Rahat Continental Ltd: Strategy for New Venture in UK Market

This report examines Rahat Continental Ltd's strategy to expand its business from India to the UK, focusing on cotton wear for children through an e-commerce platform. The report begins with an introduction outlining the company's goals and the strategic importance of international expansion. It then presents a detailed analysis of the strategies used, including PESTLE analysis and BCG matrix, to assess the UK market. Key business drivers, such as market relevance, financial resources, and the baby clothing industry boom, are identified as crucial for success. The report also addresses important trade barriers and protectionist policies, including tariff and non-tariff barriers, voluntary export restraints, and embargoes, and their potential impact on the venture. Furthermore, the report explores the differences between e-commerce and other expansion modes, relevant aspects of international marketing, and the potential impact of Brexit. The conclusion summarizes the key findings and recommendations for the company's successful entry into the UK market.

INTERNATIONAL
BUSINESS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Strategy proposal used by organisation to start new venture ................................................1
PART 2 ...........................................................................................................................................2
Key business drivers behind the expansion............................................................................2
Important barrier to trade and protectionist policies .............................................................3
Ethical, social and legal issues ..............................................................................................5
Cross-culture issues ...............................................................................................................8
PART 3............................................................................................................................................9
Difference between e-commerce and other modes of expansion...........................................9
Aspects of international marketing relevant to proposed venture........................................10
Potential impact of Brexit on the venture ............................................................................12
CONCLUSION .............................................................................................................................13
REFERENCES .............................................................................................................................14

