International Business Report: Purfrock Coffee Expansion - Germany

This report provides an overview of Purfrock Coffee's internationalization strategy, focusing on its planned expansion into Germany. It examines the rationale behind selecting Germany as the target market, considering its large consumer base and skilled workforce. The report identifies potential barriers to international expansion, such as cost considerations, financial regulations, and international taxes, and analyzes various international approaches to mitigate these challenges. The report also highlights the importance of adapting to cultural differences and leveraging Germany's strong legal system and competitive environment. Purfrock Coffee aims to capitalize on Germany's market potential by utilizing digital platforms for brand promotion and focusing on customer experience to build loyalty and achieve sustainable growth. This assignment solution is available on Desklib, where students can find a wealth of study resources, including past papers and solved assignments.

International Business

Executive Summary
The report brings in the ideology of the internationalisation process that will fetch the
organisation with the essence of internationalisation. The expansion prospect will have to deal
with certain barriers were initially the organisation will be in terms of dealing with them.
Barriers in international expansion are all explained with the methods of international expansion.

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................5
MAIN BODY...................................................................................................................................5
Brief overview and rationale ......................................................................................................5
Reason for selecting the specific country and rationale .............................................................7
Barriers in international expansion ............................................................................................8
Critical analysis of international approaches ...........................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
International business which refers to the trade of goods, technology, services, knowledge or
capital across the national boarders and at the transnational scale or global terms. While it could
also involve the cross border transaction of goods and services between two or more countries
and international business is also known as globalization. This seems that multinational business
which require for developing the bridge that separate from the one of global marketplace. This
report will examine about the brief overview of Purfrock coffee and the rationale for going with
the international business. Along with this also explain about the expansion of business in which
country and rationale behind the select country. Moreover, typical barriers that will faced by the
organization in expanding internationally and various implementation approaches for
international process with having the targeted market.
MAIN BODY
Brief overview and rationale
Purfrock coffee, which is based on the coffee enthusiasts and keep the development
towards the team talented coffee professionals, with having the wealth of experience and lead
about the passion for what to do. The company have taken the huge years for developing and in
present time, they are ensured for expanding the business globally and also gathering place for
the locals and destination for guests from around the world. Currently, the organization mission
for continually involved in the experimenting with having some new ingredients and techniques.
The organization strive to support the local producer and some small scale growers. Purfrock
coffee have the variety of coffee and this coffee the organization wants to expand and try to
ensure the better customer experience (Bahoo, Alon and Paltrinieri, 2020). While having such
things this might be also important for always changing about both espresso based and filter
coffees. There are being variety of coffees such as koppi coffee, five Elephant, la Cabra, drop
coffee, Belleeville and so on. The organization is working with having some seasonal foods,
home-cooked food etc. those things which make the customer experience better and make sure
for developing overall countries or various countries.
The organization that have the clear aim for expansion their business international and
develop more stores at time as business with having purchase and loyalty. While having business

international the firm do not require depending too much on advertising or some of their
traditional marketing rather than depending on experience, developing loyalty. An international
brands was not born on the basis of advertising, but they have more concentrating towards the
customer at one time store and one market at one time (Buckley and Casson, 2021). At the same
time, Purfrock coffee have also introduced the lighter roast in addition, for working within the
traditional dark offering. While expanding international Purfrock coffee have become the
typically followed about the policy and seeks out with their domestic co-workers for establishing
the part of better marketing infrastructure. Along with this one of the best keys for Purfrock
coffee business strategy for better international expansion.
This might be more helpful for the business and make sure for having huge customer
experience with high profits. The firm which required to work according to the sales with long
term business development and also come to know about how usually they are being keeping
their focus towards the work. Purfrock coffee need to take major advantage about products
which must be produces that are not available in international market. So, the organization need
to work more for developing their products and services for which they can easily make their
targeted and keep production advantage (Czinkota, Khan and Knight, 2021). The company can
also take the cost advantage in exporting their business with country and lead the better working
environment. Economic recession that could take place within the international business, and
they can mitigate the effects of slow economy in their home country. Growth in demand in other
market, when the organization keep their growth towards the international market this could
bring the primitives and native tribes.
However, working with globally, firms can see growth and development rather than the
domestic market share. Excess capacity of production, this could be another reason for having
the international business for utilize the excess productivity to their manufacturing plants. This
also help the brands for generating revenue and also push out the huge volumes for their stores.
Economies of scale, this might be one factor which helps for having profitability of the company
for great extent and come to know about how usually they are working (Coscia, Neffke and
Hausmann, 2020). The company culture at the international marketing that could be changes and
that could also lead for having the great working environment to all workforce and make sure
about the company diversity as an essential component of foreign investments. The company that

