International Business Environment: ASDA's Expansion Report

This report examines the international business environment, focusing on ASDA's expansion strategies. It begins with an introduction to internationalisation and its significance. The main body delves into various internationalisation methods, including exporting, licensing, franchising, and joint ventures, providing a critical evaluation of each. The report explores the benefits of internationalisation, such as employee development, growth, resource acquisition, and idea generation. It discusses how emerging markets can maximize success and minimize risks through economic, network, and process perspectives. Furthermore, it considers the impact of macro-environmental factors like legal, economic, and technological influences. The report concludes by emphasizing the importance of human resource strategies in supporting international business objectives. The report offers a comprehensive analysis of ASDA's approach to international business, providing valuable insights into market entry strategies and the challenges and opportunities of operating in a globalized environment.

INTERNATIONAL
BUSINESS ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Internationalisation and its methods along with their critical evaluation...........................1
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Internationalisation is a set of operations that allows establishment of line between
business and international market. This will be always through a long process of increasing
international involvement and projections. (Alcácer, Cantwell and Piscitello, 2016). In this report
will be focused on expanding the operation in large emerging markets to improve the chance of
success into new markets. This report is based on ASDA which is basically located in the United
Kingdom. It provides different services in food business and retail sector. Further, report will
cover global environment surrounding them that provides business opportunities abroad thich
they can exploit with having , merous advantages.
MAIN BODY
1. Internationalisation and its methods along with their critical evaluation
Internationalisation is a process through which organisation is extends their activity's
form the local border and link with international market. In this context, such opening up can
develop with different kinds of method of internationalisation. All such kind of activity is
depended on organisation’s capability and resources (Brannen, Piekkari and Tietze, 2017).
Organisation’s resources are one of the most important part at the time to expand into new
emerging market. On the other hand, planning helps in implementation of product and services
into new market, understand local language and adopt culture. All such activity is called
localization, which is help set about and control that it wants to have. There are many reasons to
go international, but overall expansion activity will depend on the aims and objective of the
organisation. In this way, organisation growth and expand its business, whether company search
for new market or hire international employees.
Benefit of internationalisation Employees: In this context, every organisation wants to well trained and skilled
employees. So organisation goes to international level to find alternative sources of
labour and to look for low cost manufacturing, technology and the other factor is helping
to improve competitive environment. Growth: Each and every organisation want to grow in business and launching product in
the international market. This will be improved level of customer and acquiring more
market share to become leader.
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 Resources: There are lot many organisations go for collecting more suitable resources
for retail sector available in the international market. In this way, resources are available
in better at international country as compared to domestic country.
 Idea: The Organisation will go international level to collect different ideas from different
culture of different countries (Cavusgil and et.al., 2014). There are major changes will be
made with the help of different ideas in market place.
Internationalisation plays a most important role in each and every business nowadays. There are
some major change can adopt with the help of different method to operate or expand business
aboard.
Methods of internationalisation
Exporting
A business that sell their goods and services in different countries. In addition, exporting
them and producing them to one country and exporting them to other countries (Cumming and
Zahra, 2016). There is one of the most important parts of internationalisation business. It is one
way, that organisation is expanding their own market between one place to another place. There
are different types of export services is to be provided by the organisation are direct export and
indirect export. Indirect exporting: Indirect exporting selling to a good who directly sell to the customer
or importing whole-seller. On the other hand, some different product hose is play a most
important role in such kind of activity at the time of domestic organisation sells goods
outside environment. There are main advantages of such indirect exporting factor is no
additional cost will be incurred and other side negative impact is no control all over the
local marketing activities.
 Direct exporting:Direct exporting is based on selling and distributing its own product to
the foreign market. It will be based on long term partnership with a particular foreign
country with a number of products. With the help of market research will be focused on
pricing and culture factors to identify particular market. Both the country's are playing
more important role in respected filed in market share (Forsgren and Johanson, 2014).
This kind of direct exporting has been encouragement in and export processing zone of
different countries. In addition, direct exporting will be based on geographical area within
a country that is providing proper economic condition of particular countries. To be
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focused on successful large emerging markets are India, China, etc. ASDA organisation
was to be focused on the Indian market at the time of exporting retail sector.
There are some advantages and disadvantages of exporting method which are as follows:
The export - import market is one of the most important methods of internationalisation
and help to improve current different level of international market. As per the view of Alcácer,
Cantwell and Piscitello, (2016) cost of host countries is to be reduced and identify the new
location of economic condition must be found out in the international market. According to
Brannen, Piekkari and Tietze, (2017) some time high exporting cost will give some negative
impact on the overall working environment and host country handles local level of the market
place. To be overcome, such kind of activity in economic, firms may be set up whole local
market and identify those factor improve market share.
Licensing
It will improve overall market share as well as future conditions based on agreement of
host country and home country (Forsgren, Holm and Johanson, 2015). There are some different
kinds of strategies must be adopted as per the changes in the current market opening. This is
related to trademark and copyright information about good and services related to future
conditions must be changed for it.