INTRODUCTION
Every organisation wants to expand its business to increase their market share, gain profit
and maintain strong position in marketplace. There are various types of strategies which are
implemented by organisations for smooth running of their business (Andry and et. al., 2015).
There are different types of factors which impact the business environment. It has a positive as
well as negative impact on the performance of company. Management of organisation needs to
determine these factors and implement distinct strategies in order to resolve various issues which
arise while performing different types of operations of organisation. It is important that solution
to different problems is identified on time so that accordingly solution is found. These strategies
help to manage all operations to accomplish different types of tasks in an effective manner.
Rahat continental limited is a Package/Freight Delivery company located in 4 PETER JAMES
BUSINESS CENTRE PUMP LANE, HAYES, MIDDLESEX, United Kingdom. Management of
organisation wants to explore its business from India to UK in the field cotton wear for the small
children. They are doing this expansion by making use of e-commerce platform. They are also
planning to get the expert supplier from India who are making cotton wears from children form a
long period of time. So, organisation needs to recognise various factors of UK which helps to
start a new venture in the UK.
TASK 1
Strategy proposal used by organisation to start new venture
In order to start a new venture in different nation, Rahat continental Limited performs
various types of market researches to recognise various factors of UK in an effective manner. For
this, management performs PESTLE analysis and BCG matrix to inculcate with these factors.
These two strategies play a significant role to determine the various factors. The brief of these
two analysis is given as below:
 Political factor: Is concerned with rules and regulations made by the government of UK
in order to start a new venture. The management of organisation needs to follow these
norms for smooth running of business.
 Economical factor: This factor is concerned with allocation of funds from different
resources. Management needs to recognise tax policies which help to perform various
functions of business in an effective manner.
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 Social factor: It is another element through which the latest trends in UK are identified.
It assists in recognising the different aspects of society which help to start a new venture
(Blazejewski, 2011).
 Technological factor: This factor deals with the implementation of technology in order
to perform different processes of organisation in order to manufacture cotton wear for
children.
 Legal factor: This factor is concerned to recognise the norms and different policies in
order to maintain proper functioning in an enterprise. This factor helps to attain the
effectiveness of organisation. Management needs to prepare necessary documents of
organisation so that work in organisation can be carried out in most appropriate manner
(Chalasani and et. al., 2013).
PART 2
Key business drivers behind the expansion
In order to maintain viability and effectiveness, business organisation needs to expand its
business in the UK. Company should determine various drivers which help in expansion of new
idea of venture projects by diversification of different segments in which organisation is
concerned. For expansion of business, company needs to determine various factors which help to
improve the business in market of UK. There are various drivers which lead to give an
opportunity to expand the business firm.
 Market Relevant Factor: For online shopping, it is the most important factor of Rahat
Continental Ltd. Which delivers services in different parts of the world (Connell and
Mahadevan, 2012). There are chances of loss too in the same business. Organisation
needs to prepare strategic plans in order to start a new venture in the UK market related
to India. Although, this organisation is highly efficient to establish a new venture. The
management of organisation can attain effectual goals and objectives. There are less
chances that the firm faces problem of lack of finance. Management needs to determine
various factors which are responsible for change in the condition of market. Some of the
most common one are discussed below:
 Financial resources: According to research, company needs to invest a huge amount of
capital in order to make company successful in the market of UK. As Rahat continental
has good performance record in Indian market it helps them to attain better financial
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resources (Cotton, Falvey and Kent, 2012). It aids in investing high amount of funds in
starting a new business venture and it also leads to make appropriate backs up for
uncertain events of business when funds requirement may increase. As the refereed
enterprise is having good business networks in India by expanding its operations in same
country it can further raise its scale. It is relevant element of Rahat continental Ltd to
explore its business in UK.
 Boom in baby clothing industry: India is popular for producing effective clothing and
cotton baby wears at global level. In order to expand the refereed enterprise can use
different strategies like through segmentation. To produce product for that particular
segment use of different strategies can b done and online marketing can be used for the
particular targeted segment. People living all over world prefer these cloths for the
children. There is chance to generate a large amount of profit due to boom in the market
of UK. So, organisation needs to take an opportunity to expand its business in order to
gain profit and build sustainable brand in the field of cloth industry. It helps to achieve all
set goals and objectives of the organisation.
The targeted customer of the refereed enterprise is ladies having small babies as it is
dealing in small baby products. This way it plan the marketing activities for them accordingly.
Effective market research is done in order to identify the different competitors and their products
are examined so that accordingly they can be used to develop on offerings.
Important barrier to trade and protectionist policies
Protectionism: This can be consist as an essential economic policy which is created by
the government of UK in respect to curtail or restrict the import through nation by applying
different methodologies which are interconnected to the tariffs that can be implemented through
agencies on products and services. On the other side, trade barriers can be analysed while two or
more countries make rules and regulations as to maintaining the appropriate flow of goods and
services within and out side of the country. The major focused area of Rahat Continental Ltd to
expand its business operations at large scale and they faces various issues and barriers at the time
of conducting its business operations at global level. This is a broad level practice in which taxes,
duties, acts and other factors are involved. It is concerned with the free trade operations that are
not necessarily be presented in different countries. A trade barrier concerned with tax imposed
by contrary state of UK leads to control the flow of various goods and distinct services. It
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enhance the import cost in reference to local and domestic services. Protectionism is being
considered by each and every nation when they see bring up in outside organizations turns in
their own market as they may put affect on productivity of individuals who are serving residents
of country at household level (Derudder and Witlox, 2016). Subsequently, these standards which
has been presented by government ought to be remembered by Rahat Continental Ltd with a
specific end goal to work together legitimately. Some exchange obstructions are given below:
 Tariff barrier: Import taxation of a nation may build barriers for an organisation which
is concerned on implementing its business operations at global level likewise
organisations are offering their products at high price and consumers are not buying the
products due to the reason of high cost. It is related to specific rate of tax which is being
imposed on imports of any products. This makes products costly, hence it becomes easy
to defeat same as price barrier is faced by the enterprise. This kind of obstruction is
much pertinent and assumes an essential for a nation. As this may help government of
UK to provide equal opportunity to the local business, who are conducting their business
operations in different sectors, Rahat Mainland Ltd. May faces issues that are identified
with this as government organizations have actualized different assessment strategies
when an organization is trading items and administrations. It is essential for Rahat
Continental to know about the all policies which are related with the norms of tariff as to
implement their business operations within UK. The company is widely concern on set
up online e-commerce facilities as to rendering high quality cotton wear in United
Kingdom.
 Non tariff barrier: This is also an essential element in which various kind of barriers
are involved such as import licensing, rules or regulations for valuation of products, pre-
shipment inspection etc. It is related with regulations of some norms and conditions
which makes the whole procedure more complex. It delays the performance processes of
various business operation (Deshpande and Srinivasan, 2011). This consist to be an
essential issue for the organisations which are expanding its business operations at global
level. Rahat Continental Ltd. Faces barriers related with import and export procedure of
the firm in regards to the products and services. As a small company Rahat Continental
is concern on expanding its business venture in UK, they intend to set up online e-
commerce platform in respect to sale organic cotton wear for infants or babies. It is
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essential for an online company to know about the tariff policies as to delivering the
appropriate product and services to the significant customers.
 Voluntary export restrained (VER): This is related with limitation of import of
different products made by the government of UK. This barrier has direct influence on
profitability of Rahat Continental Ltd. As the government of United Kingdom create
some limitations in the potential amount of import. It is evaluated that this is not that
relevant for Rahat Continental Ltd. As the company is not having its manufacturing unit
the some is simply providing goods and services to their buyers.
 Embargo: It is concerned with those products which are ban in a particular nations.
This is implemented due to some political issues which are prevailing in UK market.
This policy is effective for the organisations who are work in shipping sector, as it is
much effective for shipping sector as the government authority of the United Kingdom
keeps on making appropriate changes in their tax policies which are related with import
and export. Any kind of mendacious activity of Rahat Continental Ltd may get banned
by the government of life time and that company will not be able to conduct its business
operations in the country.
Rahat Continental Ltd takes initiatives to determine various barriers of trade and analyses
different aspects of enterprise before starting the new segment of business venture and market of
UK. This company starts its business in the form of online mode of shopping. So, before starting
a venture, it is essential to determine various factors in order to meet the targets in an effective
manner. These are factors which are used by management of different enterprises in order to
ascertain goals and objectives of organisation. Also, it is helpful to attain the goals and objectives
of organisation. It aids to start a new venture in the UK. This will help to attain the effectiveness
in performing different working strategies.
Ethical, social and legal issues
There are different problems which arise during beginning of new projects in new
segment and environment. Rahat Continental Ltd should determine various factors like social,
legal and ethical for effective performance of different functions which are related to e-
commerce business in United Kingdom. Due to change in nation, there are various problems
which arise due to variations in laws and legislation of the nation where organisation is going to
start a new venture (Emuchay and Jean, 2013). The organisation should inculcate with different
5

