Strategies Employed by Businesses in Emerging Markets

This report provides a comprehensive analysis of the strategies businesses utilize to enter emerging markets, using Morison's as a case study. It begins with an overview of globalization and its impact on international business operations. The report then explores various strategies for market entry, including licensing, partnerships, and joint ventures, while also examining the challenges and barriers faced by companies like Morison's, such as local competition, cultural differences, supply chain risks, and corruption. Furthermore, the report investigates the relationship between globalization and business success, highlighting the importance of market analysis, understanding consumer needs, and adapting to the local environment. The methodology includes a literature review and discusses research objectives and questions. The report also discusses the impact of globalization, ICT revolution and trade liberalization. Overall, this report provides valuable insights into the complexities of entering and succeeding in emerging markets, offering recommendations for businesses seeking to expand their global presence.

Research Project

Table of Contents
TITLE: “The different strategies employed by businesses to enter emerging markets.” A case
study on Morison’s..........................................................................................................................1
CHAPTER 1 : INTRODUCTION...................................................................................................1
1.1 Overview of research........................................................................................................1
1.2 Background of research....................................................................................................1
1.3 Rationale of research........................................................................................................1
1.4 Research aim and objectives............................................................................................2
1.5 Research questions...........................................................................................................2
CHAPTER 2: LITERATURE REVIEW.........................................................................................3
2.1 Concept of globalisation...................................................................................................3
2.2 Various strategies that could be employed by Morrison to enter in emerging markets...3
2.3 Barriers faced by Morrison while entering or operating in new market..........................4
2.4 Relationship between globalisation and business success................................................5
CHAPTER 3: RESEARCH METHODOLOGY.............................................................................7
3.1 Introduction......................................................................................................................7
3.2 Research philosophy.........................................................................................................7
3.3 Research approach............................................................................................................7
3.4 Research method..............................................................................................................7
3.5 Data collection methods...................................................................................................8
3.6 Sampling...........................................................................................................................8
3.7 Time scale.........................................................................................................................9
CHAPTER 4 : FINDINGS............................................................................................................10
4.1 Data collection................................................................................................................10
4.2 Data analysis...................................................................................................................11
CHAPTER 5: DISCUSSION.........................................................................................................24
5.1 Findings to Stakeholders................................................................................................24

REFLECTION & RECOMMENDATION FOR ALTERNATIVE RESEARCH
METHODOLOGY........................................................................................................................26
Reflection.............................................................................................................................26
Alternative Research Methodology......................................................................................26
CONCLUSION....................................................................................................................26
REFERENCES..............................................................................................................................28

TITLE: “The different strategies employed by businesses to enter emerging
markets.” A case study on Morison’s.
CHAPTER 1 : INTRODUCTION
1.1 Overview of research
Globalisation is the process of interaction and integration among people, organisations,
industries, political parties, etc. from one country to different country. In order to work in
different countries, there is requirement of different aspects which are significant and relevant in
context of changes taking place in external market (Hirst, Thompson and Bromley, 2015). In
order to successful conduct business operations at international level, it is essential to analyse
market trends, consumer demand, etc. and then taking actions accordingly. There is positive
impact of change in plans and policies which is relevant and significant to understand plans and
policies in significant and relevant manner. This research is based on Morison’s which is fourth
largest super market chain in UK. It have headquarter in Bradford, West Yorkshire, England
UK.
1.2 Background of research
In this study, there is discussion about different startegies through which there us
discussion about policies through which organisation can enter in emerging market. These days,
organisations expand their business by entering in emerging market. Morison’s is the
organisation which has around 498 stores in UK till 2016 and they are expanding in different
countries as well (Docquier and Rapoport, 2012) There are different countries having developing
economy, so there is scope of growth for Morison’s. It is responsibility of managers to
understand what is trend and then plan actions.
