International Entrepreneurship Report: Sainsbury's Market Entry

This report delves into the realm of international entrepreneurship, examining effective strategies for businesses to enter new markets and achieve global expansion. The report uses Sainsbury's, a major UK supermarket chain, as a case study, evaluating different models and theories for internationalization. It focuses on the franchising strategy as a key approach for entering markets both within and outside the European Union, specifically Germany and Japan. The report provides a detailed analysis of the advantages and disadvantages of franchising, reflecting on the challenges encountered during the research process. It also highlights the importance of decision-making skills, communication, and teamwork in successfully implementing international business strategies. The conclusion emphasizes the need for businesses to adopt appropriate entry strategies to thrive in a competitive global market and meet customer needs effectively.

International
Entrepreneurship

Table of Contents
INTRODUCTION ..........................................................................................................................1
Critically evaluation of model or the theory to enter in the new market ...................................1
CONCLUSION ...............................................................................................................................3
REFERENCES................................................................................................................................5
.........................................................................................................................................................6

INTRODUCTION
International entrepreneurship is an effective approach or the process that determines the
entrepreneurship towards the internationalisation of firms. In general terms it is the process of
conducting the business activities in the foreign countries. Main purpose of this approach is to
provide offerings to the customers that meets the needs and targets of target customers (Kiss,
Danis and Cavusgil, 2012). This report is based on Sainsbury which is the largest chain of super
markets in United Kingdom and deals in groceries, clothing, home ware, electricals and many
other products. This report will focus on critically evaluating the effective models and the
theories to properly internationalise the business as well as reflection is also undertaken so as to
recognise the difficulties encountered while conducting the project in the effective manner.
Critically evaluation of model or the theory to enter in the new market
It is necessary for the organisations to globalise their business activities so as to sustain
in the competitive market place . Moreover there are various types of strategies which can be
adopted by the business organisations so as to successful enter in the new market. It also has a
effect on the decision making on the entrepreneurs to choose the appropriate strategies while
entering into the new market. As Sainsbury is willing to expand its market inside and outside the
European Union. Respective company is going to expand its market in Germany which is inside
the European Union and that to in Japan which is outside the European Union. Company will
provide its existing products and services in the different countries so as to enhance its market
share as well as earns maximum profitability. In order to plan the most effective strategy
company uses proper entry strategy of Franchising which is a important marketing concept and
can be adopted by the business organisations to properly expands their business in different
countries and therefore to maintain its sustainability in the global market (Terjesen, Hessels and
Li, 2016). Choosing this strategy will help the new firms to properly expand its business and
capture the larger market share.
Franchising :-
franchising is basically a right which is given by one party that is company to the another. This is
type of strategy for the business growth which involve two parties franchisor and franchisee. It is
an agreement between these two parties in which franchisor grants some authorities or their
rights to the franchisee. Franchisor provide authority to the franchisee to sell their goods and
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services by using their brand name and also their trade mark. In this franchisee performed a role
of dealer. Against this contract franchisee pay certain fees or commission to the franchisor
against the use of their brand name and trade mark of their company and franchisee also take
some part of the profit. First an agreement is signed by the use of intellectual properties such as
trademark and patents, after that franchise pay a certain frees and also share some profit in
written agreement then franchisor provide their goods and services to the franchise on certain
conditions. Sainsbury is one of the largest supermarket chain in the UK and this strategy is very
important for the company to expand their business at large scale. It is best strategy by which
sainsbury cover whole of the geographical market at the time of business expansion because all
individual who wants to become franchisee in their area have great knowledge of their locality
and their population. Some of the advantages and disadvantages of of franchising are given as
follows:-
Advantages :-
 The failure of business risk is decreased by the help franchising. As in this franchisee
operates the whole business.
 It has their own established brand and market share so it very beneficial for the franchisee
to operate business in to already established market in which there is no need of any
market research (Fernhaber, Gilbert and McDougall, 2014).
 There are various exclusive rights are given to the franchisee such as franchisor won't sell
one more franchises to the other individual the same area.
 Already recognised brand is a biggest benefit for the franchisee because there is no need
of any promotional and advertisement activities which consume huge cost of the
company.
 It is very easy to finance the venture because of its huge reputation and brand image
banks are easily provides loan to the individual who wants to buy franchise.
Disadvantage :-
 The cost of buying and set up franchising is very high according to the expectations
