International Business Report: ABC Continental Limited Expansion

This report provides a comprehensive analysis of ABC Continental Limited's plan to establish a new business venture in the United Kingdom, focusing on selling organic cotton cloth wear for infants. The report begins with an introduction to ABC Continental Limited, an India-based air service provider, and outlines their expansion strategy, leveraging the UK's reputation for quality and transparency. The report delves into a detailed e-commerce strategy, including identifying customers, product promotion, content marketing, social media usage, mobile compatibility, web application maintenance, building trust, logistics, and customer service. Key business drivers for expansion, including strategy, people and operations, infrastructure, funding, and risk management, are discussed. The report then examines barriers to international trade, such as cultural and social barriers, political atmosphere, and protectionism. Ethical, social, and legal issues are also explored. The report concludes by comparing e-commerce with other expansion methods and assessing the impact of Brexit on the new venture.

Running head: INTERNATIONAL BUSINESS
International Business
Name of the Student
Name of the University
Author Note:

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Table of Contents
Introduction..........................................................................................................................2
Discussion............................................................................................................................3
Detail Strategy.................................................................................................................3
Key Business Drivers......................................................................................................5
Important barriers to trade and policies...........................................................................7
Ethical, Social and Legal Issues......................................................................................8
Cross-Culture Issues........................................................................................................9
E-Commerce vs Other Method of Expansion..................................................................9
Different aspect of International marketing...................................................................11
Impact of Brexit on the new venture.............................................................................12
Conclusion.........................................................................................................................13
References..........................................................................................................................15

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Introduction
The following report mainly details about ABC Continental Limited which is based in
India (Sperber et al. 2014). The organization mainly deals within providing proper air services
which are committed to providing safe, reliable and cost-effective way for delivery of
consignment. They considered being IATA registered agents which provide easy access to major
kind of airline services. It can easily offer competitive prices to its clients. They are considered to
be expert and have ability to move single or even complex shipments by air mode. It can be done
at any time or even from any destination (Spence, 2016). The organization is planning to be set
up new kind of business venture in whole United Kingdom (UK). The organization comes up
with an idea of setting up new platform for selling organic cotton cloth wear for infants of UK.
The organization will get the supply of raw materials from India who is specialized in
manufacturing organic cotton infant wear. This business will make use of UK reputation for
quality of land, reliability and lastly transparency. As the new venture is based in UK, it can
unrelated kind of diversification that is new kind of portfolio for risk and opportunities.
In the coming pages of the report, a detail strategy proposal for extensive and market
research has been provided in details. After that, the main business drivers behind the expansion
in UK has been provided. A list of important barriers for trade and policies which can damage
the new venture has been provided. Various issues like ethical, social and lastly legal aspects
have been discussed in details. Issues related to cross culture has been provided in details. The
last section of the report deals with e-commerce vs another mode of expansion and potential
impact of Brexit has been provided.

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Discussion
Detail Strategy
E-commerce has taken the whole concept of buying and selling of goods to next
generation. Shopping through online mode is now experience as it makes benefit for the end
users along with profit for the whole business (Spector, Liu, and Sanchez, 2015). In the year
2014, the whole e-commerce industry understands the goods with goods and services worth of
value 1.5 trillion USD. Later on, in the year 2015 another exciting year for whole e-commerce
industry for mobile shopping which tends to itself in the market. Consumers from various region
of the world tend to spill across different devices. Brick and mortar retailers tend to focus on
more online strategies and mobile industry will tend to grow around 40% for global transaction
(Smith, Görzig and Robinson, 2018). ABC Continental Limited should implement a list of
strategies for boasting this new infant cloth plan like:
Identifying and learning about Customers: The first notion of this ABC Continental
Limited in the whole web market is all about identifying the end user. If an individual has a
better understanding of, better the individual will able to devise products. It will ultimately lead
to improving the traffic, sales and lastly traffic (Shiraev and Levy, 2016). If the organization has
an idea regarding the buying behavior of consumer of UK, then it will increase the sale of
infants.
Adding carefully to product: Stock marketing product can easily result in sell of overall
product. Mass marketing of products merely stress over the fact product needs to have
exponential buying power. Until and Unless ABC Continental Limited reaches the level of
Walmart, the individual needs to reach the products (Howard and Kollanyi, 2016). This