1.3 Rationale of research
Rational behind conducting this research is this topic is vast and assist companies to
expand in market. It is easy to expand knowledge about emerging market because people have
knowledge about. In case researcher wants to expand business in emerging market, then
strategies which givers positive impact can be learned (Papastergiadis, 2018). Apart from this
investigator has interest to know strategies framed at global level to operate business
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successfully, reader is able to learn barriers which arise while operating in developing countries
and corrective measures to deal with it.
1.4 Research aim and objectives
Research aim-
To identify the different strategies employed by businesses to enter emerging markets. A
study on Morison’s.
Research objectives
1. To study the concept of globalisation
2. To identify various strategies that could be employed by Morison’s to enter in emerging
markets.
3. To examine various barriers faced by Morrison while entering or operating in new
market.
4. To study the relationship between globalisation and business success.
1.5 Research questions
1. What is the concept of globalisation?
2. What are the various strategies that could be employed by Morison’s to enter in emerging
markets?
3. What are the various barriers faced by enterprises while entering or operating in new
market?
4. What is the relationship between globalisation and business success?
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CHAPTER 2: LITERATURE REVIEW
2.1 Concept of globalisation
Globalisation is the terminology which describes social, economic and government
interaction and interrelation among people from different geographical region (Docquier and
Rapoport, 2012). With globalisation of operations, there are some aspects which has to be
considered such as change in political parties, legal aspects, etc. For entering in developing
country, it is important to understand economic policies so they can plan financial status, sources
of funds, etc. accordingly. According to Crystal Ayres (2019) there are some advantages as well
as disadvantages of globalisation which has to be kept in mind. Some advantages includes-
Pooling of resources- With working at international level, there is availability of more
resources through which working efficiency of organisation gets improved. At international
level, there are many competitors so it is important to maintain quality of services with optimal
use of resources.
Improves communication techniques- There is requirement of proper communication
through which operations will be done in effective and manner. There will use of online sources,
internet connection to share and gather information, etc. This is the base through which
information, ideas can be shared among management of Morrison.
Apart from above discussed advantages, there are some disadvantages as well such as
Reduction in social safety, New system of politics which affects successful implementation of
globalisation policies (Cetorelli and Goldberg, 2012). Managers of Morrison have to understand
measures through which they can plan it.
2.2 Various strategies that could be employed by Morrison to enter in emerging markets
For establishing business in emerging market, managers of Morrison have to understand
changes which are taking place in external market. According to Sarah Boumphrey (2019), there
is difference in working style of organisations as per change in geographical region, so in this
case it is essential to understand it and then implement properly. There are some strategies which
assist in entering in new market such as-
Selecting best mode for entering in market- There is requirement of some specific mode
through which entry in new market is easy and feasible (Evans, 2012). There are different ways
for entering in market such as licensing, partnership, joint venture, etc. These are the ways
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through which knowledge about market can be collected. Managers of Morrison have to select
best way to enter in new and emerging market.
Create desirability- It is important to create desirability for product and services. This is
possible with the help planning for marketing in better and effective manner (Martinez‐
Fernandez and et. al., 2012). Marketing is the technique through communication about product
and services is provided to consumers. When marketing activities are attractive, then consumers
are aware about products and services and there are ready avail services.
2.3 Barriers faced by Morrison while entering or operating in new market
According to the perception of Louie Ali (2014), it has been identified that when a company
seeks to expand its business in international market, then it has faced a number of barriers. It
includes culture or language barriers, non-tariff barriers to trade, supply chain risks, operational
risks related to recruitment and more. In context with Morison’s, as it is considered as the fourth
largest chain within a supermarket. In order to gain high competitive advantage, this firm wants
to expand its business into emerging market area of Brazil, Korea, China and more. Here,
globalisation provides various opportunities to this company in reaching targeted audience, get
raw materials on cheap price, supply commodities and more (Costinot and Rodríguez-Clare,
2014). But apart from various benefits, some factors that may create barriers in front of Morrions
are described as below:-
Local competition: It refers to be the most common barrier that every company face
while expanding its business in international market. In this regard, Morison’s also face the same
problem, where host companies of Brazil, China and other market are gained advantage to gain
loyalty of customers. As domestic companies know much better about taste and preference of
their targeted customers (Gubler, 2012). Therefore, Morison’s have to build effective strategies
to sale its products into new area, by conducting a proper market research to identify the demand
of local customers. This would help in expanding business more effectively.
