International Business Strategy and Analysis: MADO's UK Entry Plan

This report provides a comprehensive analysis of MADO, a Turkish ice cream and pastry company, and its strategic plan for entering the UK market. The report begins with a company description and executive summary, followed by an introduction to international business and its advantages. The core of the report focuses on the discussion and analysis of key factors impacting MADO's international expansion, including cultural differences, ethical considerations, and global marketing strategies. It explores the importance of understanding UK culture, ethical business practices, and employing both traditional and digital marketing techniques. The report also examines international marketing entry modes, such as joint ventures, and the competitive strategies, like differentiation, that MADO can adopt to gain a competitive advantage. The analysis highlights the challenges and opportunities associated with internationalization, offering insights into how MADO can successfully navigate the UK market. The report concludes with recommendations for MADO's international business strategy.

International Business
1

Table of Contents
Company Description......................................................................................................................3
Executive Summary.........................................................................................................................4
INTRODUCTION...........................................................................................................................5
Discussion and analysis ..................................................................................................................6
CONCLUSION................................................................................................................................9
Recommendations..........................................................................................................................10
REFERENCES..............................................................................................................................12
2

Company Description
Organisation chosen for this report is MADO, which is an ice cream and pastry brand
based in Turkey. The company has nearly 300 outlets in Turkey and also operates in many other
countries. The company is known for offering special textured ice creams that is made with the
milk of goat. The ice cream which is developed by the company, is produced through pounding
and is intense like gum as well as elastic (Aguilera and Grøgaard, 2019). The journey of the
company started off with icemen circulating around neighbourhood with ice cream drums on
their shoulder. The respective company serves a variety of desserts along with thin slices of ice
cream that are to be eaten with the help of a knife and a fork. The company started a new process
in the year 1986 wherein it transformed its old factories in order to meet the necessities of the
future.
The company has a strong history of nearly 300 years and the unique flavour of the ice
creams that are produced by MADO is obtained by mixing the milks of animals. These animals
are fed on thyme and orchid flowers on high plateaus. The company is the result of transforming
the traditional family work shop into various modern production plants. All of the company's
products are prepared under high hygienic and quality conditions (Cherunilam, 2020). MADO is
one of the largest ice cream companies in Turkey and is basically known for bringing together
the different Turkish flavours together. The company adds new flavours to its ice cream range
every year in order to meet the expectations of the customers. Also, all fruit flavours of the
company are completely made through natural methods with the finest fruits. Apart from this,
MADO also offers different varieties of teas, coffees, smoothies, juices, special drinks and so on.
3

Executive Summary
International business allows organisations to trade their products as well as services to
different countries. It is also referred to as globalisation and there are many benefits to
organisations for conducting their business activities internationally. For example, there is an
increase in the revenues and a reduction in competition. Also, a company can reduce any
unnecessary costs associated with manufacturing the products. The company is able to manage
its risk in a better way and it also gets an access to export financing. MADO is a Turkish ice
cream and pastry company which is known for offering the best ice creams, pastries, smoothies
etc. to the customers. In order to expand its business operations in the United Kingdom, the
management of the company has to be aware of the impact of different factors. In order to
market its products, the company will use both traditional as well as digital methods.
The digital methods will include television advertisements, attractive packaging etc.
while the digital methods will include posting regular updates on different social media
platforms. This will help it in reaching out to a greater number of customers and thus increase
profits. In order to enter the international market, the company will use the mode of a joint
venture, which is a business entity created by two companies. This will help the company in
managing its costs because the ownership, risks as well as other aspects would be shared by both
the companies. Lastly, the company will choose differentiation as its competitive strategy
wherein it will ensure that all of its products are well differentiated from each other. It will
change the flavours offered by it in order to match the tastes of the customers in UK. This
competitive strategy will allow the company to compete with different existing brands in the UK
market in an effective manner.
4

