Unit 43: Exploring International Markets: A Symphony Ventures Analysis

This report provides a detailed analysis of international markets, focusing on the challenges and opportunities faced by small and medium-sized enterprises (SMEs). The report uses Symphony Ventures, a UK-based technology services company, as a case study. It explores the global business environment, including the impact of Brexit and key drivers such as investment and workforce. The report examines trade blocs, tariff and non-tariff barriers, and the merits and demerits of importing and exporting. It also investigates various methods for SMEs to enter international markets, comparing and contrasting their advantages and disadvantages. The report aims to provide a comprehensive understanding of international market dynamics and strategic considerations for businesses seeking global expansion.

Unit 43 Tapping into
New and International
Markets

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P1 Explicate the global environment of business in which small as well as entrepreneurial
businesses run..............................................................................................................................1
P2 Analysing the threats as well as opportunities which SMEs has been facing in order to
increase competitive global environment....................................................................................2
TASK 2 .........................................................................................................................................3
P3 Benefits of the international trading blocs as well as agreements..........................................3
P4 Tariff and non-tariff barriers...................................................................................................4
TASK 3............................................................................................................................................5
P5 Find out merits and demerits of importing and exporting and how to secure a deal..............5
P6 Justify the differences between merchandise as well as service imports and exports............6
TASK 4 ...........................................................................................................................................7
P7. Measure the various methods in which SMEs can enter into international markets.............7
P8 Compare as well as contrast the various methods SMEs can enter into global markets,
assessing the pros and the cons of each method.........................................................................8
CONCLUSION .............................................................................................................................10
REFRENCES.................................................................................................................................11

INTRODUCTION
In order to enter the global marketplace, it is very essential for the business concerns to
explore international market so that they can enjoy the success and growth of their business
venture (Bateman, 2019). The main object of this report is to germinate the knowledge of
international marketplace so that the enterprises can know their threats and opportunists in
advance before going for that specific or particular market. Symphony Ventures is an enterprise
which is considered for this report and it mainly deliver services relating to the technology. It has
its headquarter in London,UK. In this report report in which worldwide business environment of
United Kingdom is going to be evaluated along with the opportunities and threats that influence
the activities of the enterprises. Further this report consist, restrictions and benefits associated to
tariff and non tariff barriers. In addition to all above information, this report also includes factors
of export and import with their difference in the methods relating to the entry of entities in the
global market.
Task 1
P1 Explicate the global environment of business in which small as well as entrepreneurial
businesses run
It has been discovered that UK is one of the stable nation which is presently facing
economic crisis, but it still it manages to stay positive, clam, innovative and forward looking as
well as it has open its arms for new business enterprises. SMEs are the backbones of the country
and government of UK in this respect is making continues efforts to deliver them various
facilities which will improve their business activities (Ferraris, Santoro and Bresciani, 2017). All
the attempts of government and SMEs contributes towards the improvisation OF GDP. UK is the
quickest growing nation and attain sixth position in the world with the aid of its private
enterprises. It has been viewed that service sector of the country extremely contributes to the
expansion of the economic system of the country, it is nearly about eighty percent of the overall
GDP and it is created from efforts of the SMEs.
Small and mediums business enterprises implies to those entities who start their activities
from small scales and are restricted to region or nation. In context to United Kingdom, it has

been evaluated that small enterprise have turnover less then ten million pounds and employees
are less then fifty. Whereas, medium enterprises have less than two fifty employees and their
turnover is less than fifty million pounds. It is said that these are the business entities which
usually operates in such surroundings where they imports goods and products from various other
regions in order to operate their business effectively as well as export all their manufactured
items into different nations across the whole wide world. It has been identified that the majority
of SMEs business within UK usually operates their functions within Europe boundaries where
they exports their products to different European countries which consist of Spain, Netherlands,
France and many more.
Further, it can be aforesaid that SMEs have majorly contributed in order to strengthen
whole global environment of UK which assist enterprises of the the nation to do their operations
in international market places like Asia, America and in some regions of African countries as
well.
P2 Analysing the threats as well as opportunities which SMEs has been facing in order to
increase competitive global environment
International business environment along with the influence of essential global drivers
It is aforesaid that the environment of global business of UK is quite a dynamic one
which alter itself with the changes in the elements of external environmen (García-Villaverde,
Elche and Martinez-Perez, 2020). The external environment is presently facing vast issues and
challenges because of the new BREXIT policy which originate at the workplace. SMEs of UK
are allowed to do business freely within various European countries without any kind of
limitation and it only happens before the implication of BREXIT policy. Now SMEs along with
the entrepreneurial business needs to give some sensible amount of rate of exchange. There are
various type of global drivers which are capable of influencing the entire system of economy of a
country. Few of these key drivers includes, investment, productivity, finance and work force. It
can be said that the labour force which is inside the UK marketplace is extremely costly, as a
result to this SMEs of United Kingdom obtain workforce from many Asian countries. This help
them to reduce the cost of labour which directly reduce their cost of production. Apart from this,
productivity & investment are factors which have the ability to influence the economy system of
a nation in both ways positive as well as negative. In context to Symphony Ventures, it can be

