Ella's Kitchen: Tapping into New and International Markets

This report analyzes the global business environment and market entry strategies for Small and Medium Enterprises (SMEs), using Ella's Kitchen as a case study. It examines political, economic, social, and technological factors impacting SMEs, particularly in the UK. The report explores the opportunities and threats faced by SMEs in a competitive global landscape, including future planning, market dynamics, and the impact of change and business interruptions. It delves into the benefits of global trading blocs, tariff and non-tariff barriers, and the advantages and disadvantages of import/export procedures. Furthermore, it compares various market entry methods for SMEs, assessing their benefits and drawbacks, and provides recommendations for successful international expansion. The report covers a range of topics including market share growth, competition, and the challenges of operating in diverse global markets, offering insights into how SMEs can navigate the complexities of international business.

Tapping into New and
International Markets

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Description of global business concern for the procedure of small and enterprising institution 3
Provide evidence based analysis of the global business environment in which small and
entrepreneurial businesses operate using specific examples..................................................4
Explanation of danger and possibility that is face by SME's in exploding competitive global
situation..................................................................................................................................5
Critically evaluate and show of menace and possibility faced by SMEs...............................6
TASK 2............................................................................................................................................7
Benefits of global trading blocs and agreements....................................................................7
Describe the several tariff and non-tariff hurdles that occur in global market area...............8
Measure the benefits of global trading blocs and concord...................................................10
TASK 3..........................................................................................................................................10
Benefits and drawbacks of importation and exportation procedure and how a deal can be
barred....................................................................................................................................10
Describe comparison among merchandise and service imports and exports.......................12
Apply appropriate import and export procedure by offering recommendations..................13
TASK 4..........................................................................................................................................13
Several ways in which SMEs can take entry into global markets........................................13
Comparison and contrast the several methods by which SMEs can take entry into global
market, assessing the benefits and drawbacks of every method..........................................14
Analysis of several methods which is opted by SMEs and by providing appropriate
recommendations..................................................................................................................15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Market is referred as an area that undertake purchasers and vendors simultaneously under
few conditions and two or more than organizations are involved to conversation suitable
merchandise and services. For this, market can be the online or physical outlet as in online there
is no direct contact among buyers and sellers (Dwyer and Vongvisouk, 2019). In this
international market undertake the geographical market that exist at the external side of
international borders. The assignment is supported on small business concern and their overall
enlargement in other areas that helps in identifying the overall global business situation and also
analyzeanalyse the opportunities and challenges for the growing of institution. To carry forward
this report, Ella's Kitchen is considered which deals in organic baby food that is sold in
supermarkets and founded in 2006. Company also has 30% share for the baby food sector.
Company has around 62 employees working for them and has the global turnover of
approximately $121 million. Moreover, it also leads to explain the suitable benefits of trading
blocs agreements and define various duty and non-tariff barriers which are present in global
marketplace. Apart from this, comparison among merchandise and services imports are also
discussed that leads to evaluate various methods for small business concern into global
marketplace.
TASK 1
Description of global business concern for the procedure of small and enterprising institution
Worldwide business situation undertakes the overall environment of several countries
that leads to impact the judgement making of institution undertaking the effective utilization of
resources. It is also essential for company to identify the global business environment in an
effective manner that depict the information and environment of area that leads to impact the
success of company (Hollinshead, 2020). The assignment is relying on the enlargement of small
businesses in Europe, specifically in United Kingdom for the suitable enlargement of enterprise
transaction in an effective manner. For this, several aspects are discussed as: Political factors: It is concerned with the political stability and condition of country for
the business operations and it is also essential to identify it. Moreover, Europe has the
favourable condition for the increase of new and small business concern as they tend to
offer effective opportunities to small businesses due to the political progress. For

