Unit 43: Analyzing International Business Environment Report

This report provides a comprehensive analysis of the international business environment, focusing on strategies for Small and Medium Enterprises (SMEs). It begins with an overview of the global business landscape, examining opportunities and threats faced by SMEs in an increasingly competitive market. The report includes a detailed case study of "The House of Dorchester," a UK-based chocolate company, analyzing its expansion into the European market using Porter's Diamond Model. It explores the advantages of international trading blocs and agreements, as well as tariff and non-tariff barriers. The report also evaluates the advantages and disadvantages of importing and exporting, and how SMEs can tap into international markets, comparing various methods and justifying recommendations for implementation. The report highlights key aspects of the global business environment and policies for SMEs, providing valuable insights into international business operations.

Unit 43
Tapping into New and International Markets
International Business Development
Student Name-
Student ID-
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Table of Contents
Introduction......................................................................................................................................4
Business Overview..........................................................................................................................5
Explanation of the global business environment in which small and entrepreneurial businesses
operate:........................................................................................................................................5
Analyzing the threats and opportunities that face SMEs in an increasingly competitive global
environment.................................................................................................................................7
Providing the evidence-based analysis of the global business environment in which small and
entrepreneurial businesses operate using specific examples.......................................................8
The analysis of The House of Dorchester’s business expansion in the European Market by
using the “Porter’s Diamond Model”........................................................................................10
Determining and analyzing the advantages of international trading blocs and agreements......11
Explanation of the various tariff and non-tariff barriers that exist in the international trading
environment...............................................................................................................................14
Evaluation of the advantages of international trading blocs and agreements and their
implications for SMEs...............................................................................................................15
Determining the advantages and disadvantages of importing and exporting and how to secure
a deal..........................................................................................................................................16
Explanation of the differences between merchandise and service imports and exports............18
Evaluation of the methods in which SMEs can tap into international markets.........................20
Comparison of various ways by which SMEs can tap into international markets, assessing the
pros and cons of each method....................................................................................................21
Justifying recommendations with consideration and evaluation of the implementation of
methods......................................................................................................................................22
Conclusion.....................................................................................................................................23
References......................................................................................................................................24
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Introduction
This is the age of globalization and every sector, as well as businesses, are running from home to
abroad across the borders. By adopting the concept of globalization, businesses are expanding
much more in the international market. In this report, the globalization effect and the
international business environment for SME business will be described. Here a medium business
firm The House of Dorchester’s business operation and expansion in the international market
will be analyzed. Firstly, the report will describe the threat and opportunities of the firm as well
as the advantages of international trading. It will evaluate the effective plans and processes.
Finally, the report will demonstrate the evaluation process of the international market by “The
House of Dorchester”. The overall report will help to understand the international business
environment and policies for an SME firm.
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Business Overview
“The House of Dorchester” is a prominent chocolate company in the UK that started its business
around fifty years ago. Which offers a wide range of premium chocolate items, sweets, and
different luxurious gift items to its customers. The uniqueness of the company is they provide a
wide range of hand-making traditional British chocolates and they manufacture innovative and
diverse products which easily bring a smile to the customer’s face. After starting its journey, it
has become a leader in its sector. It has a large market share in the UK with its large operational
channel (Taylor, 2017). Besides the domestic market, it’s going to enter into the global business
environment and adopt various strategies to sustain itself in the global market at present. The
business of “The House of Dorchester” is getting expanded rapidly with the demand and
satisfaction of the customers. The global operations and strategies of the company are going to
be illustrated in this report.
Explanation of the global business environment in which small and entrepreneurial
businesses operate:
Global Business Environment: The international business environment consists of some
factors. Such as communication media, marketing channels, political issues, supports of the
technology, demographical characteristics, existing market, etc. (Muhammad et al., 2016).
Before entering the market “The House of Dorchester” must need to analyze those factors
individually and choose the best plan for them. They have to communicate with the market and
create a positive vibe at the time of entering. Each of the elements of the market can bring a
massive change either positive or negative to further operations.
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Figure-01: Global Business Environment (Muhammad et al., 2016)
“The House of Dorchester” needs to implement some strategies to operate its business in the
international market -
Adopting an effective Business Plan: A plan is a prerequisite and very vital before
commencing any operation or process. The plan must be created according to the firm’s
necessity and ability (Cuervo‐Cazurra, 2017). The House of Dorchester needs to create a precise
and dynamic plan for global operations like the domestic one.
