Pashley Cycles: International Business Market Entry and Analysis

This report provides an in-depth analysis of Pashley Cycles' international business strategy, focusing on its expansion into the Indian market. The report explores the company's objectives, analyzes its international position using models like Firm Specific Advantage (FSA) and Country Specific Advantage (CSA), and discusses the application of the Globe model to understand leadership and cultural nuances. It also examines the political and economic factors that impact the business, such as government policies, trade restrictions, and market dynamics. The report highlights the importance of understanding the Indian market's demographics and consumer preferences. Furthermore, it identifies opportunities for growth, emphasizing the need for a performance-oriented approach, decisive leadership, and a visionary outlook to achieve success in the global market.

INTERNATIONAL
BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................3
Objectives....................................................................................................................................3
Analyses.......................................................................................................................................3
Discussing the issue...................................................................................................................11
Recommendations and implementation.....................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
International business refers to the trading of goods and services across the national
boundaries. It also includes the cross border transaction of goods and services between two and
more countries.
Pashley cycle is the bicycle, tricycle and also the work bike manufacturer of UK. The
company is being started in 1926 and manufactures the bikes in the UK. The company is having
approximately 50 employees and its parent organization is The Moulton Bicycle Company
Limited.
The present study is based on the growth strategy of the company for expanding its
business in different country . In addition to this, analysis of its international position will also
be explained in the report through using different models. The report will also explain the factors
which affects the business including political, technological, economical.
Furthermore, the report will help to understand about different issues of international
market and UK and also the recommendation regarding development of the long term and
medium term plan.
Objectives
The objective of report is to identify the new and efficient market for the growth and
development of the business and also the issues and factors which affects the international
growth of the business.
Analyses
Pashley cycle is the British company which deals in manufacturing of the bicycle,
tricycle, and work bike. The company is considered to be the England's longest established
manufacture of the bicycle (Hamilton and Webster,2018). The company having good and
efficient employees which leads the company in optimum utilization of resources. This will helps
the company in producing efficient and better quality of goods and services and providing them
to the customer at cheaper prices or affordable prices so that they can increase their sales which
further result in capturing of larger share of the market and also the generation of the strong
brand value (Cuervo-Cazurra, 2016). More sales also helps the company in earning higher
amount of profits and achievement of the overall organizational goal effectively and efficiently.

The company focusing on diversifying their business to new countriy that is in India in
order to generate strong and powerful brand of the international business(Kolk, 2016).
Operating as the international business will helps in making it more profitable and also to
strengthen the country's economy as it contributes towards the foreign exchange.
Pashley cycle's international position helping them in competing them in the different
markets which provides them essential opportunities to explore more (Picciotto and Mayne,
2016). The opportunities will be result in the new customer base, lower costs and also the
diversifying business risk. The position of being operating internationally leading the company
in better management of risk.
Pashley cycle is planning to enter into the new market as it is also the part of its growth
strategy (Tian, 2016).
India:The company is planning to enter into the Indian market as India is also highly
dense and high populated country where the company having a great scope of increasing the
sales and targeting new customer base in order to capture larger part of the marker share(Cano-
Kollmann and et.al., 2016.).
Germany is not preferable by company for expanding their businesses as in European
countries binding tariff information is used as tool in order to obtain the tariff and the taxes
charge in import and export is generally high.
and Brazil is not considered for establishing units by the company as they found high
bureaucracy, high cost and also the lack of knowledge in people
India is highly populated country which seems them beneficial fro attracting large
number of customers and that is the reason for choosing this market for expansion by the
company.
International position of the business helps them in generation of more reward
comparatively in the local market as with expansion of the market , opportunities for the
company also increases which further results in earning good amount of profit (Doh and et.al.,
2017). More specifically it can be understand that expansion of the market leads to generation of
more revenue, more investment opportunities, reducing costs, chance of recruiting new and
creative talent, competing for the new sales, diversification (Vagts and et.al., 2015). These are all
considered to be the great opportunities for Pashley to expand more and to run towards the path
of the success for their further growth and development.