INTRODUCTION
International Business can be defined as the trading of goods and services across national
borders at a global level. Organisations are increasingly moving towards operating
internationally. This is because there are several advantages of international business which
include an access to different foreign markets. Also, global markets encourage different
organisations in innovating their products as well as services in order to attract a greater number
of customers and increase profitability (Chow and Schoenbaum, 2020). There are many forces
that attract organisations to compete internationally. These factors can include a greater segment
of customers, improved business operations, increased profitability etc. Due to this, organisations
are increasingly considering to expand their business operations to various countries. If an
organisation is successful in conducting its business operations across different national borders,
there are chances of increasing its overall profitability.
Organisation chosen for this report is MADO, a popular Turkish ice cream and pastry
company. It was founded by Yaşar Kanbur in the year 1850. The company operates in nearly 22
countries besides Turkey. All of the company's products are produced using natural ingredients.
The history of MADO goes back to a traditional family workshop that has been making ice
cream for generations. The company is planning to expand its business operations in the United
Kingdom. In order to do this successfully, the management of the firm will be required to follow
certain steps. It is important for the management of MADO to be aware of the impact of different
factors which can affect the overall performance of the company in the UK market.
The management of the firm needs to take into account the cultural differences of among
people in the UK market. This is important because the tastes as well as preferences of the
customers in different geographical locations are different. The report explains the impact of
different cultural differences, importance of ethics as well as the different global marketing
techniques that the company can use in order to attract the customers (Wettstein and et. al.,
2019). Apart from this, there are different international marketing entry modes which the
company can use. An explanation of the same is included in the report along with the corporate
strategy which the company can adopt in order to gain a competitive advantage against
competitors. Opting for an effective marketing strategy will help the company in attracting a
greater number of customers as well as increasing overall profitability.
5

Discussion and analysis
International business includes various activities which is crucial for enhancing
organisational activities in new and different market area. International business refer as the
organisation which is offering its products and services across the national boundaries. This is
very beneficial for organisation to enhance business practices in order to conduct business task in
more effective and efficient manner (Daniels and et. al., 2016). Internationalization of business
will support in increasing opportunities for Mado company. There are various advantages that
could be attain by company such as development in market area, enhancing customer base,
increasing sales of company as well as earning more profits. This will lead to have positive
impact on organisation and help company in earning more revenues to carry out business task in
significant manner. It is essential or respective company to identify and analyse the international
market area before conducting business activities. This will help in creating effective business
strategy for smoothly performing organisational task. Mado company is providing its high
quality products and services form many year. This organisation is successful in developing
strong brand image and value in respective market area. In order to grow and develop business
Mado company needs to enter into new market area as well as tarted new customer segment.
This will be helpful for respective company to successfully perform organisational task in new
international market area.
It can be very difficult for Mado company to carry out business task in international
market area as this is very complex process. Respective company is planning to introduce its
business operations in UK market area. There will be various issues and problems which can be
face by respective company while conducting business operations in international market area
(Peterson, Arregle and Martin, 2020). It is important for respective company to analyse the
culture of international market area as well as determine marketing strategies in order to
successfully perform business task. It is significant for company to determine value of ethics as
it will lead to have major impact on overall performance of respective. Mado company needs to
analyse international strategy for entering into new market are as well as determine the
competitive strategy for business that will lead to gain competitive advantage in market area.
Cultural differences
Culture can be describe as the values or customs of particular nation that will lead to have
significant impact on performance of organisational practices. Every country have different
6

