and
can reduce the risk of lower demand in many countries.
4. Recruit New Members
International travel allows businesses to access a huge pool of talent. Employees speak
different languages and have friends from different cultures, they are able to communicate with a
wide customer base (Kiessling and et. al., 2021). In addition, companies can create global groups
that have the necessary knowledge about the local market and are able to use it in the local
market and resources, while getting in touch with local suppliers.
5. Overpopulation of the domestic market and competition
The shift in the domestic market is also the reason why companies prefer to develop
globally, and is an initial gain, as it occurs in local competition and leads to higher returns that
differ from these investments. Domestic markets are crowded, and a boost to sales and profit
growth. Companies must have ambitious aspirations in order to seek out large markets beyond
their borders.
6. Slow growth of the domestic market
Domestic markets are growing slowly. Many companies don't want to grow. If these
companies want to achieve a high level of development, they will need to get a number of sales
in the global market. Their ability to compete effectively in the domestic market will depend on
their ability to use the resources of international companies that need to compete with them in
their domestic markets (Kasahara, 2021). And once they decide to have an international business
in the region of origin, they will be forced to improve their resources and know-how so that they
can compete with international companies.
Foreign investment Opportunity
Finally, companies seeking global expansion should not forget about investment
opportunities in foreign markets. For example, many companies have the ability to develop new
products and build basic access to global market funds. International companies can also take
advantage of attractive opportunities that are not available in their country of origin.
MNCs internationalise and the typical challenges they encounter
There are many good reasons for which makes the MNC company to expand their
business beyond their domestic market. A multinational corporation (MNC) is a company that
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controls the production or provision of services in more than one country. There are certain
problems for MNCs that hinder the development of trade on world markets and prevent its
competitiveness. Following are the some challenges which MNCs company encounter are as
follows-
Market Imperfections
It may seem strange that the company decided to conduct business in a foreign country,
where it was not aware of the laws, local customs or business practices of this third country.
Firms in these markets may be separated from competition due to the cost of travel and other
fiscal and non-fiscal barriers that force them to compete, as well as a drop in their earnings
(Knoll and Sternad, 2021). This can also happen if there are some changes to the license or about
a limited license in the international market.
Culture diversity:
Communication skills are extremely effective in business strategy, regardless of whether
they work in their own country or in a foreign one. However, cultural and linguistic diversity in
the world is a big problem. The company will focus on developing basic cultural and
communication skills. Effective communication with clients, customers, and colleagues is very
important for success. Nonverbal communication also plays an important role in the company's
success.
Political instability
Many international companies face the problem of political instability, if any, in the
world. When this happens, it helps cover the company's costs, increasing the risk of things that
need to be done, and sometimes reducing the ability to predict business outcomes. Political
instability has been linked to corruption and a weak legal framework, which can have a negative
impact on foreign direct investment.
Market Withdrawal
On an international scale, this can have a significant impact on government policy, and in
particular on the threat from intelligence agencies. In the face of this threat, international
companies have disappeared from the market, which can often lead to a limited choice of high-
quality medicines (Longino, 2020). The most successful countries in such conflicts are
international, multinational corporations such as the United States, Brazil, competing with
traditional rivals.
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Lobbying
The kit is produced by international companies and is aimed at solving various business
problems, starting from downloading limited warranty samples. Companies that have invested in
anti-pollution funds that can compromise with strict environmental standards in an attempt to
force dissenting competitors to be safe and be so. Companies require payment before limiting the
competitiveness of foreign production. This is very, very bad, and it is very difficult and requires
a lot of work for the new owner.
Foreign laws:
Once the decision has been made, companies from all over the world are as well-versed
as possible in local laws and principles. The tax implications for the practice of applying the
legislation vary from country to country. A competent and knowledgeable team with experience
in the field of law and the laws of countries where companies are parties to globalization, so as to
prevent any harassment or imposition of sanctions in the country (Wang and Varma, 2020). For
example, Airbnb, due to ignorance of international law and violation of Barcelona's tourism law,
faces a fine of $ 30,000 in fines.
Individual Report
Introduction
A multinational corporation (MNC) is a company that operates both in the country and in
other countries of the world. It is a branch of one country that coordinates the management of
other offices, such as administrative offices or factories. Unilever is one of the strongest and best
companies in the world with many successful products, Unilever has the ability to expand into
foreign markets and reach customers all over the world. Building on all the strengths of the
world's leading brands-Dove, Sunsilk, Rexona and Lux-Unilever entered international markets
for the first time to compete on the international stage by importing one or more individual
foreign markets. After successfully launching the product in various markets, Unilever has
successfully expanded its product to other markets and will begin to compete in the global
market.