There are basically different models which can be uses for further analysis of the Pashley
cycles and also its international positions as they helps in better analyzing and understanding of
the global business of any of the company(Neelankavil, 2015). Advantage of the international
business has also two dimensions which the companies are required to consider. two models are
specified below:
Firm specific advantage (FSA): This is the advantage which is specifically generated by
the firm itself by optimum utilizing its resources and making their best efforts. This is called as
firm specific as it also varies firms to forms. Each firm has their own capability of handling and
using their resources (Beugelsdijk, Kostova and Roth, 2017). Hence every firm has their own
advantage and benefits which they can generated by effective and efficient use of their resources
including technology, human resources, personnel, and equipment.
Country specific advantage- This is the advantage which is specifically generated by each
different countries some their own, this is considered to be the advantage which are capable of
generating from each different countries on their own by using the benefits and advantage of the
competitive environment, labor force, political factors, natural resources available with the
country,and also the industrial clusters(Zander, McDougall-Covin and Rose, 2015). These are
the strengths of the specific country which also helps all the firms and companies working in that
particular country.
Pashley cycles international position is also being affected by these models ad they are
entity focusing on their own capability of working and performing the activities by optimum
utilization of all the resources and also using the resources in most effective and efficient manner
(Richter and et.al., 2016).
The country in which company is established their units are also getting benefits and
advantage from the parent compnay.(Brannen, Piekkari and Tietze, 2017). The company is
planning to expand its business in different regions of the worlds that is in different countries and
for this they need to efficiently analyses the CFA that means country specific advantage and
need to select the best country which is capable of production and generating the more and the
higher benefits(Morschett, Schramm-Klein and Zentes, 2015). In addition to this company must
evaluate the FSA that is firm specific advantage in order to evaluate their resources variability
which can be use for the further expansion and diversification of the business and business
activities,

There are some another model also which can be use for analyzing the company and iots
international' position which is the Globe model(Derudder and Witlox, 2016. ). This is the
model which explains that how the people from the different cultures view and understand the
leadership qualities of the leaders This project and the model in the organization also help the
company in understanding about the culture, leadership and also their relation to the
organizational effectiveness. In addition to the Pashley cycles needs to understand the people and
their culture they are hiring from different countries by establishing their units on different
countries.
The organizational culture may be set according to the needs and wants of the employees
so that they are capable of satisfying the employees as employees ate the only resources which
helps in optimum utilization of all other resources(Hovhannisyan and Keller, 2015.). this will be
only possible when the employee are completely and fully motivated and satisfied which will
leads the company towards the motivation of the employees and motivated employees will leads
the firm in achievement of the organizational goals and objectives.
Thisa Globe model generally include some dimension which are required and necessary
for the company to implement when they are planning to grow and expand their business in
different countries of the world(Hutzschenreuter, Kleindienst and Lange, 2016.). The company
requires to understand the culture of the Indian population, their tastes preference, thinking,
requirements necessities etc so that product and services can accordingly molded and can offer to
the customers in order to satisfy their needs and wants of the customers .
This will also leads the company in capturing larger share of the market and creating
great and loyal image among the population of the country which further facilitate the Pashley
cycles to expand more in some another country in order to increase and improve their profit
earnings and overall income of the organization.
Some of the dimension which are required to include by the company if they are using
the Globe model are self sacrificing for better of organization, Integrity, performance oriented,
team oriented leadership qualities,decisive and visionary these all are the quality which help the
Pashley cycles if they are planning to expand the business s in different country like India as the
part their growth strategy(Hamilton and Webster,2018). This will lead them to make the entire
unit of the organization performance oriented that is preforming the effective and efficient
activities is that they able to provide the quality goods to the customer as the quality goods re

capable of satisfying the needs and wants of the customers. Decisive quality helps the manger in
taking the most efficient and effective decisions by using the company's financial information in
order to make the investment in the bests opportunities available to them(Cuervo-Cazurra, 2016).
Effective decisions also helps the company in accomplishing their task and activities of
the organization done smoother and efficient. Inspirational dimension of the model direct the
managers to be inspired by any effective activity of their competitor to make innovation and
creativity in their production of good and service and other activities of the organization so that
they can win over the competitive advantage(Kolk, 2016),
Integrity is the dimensional factor which lay emphasis on the integration among all the
departments and departmental activities of the organization as all the activities are interlinked
and interconnected with each other, the efficient integration between all the activities bring
smooth flow of operations without nay chaos and confusion.
Team oriented leadership is the leadership quality which bring whole team as unity and
directs and leading them to work together in the direction of the organizational goal(Picciotto
and Mayne, 2016). this also helps in motivating the employees which will result in better
production of the goods and services and hence, being a strong image of the company in larger
marker share which will enhance their business and helps them in their further growth and
development.
Being visionary is the dimension which facilitates the business s units of Pashley cycles
in different countries like India ton make the visions for the establishment of their unit in
India(Tian, 2016). As they planned tom establish and expand their business in India in order to
attract larger number of customers so that they can increase their sales as this will result in
achievement of higher profit earning and being high populated country India will leads the
company in their expansion ad diversification so that they can generate a strong international
position across the world(Cano-Kollmann and et.al., 2016.)
Some of the factors which might affect the business and ae need to consider by the busienss are
explained below;
Political factor: Pashley Cycles is largely influenced by the political factors which
influence the operational efficiency, performance and productivity. Political factors like
government policy, political stability, foreign trade policy, environmental laws, fiscal policy,
trade restrictions, tax policy, labour laws, terrorism, grans and initiatives, corruption, etc.