said that company should examine all the necessary global drivers so that they can reduce the
cost of their services.
Threats & opportunities in the competitive global environment
With involvement of less staff and low turnover SMEs faces many problems and
challenges in their business operations. The most impacting issue which these organisation suffer
from is lack of availability of resources such as finance, land, skilled workforce as well as market
accessibility. All these factors restrict the enterprises and impact their profitability in a negative
way. Further, lack of economies of scale is the most influential issue which control control the
SME to accomplish their goals.
Apart from all the above issues and challenges that are mention above is respect to SMEs,
there are some opportunities which improve the overall activities in an effective manner.
Government of UK has initiated various form of policies with the assist SMEs to perform their
functions easily without paying any type of heavy taxes.
Symphony Ventures with the opportunities that are available to them can enhance their
functioning and grow their profit margins. Whereas, by realising their threats in advance will
assist them to overcome from them easily and in faster manner.
TASK 2
P3 Benefits of the international trading blocs as well as agreements
Trade blocs refers to the agreements which are of intergovernmental type. These
agreements are supposed to take off or cut down the obstacles of trade within the member
countries (Götz, 2020). These countries are usually close to the geographical boundaries, but
many a times these nations may not close to each other. The main ides behind trade blocs is that
countries which are the members of this agreement can trade freely with each other whereas
barriers of trade with non member countries has impacted the global trade. International
agreements of trade can open various kind of new opportunities for the exporters which ensures
them the access to competitively priced the imports from the other countries.
Trade as well as agreements assist government to generate more income and businesses
which are in the home country have great chances to compete. UK is an active member of
European Union which assist the country to trade without any restriction with other within the

European state. Whereas, with the enforcement of BREXIT. UK is now free to to business with
the other countries in the entire world.
Trade blocs like CARIFORUM-UK partnership economic agreement, Central America
and many others help UK and its SMEs to do commerce with other countries such as Gambia,
Guinea, Liberia and many others.
In relation to UK, one of the most trenchant agreement is SACUM-UK which is an
economic partnership agreement (Konara and Ganotakis, 2020). It partnership solidifies a strong
relation of trade between SACUM members like South Africa, Lesotho, Namibia, Eswatini and
Botswana and UK as well as Northern Ireland, as United Kingdom is associated with the EU
custom union along with the EU single market. Further with the execution of BREXIT, UK has
become apt to do its business activities under the guidelines of WTO. These regulations define
the agreements of trade among 163 members as well as with the UK. Because BREXIT trading
will be now done on fair basis and at fair prices which act as an advantage for businesses of UK.
Assessment of advantages in relation to international trading blocs along with their
implications on SMEs
Trading blocs refers to certain group of nations who trade among themselves with bthe
help of the agreement between them. It is evaluated that international trading blocs benefits by
increasing local investments as these have competence to improve overall market of company
like Symphony Ventures. Other merit of global trading blocs that they results in the quicker
exchange of technology and enable Symphony Ventures to deliver it services in much faster
manner. It deliver facilities like cost cutting which makes easy for SMEs to get competitive in
the market and make them strong. They permit enterprises like Symphony Ventures to make
changes in their services according to the changing requirement of the various markets of the
world.
P4 Tariff and non-tariff barriers
Non-tariff barriers- They can be define as the trade obstacles which limit the activities
of export or import of products and services from means which are other than tariffs (Li, 2017).
WTO has recognises some non trade barriers such as licensing of import, inspections of pre
shipments, rules of origin, delayers of customs along with the other practices which control or
limit the trade of the respective countries. They are utilised by the developed nations as an
economic plan of action in order to control the level of business with the other nations.