legal aspects like information rights, governance system, property rights, welfare of public and
many other issues.
It is being analysed that new business attains employees who were performing their
duties in the same set of understanding with another organisation which is related with same
traditional culture. So, it is difficult to establish a unique organisation in nature perspective.
Rahat Continental Ltd is able to explore its business at global level. It may be chance to find
totally variable with different culture of people. So it is essential to determine the condition of
market and gain desire and wants of people (Hinton and et. al., 2013). As United Kingdom
concern with modification in various technologies policies, and other relevant area in a
systematic manner.
There are various factors which are essential to determine the in effective manner are
given below: Employment: The policies which are related to wages given to employees are different
from UK than India. So, it is important for new business to concern about the wants and
desires of employees working in the organisation. By this, it helps to retain long term
relationship with different employee in organisation. Taxes: There are various norms and policies which are imposed by the government of
UK. These rules and regulations are very strict. Thus, it is important for the employer to
determine different conditions which help to generate a high revenue at higher amount at
low taxes.
 Marketing: Main objectives of performing research in market leads to attain the target in
an effective manner. Management needs to concentrate over promotional strategies of
products and services to its loyal customers. Promotion helps to expand the capture mind-
set of customers in an effective manner.
Therefore, organisation needs to solve various issues and also determine their values.
Different stakeholder, legal, protection and many other issues are there which are different from
India and need to be analysed timely. Management needs to follow rules and regulations which
are made by government in order to ascertain goals and objectives of organisation. Manager of
company needs to implement different pricing strategies in order to stand before the different
rivals present in marketplace. It also recognises various types of strategies which help to
accomplish the goals and objectives of organisation.
6

