International Business: KTA Group LTD's Development in New Markets

This report provides an analysis of entrepreneurship and business development, focusing on KTA Group LTD, a UK-based automotive repair and maintenance company. It explores the opportunities and risks associated with expanding business operations internationally, specifically into Sweden, considering cross-cultural factors. The report discusses management responses to leveraging market opportunities and addresses cross-cultural challenges through strategies such as market research, flexible communication, and cross-cultural training. Recommendations are made to enhance cross-cultural proficiency, including increasing cultural awareness, researching cultural similarities and differences, targeting specific markets, and providing employee training to ensure successful international market penetration and growth. The analysis also covers potential opportunities and risks, such as engaging foreign customers, spreading business risk, and accessing new markets, while acknowledging challenges like foreign regulations and cultural barriers.

Entrepreneurship and
Business Development

Table of Contents
Executive summary..........................................................................................................................3
INTRODUCTION...........................................................................................................................4
Literature review..............................................................................................................................4
Analysis and discussion...................................................................................................................8
CONCLUSION .............................................................................................................................12
REFERENCE.................................................................................................................................13

Executive summary
Entrepreneurship is defined as the process of establishing business enterprise in marker
and run its operations efficiently. Business development is defined as the procedure to to expand
business operations in other market for the purpose of attaining higher market share and
customer base. International business is providing products and services across national
boundaries. In this report KTA Group LTD organisation is taken which operates its functions in
automotive repairing and maintenance. Aim of this report is to analyse opportunities and risk that
business faces to expand business at international level. Furthermore, responses of management
department to attain market opportunities are mentioned in this report.

INTRODUCTION
Entrepreneurship is defined as the ability to create, organise as well as run business
operations in efficient manner along with various uncertainties for the purpose of making profits.
Basically, it is the process of starting business and operate all business functions in competitive
business environment. Entrepreneurship is the process through which individuals and group of
individuals conduct commercial activities by bringing new product or process in market as well
as improving its existing products and services for the purpose of attaining higher market share
(Almeidea,and Buzady,2019). Business development is the process of creating long-term value
for organisation for the perceptive of customers, markets as well as relationships. Business
expands its activities in other field for the purpose of attaining higher customer base and market
share. In this report chosen organisation is KTA Group LTD which is located in High Wycombe
United Kingdom. Respective organisation conducts its operates in Automotive repair and
maintenance. KTA Group LTD was incorporated in 1998 and has 49 employees at current
location as well as generates $15.65 million USD. Organisation conducts its operations in UK
and willing to expand its operations in Sweden. This report covers potential opportunities and
risk that are raised due to cross cultural environment. Management responses to attain cross-
cultural opportunities are mentioned. Furthermore, recommendations regarding achieving cross-
cultural proficiency is discussed in this project report.
TASK
Literature review
Opportunities and risk of doing business in cross-cultural environment
Expansion of business in international market is quite challenging task for local businesses.
There are various opportunities and risk are faced by the organisation while performing
operations at international level. These aspects are analysed by the KTA Group LTD
organisation to grab opportunities and reduce the level of risk (Boermans and Willebrands,
2017). Opportunities and risk related to performing business in cross-cultural environment are
mentioned below:
Opportunities of doing business in cross-cultural environment:
By taking business in cross-cultural environment or international business can get various
opportunities that help business to attain the objectives of higher profitability as well as securing

