Internationalization of Empiric Company: A Detailed Analysis Report

This report provides a comprehensive analysis of Empiric Company's internationalization strategy. The report begins with an introduction to the concept of internationalization and its significance in business expansion, followed by a background of Empiric Company, a recruitment agency specializing in cloud, data, and digital technologies. The report then examines the company's choice of destination countries, specifically the United States and Europe, and analyzes the rationale behind these choices, considering factors such as market size, economic conditions, and political systems. The report delves into the adopted entry mode, highlighting the company's use of direct exporting and its advantages. Furthermore, the report identifies and discusses specific issues affecting Empiric's internationalization, such as the challenges related to market analysis and the analysis of the business norms in the US. The report incorporates relevant theories of internationalization to support its analysis and concludes with an evaluation of the success of Empiric's internationalization efforts.

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Contents
Introduction......................................................................................................................................3
Background of the company............................................................................................................3
The company’s choice of destination country.................................................................................3
Adopted entry mode........................................................................................................................4
Specific issues affecting internationalization..................................................................................5
Theory of internationalization.........................................................................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

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Introduction
Internationalization is the major concept of the business to expand its operation inthe future.
From the economic point of view, it is the process through which business gets more involved in
the international markets (Oparaocha, 2015). Internationalization allows companies to operate its
business in a foreign market besides the domestic markets. This amendment develops new
opportunities for the business. The correct entry mode and effective positioning strategy
facilitate in following in this confronts. However, there are number of companies that pursue
internationalization because domestic markets have grown in an inadequate manner. The reason
behind this is the lack of economic scales and number of developments, which are accessible in
the foreign markets.
The assignment is focused on elaborating the entry mode of the company for which the small and
medium enterprise will be taken. "Empiric Company” will be taken for this assignment in order
to define the specific issues related to internationalization. SME companies have to face number
of issues at the time of enlargement. The discussion regarding the issues in the context of chosen
company will be taken in order to elaborate difficulties to reach at international level by the
company.
Background of the company
Empiric is one of the major fastest growing technologies and revolution recruitment agency’s
specializing in cloud, data and digital. The company was founded in 2005, and in 2009 the
company was ranked at 3rd position by The Sunday Times Fast Track 100 by Virgin in the UK.
The company put lots of effort into making things adequately in which the company provides

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services related to recruitment to those businesses that are looking for both contract and
permanent professionals. There are 250 employees in the company who work under specific
hierarchy organizational structure (Empiric, e.d.). It has been found that the company is being
selected for best small employer at the NORA Awards in 2014. In 2018, the company got
awarded 2 Star best companies.
The company’s choice of destination country
Empiric Company hasexpanded its business in the United States and Europeso that they can
provide technology staffing services to the people of both countries. Due to its expansion the
company is able to stand with its competitors on the international level.The company was
founded in 2005 and after Brexit, the operation of the business is still carrying on in Europe’s
different places. In the context of Europe’s politics, the dealing power of Europe is great with
constantly evolving politics. The current politics of Europe can be observed back to historical
events within Europe. The economy condition of Europe is huge at present and it is considered
as the richest region in the form of assets. There are five countries in Europe that have ranked on
the fifth position in GDP. In Europe, the company has offices in Sweden, Hungary and Norway.
The company has expanded its operation in the United States as well and in the context of this
country, it has been found that the scope of the business in the US is huge. The GDP of the USA
is around $16.760 trillion that is largest economy in the world. It is the country that has been
leading in adapting the latest technology (Empiric, e.d). The politic system of USA is remarkable
due to an effective democratic setup. An outstanding position of USA can lead Empiric to get
outstanding growth in the future. The office of the USA of the company is situated in New York.
The company has effectively focused on the client base in the US community that cover starts-up

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and works with latest businesses from born stage to series i.e. A, B and C funding (Empiric,
e.d.).
Adopted entry mode
There are various entry modes from which the company expand its business in an efficient
manner. These are exporting, licensing, franchising, turnkey projects, joint venture, strategic
alliances and Partnership. In the context of the company, it has been found that the company has
adopted an Exporting entry mode to expand its business. Exporting is the method that entails two
types of exporting such as direct and indirect exports method. The direct export method in the
form of entry mode has been adopted by the company to expand its business in an adequate
manner.
Empiric has adopted this entry mode becausedirect exports show the fundamental modeof
exporting made by the company and capitalizing on economies scale in development that
keepsfocus on the home country and handling better control over the part of distribution Marano,
Tallman and Teegen, 2017). The company has adopted this mode because direct export works
outstanding if the volumes are small. The main advantages of adopting this method are that there
is no scope for intermediaries.
The main focus of the company is on the USA for which the company has adopted direct export
entry mode. The office of Empiric has located in New York that has main attention on placing
high professionals in the specific market such as Data Science & Analytics market. Along with
that, the company is direct exporting its services into most innovative businesses and projects
across the place of North America. With the help of this entry mode, Empiric is able to control
over selection of international markets and provide effective protection of patents, goodwilland

