Allied Irish Bank: Analysis of International Market Expansion Strategy

This report analyzes Allied Irish Bank's (AIB) expansion strategy, focusing on the Maltese market within the European Union. It begins by outlining the global business environment, including political, economic, social, technological, legal, and environmental factors. The report then examines how globalization impacts SME growth, emphasizing enhanced market access and increased competition. It identifies threats and opportunities for AIB, such as competition and technological advancements. The report further explores the advantages of international trading blocks, specifically the Customs Union, for AIB. It also details tariff and non-tariff barriers encountered in international trade. The conclusion summarizes the opportunities and challenges faced by AIB and highlights the importance of understanding global business dynamics for successful international expansion. The report provides a comprehensive overview of the factors influencing AIB's strategic decisions in the context of international market entry and growth.

Tapping into New and International
Markets

 Introduction
 Explanation of Global Business Environment
 Analysis of Global Business Environment
 Threats and opportunities that are faced by SMEs
 Critical analysis of implication of threats and opportunity
Table of content

 Advantages of international trading blocks and agreements
 Evaluation of advantages of international trading blocks and agreements
 Tariff and non tariff barriers
 Conclusion
 References
Table of content

Introduction
The organisation selected for this presentation is Allied Irish Bank which provides banking services. The
Bank offers loans, mortgages, credit cards, current accounts, financial planning, insurance,
investments, pensions, and savings and deposits products, as well as internet and mobile banking
services. Currently Allied Irish Bank is operating in areas of UK and Ireland and also started switching
in many reasons of northern Ireland. In order to expand its business operations and customer base
Allied Irish Bank is now focusing on its expansion in the various reasons of Europe also. Thus, the
target market selected for this presentation is Malta that is a souther European Island country.

It is very important for an organisation to appropriately and effectively be aware of the global business
environment in which it operates, as it represents different facets and aspects of the surroundings of the
firm that could be a major influence on the sustainability and growth of the company.
Explanation of Global Business Environment

Allied Irish Bank is a SME organisations within the United Kingdom, which provides its financial
services to its customers within the nation. Quite recently, the company is expanding itself in the trade
bloc market of Europe, specifically in Malta, which the firm believes could prominently be used for
expanding the business operations effectively.
 Political Factors: For an SME that is planning to expand into a trade bloc market, it is necessary that
the political factors are taken into account. The political factors in Malta are stable and the business
will be supported by peace, security and social progress which will be an opportunity for the business.
 Economical Factors: Malta is expected to achieve highest growth in the European region. This backs
the statement that it is one of the favorable country to expand business operations. The GDP growth in
the country was 5% in 2019.
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 Social Factors: These factors undertake all the trends, customer preferences and social concerns
within a country which has a direct influence on the SME in expanding its market in the region. In
context of Allied Irish Bank, the current trend within the Banking sector has individuals wanting
more technologically advanced and reliable financial services, along with ease in payment options.
 Technological Factors: The adoption of fast digital oriented banking services are one of the latest
trends in Malta. Therefore adoption of the same will be helpful in achieving higher expansion goals
for Allied Irish Bank, which would allow the SME with better opportunities later on.
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Legal Factors: These factors are the ones which cover the legislation's and rules and regulations of a
country. In context of Allied Irish Bank, due to Brexit, there are several drastic changes within the
legislation surrounding the banking sector of the Europe if an organisation belongs to the UK. It is
crucial for an organisation to confirm with the regulation which are established by Malta financial
services authority.
Environmental Factors: For Malta, it is crucial for a business to conform with Environment and
Development planning act 2010. The authority working under this legislation is responsible for
offering licenses and regulating business practices.
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 As per the above explanation, it could be stated that Global Business Environment is very important
for organisations to evaluate and analyse, so that they could determine the positives and negative
aspects associated with this environment. Moreover, the analysis below is covers the key global drivers
which firms like Allied Irish Bank experience in relation to expanding their business to nations, such as
Europe.
Analysis of Global Business Environment

How trends of globalization impacting SME growth
There are several ways through which globalisation is impacting the SME growth within the region.
Some of these ways are explored below:
Enhanced Access: One of the major impacts which SME's are facing by the globalisation is enhanced
access within the global market. With new trends of transportation and travelling, companies could set
up their units in different locations with easy access to their resources, suppliers and other aspects like
technology. This has a positive impact within these organisations as it could help them in enhancing
the scope of their expansion within countries within EU.

How trends of globalization impacting SME growth
There are several ways through which globalisation is impacting the SME growth within the region.
Some of these ways are explored below:
Enhanced Access: One of the major impacts which SME's are facing by the globalisation is enhanced
access within the global market. With new trends of transportation and travelling, companies could set
up their units in different locations with easy access to their resources, suppliers and other aspects like
technology. This has a positive impact within these organisations as it could help them in enhancing
the scope of their expansion within countries within EU.

Continue……
Competition: Another aspect which have an impact on the SME's. With rise in globalisation, there is also
a rise witnessed in trends within the competition. Each organisation has multiple companies as their
competitors who adopt different strategies to sustain a better market position. The impact could be
both positive and negative within the companies and it influences their practices which must be to
ensure high quality products that are promoted and positioned in a better manner than their
competitive firms.