larger market share in competitive business environment. Cross-cultural business activities helps
business to reach new potential pool of prospect customers for purchasing organisational
products and services. KTA Group LTD organisation analyse needs and demands as well as
demographics of international customers to whom organisation is going to serve and provide
them products accordingly the enhance organisational profitability. Internationalisation of
business operations in cross-cultural environment is provide opportunity to spread business risk.
Presence of more countries facilitates business to manage the ups and downs in efficient manner.
Even sometimes establishing business operations in various countries or cross-cultural
environment bring economies of scale for the start-up process of business.
According to views of Boudreaux, Nikolaev and Holcombe, (2018) Through conducting
business operations and activities in cross-cultural environment helps organisation to get
awareness and information regarding new places as well as enhance understanding related to
new culture. It works as a opportunity for business because having understanding of culture of
targeted market facilitates business to maintain relationship with customers and conduct business
operations in smooth manner. KTA Group LTD organisation hires cultural consultant who guide
organisation to create marketing content.
Doing business in cross-cultural environment help business to gain opportunities of
hiring new, skilled and talented employees who can take business to next level. Recruiting
employees internationally facilitates business to attain proficiency in international level.
Expanding business operations from home country to international country enhance
organisational visibility and boost brand reputation that help business to grow it international
market. Organisation can secure foreign investment that enable business to expand business
operations in new market place. KTA Group LTD organisation analyse all these opportunities
and take various decisions to attain them properly.
Risk of doing business in cross-cultural environment:
According to views of Bullough, Renko and Abdelzaher, (2017) There are various risk or
challenges are faced by the organisation to expand business operations in cross-cultural
environment. As every country posses different foreign rules and regulations regarding taxation,
employment and business establishment process that are different from home country. There are
various forms are filled in foreign language with is challenging for business. KTA Group LTD

faces problems related to culture barriers and different business practices which impacts business
overall performance and functionality in international market.
Cost of establishing as well as terminating from foreign market is very high which is
greatest challenge for business. Along with that, business have to spend on developing
infrastructure, setting business as well as paying to local workers is quite expansive for business.
Competition at international level also the factor that affect business performance and create risk
for business.
KTA Group LTD organisation analyse all these opportunities and risk than develop
effective policies and strategy to attain opportunities and reduce risk that help business to expand
at international level.
Management responses to realise the opportunities available in the market selected in relation
to cross-cultural issues
According to views of Cañeque and Hart, eds, (2017) Management department of
organisation develop various strategies and planning for realising opportunities that are available
in market place as well as reducing cross-cultural issues. Managers of KTA Group LTD
organisation conducts proper market research to analyse market trend and customers needs and
demands before taking decision of expanding business in Sweden. There are various cross-
cultural issues are faced by the organisation to operate business operation in other country such
as differences in communication style, different approaches of decision-making, completing task
and resolving problems. To resolve all these problems organisation KTA Group LTD
organisation develop appropriate strategies that help business to perform business operations in
efficient manner and attain large market share. Management department of respective
organisation adopts flexibility in organisation and promote open communication that facilitates
business to perform operation efficiently as well as influence customers which enhances overall
performance and sustainability in international market.
According to views of Carvalho, (2019) Managers of organisation analyse conflicts and
issues that are come in international market and impact on organisation efficiency that take
actions to resolve them properly that lead business activities in right direction. KTA Group LTD
organisation also conducts cross-cultural awareness programme as well as provide training to
employees for understanding working culture of Sweden that enhances their performance and
efficiency to conduct business operations in efficient manner. Managers of organisation adopts

cross-cultural management tools and techniques that help business to understanding the people
needs and demands in different country, it is essential for KTA Group LTD organisation to a
operates in Automotive repair and maintenance analyse current market trends and customers
requirements in Sweden to gain market opportunities.
It enables respective organisation to attain market opportunities that pays important role
in expending business operations and gain the objectives of securing large market share and
higher customer base. KTA Group LTD organisation analyse cross-cultural issues and develop
effective policies to convert them into opportunities.
Recommendations to achieve cross-cultural proficiency that help to attain success in the
international market
In the process of expanding business operations international market business faces
various problems and issues regarding differences in culture, differentiated rules and regulations
that hinder business operations. Business develop various policies and strategies to reduce all
these issues that help organisation to attain determined goals and objectives in efficient manner.
KTA Group LTD organisation takes various actions to enhance cross-cultural proficiency such
as it develop effective values, practices and behaviour of individual that enables organisation to
engage with people of other culture efficiently. If business attain cultural proficiency properly
than it enables business to attain success in international market place. Some recommendations
that help business to maintain its cross-cultural proficiency are mentioned below:
 It is recommended to KTA Group LTD organisation to enhances cultural awareness of
Sweden where organisation is going to expand its operation. Organisation should analyse
cross-cultural diversity and dynamics which are the potential drivers and their proper
understanding lead business towards attaining success in international market place.
Organisation should conduct cross-cultural assessment in order to analyse cultural values,
beliefs as well as perceptions (Dvouletý, 2017). As social awareness regarding the
country in which business expand its operations helps KTA Group LTD organisation to
interact and socialise with customers and other people that enhances organisational sales
and profitability ratio. Respective organisation should enhance cross-cultural awareness
through conducting three steps. In first step organisation should acknowledge personal
biases in next step organisation should aware regarding Sweden culture, beliefs and
attitudes and in last step organisational should learn about cultural diversity.

