Case Study: International Business Environment of StarTrek Shipping

This case study examines StarTrek Shipping, a Singapore-based multinational shipping company, and its operations within the international business environment. It delves into the company's background, its global presence, and the introduction to international business environment and trade law. The report analyzes factors influencing StarTrek Shipping's import and export businesses, including foreign exchange, goods in transit, non-payment, natural disasters, and free-trade agreements. It identifies challenges faced by the company due to international trade law, such as security threats, SOLAS compliance, alliances, and mergers. Furthermore, the study comprehensively evaluates the impact of these challenges on StarTrek Shipping's operations, including crew safety, operational costs, and market competitiveness. Finally, it provides strategic recommendations for the company to navigate these challenges, such as understanding destination regulations and improving shipment packaging. The report concludes by emphasizing the importance of adapting to the evolving international trade landscape.

International Business Environment & Trade
STARTREK SHIPPING CASE STUDY

Table of Contents
1. Scenario Introduction...............................................................................................................3
2. Overview of the Company.......................................................................................................4
3. Introduction to International Business Environment and Trade Law......................................5
4. Factors Influencing the Import and Export Business of StarTrek Shipping............................6
5. Challenges Faced by the StarTrek Shipping in Fostering Business Due to International Trade
Law7
6. Comprehensive Evaluation of the Impact of Challenges on the Operations of StarTrek
Shipping...........................................................................................................................................8
7. Recommendations..................................................................................................................10
8. Conclusion..............................................................................................................................11
9. References..............................................................................................................................13

1. Scenario Introduction
International business or trading practices can be defined as an operational practice of the
organization to commerce across the national borders. Due to rise incompetency in the
contemporary business-oriented market, the majority of the organizations adopt globalization in
order to seek better business and profitable market accessibility (Hill, 2008). In the simple
context, it can be described that the local competition of the market has made it critical for the
organizations to survive; therefore, to make the business more profitable and efficient,
organizations are moving to potential target markets of abroad. International trade practices
comply with various imports as well export laws from the national government. These
regulations are formulated to keep a check on the quality, quantity, and type of the product or
services that are being exchanged (Dunning, 2013). Along with this, it also helps the government
officials in maintaining the taxation records for the import and export firms.
In this context, a business report is undertaken by considering a Singapore-based
hypothetical firm “StarTrek Shipping” of import and export businesses. The central orientation
of the report is to make a crucial understanding of the essential contracts within the context of
‘law of international trade' from the perspective of import/company trading through seaways.
Considerations of the international business environment, trade law and factors influencing the
shipping business are vitally discussed in this report. Along with this, challenges faced by the
shipping company due to international trade law, the impact of challenges and some potential
recommendations are also discussed in the study, to facilitate the purpose of this report. Overall,
this report is formulated in a potential manner to meet the objectives of learning the application
of Trade Law in real practices.

2. Overview of the Company
StarTrek Shipping is a well-known multinational brand in the import, export and shipping
agency. The headquarters of the company is established in Singapore; however, the operations
are active all around the world. Due to extensive connectivity factor provided by Singapore,
StarTrek Shipping operates in more than 80 countries all around the world. The company was
established in the year 1995 as a sea-way shipping company. With time, in 2006-2007, the
company expanded its business because of consistent support from the customers. The shipping
consignment started carrying Japanese steel products, coal, iron, forest products, various ores,
plant cargoes and grains to the United States and Southeast Asia.
Presently, the company is highly established to serve its customers with modern
controlled fleets of 550,000DWT, ranging from 4000DWT to 40,000DWT. Moreover, the
company also owns chartered vessels, which are a consistent requirement throughout the year in
the shipping industry. In recent times, the company has acquired the emerging markets of China,
India, and the Middle East countries by exporting cargoes, construction machines and latest
Ro/Ro and PCTC vessel vehicles. The policy of the company is strictly aligned to continue
challenging new fields and provide satisfactory services to the customer.
In addition to this, StarTrek Shipping is potentially involved in many other services such
as crew management, ship consultants, new building supervision, project management and yacht
management. Furthermore, the company is also involved in the business of offshore services,
technical management, ship finance and Oil & Gas Ship Management Service, with an objective
to facilitate the organization in terms of maximum profitability and access to potential market
opportunities.

