Expanding into India: A Strategic Report for Davison Canners Limited

This report examines Davison Canners Limited's potential expansion into the Indian market. It begins with an overview of international business and its benefits, followed by a PESTEL analysis of India to justify the recommendation of entering that market. The analysis covers political, economic, social, technological, environmental, and legal factors influencing business operations in India. The report identifies key barriers the organization may face during international growth, including international company structure, rules and regulations, international accounting, global pricing strategy, and currency rate fluctuations. It evaluates approaches for the internationalization process, emphasizing the importance of understanding local market dynamics and adapting business strategies accordingly. The conclusion summarizes the findings and reiterates the potential for growth in the Indian market, provided the company addresses the identified challenges effectively. Desklib provides access to this report and many other solved assignments for students.

INTERNATIONAL
BUSINESS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Executive summary.....................................................................................................................3
MAIN BODY..................................................................................................................................3
OVERVIEW................................................................................................................................3
Gravely discuss country that recommended entering and rationalize decision...........................4
Barriers faced by the organization while growing at the international market...........................6
Evaluation of approach for the internationalization process in new market...............................8
CONCLUSION.............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
International business involves the exchange of goods and services between different countries.
It involves those transactions that takes place by crossing the national boundaries. The
international business has been proven efficient in terms of exploring the business. It utilizes the
resources from all over the world. Allocating resources from different parts of the country and
then, utilise all of these resources collectively results in the creation of efficient business.
Business at the global level plays an important role in increasing the economy of the nation. A
business which goes from local to global level gets many opportunities in terms of expanding the
business. This report will illustrate the concept of international business. The report also
describes the strategies needed under the international business along with barriers faced by the
business. The Davison Canners Limited company in the UK is one of the leading business in the
local market. This report will highlight the points through which the firm can grow at the
international market.
Executive summary
This report will present the overview of The Davison Canners limited company. The company is
efficiently growing at the local level in UK. The report will show all the important elements that
can help the firm in order to grow at the international market. The company is going to expand
its business in India. All the factors that are needed to study by the firm in order to grow the
business in India are mentioned under this report.
MAIN BODY
OVERVIEW
In this report for enhancing business as internationally is determined for purpose of
rationalizing in corrective measures. By discussing India, that will recommend organization to
help in rationalizing decision (Langdahl, 2021). Different obstacles will discussed for increasing
company as international level to enhance production of business. Also, implements different
frameworks for procedure of organization for achieving aims and goals of company to attain
business as internationally by growing business through global level that helps in expansion of
organization in productive manner. As by implementing strategies and approaches helps in
achieving aims of business that is to expand business as internationally.

Gravely discuss country that recommended entering and rationalize decision
For enhancing company as internationally, recommended India for their entrance and
rationalize for their decision-making process. Changes in internal environmental factors rely on
changes in external environmental factors. Macro environment is known as external environment
which includes: political stability of country, economic condition, social behaviour,
technological factors and others. By analysing from PESTEL helps in making company of
Davison Canners limited for enhancing their business internationally. By recommending India
for rationalize decision-making in their by entering into market. That is described below
PESTEL analysis of India;
Political factor- India runs on civil form of government, their political element is highly
influenced by different factors such as rules and regulations by government, their interests and
philosophies in political parties. India driven various benefits that are well created structure of
taxation system that helps organization to achieve their goals (Thakur, 2021). In these,
privatization is also affects and government motivates to free organization through distinctive
types of tasks. Political stability plays a vital role on businesses' performance. In regard to
political condition, it is found that there are multiple governmental legislations that affect food
company. Organization are required to follow all rules for improving quality of food. There is
consistency in policy making and implementation because government adheres all rules under
world trade organization norms that may be beneficial for company. As India is most powerful
country in globally form, this considers democracy as compared to others.
Economic factors- The economy of India, reducing in industrial authorization, liberalization of
overseas capital. As this country is continuously improving gross domestic product by
developing in economic environment. Due to India, economic factors helps in growing business
as internationally and conduct expansion of business. India exports different products in
different countries that helps in expanding business by considering this country. It helps in
expansion of business as internationally through global expands.
Social factors- Any changes takes place in organization, effect organization environment that
based on current trends occurred in business. India's population is rising on continuously basis
due to which rise in employment of employees also takes place. Their structure is considered
flexible, qualification and other factors that contain reliability of organization (Moussa, Soliman
and George Messeha, 2021). For purpose of recommended it is highly providing social factor for

