International Business Expansion of Rahat Continental Limited Report

This report examines the international business expansion of Rahat Continental Limited, focusing on its venture into the UK market with infant cotton wear. It begins by identifying key business drivers such as strategy, infrastructure, funding, risk management, and market factors. The report then analyzes trade protectionist policies and barriers, including the impact of Brexit on the company's operations. Ethical, social, and legal aspects of international marketing, including business ethics, cultural differences, and legal compliance, are also discussed. Furthermore, the report evaluates cross-cultural aspects, emphasizing the importance of understanding cultural differences in communication and business practices. Finally, it explores the feasibility of online versus offline marketing strategies and determines the impact of Brexit on the new venture. The report provides a comprehensive overview of the challenges and opportunities associated with Rahat Continental Limited's international expansion, offering insights into market entry, ethical considerations, and strategic decision-making within the context of international business.

International Business

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Key business drivers behind expansion of Rahat Limited company......................................1
Trade protectionist policies and barriers which effects the business operations of new venture
................................................................................................................................................3
Ethical, social and legal aspects involved in international marketing trade of Rahat
Continental Limited................................................................................................................3
Evaluating the cross-cultural aspects of the developing a new business venture...................5
Feasibility of current UK market where Online marketing verses offline marketing of new
products..................................................................................................................................6
Different aspects of international marketing relevant to Rahat Continental Limited............7
Determining the impact of Brexit in developing a new venture within Uk country..............8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
International business refers to cross-border trade between the companies or government.
An organisation expanding the business requires understanding about the trade regulations of the
country in which they are expanding. This document is based on the international trade of Rahat
Continental Limited. This enterprise deals with the international air services in which this
company works as a IATA (International Transport Association Agent). This report will provide
a understanding about unrelated diversification of the business in UK where company where
Infant cotton wear will be manufactured at UK.
In addition to this, this study will provide various key business drivers that assist the
expansion of company in UK. Various ethical, social and legal considerations are also taken into
account in order to expand the business activities of the enterprise. Also, the research will assist
readers about E-Commerce strategy which help in effective expansion and successful
development of the enterprise. This study will also discover the impacts of Brexit that in
development of new venture at UK.
MAIN BODY
Key business drivers behind expansion of Rahat Limited company
Rahat Continental company provides air services to people and now planning to expand
its business activities in a diversified manner. New venture will establish E-commerce business
in order to sell infant cotton wear in UK (Correa and Yusuf eds., 2016). Growth and
development of the business in international market will be depend on various kinds of factors.
So when the company enters into new market sector and increases its product or service line,
they need to consider various drivers that contributes towards the successful expansion of the
Rahat Continental Limited. The Key Business growth driver is a strategy which might
investigates about bringing a new product into the market. Also, company derives a plan to
analyze about the existing products or services. In order to launch or expand new product into
new market. Various key business drivers are as follows:
 Strategy: It is very important key business driver that aids concepts and ideas for
expansion of the products within market. So this can be determined as a business plan,
according to which all the actions activities of the business are performed. Being an
International business consultant of Rahat Continental Limited, a proper strategy need to
be developed in order to launch a new product within UK market. The sustainable
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expansion and growth of the new venture can be driven by identifying the marketing
situations in which the company is going to expand the business.
 People and infrastructure: This is another key growth driver which can be determined
by effective team and infrastructure which helps the employees in delivering desired
output (Cottier, 2015). Companies that grow fast often have a key individual who
motivates them towards the achievement of main objectives and vision of Rahat
enterprise. However, growing the business faster relies on the team as well as individual
efforts to accomplish the international trade of cotton wear within UK. Along with the
operations of the business, company also need to develop an appropriate infrastructure in
order to make the workforce motivated towards the goals. This infrastructure need
constant adjustments according to the growth of the business. It involves IT Systems,
manufacturing process, office environment along with the basic space. In order to
maintain operational efficiency and growth of the business, infrastructure need to be
highly maintained.
 Funding: As the growth of the business is completely determined by capital investment
and funding procedures of Rahat Continental Limited. So it is one of the most important
key driver as the success of the company is mainly depends on the funding source that
helps the company production of goods and services (Cullet, 2017). In order to drive the
growth of the international business in UK, company need to build a strong relationship
with the customers and suppliers of the firm. Along with this, as the business expands
merger and acquisition may offer the potential in order to access the entry into new
geographical market.