could be also required for working with strategies at international business with having
succession and global expansion.
Reason for selecting the specific country and rationale
In present times, Purfrock coffee decided to develop business in Germany and try to
ensure for opening more than one store. As the organization also plan for any advertising
promotion activities or any other marketing strategies, aside from this sponsoring on the coffee
club. The organization that have selected the better countries in which many of the people ho are
likely or have coffee and keep their customer preference better. The company is also counting
higher visibility traffic location that they market themselves (Busnaina, Almgatif and Sdiri,
2021). For promoting the coffee brands into country the organization can make the proper use of
digital platform, external or internal media and so on. Through which they can easily make their
brands promotion and ensure them for developing better profits. In addition, expansion business
in Germany that could lead with the highest population and largest consumer market with terms
of number of people and better purchasing power.
Expansion of business this could also lead them for working within the better skills
employed that can make the organization with highly developed. As the Germany is well-known
for the expectationally high level of educational attainment. This also helps them with having the
huge young people into their ideas field, basically that helps for encourage them specialization.
But, sometime organization can face huge issues while expanding the business such as culture
difference, regulatory difference and so on (Kyselova, 2021). This could lead them for working
less. But, while the organization need to hire the best worker which help for maintaining the
business relation and try to make sure for following the hierarchical structures. Purfrock coffee,
can get the better business opportunities and innovative business culture along with large
consumer spending power. This could also come to know about how the commercial expansion
is taking place and Germany also boasts an excellent transport network or highly skilled
workforce.
Trading across boarding, relatively open the exports and third country import duties,
which might be having the prohibition and restriction. While having expansion in Germany, the
organization can get huge benefits and sometime this might be lead them for working within the
agreement about their work (Eriksson, Heikkilä and Nummela, 2021). Resolving insolvency,
which terms the Germany legal system and respected around the world, along with this ranked

fourth for its huge ability to resolve the insolvencies and receiving the average in return from the
last few years. One of the best advantage, for doing business in Germany, that country follow the
strict competition laws, which might be prevented the rivals for making false claims and lead the
organization products in order to attract the customer for themselves. Regional more
understanding about the language which seems to be important stages, local competition seems
to be less for the coffee store in country. The company might be not facing the issues about the
brands name and reputation that could remain same and ensure them for working with long
terms.
The organization will also face the delivery issues as across the longer distance, this
could be required for having short shipping/infrastructure to be completely sorted. While having
such things this might be also helpful for organization in developing the business at Germany
and bringing out the effective concepts towards those goals and objective which have been set up
by firm. Purfrock coffee, need to hire the best employee which usually help them for developing
their business towards many more countries (Nielsen, Marinova and Marinov, 2021). Along with
this also make sure for having the huge profits and better estimated about their sales in country.
This could be seemed that Germany have remains the strong magnet for the business, despite
about those effective slowing with people who are investing more for following the better global
recession. Purfrock coffee can bring more innovative ideas and thoughts for developing the
business and make sure for having more stores rather than one.
Barriers in international expansion
There will be a tremendous initiation that will have to be taken for in order to deal with the
International expansion. International expansion is not just a small entity that will have to be
identified and will have to be worked upon but it is also necessary to deal with the extravagant
factors that are pertaining with respect to the country with which the organisation is moving
ahead. The expansion prospect will have to deal with certain barriers were initially the
organisation will be in terms of dealing with them (Alon and et.al, 2018). Whether it be a small
company or a large initiation it is always necessary that a Priority search will have to be initiated
in this regard such that the barriers that are into International expansion can therefore be
understood. The different barriers that are in regard to the organisation Prufrock Coffee in this
regard include the following:

Cost effective measures: the measure of cost is one of the important criteria while dealing with
international expansion. The organisation Prufrock Coffee in this report will have to deal with
this as one of the biggest barrier for international entry because there are certain cost effective
measures because the currency is different from the host country to the parent country. There
will considerable e a different mechanism that is oriented with respect to cost analysis and
therefore the company will have to be prepared for the costs which are to be oriented with
organisational products. The return on investment is also one of those important criteria that will
have to be dealt while dealing with the International expansion (Bahl and et.al, 2021).
Financial accounts: building with the finances Overseas it is always essential to have a complete
idea about how the regulations are going to be. This will end up being a biggest problem is not
evaluated on a better term. Opening an account of with respect to the organisational transactions
will have to be dealt in a particular wait where certain banks are out of information and the
company Prufrock Coffee will have to suffer at the cost of opening their account. The VAT
registration as well as the easier approaches that are into economy will have to be dealt in this
regard the while dealing with international expansion.
Taxes: the company Prufrock Coffee when moving ahead with international expansion will first
have to be prepared for the international taxes. The form if not ready to deal with the
International taxes it will have to have their own strategies where several tax firms will often
lead to destruction. Obviously this will have to be worked upon because the Advisors as well as
the issues that are oriented with respect to tax will all have to be abided (Lahiri and et.al, 2020).
The taxation strategies will have to match the international taxes policy and that will also help
the organisation to move ahead without any probable barrier.
People: the people in the host country are also regarded to be one of the spectacular means of
dealing with any other organisational entity. The organisation Prufrock Coffee will have to find
the best customer base in order to move ahead with their International expansion criteria. For any
business to get a hold or a group of every customer the strategies that are into marketing as well
as by dealing with the interactive mechanism of customers will also have to be prioritised. This
is all the toughest decisions it will have to lead to a good sales that will help the organisation stay
equipped with the best out of the lot. Organisational sales are obviously important to deal with a
business into International bases and therefore the misunderstandings in this regard will have to