Language and cultural barriers: Nations are generally distinct on the basis of culture,
language and way of living standard of people. Therefore, international companies who launch
business across the nations have faced a large number of issues related to linguistic and culture
issues. For this purpose, to face the realities Morison’s need to adapt new environment and
restructure business policies as well as strong go-to-strategy as per local culture. This would help
in reducing the impact of linguistic issues and cultural barriers more effectively.
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Supply chain risk: Imports, exports, trading, shipping as well as logistics are all
considered as main activities that large organisations have departments dedicated to. In this
regard, developing an effective supply chain and managing the same which crosses territorial
boundaries would be a real challenge for international companies. Therefore, Morison’s need to
develop a better strategy, an appropriate business plan and a proper budget to maintain its supply
chain process while running business at global level.
Bribery and corruption- This is the major issue which is faced by Morrison while
operating at international level. Business expansion in international market is possible with the
help of different parties such as government, legal regularities, etc. Due to excessive corruption
sometimes there is issue in conducting operations. Due to corruption, there is requirement of
funds to give bribe which is ethically and financially inappropriate as per ode of conduct of
Morrisons.
Supply chain risk- There is risk of proper supply chain management in order to
successfully implementation of business operations. There is requirement of some raw material
so it is essential to have regular supply. So in this case sometimes, managers of Morrisons face
issue in getting regular supplies. Cost such as holding cost, maintaining cost, ordering cost, etc.
of supplies has to be maintained so supply chain does not get halted.
Finding Reliable Partners- There is requirement of partner for entering in new country
as mode of entry such as partnership, joint venture, strategic alliance, etc. there are possibilities
that Morrisons are not working able to find best partner with whom they can perform operations
in better and effective manner. If proper partner is not available then there is issue in knowing
culture, demand of consumers which affects sustainability in new market.
2.4 Relationship between globalisation and business success
Through perception of Cavusgil and Knight (2015), it has been evaluated that the new global
economy of today’s 21st century has completely transformed the social, economic and political
landscape in an indelible and profound manner. Therefore, global economy is also known as
composition of interactive forces’ trilogy. It includes globalization, ICT (Information
Technology and Communications) revolution and trade liberalization. Here, concept of
globalization helps in melting the territorial borders, creating free trade which aid to enhance
economic integration and more. While, ICT revolution helps in making connection between
countries and their targeted audience. Similarly, organisations define specific rules of
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engagement on the economic landscape in order to come over grips having contemporary
challenges as well as new opportunities (Black, Morrison and Gregersen, 2013). This would help
in articulating a pragmatic vision, build a competent and unique business strategy etc. by creating
the synergies. This would allow organisations in integrating the business process with
international needs for enhancing competitive advantage.
According to Weinstein (2013), it has been analysed that the concept of globalisation and
success of business are highly interrelated. As globalisation defined as a process by which
companies who seek to trade its products at global level, get advantage to achieve the same goal
more easily. It helps in access resources need to run business like raw materials, human capital,
finance and more on cheaper costs (Gubler, 2012). Along with this, it also aid organisations to
develop strong go-to-strategy that fits with international business environment, to run operations
effectively. In context with Morison’s, it’s management needs to do proper market analysis of
other countries like China, Korea and more, for identifying demand of local areas, needs of
customers, their purchasing power and more. This would help in offering groceries and other
products of branded companies on competitive price rates to attract new customers. Along with
this, by adopting new environment, restructure business as per international laws, will give
opportunity to Morison’s in driving success and growth of business through globalisation.