Targeted Market analysis: During making the planning process, a firm should analyze the
targeted market where it wants to enter. The management has to collect various data and
scenarios of the market (Schmidheiny et al., 2019). They need to know the consumer’s
behaviors, necessities, and demands. The market offerings, overall economic scenario, and
competitiveness also should be considered during the analysis.
Targeting the Consumers: Every business tries to serve its customer as much as it can.
Because the customer is the heart of a business. Final products are served to the customers and
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companies gain profit (Hamilton and Webster, 2018). Higher customer satisfaction brings higher
profit and sustainability to the firm.
Production of quality products: A firm creates its identity and good face value in the market by
maintaining the quality of products. A quality product creates a positive image in customers’
minds by delivering the utmost reliability and satisfaction (Muhammad et al., 2016). The House
of Dorchester manufactures good products and maintains its standards to hold the position and
brand image.
Analyzing the threats and opportunities that face SMEs in an increasingly competitive
global environment
Opportunities for The House of Dorchester:
A new company gets some benefits during starting of the business globally. Some of those are
described below.
Expansion of the business area: By entering a new market a firm can expand its business scale
as well as its production. A new market means new demand for new customers (Eravia and
Handayani, 2015). Companies try to increase their productivity which brings a positive result by
expanding the business as well as profitability.
Improvement of the financial condition: when a firm increases its business operational scale,
the profitability also gets increased. The firm acquires more investments and capital from the
investors as well as the global stock exchanges (Mundim et al., 2020). These give the House of
Dorchester a sound financial condition.
Maintaining customer relationship: A good relationship with the customers brings always
positive results to the company. A positive thought in the customer’s mind makes the customer
purchase the product of the company (Eravia and Handayani, 2015). So, The House of
Dorchester should build a positive relationship and provide after-sales service to the customers.
Customer engagement opens a new door of opportunity to every firm.
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Threats for The House of Dorchester:
Besides those opportunities, there are some remarkable threats to the firm during the expansion
in the global market. Some of these are-
Inadequacy of Working Capital: A huge working capital is required to operate a business in
the international market. To continue a large operational scale and huge production, a firm
should acquire huge capital. If they can’t manage, they will fail to perform these activities
(Smallbone and Rogut, 2017). This is a great threat to them.
Threats from the competitors: The global market is an open place to compete with others.
There are a large number of companies of the same categories that provide the same type of
products to the consumers (Eravia and Handayani, 2015). This may be a threat to the new
entrants. A new firm has to carefully compete with the existing market and create its own
identity.
Global political issues: The political environment and culture of one country are different from
another. Every country has separate rules and regulations for different businesses. So, every
environment is not suitable for every firm. Some political conditions become a threat to the
products as well as the firm (Mundim et al., 2020). So, a company should analyze the law and
political conditions of that foreign country and take the preferable decisions.
Providing the evidence-based analysis of the global business environment in which small
and entrepreneurial businesses operate using specific examples
To provide an evidence-based analysis, the PESTLE analysis of The House of Dorchester can be
used here.
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Figure-02: The PESTLE analysis (Song et al., 2017)
Political: Several political factors should be assessed carefully before entering the global
business. These are the government policy, political soundness tax, trade policies, and various
laws of that market (Song et al., 2017). The political instability and unfavorable law and
regulations can be an obstacle to The House of Dorchester’s business.
Economy: The economic condition of all over the world is not the same. The economic
condition of Europe and America is better than that of Asia and Africa (Gregoric, 2018). So, the
chocolate company needs to analyze the purchasing power as well as the living standard of the
customers.
Social: Various social factors affect the market in different ways. The population, their age and
culture as well as lifestyle should be analyzed carefully (Kara, 2018). The educated and young
peoples are generally like chocolates and fancy items rather than old and illiterates.
Technology: Technology is helping humans in every stage of daily life. With the help of
technology productivity and efficiency can be increased easily (Taylor, 2017). So, The House of
Dorchester should be aware of modern technology and its profitable uses.
Legal: Legal environment consist of different laws and regulations of a country that are imposed
on the business firms during the operations (Gregoric, 2018). To be profitable and successful in
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business The House of Dorchester must need to examine the laws whether those are suitable or
not.
Environmental: Environmental safety and eco-friendliness are some of the most important
issues of global business and production. The firms need to reduce the emission and pollution as
much as possible. The powerful countries, as well as smalls, have agreed to save the economy
with less carbon emission (Song et al., 2017). The House of Dorchester can join the race with its
eco-friendly production.