3. Introduction to International Business Environment and Trade Law
In the competitive era of the modern economy, international business is considered as an
enormously pertinent facade. International business is collectively defined as the summation of
commercial communications that took place between the two or more countries by trading across
the political boundaries. Policies of international trade environment are not restricted to business
practices only, as government, NGOs and other administrative bodies also operate across the
national border without considering profitability (Wild, Wild, and Han, 2014). In the simple
context, the term international business is an extensive contribution of trades and transactions of
the global market. The inclusion of trading into goods, services, products, and knowledge falls
under the consideration of the international business environment. Sometimes, worldwide trades
are aligned with the globalization of company, which indicate the trading of investment,
information technology, goods, services, capital and outsourced manufacturing (Büthe and
Milner, 2008).
On another side, international trade law is used to define a set of norms or regulations
that are potentially used by companies to manage trade relation between two or more countries.
Even, the private sector organization uses trade law as a legal writing to handle trade between
different countries. Trade Law, in itself, has become an independent branch of law study because
a majority of the governments became part of WTO (World Trade Organization). The following
branch has gained enormous significance in the recent years due to the necessitation of trade
relations between various countries. In order to sustain the competency of the market, WTO
activities are crucially considered by the organization; therefore, the academic association of
trade law is augmented in many universities across the world. Attributes of international trade
law are widely separated from the vast field of international economic law (Weiss, Jackson and

Bernasconi-Osterwalder, 2008). Overall, the contemplations of the international business
environment, as well as international trade law, are centrally oriented to facilitate the
contemporary organizations in gaining market values and business opportunity under the
scrutiny of trade regulations and values.
4. Factors Influencing the Import and Export Business of StarTrek Shipping
Import and export are one the market-leading businesses due to its association in various
countries. People interested in sales and diplomatic business character consider it as an ideal
occupation. Whereas, there is no denying the fact that this business is highly vulnerable to
various politics, economics, and legislative changes. Out of it, some potential challenges are
mentioned below:
 Foreign Exchange: Prices committed for the shipping service can also vary due to
change in exchange rates and inflation rates of two different countries. Different currency
rates of different governments complicate the trading of products and services without
currency hedging (Serra, Pointon and Abdou, 2012).
 Goods in Transit: Security of the goods that are transported is also a crucial factor for
the shipping factory. The goods in transit can get damaged, theft or destroyed, thus the
shipping industry needs to carry insurance from the manufacturer to the buyer, who is
living across the geographical precincts (Serra, Pointon and Abdou, 2012).
 Non-Payment: Shipping industry is also debilitated by non-payment services to a great
extent. Bankruptcy and political commotion bring challenges for the import/export
businesses, as it makes the client disinclined to pay for the services of importing goods
(Shenkar, Luo and Chi, 2014).

 Natural Disasters: Sea-way transport companies are highly prone to get affected by
natural disasters such as Tsunami and volcanic eruptions, which further leas to great loss
in the business. Even, the insurance companies provide a limited degree against the
natural disasters and thus, only the companies have to bear the trouncing (Albaum and
Duerr, 2008).
 Free-Trade Agreements: Government policies between two or more countries to
remove tariff barriers for trading goods and services can hamper the operational practices
of the company. These agreements play a significant role in settling the trade disputes
between two countries by acting as a legal trade framework (Shenkar, Luo and Chi,
2014).
5. Challenges Faced by the StarTrek Shipping in Fostering Business Due to
International Trade Law
StarTrek Shipping is a multinational organization, which posses’ giant market value of
Singapore’s shipping industry. Extensive engagement in the import and export trade practices
comply the organization to deal with international trade law. It is a set of regulations formulated
to facilitate the smooth execution of trading between two different countries. However, some
impending trade law challenges faced by StarTrek Shipping are presented below:
 Security Threat: Many countries across the world are very hospitable to multinational
shipping companies, but security concerns about the imported and exported products are
negligible there. StarTrek Shipping is hesitant to incidents such as piracy, armed robbery
and cyber crimes as concerned national authorities are least involved in the services
(Redfern, 2015).

 SOLAS Compliance: Implication of SOLAS Compliance has made shipping industry an
organized business venture. Now, the vessel operators are ordered to load only the
packed containers having Verified Gross Mass (VGM) declared by the shipper. This
made StarTrek Shipping emphasize especially on the recruitment of effective
management for vessel operations (Redfern, 2015).
 Alliances and M&As: Due to disproportionate competition in the shipping industry,
companies are constantly heading to make things and services cost-efficient and
profitable. Due to improper trade law standards about port shedding and port operations,
StarTrek Shipping is challenged by various alliances. Moreover, the company is also
oriented to introduce more cost-efficient ships and third party logistics business (Mingst
and Arreguín-Toft, 2013).
 Increased Consolidation and Mergers: Due to intense competition in the shipping
industry, companies are incorporating consolidation and merger practices of fragmented
units. This is explored as a critical challenge for StarTrek Shipping as the competitive
organizations will become a Giant body in terms of capacity, manpower and operations
after the merger (Mingst and Arreguín-Toft, 2013).
6. Comprehensive Evaluation of the Impact of Challenges on the Operations of
StarTrek Shipping
The aforementioned challenges, faced by StarTrek Shipping gravely affect the
functionality and development policy of a shipping industry. Along with this, it also impinges on
the operational strategy by manipulating the proposed business objectives. A critical evaluation
of the impact of challenges on the operations of StarTrek Shipping is discussed below:

