British Millerain: Analysis of EU Expansion for Global Business Module

This report analyzes British Millerain, a UK-based manufacturer of waxed cotton fabrics, and its planned expansion into Sweden. The introduction provides context on global business and the company's background. The main body includes an overview of British Millerain, an analysis of the external e...Read More

ASSESSMENT

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAINBODY ...................................................................................................................................3
Overview of selected company...................................................................................................3
External environment of SME company, UK.............................................................................4
Detail external analysis of European nation where selected firm which to expands its business.
.....................................................................................................................................................5
Entry mode analysis....................................................................................................................8
Recommendation.........................................................................................................................9
CONCLUSION .............................................................................................................................10
REFERENCE.................................................................................................................................11

INTRODUCTION
Global business refers to company which operates its facilities across the world. This is
different from an international business as these units sell product worldwide but has facilities &
operates only in their home nation. A company operates it business in various modes, types and
offers different products on the basis of respective industry & business environment. In which
these companies varies on certain nodes such as on the bases of size, purpose etc. (Manning,
Kannothra and Wissman‐Weber, 2017). The following report is based on British Millerain
company, it is a British manufacturer and deals with outwear of waxed cotton fabrics. It is
located at Lancashire, UK and was founded in 1880. This firm wish to expand its business in EU
nation for which this report covers the analysis of external environment of EU nation as chosen
firm is planning to expand. Further, entry mode of company in EU nation is assessed. At the end
recommendation on the basis of analysed for operational strategy as well as foe expansion is
suggested.
MAINBODY
Overview of selected company
British millerain is leading firm in text tile industry related to outwear of waxed cotton as
this was originates in 1880. This is very innovative and offers various trendy fabrics to
consumers for enhancing the sales and profitability of company. By this they effectively matins
their position at marketplace of UK. This is because of their hard work, dedication and efforts
that they made for gaining success.
British millenarin deals with various range of fabric and designer outfits in order to meet
the demand of consumers including workwear and medical application (Tallman, Luo and
Buckley, 2018). This is a 1800s company and expanded further with the purchase of JT Inglis in
2005. now they wish to expand their business in European nation for enhancing the growth and
sales of company as well as to expand its business at large scale. For this they adopted various
strategies along with it made many partnership with other leading brands within same industry.
Entities of chosen firm is carried out for long sustainability as well as for supplying
commitments and qualitative product to suppliers.
Selected firm is known for outerwear clothe made up with cotton waxed fabric. This company
have a great strength as their wax fabric enable them to gain huge market shares and maintain

image of company. Reason behind this is their investments on research and development sector
in order to maintain the position of leader within Heritage textile industry. British millerian
operates its business in UK since very longer. Now they wish to expand in EU nation, Sweden
by the end of 2022. Sweden is beautiful place exist in northern Europe. As in chosen nation there
is no firm which offers such types of product that British millerain offers. So they have
opportunities to grab Sweden peoples by operates their business at Sweden.
External environment of SME company, UK
External environment includes all macro and micro factors which possess power to
influence overall performance along with operation of company. In which British millerain deals
with textile industry and popular for their offering of best quality products as well as fabric made
up of waxed cotton (Ductor and Leiva-Leon, 2016). Therefore, there are several factors which
may affects their business function at hosted nation so it is vital for them to analyses all factor
before expansion. Some of the factors are as follows:
Social culture: This component mainly emphasis on demographic characteristics and
trends that are flourish in industry within specific market. Social environment of UK is dynamic
in nature , this reflects that company needs to continuously focuses on changing trends within
textile industry. So this creates a little trouble for company to create strategies accordingly.
Whereas one positive impact of this factors is consumer loyalty with relation to respective brands
that are being obtained by company by full filling the needs and d3eamnsd of consumers.
Economic: This is related with the inflation rate, GDP of nation, growth rate and many
more others factors related to economic aspects. United Kingdom is a country which is famous
for economic support in context of different industries and business. Therefore, British Millerian,
have not concerned with this factors as country has stable and supportive environment.
Currently Brexit is also take place which affects a little on operation of company as well as
creates uncertainties in economic surroundings.
Political: This factor represent governmental influences along with interferences in
business operations and functioning. In UK, it has been found that there is political stability is
high for business in order to attain a values which adds support and operates business
successfully (Oyedele, 2016). In context of British millerain, they operates their business at UK
since last few decades and that renders company towards stability and growth. That reflect
positive impacts on its operation.