Analysis of domestic market
Strengths
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UK companies will be able to take advantage of lower interest rates and higher loans,
reduce financial costs and maintain positive financial results Unilever is a large market in UK
and has a large number of employees, many of whom were involved in product development
(Barmeyer, Stein and Eberhardt, 2020). It shows the market share of almost all home and food
products, with a large number of well-known brands such as Dove, OMO, Clear, Lux, Hazeline,
Comfort and so on. By offering products for various consumer groups, Unilever is entering the
UK markets.
Weaknesses
The tactic of ignoring the differences between UK and Western cultures has led to price
fixing, differences between their customers. Unilever has more competitor in their domestic
market than all other investors in the UK markets, such as P&G, L'Oreal, etc. However, Unilever
has intervened more than once, it is a powerful tool. The result was a new product introduction,
delay, research and development.
Opportunities
Based on an in-depth analysis of the UK market and the environment, it was found that UK's
policy in the promotion of "external openness" when it comes to attracting foreign investors. In
the past few years, UK's control over basic food needs has become increasingly difficult, as has
the government's policy on developing foreign companies.
Strategy to internationalise
Coming from and competing in foreign markets, as well as cosmetics and personal care products,
cosmetic products, Unilever, must have a global strategy, also known as global thinking and
strategy, the strategy uses the same competitive strategy in all markets where the company is
located (with little response to local situations), it will sell the same products to uninformed local
in countries where there is a need to cover local preferences), which is aimed at creating a global
product and the goal of its actions around the world (in the center) (Minefee and Bucheli, 2021).
The overall strategy is used by Unilever, which gives priority to local strategies, as Unilever has
been able to integrate into its business operations and focus on creating an image that is truly
world-class. Unilever used to be a regular MNC, but now it's focusing its efforts on an
international business strategy. Unilever is now trying to connect all of its European operations
into one, and even when building filters are focused on the cost-effectiveness of different plants.
Unilever uses integrated packaging and marketing methods in Europe. The company estimates
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annual cost savings of more than $ 200 million. But at the same time, thanks to its distribution
channels and Unilever's reputation, the company recognizes that it is still a regional commitment
and tries to be more productive and efficient.
Selected country environmental analysis
China is currently one of the largest markets in the world due to its low population. This
makes the country an attractive market for foreign goods. However, the market is in constant
motion, as a result of various factors.
Political factors
One of the main political factors that affect the Chinese market is a government decree.
The active involvement of the Communist Party is something that all businesses should always
try to keep in mind. If any product or service, or any of its products, is considered contrary to the
beliefs of the Communist Party of the Russian Federation, this will be strictly prohibited.
Therefore, all ads and marketing strategies that need to be updated must work with the Chinese
market. The latter is a political factor that has an impact on the Chinese market and the
government's international policy (Qiu, 2020). The recent trade war with the United States has
had a far-reaching impact on the Chinese market for American entrepreneurs working in the
industry.
Economy
China's economy is currently performing very dynamically, and at the current level of
GDP, it will soon surpass the US economy. The purchasing power of consumers is constantly
growing, and at the same time, the cost of labour is only one of the lowest in the world. Chinese
factor in urban growth, but also helps the economy develop, as well as more user-friendly and
attract more foreign products to invest in the real economy.
Social
Cultural and price factors account for the fact that most social change takes place in
China. Factors such as the size of the house, the rate of population growth, and determine how
the market operates, and this should also ensure that safety regulations are followed in
accordance with cultural needs and requirements (Sokro and Pillay, 2020). China has a global
literacy rate of more than 90%, and most people have Internet access.
Technology
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One of the most important technical factors that affect the Chinese market is the use of the
Internet. There are approximately 450 million Internet users in China, and this explains their
purchases. But at the same time, it is definitely not a stable method to pay online, in China, with
less credit card statement (Maletzky and Grosskopf, 2020). This is in line with Chinese social
norms, many generations still have the opportunity to observe, and also because of the numerous
risks associated with online shopping.
Mode of entry, challenges it may find in the country and possible solutions
There are many reasons why Unilever is expanding globally: both high productivity and
low cost, and the acquisition of new skills and technologies, and the distribution of costs and
profits, and the base between them. Before starting a development strategy, acquiring an
understanding of the company's expansion requirements is crucial.
Export
Export or direct sales of local products to the market. In general, this is a traditional and
well-established process of opening and entering the international market. Unilever has used this
method of market entry in the past in many countries around the world. In order to create export
opportunities in these countries, it is necessary to have strong and strategic partnerships with
governments so that they can export their products (Bader, Schuster and Dickmann, 2020)
In this context, it is clear that exports have been an important entry point for Unilever to various
international markets, particularly in a country where it has never been directly involved in
financing.