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organization should be unique in selling of products that are infant clothes. It is encountered that
overall demand of product will tend to decrease a lot.
Promoting through Intelligent Content: An individual should not underestimate the
overall power of content marketing. It is considered to be full proof tool which is needed for
driving office in the store (Goodwin and Heath, 2016). The fact should be taken into account
there is some best kind of intelligent marketing techniques for some online business. Content
mainly focus publishing information which is all about storing of products.
Making use of Social Media: Social media platform like Facebook and Twitter can be
best magic for online business more specifically the start-ups like ABC Continental Limited. It is
considered to be as one of best way making use of creativity, social metrics and lastly analytical
thing (Colantone and Stanig, 2018). It is mainly needed to gain exposure which is needed for
selling and gaining exposure for some of target audience. It is considered to be economical for
incorporating any business plan when the given result can be exponential in nature.
Mobile Compatibility: Mobile e-commerce is known to be domain of e-commerce
which is growing at a much high rate. If the ABC Continental Limited does not plan mobile
compatible platform, then the organization can easily experience huge amount of drop in the
revenue. But for getting mobile compatible platform an individual can easily experience can see
smartphone attuned web store (Agwu and Murray, 2018). The mobile platform will allow the
user to keep a track of order tracking, real-time notification, maps and information of various
products of infant.
Maintaining Web Application: Maintenance is known to be an important factor for
various online business more specifically infant’s cloth stores. The only factor which is taken

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into consideration is all about fixing website and different web applications. It merely highlights
periodic changes for website and various web application (Bell, Bryman, and Harley, 2018).
Upgradation of new applications to present standard and employing new tools are known to be
convenience for customers.
Improving Trust and Credibility: Generally online consumer is looking for some trust
worthy stores. Selling of genuine infant cloths can easily result in delivery of good products and
the customers can easily get value for money (Brea‐Solís, Casadesus‐Masanell and Grifell‐Tatjé,
2015). The customers of this ABC Continental Limited needs to have an idea regarding genuine
products and services. It can be done from original testimonial that is from previous purchase to
present buyers and lastly review of customer services. All the given tools can be used for not
only adding brand value but also built trust value for customers.
Logistic Sound: A proper successful online business, ABC Continental Limited needs to
have a clear picture with respect to logistics (Betancourt et al., 2016). If the promised items like
infant’s clothes are not delivered on time, then the customer base for this organization with being
affected. Apart from this, certain features like easy replacement and easy return are considered to
be driving factors for the given customers. It will ultimately make the logistics a much better
place.
Augment Customer Services: Online mode of shopping tends to provide huge amount
of convincing to customers. There are some instances when it is very important for interacting
with business (Darrow et al. 2015). ABC Continental Limited should emphasize on provide
multichannel customer based which can satisfy the customers.

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Key Business Drivers
If there is some kind of sure shot formula for fast growth, then number of organization
will tend to achieve same kind of revenue. There are mainly five business drivers for the
expansion of ABC Continental Limited.
Strategy: The main key business growth drivers for this business that is ABC
Continental Limited is strategy (Dhingra et al. 2016). For any fast growing organization like
ABC Continental Limited is all about idea with can be converted into business plan. The strategy
focus brings new design of infant cloth in the market or modifying an existing product or service
so that it can be delivered in new way. Accelerated growth can be easily managed by developing
new products or even expanding into current markets.
People and Operations: Apart from strategy, both people and operation are considered
to be another growth driver. There is large number of fast-growing organization which is
individual driving which can move them forward (Dhingra et al. 2016). A fast-growing
organization like ABC Continental Limited mainly depends on teamwork. Business Owners need
to focus on group or individual with whom they can share important information and can easily
apply dreams and values.
Infrastructure: A growing organization like ABC Continental Limited requires to
develop a proper infrastructure so that the business can easily grow (Gupta and Bhaskar, 2016).
It mainly requires certain number of IT systems, processes or even some of the basic office
space. Operational system needs to have an idea regarding how ABC Continental Limited can
maintain efficiency.

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Funding: ABC Continental Limited cannot grow on fast pace without any kind of
funding. Capital is considered to be an important parameter for growth of business. Proper kind
of financial backup is considered to be critical for any organization (Becker, Fetzer and Novy,
2017). High value of growth cannot be achieved with large amount of funding. The value of
funding will ultimately result in fast growth. Certain factors like transaction are considered to be
important factor for driving growth.
Risk and Reporting: With the passage of time ABC Continental Limited will grow, so it
is important for establishing control which will help in managing certain number of risk. This
particular parameter is considered to be an important factor for organization both internally and
externally (Chaffey, 2015). The management teams of ABC Continental Limited needs to
establish proper communication so that they can establish communication among themselves.
Proper management of five factors is considered to be vital.
Important barriers to trade and policies
International trade is considered to be important and most profitable for any organization
but apart from these, there is some kind of barriers to international trade. A list of problem has
which can be encountered by Important barriers to trade has been discussed below like:
Cultural and social barriers: The culture and social forces of an organization can easily
restrict any international business (Hair Jr et al., 2015). Culture mainly comprises of some of the
general concept and values which are intangible in nature like food, cloth, and building. There is
some kind of social forces like family, religion and custom. Selling of product from one country
to another country is considered to be difficult for any two organizations.