expansion of business as internationally. India main strength is their cultural harmony that attract
more customers towards organization. Raising age population is creating numbers of
opportunities for retailers as it can increase sales of companies. On the other hand, it is found
that people are becoming health and environmental conscious and for satisfying customers'
needs, companies need to focus on improving sustainability and quality of products. New brand
positioning can also help organization in attracting customers and retaining them.
Technological factors- Technology changes on every day that effect product development due
to which productiveness of products has been increased. On the basis of India, it is served
advancement of technology through providing 4G services in technology. That helps business to
expand their business as globally and increase their production through enhancement of
business. This factor also determine that India is considered as strongest possess on information
technology that helps in upgrading software and increase productivity of organization. As India
offers benefits for technological up gradation to enhance productivity. Implementation of
advanced technologies within organizations is increasing competition for retailers, and they are
striving hard for being in the competition. For minimizing and dealing with this factor, it can
help this retailer in managing big data and business more effective as well as responsive to
customers. Through technological factor of India that had adversely growing business as
internationally for enhancing business as internationally.
Environmental factors- Due to pollution that takes place in India, that affect environment badly
that may create issue related to health. This factor in accordance to India, has taken various
initiatives for controlling wastage etc. This provides both negative and positive effect of India
that impact on environmental factors of their. India is considered as greatest attraction of
customers that come from foreign countries. Due to this, helps in expansion of business as
globally through they adversely influence elements of environment. India is progressing on
regularly basis because of highly environment elements (Qiao, 2021). It is stated that people are
becoming environmental conscious as they prefer buying products from companies that
promotes sustainability. For all companies it is important to make use of natural resources to
some extent. It is found that its striving hard for decreasing carbon emission in order to make
people feel valued and decreasing negative environmental impacts. It offers plastic free fruits
options and it has banned plastic bags and customers need to carry their bags for buying
products, or they will be provided with cloths bags.

Legal factors- Different forms of legal changes executed in India, that are recycling, rising wage
of minimum etc. due to which provides rationalize basis for decision-making in order of
enhancement of business. As India is considered as known destination for foreign investment,
that determine by their requirements in business (Moussa, Saad and Messeha, 2021). These
factors help in rationalize decision-making process by legal elements that helps other business to
expand as globally. This country has to enter for rationalize decision-making and for making
growth in business. There are some legislations and laws related to food standard and quality. It
is important for all retailers to adhere to food quality standards in order to protect themselves
against lawsuit and improving health of customers. Country has its own legal guidance that
support compliance with several regulations.
Barriers faced by the organization while growing at the international market
Expanding of business at the international level results in the creation of new customers and
clients. The expectations of the customers are different from nation to nation. Collectively,
managing all these expectations is a hard task for the firm. (Fatehi and Choi, 2019) The chosen
organization produces the products such as, curds, sauces, syrups, fillings, fruit compotes, jams
and a range of dessert. For such products, the customers has more expectation. They prefer the
taste along with good pricing and quality. For understanding this with clearance, here are the
barriers that will be faced by the firm while expanding the business at the international level.
International company structure- It involves the structure and the location of the companies in
different countries. Headquarter of the firm is located in UK. For expanding at the international
level, the firm has to decide the various locations where the company can present itself in front
of the customer. The complete management is needed in order to arrange the offices of the
companies at global level. In order to decide the structure of the company, the firm has to study
the complete market scenario of the different nations. Afterwards, the firm should appoint a team
that will look upon the management of the companies offices in different nations.
Rules and regulations- Understanding the rules and regulation of all those countries where the
company is expanding its business is needed. The chosen firm has selected India in terms of
expanding the business at the global level. Therefore, the firm must have to understand the
policies of trade that are established in India. (Rahman and et.al., 2020). Unethical practices in
the international business results in the heavy penalties for the firm. This further results in loss of
goodwill for the firm. Therefore, the firm should understand all the legal policies or

rules&regulations of the country in which the business is going to expand. This will result in the
smooth running of the business at the global level.
International accounting- This is one of the most challenging task for the firm. The company is
operating at the global level therefore, understanding the tax policy of the India is required in
order to pay the taxes. Accounting offers the challenges in front of the MNC'S that are liable to
pay the taxes. Different nation has the different tax policy and the tax is the crucial part of the
business. A business that not pays the tax has to face the danger. In order to solve this issue, the
firm should make the effective accounting strategy in order to maximize the revenue. So, the tax
liabilities can be cover on time.
Global pricing strategy- Pricing is that value that is paid by the customer in the exchange of the
goods and services. It is one of the vital element in the international business as it attracts large
number of customers and at the same time it can distract the customers. The company should set
the price by keeping in mind the cost of the production. (Ryan and Daly, 2019). The firm is
selling products related to food. These products are demanded by many people in India.
Therefore, the firm should keep affordable prices in order to increase their sales. This will result
in the creation of more profit along with increasing the customer in the favour of the
organization.
Currency rates- The fluctuation in currency rate can act as a high barrier for the firm. These
changing rate of currency highly influence the business activities across different nation. As a
result, the firm will face the high rate of loss. In order to mitigate this risk, the firm has to
monitor the exchange rate so, they will become aware. Even the slightest change should monitor
by the firm. The company will make payment in dollars and the value of dollar is high in
comparison of the value of rupees. Therefore, there is moderate rate of risk in terms of currency
fluctuation for the firm. But, managing this from starting proves to be beneficial for the firm.
Environmental issues- Recently, the environment has been the biggest concern in the
businesses. Especially, in the international businesses. The environmental harm by the firm
results in the loss of goodwill in front of the society. The company has to face the certain loss
due to this. The organization is producing the different range in food. In order to solve this
environment issues, the company should perform the CSR. (Hoogendoorn, Van der Zwan and
Thurik, 2019). These are the corporate social responsibilities that is mandatory to be performed
by every business in order to maintain a good image in the market. The firm can perform these