 Risk and Reporting: This growth driver, involves the risk factor within the business as
establishment of the New venture is surrounded by high uncertainties. Rahat Continental
Limited have to consider high risk in setting up international market for which, they need
to understand marketing trend, trade regulations and needs of the customers in UK.The
reporting element is also important in order to manage the operations and productivity of
the firm. Effective communication between all the staff members improve the
performance of the workforce and thus company need to establish a effective reporting
structure in order to manage overall performance of the business.
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 Market relevant factors: As Rahat company is going to expend the international
business market, so various factors related to trend, preferences and demands of People
living in UK need to be considered. This key driver allows the company to determine
marketing competition of the cotton wear in Uk.
Trade protectionist policies and barriers which effects the business operations of new venture
Barriers to entry act as a deterrent against new competitor. These challenges are those
factors that prevent the startup from entering a particular market (Kolk, 2016). Trade
protectionism is termed as the deliberate attempts to restrict the imports and exports of the
business. Trade barriers includes government include restrictions on international trade that
basically decreases overall economic efficiency of the business. Despite the argument in favor of
free trade and increasing the openness of the trade protectionism is widely practiced. Most of the
trade barriers impose some sort of cost on trade which results in the raised prices of goods and
services. Various trade barriers includes Tariffs, Non tariff barriers to trade, import license,
export licenses, Voluntary export restraints, currency devaluation and other trade restrictions.
Meanwhile, trade policy of the UK was flexible and liniant as they are allowed to trade with any
country of EU without any trade protectionist policies.
Trade barriers are often criticized as they effect on the overall economy of the world.
Rahat Continental Limited is establishing a diversified new venture in UK (De Padirac, 2017).
So Protectionism is the economic policy that restricts the import of other countries through
different methods such as import quotas, tariff on imported goods and governmental regulations
etc. Being the member of UN countries, UK was supposed to pay less taxes in trading the goods
and services with other countries of UN. However, Brexit has changed all the governmental rules
and regulations of the as UK have to pay a high non-tariff duty and taxes which will affect the
cost of production. Therefore, Rahat Continental company have to suffer a huge losses because it
could not be able to make huge profits after meeting such high taxes which were imposed to
them after Brexit happens.
Ethical, social and legal aspects involved in international marketing trade of Rahat Continental
Limited
International marketing includes different types of factors as all the countries follows
different customs, beliefs, ethics etc. organizations have to consider all those factors while
providing goods and services to the people of the region. Whereas, different countries have to
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pay taxes and duties in order to import and export the commodities from other countries. Despite
of international trading laws and regulations, Rahat continental Limited also have to face ethical,
social and legal challenges are involved in trading and business practices. Such factors are as
follows:
Ethical barrier
Business ethics can be effected by the policies and governmental procedures that impacts
on the prices of goods and services (Matsushita and Schoenbaum eds., 2016). International trade
can be termed as the exchange of goods and services across national borders. In most of the
countries, it represents a significant part of GDP (Gross Domestic Product). Some of the most
common ethical issues in international business trade includes outsourcing, working standards
and conditions, workplace diversity, human rights, political arena etc.
Businesses trading internationally are expected to fully comply with federal and safety
regulations of state. Wages and working standards of the region greatly influence the success of
international expansion. These standards generally protects the rights of the workers which
guarantees the living wages and safety of employees.
Social
These issues may be caused because international trading is performed between different
countries so social aspects of all the countries generally vary. These issues may arise due to the
cultural and regional differences of the people. Rahat Continental company originally belongs to
India and now wants to set up its new venture in UK. So there are lot of differences in lifestyle,
tastes and preferences of the people. So social issues are one of the important aspects which need
to be considered while expanding the business activities internationally. However, there is lot of
differences in customs and beliefs of the people living in different countries. So needs and
requirements of the people living in UK may vary from those who lives in India (Meyer and
Peng, 2016). So organizations who is globally setting the business have to analyze the marketing
demands and perceptions of the customers living in the country in which the business is
expanding.
Legal
These issues are concerned with the governmental; rules and regulations of different
countries. These legal procedures may directly impacts on the prices of goods and services. Such
as taxes and tariffs on the commodities may aids additional cost to the prices of goods.
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Businesses who are trading internationally are expected to fully comply with the federal and state
regulations such as environmental laws, fiscal and monetary reporting status and civil rights
laws.