As per the view of Cavusgil and et.al., (2014) does not have any bear cost and less risk
will be there in licensing. There is to be having some positive impact on the overall market share
as well as condition must be improve of international market. There are some changes is made
for improvement must be developed for the increasing market environment. According to
Cumming and Zahra, (2016) joint venture and other factors help to improve internal market
share. As per the view of Forsgren and Johanson, (2014) different technology help to improve
future change in internationalisation. On the other hand, it is not easy to coordinate various types
of strategies with different countries in market place. There are no tight control on
manufacturing, marketing, finance and strategies that help to change economic conditions of
different countries. According to Forsgren and Johanson, (2014) different countries use different
kind of technology, which gives overall impact licensing policy and other factors. In addition,
technology not related to need of customer in the market. There are many kinds of technology
must be used for it.
Franchising
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In this context, franchiser focuses on different aspects of doing business in new location
as per the need of market share. They are set rules and regulation for international business.
There are different methods used in retail sector like internal design, staff member training,
supply chain management, location etc. All such factors are helping to manage work as well as
future performance must be changed for it. On the other hand, financial performance and internal
management training guide them to manage work inside the organisation. They are build and
improve current market as well as build profit operation management are hands on franchiser
(Kolk, 2016).
With the help of international marketing training provided to employees changes the level
of conditions in market place. The development of different methods and strategies, can
effectively expand business into new international market and increase profitability. ASDA
organisation is wide range of chain all overall the world, but, now expand it emerging market to
increase success and reduce risk. This is the advantage of global marketplace and build
implication of market. Franchising focus on over expansion, but is less expensive and local
culture helps to improve market share.
Joint venture
In this context, joint venture is creating new identity, in which both the partners play
important role and make some new decision in international market place. Some changes will be
made with the help of future portfolio. To share and lower the cost of high risk and development
of technological factor. In addition, to gain economic of scale and value added services
(.Kostova and Hult, 2016). To be focus on partner technology must be used and secure the
position of market environment. In this way, create more effective future policy and focus on
different competition in such industry.
There are all such activity is micro environmental factors, which is giving some positive
and negative impact on the overall working geographical area. It will manage growth rate and
improvement related to future conditions in market share.
The way emerging markets maximize success and minimise risks
There are some different kinds of prospective which will help to increase strategies
management and improve internationalisation market.
Economic prospective: This kind of prospective focuses on international process, which
is based on two most important factors like cost and environment factor. This to be focused on
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foreign direct investment as a means of internationalisation policy must be improved for it. This
will be increased current as well as future conditions must be changed for long time period. Cost
is one of the most important factor at the time to enter into new markets, help to maintain over
time deal with organisation factors.
Network prospective: In this context, network established with different international
companies, increases information about internationalisation. All such kind of information helps
to take new decision in organisation as well as improve profitability (Luthans and Doh, 2018).
This kind of network facility will be focus on social network functions are developed for it.
There will be help to determine the organisation place at international level and more or less
information and opportunities must be access for that in work place.
Process prospective: The prospective refer to the internal business process, is focus on
how well condition, business will be run in market place. In addition, product and services are
based on customer prospective. (Young and Ghoshal, 2016). In this context, process will be
based on some unique factor and development of overall market.
To reduce the level of risks and increase the level of success some factors must be
improved for internal as well as external environment. Moreover, some time macro environment
is effect the time of internationalisation are as follows:
Legal factor: There are legal factors is play most important part at the time of expansion
into international market. In addition, both the countries have different rules and regulations
which affects overall working environment (Meyer and Peng, 2016). Government department is
alteration rules as per the happening economic conditions of countries. This gives negative
impact on profitability and productivity on international market trends.
Economic factor: In this context, economic factor is to focus on change in different types
of rates in environment. This gives a direct impact on environment as well as changes interest
rate, foreign direct tax rate, inflation rate etc. Macro environment deals with management and
demand of the given economy of country.
Technological factor: Technology is a means which can be adopt form the envrionment
and help to improve current market share. This will be help in two different factors of
organisation are product and process. In such kind of factors technology will be used to solve
any kind of problem on it.
Human resource strategies
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Human resource strategies is designing a long term plan and achieving objective of
organisation. In the filed of human capital management development of overall organisation and
improvement of future changes on it. Moreover, human resource management is make some
new policy will also play a most important role and reduce risk as well as help to expansion
activity's. This is the only department which focuses on internal environment and selects right
candidate at the right time and right place. It is strategies used by organisation and improve
current as well as future performance must be change for it. These issues can be depicted as
underneath - Social decent variety – The significant issue looked by HR experts is to comprehend and
keep up social assorted variety. It is because of the reason that there are individuals from
various nation, area or social foundation (Morschett, Schramm-Klein and Zentes, 2015).
It is vital for ASDA’s HR experts to comprehend and keep up culture assorted variety
inside the organization. Consistence with universal laws - When an association or business extends itself all-
inclusive it needs to contract workers from different areas and social foundations, for this
reason they have to receive new representative laws and arrangements. For instance – If
ASDA grow its business in India, it needs to consider laws related to representatives as
forced in that specific nation. This is an issue as associations needs to adjust its strategies
and laws.