customs and beliefs which will lead to have impact over the attitude of customer and influence
their decision making process (Kolk, 2016). Mado company needs to identify the major
difference in UK culture as it will affect the sales of business. Culture contains various elements
such as norms, values, rituals, assumption, tradition and many more. Due to different in culture
respective company will face issues is determining the attitude or behaviour of customers. This
organisation will not be able to effectively communicate with potential customers. This will lead
to increase in difficulty in enhancing awareness about its products to potential customers of UK
market area. Culture differences will lead to significant impact on workplace etiquette as well as
conducting organisational operations in new market place. It is essential for Mado company to
conduct effective market researcher and collect the information of culture of UK and its
customer in order to perform business task.
Importance of ethics
Ethics refer as the moral principle that will lead to govern the behaviour of individuals. It
is very important for Mado company to consider ethics and morals while performing
organisational practices. Ethics and moral will lead to have significant impact on performance of
business and it will influence the decision making process of company. Business ethics can be
describe as the principle that will assist company is determine what is right and wrong while
performing organisational task (Zander, McDougall and Rose, 2015). Importance of ethics for
Mado company while carrying out organisational task at international market area is mention
below -
 Positive corporate culture – Ethics play crucial role in developing positive corporate
culture as well as influence the performance of employees. Respective company will be
able to increase performance of employees by developing positive culture of business.
Business ethics are important part of business and it is essential for motivating
employees. In international market area ethics of business will be important in order to
provide equal opportunities to its employees irrespective to background of employees.
 Corporate social responsibility – It is important for Mado company to consider ethics in
its business operations for successfully conducting business task. It is corporate social
responsibility of respective company to morally perform task and its business activities
should be provide harm to society.
Global marketing
7

This refer as the marketing strategy or approach which is consider by organisation in
order to successfully increase awareness of Mado company products and services in market area.
Global marketing will help in determine which will be the effective way for respective company
to conduct marketing practices in more effective manner (Cantwell, 2017). Mado company will
be able be considering both tradition and Morden approaches for performing global marketing
activities.
Traditional global marketing will includes develop a global campaign that will lead to
increase the awareness of respective company offering in international market area. Mado
company will be using Television, radio as well as news paper advertising in order to increase
promote its products and services. Effective pricing and packaging will lead to have significant
impact on sales of products as well as enhance customer base.
Modern global marketing includes digital marketing, social media adverting, blogs and
official website promotion. This will lead to have significant impact on promotion of Mado
company products in UK market area. This global marking strategies will lead to attract more
customers as well as reduce the marketing cost of business. Social media includes Facebook,
Instagram, twitter and other social networking site which will be effective tool for respective
company in order to increase the promotion of products. This marketing strategy will help in
increasing the awareness of products in market area.
International entry
There are different international entry mode that can be use by company in order to
provide its business activities into new or different market area (Wettstein and et. al., 2019). It is
essential for Mado company to determine different options that could be consider by respective
company in order to increase sales of company products in market area. The major mode of entry
that can be consider by Mado company to perform business operations in UK market area are
exporting, licensing or franchising, partnership, acquisition, joint venture and many more. Joint
venture will be the most effective and suitable business strategy that can be use by Mado
company in order to perform business task.
Joint venture can be describe as the arrangement between two or more companies which is
consider in order to successful perform organisational task. This is effective mode of entering
into new international market area by full filling all legal requirements. In the joint venture two
or more business entities are carrying out organisational practices with the motive of stating new
8

business (Stahl and Tung, 2015). In this international entry strategies all companies are
combining together and contributing capital and human resources so that all practices can be
successfully perform. The major advantages of Joint venture is it provide more opportunities to
business for accessing new market area as well as increasing distribution of network.
Competitive strategy
It is very important for respective company to develop strong and effective competitive
strategies that will lead to support in gaining competitive advantage in market area. Competition
level for Mado company will be increase with the introduction of business in UK market area. I t
is essential for respective organisation to create effective competitive strategies. Competition
strategy will lead to provide long term benefits to business as well as help in gaining competitive
edge over other business.
Differentiation strategy will be most suitable and effective for Mado company while
providing its products in UK market area. This will be effective strategies as through this
respective company will be able to offer high quality new products or services to customers. In
order to differentiate Mado product, this company is using new and different flavour of ice cream
products. This will be very important for respective organisation to gain competitive edge over
other rival companies (Vagts and et. al., 2015). Differentiation strategy will support company to
develop strong leadership in market area as well as develop unique and strong brand image in
UK market area.
CONCLUSION
From the above report, it can be concluded that international business is an important
aspect for an organisation because helps an organisation in conducting its business operations in
an effective manner and attracting a greater number of customers. Apart from this, international
business also introduces the organisation to various opportunities of growth as well as expansion.
This leads to an increase in the overall profitability of the firm along with an enhancement in its
brand image in the international market. When a company decides to start its operations in an
international market, it is important for it to take into account various factors.
These factors can include cultural differences, global marketing, international market
entry modes and competitive strategy. Cultural differences can significantly impact the overall
performance as well as profitability of a business significantly. Similarly, there are various entry
modes available which a company can consider in order to enter an international market.
9

