Tapping into New and International Markets: Red and Blue Restaurant

This report examines the international expansion strategy of Red and Blue Restaurant, an SME currently operating in Liverpool, with a focus on entering the Scottish market. The analysis begins with an introduction to Scotland, considering its geographical location and its place within the United Kingdom. It then delves into an analysis of the global business environment, highlighting the impacts of climate change, governmental policies, and Brexit, and utilizing a PESTLE analysis to evaluate the political, economic, social, technological, legal, and environmental factors influencing business operations in Scotland. The report further explores the rationales for SMEs to expand internationally, emphasizing revenue generation and market share expansion, and discusses how SMEs can capitalize on international opportunities through effective market research. It also explains various trading blocs and agreements (preferential trade areas, free trade areas, customs unions, common markets, multilateral agreements, and bilateral agreements) and details tariff and non-tariff barriers. The report concludes that tapping into new markets benefits SMEs and identifies key drivers such as technological advancement and international trade that influence SMEs in Scotland, providing a comprehensive overview of the challenges and opportunities in international expansion.

Tapping into New and
International Markets
LO1 and LO2

Table of content
 Introduction
 Introduction to the chosen country and region
 Analysis of global business environment
 Rational for SMEs to expand their business internationally
 Critical evaluation of the way in which SMEs can take advantage
of international opportunities
 Explanation of trading blocs and agreements
 Explanation of various tariff and non tariff barriers
 Evaluation of international trading blocs and agreements
 Conclusion
 References

Introduction
The SME which is selected for this project is Red and Blue
restaurant which will expand its business in Scotland it is
currently operating business in Liverpool. The main objective
of the organization is to attain growth for which it has planned
to expand business in a new country.

Introduction to the chosen
country and region
The chosen country and region are Scotland, United Kingdom.
Red and Blue is currently established in Liverpool which will
expand its business in Scotland to attain growth and
development. This nation is a part of UK and covers the
northern third of the island of Britain. Its south and west part
is surrounded by Atlantic Ocean and the north-east is
surrounded by North Sea.

Analysis of global business
environment
Global business environment is the combination different types
of factors which are leaving impacts upon functionality of a
business. Main purpose of analysis it is to make sure that all
the elements which may leave negative impact upon a business
are analysed in advance and effective strategies are formed to
deal with them. The global business environment of Scotland
is highly impacted due to climate change, governmental
policies and Brexit.

Continued...
Technological advancements: The level of this driver in
Scotland is very high which helps the country to contribute a
higher percentage in the overall GDP of UK.
International trade: Percentage of it in Scotland is very high
which is benefiting the business entities to execute their
operational activities in systematic manner.

Continued...
Global business environment can be defined as the environment in
which different countries are operating business around the world
to attain growth. It is very important for all the entities to make
sure that they have detailed information of it as it is required to
formulate effective decisions for growth of the organisation. As
Red and Blue is planning to expand its business in Scotland so it
is vital for it to analyse it. In order to assess the global business
environment PESTLE analysis could be used by Red and Blue
Restaurant.

Continued...
Political
Economic
Social
Technological
Legal
Environmental

Rational for SMEs to expand
their business internationally
SMEs are the businesses which are benefiting countries to be
in a stable position so that the fluctuation in GDP could be
ignored. For all such types of companies it is important to
expand their business internationally.

Continued...
Rational of it could be understood with the help of following
points:
Main reason for international expansion is generating higher
revenues and capturing larger market share.
By expanding internationally SMEs will be able to grab
foreign direct investments which will help to perform
operational activities properly.

Critical evaluation of the way in
which SMEs can take advantage
of international opportunities
For all the SMEs it is vital to make sure that they analyse the
international opportunities and take advantage of them. For
this purpose, effective market research could be conducted by
them which can guide them collect detailed information about
taste, requirements and preferences of potential customers who
are targeted by them.

Explanation of trading blocs
and agreements
Trading bloc can be defined as a intergovernmental
contract which is made by some countries to import
and export appropriately. There are several types of it
which are as follows:
Preferential trade area
Free trade area
Customs union
Common market