example, the legal regulations of state are favourable for the effective expansion of small
businesses regarding the investing and commerce as it is advantageous for company. In
terms of Ella’s Kitchen, they tend to undertake taxation policy of UK and suitable issues
with effective factors of bureaucracy, foreign trade policy, small business funding and so
on that impact the growth of company (Ella's Kitchen, 2021). Presently, Ella’s Kitchen
tends to opt local power structure considering the local trends in order to deal at the
domestic level to expand at the global level and negatively impact the overall
performance of Ella’s Kitchen. Economic factors: It undertake various factors like employment rates, wages and so on
that put direct impact on the functioning of Ella's Kitchen. For this, company tends to
expand in India by considering the wages and inflation rates which is quite low that can
become opportunity for Ella's Kitchen in its expansion. Furthermore, these factors are
concerned with the overall economic performance that impact the operations of small
businesses and their decision making (Najmaei and et. al., 2017). By undertaking the
situation of pandemic, it tends to bring lot of economic crisis across the world that
negatively impact the functioning of Ella’s Kitchen (Economic environment, 2021). To
overcome from this factor, Ella’s Kitchen need to organise market research in terms of
mitigating risk factor. Social factors: These factor tends to undertake trends of market area that put direct
impact over the performance of Ella's Kitchen. In relation with, Ella's Kitchen they are
quite capable to serve for the new market area by having proper knowledge regarding the
market trends. For this, there are various socio-economic components that tends to impact
the overall performance of Ella's Kitchen (Ella's Kitchen, 2021) by properly analysing the
ethical situations of UK that tends to influence the overall demand of products and their
operations. Moreover, by considering the cultural factors of UK, Ella’s Kitchen need to
consider strategic formulation in order to respond over the suitable operations as per the
success strategy (Castaldi and et. al., 2019). In terms of Ella’s Kitchen enhancing support
for the renewable energy leads to impact the operational efficiency as it can become
threat for respective company.
 Technological factors: It is the all important aspect which is related with each and every
company and for this, the technical components are identified like effective digitalisation

and advancement of technology in country. For this, Europe is famous for advanced and
updated technology all over the world which is useful for the operations of company
(Butzbach, Fuller and Schnyder, 2020). It is useful for company to expand their business
at the international level and reason behind this is the automation and information
regarding ICT which is beneficial for the expansion of market in an effective manner.
Moreover, one of the most effective technology is Artificial Intelligence (AI) that is
useful for companies to secure their details and transactions that become an opportunity
for small companies (Ella's Kitchen, 2021). In order to enhance the adoption of digital
technology that can become opportunity for Ella’s Kitchen in order to make things easy
considering payment and digitalisation that can positively impact the operational
efficiency of Ella’s Kitchen and its services (Dwyer and Vongvisouk, 2019).
The global business environment in which small and entrepreneurial businesses operate using
specific examples.
SMEs are those businesses who tends to maintain suitable assets, revenues for the
number of employees below for the suitable threshold. For this, it tends to offer suitable type and
defined category which is depend on the number of characteristics. SMEs are important for the
economy regarding the overall growth and development as it leads to offer employment
opportunities and open new markets (Rahman, Zailani and Musa, 2017). It also tends to
contribute around 51% of the turnover which is being generated by the private sector. SMEs also
tend to create a group for the skilled and semi-skilled workers in order to support upcoming
industrial and business expansion in country. This is how the economy of the region is supported
and influenced by the small business organisations and the enterprises of small in size bring
revenues for the society, jobs and employments and more importantly providing a regular money
flow to the society as people are employed and have increased their purchasing power.
Global business environment is important to examine as it aid in characteristic the
affirmative and destructive aspects for the small businesses which are concerned with the
suitable business situation (Lu, 2017). In regard of this, it undertakes suitable key actuation
regarding the experience and expansion in United Kingdom. Few factors are as follows:
 Market share growth is related with the success of market and also possible for the huge
amount of market area which is being achieved by companies at the international level. In

