Senorio de Begue: International Trade Project Analysis Report

This project report focuses on the international trade strategies for Senorio de Begue, an oil industry business. It begins with an introduction to international trade, highlighting the benefits of global market expansion. The report then studies the product and industry, focusing on Senorio de Begue's olive oil products and its current market position in Spain. The core of the project involves analyzing potential countries for market entry, including the UK, Cuba, and Malaysia, using PEST (Political, Economic, Social, and Technological) analysis to assess their external environments. Furthermore, the report conducts a market study for these three countries, considering factors such as registered agents and WTO regulations, to understand the oil market dynamics. The report concludes with an overview of the advantages and disadvantages associated with each country and provides recommendations for successful international trade operations.

Project International Trade

Table of Contents
INTRODUCTION...........................................................................................................................1
Study about the product and industry..........................................................................................1
Potential countries to enter in market with analysis of external situation...................................2
Market study for three countries regarding oil market................................................................5
Advantages and disadvantages that are related with countries...................................................6
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
International trade states as the process that is used to transaction between goods and
services at multi-national level. In simple terms trading globally provides large market area for
consumers to offer large number of opportunities with exposed of goods and services available in
countries. It also offer opportunities to offer and exchange goods at minimum prices and to
increase customers area for offering large number of products to customers. The report is
composed from point view of Senorio de Begue which is operating their business in oil industry.
The major concern for this report is to offer business products at international trade for
expanding market area (Arjona-Fuentes and Amador-Hidalgo, 2017). Moreover, this report
highlights on study of products and situations oft three different countries to enhance business in
this countries. In the last, market study related with oil market is also included in this report.
Study about the product and industry
Global economy is enhancing business size among all industries with rapid speed by
offering new and innovative products within country. The major operations of Señorío de Begué
are performed in crushing industry in order to offer its products in food processing industry. In
present scenario, most of market area which is covered by management is of Spain as company I
originated form Jaen. There are various task are performed by management that enhance market
area by offering good quality of products. This refers to manage all task and food items in
effective manner by offering detailed description about products.
Large number of products such seeds, mustard oil, virgin oil, crushing seeds, process
food, beverage items etc. But in present scenario, majority of the sale about organisational
products comes from olive oil. It also leads company to gain better position in market because of
high revenues or profits. Along with this there are various task will be included in this report that
leads business houses to capture high market area through offering large variety of Olive oil
products. Example- Extra virgin olive oil, refined olive oil, crude olive oil etc. it all are designed
with motive of enhancing market area (Bayramer, Tunalioglu and Karatas-Ozkan, 2016). It also
governs to manage its task with approach of increasing business area at local as well as
international level. Within context of Spain Picual, Lechin, Picudo etc. are some products in
which company deal and competing with each other effectively. Moreover, the major benefit
achieved by Señorío de Begué is that Spain is well-known and prosperous for their olive oil
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among all over the world that work as positive factor for management to enter into international
market.
International business enhancing market size similarly its also increases competition
within companies to gain the position of top exporter. Rafael Salgado, Deoleo, Eusebio Garcia,
Martin de prado and many more are some major companies which is dealing in market of Spain
and other countries (Beltrán and et. al., 2015). So it is also mandatory for Señorío de Begué to
increase their business size by offering their products at international level. In order to gain
competitive edge in market management is focused to perform their task by influencing and
demonstrating culture of Spain in their products.
Potential countries to enter in market with analysis of external situation
International trade leads business to enter into market within effective manner by
approaching customers at global level. Example- E-commerce platform leading companies to
represent and deliver their products outside local boundaries of country. Three different countries
from Europe, Latin America and South-east Asia with analysis about their external situation is
considered as follow:
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Illustration 1: Source(https://www.wsj.com/articles/spanish-drought-prompts-fears-of-
widespread-olive-oil-shortage-1408102214)

Europe countries- United Kingdom is the selected country of Europe Union. So to understand
oil market PEST is implemented to understand overall market. Political aspect- UK is a wide democratic country that is open for new business ideas
and techniques. It also refers all types of government rules, regulations, policy are
undertaken in political factor to perform all task according to government rules. From
perspective of Oil industry UK government develop flexible rules to produce and deliver
oil in effective manner (Cafarelli and et. al., 2017). Economical aspect- Monetary transaction are the major concern for organisation which
leads management to earn sufficient amount of profits. Señorío de Begué earn more
revenue from local market. But in context of UK, Brexit directly impacted on sale of
organisation. Due to which sale of Olive oil is directly impacted that reduces profits.