As per the views of Khilji, 2012, it is explained that the primary ethical issues which arise
during the expansion of business are related to the cotton wear of small children. There are
different condition in which the refereed enterprise operate in UK market (Friedlander and Khan,
International Business Machines Corp, 2013). Rahat continental limited have to consider
different types of ethical issues which create obstruction in operating business in UK. Given
below is a comparative study of business environment in two different countries:
Basis India UK
Political There are less availability of
resources in India and hence it
restricts the capacity of an
enterprise to develop.
After Brexit, the political
conditions of UK is stable and
hence business face less
complexities. Therefore
company can take advantages
of starting new venture in UK.
Economical condition Refereed enterprise has its
existing venture delivery of
parcels in different country. So
the economic condition of
company is better if they start
new venture in different sector.
At the same time different
problems are also faced due to
complexity of tasks involve in
the refereed enterprise.
As it has less competitors in
market it can expand by doing
innovations in its existing
products and marinating
quality of same.
In order to raise the present scale of operations the refereed enterprise can use the process
of online marketing. It is an effective tool through which more people can be targeted at reduced
price. Though it is an effective tool of sales promotion it has few drawbacks too. As it covers
wide range of respondents same faces few ethical problems too. Some problems are discussed
below:
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Cross-culture issues
It is related to the various issues which are arise due to change in culture from one nation
to other nation. Due to change in culture organisation needs to determine those changes in order
to maintain the environment of organisation in effective manner (Khilji, 2012). There are some
potential condition which helps on which there various issues are raised:
 There are various disputes arises while change in the culture of different nation. It can
based on religion colour issues and many other issues.
 Due to lack of acceptability of different culture of one nation to another nation. People
ignore the culture of other country as they resides with their cultures.
 Due to lack of willingness about the different lifestyle practices which are follows by
people living in the society. As there are different life style followed by people of India I
comparison to people living in UK.
 Due to variability’s in practice of culture (Neelankavil, 2015).
 There are lots of variabilities to treat if employee faces any accident or feel sick.
 Due lack of communication between the people living in India as well as UK.
The employee working different group they are comes from different culture and have
different background so it is chance of various types of issues and ethics while performing duties
on the workplace. There are challenges which is faced in due to cross cultural business in
comparison to India to UK. There are various issues which are arises during performing various
function in the organisation transfer in order to perform various types of functions in
organisation. Rahat Continental Limited implement different strategies in order to create
effective environment in order to perform various types of functions in effective manner. It aids
to inculcate with different types of function in a systematic manner.
There are various initiatives taken by the manager of the organisation in order to solve
the issues which are arises by the organisation in order to manage the different activities in
effective manner. Company needs to conduct various types of training session to employee to get
them aware about the rules and regulation of the organisation. It help in giving them a path to
perform their work in effective manner. There are various strategies which are implemented in
order to solve the various issues which are arises due to the cross culture within organisation.
There are lots of discrimination arises which is based on the colour, language and many other
way.
8