Different organisations can choose from different options that is most suitable. Also, an effective
competitive strategy can ensure that the company gains a competitive advantage against
competitors in the market. Thus, international business, if conducted in an effective manner can
contribute to the overall success of the organisation.
Recommendations
There are some recommendation for respective company that will assist in development
of business in international business market. It is essential for manager of Mado company to
consider these recommendation which will help organisation enhance business activities as well
as attain desired goals of business. Understanding international market needs – It is recommended to respective company
to identify and analyse the market needs and requirement of customer while selecting
international market area. Identification of market culture and analysing the difference
will help in developing strong strategies of organisation in order to successfully perform
organisational task. Proper understanding of international market area will lead to have
positive impact on performance of respective company. Follow all rules and regulation – It is essential that Mado company is following all rules
and regulation of international market area that is UK. By following all polices and
legislation that is developed by government of UK will assist respective company to
smoothly perform organisational task. Rules and regulation of government will lead to
have major impact on performance of business. Mado company will consider Joint
venture as enter mode so it is essential that manager of respective company correct full
fill all legal requirements while entering into new international market area. Provide creative and unique products – In order to develop strong band image in market
area respective company needs to create unique and different products. This will lead to
attract more customers as well as increase the sales of business in international market
area. Differentiation strategy will lead to increase the customer base of company as well
as help in gaining competitive advantages over other strong rival companies. Effective marketing practices - Marketing activities will help in increasing the awareness
of new and creative product of Mado company in new market area. There are various
effective methods and approaches that can be consider by respective company in order to
promote and advertise products and services. Social media marketing will be most
10

effective and efficient strategy that will lead to reduce the marketing cost of business as
well as attracting large customers base.
 Training of employees – It is importance for Mado company to provide training to its
employees in order to increase their skills and capabilities. Training will lead to increase
the potential of staff member to successfully perform business activities at international
level and attain set goals.
11

REFERENCES
Books and Journals
Aguilera, R. V. and Grøgaard, B., 2019. The dubious role of institutions in international
business: A road forward. Journal of International Business Studies. 50(1). pp.20-35.
Cantwell, J., 2017. Innovation and international business. Industry and Innovation, 24(1), pp.41-
60.
Cherunilam, F., 2020. International business. PHI Learning Pvt. Ltd..
Chow, D. C. and Schoenbaum, T. J., 2020. International business transactions: problems, cases,
and materials. Wolters Kluwer Law & Business.
Daniels, J. D. and et. al., 2016. International business: Environments and operations. Pearson.
Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business, 51(1),
pp.23-34.
Peterson, M. F., Arregle, J. L. and Martin, X., 2020. Multilevel models in international business
research. In Research Methods in International Business (pp. 417-432). Palgrave
Macmillan, Cham.
Stahl, G. K. and Tung, R. L., 2015. Towards a more balanced treatment of culture in
international business studies: The need for positive cross-cultural scholarship. Journal
of International Business Studies, 46(4), pp.391-414.
Vagts, D. F., and et. al., 2015. Transnational business problems. West Academic.
Aguilera, R.V. and Grøgaard, B., 2019. The dubious role of institutions in international
business: A road forward. Journal of International Business Studies. 50(1). pp.20-35.
Wettstein, F., and et. al., 2019. International business and human rights: A research
agenda. Journal of World Business, 54(1), pp.54-65.
Zander, I., McDougall-Covin, P. and Rose, E. L., 2015. Born globals and international business:
Evolution of a field of research. Journal of International Business Studies, 46(1), pp.27-
35.
12