Acquisition and merge
Acquisition can be defined as the act of a company in which the company takes over the
majority of patents in a special purpose company designed to manage the target company.
Unilever makes extensive use of this type of market access to expand its international markets.
Unilever is also being strengthened by an acquisition effort made in 2000, when the firm
executed its largest acquisition since its founding (Szőcs and Miska, 2020). This mode offers
many ways, including, but not limited to, access to local knowledge and extensive control of
external activities.
Green field
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Green field, as well as direct investment in the parent company, starting new business in a
foreign country by creating a new advanced infrastructure, as mentioned in the previous chapter,
Unilever has long been involved in the development of new companies in different countries. .
Joint venture
This is another strategy for Unilever to enter the global market. A joint venture is an
agreement between two parties to an agreement to work together on a specific project for a given
market. This relationship is characterized by the separation of the risks and benefits of new
technology and new product development.
Leadership qualities that supports the market entry
Effective Communication (even in virtual meet)
Leaders need to be able to communicate not only with their teams, but also with
headquarters around the world. In any market, as well as leaders must say, it is to provide
convincing promises and solutions (Bergs and Lub, 2020). What sets the market apart, however,
is how leaders use these skills. In many markets, men are expected to deliver a compelling
message based on their views, while women are expected to have listeners to draw their
conclusions.
To Get Support
While wandering the world's problems, leadership development may not be possible
without the help and support of a sponsor. In order to attract support at the highest level, rising
leaders, for the donors themselves. Sowing highly gifted talent, one of the best players in the
company's development and expansion.
Deal with a lot of knowledge and perspective
This is an excuse to deal with what's happening 24/7. This is a normal occurrence, in
some parts of the world, they are in the house. A global leader should be armed with a wide
range of ideas and opinions from different countries. They need to be flexible, respond to actual
differences in conflict resolution, be able to learn from mistakes, and be able to balance short-
and long-term goals.
Extensive network
The importance of being able to communicate with people in other departments or firms
can hardly be overemphasized. An effective leader should have a leader with good access.
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Relationships at the highest level in the world, that is, on the management site, so from small to
large, the world leader is focused on cooperation from all sides, both horizontally and vertically.
Conclusion
Thus, from the above carried out discussion it has been concluded that when an
organisation about to choose the internationalisation strategy for their brand. The proposed study
is based on the Unilever which is one the greatest known MNC company around the world. Here
the company is seeking forward to expand its business operations within the china market, so the
market analysis of the company in respect to the region and the environmental analysis of the
country is also discussed in order to formulate effective mode entry strategy for the
internationalisation (Elbra, Mikler and Murphy-Gregory, 2020). Moreover, there is a great
illustration of the mode of entry along with the best probable global leader quality which assist
the company in widening their operations in the foreign soil.
Individual Reflective Essay
From the above illustration one things is cleared to me I found this tutorial to be very
engaging and motivating. I think I may have built a deep understanding of the Global Business
Environment and the overall impact on the business environment. I found that my knowledge of
global business environment improved significantly when I went to class. I found that doing
business around the world is much more difficult in terms of the impact of globalization. In
addition, this class helped me identify it and use many of the environmental analysis tools in the
business environment-analysis from a global perspective (Crowley-Henry, O’Connor and
Suarez-Bilbao, 2020). I believe that this is an international business practice that has become a
little more complicated due to the influence of globalization. I updated my knowledge and skills
in the field of a foreign manufacturer, and the team found that, while abroad, classes for import
and export businesses, the rules changed as a result of existing opportunities and threats and
around the world. I knew that the import and export of goods and services are highly competitive
due to the effect of technology development and the ever-increasing role of the ruler in human
life. so are the geographical areas of a global business, which is also located in a broad area,
industry, and competition related to that industry. I've found that the vast majority of the
ecosystem consists of a range of natural materials that will have a huge impact on global
business. These factors, including political, legal, economic, political, environmental,
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technological and social factors, also affect the life expectancy of the global market. I was also
able to identify key strategies and applications that operators can use to internationalize their
operations, while keeping in mind that a large impact on the environment has a significant
impact.