In order to solve these issues manager of the company needs to consider the working
activities of the organisation. It is important that planning for the business operations is done
after analysing the current policies of the new nation. Company determine the different types of
strategies which can assist to impact globally on the different operation which is performed by
the organisation in new nation and as well as existing nation where organisation going to start
new venture.
PART 3
Difference between e-commerce and other modes of expansion
E- Commerce is the activity which concerned with the buying and selling of products by
online medium (Piekkari, Welch and Welch, 2014). In order to perform various types of
activities which are related to various functions like fund transfer, mobile marketing, internet
marketing, online marketing supply chain management. And many other methods to sells the
products.
There are three main division like electronic market, online auctions, and selling of
products by online medium. E- Commerce is the new method of marketing and promotion of
different by product through online medium. Organisation needs to prepare a website and all
information’s and description of products are mentioned by the organisation. These products are
promoted by the help of different electronic media which helps to attain the goals and objectives
of organisation. The marketing manager of the company is publish advertisement of different
services and products to the various social networking sites in order to per mote those products to
its customer. It helps to boost the economy of the company as well as the nation where
organisation is being established (Ruvolo, Schirmer and Zeller, 2015). It help to promote the
different products and services in order to enhance their rate of sales and maximise their
profitability.
By promoting online medium it is very user friendly so that various customer can choose
products in effective manner. Company needs to choose different types of strategies in order to
expand the organisation as per the demand made by the customer. In this contemporary scenario
the main objective is to give values of the gods which are provided to the customer. It help to
retain long relationships with the customer. It leads to meet the goals and objective of the
organisation. The main cause for build good perception toward the customer in order to provide
9

service 24*7 service to its customer in order to provide assistance to the customer it take
complains from them and tries to solve them in very short period of times.
Although there are some drawbacks which should be considered by the management of
the company and implement effective strategies in order fulfil the draw backs issues. For this
they have to make a substitute plan to retain the service in effective manner. This will give the
qualitative work to the customer make good perception of brand in the marketplace. There it can
be assumed that choosing online medium of marketing is the effective approach to proper
running of business venture. The manager of organisation implement various technology in order
to provide qualitative service to the different customer.
Management can start home delivery system in UK as this is the best way to attract larger
number of customer in the marketplace. Manager needs to implement different methods of
deliver the products in short time period. Implementation of fast medium of transportation it aids
to enhance the performance of company. Online shopping is best method to explore its business
in UK. It also helps to enhance the performance of organisation in proper manner. Opening own
retail stores or entering in UK by making other strategic alliance are few other options but e-
commerce is can be considered as the best option.
According to rules and regulation of UK, organisation are not allowed to make child wok
in order to accomplish different demand and desire of the organisation to save its total cost. This
effects the demand and profit margins of the enterprise. The supplier of company and
management of institution needs to implement different technology which are eco-friendly and
do not harm the nature.
As there is ban in both nation for children to do work in any types of industry in both
nation so in order to start new venture in UK Company needs to follow the rules and regulation
made by government. Collectively it is define as child labour is offence in both nation so
organisation do not recruit child worker in order to perform different types of work in industry.
Aspects of international marketing relevant to proposed venture
There are some major of feature of international marketing that are very beneficial for
the new venture which are describe below:
Dominance of multiple: this is the prime factor by which the Rahat Continental Limited
can find its relevancy. There are many organisation such as M&S Tesco Aldi and many other
industries by which Rahat Continental Limited dominated by them (Scullion and Collings,
10