In addition to this, wages and working environment of UK need to be adopted in order to
meet the legal aspects of the country which allows the organizations to sell goods and services
in order to earn huge profitability. According to the Rahat Continental Limit new venture,
growth and sustainability of the firm in international market mainly depends on various legal
considerations (Ethical, Social and Legal aspects of International Business, 2017).
Evaluating the cross-cultural aspects of the developing a new business venture
Rahat Continental Ltd is setting a business in a international market so they need to
consider all the cultural aspects of the region. As this business deals not only cross borders but
they need to operate the business activities within a cross culture. For example, Indian culture is
completely different from that of UK culture where most of the traditional fashion still exist in
clothing products. On the other hand, UK people prefer to wear open and short dresses. So it is
one of the major differences between t he fashionable clothing of two different country.
The great diversity of any culture make it impossible for negotiator, no matter how
skilled and experienced the entrepreneur in understanding the cultures across the world. Culture
profoundly influences the way people communicate with each other, behavior and their
understandings (Park ed., 2016). Although, to deal with the makers of different cultures there
need to be a strong relationship of various parties such as suppliers, customers and business staff
member. So cultural differences may bring various differences in understanding the needs and
requirement of different stakeholders. These issues also includes abilities to greet the people of
the business, power distance, non-verbal communication etc. so this need to be coordinated
between the company officials, employees and customers of the company in dealing with the
international market of the world.
In order to grow and derive the success of business in international market,
communication with the customer and the people of the area is one of the important aspect.
Consumer behavior, localized and standardized strategy, brand advertising and structural
arrangement of the organization need to be identified. Various cultural differences are as follows:
Communication and language is one of the most common cultural difference in establishing
the business in international market. Effective communication derive the success of the Rahat
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new venture in UK. The way in which managers of the company interact with the employees in
order to communicate the main objectives mainly impacts on the performance of the business.
Adopting the cross culture aspects of the UK is hard for the ventures who belongs to the country
like India. As people in India are more sensitive, curious, traditional and less opened to others.
On the other hand people living bin Foreign countries are generally open, approaching broad
mentality so it would be difficult for the new venture to resist such cultures of UK.
Although, working environment and approaching of the business in UK is generally
different as compared to other countries of the world (Picciotto and Mayne eds., 2016). The
concept of punctuality also differs between the cultures in an international business environment.
So this often leads to misunderstandings or negative cultural perceptions of the people living in
different countries. Also, organizational hierarchy and attitude towards the management roles
can also vary widely between different cultures of the country. Organizational structure
contributes towards the success and growth of the new venture.
Feasibility of current UK market where Online marketing verses offline marketing of new
products
Today, in this technological world people often prefer online marketing services which
allows them to easily buy the products and services in the form of online display of goods.
International business of Rahat Continental Limited have many online options to expand the
business activities and earn profitability. As setting up the offline stores in international market
have to face various legal, social and ethical issues. On the other hand online marketing is highly
approachable expansion system that deals with the variety of goods and services.
E-Commerce
This can be termed as the exchange of goods and services in an online market which
uses the technology such as email, social media platforms, electronic fund transfer which easily
allows the exchange of data between customer and supplier. It is very cost effective method
which allows the expansion of business activities in different countries of the world. Internet
provides various social media applications and web sites for the people. It is also time saving
process that saves the time of the people in consuming products and services. E-Commerce is
convenient way to choose any products via internet (Rugman and Verbeke, 2017). Various
catalogs and different options are provided to the customer which also allows consumer in
comparing the prices of the products available in different web sites. E-commerce also provides
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the geographical availability of goods and services to every person of the world. This method
of expanding the business activities allows the entrepreneurs in making huge profits and
customer relationship with customers.
Other methods of expanding business
There are various methods which the company uses to expand the business activities such
as market penetration, availability of the products via stores and shops, product expansion,
diversification and acquisition etc. growth of the business can also be achieved through the
acquisition of another existing business. Also, franchising the ownership to other entrepreneurs
is also one of the important aspect that helps in expanding the business activities. Establishing of
business agreements with other distributors may also helps in expanding the business
internationally. Public stock offering helps in collecting the fund in the form of shares between
different owners.
Different aspects of international marketing relevant to Rahat Continental Limited
The Rahat Continental Limited is planning to expand the business in UK market. So
company need to develop new strategies for the effective marketing of the new products. This
company is expanding its diversified business in the form of production clothes. So manager
need to develop a strategic management for the company. Various aspects in sustaining the
economic development of Rahat continental Ltd includes the following ways:
 Research: Company need to research about needs and requirements of the customers
which allows the organization in manufacturing the goods and services accordingly. It
helps in maintaining effective customer relationship (Correa and Yusuf eds., 2016). Thus
result in higher growth and sustainable international market in UK.