be sold at all levels and a good customer base will have to be maintained (Kafouros and et.al,
2022).
Communication: the communication that is in terms of dealing with the language as well as the
issues that will have to be communicated with respect to organisational entity will have to be
brought in. While expanding internationally There are several challenges that are oriented with
people around. The most important part is to deal with the decisions and dissemination of
information. These are the important means where most of the communications go out of vain
and that will also act as a barrier. To maintain a proper communication the communication
channels will have to be first evaluated by the organisation upon which an improved ability
towards dealing with all the spectacular circumstances can happen.
Culture: International culture is something different from the host country. It is important to
make sure that the organisation will have to have a stamp of its own Culture by maintaining a
corporate kind of atmosphere in providing its product. Almost all the people are aware of the
product that the organisation Prufrock Coffee is dealing with and therefore the culture and values
will never go in vain. This well maintained on a prior basis the organisation can have a
successful base from the customers.
Team building: the organisation will have to be composed with the right set of individuals in
order to manage their criteria of any employee strategy. For this a better thing will have to be
initiated such that every department in the firm can be captured with the right set of individuals
that can bring in the ideologies and their respective analysis that is necessary for organisation to
move ahead in terms of growth prospects (Sharipov, 2020).
Critical analysis of international approaches
An international approach will have to be gratified with respect to certain mechanism that will
help to formulate the required strategies that is necessary to maintain our target group. The
organisation that is more than in this regard which is the Prufrock coffee is known for the best
coffee that it brings in. The organisation while expanding International it will have to deal with
certain processes that are to be initiated. For this there are certain ways that will have to be put
forth by the organisation such that the characteristic features that are oriented with the method
that has been incorporated can usually be of benefit (Sharipov, 2020).
Joint ventures: joint venture is essential for the organisation in order to have a particular base in
the country Germany where it is planning to expand. Germany is a country where there are

certain Expectations emits of customers and therefore in a typical Pursuit the organisation will
have to deal with a party that will help it to gain the efficiency that is required. The advantage of
taking this measure as a part of international expansion is that the investment over the project can
be one of the profitable standard and the skills and capabilities can be sharpened at all levels.
There are no particular disadvantages that are oriented with the unless and until the risk that are
associated are not sold time to time (Sharipov, 2020). This is also one of the aspect that can help
to minimise the downside risk and can also help to face challenges that are a part of international
expansion.
Franchising: under a franchise the organisation can get into a general agreement that will help its
brand to be in charge of the franchises brand. This can help it to operate as a branch of the parent
company in Germany which is one of the essential criteria in order to have a good customer base.
The organisation can move in terms of motivated Management which is one of the advantage
that is oriented with franchising and this can also leverage staffing (Vahlne and Johanson, 2017).
The growth of the organisation can speed up and intern get more customer base that is required.
The ease of supervision can also be gratified with respect to the business module while going on
to franchising. Although there are certain disadvantages like that of Limited creativity and lack
of privacy yet this can be worked upon for certain instance in order to get through the challenges
that are pertaining in the country Germany. The sharing of information will have to be protected
and will also have to be confidential while dealing with franchising which will in return be a
disadvantage for the organisation. The organisation can also stand as an identity of becoming the
best upon dealing with the brand values.
CONCLUSION
The report concludes up on explaining about the internationalisation that is in regard to
organisation. Through this report one can easily understand the probable means of going
international and also how far the preparation strategies are useful in dealing with international
expansion. The strategies that are into internationalisation are all explained in this report. The
different orientation that are put forth to bring about an overview with respect to choose an
organisation is being explained in this report. The recommendations that are critically discussed
with respect to the decision-making criteria through a rational is put forth in this report (Vahlne
and Johanson, 2017). The typical barriers that are being faced by the organisation in order to
expand internationally are evaluated with respect to various factors that can contribute for the

organisational upliftment. The critical analysis with respect to the implementation approach for
the specified target market in terms of communication strategy and relationship management is
being explained in this report.