2011). This industry is dealing with manufacturing of baby wear it has been determined that
investing the capital in such type of business is beneficial for attaining huge profit and also got
opportunity to establish a strong brand in the marketplace of UK.
Market research: It is very essential to perform market research at different level in order
to determine the various element of marketing condition before starting the venture. This
research helps to determine the needs and want of the customers. Manufacturing of products can
be accomplish as per their demand (Stroke, 2015). Market research is helpful to minimise the
various types of risk in an effective manner. It also helps to determine the shape, size and
structure of the organisation which leads to establish favourable environment for employee
working in the organisation.
Importance of advance technology: Technology plays a significant role in order to
smooth running of any business venture. Implement of new and innovative technology leads to
accomplish different types of function in stipulated time period. Every small and large scale
organisation needs to adopt new and innovative technology in order to accomplish their goals
and objective in effective manner. It helps to improve the skills and knowledge of employee
working in the organisation. These technology plays an important role in performing various
types of function of organisation in stipulated time period there are some physical and abstract
things which give their impact on the performance of the organisation it leads reduced the
performance of the organisation and also create obstacle to accomplish goals and objective of the
company. By implementation of these new and innovative technology Rahat Continental Limited
can perform these functions in effective manner. It also help to accomplish demand made by the
customer which helps to establish sustainable brand in the marketplace.
In order to gain more profit organisation needs to implement these technology in short
time period. It helps in fulfil desire of various customers in effective manner. It gives the positive
impact on the organisation in order to expand and growth of business in new nation. It also aids
to capture large number of shares in the marketplace (Kolk, 2016). In order to expand business in
other nations the management needs to go through the reliable supplier which provide different
product. These suppliers should be able to provide different types of raw materials in order to
produce different types of products and also attract large number of customer in effective
manner. This also have positive and negative impact on both the nation. The positive impact of
this is that it assist company to explore its business to maximise the profitability of organisation.
11

On the other hand negative impact of same is that exploring business in other nation leads to
lower the rate employment and also decrease the revenues generation by the existing nation.
Potential impact of Brexit on the venture
Brexit helps to maintain stability in the Market of UK and also Europe due to dislocation
of both the market. It affect new business venture as well as existing business. The main issues
which are arises by the Brexit it interconnected the United Kingdom and the capital market of
United Kingdom (Knight and Colin, 2014). It influence market of union project. After Brexit
come into existence the UK and EU regulation under this both these negotiate with the policy of
EU in future both of them have different rules and regulation in order to smooth running of any
business. After Brexit, there are various employer migrant from outside due to recession. Due to
low cost barrier, it has become much easier for the firm to import services in particular area or
region. Rahat Continental Enterprises have positive prediction for operating its business and
expanding it various parts of Britian.
However, UK Government is in favour of opening large number of small business
venture that contributes immensely towards the GDP of country (Wilson, 2014). According to
the statistics report, it has been figured out starting a new business venture in respective country
leads to generate higher return on investment which increase the chances of its success.
Moreover in order to take the advantage of higher competitive level, the company has decided to
introduce its business through the platform of e-commerce. Brexit has the potential to reframe
existing rules and regulation and tax policies which are made for companies to operate their
business in of UK.
In addition to that, government has provided freedom to other countries as well so that
they can start their business in other part or region of United Kingdom. This is further motivating
the entire nation to create open market economy that allow companies of different countries to
contribute in their GDP as well. As a result, Rahat continental limited can easily enter or start
their business venture within the UK market. Due this Brexit issues organisation found different
types of issues while expanding the business in other country. There are many factors like
instability in government, change in rules and regulation after Bexit occurs there are different
types of changes in the tax policies, implementation of various types of employment law and
many other issues which are faced by the organisation in order to explore business in UK.
Organisation needs to follow various rules and regulation in order to expand its business in UK.
12

CONCLUSION
According to the given report, it can be concluded that conducting a business in the
international market is not an easy task and lots of activities are required to be taken care by the
entrepreneur so that their venture becomes successful in other companies as well. There are
various ways as well which can be chosen by companies so as to expand their functions into
another country. In this report, a company is expanding their venture into UK by making use of
e-commerce platform so that they can connect with maximum no. of customers and gain
maximum amount of profits as well. It uses available resources, technologies and services all
across the globe. It is important to measure different barriers existing in the form of legal,
ethical, cross-cultural differences that vary from country to country as they have major impact on
operations of business. Thus, through developing effective market strategies, eliminating
barriers, analysing market condition improvements can be made efficiently and effectively.
13

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