 Product localization: It is the process of adopting a product according to the local market.
As the tastes and preferences of the people in UK is different from other countries so
company need to identify the target market in order to expand the business.
 Advertisement: Promotion of goods and services leads to increase in the sales. Promotion
of goods helps in maintaining the brand image in the mind of people. So it attract them to
buy products and services. This allows Rahat continental company to easily establish the
international market.
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Determining the impact of Brexit in developing a new venture within Uk country
As the member if European union, Britain is a part of a customs and unions with other
members (Subedi, 2016). So all the tariff barriers on the trade of goods and services have been
removed. In order to create the single market, EU contributed towards minimizing the non tariff
barriers. However, At the time of Brexit, when Britain exits from EU then trade policies of the
both the countries were raised. In response to this, high duties and tax were imposed on the
export and import UK.
In this situation when UK exits from EU, it resulted in increased prices of taxes in both
the countries. So UN have imposed non tariff barriers on export of British goods. So in this
situation, when Rahat Continental Limited is establishing a new venture within Uk. The
organization finds hard to trade with other countries of UN. At this time, All the SME's of UK
had to suffer a great recession period. Various non tariff barriers were imposed on the country
which resulted in decreased profitability of all SME's including the new ventures such as Rahat
Continental Limited. Non tariff barriers includes measures like border control, country of origin
checks, differences in safety standards and threats to anti-dumping duties.
In addition to this, there is an extra duty tax and VAT cost, along with the cost of product
itself. Earlier most of the SME's generally trade goods and services from different states of
European union because no tariffs. So many new venture such as Rahat Continental Limit are
greatly influenced as they have to seek to new suppliers from within UK in order to reduce the
costing of the goods. The reality with the new venture and small business is that the business
which posses healthy growth and high profits will not have any issues in paying increased taxes
(Young, 2016). However, businesses which are newly developed and those who makes less
consistent profits could not be able to be such high taxes and ultimately, growth and sustainable
development of the Rahat Ltd will be restricted.
CONCLUSION
From the above study, Growth and sustainability of the international business is depends
on various key drivers and consideration of these key drivers helps expansion of the business
activities affectively. This study has also provided discussion about trade policies of the UK
market that impacts on the profitability of the Rahat Continental new venture. Also, the
significance of various challenges has been identified that impacts on the success and growth of
internationally diversified new venture.
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The report has provided different marketing options such as Online and offline which
contributes towards the successful growth of international trade market. Social, ethical and legal
aspects of the country has been analysed in which this organisation is expanding the business. In
addition to this, innovative products and services has been established in order to address the
internation marketing needs of the business.
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REFERENCES
Books and Journals
Correa, C.M. and Yusuf, A. eds., 2016. Intellectual property and international trade: the TRIPs
agreement. Alphen aan den Rijn: Wolters Kluwer.
Cottier, T., 2015. The common law of international trade and the future of the World Trade
Organization.
Cullet, P., 2017. Differential treatment in international environmental law. Routledge.
De Padirac, B., 2018. The international dimensions of cyberspace law. Routledge.
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.
Matsushita, M. and Schoenbaum, T.J. eds., 2016. Emerging issues in sustainable development:
international trade law and policy relating to natural resources, energy, and the
environment. Springer.
Meyer, K. and Peng, M.W., 2016. International business. Cengage Learning.
Park, D.Y. ed., 2016. Legal issues on climate change and international trade law. Springer.
Picciotto, S. and Mayne, R. eds., 2016. Regulating international business: beyond
liberalization. Springer.
Rugman, A. and Verbeke, A., 2017. Global corporate strategy and trade policy. Routledge.
Subedi, S.P., 2016. International investment law: reconciling policy and principle. Bloomsbury
Publishing.
Young, M.A., 2016. International trade law compatibility of market-related measures to combat
illegal, unreported and unregulated (IUU) fishing. Marine Policy. 69. pp.209-219.
Online
Ethical, Social and Legal aspects of International Business. 2017. [Online]. Available
through:<https://www.researchgate.net/publication/228243244_Legal_Ethics_Business_Ethics_a
nd_International_Trade_Some_Neglected_Issues>
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