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others. Due to not involvement of any intermediaries in the entry mode, the company has made the
team that is having specializations in networking and headhunting within the Data Science
community. The main target of the company is on hiring an employee with an outstanding level of
education from tech universities (Schwens, et. al., 2018).
The branches of Empiric Company providemore presence in the world and program control in the
foreign market. It has been found that the client base of the company is widely diverse as data
science and big data are at the front of each industry in the world (Schippling, Zimmermann and
Schmidt, 2018). The company is not taking help of any intermediary as it works with huge
finance, healthcare, tech, media and consulting giants in the US, along with small-medium size
enterprise.
This kind of attitude of the company provides opportunity for candidates to own component of the
business. The clients of the company work on motivating and exciting projects related to the
technology as direct exporting mode of entry helps the company to keep a lot of control over how
the service is positioned. With the help of the direct exporting entry mode, the company is able to
attain the long term growth in the international market (Oviatt and McDougall‐Covin, 2015).
Specific issues affecting internationalization
Internationalization is the process that aids companies to do business at an international level.
There isa number of issues come at the time of expanding the operation of the business in which
one of them is the decision making and planning (Zahra and George, 2017). It is necessary for the
company to keep the focus on the planning of expansion. For the successful strategy of
internationalization, it is required by the company to have enough knowledge regarding the

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presentsituation of the company along with the situation in the market. The discussion regarding
two specific issues related to internationalization is mentioned below:
Analyzation
Internationalization of the company can be considered as the process that helps the company to run
their business in the market of foreign besides the domestic markets. Analyzation is a major
challenge on the way of internationalization (Conconi, Sapir and Zanardi, 2016). It is required by
the company to keep the focus on the attractiveness of the target market. The market attractiveness
relies on different factors such as growth potential, size of the market and risk at the operational
level. The role of the political and economic condition is huge in affecting the whole market, for
which the company analysis are required to go through the condition of the company in the form of
strengths and weaknesses (Eriksson, Johanson, Majkgård and Sharma, 2015).
Empiric Company operates its business in New York, US but it can be assumed that the company
has faced political and economical challenges in the US to expand the business. The policies in the
US regarding keeping the data of the employee and handling the operation are entirely different
from the UK. It is never easy to fire people in a one go but in the norms of the US; there are few
employees that are having employment contracts (Lee, Kelley, Lee and Lee, 2012). With fewer
expectations, it has been allowed to employers as per state law to terminate an employee, in case of
any issues with the employee within the business. The economic and business policies of the US
are entirely different from the home country (Bergsten, 2017). The main motive of the company is
to delivering talent to the right place at right time. The motive of the company can be influenced
due to different business policies of the US. The Analyzation of the company keeps significant

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value in this situation because it helps company to keep focus on such strategic decisions which
has been taken at the time of internationalization.
The company had to face challenges in making better understanding regarding norms of different
companies for which the team over there should be trained. Trained team are able to go through all
requirements and hire people accordingly. The hiring procedure for USA employees is entirely
dissimilar from UKwhich should have considered by the company. There are three steps in hiring
process in USA Companies that are an interview, background investigation and drug test. Failure
in one of them is not allowed Empiric to give talented employees to the selected companies. Along
with, the company has to deal with a number of technical and digital companies in order to give
them talent for vacant designation. It is the biggest responsibility for Empiric Company to evaluate
each factor of the employee related to background, drug-related information and experience in
different companies. This is the major issue whichaffects the internationalization process of the
company.
The company’s work is categorized into three aspects such as Data, Digital and Cloud. With
respect to data aspect, the company provides the solution of data staffing to meet the needs of the
data business. In the context of the digital aspect, it has been reviewed that the company is capable
enough in supplying tech talent across the digital eco system. The company is interconnected with
their employees who are working in a different nation with the help of latest technology. The
company has invested in a huge way in tech community which is able to present talented cloud
regarding tech professionals (Vahlne and Johanson, 2017).The Empiric can expand its business in
different states of USA after making satisfy the companies that are in the contract with. Along with
that, the weaknesses of the company are the issues in internationalization. It has been analyzed that
the company has various weaknesses such as hard and fast concept to provide talent to the selected