 It is recommended to KTA Group LTD organisation to research about similarities and
differences of cultures of home country and country in which organisation is going to
expand its business activities. Organisation should develop strategies regarding
international business after analysing all aspects of Sweden culture that enables business
to attain success in international market.
 It is recommended to KTA Group LTD organisation to target specific market of Sweden,
analyse cultural trends as well as customers needs and demands to develop effective
strategies that help business to accomplish the objectives of growth and development of
business in international market place (Ghimire, 2020). Organisation should aware
regarding rules and legislations that are developed by the government and implement
them in business practices that ensures smooth running as well as success of business in
international market place.
 Organisation should provide training to existing employees to perform in international
market with efficiency or organisation can onboard employees directly from Sweden
which help business to run business operations properly in market and convince
customers to purchase organisational products and services that ensures business success
in international market and enhance overall proficiency.
Analysis and discussion
Opportunities and risk of doing business in cross-cultural environment
KTA Group LTD organisation is the local business of UK and operates in Automotive
repair and maintenance. Organisation want to expand in business in international market to tap
new market and gain the opportunities of growth and development. Sweden is the country where
are organisation going to expends its business operations. In the process of expanding business in
the market of Sweden various opportunities and risks are faced by the organisation that foster as
well as hinder business performance. These opportunities and challenges are mentioned bellow:
Expansion of business operations in the market of Sweden provides opportunities to
business such as it enhances engagement of foreign customers that increases business sales and
profitability (Grivokostopoulou, Kovas, and Perikos, 2019). Organisation provides quality
maintenance and repairing services to customers at international level that attracts new customers
and retain them with organisation for longer period of time. KTA Group LTD organisation gain
opportunities from expanding business operations in cross-cultural environment such as it spread

level of risk. It helps business to relieve pressure of recession or crisis in one location because
business can cover it through attaining profits in another location.
KTA Group LTD organisation expand business operation in the country of Sweden that
provides opportunity to get large market to provide products and services. Through providing
products and services to new market organisation get higher and potential customer base that
enhance business sales and profitability (Santos, Neumeyer, and Morris, 2019). As open boarders
provide opportunity to business to access of untapped market and gain first mover advantages.
Biggest advantage of expanding business operations at international level is that it foster
business growth and development through provide products and services to large market.
Excellent benefit of taking business at international level helps business to access the pool of
potential employees who have unique skills, competencies and mindset. KTA Group LTD
organisation organisation hires employees from Expended country directly that enhance overall
efficiency and effectiveness of business in global market. Performing business operations in
cross-cultural environment helps respective organisation to learn about new culture in which
organisation expand its activities. Through expanding business at international level business can
get foreign investment which is extremely valuable for organisation (Kannampuzha, 2017).
Through establishing business in Sweden, business can reduce its overall cost because there is
high availability of employees, material and contains effective supply chain that help business to
perform business operations efficiently.
It is analysed that expansion on global market provides various opportunities to business
to maintain brand awareness and image among market that help business to attain the objective
of growth and development. As organisation provides its products and services according to
needs demands and preferences of customers as per their cultural requirements that maintains
strong image of organisation and enhance the ratio of sales and profitability.
Risks:
Expansion of business operations at cross-cultural environment raises various risks or
challenges for business along with opportunities that impacts overall performance and
functionality of business. To operate business at international level requires lengthy paperwork
and follow various rules and regulations related to employment, taxation and establishment
process that create challenge for KTA Group LTD organisation. At international level currency
rates are fluctuating at very fast rate which is quite challenging for business monitor them and