The analysis of The House of Dorchester’s business expansion in the European Market by
using the “Porter’s Diamond Model”
The House of Dorchester is expanding its chocolate business outside the UK. The popularity and
the uniqueness of their chocolates encourage them to join the global market. The business
strategies and model of The House of Dorchester can be analyzed through Porter’s four factors
(Smit, 2018). These factors are interrelated with each other. This model defines the national as
well as the international advantages of The House of Dorchester.
Figure-03: Porter’s Diamond Model (Smit, 2018)
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Firm Strategy, Structure, and Rivalry: These factors indicate the firm’s operational strategies
to continue the business from domestic to global. The company structure, as well as
competitiveness with the rivals, also need to be focused on (Vlados, 2019). The House of
Dorchester has a strong business field in the UK which helps them to expand in other countries
of Europe. The firm has implanted its unique strategies to compete with outside rivals.
Demand Condition: Every product is manufactured because of demand. A firm gains profit
when the market demand is higher. And they face losses during the scarcity of demand (Delener,
2019). In the European market, the Demand for hand-made chocolate is much higher and The
House of Dorchester is trying to capture the gap.
Related supporting industry: A firm gets many advantages if there have other supporting
industries. The House of Dorchester produces chocolate and various luxurious gift items. They
operate their business in the UK as well as Europe (Smit, 2018). The chocolate and luxurious
industries in Europe are very popular and these give an actual advantage through providing raw
materials as well as buying finished products.
Factors Conditions: In every production, some factors (such as capital, labor, skills,
technology) are needed. The abundance of these resources and skilled manpower gives an
absolute advantage to the hand-made chocolate firm (Kara, 2018). The firm should maintain the
gradual improvements of these factors.
Determining and analyzing the advantages of international trading blocs and agreements
Specialization and proper resource allocation: Proper allocations of resources help the firm to
complete its operation efficiently. A firm has to allocate its limited resources to various sectors
and needs to assure the best outcome and productivity from those. In a global operation, there
needs diversification and dynamic allocations of resources. The resources should be allocated
according to the market and other situations (Chase, 2019). The trading agreements and blocs
help to determine the allocation of resources properly.
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Figure-04: Allocation of Resources (Chase, 2019).
Growth of Production: International agreements and blocs offer a large market to a firm. The
firms increase their production according to the market demand. They segment the market and
evaluate the necessity and gap of the market. Then they try to fill the gap and increase their
production to meet up the demand with the support of the agreement (Delener, 2019). This
increases the overall profitability from the satisfaction of the global consumers.
Economic development: SME sector is the heart of a business economy. A large number of
contributions come from this sector. The growth of these sectors finally brings positive results to
the whole economy. By entering the global market, The House of Dorchester increases its
productivity and profitability which helps the growth of the overall economy (Chase, 2019). The
different agreements and blocs are also beneficial to a country. Besides these, the differences
between currencies and raw materials cost also profitable for the growth of the economy.
Disadvantages of international trading blocs and agreements-
Shipping customs and duties: Shipping customs, transportation costs, and duties are the main
challenges and problems of global trading blocs and agreements. When a firm export product
from one country to another, the foreign country charges some costs of customs and duties. The
firm also has to bear the cost of shipment. All these costs increase the production cost as well as
the final price of the products (Hirst et al., 2019). So, it’s a great challenge to compete with
others to maintain the price level.
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Figure-05: Shipping Customs and Duties (Hirst et al., 2019).
Communication problem: Every country has its language, communication media, and a way of
communication which are different from others. When a business firm sets up their business in
another country, they have to understand the customer’s language, opinions as well as the local
environment. But these are too challenging for a company to understand the customers and
implement proper strategies according to them (Frankel et al., 2016). The House of Dorchester
needs to overcome the communication problems as much as possible.
Cultural differences: Culture is a set of human behaviors, lifestyles, social structures, etc. These
things are different from one society or country to another. The choice and preferences also
depend on the culture. So, every consumer in a market doesn’t like the same product, and their
opinions are also different from one another’s. This creates a barrier in the market (Delener,
2019). So before entering a market, the firm has to analyze the demographic factors as well as
culture and make the product according to those.
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Explanation of the various tariff and non-tariff barriers that exist in the international
trading environment
During international business, different types of barriers take place in the agreements. Some of
those are described below-
Figure-05: Trade Barriers (Haveman, and Thursby, 2018).