Marketing strategies Neglecting the Critics - Incredible idea routinely get awful confinement from reasonable
identities. The ASDA believes in their musings and headway. All-inclusive community
judge brand in various negative ways still they make things ignoring savants or cost.
(Neelankavil, 2015). The Retail sector will be focus on recognize the eatery. On the
other hand, ASDA is exhibiting their creative things in every country to increase their
business focus. Upholding the cost – ASDA bases on idea of Retail to meet and legitimize its cost. In
UK people are more fiscally stable appeared differently in relation to the all-inclusive
community in INDIA. Brand considering this enhanced eatery which can satisfy
customers in both countries by making and esteeming things as requirements be.
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 Passing on in the tongue of the customers or social affair of individuals –Marketing
strategies makes a brand show and present consequences of a relationship to customers.
Correspondence between customers and association ought to be ground-breaking. ASDA
arrangement with this segment, advancing practices, for instance, promotion are made by
business focus and vernacular used as a piece of that particular market or zone. These
practices will be done some other path in the INDIA (Sassen, 2016). ASDA Retail is
viable in vernaculars of both countries, with objective that customers can understand and
perceive eatery and its features. This causes in getting related with all-inclusive
community and draw them to buy things. Extending the experience – In this context, another promoting philosophy of ASDA for
their Retail is to offer a point by point comprehension of eatery by giving hands-on and
restricted time practices for overall public helping them to contact and experience eatery
without paying anything. One size doesn't fit all consolidate adjacent flavour - Association continually get
strategies will achieve the customer needs and needs. In addition, another essential focal
point of affiliation is to achieve destinations and allies advance designs. This approach
gets customer conviction it in like way needs to make powerful inconveniences for
contenders. Close-by that, another basic strategy of connection is to see customer needs.
On the other hand, change in size as per the location is to be changed in market sector.
 Welcome the social separation : ASDA retail needs to take a gander at the market culture
to make productive publicizing techniques. There will be based on each and every social
factor, which is to be give positive impact on overall market sector and change conditions
of international market.
The worldwide or general market comprises a broad assortment of things and
organizations, affiliations exhibit innovative things or organizations to achieve high grounds in
overall market (Young and Ghoshal, 2016). ASDA Retail needs to complete certain approach
and frameworks remembering true objective to recognize business condition or financial
circumstances to develop the best movement plan while entering inside overall market.
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CONCLUSION
As per the above report, it can be concluded that internationalisation plays an important
role in retail sector. There will be lot may different activity must be used at the time of expansion
in international level. Form the above research report will be find out reasons to go international,
overall expansion activity and improves aims and objective of organisation. In this way,
organisation grow and expand its business whether company search for new market or hire
international employees. As per the above report is concealed that overall development of
internal and external department with the help of different factors. Is has also been assessed that
operation management are hand on franchiser. With the help of international marketing, training
provided to employees changes the level of conditions in market place. As ther, it can be
articulated that some different methods must be used to solve any kind of international business
activity and reduce negative impact of market environment.
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REFERENCES
Books and Journals
Alcácer, J., Cantwell, J. and Piscitello, L., 2016. Internationalization in the information age: A
new era for places, firms, and international business networks?.
Brannen, M.Y., Piekkari, R. and Tietze, S., 2017. The multifaceted role of language in
international business: Unpacking the forms, functions and features of a critical challenge
to MNC theory and performance. In Language in International Business (pp. 139-162).
Palgrave Macmillan, Cham.
Cavusgil and et.al., 2014. International business. Pearson Australia.
Cumming, D.J. and Zahra, S.A., 2016. International business and entrepreneurship implications
of Brexit. British Journal of Management, 27(4), pp.687-692.
Forsgren, M. and Johanson, J., 2014. Managing networks in international business. Routledge.
Forsgren, M., Holm, U. and Johanson, J., 2015. Knowledge, Networks and Power—The Uppsala
School of International Business. In Knowledge, Networks and Power (pp. 3-38).
Palgrave Macmillan, London.
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.
Kostova, T. and Hult, G.T.M., 2016. Meyer and Peng’s 2005 article as a foundation for an
expanded and refined international business research agenda: Context, organizations, and
theories. Journal of International Business Studies, 47(1), pp.23-32.
Luthans, F. and Doh, J.P., 2018. International management: Culture, strategy, and behavior.
McGraw-Hill.
Meyer, K. and Peng, M.W., 2016. International business. Cengage Learning.
Morschett, D., Schramm-Klein, H. and Zentes, J., 2015. Strategic international management (pp.
978-3658078836). Springer.
Neelankavil, J.P., 2015. International business research. Routledge.
Sassen, S., 2016. The Global City: Strategic Site, New Frontier. In Managing Urban
Futures (pp. 89-104). Routledge.
Shenkar, O., Luo, Y. and Chi, T., 2014. International business. Routledge.
Young, C. and Ghoshal, S., 2016. Organization theory and the multinational corporation.
Springer.
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