Tariff barriers: They can be define as the taxes which are imposed on the export or
import of product and services. In general terms, it implies to import duties that are charged at
the time when goods and services are imported. They serve as the source of revenue, defend
home industries and it is the remedy for trade distortions.
Critical judgement of how SMEs take benefit of internal opportunities as well as overcome
barriers.
It is critically evaluated that there are various opportunities and challenging situations
which influence the development of small business enterprises in global marketplace. In
reference to Symphony Ventures, their junior executive of marketing department can take
advantages of international opportunities as well as overcome barriers by knowing and
understanding the strategies relating to planning and market. With this, the enterprise can make
effective strategies in order to control barriers with the regulations of government and tariffs can
be easily analysed as well as overcome.
TASK 3
P5 Find out merits and demerits of importing and exporting and how to secure a deal.
Importing- Importing implies bringing merchandise and services which are manufacture
or produced from one country to the other (Liow, Liao and Huang, 2018) . It is the element of
global trade. Import becomes attractive when industries which are domestic are not able to
produce similar kind of goods or services in a cheaper or effective way. Symphony Ventures
with the aid of importing can easily import those services which are not easy for them to deliver
or produce.
Advantages: It assist enterprises to enlarge their margin of profit. In context Symphony
Ventures they can import services from the countries where rates of taxes, wages and fees are
low as compared to UK. Along with this it will help them to enhance the quality of their services
in an effective way.
Disadvantages: Importing increases the risk of foreign exchange Symphony Ventures may tend
to suffer from loss if there is any change in the currency. It also includes legal risk and for
Symphony Ventures it will tuff as what is legal in one country it might be illegal in the other one.
Exporting- Exporting refers to the sale of goods and services which are made in home
countries in the foreign nations (Rana and Elo, 2017). It is important for the modern economies

as it offer firms as well as people more market for their goods. Symphony Ventures with the
aid of exporting can easily sale their services to various nations.
Advantages: Exporting help in expansion of market which will help Symphony Ventures not to
depend on single market. Exporting leads to greater production which will help Symphony
Ventures to contribute in economies of scale and ensure improved margins.
Disadvantages: It leads to less focus due to this Symphony Ventures can not constraint on their
existing customers and their home market. It also tends to increase the cost of administration
which will act as an liability for Symphony Ventures as they have to deal with the regulation of
export , when they trade outside European Union.
Proper process of import and export in context to company
In reference to Symphony Ventures, their process of import involves stages which are
comprises of deciding nations, search for relevant suppliers, determining duties and taxes,
finding dependable freight forwards along with the customs brokers as well as delivering their
services on time. Their export process starts with registration relating to export in exporting
country, procedures of export customs and documents that are utilise by the entities. Elaborate
stages of exporting are letter of credit, obtaining license, receipt of order, devising exchange rate,
international exchange formalities, and so on.
P6 Justify the differences between merchandise as well as service imports and exports
Import and export of goods and services is very essential for the entities who are looking
to set up their business units globally (Riggs, 2017). Along with this, it has also been said that
there are some essential differentiations which are on the basis of nature, scope and meaning of
the export and import. In this reference, some of the leading difference between the import and
export of merchandise and services are mentioned underneath-
BASIS Import as well as exports of
products
Export and Import of service
Meaning It refers to the exports as well as
imports of all those products which
are tangible in nature and can be sold
On the other side, services implies
exchange of intangible goods. In
relation to Symphony Ventures it