Regular changes in trade restrictions and different government policy of the country have
substantial impact on the operation of the Pashley Cycles. To expand the business in India all
these factors must be considered for smooth functioning of the business (Charfeddine and
Mrabet, 2017).
Economic factor: Economic factor largely influence the performance capability of the
Pashley Cycles. These factors mainly includes economic growth, exchange rate, interest rate,
disposable income, inflation rate, unemployment rate, wage rate, financing capabilities, etc. The
economic growth of the country and its interest and currency exchange rate fluctuates then it
largely influence profitability and sustainability. Rise in inflation rate, increase in supply prices,
higher currency exchange rate leads to lower profitability and sales for the Pashley Cycles.
Cultural factor: Different country and economy has varied culture, beliefs, attitude,
preference, trends which large influence the performance of the company. There are various
social and cultural factors like demographics, career attitudes, health consciousness, consumer
confidence, industrial reviews, customer buying trends, career attitudes, population growth,
organizational goodwill and image, education, values, lifestyle attitude, language barriers,
cultural barriers, etc. which influence the performance and productivity of the business
(Savolainen, 2016). These factors impose major challenge on the Pashley Cycle to smoothly run
their business.
Environmental factors: Factors like non- availability of raw material, green house gas
emission, geographical location, reduction in pollutant gas and carbon footprint, change in
weather and climate, business ethics, business sustainability, environmental laws and
legislations, etc. are few environmental and ecological factors which influence the functioning of
the business. These factors are required by the organisation to efficiently analyse and need to
make adjustment in own company according to change in these factors.
Technological factors: Technology is changing at a faster pace and use of outdated and
inadequate technology into the business leads to higher competition and lower market share.
Integration of new, advanced and emerging technologies, level of innovation, technological
change, technology incentives, technological awarenesses, research and development activity,
automation, maturity of technologies, etc. are few of the technological factors which affect the
operational performance of the business. Integration of new and advanced technology leads to

increase in level of innovation, attainment of economies of scale, reduction in cost which
eventually leads to higher operational efficiency, performance and productivity for the Pashley
Cycle (PESTEL Analysis – What is it and why do we use it?, 2018).
Legal factors: different countries have varied laws, policies, legislation within which one
must comply for smooth functioning of the business. There are various laws like safety
standards, labour laws, product safety, health and safety, equal opportunities, advertising
standards, consumer rights, consumer laws, competitive legislation, future legislation,
discrimination law, antitrust law, copyright law, patent law, safety laws, employment laws,
consumer protection law, etc. Pashley Cycle must comply with various laws and legislations of
different countries within which it functions for future growth and development to attain higher
profitability and market share.
Hence, the globe model is also helping the company in analyzing its international
position if it expand and diversify the business in different countries of the world in order to
generate a strong and loyal brand image and also the international position.
Production strategies are considered to bet action plans which are of long term and they
are established for the achievement of the objective of the organization. Production strategies are
basically the long term action plans which are set by the company related to the production of the
goods and services (Doh and et.al., 2017). There are different types of production strategies
which can be adopted by Pashley cycles in order to expand their business by entering into the
new market that is India . The production strategies are :
Business strategies
This is the strategy which is set for the entire business for which the company is running. this
further includes more strategies that are :
Differentiation in which company has to bring something new and unique from its
competitors to win over the competitors. It might include offering better quality, effective sales
services or better quality, etc(Vagts and et.al., 2015). new product in India will leads them to
more atrction torads the organisation for the product.
Cost leadership strategy; This the strategy in which company focuses on reducing the
cost of production so that they can earn more. this is possible by producing the goods on large

