Analyzing Global Business Environment in International Marketing

This report provides a comprehensive analysis of the global business environment and its influence on international marketing, focusing on HSBC Holdings plc as a case study. It examines key global drivers such as political, economic, social, technological, environmental, and legal factors impacting business operations. The report discusses the rationale for SMEs to expand internationally, highlighting the importance of market research and strategic planning while understanding potential obstacles. It critically evaluates the opportunities and challenges for global growth, emphasizing the need for effective strategies to overcome barriers. Furthermore, the report assesses various trading blocs and agreements, examining their advantages and significance for specific regions and countries, particularly in relation to the UK's post-Brexit trade environment and concludes by evaluating how these agreements stimulate and generate global growth, addressing the challenges faced by SMEs in competing internationally. The report also briefly touches on the advantages and disadvantages of different exporting processes.

INTERNATIONAL MARKETING

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................4
PART-1............................................................................................................................................4
A critical analysis of the global business environment and the influence of key global drivers specifically in relation to the chosen
country.........................................................................................................................................4
Discussing the rationale for SMEs to expand their business internationally...............................5
Critically analysing the opportunities and challenges for global growth....................................6
Evaluate a range of trading blocs and agreements and examine the advantages of specific trading agreements that would have a
direct significance for your region and country...........................................................................7
Critically evaluate how these stimulate and generate global growth..........................................8
PART-2 (In Brochure).....................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Global Marketing is the market process which is scaled worldwide across the globe. It has elements like opportunities and similarities
to reach in global objectives and also taking global operational differences in the internal market. The international marketing is also
known as the application of marketing principles in more than on country by organisation across the borders or overseas. This process
take place by exporting company’s services and goods into another location with some join venture with some other organisation
within the foreign country. International marketing includes pricing, local product, localisation and distribution with promotions,
website, offers, leadership and social media. HSBC Holdings plc is the British multinational bank and the company which has holding
of financial services(van-der-Loos, Hekkert and et,al., 2020). This is the largest bank in Europe. This bank was formally incorporated
in 1866. It has 7,500 offices in more than 80 countries of Europe, middle Africa and Asia etc. There are 1800 sites of all the bank
operates in the UK. The headquarters of HSBC is in Birmingham at One Centenary Square. The global headquarters are in London
East. The staff is more than 8,000 which are building houses over 42 floors. This project will explain us the meaning of global
business environment and key global drivers, importance of SMEs if there are expanding internationally, their opportunities and
challenges of global growth. In this project there is evaluation of trading blocs and agreement and their benefits for the company in
given region.

MAIN BODY
PART-1
A critical analysis of the global business environment and the influence of key global drivers specifically in relation to the chosen
country.
The global business environment is the process which can be defined as the environment which has different sovereign countries with
the home environment of the organisation to external factors, influencing the capabilities and decision making on use of
resources.
The key global drivers are:
 Political Factor- HSBC operation in Europe has some certain political factors comes in the way of growth of the company
globally. HSBC cannot start its new business under its own banner in the new country it has to collaborate with some small
firm(Dedy, 2018). Furthermore, the company HSBC is strictly following the government laws of paying taxes on regular basis
and on time and also has to pay tax legislations. For HSBC most important political factor can be considered the stability of the
Europe, in which the operations of the company take place into the account of quality, threat, liberty and security of the legal
system.
 Environmental Factor- HSBC is the largest bank and financial group that has involved inherent uncertainties and threats. The
company growth is all dependent upon the major economic factors like inflation, fluctuation in rate of foreign exchange and
unpredictable state in the stock market across the globe this includes Europe too. The other economic factors are the exchange
rate of government, the fluctuations of interest rate including Europe, South Africa, deepening recessions or continuing and
fluctuations in employment rate.

