Unit 43: Analysing International Markets and Strategies for SME Growth

This report delves into the intricacies of international marketing, focusing on the global business environment and its impact on Small and Medium Enterprises (SMEs). It begins with an introduction to international marketing and the opportunities it presents, using Brightstar Financials as a case study. The main body of the report is divided into three sections. Section 1 examines the global business environment through PESTLE analysis, evaluating the political, economic, social, and technological factors affecting SMEs. It also assesses the threats and opportunities in an increasingly competitive global landscape, including the benefits of global commerce blocs and the barriers to international trade. Section 2 focuses on the advantages and disadvantages of importing and exporting, distinguishing between merchandise and service imports and exports. Section 3 analyzes various methods for SMEs to tap into international markets, comparing and contrasting different approaches, and assessing their pros and cons. The report concludes with a summary of the findings and provides references for further study.

Unit 43 Tapping into
New and International
Markets
Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1

MAIN BODY..................................................................................................................................1
SECTION 1.....................................................................................................................................1
Explain global business environment in which small and entrepreneurial business operates.....1
Evaluate threats and opportunities that faces SME in an increasing competitive global
environment.................................................................................................................................4
Determine and analyse the benefits of global commerce blocs and concords.............................5
Explain various traffic and non traffic barriers that exist in international trading environments.
.....................................................................................................................................................7
SECTION 2.....................................................................................................................................8
Advantages and disadvantages of importing and exporting with a secure deal..........................8
Difference between merchandise and service imports and exports.............................................9
SECTION 3...................................................................................................................................10
Analysing Various methods in which SME can tap into international markets................10
Compare and contrast various modes of SME can tap into international markets, assess
pros and cons of each method.................................................................................................12
CONCLUSION..............................................................................................................................13
REFRENCES.................................................................................................................................14

INTRODUCTION
International marketing is the important part of the marketing functions which aid to
Explore the business in huge level of target market for higher growth, profit and company goals
achievement (Cateora,, Meyer, 2020). As it gives the opportunities for exchange of products and
services across the nation to reach and meet the need of numbers of international customers.
Through international marketing company can grow and develop within small period of time.
This is the way to extend the business for huge profit and brand value development throughout
the world. Brightstar Financials the SME which uses the technological support to manage the
financial part and payment process of the customers. Brightstar Financials Bradley is the
managing directer and Dennis is the chief financial officer who has boosted their start-up with
over the last five years, that is Headquarters in Billericay, United Kingdom. This project is
involving the exploration of global business environment along with the analysis of industrial
forces and it impact. This is also including evaluation of non-tariff and traffic barriers, along
with the analysis of importing and exporting advantages and disadvantages between merchandise
and services (Lahiri, S., Mukherjee, D. and Peng, M.W., 2020). Moreover it involves the various
ways of getting access into the international market.
MAIN BODY
SECTION 1
Explain global business environment in which small and entrepreneurial business operates.
PESTLE analysis
This is the macro environment analysis tool aid to identify the changing external force,
external environment are the key elements of business which effects the national and global
market function of the organisation and they have to plan, manage strategic component
according to those changing force. such as politics, economy, society and all. External force's
and its effect in context to the Brightstar global business development is given below.
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Political- This involve the major elements which effect the business plan and growth at
both national and global level. Such as in context to global level it involves the different political
agenda and decision related to the business organisation. Bright star has to analyse and asses all
these elements before planning for global business. Because political agenda is can be about
employment, business process and company have plan according to all those elements, such as
tax policies and tariff (Pavel, S. and Supinit, V., 2017).
Economical- This external force is involving the economic condition and performance
of the nation which directly affect the, affordability of customers, cost of the sorceress and
finally the pricing strategies of the organisation. So it has been analysed that at present economic
conditions of the different nation is at loss due to the pandemic situation of COVID, so
Brightstar organisation have to take their step according to that.
Social- This factor is involving different needs and demand of the society according to
their ethics and trend. At present condition every one want to make the finical security and this is
the beneficial force for the Bright star (Watson IV, and et. al., 2018).
Technological- This is the new developing external force for the business organisations.
Company have to adopt new updated technologies more effectively in compare to their
competitor so that they can meet the competitive edges with effective techniques. For Brightstar
this force is beneficial because it will help to reach the global level customers with the aid new
technology.
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SME- From (Liberto) 2020 point of view small medium organisations are the enterprises
which run their company with small amount of human resources and business assets. These type
of organisation run with low investment but contribute the economic growth due to, huge
number of SME and employment opportunities.
SME contribution to the economy- SME are the key to run at international level, these
are the small size which require law investment and higher innovation. Different SME at various
location contribute to the development of people and give the huge employment opportunities.