scale . Large scale production can be done by expanding the business s in more regions of the
world.
Competition Priorities
Quality: this is the strategy in which company focuses in producing and providing the
high quality goods and services so that they can win the competitive advantage(Neelankavil,
2015). This will leads to attraction of the customers who are in needs of receiving the high
quality goods and will result in capturing the new customer base.
Delivery: this is the strategy in which Pashley cycles focusing on delivering of the goods
and services to the customer as soon as possible and during the specified period of time so to
satisfy the customers and create loyal brand image.
Competition advantages
Flexible response : this strategy lay emphasis necessary and immediate changes in the
production according to the change in the market conditions(Neelankavil, 2015). This quick
response will prevent the company from loosing their customers and will lead them in retention
of the customers for longer period.
Low cost: this strategy focusing on providing the quality products at lower prices by by
controlling the cost of production in order to attract and retain customers for long and also to
generate larger markets share as this will result in earning of higher profit for long and also the
achievement of the organization goal .
Marketing strategy is the plan of the business to reach to the people and converting them
as the customers for their products and services (Beugelsdijk, Kostova and Roth, 2017).
Marketing strategy is responsible for giving the marketing plan which considered to be
document which lays out different types and timing of the marketing activities in order to
increase the sales and to improve the profitability of the business. The four p's are considered to
be the strategy of marketing which also said as marketing mix. this is explained as follows;
product: this means what type of the product is offered by the company and their
capability of satisfying the needs and wants of the customers as this will help the company in
making any changes if require din the production activities of company according to
requirements of customers(Zander, McDougall-Covin and Rose, 2015).
Place: this refers to the location where the product has to offered. The selection of the
location depends on the target customers whee the product is largely required and selection of

different channels for delivering the goods and also the offering should be done in respective
place itself. Pashley cycle focusing on Indian market to expose their products
Price : This refers to the cost of their goods which consumer pay for the product
purchase by them(Hovhannisyan and Keller, 2015.). The price Pashley cycle are charging must
be equal to the value derived from it. As consumer will prefer to pay more only when they
received the equal value from it in form of satisfaction. Price is sum of all the cost incurred in
production of goods plus percentage of profit margin.
Promotion: this includes the promotional activities. Pashley cycle using the advertising
startegy marketing of good in order to make the product demanding in minds of consumers so
that they can attract larger number of customers towards the product which will result in higher
profit earning and retention of customers for long by offering quality services(Hutzschenreuter,
Kleindienst and Lange, 2016.).
Discussing the issue
There are various issues which business might face in UK and in international market
which Pashley cycles might face and some of them are :
Br-exit is the most recent and current issue in UK which is affecting the business as
many of the barrier caused to the business because of the Brexit (Richter and et.al., 2016). Say
Cross border restrictions, cross border heavy excise duties, negotiations etc causes huge negative
affect to the entire business industry of the UK.
Resourcing; It is the another challenge for any business if they planning for expanding
the business internationally. Highly skilled workforce of the UK has reduced because of the
Brexit which will also leads to reduction of the skilled workforce in the company also.
Protecting Investors- as Pashley cycles planning to expand the business internationally
and for investing in India they need to protect the investor interests(Derudder and Witlox,
2016. ). company might interested in expanding the business in particular country but their
investors might not preferred to invests in that particular country for their profit earning. this
which resulting in disinvestment and hence, company is not able to expand their business in
long run.
Cultural barriers, paying taxes, resolving insolvency, getting credit, getting power and
electricity, understanding the culture , construction permission etc are considered to be the

barriers and issues which every company has to face if they are expanding their business across
the borders.
There are some basic strategic approaches which helps the Pashley cycle to enter into the
international market which can be summarized as localization strategy, transactions strategies,
global standardization strategy and the international strategy. Company can adopt any of the
approach according to the requirements and situation in which they exists(Brannen, Piekkari
and Tietze, 2017).
Recommendations and implementation
Marketing plan is the part of the overall plan of the business . This plan generally derives
from the company's mission and goals. Long term plans are generally made for the achievement
of long term goals that is 5 to 10 years of timeline which focuses on accomplishing the vision
wheres medium term plans are made for achievement of medium term goal, say increasing
profitability within 5 years etc., these are considered to be the medium term plan.
Long term plan should be made by the company by keeping some of the major points
into the commiseration that is :
 Expectations in future
 Regularly reviewing the progress
 Corrective measures to eliminate the deviations
 Communication (Cuervo-Cazurra, 2016)
that is the business needs to plan for the future by considering the previous trends and need to set
the long tern plan that what they actually wants to achieve in long run.
After setting the plan they continuously require to review and monitor their performance
in order to match the actual performance with the planned one so to eliminate the deviation by
taking corrective actions and directing all the activities in direction of achievement of
organizational goal.
Medium term plan will be require to develop by the company in which it need to achieve
the objectives of 1 to 5 years of timeline which might increase profitability, more retention of
customers and to create strong brand value . Capturing larger share of market is also considered
in the medium term plan and this can set by the organization by efficiently focusing on the
product, place, price, promotion elements of marketing mix which focuses on continuous
improvement of the quality of goods in order to attract more customers and adoption of different