Import Quotas: This barrier is used to restrict the exporter to unlimited export products to a
country. It gives a limitation on the quantity of exporting any product. This quota decreases the
production and export quantity to another or global market to save the domestic firms. The firms
have to pay a certain charge to export products to a country and the cost of production gets
increased (Haveman, and Thursby, 2018). The profitability and revenue of The House of
Dorchester will be decreased if import quotas get imposed on them.
Ad Valorem Tariffs: Ad valorem tariff is such type of barrier where a country charges a fixed
percentage of imported product’s value from the exporters. The tariff reduces the exporting
volume and increased the product prices as a value-added tax (Chemingui et al., 2018). So, every
firm should fix the price very carefully. Because there is a universal sensitiveness of customers
to price.
Licenses: The license is a legal procedure that gives access to a firm to enter a foreign market.
The license is a non-tariff barrier that needs to get according to the law and regulations of a
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country (Daly and Oshikawa, 2017). Without a license, the House of Dorchester won’t be able to
operate its business in a foreign market legally. So, they have to be careful and analyze the
procedures before the entrance.
Specific tariffs: This tariff is also like the ad valorem tariff. But the specific tariff is imposed on
the product’s quantity or imported volume and the government gets a specific amount as the
charge. This tariff barrier increases the cost of the company and decreases revenues (Chemingui
et al., 2018). So, the House of Dorchester needs to calculate this cost before entering the market.
Voluntary export restraints: Voluntary export restraints (VER) is a non-tariff resistant which
is process where exporter firm reduces their export scale voluntarily to get the profitable business
environment and support from the importer country. It’s an understanding where both countries
try to preserve their interests (Haveman, and Thursby, 2018). But VER decreases the volume of
exports, sales, and range of market for the company.
Evaluation of the advantages of international trading blocs and agreements and their
implications for SMEs.
Global business and international firms are divided into various trading blocs. Here some of
these are described below-
Trading Blocs and
Agreements
Application Advantages
European Union (EU) EU is an economic and
business organization of
European countries to make
the market obstacle-free. The
present member of this
organization is 27 countries.
This organization gives
opportunities to set up
business in the European
countries without any strict
laws and obstacles (Hix,
2019). The House of
Dorchester can expand its
business easily here.
NAFTA (North American
Free Trade Agreement)
This organization is focused
on making trade and business
The diversified business
market can be profitable for
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easier among North
American Countries.
The House of Dorchester
(Cameron and Tomlin, 2000).
OPEC (Organisation of
Petroleum Exporting
Countries)
This is an organization of
petroleum and mineral oil
exporters and producer
countries to trade without
tariffs (Griffin, 2019).
This provides an absolute
advantage to the members.
The duty-free exporting
system helps to maintain a
sustainable business.
Table-01: International trading blocs
Among the above blocs, The House of Dorchester can enter into the European Union at first.
Though Britain has exited the EU, there is a great market of The House of Dorchester’s
chocolates still now. So, the EU is the most relevant to the business of The House of Dorchester.
Determining the advantages and disadvantages of importing and exporting and how to
secure a deal.
Every firm or country enjoys some advantages as well as faces some disadvantages by
importing. Here some of those are illustrated below-
Advantages Disadvantages
When a firm imports any product or raw
material, its productivity and ability get
increase (Seyoum, 2017). This opens a new
door of opportunity and profitability by using
those imported materials and services wisely.
The excessive cost may get arisen during the
importing process and it reduces the
efficiency of the production and price.
A firm can easily import the best and wide
range of products from the global market
which is not possible in the domestic market.
From purchasing to shipment, an importing
process consumes a huge time which is a
great disadvantage. Because time is
considered the most precious investment in
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the business.
A continuous supply of raw materials through
importing increases the production and helps
to meet up the market demand timely.
A large number of imports creates challenges
to the local producers. Local brands have to
compete with foreign products inefficiently
(Seyoum, 2017).
Table-02: The advantages and disadvantages of importing
The advantages and disadvantages of exporting are described below-
Advantages Disadvantages
Exporting will help The House of Dorchester
to increase the area of their market as well as
it will give a chance to extend the business
across the globe.
This process sometimes creates uncertainty of
payment and the payment procedures are
complex as well as time-consuming.
A firm can earn more through exporting than
the domestic market (Delener, 2019). The
international market provides a huge
customer and a large volume of customers
generates a higher rate of sales revenue.
Different marketplaces follow different laws
and regulations which create a barrier to
maintaining profitable business operations.
The overall economy gets highly benefited
through exporting products. Because it brings
foreign remittance and contributes to
developing the economy (Hausmann et al.