regard of this, company tends to achieve success for the help of new customers and
commodities.
 Competition is another key driver that occur from both the international and local market
that can become threat for small businesses (Nordin and Lindbergh, 2019). For this,
organisations need to come with unique approach in terms of expanding their business in
various regions to ensure the growth and property in dynamical business situation.
 SMEs, or small and medium-sized enterprises, are defined differently around the world.
The country a company operates in provides the specifics on the defined size of an SME.
The sizing or categorization of a company as an SME, depending on the country, can be
based on a number of characteristics. The traits include annual sales, number of
employees, the amount of assets owned by the company, market capitalization, or any
combination of these features.
Explanation of danger and possibility that is face by SME's in exploding competitive
global situation
Expanding businesses tends to face suitable challenges that undertake several issues and
opportunities as it need innovative solutions for the success that can become best approach for
company. It also leads to undertake identification and overcoming from the prominent barriers as
it is related with effective development and growth of business. In this, suitable leadership is
useful in order to develop and make new opportunities for the growth in future (Chen, Kim and
Kohli, 2017).
Opportunities Future Planning: The first and the biggest opportunity which exist within hands of Ella's
Kitchen is of future planning. The entity can undertake the suitable planning which is
essential to achieve growth for business and acquire sustainability in the competitive
business environment. This is an essential aspect to conduct suitable planning that helps
in offering suitable vision to the managers regarding the expansion of the firm and its
movement to new workplace and region (Prashantham, Zhou and Dhanaraj, 2020). It is
also useful to reduce different risks which can become significant barriers for Ella's
Kitchen in future in regards to growth of business and the expansion. Keeping up with market: Another impactful and influencing opportunity which exist for
Ella's Kitchen is of keeping up with market and stay innovative. A major concern for

company today for surviving is keep on innovating and addressing the requirements of
customers (Holzmayer and Schmidt, 2020). Keeping up with market offers Ella's Kitchen
a chance to effectively understand their customers and potential buyer and make sure of
offering them the best products and reach to them before any other.
Threats Change: Change refers to the changing environment and business situation due to
increasingly evolving market trends and requirements of customers (Tolliver, Keeley and
Managi, 2020). Thus, change is a threat for and SME's like Ella's Kitchen as entity faces
problems in keeping up the market requirement and lacks behind in addressing the needs
of customers as compared to other larger businesses creating a huge threat for the firm.
 Business interruption: It represent the interruption of businesses like threat from current
institution and new entrants. It represents that SMEs face danger for their enlargement
and also face hazard due to different business concern (Petrou and et. al., 2020). These
existing and new entrants in the industry will create problems in growth of Ella's Kitchen
as the market will be saturated soon and the force of existing as well as new rival will be
huge.
Evaluate and show of menace and possibility faced by SMEs
For the expansion in international businesses most of the organisations face threat and
also get accidental to person it into chance (Oviatt, Maksimov and McDougall, 2021). SMEs
need to identify their danger and chance which are helpful to deal with any sort of change for the
expansion in global market. Therefore, it is analysed that planning and keeping things updates
leads to bring more opportunities for small businesses. For this, changes in businesses can
become major threat for small businesses and it is needed that companies must have competent
leaders that can apply effective leadership for their management.
TASK 2
Benefits of global trading blocs and agreements
Trading Blocs is a union of bundle or countries and nations which are aligned and have
made arrangements with each other for developing their training policies and to be part of free
trade policies with less barriers and supporting one another (Tajeddini and Ratten, 2020). The