 Social Factor- The socially HSBC is contributing a lot. HSBC is partnered with major charitable firms across the globe and
has contributed monetarily to support them. The chairman of Stephen Green of HSBC plc quotes one article which focuses on
their investment in education, community and the environment as the articles totally believes that basic things lead to the
development of the overall community(Dadush and Weil, 2021). The company runs various campaigns and programs which is
for the upliftment and betterment of the society such as rural children program and other activities. The legal factors include
bankruptcy legislation, foreign ownership in the prime markets.
 Technological Factor- The organisation uses HI- Technology, HSBC is been online fraud victim many times. Since,
technology plays important role within the financial company as the company needs for data interpretation and up to date
services. There was a certain loss of sensitive data and technical negligence of HSBC teams this resulted in customer loss but
customer loyalty of HSBC today is very high as they have worked on their operational weakness and the error which resulted
in sensitive leakage of customer data, which involves data protection laws.
 Environmental Factor- HSBC has been continuously towards the environment. This firm has been partnered with Earth
Watch institute in this the company sends its workers to various countries to understand, learn and spread awareness about the
environment. This company is been preventing from misuse the electrical appliances and misuse(Grima, Romānova and et,al.,
2020. The best practice of HSBC is switch off the computing and lights while not using. In 2005, the collaboration
announcement of university of East Anglia (UEA) and Newcastle university took place for their “HSBC Partnership in
Environmental Innovation” program which has budget of 65,000 Euro for three years and by this organisation become carbon
neutral, this was companies’ major initiative.
 Legal Factor- The Legal factors which affects the operating external environment of HSBC. Some are fixed regulations and
rules set by government which the company needs to abide and if company fails to perform this can lead to legal norms and
legal proceeding against the firm.

Discussing the rationale for SMEs to expand their business internationally.
Most SME owners are mainly focused on growing domestically but because they are missing major growth opportunities so according
to Salesforces more than 90% of the business population has presented small and medium enterprise to play a huge factor to growth
globally so SME are provided with encouraging sustainable, providing jobs, cultivating innovation and industrialization.
 Market Research- In the global economy every country and culture is very different. Example what has worked for Europe
that works for other country that is not fixed. Every country has different set of global economy rules(Putra and Wismanadi,
2022). There are some market research elements which should be clear before intend to enter the market like the customer
preference and taste, the cultural of purchasing services and goods, the demand of finished goods, demographic features of the
market etc. Also, the SME needs to consider the local competition as there may be similar service offered by local business.
The studying of market will help to enter market smoothly and helps to get satisfied customers that can trust SME.
 Defining the business global plan- The first thing to consider when planning to take the SME overseas into global. Before
considering the how, when and where the SME owners needs to consider why first. The company needs to figure out exactly
the purpose of business expansion. This firm needs to generate revenue on the basis of new consumers and new region. This
company needs to offer services and products on the basis of new country norms. The company also needs to revise the recent
domestic business plan too. The goals and objectives will be tailored and aligned for the new country like Europe etc.
 Understand the Potential Obstacles- To expand globally it is not easy. Only 78.5% of small business is able to survive
internationally. Many these can go wrong in making the company go across the globe. There can be barriers like language,
hiring a foreign employee, employment solutions through HR sourcing, interaction of domestic and international employees,
different culture and also the law and regulations of business abroad. So, people need to be prepared to do some extensive
market research for the business practices in the new market to avoid many problems like legal complication.

Critically analysing the opportunities and challenges for global growth.
This is an critical evaluation of the various different opportunities and challenges in which that influences the development of small
business companies in global market. In HSBC company, the team or executive of marketing department can have advantage of
international opportunities and overcome the barriers by understanding and knowing the strategies relating to market and
planning(Nguyen, 2019)(Chang, Saito and et,al., 2021) With this, the HSBC company can implement and make effective strategies in
order to control barriers with the tariffs and regulations of government that can easily analyse and can also overcome.
Evaluate a range of trading blocs and agreements and examine the advantages of specific trading agreements that would have a direct
significance for your region and country.
Trade blocs is the agreement which has intergovernmental bodies. These agreements are made to cut down the obstacles of trade and
take off within the members of the countries. These countries are more likely close to the boundaries geographically, but many times
these nations are close to each other. The main ideas is to trade blocs in which countries whom are members of the agreement that can
trade freely with one another whereas the barriers of trade with no members have impact on the global trade. International agreements
of trade has various open new opportunities for the exporters which has ensured access to competitive prices the imports to other
countries.
Trade and agreements assist government to have more businesses and income within the home country which has great chances to
compete. United States is the member of European Union which has assistance to trade in country without restriction with other
European State. Whereas, the BREXIT enforcement in UK is free to business now within the different countries across the entire
globe.
Trade blocs which is CARIFORUM-UK partnership economic agreement, in Central America and other help in UK and its SMEs has
to work with commerce with other countries such as Guinea, Gambia and Liberia etc.