2017).
Excessive level of exporting creates a
shortage in the domestic market and local
consumers get affected by price hikes and
market instability.
Table-03: The advantages and disadvantages of Exporting
As a chocolate producer, The House of Dorchester has to import its raw material sometimes from
other countries and it exports the finished products to various countries. Exporting is more
beneficial to the firm.
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To maintain a secure and sound global business, The House of Dorchester needs to adopt some
strategies and follow some effective ways. Some of these are described below-
Selecting the right parties: Every business occurs between two or more parties. So, the firm
should select the business parties very carefully. The partners, as well as parties, must need to be
trustworthy, responsible and The House of Dorchester should conveniently deal with them
(Muhammad et al., 2016). A good relationship among parties is the prerequisite to maintaining a
sound business environment.
Taking well Preparations: Before making any deals or implementing strategy, the firm should
take preparation for the whole process and just need to be aware of the outcomes. The firm
should be enough prepared to establish their identity in the market and attracts parties. This helps
them to convince others.
Focus on the Business Deal: The deals should be done very carefully. Because a bad deal can
hamper the overall business growth and profitability (Hausmann et al. 2017). The management
should give the priority to the financial safety and security of the deals. The profitability, as well
as cost, just need to be analyzed carefully.
Taking Support from Banks: Bank plays a vital role in global business. It works as an agent of
the firm and provides support as well as finances them. The bank collects the payment from the
global customers as well as helps to make payments in a secure way of the transaction. These
reduce the riskiness of export and import (Delener, 2019). The House of Dorchester has to take
the support to maintain their transactions smoothly.
Explanation of the differences between merchandise and service imports and exports
Both merchandise and service can be exported or imported. But there are some characteristics
which are different from each other. Those are illustrated below-
Merchandise Service
Merchandise products indicate those products Service refers to the activities provided to a
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which have a physical appearance. These
products can be touched and require a
comparatively higher cost to transfer from
one to another place (Donnellan, 2016).
person to help him by a person or a firm for
exchange of salary or service charge. These
products are sets of activities and don’t have
physical existence (O’Sullivan et al, 2020).
Every country has different laws and
regulations for exporting and importing
different merchandise products. Every firm
has to follow those laws during its operations.
Services haven’t physical identities. So, the
strict laws and rules are not applicable here
(Delener, 2019). The service-providing
company easily provides services globally
without any remarkable hindrance.
The transportation process of merchandising
products is much more costly due to its
physical appearance. They need space and
have weight (Wolfe, 2019). So, “The House
of Dorchester” will have to carry the extra
cost of shipment.
Services don’t have the physical existence as
well as the height weight. So, they don’t need
to carry the cost of transportation and
shipments (O’Sullivan et al, 2020). Services
are transferred through the movements of
human resources.
A merchandising product can be easily
replaced by another one. Because these
products have physical existence (Gray et al.,
2017).
Services are intangible and not replaceable. It
has no physical structure or appearance so
nobody can replace anyone with another.
Every physical product has a standard quality.
Other products get evaluated based on the
standard. The global market ranks the
merchandising products according to the
quality and physical sample place (Donnellan,
2016).
Service is a type of human activity or
performance of human skills and expertise.
So, every work is unique and these can’t be
determined or qualified by any global
standard (Frankel et al., 2016). So, the service
of The House of Dorchester can be easily
exported or imported.
Table-04: The differences between Merchandise and Service
Recommendation to The House of Dorchester whether they should export/import
merchandise and/or services:
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The production of the chocolate company is mainly more dependent on the physical materials
than the services. The House of Dorchester imports their raw materials from other countries
which are not available in the UK. After the production, it exports the chocolate to different
countries across the border. And they get services from the local service providers easily.
Though export/ import of merchandising products is costly, it brings much profit and
convenience to The House of Dorchester. So, they should export/import physical goods rather
than services.
Evaluation of the methods in which SMEs can tap into international markets
SME sectors are the core of the national economy as well as global. The contribution of SMEs is
much higher than other types of organizations. This sector is entering the global market through
exporting and importing rapidly. To enter the international market, SMEs follow different
processes according to their criteria. Some of those are described below-
Exporting products: A firm can export its finished products to another country to start its
business internationally. This process is quite easy and profitable. Because firms can use
domestic resources and manpower to produce commodities (Seyoum, 2017). The House of
Dorchester can export its authentic and unique products primarily to attract international
customers and create a brand image in the market.