agreement of trading blocs was made for developing common training policies which are flexible
and advantageous for all and reduced barriers.
Commerce blocs depict the suitable grouping of state that leads to made agreement
undertaking the trading among them to have suitable barriers for free trade deals (Prashantham,
Kumar and Bhattacharyya, 2019). For this, there are three kinds of trade holds which are
undertaken by small businesses: Free trade area: The suitable trade understanding is escaped from tariff among
associates as no external ones are engaged in it. Therefore, the member of country leads
to negotiate on their own trading. Custom union: It depict the free commerce area and communal outer duty as the
associate of trade bloc tends to easily bargain with other party for effective deal.
 Common or single market: It is effective for eliminating for the prominent barriers of
trade in order to transfer products, workers, services and capital. Besides from this, non-
tariff barriers lead to reduce effective level of harmony within the economy.
Therefore, effective agreement for United Kingdom is quite common which is useful in
offering free commerce of merchandise across the state that tends to develop ratio of
merchandise without any barrier of national borders.
Benefits of Trade Bloc and agreements Free trade: The first and foremost feature which is also a benefit of trading blocs is the
free trading area provided to businesses of those region or nations who are part of the
agreements. This free trading areis will be the most suited and advantageous aspect for
Ella's Kitchen as a SME offering it a huge ground to do business and make revenues
(McCormick and Somaya, 2020). Wider Market access: The free trading is will also be offering the businesses part if
trading blocs nations, a significant are of market for conducting business transactions like
selling and even purchasing that is importing good form potential producer with low cost
and easy transactions and no complexities (Rahman, Zailani and Musa, 2017). Ella's
Kitchen being an SME will be holding greater opportunity of exposure to a larger market
and to a wider business area. Size of market: It depict the improvement of abroad direct investing which is
advantageous for overall economy of UK. It depicts the development in the scope and

size of small business. Hence, it also tends to develop market share to offer better
opportunities for companies of UK of trade bloc. Economic leverage: It permit the production that helps in activity of economical scale by
considering mass industry as it leads to eliminate the reducing of expenditure of industry.
Hence, trade block is useful in enhancing the economical purchase of involving state of
trade understanding (Tajeddini and Ratten, 2020). In regard of this, rapid change of
technology that helps in trade bloc to increase the efficiency of manufacturing process.
So, it leads to depict better productivity to achieve effective economies of scale for
organisations of UK.
Disadvantages of Trade Bloc and agreements Job Outsourcing: The first drawback of trading blocs and agreements is of job
outsourcing. As national borders are open and people has easy access to other regions
who are part of the agreements the job outsourcing is a common outcome. This results in
moving talents from other regions and increasing unemployment in own region (Literat,
2017).
 Natural Resource Exploitation: The next very significant damage which is caused by
trading blocs is exploitation of natural resources. Due to businesses having flexibility for
conducting trade over exploitation of resources takes place the domestic and international
businesses all are engaged in increasing revenues at any cost including affecting the
environment as well.
Describe the several tariff and non-tariff hurdles that occur in global market area
At the time of running business at the global market, various tariff and non-tariff barriers
are occurred which are faced by small companies. For this, few of them are mentioned as:
Tariff barriers:
These hurdles are relying on the custom tariff which is obligatory on the commerce of
suitable products and employment at the time agitated them crosswise the home boundary line
that comes under public bodies and government of country with the suitable objective of
protecting small companies to keep equilibrium among the cost. Some of them are discussed as: Particular tariff: It effectively represent the fixed charges which are being relevant on
the essential export of products and employment on specific unit. Along with this, it tends
to get vary as per the kind of product which are imported on the grounds of physical

entity as per the weight and measuring of transportation commodities (von Oppenkowski,
Hassler and Roesler, 2019). Ad valorem tariff: It is helpful in offering just trade obstruction as the custom duty which
is applicable on the cost in comparison to lower price products. Hence, it also tends to
eliminate the load of tariff for small companies.
Non-tariff barriers:
These are reasoned as the non-tax limitation that are being imposed by public bodies in
terms of having control and observation on abroad trade. Some of the non-tariff barriers are
mentioned as: Voluntary Export Restraint (VRE): This is a very significant Non-tariff barrier which is
a self-imposed trade restriction by the country on their exports. In simpler words, the
exporting country itself impose a break on its exports and the number of goods being sold
outside the domestic market. These goods are of particular nature and this barrier is
imposing by the request made by the importing country or region (Milner-Gulland and et.
al., 2018). Licenses: It represent the backhand approval which is being given by the authorities as it
tends to permit business to transfer and deal with particular type of products and services
in Worldwide market (Petrou and et. al., 2020). For this, effective use of licence and
argumentation are made by authorities of state to make over restriction for the suitable
flow of trade with the objective of direction of business relation and enhancement in
prices which are being faced by companies.
 Import quotes: It depict the suitable kind of barrier which is being imposed for the
amount of particular product and services which are imposed by companies from other
countries. Hence, movement of products are permitted for the suitable bound of measure
which is being determinate by governance and legal control.
 Subsidies: It is being used by the domestic manufacturer or small organisations in terms
of reducing the domestic cost and limit their imports (Dwyer and Vongvisouk, 2019). In
terms of Ella’s Kitchen, presently they are dealing at the domestic level and because of
this subsides is effective factor in order to eliminate additional cost by limiting the
imports of company.