Furthermore, for developing business strategy, respective company need to ensure flexibility, a
quick response time as well as a proactive approach for attainment of economic opportunities.
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CHAPTER 3: RESEARCH METHODOLOGY
3.1 Introduction
Research is the in- depth study of topic through systematic collection and gathering of
information. There are different techniques which makes it easy to understand for reader and
others to analyze which is the best tool for getting positive and absolute outcome. Research
methodology is the frame work which contains complete information about techniques used
while conducting investigation. This research is based on strategies which are framed by
business to enter in emerging market. Some techniques are discussed as under-
3.2 Research philosophy
this is the aspect which contains information about proper set of plan and procedure of
conducting research. There are three types of research philosophy i.e. pragmatist, interpretivist
and positivist. In this study there is implementation of pragmatist because this covers all the
important aspect which affects last outcome and conclusion. So with the help of it all the
essential aspects are covered in effective and relevant manner.
3.3 Research approach
There is specific method through which outcome of research through positive or negative
outcome. There are two types of research approach i.e. inductive and deductive approach.
Inductive approach is best because this research it suits better with all the selected methods.
Apart from this gives actual outcome after considering different factors. Inductive research is
best way because this is the best way to covers aspects affecting investigation information.
3.4 Research method
There are different methods to conduct research. With the help these methods, it is easy
to understand and make specific outcome from conducting investigation. This also assist in
conducting study in systematic and appropriate manner. There are two types of research method
i.e. qualitative and quantitative method. Qualitative method is way in which collected data is
shown in the form of graphs charts. This method is more structured as compared to quantitative
research. Under this technique, information can easily be understood by reader because this
provides justification also behind specific view and opinion.
While the other method is quantitative under which information is collected and represent
by quantifying data. Under this there is use of different mathematical and statistical techniques to
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make it technique upgraded. This method quantifies information under different tools such as
mean, range, correlation, standard deviation, etc. In this research, there is use of qualitative
research method which is easy to collect and represent.
3.5 Data collection methods
There is requirement of some data on the basis of which interpretation, recommendations
and conclusion will be done. This data is significant because interpretation and significant for
making recommendations. There are two methods of data collection i.e. primary and secondary
method.
Primary method is collected from respondents who have knowledge about strategies for
entering in emerging market. This method is best but there is requirement of specific time to
collect information because this is collected with one to one interaction. Hence absolute and
correct data is collected. Respondents has to be selected which have information about research
topic so they are able to give correct and relevant information. There are different methods
through which primary information is collected such as questionnaire, personal interview, focus
group, etc. In this study, questionnaire is used. This is the way in which some set of questions
will be evaluated related to research topic in order to take complete information about it. Under
this method, there is personal interaction among investigator and respondents, so actual mindset
can also understood.
Secondary method refers to technique in which information is collected from online
sources, books, journals, etc. Under this method, information is collected from sources which are
already evaluated by someone else. So sometimes there are possibilities that information is
irrelevant or old. In This study both primary and secondary information is used to conduct study
in systematic and relevant manner.
3.6 Sampling
It is not possible to collect information from whole crowd, so there is method to select
some respondents through which some respondents can be selected. This is known as sampling.
There are two methods of sampling- Random and non- random. Random method is best and used
in this study because there is less possibilities of biasness and there is equal possibilities of being
selected for each and every individual from crowd.
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3.7 Time scale
Research investigation is done with considering different activities such as introduction,
setting aims and objectives, literature review, research methodology, data collection, and
interpretation, etc. So in this case there is requirement of specific time for conducting thee
activities in appropriate manner Gantt chart is the technique which is used to divide different
time slot to these activities. Gantt chart is pictorial description about research activities with their
slotted time in horizontal and vertical representation. In this diagram, research activities are inter
linked with each other, so it is easy for researcher and teammates to understand which activity
has to be completed in how much time. This assist to know how much time is required to be
provided to each activity.
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