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Potential barriers: The political atmosphere of any organization can easily result in
huge amount of impact on some international trade (Laudon and Laudon, 2016). Political
atmosphere of the attitudes towards any kind of foreign firms in the given time. Any kind of
unfavorable atmosphere can be used for international business.
Boycotts: It can be defined as the absolute for prohibition of purchase and import of
certain good.
Trade protectionism is generally implemented by certain number of countries which is
affected by unjust kind of competition. It can be stated like defensive measure which is seen by
various political forces (Inglehart and Norris, 2016). In other words, protectionism can be stated
as government action and policies which is used for restriction or restraint of international trade.
It is mainly done with the notion of protecting local business and jobs from any kind of
competition. There are some methods of protectionism of import staffs, quotes, and direct state
intervention. Trade protection tends to hurt the overall economy of the country which tends to
enforce as one of the oldest but still tend to understand the economy as far possible.
Ethical, Social and Legal Issues
As the market for the international business is expanding at a higher rate, ABC
Continental Limited is focusing on expansion on international platform (Mesman, van
IJzendoorn, and Sagi-Schwarz, 2016). Both legal structures and frameworks tend to differ in
United Kingdom. An individual need to address both legal and ethical issues before entering a
market.
Employment: Both wages and working environment is considered to be an important
factor for oversea based location (Kolk, 2016). It mainly highlights the local legal requirements

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of any business. If an individual tends to hire workers, then an individual can encounter issues
with pay levels and working condition.
Corruption: Various organization like ABC Continental Limited focus on making
payments which are needed for securing their business. It will ultimately lead to guilty of some
of the illegal activity. The payments are mainly done for customary in nature which is needed for
understanding the legal laws (Schwartz, 2017). When this organization makes use of such
payments, it can easily encourage a local system of corruption which is achieved by unethical
behavior. Smaller gifts will ultimately result in influencing a major kind of decision.
Human Rights: The country in which the organization is expanding business might not
have some basic human rights (Darrow et al. 2015). The ethical problem encountered by an
organization is the major zone for understanding catalysts for human right improvements.
Cross-Culture Issues
ABC Continental Limited large number of cross cultural issues which can help this
organization in providing new opportunity for both growth and profit. Doing global business is
not that much easy, there is large number of issues or problem associated with it (Becker, Fetzer
and Novy, 2017). Various culture around the globe comes up with different kind of values but in
many cases, it can be stark. It can be difficult in some countries where women do have right like
men. Marketing style in United Kingdom can easily differ from other countries. Some of the
cultures all around the globe take it seriously as view from important in comparison to individual
(Chaffey, 2015). It is important for ABC Continental Limited to understand the new kind of
policies in United Kingdom. There is large number of issues of Cross Culture Issues in Business
like:

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Effects: Diversification of population focus on sales and marketing based communication
for different population in United Kingdom. Various countries all around the globe tend to
understand the changing demographics in various cities (Dhingra et al. 2016). The neighborhood
tends to come up with different kind of communication-based approaches.
Misconception: Organization like ABC Continental Limited have focused on selling of
products in different market (Kolk, 2016). It is mainly done as a result of changing slogan and
new kind of branding strategies for understanding the demography.
E-Commerce vs Other Method of Expansion
E-commerce is considered to be new variety of e-commerce which helps in exchange of
goods. Some other forms of business expansion are traditional e-commerce (Laudon and Laudon,
2016). The only difference encountered between traditional e-commerce and normal e-commerce
is all about accessibility. With the help of traditional business one can easily reach and accessible
as per the customer’s interest. There are some between traditional e-commerce and local e-
commerce like advantages and disadvantages. Traditional stores are considered to be a local
store which tends to provide offers for services and products to large number of customers
(Mesman, van IJzendoorn and Sagi-Schwarz, 2016). In this kind of setup people generally needs
to visit the store for physical buy of product. If organization like ABC Continental Limited
would opt for physical store option then they have to face a large number of issues like
Cost of infrastructure: In some of the traditional business, the overall infrastructure cost
is considered to be high (Inglehart and Norris, 2016). Both retention and buying of office for
ABC Continental Limited are considered to be expensive.