So through its involvement in higher employment, it is related to the national and international
economy. And then its trading to the multinational level contribute to economic growth by
provide the opportunity of trading tax to government.
Business is the essential process of product and services development along with its
serving to the customers according to their needs and global environment is the different areas
and place which offer the huge opportunities for businesses through which they can fulfil of
different cultural, social, personal and medical needs of the customers (Paul and Mas, 2020). So
the global businesses environment is the biggest field which offers the huge opportunities for
business and industrial growth. With multiple resources and no secular boundaries. In prospect
of this it has be fund that the importance of business in UK has to be divide and effectively
discuss according to the requirements of the global business. It has been analysed that in Britain
with the marginal limitation SME units has provided their grate contribution it that along with
the earning of millions of revenues.
SME can enter into the global market effectively with the support of large companies in
terms of finance and resources. And then they can achieve their objectives with in selected
period of time. This can be known as the implementation of lower traffic rules for the correct
activities and functioning of organisation in international level along with the production and
offering of quality products and services. Otherthan rules of the various nation it encounter the
dynamic market and growth ( Tolstoy, D., and et. al., 2020). For example, Brexit which caused
the Majority of changes on trading business and mostly effect the businesses units which work
outside of the nation. From the application of Brexit policies, it has changed the multiple
techniques and drivers, which effects the performance of the SME and their staff. For the UK
international marketing is the best process to increase their economy and due to this they have
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got the GDP ratio. This work as a profitability idea for the organisation to create the SME in
order to make job opportunities for longer period of time along with earning of higher profit. If
the huge numbers of SME work in the international level then it can highly contributes towards
the increasing economy within high income group (Roxas, Ashill and Chadee, 2017). This can
improve the political unset along with development of country in terms of different economy in
very productive manner. So this process of the globalisation is can be crucial to increase the
economy of country.
Evaluate threats and opportunities that faces SME in an increasing competitive global
environment.
There in the developing nation and increasing competition, there is huge opportunities
and threats for the SME company's. As due to the developing technology's organisation can
make their operational system more effective and they can expand their business at international
level due to the increasing demand for product and services. So there is one of the most effective
opportunity for business organisations to extend their business along with the improvement of
living standards and employment, that is international marketing (Julien, ed., 2018). There are
some threats related to this process given below (Ahmad, 2018).
Threats for SMEs:
In this competitive world SME can face the various issues for the implementation of
international business plan. As SME companies are small scale business organisation with
selected and lower number of staff members. Their turnover is low due to small target market
and productivity. All these factors are can be a causes of major issues which prevent the
functioning of global level business plan. Some of the common issues faced by SME are lower
amount of resources such as lack financial stability, land, lack of the specialized workers and
employees and market availability. All these factors prevent the organisation to accomplish their
objective of international business. Sometime the economic stability of country impact goal
achievement of company. For Bright star is can be customers dissatisfaction and higher cost of
the employees at different nation.
Opportunities for SMEs:
Increase revenue potentials: For the SME organisation there are the multiple
opportunities along with the international marketing. Brightstar can increase their sale by
targeting the international market, they can get the higher brand revenue, company can make the
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huge amount of their brand customers at global level. All this factors aid to increase profitability
of company. By the effective pricing and marketing strategy organisation can make the large
market share over the competitor with in the small time. Globalisation is the influencing way to
achieve the success goals of organisation (Hartland-Thunberg, P., 2019).
Diversifying company market: Brightstar can target the various type of market with
the help of globalisation, then they can diversify their business with effective planning and
services. For this company should analyses and understand the social needs and personalized
needs of customers (Rua, França, and Ortiz, 2018). By this organisation can be able to satisfying
the customers and make the large sale with the huge level of market.
Determine and analyse the benefits of global commerce blocs and concords
According to the Trading blocs (2021), Trading blocks refer to a type of accord with
government bodies for the complete removal of legislations and regulations which are
implemented to limit commercial relationships and business activities between various nation
states to ensure maximum participation of each nation in various business and commercial
activities and trading operations. Various obstacles to trade are eliminated by trading blocks
which include tariffs, import license, reduction of currency value, subsidies and many others
(Hartland-Thunberg, 2019). It is determined that trading blocks and similar accords are contract
between various countries of a particular region formulated to help each member of the
agreement to engage in commercial activities free from any barriers and under the rules of the
accord. This is beneficial to each country as it is helpful in igniting perpetual economic growth
of that region.
