International Business: Rahat Continental Limited's UK Venture Plan

This report provides a comprehensive analysis of Rahat Continental Limited's proposed international business venture in the United Kingdom, focusing on establishing an e-commerce platform for infant cotton wear. It begins with a detailed strategy proposal, emphasizing market research and clear objectives, including cost-effectiveness and competitive positioning. The report then examines key business drivers for expansion, such as local business conditions and organizational structure, alongside potential barriers to trade and protectionist policies. Ethical, social, and legal considerations are addressed, including fair labor practices and adherence to UK equality laws. Cross-cultural issues relevant to the venture are also explored, followed by an assessment of the feasibility of the e-commerce model compared to other expansion methods. International marketing aspects are discussed, and the potential impact of Brexit on the venture is evaluated, providing a well-rounded perspective for Rahat Continental Limited's strategic decision-making. This document is available on Desklib, a platform offering a wide range of study resources for students.

International Business
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Table of Contents
Introduction...........................................................................................................................................3
1. A detailed strategy proposal based on extensive and relevant market research supported by key
facts and figures.....................................................................................................................................4
2. Researchers on...................................................................................................................................7
a. Key business drivers behind company’s expansion into the UK....................................................7
b. Important barriers to trade and protectionist policies that can hamper the new venture.................8
c. Ethical, social and legal issues that need to be taken into account.................................................9
d. Cross-cultural issues those are relevant to the proposed venture.................................................10
3. The feasibility of the proposed venture............................................................................................12
a. e-commerce option versus other methods of expansion...............................................................12
b. Aspects of international marketing relevant to the proposed venture...........................................13
c. The potential impact of Brexit on the venture..............................................................................14
Conclusion...........................................................................................................................................16
References...........................................................................................................................................17
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Introduction
Rahat Continental Limited is an Indian based organisation that wants to open its new business
venture in the United Kingdom. This company wants to open an E-Commerce platform by
which this company will sell cotton wear for the infants. For this International venture this
report is written. In this report firstly strategy proposal is made that would help this
organisation in making different strategies to fulfil its International expansion goal , after that
there is the discussion of different factors that can help in expanding the business of Rahat
Continental Limited in the United Kingdom. There are different trade barriers is discussed in
this report for the formation of new venture in the United Kingdom. There are different issues
like ethical issues social issues and cross-culture issue is also the problem that new
organisation faces in the new country. All such issues ours understood in this report, the
advantages of e-commerce platform Over The Other business method is described in this
report. After that Rahat Continental Limited can make international marketing strategy for
the expansion of its business internationally is investigated in the support. Finally the
potential impact of Brexit on this new venture is determined in this report
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1. A detailed strategy proposal based on extensive and relevant market research
supported by key facts and figures.
Rahat Continental Limited before beginning the process of research is required to have an
effective strategy proposal so as to ensure that all the activities related to the process of
research are conducted in proper sequence and without any barrier. This will ensure that the
concerned company can get the desired outcome and thereby can make effective decisions in
relation to its operations and functions. For the purpose Rahat Continental Limited can
follow the given strategy proposal that can support the concerned company in having a proper
overview of all the aspects that can support in an effective conduct of the process of research:
Background
The first requirement in the process of
research that is required to be understood by
the Rahat Continental Limited is to have
clear and sufficient knowledge about its
current operations and position so that the
further activities in the process of research
can be conducted effectively. Apart, the
company while understanding its current
operations must focus on all the aspects that
have led to the changes in the normal
functioning of the concerned company.
Goal
The goals of the company must be clear and
properly communicated to all the staff
members’ and employees so as to avoid any
sort of confusion in the working criteria of the
company (Lawlor & Hornyak, 2013). The
following goals are required to be observed by
the authorities of Rahat Continental Limited:
 The cost-effective strategy must be
adopted.
 Developing a strong market position.
 Facing the level of competition in an
effective manner.
 An expertise facility is required to be
provided to satisfy the needs of the clients in
an effective manner.
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Figure 1: Cost-effective strategy
Source: (Tuto2u, 2015)
Root Cause Analysis
Rahat Continental Limited must in relation
to the implementation of the plan also focus
on the new platform or opportunities that
can be earned so as to boost the functions of
the company. For the purpose, the company
is required to have proper evaluation
through which it can explore its current as
well as a new business sector (Karel, et. Al.,
2013).