Along with this it also impacts on purchasing power of consumers so it work as negative
aspect for organisation. Social aspect- Within context of UK most of the residents belong to different countries
that belongs to different backgrounds and follow a assorted with separate taste. It
determines that there are various task will be managed by Señorío de Begué to pursue
long term benefits from operations. Therefore, it work as positive factor for organisation
as it increases sale of organisational products because of large customer base.
 Technological aspect- Innovation and creative are most important part for organisation
which leads business to complete their work effectively. UK easily adopt high
technological tools for performing work in effective manner (Caporaso and et. al., 2015).
Moreover, it also offer positive factor for Señorío de Begué because local workforce of
UK is aware about technological tools and easily adopts learning methods.
Latin America- CUBA is a country that comprises to invite and increase number of trade
activities in organisation. In context of external situation about olive oil market is mention as
follow:
 Political aspect- In present scenario, there are various task will be managed by the
government to perform all work effectively. President, Secretary and ruling government
developing effective methods to perform all task with in ethical manner. In context of
olive oil it is a positive factor for organisation that boost sale of olive oil products.
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 Economical aspect- The economy of Cuba is well planned and largely dominated by
State run enterprise. Along with this it is increasing their business size with rapid speed
it refers that there are various task will be managed by organisation that is leading
management to earn good revenues from oil market.
 Social aspect- Most of the existing population of Cuba belongs to Urban areas it
determines that they are well educated and performing all task in proper manner (Coq-
Huelva and et. al., 2014). Moreover, most of the residents prefer to perform business so
in context of Oil industry it works as a positive aspects for organisation to enter in
market as well as to increase business size.
 Technological aspect- Cuba is facing various challenges to perform its operations with
implement of technology. This is because people face difficulties to access internet
because of low service provider. It results cost to perform work with use of technology
and internet increases. Modern computers and networks are most essential part to
perform functions but to low involvement in technology oil market face difficulties in
exporting and importing of products.
South-east Asia- Their are large number of organisation will performing their work as per
country rules and regulations. In context of South-east Asia Malaysia is selected as it provides
large market area for customers to complete task in effectively. Pest in context of Malaysia is
mention as follow: Political factor- Political factors impact directly on operations and functions of a
business. Their are various challenges are faced by Señorío de Begué such as sudden
changes in international rules and regulations impact on overall performance through
impacting on hosting and guest country (Felzensztein and et. al., 2014). Moreover, in
context of South-east Asia various challenges faced by management because of
ineffective utilisation of resources (Yang and et. al., 2016). Economic factor- Its directly effect the economy which change the inflation rate of
Señorío de Begué olive oil in south east Asia. The Señorío de Begué olive oil has to face
many problem which are high interest rate, changes in foreign exchange rate, increasing
in GDP and also affect the stage of economic cycle. The impact of economical factor
result in changes of aggregate demand which make highly profitable or may incur losses
for company. In south east Asia, due to high level of unemployment it makes easy for
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Señorío de Begué olive oil to recruit people at lower wage. This will bring positive
outcome to their net revenue. Social factor- This factor is directly effect in society which are culture, belief, morale
and values. Señorío de Begué olive oil should understand customer standard of living,
belief, values, community, society is very different in south east Asia as compare to
other countries. Señorío de Begué olive oil has different market segment in their country
but in south east Asia the business environment scenario is totally different. Señorío de
Begué olive oil should study the intersect and priority for target customer and then
design their product accordingly in south east Asia (Yang, 2018). This will help the
company that they should not promote premium product in south east Asia because
majority of population belongs to lower class.
 Technological factor- The rapidly changes in technology factor effect price structure
and increasing competitor for Señorío de Begué olive oil. The Señorío de Begué olive
oil should adopt new technologies which may led to increase in cost of product and also
affect their revenue. This will frequently increase or reduced profit of Señorío de Begué
olive oil in south east Asia. Señorío de Begué olive oil should update their technology
time to time which help to increase production in short time period that is beneficial for
their employees.