 Due to lack of security arrangements in the midst of sea-ways, ship crew and other
officials risk their lives to transport the goods, products, entities, and services. It leads to
the generation of a feeling of distrust and trepidation among the crew, which will
unswervingly hinder the individual efficiency and manpower (Bernard, Jensen, Redding
and Schott, 2012).
 Though incorporation of SOLAS Compliance simplified the overall vessel operation by
using Verified Gross Mass (VGM), StarTrek Shipping was challenged as it has to hire
skilled employees for the appropriate execution of the proposed strategy (Koskenniemi,
2009).
 Consideration of various alliances and M&As complicated the business practice for
StarTrek Shipping. Along with effective operations, cost-efficient business practices also
became a matter of challenge for the company (Chuah, 2009).
 The rise in consolidation and mergers of other fragmented companies enhanced the risk
factor and competition for StarTrek Shipping. The collective power of two or more
business bodies will conquer the potential market opportunities of the company (Bernard,
Jensen, Redding and Schott, 2012).
 Due to unified international trade law, StarTrek Shipping will also visage the problem of
economic interdependence. Moreover, rise in the globalization of service; product and
company will further facilitate the attributes of economic interdependence (Koskenniemi,
2009).
7. Recommendations
The following business is a globalized network of transport and therefore, StarTrek
Shipping faces new challenges every day. In order to deal with the business challenges faced by

StarTrek Shipping, due to international trade law, some potential recommendations are presented
below:
 The organization is recommended to understand the regulations and judicial system of the
destination. Every country comprises different culture, custom, ritual and services,
therefore, prior indulgent about the regulations and system will help the company in
serving the customer to a better extent (Yuen and Thai, 2015).
 The company is further suggested to emphasize on the packaging of the shipment
material. Precious entities should be packed and transported in special cases or safes to
protect damage, theft or other accident (Omrani and Keshavarz, 2016).
 StarTrek Shipping is further advised to decide the port shedding and port operations after
considering the options carefully. This will help in making the services more cost-
efficient for the company (Wilmsmeier and Hoffmann, 2008).
 The organization is also directed to keep a written record of the sender as well as the
receiver. Even, information about the entity, which is to be shipped, should also be
acknowledged by the company (Yuen and Thai, 2015).
 The company should not rely excessively on the vendors, port administration, and third-
party transport business. Credible information about all these bodies is obligatory for the
shipping company (Wilmsmeier and Hoffmann, 2008).
8. Conclusion
On the basis of discussions and arguments presented above, it can be concluded that
StarTrek Shipping is a renowned organization of Singapore in the sector of shipping, import and
export businesses. Since 1995, the company is in the business of transporting through sea-ways.

Consistent business support from the customers helped the company in expanding its business by
implementing effective business policies. The rise of globalization made StarTrek Shipping
comply with the regulation and norms of international trade law. In this context, the
aforementioned report is considered to vitally discuss the relevant aspects of international
business environment & trade of StarTrek shipping. A crucial discussion over international trade
law and the globalized business environment is incorporated in this report to present enlightening
information over the proposed topic. Along with this, the study has even explored some potential
factors that influence the import and export business practices of StarTrek Shipping.
Besides, this study has also made a comprehensive discussion of the challenges faced by
the company in business progression due to international trade law. For instance, security
services, SOLAS compliance, mergers, and consolidation are few examples of the explored
challenges. Afterward, the impact of the following challenges over the business practices of
StarTrek Shipping was also examined in the following research report and on its basis, some
imminent recommendations were also proposed to the company. The implication of the proposed
actions will lead to the overall and sustainable development of StarTrek Shipping. Overall, this
research report can be considered as an informative piece of research work on the proposed
topic. The orientation and execution of the report have vitally justified the central idea of the
discussion. Moreover, the findings of this academic literature will be a significant contribution to
the discussions of international business environment and trade law. Inclusive discussion of
international business venture aligned with StarTrek Shipping has backed the research in meeting
the purpose of the study.

9. References
Albaum, G. and Duerr, E., 2008. International marketing and export management. Pearson
Education.
Bernard, A.B., Jensen, J.B., Redding, S.J. and Schott, P.K., 2012. The empirics of firm
heterogeneity and international trade. Annu. Rev. Econ., 4(1), pp.283-313.
Büthe, T. and Milner, H.V., 2008. The politics of foreign direct investment into developing
countries: increasing FDI through international trade agreements?. American journal of
political science, 52(4), pp.741-762.
Chuah, J., 2009. Law of international trade: cross-border commercial transactions. Sweet &
Maxwell.
Dunning, J.H., 2013. International Production and the Multinational Enterprise (RLE
International Business). Routledge.
Hill, C., 2008. International business: Competing in the global market place. Strategic
Direction, 24(9).
Koskenniemi, M., 2009. The politics of international law–20 years later. European Journal of
International Law, 20(1), pp.7-19.
Mingst, K.A., and Arreguín-Toft, I.M., 2013. Essentials of International Relations: Sixth
International Student Edition. WW Norton & Company.