Follow-on- strategy
Since Rahat Continental Limited is planning
to have more focus on the set-up of the e-
commerce platform. For the purpose, the
company is required to have a continuous up
gradation of the strategies so that the activities
related to the expansion can be managed
effectively (Rastislav & Silvia, 2015).
Current condition
While the formulation of the strategy it is
essential that the Rahat Continental Limited
focus on the current needs and changes that
are being observed in the environment so
Implementation of plan
The strategy when formulated is then required
to be implemented by the authorities of the
Rahat Continental Limited so that the results
or outcomes can be obtained. For the purpose
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that any changes that are requiring key focus
and attention is also included in the strategy
formulation for effective and efficient
results.
it is essential that the authorities focus on all
the aspects and issues that can cause hindrance
in the implementation of the plan so as to have
proper operations and working (Karel, et. al.,
2013) Apart, the plan should be implemented
in systematic steps so as to ensure smooth
operations.
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2. Researchers on
a. Key business drivers behind company’s expansion into the UK
The different key business drivers for the expansion of Rahat Continental Limited would be
as follows
Consideration of local situation
The local business situation of the United Kingdom would be considered for the expansion of
business of this organisation in the United Kingdom. The ease of doing business in the United
Kingdom is good therefore the expansion of the Rahat Continental Limited in the United
Kingdom would be easy (Kumar, et. al., 2012). This would help in accomplishing to form E-
Commerce platform for the selling of cotton wear for the Infant babies.
Organisational structure
After considering local situation organisational structure is analysed. It is also analysing to
that in the United Kingdom economy this organisational structure would be fruitful or not.
After that, there would be the analysis that this company would have centralised headquarter
or decentralized headquarter in the United Kingdom (Twarowska & Kąkol, 2013).
Risk management
Lack of legal compliance would be the situation with the Rahat Continental Limited in the
United Kingdom. The risk would be a return on investment. This company would invest in
the United Kingdom but if a return on the investment would be less than the situation would
not be fruitful for the organisation expansion internationally.
Personal resources
Rahat Continental Limited would require skilled staff to work for the organisation that would
help in the easy expansion of this company. The functioning and the working of the
expansion would be fast because of these are killed persons of the organisation (Twarowska
& Kąkol, 2013).
Financial resources
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Rahat Continental Limited is not having equity capital. Therefore the methods of gaining
high equity would be evolved by Rahat Continental Limited that would help them Business
expansion. Loan from the different financial institution should be analysed and after that, the
institution which is giving financial Loan at very low-interest rate would be chosen (Kumar,
et. al., 2012).
b. Important barriers to trade and protectionist policies that can hamper the new
venture
Protectionism is the economic policy that used to be implemented by the government of
different nations that used to restrict the import from the other countries. Protectionist
policies used to protectionist policies used to Shield the businesses that are involved in the
import-competing sector. There can be different international trade barriers that can be in the
path of Rahat Continental Limited in the United Kingdom (Chang, et. al., 2013).
Protection of sunrise industries
In the United Kingdom protection is given to the industries that are Infant and that are
involved in the practice of new technologies. Therefore there is the risk of business farming
for the Rahat Continental Limited as Rahat Continental Limited is not involved in new
technologies practices.
Protection of Sunset industries
The industries which are in the declining position are protected by the policies in the United
Kingdom. The more protection is given to the companies that are the United Kingdom based.
Therefore there is the risk for this company to form new business here.
Unfair competition
They can be unfair competition with this company in the United Kingdom because of selling
of the same product which this company is already selling at prices which are below the cost
of the product. This would affect the business of the Rahat Continental Limited (Chang, et.
al., 2013).
Environmental issues
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United Kingdom government is very much concerned about the environmental pollution that
is caused by industries. there for this company have to take a certificate that would help in
making the government body in satisfaction that this company not involved in that practices
which creates environmental pollution. This company has to prove its functioning and
working is sustainable.
c. Ethical, social and legal issues that need to be taken into account
There can be a different type of issues that can be on the path of Rahat Continental Limited
like ethical legal and social issues
Ethical issues
The working environment would be provided to the Employees in the Ambience manner that
would help all the employees to work in a friendly manner for the Rahat Continental Limited.
Providing equal wages to all of the employees of the organisation would be the ethical
consideration by the Rahat Continental Limited. If there is discrimination in providing the
wages to the Employees then the ethical behaviour of the organisation would be affected.