 Embargoes: They were effectively use when the country tends to ban trade for the
specific products and services with another country. In regard of this, government trends
need to take effective measures in terms of supporting for the specific political and
economic goals (Castaldi and et. al., 2019). In context of Ella’s Kitchen, the harmful
products which is not appropriate for babies are banned by the government that can relies
under the barriers.
Measure the benefits of global trading blocs and concord
Effective formation and creation of trade blocs among various countries leads to offer
suitable benefits to the small companies and also tends to create positive impact over them. In
regard of this, trade blocs lead to create suitable opportunity for small businesses in terms of
having access which is concerned with advanced technology as it tends to enhance their
efficiency regarding the effective production and manufacturing (Yip and Prashantham, 2019).
Moreover, for the free flow of person is also bankable for small business concern as they lead to
have cheap labour that helps in eliminating production cost and economic leverage by meeting
prominent goals of economies of scale in SMEs.
TASK 3
Benefits and drawbacks of importation and exportation procedure and how a deal can be barred
Exporting is the process that leads to undertake selling and exchange of commodities to
customers in particular area with the objective of having suitable market share and profitability.
Importing is a process of purchasing good and services that is raw materials and intangible
services from international dealers. It undertakes effective export process which is being
discussed in terms of small businesses:
Direct exporting: This process of exporting undertakes the effective sales of products and
services which are being developed in foreign area without any engagement of middleman. For
this, small organisations lead to take responsibilities to sell products and services across the
country and also being responsible to deal with foreign organisations (Ram and Liu, 2019). For
this, suitable benefits and drawbacks are as:
Benefits:
 It helps in offering effective control over the transaction of sales and make it more
effective in terms of developing direct connection with customers.

 Middleman are being eliminated from the process of exporting by which profitability is
in the part of company.
Drawbacks:
 For this, companies are equally responsible for the safety and risk which are being
engaged in the transaction of production.
 It requires more time and money to attract customers who belong from abroad countries
without the help of mediator.
Indirect exporting: This method tends to depict the suitable movement of products with
the help of middleman in foreign countries. For this, independent agents and export management
organisations are responsible to sell intermediaries and also responsible for moving and
exporting commodities at the foreign countries (Holzmayer and Schmidt, 2020). Its benefits and
drawbacks are discussed as:
Benefits:
 It helps in offering less risky for the export of their products and services with the help of
sales intermediaries. Along with this, the limited time and investment is required in comparison to direct
investment.
Drawbacks:
 It leads to eliminate profit margin of this process undertaking the commission agent and
middleman which are being engaged.
 It also tends to take over the control for the sales transaction which is led by the direct
export.
Hence, in terms of securing deal for the export process they lead to use direct method
which leads to recommend two small companies in order to take more control over the sales and
transactions. For this, effective market research and examination is done by small businesses to
analyse better export opportunities at the international market.
International purchase order is a document which is normally issued for preceding by
an exchange of information between tow specific parties the importer and the exporter in regards
to the price, quality and quantity of products (Zou and Petrick, 2017). In terms of Ella’s Kitchen,
they make effective use this document when they have small kind of transaction at is for the
domestic purpose by considering two more parties which is sender and recipient.