responsibilities by adopting the method of sustainable packaging. Along with this the firm
should promote the concept of green house that ensures the reduction of the poisonous gas.
By focusing on these elements the firm can completely understands the factors that act as a
barrier in expanding the business at global level. Proper analysing of these elements helps in the
smooth running of the business across different nation.
Evaluation of approach for the internationalization process in new market
Expansion of multiples approaches is beneficial to product and services expansion in
different place. But the only thing which requires developing unique strategies and follows their
external aspects because development of new strategic approaches in different place require
suitable and exact knowledge of different approaches (Cho, Kim and Jeong, 2021). So its clear
and considerable aspect that some aspects which are essential to know for business expansion in
international market are as follows,
Internationalization:
This term is refers to the organization products, services, product development and
overall business expansion in internation market when organization wants to raise and build their
business in international market they have multiple responsibilities, and they have to follow
some different aspects according to other market place and other place trends. Davison canners
company wants to expand their business performance in India with same product and services. If
other company expand their business international market they follow and analyse multiples
external forces because which influences their overall business activities.
Strategies for product development in new market:
Application and consideration of multiples strategies and aspects will beneficial to
effectively expand their business in new market with proper manner. Strategies like identify the
multiple approaches and methods and develop information about other place business effectively
perform or not. So consideration and identification of multiple aspect its very clear that
individual business organization consider it. Communicate with other business manager those
provide similar product its also great approach, merger and accusation aspects definitely
beneficial approach which generates business set-up with effective manner. Application and
consideration of multiples approaches is not developed efficiency thus, its important task that
organization manager owner, manager, and market analyses experts analyse that other place

people like their product and they have idea top build effectiveness in product or not, Analyses
of these aspect organization can effectively expand their business in new market are as follows,
 Market development:
New market development concept is all above refers to activity which beneficial to
develop new opportunities with existing product. Business has multiples responsibilities, but
they have only clarification when they have to develop same product and services in different
market. Effective development in business process require engagement of new things and India
has different culture employment selection is the biggest threat and challenging aspect because
India people mainly prefers Hindi language (Mendes and et.al., 2021). Engagement of effective
employee which has knowledge about require both languages and so it is one of the best
approach which develop efficiency in business expansion.
Knowledge about their culture and their perspective about food is essential approach
because very country has different people, their perceptions, requirement and multiple aspects
are different. So analysis of cultural people requirements is challenges task. Consideration of
legal aspects and government taxes policies on product transportation require idea bout different
tax, trade policies. Davison canners expand their business in different place, and they analyse
that India people like different food product so on the basis of analysis its easier that they can
easily launch their good and services in market with effective manner. So its very clear that
individual organization which wanted to build their business in international market they have to
consider and develop research about other country requirement.
 Differentiation:
Product differentiation is mainly considered and effective approach because most of the
people consider engaging with different product so its important aspects that company consider
producing some different things. Differentiation is one the best aspect because it builds attraction
and interest towards with product. Organization launch existing product in new market with
unique strategy like they consider developing stores and shops as well as they develop online
services as well so its effective approaches and its effective approach which develop and expand
effectiveness in other place from exist product and services. Analysis for research and
application of methods like organization wants to set their business in India, so they select plan
that they launch food services and analyse their target audience when really like and develop

attraction towards with the product. Firstly its essential that new product launch in different
market they have to provide some discount activities and free food testing because it connects
new people.
Different place require different exercise that every one knows this concept so on the
basis of this statement effectively refers to performance investment towards with the application
of different aspects and different strategies. Completion and expansion of other perspective
require knowledge and idea about different and multiple aspects which generates effectiveness
business process as well it develops effectiveness as well.
CONCLUSION
The report has been concluded expansion of business as internationally for which
recommended India, for entering into rationalize for decision-making. In these different
obstacles has been described that faced by Davison Canners through expands their food business
as internationally. It will also justify by PESTEL analysis of India that includes political,
economical, social, technological, environmental and legal factors. For determining
recommendation that has been provided that why organization choose this country for expansion
of their business as internationally. Also, analysis by implementing strategic approach that
includes market development, product development etc. for procedure of globalization for
specified objective. Furthermore, by assessment of this helps in evaluating business through their
seeking to enhance organization as internationally. That has been helps in succeeding
achievements for making sustainability growth of business. By implementing different strategies
for their execution in plan for attaining aims and objectives of organization through
rationalizing.

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