Trade blocks provide several advantages to corporations present in that area as they have
the freedom to conduct various commercial activities with different countries without the barriers
of taxes and tariffs. UK is a member of the EU which empowers the country to engage in free
trade with any member country of EU (Molan, A.M., Rezapour, M. and Ksaibati, K., 2019). UK
has detached from the EU after the execution of Brexit and has formed trade accords with other
global nations in business world (Hofmann, Osnago and Ruta, 2019) . One such trade accord is
related to the trading block of CARIFORUM-UK accord of economic relationship. This helps
UK to engage in free commerce between various countries such as Barbados and Bahamas.
In addition to this, another commercial accord formed by Britain includes SACUM-UK
economic partnership agreement. This accord states that corporations in the region of trading
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blocks are allowed to conduct business activities with southern countries such as South Africa.
The area of south Africa has a huge amount of valuable natural resources. So if the corporations
based in Britain are able to form a business relationship with South African countries, they gain
the benefit of importing their commodities without any obstacles such as taxes and import duties.
The enactment of Brexit resulted in Britain becoming country allowed to conduct
business operations with various 163 countries in accordance with regulations of the WTO which
mentions trade accords between UK and other countries (Joshua, 2017).
Preferential Trade Area- This is the type of trade bloc where different nation's get agree to
remove or reduce tariff barriers for some selected goods coming from other country. For
example, north America is having free trade agreement in custom unions such as EU.
Free Trade Area- This type of trade considers between those countries and on condition.
Where tariff barrier is reducing for all types of goods and services coming from other member.
Example is north America is having this trading bloc, that is (NAFTA) and Europe free trade
association (EFTA).
Custom Union- This is the trade bloc where costume union remove the tariff barriers, within the
members and non-members. So they can negotiate as single bloc with other parties. Example is
Europe union.
Common Market- This is the trade bloc under which member nations can trade freely without
any barriers. By the removal of whole tariff and non tariff barriers. Asia Pacific Economic
Cooperation (APEC) (Thota, M. and Wang, K.W., 2017).
Various benefits of trading blocks are provided below:
Foreign Direct investment
This is helpful in increasing direct investment from various foreign markets which ignites
economic growth of the area. Apart from this huge markets are constructed from such investment
which result in reduction of costs of various products which results in affordable goods and
services for lower and middle income consumers (Kerremans and Switky, 2018) .
Effect of commercial activities:
Trading blocks result in increase of lower cost products with high quality with the
increase in import of various commodities. This helps the consumers gain access to variety of
choices with high quality.
Development of SME:
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Global trade agreements and trading blocks are helpful in development of SME as they
allow the enterprises to engage in exportation and import of different commodities without
barriers to take their business on an international level (Saad, A.F., 2019) .
Explain various traffic and non traffic barriers that exist in international trading environments.
Traffic barriers:
Transit duties: This is one of the traffic barrier which is face by every type of
international businesses (Tyler, Lahneman, 2020). That is a kind of government rules and
polices for the taxation charge of the trading. Through this government of different country
charge different amount of tax for the transportation of products and services from one place to
another. So this can be a major barrier for the small and medium size company's how work on
international level. In terms of financial and profit system of organisation (Haghighi, M., and et.
al., 2019).
Export traffic: This is the kind of responsibility barrier which is applicable to the
exporter of product throughout the nations. So according to this agricultural and minerals
products have to mage by the exporter carefully along with the TAX payment.
Import traffic: This is the barrier for the importers as custom responsibility they have to
charge the selected tax rate from the manufacture company. They law is imposed by the
importing country. Purpose of this rule is to protect the domestic company's by increasing the
revenue.
Non Traffic barriers: These barriers are the non taxes regulations which involve the further
more lawful processing. This majorly involves the restriction for the process of trading in the
form of Quotas, subsidies and embargo.
Quotas : This is the rule related to the quantity of goods and services which
should be limited according to that rule, in the process of exporting and importing. In prospect of
the selected organisation they use the online level of import and export by following all the laws.
VER ( voluntary export restraints: That is the facility provided by the exporting
country on the special request of importing country for the increasing limits of Quota. So
company can easily import the goods and services to their country with maximum quantity.
Subsides: This is the payment service provided by the government to their domestic
company's so they can compete with the foreign products (Kinderis, 2019). That is done by the
reduction in the row material cost and gaining control over the market.
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SECTION 2
Advantages and disadvantages of importing and exporting with a secure deal
The process of bringing the products and services of foreign country into home country is
known as importing. Here the main objective of the importing is to fulfil the requirement of
customers which is not facilitated by domestic organisation or country (Islam, Omar, Ghani,
and Mat, 2020). Company can make their brand famous at global level. But its excessive use is
can be threat or negative for the domestic organisation and economy along with this it can
impact the image of nation in terms of development and economical stability. Exporting is the
process in which product and services of the home country is sell into the different country's.