because various cost incurred at the time of purchasing franchising such as service cost,
agreement cost and many others.
 There are various restrictions includes in agreement of franchising which contain various
terms and conditions in which franchisee needs to run business.
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 It is very difficult to sell franchise to the other individual without the proper approval of
the franchisor.
 All the revenue which are generated by the franchisee is need to be shared with the
franchisor which is a great disadvantage for the franchisee (Mainela, Puhakka and
Servais, 2014).
 The stable and rigid nature of franchise sometimes become a great problem because
franchisee not able to introduce different changes according to the taste and preference of
the customer's.
REFLECTION
While undertaking this report on undertaking various strategies or the method which
should be adopted by the firms so as to enter in the new market and effectively gains the
competitive advantage. As discussed organisation aims to expand in the country which are both
and within the European Union. This made me confused regarding adopting the suitable strategy
for the firm so as properly enter into the new market and sustain for a long time period. As there
are various entry strategies for the firm which made me highly confused regarding choosing the
effective one and therefore needs the support of the various friends and tutor so as to choose the
most effective entry strategy for the business. Therefore consulting from various friends and
relatives helped me towards analysing the advantages associated with the chosen entry strategies.
Therefore conducting this report also enhanced my knowledge regarding the different entry
strategies for the firm and proper analysing the advantages and disadvantages about it. Moreover
I also found that I lack in proper decision making skills as I was not able to take proper decisions
regarding choosing the most appropriate strategy as well as i have problem related to proper
communication skills which acts as a barrier for me to interact with my friends and tutor in
proper manner and thereby clear my doubts and issues. This skill can be enhanced my interacting
with the individuals on larger basis and therefore leads towards gathering proper information
about the topic in a proper manner. Moreover it led me to develop my communication as well as
team working skills. It also leads improvement in decision making skills. This help me to do
proper planning as a way of choosing the most effective strategy and undertaking the project in
the effective manner.
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In addition to this I found opportunity that I came to know about the various entry
strategies that the firms can adopt and effectively survive in this global market and help towards
learning and growth. It enhanced my learning towards completing the future report work in a
systematic manner. It also provided me with the opportunity of conducting the research and
development in a proper manner as a way of analysing the demand and requirement of the
customer in the expanding country and therefore help to determine the advantages and
disadvantages of the various entry strategy and therefore select the most appropriate one.
Therefore the basic advantage is the enhancement of the knowledge towards the specific topic.
Further I faced the issue of working in team as I lack in proper team spirit and not able to work
mutually with others. This problem can be solved by proper interacting with the friends and the
co-workers, this lead to improved efficiency for me to work in team with different members.
Therefore, it has analysed from the whole reflection that there were various strengths, weakness
and opportunities analysed while undertaking and completing the project activities. It also lead
towards improver my weaker areas so that it help me to complete the project activities on time.
CONCLUSION
From the above project it has been concluded that in order to survive in this competitive
world it is necessary for the business organisations to enter into the foreign market and therefore
effectively globalise their business. It is necessary for the firms to choose the most appropriate
entry strategies and therefore provide products and services as per the needs and requirement of
the customer. Moreover choosing of the most appropriate strategy will assist the business
enterprise to survive in this global world in the proper manner.
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REFERENCES
Books and Journals
Kiss, A.N., Danis, W.M. and Cavusgil, S.T., 2012. International entrepreneurship research in
emerging economies: A critical review and research agenda. Journal of Business
Venturing, 27(2), pp.266-290.
Terjesen, S., Hessels, J. and Li, D., 2016. Comparative international entrepreneurship: A review
and research agenda. Journal of Management, 42(1), pp.299-344.
Fernhaber, S.A., Gilbert, B.A. and McDougall, P.P., 2014. International entrepreneurship and
geographic location: an empirical examination of new venture internationalization. In Location
of International Business Activities (pp. 94-136). Palgrave Macmillan, London.
Mainela, T., Puhakka, V. and Servais, P., 2014. The concept of international opportunity in
international entrepreneurship: a review and a research agenda. International journal of
management reviews, 16(1), pp.105-129.
Brush, C., 2013. International entrepreneurship (RLE International Business): the effect of firm
age on motives for internationalization. Routledge.
Liesch, P.W., Welch, L.S. and Buckley, P.J., 2014. Risk and uncertainty in internationalisation
and international entrepreneurship studies. In The Multinational Enterprise and the Emergence
of the Global Factory (pp. 52-77). Palgrave Macmillan, London.
Zucchella, A. and Magnani, G., 2016. International entrepreneurship: theoretical foundations
and practices. Springer.
Peiris, I.K., Akoorie, M.E. and Sinha, P., 2012. International entrepreneurship: A critical analysis
of studies in the past two decades and future directions for research. Journal of International
Entrepreneurship, 10(4), pp.279-324.
Oparaocha, G.O., 2015. SMEs and international entrepreneurship: An institutional network
perspective. International Business Review, 24(5), pp.861-873.
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