Legal: It is a part of extended framework that relies on legal laws along with regulations
that is governed by government on specific industry along with company. In which the chosen
firm is related with the textile firm and that is dynamic in nature as well as changing so it is vital
for that ton adhere all laws for the smooth running of operations. Additionally, effective
implementation of each rules along with regulations at marketplace. Therefore, British Millerian
need to have look over various laws and regulations specially in order to be safe from
unnecessary expenses and legal charges while exporting and importing of goods.
Technological: This factor is related with the advancement in technology as well as
development that take place in this Morden world with relation to significant industry in that
firm operates along with their impacts on business unit. British Millenair is not only popular for
their offering but also have good legacy that is been conduced from generation to generation.
Additionally, chosen firm is known for their innovative and creative offings in order to satisfied
the consumers needs (Keivanpour, Ait Kadi and Mascle, 2017). In textile industry, technology
plays vital role as it includes various techniques for producing innovative outfits. As new and
updated technologies comprises highly skilled candidates, mixture of design, unique creation
along with techniques such as Swedish peoples like to wear silk shirt for this, British millenair
company have opportunity to offer silk plus cotton outfits by adhering innovative technologies
for carrying out this. So this will give them a height in order to meet the expectations of
consumers.
Environmental Components is new added factor in external factor which relies on
making effective process and suitable practices by firm with relation to reducing harmful impacts
on society or nature. Textile industry is one of the leading sector with creates more pollution and
carbon footprints. Therefore in context of this factor government imposed several rules for
protecting the natural surroundings and all that need to be address by all firm which operates its
business at there with the aim of reducing the impacts on society and overall natural ecosystems
of world.
Detail external analysis of European nation where selected firm which to expands its business.
European union is an administrative body which consist 27 member states and have
political along with economical union that are situated in Europe. United Kingdom is recently
exited from EU in January 2020. In which European nation has developed an integral market by
distinguishing and practising standards systems along with laws which are applicative to all

individuals of nation and have to agreed them towards conduction of policies. In which the
main purpose which is served by development of European nation along with integration of 27
states is to generate a balance and effective trade policies in order to offers benefits to all
members for conducting domestic as well as international business.
British millerain has been running their business in United kingdom from past decades
and now with emerging condition of market, company is executing these changes in their
operational strategies and activities (Zhao and Ferran, 2016). These outcomes will aid company
in addressing expansion of company for moving its operation in Sweden a European union
member.
Sweden belong to EU nation and have huge number of textile firm there. In which the selected
firm wish to expand its business unit in Sweden market by the end of 2020, hence it is vital for
them to carry out external environmental analysis with the help of PESTLE model that is
underneath:
Social culture: In context of global business, it is a serious factor to look over by
business unit as it comprises various aspects such as demographic, culture changes etc.
Therefore, the outcome is British Millerian need to be careful about social factors needs along
with requirements of Sweden peoples before entering and offering them their respective products
or services. Further, the firm is new to the region which puts adverse effects as entity has to
made more concise and large investment in their research and development operations in order to
understand the culture of that nation as well as they are dealing for gaining more specific
knowledge about expectations of consumers from these brands with innovative and creative
offering.
Economic: Due to pandemic, economy of nation will crises, and all factors along with
economic aspects got mis-balanced and become unknown so for this it is vital for company to
look over that. The world is still suffering from this situation by which the economic condition is
highly affected due to this crises. Additionally, UK got divided from EU nation and due to this
the economic policies also get changes and need to be adhere by all business unit while operating
business functions. In context of this the major impact of this factor that is faced by British
millerain is to balancing all economic activities of both EU and UK nations effectively as well as
they will not import and export their product due to some policies and that might effects the
exchange rate of company.