take decisions accordingly. It is analysed that at global level various organisational provide
similar products that enhances the level of competition in market which is the greatest risk for
organisation to maintain its proficiency level.
It is analysed that establishing business operations at international is quite expensive
process that enhance overall cost of business. KTA Group LTD organisation have to invest in
building infrastructure, establish business and paying to employees which is cost and time
consuming process (Kuratko, and Morris, 2018). There are various cultural barriers are faced by
the respective organisation such as language issues and various others impacts directly and
indirectly on business operations.
From the above discussion, it is analysed that business faces range of challenges in
international market that impacts on business efficiency and operations. KTA Group LTD
organisation analyse these opportunities and risk to take effective decisions and develop
strategies that help to mitigate risk and challenges that create barrier in business success in
international market.
Management responses to realise the opportunities available in the market in relation to cross-
cultural issues
Management department of KTA Group LTD organisation conducts market research to
analyse opportunities that rely in international market. Organisation develop effective planning
and strategy to attain these opportunities and militate cross-cultural issues which has power to
impact business performance. Respective organisation expands its operation is Sweden which is
different form UK in various aspects such as communication style, decision-making, language,
working process, resolving problems and various other that affect proficiency of business. KTA
Group LTD organisation organisation's managers provides training to its employees to
understand the culture of Sweden that help business to resolve these cultural issues and ensure
smooth running of business operations. Through analysing potential market opportunities,
organisation can expand its market share and attain large market share that provides sustainable
competitive advantages. Management of organisation promotes flexibility and open
communication in business environment that enable organisational employees to perform
according to culture of Sweden.
It is analysed that managers of KTA Group LTD organisation pay proper attention on
cultural issues and conflicts in international market impacts business performance and

functionality. Respective organisation conducts different cross-cultural awareness programmes
in business to enhance awareness regarding culture of Sweden that help to analyse opportunities
and attain them that help business to attain success in international market (Meister, and Mauer,
2018). Managers of organisation bring changes and modifications in business after analysing
current trend of business and needs, demands as well as preferences of customers.
KTA Group LTD organisation critically evaluate the risk factors and their impacts on
business performance and functionality than develop effective policies and strategies which help
business to convert these risk into opportunities.
Recommendations to achieve cross-cultural proficiency that help to attain success in the
international market
It is analysed that business faces various problems and issues that are related to
differences in culture, rules and regulations that are imposed on business impacts their operations
in efficient manner. KTA Group LTD organisation analyse these risks and barriers and create
effective planning accordingly that helps business to gain competitive advantages than other
competitors. Respective organisation develops values, practices and effective practices that
enhance proficiency of business in international market. Some recommendations to improve
business proficiency in international market are mentioned below:
It is recommended to organisation to conduct various programmes to enhance cultural
awareness in employees regarding the culture and beliefs of Sweden where organisation expand
its business operations. It is suggested to KTA Group LTD organisation to analyse dynamics as
well as cultural diversity that helps business to accomplish determined goals and objectives
(Panteleeva, and Asenov, 2020). Awareness of cultural diversity help business to socialise and
interact with people of targeted country that enhance sales and profitability of business.
KTA Group LTD organisation is suggested to gain proper knowledge and understanding
regarding differences and similarities in culture of home country and expended country.
Respective organisation develop various strategies and policies to handle all differences that lead
employees efforts in right direction to achieve decided outcomes.
Respective organisation should target specific segment of Sweden market which contains
higher growth and development potentiality than analyse culture, needs and demands of
customers that enhance organisational market share, reputation and customer base in

international market. KTA Group LTD organisation must consider all rules and legislations of
Sweden that enables smooth running of business operations.
KTA Group LTD organisation is suggested to provide training to its employees
regarding international trends and market conditions so they can perform their task more
efficiently (Parker, 2018). It facilitates business to attain cultural proficiency along with getting
success in international market place.
CONCLUSION
As per above report, it can be concluded that business development is defined as the
process of expanding business operations across national boundaries that enhances organisational
market share and customer ratio. Internationalisation of business activities provides various
opportunities and challenges to business that must be analysed by organisation and develop
policies accordingly to gain sustainable competitive advantages them other competitors.
Management department of organisation develop various strategies to convert these risk into
potential opportunities that enable business to reach higher customers base. To expand business
operations at international level, it is important for organisation to analyse culture, market trends
and proficiency of market that enable business to conducts business operations with great
efficiency and effectiveness as well as maintaining strong reputation in internation market.

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