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Cost of employing staff: ABC Continental Limited needs to hire new staff for both
sales, account, management, and security.
Huge investment in maintaining stock: It is considered to be important for this
organization to keep the stock of infant clothes (Schwartz, 2017). It is all about dealing with
huge amount of money which can easily get blocked in the business.
Limitation of Locality: Making a correct choice of proper location is considered to be an
important parameter (Dhingra et al. 2016). The open stores of ABC Continental Limited must be
located in open spaces so that various customers can easily visit.
Less scope for expansion: This is considered to be most vital point as ABC Continental
Limited will have limited office, there will be minimum chances of business expansion in near
future.
If ABC Continental Limited opt for E-commerce option then it can easily have many
benefits like
No limitation: This is considered to be as one of the biggest pluses of e-commerce
industry. In online domain, an individual is merely one click away. So, it is easier for them to
buy new products
Time accessibility: Online web-based platform tends to work or run for 24 hours
interval. An individual can easily buy products anytime that is even on some of the holiday.
Global reach: It will be very easy for ABC Continental Limited to expand their business
on online platform as any kind of physical presence of the customer is needed.

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Better Customer Services: In the domain of e-commerce an individual can easily serve
the customer is much better way. An individual can easily resolve quarries for faster email and
even live chats.
Financial Investment: ABC Continental Limited can easily start their online business of
selling infant cloths as e-commerce platform tends to provide free e-commerce stored.
Different aspect of International marketing
International marketing can be easily sated as the overall performance of marketing
activities which is carried out in more than one nation.
Targeting international customer: It mainly highlights the importance of segmentation,
targeting, marketing and lastly positioning of some international customers.
Looking for Global consumer needs: It emphasizes the importance of similarities and
differences in various customer groups in different regions of the country.
Satisfying the global need: ABC Continental Limited should focus on implementing
marketing mix strategy which is needed for satisfying the consumer need in different regions of
United Kingdom.
Better than Competition: ABC Continental Limited should focus on keeping a track on
global competition by providing values.
Maintaining relationship: ABC Continental Limited should make a strategy of
maintaining a long-term relationship with foreign customer and another kind of involved
business parties.

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Coordinating Global Business: ABC Continental Limited should integrate certain
number of business activities along with implementing in some nation.
Global environment: ABC Continental Limited should consider an analysis with respect
to both internal and external factors in some countries like United Kingdom.
Orientation of Business: ABC Continental Limited should pressure on expanding
markets and overall profit.
Impact of Brexit on the new venture
Brexit comes up with potential of rewriting the rulebook of governing organization tend
to operate in UK (Gupta and Bhaskar, 2016). Brexit in UK will create a large number of effects
on different aspect like trade, foreign direct investment, number and type of workers, regulation,
productivity, value of sterling and another kind of policies.
Trade: In UK economy, a huge amount of change is brought by different oversea buyers.
In many cases, a significant amount of changes can be brought from business from overseas
(Hair Jr et al., 2015). Various economist around the globe has argued the fact that good trade can
easily improve the living standard of different parties involved. By addressing the competitive
advantage for any organization, it can affect the goods and services which is being offered to it.
The cost of goods in UK is mainly influenced by goods and services in some of the other
countries. The most three factors which are taken into consideration is simple local goods(Brea‐
Solís, Casadesus‐Masanell and Grifell‐Tatjé, 2015). Transport of goods an easily increases
overall cost of involved trading within other countries. It will ultimately become more expensive
to send goods over much longer distance.

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Foreign direct investment: Investment is considered to be as one of the important
factors for long-term domestic product. Both kind of investment that is Domestic and public can
easily result in increase in overall number of machines, building and technologies. It is all about
workers which can have great disposal, technical progress, and lastly improved productivity.
Regulation: Domestic regulation tends to affect how cost-effectively various business
can easily make use of workers, technology and capital for producing output. As per some of the
international surveys both products and labor market in UK is considered to be least regulated.
Productivity: Strong value of productivity is considered to be important factor for any
business. With increase in productivity, workers can easily produce large quantities of output. It
does not require any kind of capital to work with. Growth of productivity is considered to be an
important factor for living standard.
Conclusion
From the above pages of the report, it can be easily stated that it is all about ABC
Continental Limited. The organization is mainly involved in offering some air services which
helps in safe, reliable and cost-effective method for delivery of consignment. They are
considered to be IATA based agents which helps in getting access to some major airlines which
is needed by their clients. The organization comes up with expertise to easily move some single
or even complex shipments by the mode of air. The organization has come up with a new plan to
expand their business in UK. The organization fully makes use of reputation of UK for quality
and reliability. The organization aims to provide new kind of business strategy for establishing
new venture. In the above pages of the report a detail strategy proposal has been discussed in
details. After that key business drivers of organization in UK has been discussed. Various kind of

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ethical, social issues which can arise has been discussed. A list of cross issues has been provided
in the above pages.

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