Political: The governments constitution of select nation is limited in constitutional
hierarchy with parliamentary systems. On the basis of political structure of Sweden is that the
power comes from nation peoples and that acts as the base of parliamentary democracy of
Sweden (Boshyk, 2016). In which all peoples have equal right and same power for conducing
business. So on the basis of that political factor of chosen nation is dynamic in nature for this
British Millerian need to be flexible with relation to smooth running of business.
Legal: This factor is concern with laws and regulation of particular region and impose
effects on smooth performance of company in respective sector or country. For which EU is an
administrative nation which holds 27 states and that develops systematic operational loss or
strategies for company to perform with common purpose engage in fair trade policies. In which
the selected company is UK based and expansion nation is European. In which the UK got
recently separated from EU and due to this little problem was arises with relation to legal
challenges for British Millenarian company while operating its business in Sweden. The primary
factors or challenges that face by company is to adhere both EU and UK nation laws along with
policies. This can creates challenging situation along with working environment for company
and as well as their operation in terms of following on legal concepts and directing them towards
unnecessary legal expansion because of various misconduct.
Technological: Advancement in technology as well as availability of updates tool and
technologies to business with relation to respective nation is the concern factor in this forces.
6This factor is categorised into two parts which takes place in IT world and other is related with
the specific industry. Technology is continuously developing & evaluating from past centuries.
Therefore, it puts significant impact on operation of company as well as on different sectors like
textile. While expanding in Sweden market, chosen firm need to have technological knowledge
of available technologies at marketplace of Sweden for effective utilization of resource which are
available for them (Wang and Lu, 2016). With the help of research they will easily determine
that factors and can developed strategies in order to combat with this factor and for getting
famous among Swedish peoples.
Environmental: This component is concerned with environmental law along with
requirements of various nations with relations to decision making ruling parties in order to keep
environmental and societal balance by keeping track of overall performance of business and the
other production activity in order to determine the impact on ecological balance of region.

Sweden region and market will be totally new for British Millerian and that ultimately made a
concerning factors for business units and for that they have to cope up with CSR activities
(Corporate social responsibility)as it holds society and their peoples whom they are planning to
generate their operations. With relation to environmental components, chosen company needs to
go through with all the rules and policies for operating their business at Sweden and have to
address all that rules which are governed by Sweden government related to nature. This factor
will not only enable entities to work ethically but also assist society by contributing some part to
them in order to make use of resources as well as offers a unique power with a good image to
business (Kumar and et.al., 2019). For new business operates at new location holds strong CSR
and less environmental damages that ultimately influence peoples and enables company to
establish a strong position at marketplace within Textile industry.
Entry mode analysis
Entry mode can de defined as path that is acquiring by companies in order to get entry at
various new location for operating their business at that entry place. In context of chosen firm,
British Millerian, they belong to textile industry which is well known for a competitive and cost
consuming business mode. With regards to aim of gaining entry in Sweden market for offering
wide variety of product and services so chosen firm needs to have highly skilled workforce in
order to get entry for adding more values in market presences and popularity.
With relevance to above most effective and suitable entry mode for British Millerian
could be partnership bin order to expand their business in Sweden. This is considered as most
beneficial and highly value adding mode for company that is adhere by the owners of business
runner (Derudder and Witlox, 2016). In this company join hands with others parties in order to
attain the common objective and goal within small time frame.
Partnership refers to an agreement that is happened between two or more than two parties
for achieving same organisational gaol as well as for representing their respective profit and loss
on the basis of investments while establishing business operations. In context of partnership,
selected organisation seeks to carry out partnership with domestic parties while entering into
chosen destination.
Advantages that perceived by British Millerian while engaging in partnership agreements:
Most primal benefits that will be enjoyed by an organisation during expansion of their
business at Sweden through partnership is shared cost, low investments required as well as