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companies, number of competitors in a different country and fewer employees to handle large task.
The company needs to focus on the expansion of the employees in order to handle the task at an
international level.
There is another challenge under Analyzation, which is a successful positioning strategy. The
company has to face confronts in the context of setting the customer segments. The positioning
strategy is crucial for the business in order to enlarge its business at an international level. The role
of the positioning strategy in the market keeps significant value as it helps in making an image of
the services in the mind of the customer (Friedman, 2017). Empiric has developed good image in
the mind of customers regarding company’s services with taking help of promotion. Along with
that, the company has mentioned all details regarding their services andaward-winning strategy so
that the skills and talent can get attracted towards it.
Market risks and entry barriers
Market risks and entry barriers are anotherchallenges for internationalization. The categorization of
the market risks iseconomical, political and operational risks. Unsteadiness in the political and
economic condition of the target market can increase the risks for the business in operating the
business effectively. The role of the global trends, unemployment rate, GDP and economic
indicators are huge in making good condition of the economy of any country. On the other hand, it
has been found that there are various factors contribute to the politic stability such as level of
different religious, social unrest, regularity in amendments in the government. To approximate the
extent of such risks the company requires the proper data focusing the target markets situation of
social-cultural. The companies of the USA are named for advanced management and marketing
skills (Handley and Limão, 2017). The support for customers and logistics are obtainable all over

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the world due to excellent research and development capabilities in American Companies. It has
become a great challenge for the company to keep focus on each factor of the company as well as
client perspective before providing services.
In the context of Empiric Company, it has been found that the political and economic policies had
a significant role in the expansion of the company. The company had to keep focus on the target
market significantly as the culture of US is entirely dissimilar from the UK for which company had
to give training to the employees so that they can work with effective manner. On the other hand,
to reduce the attrition rate, the company had focused on various strategies such as rewards and
recognition program, involvement of an employee in the decision for the company and implement
of fun activity. The company had to face confronts at the time of internationalization i.e. various
sorts of tariffs and non-tariff trade barriers. The background of this risk is related to the political
term and they are taken in use in order to get prevented from new competitors which could hamper
domestic companies. The service of the company is related to the staffing industry in which the
company should be aware ofnorms of different companies in order to provide talented employee to
them.
As it has been discussed that the company had adopted direct exporting entry mode in which the
company had to face confronts in making team to deliver high-quality services to the clients. The
entry barriers are major factor in the internationalization that includes monopolies, legal protection
and corruption. With respect to monopoly, it has been found that the situation of monopoly
showsthe serious situation in an entry barrier. A monopoly happens when a single company is the
major provider of the services and products in the market. Along with that it has been found that
the poor legal protection in the foreign companies also acts in the form of the barrier. In case the

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company is unable to protect its intellectual property and effective dispute settlement mechanisms,
it can lead the business in the huge loss in the market.
Theory of internationalization
The theory of internationalization focuses on defective in middle product markets. There are
major two kinds of intermediate product such as knowledge level to connect research and
development to production and flows of aspects and raw materials from upper level of the
production facility to the downstream. There is a model of internationalization that are
mentioned below:
Dunning’s Eclectic Paradigm
According to the eclectic paradigm, the advantages of foreign direct investment are effectively
demonstrated by taking consideration of three factors which are not easy in developing a foreign
business investment. These three factors are location, ownership and internationalization benefits
which can be the basis of success in international business investment (Hilmersson and
Johanson, 2016). The main focus of this theory is not limited up to three critical pillars but also
on the recognition of the significance of the structure of the organization in foreign business
investment. Continuous and development commitment in foreign business investment branches
from the accessibility of a benefit in the levels of the foreign direct investment assets. It has been
argued by Dunning that foreign business investment would be a collapse unless a company
entertains ownership benefits over resident companies (Knight and Liesch, 2016). According to
Brouthers, Brouthers,and Werner (2015), at the time same as intellectual sources is vital, having
knowledge the velocity of technology and the market such as Apple Plc did after its initial
success of mover.

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With the help of this theory, the business can expand its operation internationally at a high level
by taking consideration of three pillars such as location, ownership and internationalization
benefits. By putting this theory on the operation of Empiric, it can be seen that the operation of
the company has kept focus on such factors before moving internationalized.
Conclusion
It can be concluded from the above discussion that the role of the internationalization in the
operation of the business keeps significant value. The process of internationalization is not
similar in every individual company case. It has been found that it can be a huge process and
demand a vast amount of work and resources. For this assignment, the discussion has been made
on the internationalization process of Empiric Company that is well-known for providing talent
to companies for their vacant position. The company used direct export entry mode to get an
entry in the market of the United States. The major two specific issues regarding
internationalization such as Analyzation and target market and entry mode have been described
in the context of the company. According to me the strategy of the company for
internationalization was quite good as it has adopted the right strategy to expand its business.

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