Licensing: Licensing is a legal process of getting permission to operate a business in a country
according to their law for a certain period. Through this process, a firm gets registered and gets a
legal identity. If the company starts its business through licensing, it must need to follow some
rules and regulations of that particular country (Daly and Oshikawa, 2017).
Franchising: Franchising is a business process where a person can get the dealership of a
product and the right of using the trademark of the brand by paying them. The producers give
support and other facilities to the dealers. Through this, both of the parties get benefitted (Blair
and Lafontaine, 2016). The House of Dorchester can provide dealerships or franchisees to
foreign firms to sell their chocolates and products.
Manufacturing Abroad: A firm can manufacture its products in a foreign country to reduce
various tariffs and other legal barriers. Sometimes firm allocates resources as well as raw
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materials from foreign countries. This process reduces the cost of transportation. And the country
where the production process gets started also becomes benefitted. This reduces the time gaps
between production and delivery of products (Heikkilä et al., 2018). The House of Dorchester
can serve the best chocolates in a time and cost-efficient way by adopting this process.
Comparison of various ways by which SMEs can tap into international markets, assessing
the pros and cons of each method
The method of tapping into the international market has been illustrated above. Here the
advantages and disadvantages are going to be described.
Methods Advantages Disadvantages
Exporting Exporting is a fruitful way to be
introduced in the international
market. A new firm like The
House of Dorchester can start
its business in the global market
and increase growth and
profitability (Katsikeas, 2016).
The main disadvantages of
exporting are its miscellaneous
costs that are arisen from various
tariffs and transportations. The
efficiency gets decreased due to
expenses (Mody and Yilmaz,
2020).
Licensing Licensing provides a legal
entity to the firm. A firm gets a
lawful identity abroad which
allows them to enter the market
and capture the value by
meeting up the customer’s
demands (Daly and Oshikawa,
2017).
In the case of licensing, firms
come under the lawful
regulations of the foreign
authority which imposes various
rules and obstacles and this
causes downwardness of
profitability.
Manufacturing
Abroad
Firms apply this process to
reduce the costs of shipment
and transportation. Besides this,
In this process, fir has to use
foreign resources as well as
manpower which may increase
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the firm can avoid some tariff
and non-tariff obstacles by this
process and get benefitted
(Heikkilä et al., 2018).
domestic unemployment.
Sometimes the foreign country
imposes a tax on the production
quantities and prices (Frankel et
al., 2016).
Franchising In this method, both franchisor
and franchisee get benefitted. A
dealer or franchisor can easily
open his business with the help
and support of the firm. The
firm also gets benefitted
through selling their products
by local sellers. It increases the
acceptance of those products
among foreign consumers
(Blair and Lafontaine, 2016).
Franchising has some
disadvantages too. The main
problem is that brand value and
reputation can be destroyed due
to the wrong activities of the
franchisors. The profits also get
divided among the dealers.
Sometimes, the franchisee firm
can earn a little from this
business process.
Table-05: Comparison of the various ways of entering the international market
Recommendation from the comparison: According to the above comparison of different ways
of entering into the international market, the firm can primarily choose the export-import method
to tap into the international market. Among all other ways, it is efficient and less risky than
others.
Justifying recommendations with consideration and evaluation of the implementation of
methods
In the above discussion, several methods of tapping into the international have been illustrated.
All those different methods are very convenient and efficient for different types of businesses.
This report is made on the business operations of an SME firm The House of Dorchester. This
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local firm is going to enter into the global market and it is finding the best way. From the
discussion and analysis, it can be said that the Export/Import process is a far better way of
entering into the international market. In the Export-Import system, there are various tariffs and
obstacles which occurs at various cost and decrease productivity. But for a new firm other ways
(like franchising, joint ventures, licensing) are more complex and riskier. As a chocolate maker
firm, The House of Dorchester should avoid that unnecessary complexity and risks. So, the best
way of starting the journey in the international market can be the Export-import system
according to this discussion and analysis.
Conclusion
Through the report, the process and the overall concept of entering into an international market
have been described. Here an SME firm named The House of Dorchester is taken as an example.
The company’s business strategies, their current situation as well as plans for the international
market are also demonstrated in this report. The global market overview is described in the very
first discussion of the report. Then the various opportunities and threats of an SME firm, tariff,
and non-tariff barriers of the international market are described one after one. Finally, the report
illustrated the contrasts between merchandising and service products and various ways of
entering the global market. So, in conclusion, it can be said that a basic concept of the SME
sector’s international market operation has been described in this report.
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References
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