This would affect the overall organisational behaviour of the Rahat Continental Limited. This
company is forming the new business in the United Kingdom, therefore, there would be more
fund in the hands of the employee of the organisation. Therefore there are great chances of
corruption that can be done by the employees of the organisation. It is very necessary that this
company should implement the policies in such a way that no corruption can be done. The
auditing should be done for the good financial records of the organisation. In this way, the
ethical issues can be overcome and the formation of the business in the United Kingdom by
this company would be done (Zadek, 2013).
Legal issues
The employment chances should be given equally to all of the Aspiring candidates that want
to job for this organisation. There should be followed by the equality act 2010 in this
organisation that would help in not following the discrimination in the organisation. There is
the discrimination that used to be on the basis of race, ethnicity etc. with the implementation
of this law there would not be any discrimination among the employees of the organisation in
the organisational context. HR of the Rahat Continental Limited should also analyse that all
the safety laws are being followed in the organisation or not. It can also be analysed that all
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the salary guidelines by the government are followed by the Rahat Continental Limited or not
(Policy, et. al., 2012).
Social issues
This company can face social issues. In the starting, there can be the nonacceptance of the
product that is being manufactured by this company in the United Kingdom. It is the
marketing that would be required for the acceptance of product of Rahat Continental Limited
in the United Kingdom.
The product should be manufactured in such a way that would not affect the personal issues
of the particular person or the community. If the particular community or the person is
affected by the product that is being manufactured by Rahat Continental Limited then
negative marketing of the particular product and this company would be the situation. This
situation would greatly affect the overall image of Rahat Continental Limited. This is the
social issue that can be the scenario with the Rahat Continental Limited (Zadek, 2013).
d. Cross-cultural issues those are relevant to the proposed venture
Rahat Continental Limited is Indian based company, while the United Kingdom is having the
different culture from India. The team from India would also be involved in the working and
functioning of this organisation. Therefore there would be the cultural Indifference that
would be created between the different employees. This can result in the issues among the
employees because of the cultural Indifference. It is very necessary to implement the
practices that would help in no situation of the following of cultural issues in the organisation
(Stahl & Tung, 2015).
As the business would be E-Commerce based business, therefore, there would be the
situation in which some post in the mobile application of the Rahat Continental Limited can
affect the personal interest of the community of the United Kingdom. Therefore it is the need
in the United Kingdom that Rahat Continental Limited should make each and every step very
attentively.
Rahat Continental Limited contains the top management from the Indian community. The
Other employees that would be included in this organisation would be from the United
Kingdom community. In the situation, there is the need of following the practices that would
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not affect the interest of the United Kingdom community employees in the organisation.
Also, there is the need for following the Policy which empowers no discrimination in the new
business venture (Stahl & Tung, 2015).
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3. The feasibility of the proposed venture
a. E-commerce option versus other methods of expansion
Overcome geographical limitations
There would not be any limitation of setting up the retail store to sale the organic cotton wear
for the small kids that are aged from 1 to 2. In The E-Commerce platform, the selling of such
cotton wear would be very easy. If the new business used to be set up in any country then that
business used to sell the product in the main cities. But with the help of e-commerce Rahat
Continental Limited can sell its cotton wear in different parts of the United Kingdom.
An easy way to find customer
The targeting of the customers can be very easy with the help of E-Commerce platform as it
can be analysed that which people are searching the product of cotton wear for infant babies
on the browser. There can be the popup notification on the particular sites on which the
customers used to visit. The link to the E-Commerce platform of Rahat Continental Limited
would be present on such websites. In this way targeting the customer would be made easy
with the help of e-commerce platform (Savrul, et. al., 2014).
Lower cost
Investment cost in The E-Commerce platform is very low as compared to open a retail store.
Opening a retail store in the United Kingdom is very costly while this company has to open
many stores in the United Kingdom for selling the product in the United Kingdom. Therefore
e-commerce platform opening and expanding the business is not a bad deal that has been
taken into consideration by the Rahat Continental Limited (Yu, et. al., 2014).
Transportation cost
There is the huge transportation cost incurred in sending a large number of products at the
retail stores. Descending of cotton wear by Rahat Continental from the courier service would
be easy as compared to sending it to the retail store in masses.
Market segmentation
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