easily in worldwide. For example,
Symphony Ventures provide various
type of gadgets to different for
during their internet banking
operations.
deliver services like robotic
process automation,
implementation of software etc., to
the respective clients.
Scope It can be easily said that this sort of
export and import does not have
wider scope as tangible goods are
distributed by the enterprises.
Whereas services have wider scope
as their various services which are
deliver around the world. It
includes professional trainings,
installation of technology,
infrastructural development and so
on.
Cost Production cost is high in export and
import of merchandise as it involve
raw material, huge investments and
more manpower.
It is comparatively less costly and
it is simple process as specific type
of services are traded in this sector
and it don't require much raw
material an manpower.
TASK 4
P7. Measure the various methods in which SMEs can enter into international markets
Each and every enterprise irrespective of their nature and size have some or the other way
through which they tap into the international market in order operate the activities (Schwens and
et.al., 2018). These methods also enhances their share of market with the profit margin. Some of
these methods which is extremely utilized by the management team of an entity in order to enter
in the new and international marketplace are discussed below-
Franchising: Franchising refers to those methods of distribution of goods and services
which involve franchisor, who set up the trademark of brand or trade name along with the system
of business (Siegel, Pyun and Cheon, 2019). On the hand, a franchisee is the one who give
royalty and often an initial fee for the right to do business under the system and name of the
franchisor. The rule of franchise requires franchisor to disclose all the key operating informations

to the expected franchisees. Symphony Ventures with the aid of franchising, can easily enter into
the global market by opening outlets or stores in theses markets with the franchisors. This will
permit Junior Executive of marketing department of small business to use method and brand of
respective franchisor in order to conduct their business by delivery their services to the
customers.
Licensing: Licensing is the business method which includes two parties, where one grant
permission like copyright or patents to the other in exchange of payments (Weerakoon, 2017). In
international business, two firms of different nations are involved and the licensee received the
right to manufacture in the foreign country. Symphony Ventures with method, can enter into the
international markets by suing intellectual, designs, patents and copyrights of other entity who is
well established in n global market.
Joint venture: Joint venture refers to the mutual agreement between two or more
enterprises, which is made often for the goal of starting a new business activity (Siegel, Pyun
and Cheon, 2019). All parties of joint venture contribution their assets and agree on terms of how
they are going to divide expenses and incomes. Thus, it results in creation or formation of
separate and new entity or it may operate entirely on agreement without the formation of new
entity. Symphony Ventures can tap into international market with this method by making
agreements with other parties who are agreed to poll their resources to complete the specific task.
P8 Compare as well as contrast the various methods SMEs can enter into global markets,
assessing the pros and the cons of each method
Small and medium business enterprises enter in the new and international marketplaces
with the help of franchising, joint venture as well as licensing (Tuan, Thanh and Le Tuan, 2019).
But good things also have pros and cons, so in respect of these methods they are explained
underneath:
Methods Pros Cons
 It require low capital as
franchisees are
provided with the
capital to open their
 Recovery of investment
cannot be done as until
the enfranchise are
appointed, the entities

Franchising
franchised outlets.
 Less requirement of
man-force as franchisor
need much smaller
employees to run
network of franchise.
start receiving fees
from them.
 Agreements of
franchise includes
restrictions. This
becomes difficult for
the enterprises to make
changes according to
the local market.
Licensing
 It makes easy for the
enterprises to get their
goods and services in
the new market. This
happens because it
allows intellectual
property jump the
border requirements.
 With licensing entities
are not require to find
money for the
commercialisation of
their product. This is
because licensee is full
responsible for the cost
which are associated
with their product.
 It is offered for the
limited time period
may be of 5 or 10
years., as it involve
date of expiry which
need to be considered
by the licensee.
 The chances of IP theft
increases as there is
more risk of misuse,
piracy because licensor
don't have full control
on operations which
are conducted by
licensee.
 With the help of joint
venture enterprises can
scale up their capacity
 There is a lack of equal
involvement as it is
next to impossible to

Joint venture
as strength of one can
be utilise by other. This
deliver competitive
benefit to both the
parties in order to
create scalability of
economics.
 Production of cost get
reduced as entities join
hands with motive of
providing effective
price of their products.
maintain fifty-fifty
contribution.
 In this flexibility is
restricted and many a
times individual
businesses suffer in the
activities as they focus
more on joint venture.
CONCLUSION
From the above report, it can be concluded that global environment of business involves
various component which are comprises of regulations and rules that results in the restriction of
free trade between different countries. It has been evaluated that small and medium business
entities face various form of threats and opportunities which help them in achieving success in
the worldwide marketplace. Furthermore, it is observe from the report that UK is actively
involve in various trade agreements which help its enterprises to trade freely without paying
heavy taxes. At last, it has been also discovered there are two kind of trade roadblock which limit
the commerce with the global market.

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