reduction in risk. Additionally, they will able to increase their knowledge related to market. For
this it is vital to carry put partnership with domestic party which have proper knowledge in
textile sector as well as need to belong with Sweden place. Sweden market is totally new for
selected company but is they made partnership with domestic firms who have great knowledge in
textile field will provide huge benefits to hem for gabbing marker shares by increasing sales as
well as satisfying requirements and needs of consumers (Brunet-Thornton and Martinez, 2018).
With the assistance of this they will able to generate competitive edge for other players of market
within same industry with the help of domestic marketers.
Another benefits that British Millerian company will enjoyed while entering into new
market with the help of partnership mode of entry is division of burden between partners instead
of resisting burden itself. In relevance to this the Sweden market for chosen firm is totally new
and due to which there is chances of failure. Hence with the help of partnership, entities of
British millerian company will able to overcome this risk, loss as well as other expenses related
with expansion. Therefore it offers various benefits to company and will able to balance financial
expenses and contributes towards company's capital resources.
Recommendation
From above stated analysis related with the external environment of company in UK
along with Sweden, ample number of European union where entity is expanding their firm with
the assistant of another leading firm by bonding them as well as carry out partisanship strategy in
order to enter new market segment.
On the basis of evaluation partnership reflects effective, strong and valuable path for
entering in new market segment. Along with this there are another option is also suggested for
selected firm and that could be merger and acquisition. This is because benefits that is associated
with partnership is also connected with merger and acquisition.
So with the help of all these British millerain fir will able to gain all advantages while
using merger & acquisition tool in order to enter Sweden textile industry. Under this, the primal
benefit related with merger and acquisition is low risk association towards devising business
decision. As it is the interaction between few peoples along with only top management of
company instead of getting divided in number of partners connected.

CONCLUSION
From above discussed report it has been analysed that it is vital for company to analyses
external market effectively before expanding business unit at various location so that they
successfully gain the advantage of that nation. As the selected company operates business in
textile at UK and now they expand their business in EU country. Due to this there are various
factors such social culture, political, economical and so on factor which might be hamper their
overall performance. With the help of PESTLE analysis company will able to analyse all these
factors effectively. Additionally, entry mode for expansion is evaluated in order to increase the
operation efficiency and profitability of company

REFERENCE
Books & Journal
Boshyk, Y. ed., 2016. Business driven action learning: Global best practices. Springer.
Brenkert, G. G., 2019. Mind the gap! The challenges and limits of (Global) business
ethics. Journal of Business Ethics. 155(4). pp.917-930.
Brenkert, G. G., 2019Willcocks, L., Lacity, M. and Craig, A., 2017Teaching Cases, 7(1), pp.17-
28.'
Brunet-Thornton, R. and Martinez, F. eds., 2018. Analyzing the impacts of industry 4.0 in
modern business environments. IGI Global.
Derudder, B. and Witlox, F., 2016. International business travel in the global economy.
Routledge.
Ductor, L. and Leiva-Leon, D., 2016. Dynamics of global business cycle
interdependence. Journal of International Economics, 102, pp.110-127.
Keivanpour, S., Ait Kadi, D. and Mascle, C., 2017. End-of-life aircraft treatment in the context
of sustainable development, lean management, and global business. International Journal
of Sustainable Transportation, 11(5), pp.357-380.
Kumar, P., and et.al., 2019. Online business education research: Systematic analysis and a
conceptual model. The International Journal of Management Education, 17(1), pp.26-35.
Manning, S., Kannothra, C. G. and Wissman‐Weber, N. K., 2017. The strategic potential of
community‐based hybrid models: The case of global business services in Africa. Global
Strategy Journal, 7(1), pp.125-149.
Oyedele, A., 2016. Emerging market global business model innovation. Journal of Research in
Marketing and Entrepreneurship.
Tallman, S., Luo, Y. and Buckley, P.J., 2018. Business models in global competition. Global
Strategy Journal, 8(4), pp.517-535.
Wang, H. and Lu, M., 2016. China goes global: The impact of Chinese overseas investment on
its business enterprises. Springer.
Willcocks, L., Lacity, M. and Craig, A., 2017. Robotic process automation: strategic
transformation lever for global business services?. Journal of Information Technology
Teaching Cases, 7(1), pp.17-28.'
Zhao, J. and Ferran, C., 2016. Business school accreditation in the changing global
marketplace. Journal of International Education in Business.

APPENDIX
(Source : British Millerian, 2020)