Through this method company can achieve their objective to make their brand globally present
and to get the higher profit from foreign income by the selling of domestic products. It is
beneficial for home country because it aid to increase the economical state of nation by the
achievement of foreign income (Hartland-Thunberg, 2019). The balanced implementation of
importing and exporting is the key to smoothly expand the business at international level. As the
Brightstar Financialis developing company of online payment management which is targeting
the the global market for their business objectives. They have implemented some import and
export methods for their services, but they require to make some more efforts with this method's
to make the organisation rich more country's.
Advantage of imports business
Through this good quality product and services is can be provided to the customers of
own nation which is not provided domestic organisation. Brightstar Financialis company can
introduce the new product into the market, which can aid them to meet the competitive edges in
comparison to the other competitor of same products. It can help to reduce the cost and select the
lower pricing strategy for business as it reduces the cost of manufacturing. This can be a key
mode to become the market leader of selected industry or business type.
Disadvantages of imports business
This process is can be risky for economical factor of nation. Some time this can lead
transportation of poor quality product. For this work organisation need to take license and this
take huge money to get licensing. It can posses the negative effect on domestic businesses. This
process is can be harmful for the economical stability and development of the country (Perez-
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Prada, and Monzon, 2017). Brightstar Financialis is not beneficial because they have to
provide their services to others and they don't need to import for that.
Advantages of Exports
For Brightstar Financialthis is very beneficial mode of business as it helps to get higher
profitability from foreign income. This process also helps to make the national economy
productive and stablish. Exporting of products is good for SME as it give the opportunities to
extend their brand products and make the higher sale at international level for huge profit and
organisation growth.
Disadvantages of exports
It is risky because it require the higher concern and monitoring of all steps and functions
of exporting. It make the dependence on international partners and on their resources. In context
to the Brightstar Financialis For this mode of business organisation need the higher skilled
mangers and employees. It can some time causes the lose of existing market and customers
(Jacyna, Wasiak, , Lewczuk, and Karoń, 2017). This can cause the higher administration cost
due to the export charges and tax.
Difference between merchandise and service imports and exports
Merchandising business is the process of selling pre-selected and ready products of
manufacturing company's. As in context to the Brightstar Financial people can make their
merchant account and offer the services of Brightstar Financialto their friends, family and
customers to get profit from that. So this is the type of business in which finished and prepared
product is use by the merchandiser to resell and get profit from it. In context to the other kind of
businesses such as clothings and grocery merchandiser can bring the product from manufacturer
and then resell it with their selected profit margin. But Brightstar Financialis not a merchandiser
they offer the merchandising businesses options to their customers and other peoples, in order to
get higher number of customers and services sell (Debashi, M. and Vickers, P., 2018). They have
to make it more effective with exiting offers and strategy's. Merchandising businesses is can be
local, import or export, it depends on the selection of manufacture and location for getting pre-
developed products for the sell.
Import and export services businesses are the firm which faces the various legal and
political factors to run their businesses. This name is can be given to the organisation which
provide both import and export services to international customers and supply of the
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international products. To run this type of businesses company need to have and follow some
legal assets, which is selected by the regulatory system of the different country's to run the
functions smoothly. This is different from the merchandising businesses because it involve the
same task with some more functions and procedures of international law and market procedures.
Brightstar Financialis e-commerce exports business which offers the online payment services
and security across the nation. Some time they merge with other online services company for
better services as they have signed the agreement between NIFT and Brightstar Financialalong
with the help of WeBoC to provide the E-commerce payment services (Proskuryakova, 2018).
So organisation can use all of these process (merchandise and service imports and exports)to
enter and stablish into the international market with implementation of all laws and rules.
 MERCHANDISE
 IMPORT
 MERCHANDISE
 EXPORT SERVICE IMPORTS
 SERVICE
EXPORTS: This is the process of bringing tangible products and goods in to the country. This is
process of sending tangible products out of the country. This is the process of business where
organisation pay for the getting the intangible services like , finical management, data
management, and so on. This is the process of commercialization of intangible services to the
other nation and customer of the other country.
SECTION 3
Analysing Various methods in which SME can tap into international markets.
In the competitive market every type of organisation try to explore and grow their
businesses within the implementation of different techniques and methods. Similar to this for
international market exploration there are the different method's to get enter into the
international market and to easily operates their company. In order to increase growth,
profitability and market-share (Blake, ORCID: 0000-0002-2453-2090 (2020). Some effective
methods use by the most of the organisation is given below.
Franchising: This is one of the cost effective process to penetrate into the international
market with brand image. In this process SME organisation can give their product and brand
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