The report introduced the concept of global reforms, in which, as I learned, changes
caused by globalization can pose a threat to business. In this section, he made it clear to me that
for general reform, processes, problems and difficulties in doing business in the international
arena. However, on the other hand, I think that the changes can be useful and bring new
opportunities for business development in the country. In addition, the processes of globalization
and changes will also pose a threat to both new and existing enterprises. This is an understanding
of the global business process, as it helped me a lot with the study of various products and the
reason why the analysis of this sector can be carried out within a particular region or country. In
addition, at the end of the session, I came to understand the fundamental nature of the global
business environment and how companies around the world can be in various forms, such as
global, regional, and national. Instructional attention, it is obvious that the global business
environment has changed a lot with the advent of new technologies and business in various
countries has become easier for business owners (Wahid and Prince, 2020). Following report
will be better understood if I want to be in a competitive position in the international market. It is
also useful to look at the overall picture of the market. In my opinion, this is an international
organization that needs additional research on moving to a new country to develop your
business. It also provides a better understanding of the scope and scope of the global business
environment in the fields of economics, law, social and technology. The GBE process also
helped me become familiar with the transformation process defined in a global context and
understand the important implications for the organization, community, and government. While
researching on the topic of the global business environment, tools for analysis, and it turned out
that I have different tools that I found better than the Global Business Environment, because it
was not supported by the influence of a statistical forecast.
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References:
Books and Journals
Bader, B., Schuster, T. and Dickmann, M. eds., 2020. Danger and Risk as Challenges for HRM:
Managing People in Hostile Environments. Routledge.
Barmeyer, C., Stein, V. and Eberhardt, J.M., 2020. Third-country nationals as intercultural
boundary spanners in multinational corporations. Multinational Business Review.
Bergs, Y. and Lub, X., 2020. International Human Resource Management in the Hospitality
Industry. The Routledge Companion To International Hospitality Management, pp.279-
295.
Crowley-Henry, M., O’Connor, E. and Suarez-Bilbao, B., 2020. Self-Initiated Expatriates’
Experiences in SMEs. Self-Initiated Expatriates in Context: Recognizing Space, Time,
and Institutions, 50(10m), p.1.
David, D.J., and et. al., 2020. Recent Trends in Channel Assignment Techniques in Wireless
Mesh Networks. In Deep Learning Strategies for Security Enhancement in Wireless
Sensor Networks (pp. 155-176). IGI Global.
Elbra, A., Mikler, J. and Murphy-Gregory, H., 2020. Knowledge and power: the role of the Big
Four in the competitive disharmonization of global corporate tax avoidance regulations.
In MNCs in Global Politics. Edward Elgar Publishing.
Kasahara, T., 2021. How Do Japanese MNCs Identify Talent? The Neglected Role of Regional
Headquarters in Global Talent Management. In Management for Sustainable and
Inclusive Development in a Transforming Asia (pp. 139-162). Springer, Singapore.
Kiessling, T., and et. al., 2021. Managing global knowledge transfer: Inpatriate manager
embeddedness and firm innovation. International Business Review, p.101868.
Kim, H.D. and Kamalanabhan, T.J., 2021. Task Performance of Expatriates Based on Emissary
Model of Global Human Resource Strategy. Management and Labour Studies, 46(1),
pp.78-93.
Knoll, C. and Sternad, D., 2021. Identifying global leadership potential. Journal of Management
Development.
Longino, A.S., 2020. The Importance of Cultural Intelligence in the 21st Century: A Human
Resource Management Perspective for Global Leaders (Doctoral dissertation,
Northcentral University).
Maletzky, M. and Grosskopf, S., 2020. Personnel mobility in German non-profit organizations–
an institutional perspective. Journal of Global Mobility: The Home of Expatriate
Management Research.
Minefee, I. and Bucheli, M., 2021. MNC responses to international NGO activist campaigns:
Evidence from Royal Dutch/Shell in apartheid South Africa. Journal of International
Business Studies, pp.1-28.
Qiu, R., 2020. International Business Project Assignment.
Ronit, K., 2020. MNCs and their role in global business associations. In MNCs in Global
Politics. Edward Elgar Publishing.
Sapuarachchi, D.B., 2021. Cultural distance and inter-organizational knowledge transfer: a case
study of a multinational company. Journal of Knowledge Management.
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Sokro, E. and Pillay, S., 2020. Host Country Nationals’ Attitudes, Social Support and
Willingness to Work with Expatriates. Global Business Review, 21(5), pp.1184-1199.
Szőcs, I. and Miska, C., 2020. Ethics in the context of cross-cultural management. SAGE
handbook of contemporary cross-cultural management.
Wahid, I.S. and Prince, S.A., 2020. High performance work systems and employee performance:
the moderating and mediating role of power distance. Journal for Global Business
Advancement, 13(6), pp.755-778.
Wang, C.H. and Varma, A., 2020. International management strategies and expatriate practices
of Taiwanese multinational corporations: a contingency perspective. Asian Business &
Management, pp.1-25.
Zhou, Y., 2020. An empirical study on expatriation success of MNCs: evidence from
Japan. International Journal of Manpower.
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