The relation to UK, this is one of the main effective trenchant agreement is SACUM-UK which has economic partnership
agreement(McWilliam, Nielsen and et,al., 20200). This partnership solidifies very strong relation of SACUM member and trade like
Botswana, South Africa, UK, Lesotho , Namibia and Northern Ireland, as United Kingdom is more likely associated with EU custom
union with EU one and single market. Further, with the implementation of BREXIT, UK had to do all business activities under the
WTO guidelines. These regulations has defined the agreements of trade within 163 members and with UK too because of BREXIT
trading it will be done on the basis of fair prices and fair trade which act as the advantage for the companies in UK.
Critically evaluate how these stimulate and generate global growth.
The international commercial obligations had become major company's financial survival, SME has no benefit using this way. Using
trade blocs, the barriers for international trade is eliminated. This will result in established and significant organisation can extend the
functioning and activities. This can result in difficulty in HSBC success. SME always needs to plan strategies that are well-defined.
In order to attract more consumers towards the company. Trade blocs affect the expanding of the company in international market.
Every medium and small business must overcome the various obstacles so that the local business can compete in the international
business. There are many challenges to overcome this situation. The biggest block is financial block. SMEs sometimes lack in
resources so firm can improve communication technology,research and development and other areas(Lobo, Ortiz and et,al., 2019).
The trade agreements must be in strategic form in HSBC company. The reduce overall expenses company must ensure the government
environmental friendly things and company should avoid to endanger the environment.

PART-2 (In Brochure)
V
INTERNATIONAL MARLETING (PART 2)
Advantages and disadvantages of the different types of exporting processes for
exporting merchandising and services.
 Direct Exporting is the process in which sales of products without involving
anybody in between like middlemen. In this case direct exporting a company itself
involves selling of goods to overseas and is also responsible directly dealing with
the foreign organisation. A company like HSBC carry on the exporting directly by
these modes:
1. Sales branches through overseas.
2. This is abroad based retailer, agents and distributors.
3. Establishing HSBC’s own corporate export provision.
Advantages-
 Increase Profit- This helps firm to reduce business costs, resulting in potential for
increasing profit. During the export process there is no intermediary to take
commission.
 Increase Control- This help company HSBC to increase control more over the
brand image and also allow to forge deals and relationships with aims aligned with
the foreign businesses. The distribution and product in market can also be
controlled.
Disadvantages-
 Increased Workload- The logistical planning is very complex and time-
consuming. The exporting process will lead to unnecessary costs for the company,
it also increases demand for more resources, finance and time on the company
exportation process. Cutting down intermediary means taking responsibility for
their work.
 Increased Costs- Increased workload is directly linked with logistics of export
company and also the foreign research will more staff (Padmanabhan, 2022). This
can result in increased salaries, costs and more paid packages of employees. This
directly represent the increase financial risk for direct exporters.
In-Direct Exporting is the process in which company sales goods in foreign
country through middlemen. This involves using the sales intermediaries and
independent middle men that takes the responsibility of products which is send to
foreign countries. Some indirect exporting intermediaries are:
 Purchasing and buying of agents.
 Domestic based export trade and exports merchants’ companies.
Advantages-
 Less Risk- Indirect exporters has less risks and less risk of marketing as
it gets transferred to export market intermediaries and these
intermediaries as special skills in their filed.
 Less Investments- Indirect exporters mostly concentrate on assembling
of goods, manufacturing of products and they also require the less
amount of capital than direct exporters.
Disadvantages-
 Lower Prices- There is many intermediaries in case of indirect exports.
So, in various intermediaries there is distribution of total revenues and
the high prices is charges to exporter.
 Lower Sales Volume- The products are arranging in export houses from
various places and then there is contribution of individual exporters to
merge.