Market study for three countries regarding oil market
International trade work as an essential tool that is leading companies to gain top position
in market through capturing large market area. Señorío de Begué is concerned about increasing
their business size through performing all task in exact manner. This is leading individuals to
distribute products at local and international level. The main concern for international trade is to
manage work as per documents, agents, tariffs etc. It also leads organisation to manage their
work as per management to complete all task in minimum time period. In simple terms it is
defined as rules to operate business in local industry is different from international market. Some
rules that are related with expansion of business at international level are mention as follow:
Register agents- Retain of business with register agent of a country leads company to
perform their operations according to plans and ideas. In context of Señorío de Begué all task are
performed by management through considering all task and management in proper manner. It
also leads company to manage their work with motive of lawsuit that enhances companies and
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employees engagement in organisational functions. Like if company plan to enter into foreign
country than management concerned to do all operations with law suit (Gorini and et. al., 2019).
Therefore, agents leads company to perform work as per olive oil industry. In context of all
countries oil market it work as positive factor for companies to perform work with register
agents in order to complete all functions properly.
WTO- World trade organisation serve as a regulatory function that is increasing number
of business operations as per global standards and level. According to the preeminent world trade
organisation this also forms as a number of clearing house within companies. Along with this
within context of respective organisation WTO leads companies to perform their work by
solving dispute that take place within market. Along with this by familiar with WTO functions
management is able to perform work with WTO functions that leads to complete work as per
international business area.
Operating regulations- Señorío de Begué is originated from Spain so it is aware about
their local rules, policies etc. but while expanding business in international trade such as Europe
it is essential to sign all contracts with suppliers and many more. This results all task which are
performed by management are generated towards gain of benefits from organisation.
International regulations depends to avoid violation within two parties. International treaties
generates rules which boost overall treaties and regulations by learning and adopting skills which
is increasing business legal counsel of countries (Hoppner and Griffith, 2015).
To become familiar with local acts- Latin America follows different rules and
regulations that are largely different from other countries. It also refers that there are various
roles must be managed by organisation to perform their task as per international trade. Olive oil
of Spain is unique and different so it work as positive tool for organisation. This determines all
operations are performed with motive of managing functions as per cost of local country.
Example- Señorío de Begué belongs to Spain which is well developed and South-east countries
are at developing stage so it leads management to perform work at low cost.
Advantages and disadvantages that are related with countries
Global trade is one of the most complex and compulsory task for organisation which is
increasing business size that leads management to perform all operations in effective manner.
According to existing market conditions all industries and companies are performing their work
as per international level (Kanibir, Saydan and Nart, 2014). So it is also essential for
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management to manage its task and then deal companies to gain better results from all of its
operations and functions. Some advantages and disadvantages related with current selected
countries are mention as follow:
Advantages in context of Europe Eco-friendly policies- When European countries are performing their work as per
management to manage environment within effective manner. Olive oil products are used
by residents on daily basis. This defines it is mandatory for management to manage their
operations with policies that are environment friendly. So Señorío de Begué gain
advantage to enter in market because of its organic food.
 Reaching new market- Señorío de Begué and its management are totally aware about
local market and policies under which an organisation perform their work effectively.
This also refers that there are various task managed by companies to enhance its business
size. In context of UK it work as positive factor for Señorío de Begué because it helps to
gain large customers base (Mili and Bouhaddane, 2019).
Disadvantage in context of Europe
 Foreign rules and regulations- In context of organisation and their rules it is mandatory
for Señorío de Begué to follow all rules which is time consuming process. Along with
this it also work as a cost expenditures. So overall impact on organisation is not positive
for management.
 Handling logistics- The major function of international business is to complete all task
as per import and export. This defines due to complex transport facility there are various
challenges faced by management which impacts on business functions and operations.
Advantage in context of South-east Asia
 Foreign investment- It is one of the most important part for organisation that is leading
management to increase their business size by investing all amount in proper manner.
Spain economy is well developed so by investing in foreign countries foreign currency
is also gained and collected through management of Señorío de Begué.
 Lowering cost- By operating business in various locations it is complex to manage
actual cost for the business. This determines operational cost impact on profits for
organisation. Therefore, Señorío de Begué manage its financial resources effectively
reduce actual cost of operations.
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Disadvantage in context of South-east Asia
 Time zones- Time is one of the crucial aspect for organisation which is directly
impacting on business. So in international business time is totally different from each
other (Raieta, Muccillo and Colantuoni, 2015). So it is complex for Señorío de Begué
to manage their work effectively.
 Politics- Target country for olive oil is impacting on business to complete their task in
effective manner. This also refers to manage their work as per political conditions to
secure better position by managing political risk insurance as an excellent idea to make
plans that is used to work as per crucial actions.