Evaluating different types of methods of tapping into new international markets,
including its limitations and benefits.
International marketing methods is basically planned for services and goods into the new
targeted marketplace. The international marketing strategies outlines all the companies
overview and goals of the target market. The different international market methods are:
 Export- This element means that when services and goods are delivered from one
country to another country (Cabaleiro-Cerviño and Burchartha, 2020). This
involves the currency between the countries that involves international trade.
However, the export also helps in enhancing the scope of globalisation all across
the globe.
Benefits of export -
 More job opportunities for the country's people, which are involved in international
business.
 This helps in enhancing the international trade that helps directly on the impact of
economy of the country.
Limitations of the export -
 This can also result in lack of control of owner of finished goods which is exported
because there are many conditions where the owner fails complete needs and
satisfy it for the client.
 This also results into increment of product's cost which are delivered to different
countries. As there are various taxes that more likely applied on the imported
products by the manufacturer of the products.
The documentation that is required e.g. letter of credit, packing list, commercial
invoice,
terms of payment, customs document.
 A Letter of Credit (Lc) – This is a document that guarantees the buyers for the
payment to the sellers. This document is issued by bank that ensures full payment
with time to the seller. Sometimes when a buyer is not able to pay the bank covers
the remaining or full amount on behalf of buyer.
 Packaging List- This is an exporting packaging list that has detail document
which states packaging details contained in shipment and all the goods details. The
shippers create a complaint packaging list document to share shipping lines,
freight forwarders, importers and more other parties with the supply chain.
 Commercial Invoice- In simple words, the export documents is which serves as
legal evidence of sale transaction between the seller and buyers. This document is
mainly used for clearance purpose which is related to customer and helps in the
assessment of duties, determination and taxes payable.
 Customs Document- One of the main documents of export is Shipping Bill that is
required by the customs Authority for allowing shipment. A shipping bill is issued
to represent some kind of certificate for all the parties that includes ship’s buyer,
owner, seller and other parties and it is issued by shipping agent.

Justified recommendations on appropriate methods and countries to meet specific
business requirements.
 For HSBC company in order to expand internationally the company can use
franchisee and licensing method option because it helps the firm to manage their
expenses and costs.
 Proper training and brief for the company should be provided to management
department in order to run the functioning of the firm smoothly.
 This is important to analyse the business environment of the region in which various
opportunities and assistance can be enjoyed.
 The company can also use the social media platform like Twitter, Facebook and
YouTube etc. which will help firm to enhance the brand image in the target market.
CONCLUSION
This project can be concluded as the business global environment of business involves the
many components which involves the rules and regulation that results in restricting the free
trade within the different countries. This can be evaluated that SMEs enterprises faces many
opportunities and challenges which help them to achieve more business and success in the
market across the world. Furthermore, this is observed this project that UK is more involve in
trade agreements which helps in free trade without paying high taxes. At last, there is
recommendation of method which can be used by the HSBC firm and this company also
discovers the various roadblock which limits the commerce with the global market.
REFERENCES
Padmanabhan, J., 2022. Entry Mode Choices of Platform Companies Seeking Expansion in
International Markets. In Academy of Management Proceedings (Vol. 2022, No. 1, p. 13855).
Briarcliff Manor, NY 10510: Academy of Management.
Cabaleiro-Cerviño, G. and Burcharth, A., 2020. Licensing agreements as signals of
innovation: When do they impact market value?. Technovation, 98,
Nippa, M. and Reuer, J.J., 2019. On the future of international joint venture research. Journal
of International Business Studies, 50(4), pp.555-597. p.102175.
Cabaleiro-Cerviño, G. and Burcharth, A., 2020. Licensing agreements as signals of
innovation: When do they impact market value?. Technovation, 98, p.102175
Licensing- Through the licensing businesses has right to operate in other countries.
Through licensing the other person gets the opportunity to operate the small firms that has
built up goodwill and brand image in the target market and the person can also enjoy the
goodwill which helps to earn more profit in the future. Most probably its like franchisee.
This is cost effective and less expensive in the recent market.
Benefits of licensing -
 Cheaper than other businesses.
 Royalty in the business is included.
 This method has reduced the risk of operating the relationships in the business.
Limitations of licensing -
 Increased the competition in the targeted market.
 Also involves the limitation in hallmark on the specific goods that are produced by
the manufacturer.
Joint ventures -
The method of joint venture includes types of industries which has more than one owner of
the organisation. Basically, there are more than two companies in the joint venture method.
This includes the investment is done by the joint venture owners (Nippa and Reuer, 2019).
However, the both owners are liable of the liability and has various process this is followed
by the firm.
Advantages of joint venture -
 The owners share the liabilities in the business process.
 More benefit of sharing risk in the company.
Disadvantages of licensing-
 There can be conflict between the owners of joint venture business.
 There is not a single control over the activities and operations of the working
business.