Advantage in context of Latin America
 Consumption of goods- America is importing most of the good items that is performing
their work within effective manner. This also refers that Señorío de Begué leads
opportunities to enhance their business size effectively (Rodríguez Cohard and et. al.,
2017).
 Productive resources- Countries are performing their business in effective manner
which is enhancing business size and profits by offering different products to large
number of customers.
Disadvantage in context of Latin America-
 Home industries- Local industries is performing their work ineffectively due to which its
business are directly impacted as it is impacted due to there global competition in
business.
 Foreign challenges- Ordinary business leads management to perform their work
according to those challenges which is impacting on tools and machines. Like most of
employees dealing their work to complete its task as per goals and objectives of
functions.
In the last, by the above analysis it is analysed that functions which are performed by Señorío de
Begué are desired towards accomplishment of gain high market share of UK market (Wan, Luk
and Chow, 2014). This refers if organisation perform their work with ethical value in its
operations then it is easy for management to achieve top position in market of Olive oil industry.
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CONCLUSION
In the last by the above report it is concluded that an organisation must perform their
work as per international standards. Business is one of the most important part for organisation
that is enhancing revenues and sales of organisational products. Moreover, there are various
countries are target by a business to perform their work effectively in foreign countries. It also
undertakes rules and regulations must be considered by organisation for performing their work in
effective manner.
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REFERENCES
Books and Journals
Arjona-Fuentes, J.M. and Amador-Hidalgo, L., 2017. Olive oil tourism: Promoting rural
development in Andalusia (Spain). Tourism Management Perspectives, 21, pp.100-108.
Bayramer, G., Tunalioglu, R. and Karatas-Ozkan, M., 2016, October. Perspective of exporters in
Turkey: problems in olive oil exports. In VIII International Olive Symposium 1199 (pp.
171-176).
Beltrán, M and et. al., 2015. Geographical traceability of virgin olive oils from south-western
Spain by their multi-elemental composition. Food chemistry, 169, pp.350-357.
Cafarelli, B and et. al., 2017. Consumers’ preferences investigation for extra virgin olive oil
basing on conjoint analysis. RIVISTA DI STUDI SULLA SOSTENIBILITA'.
Caporaso, N and et. al., 2015. Nutritional quality assessment of extra virgin olive oil from the
Italian retail market: Do natural antioxidants satisfy EFSA health claims?. Journal of
Food Composition and Analysis, 40, pp.154-162.
Coq-Huelva, D and et. al., 2014. Conventions, commodity chains and local food systems: Olive
oil production in “Sierra De Segura”(Spain). Geoforum, 56, pp.6-16.
Felzensztein, C and et. al., 2014. International marketing strategies in industrial clusters: Insights
from the Southern Hemisphere. Journal of Business Research, 67(5), pp.837-846.
Gorini, I and et. al., 2019. Olive oil in pharmacological and cosmetic traditions. Journal of
cosmetic dermatology, 18(5), pp.1575-1579.
Hoppner, J.J. and Griffith, D.A., 2015. Looking back to move forward: A review of the
evolution of research in international marketing channels. Journal of Retailing, 91(4),
pp.610-626.
Kanibir, H., Saydan, R. and Nart, S., 2014. Determining the antecedents of marketing
competencies of SMEs for international market performance. Procedia-Social and
Behavioral Sciences, 150, pp.12-23.
Mili, S. and Bouhaddane, M., 2019. Delphi-Based Foresight of Global Olive Oil Market
Trends. Proceedings in Food System Dynamics, pp.113-132.
Raieta, K., Muccillo, L. and Colantuoni, V., 2015. A novel reliable method of DNA extraction
from olive oil suitable for molecular traceability. Food chemistry, 172, pp.596-602.
Rodríguez Cohard, J.C and et. al., 2017. The upgrading strategy of olive oil producers in
Southern Spain: origin, development and constraints. Rural Society, 26(1), pp.30-47.
Wan, W.W., Luk, C.L. and Chow, C.W., 2014. Consumer responses to sexual advertising: The
intersection of modernization, evolution, and international marketing. Journal of
International Business Studies, 45(6), pp.751-782.
Yang, C and et. al., 2016. Comparison of oil content and fatty acid profile of ten new Camellia
oleifera cultivars. Journal of lipids, 2016.
Yang, M., 2018. International entrepreneurial marketing strategies of MNCs: Bricolage as
practiced by marketing managers. International Business Review, 27(5), pp.1045-1056.
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