Global Market Expansion: Strategies for SMEs (Course: Business Dev)

This report provides a comprehensive analysis of the international market, specifically targeting small and medium enterprises (SMEs). It begins with an introduction to the global business environment, emphasizing the opportunities and threats faced by SMEs, including challenges such as data security and technological advancements. The report delves into the advantages of international trading blocs and agreements, examining tariff and non-tariff barriers. It explores the import and export processes, detailing the advantages and disadvantages of each, as well as the types of merchandise and service imports and exports. Furthermore, the report outlines various methods for SMEs to tap into international markets and strategies for maintaining partnerships. The report aims to equip SMEs with the knowledge and strategies necessary for successful global expansion, providing insights into market dynamics, challenges, and opportunities within the international landscape. The report covers various aspects of international trade and business, from market entry to strategic partnerships, providing a holistic view of the global market for SMEs.

EXPLORING INTERNATIONAL MARKET

Table of Contents
EXPLORING INTERNATIONAL MARKET...............................................................................1
INTRODUCTION...........................................................................................................................3
P2: Threats and opportunities faced by SME in the global environment....................................5
LO2: ADAVNATAGES OF TRADING BLOCKS........................................................................6
P3: The advantages of international trading blocs and agreements............................................6
P4: Tariff and non-tariff barriers:................................................................................................7
LO3: IMPORTING AND EXPORTING PROCESS......................................................................8
P5: Advantages and disadvantages of importing and exporting..................................................8
P6: Merchandise and service imports and exports....................................................................10
LO4: WAYS SMEs CAN TAP INTO INTERNATIONAL MARKET.......................................10
P7: Methods in which SMEs can tap into international markets...............................................10
P8: Ways to maintain partnership with business:......................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1

INTRODUCTION
The business sector is considered to be one of the vast out of which any companies strive to be
the best out the lot number of the companies that are already making success. The SME which
refers to the small to medium enterprises are said to be the one that are in the line of
development starting from very small initiations that will bring about a great change when
implemented with all the requirements (Nzewi and et.al, 2017). It is important to understand the
concept of globalisation even before entering into the international market. There seems to be
different challenges that that are associated upon expanding globally. Good reputation is
necessary in order to drive across the atrocities the part come along the way for the SMEs.
Adaptation policies are required for a company in order to get habituated for the fact that they
will have to bring across the output that are in target. The entire report aims to bring forth the
global expansion measures and the strategies that are important for the company in order to excel
in the country where it is planning to expand. Nevertheless of all the struggles and the calamities
that are in the way of development the company will have to learn to adopt the policies of the
country where it is going to expand.
LO1: THE OPPORTUNITIES AND THREATS FOR FIRMS EXPOSED TO
AN INCREASINGLY GLOBALISED ENVIRONMENT
P1: Global business environment in which small and entrepreneurial businesses
There are different external factors through which the business environment will have to come
across. Every company will have to focus upon implementing strategies that will face the
internal as well as external factors. There seems to be strategies that are to be adopted with
regards to the policies that can deal with clients as the last the technological implementations. A
scope that will bring forth its suppliers as well as your organisation in two-point boundary will
help the host country to believe in the formula that the company is striving for (Gregory and
et.al, 2019). The country into which the company is going to expand is said to be consisting of
norms and policies that are to be followed and incorporated into the company such that whatever
comes in its way will have to be faced in a suitable manner such that it can maintain relation with
the locality and the country as well.

Challenges:
The kind of challenges that every small business will tackle will impact its growth prospect. The
responsibility of all the companies that plan to expand globally will have to be added in such a
manner that they swim across the global pressure that is created upon its operation. Here the
retailer Argos has incorporated into the norms and policies of the government that it has plan to
expand and therefore the challenges that are in its prospect are said to be first learnt and then
they are to be made as an objective to conquer. It is not until when the company considered its
challenges as some of the targets that are to be achieved then the company will therefore come
with the strategies that can deliver outcomes that are needed for it to with stand global pressure.
The same is done by the company Argos. Its business atmosphere is determined by compatibility
that the company has developed over the Global strategies.
Diversity:
Diversity will determine the entity of small businesses. The businesses that are intended to get
into the developing aspect in terms of global expansion will first have to focus upon the strategy
of expansion (Yang and Gabrielsson, 2017). This is mainly applicable to the entrepreneur that try
hard to achieve a good reputation from the government or the other entities where the company
is planning to expand. This is said to be a simplified version of recognition where every aspect
and talent of this small business will be recognised as one of the greatest achievement and this
can also push entrepreneurs forward for their deeds.
Virtual shopping carts, secure online payments and social media presence
The greatest deal that is associated with the businesses is the way they appear in the social media
and attribute towards maintaining the pace of secure online payments and virtual shopping. The
Argos retailer services has launched the process of online trading where people can purchase
items upon order and then can pay securely with the online transaction criteria.
Entrepreneurs in global business:
It sure is an immense task that is to be accomplished by expanding the company globally which
is associated with many difficulties and atrocities that come along the path that the company has
chosen in order to expand overseas (Rojas and Pineda, 2020). For small and medium companies
which are the SMEs they find it a little difficult if there is no proper base that can maintain
international partnerships. Some of the opportunities for entrepreneurs to expand globally are as
follows:

Invest in multiple businesses:
There are different self-made billionaires across the globe who invested upon their own
businesses in utilising the different opportunities and creating a way for new opportunities to
arise. There is a greater scope for self-made people to focus upon the opportunities instead of just
investing up on a particular Idea. there are different business owners all over the world who
focus and invested upon an idea and succeeded in the ways that are profitable.
Crowd funding:
Crowdfunding is defined as one of the best changing landscape solutions of all the industries in
the market full stops it acts as a Kickstarter for all the entrepreneurs around the world which
provides loans and invest upon their ways of going straight to the customer to enquire about the
level of growth that is associated with the idea. Crowdfunding is set to encourage more
innovation and diversity and it is said to be a level of growth for the ones that are operating and
competing in a particular field.
P2: Threats and opportunities faced by SME in the global environment
The biggest threats that are related with the SMEs are as follows:
Data threat:
The data of every company will have to be preserved on all terms and conditions since losing
data will impose severe threat to the company’s privacy. This is one of the major threats that is
prevailing since long time and that is to be dealt and safeguarded.
Technology:
Technology is considered to be one of the oldest yet a modern threat that is usually seen
everywhere in the organisation that is competing in the marketing field. While one company is
using the oldest technology the other will be moving ahead with the implementations that are in
regard of new technology. Just because the other companies are benefitting by introducing the
new technologies and without carrying out the tests the other companies cannot take the risk of
implementing the same (Muûls and Pisu, 2009). The company will first have to ensure the
liabilities that are associated with the technology before implementing in order to get saved from
cyber-attacks.
Business interruption:
The insurance aspect is the major one that is seemed to be lasting as a threat to the SMEs. The
rate a which the company’s insurance is derived will matter most in the prospect. The insurance

of any company will last for a period of 12 months. In case of any calamities the company will
therefore suffer if it goes under insurance.
Opportunities faced by SME are as follows:
Adoption of technology:
In today’s era technology is at the perk of conquering the businesses. the SME can take the help
of the mobiles and internet access to grow wide in order to attain the growth factors. Adopting to
certain technology and by maintaining consistency, the companies can strive for excellence.
Seeking help from government:
There are certain countries where the government introduces the schemes and give opportunities
to the new SME and the ones that are existing and operating but are not flourished because of the
lack of resources. For such companies they can seek the opportunities that are lend by the
government in order to flourish.
Going digital:
Digital usage is seen and is a havoc in the present world. The SMEs that are trying to get
portrayed to the maximum people all around can take the digital marketing tool in order to get
much reputation sin social networking sites that will in return help them fetch the shareholders
(Gephart and et.al, 2019).
LO2: ADAVNATAGES OF TRADING BLOCKS
There are aspects that are related to developing from using measures from the countries that are
going strong in the pace of development. there will better trading opportunities that will be
provided to the set of countries and these are called as trading blocks. There is a structure that
can be followed from these trading blocks. That might state from the lower to a higher
personified version which will guarantee the onset of change and development.
P3: The advantages of international trading blocs and agreements
Drop of trade barrier:
There will be a massive change with respect to the manufacturers if at all there is a change in the
trade barrier. This will definitely increase the efficiency of the work than can directly produce
better products.
Benefit for consumers:

The benefit that is associated to the goods and that for the customer is such that the quality
foreign product are sold at cheaper rates and people can buy them at instance.
Competition:
There is more of competitive aspect that can be seen in this scenario. The goods that are derived
from foreign means can therefore be sold at cheaper rates.
Difference in strengths:
All the countries differ from the aspect of strength. Therefore the strengths that are exhibited by
the others ay not compensate with the existing ones. So the weaker one that is struggling in this
aspect can get benefitted using the strong ones power.
P4: Tariff and non-tariff barriers:
The obstruction offered on the products that are being exported to the other countries are called
as tariffs. The different types of tariff and non-tariff barriers are as follows:
Tariff barriers:
Duty related to specific tariff: there are certain physical quantities that are to be taken into
account of being the best. the allotted ones especially those that will fall under the tariff
commodity is said to be the belonging community. This duty is one of the simplified form.
Ad valorem duty: there is a certain value that is given to the product in this duty (Habanabakize,
2019). It will certainly emphasise upon the value that can be given irrespective of how much it is
being weighed.
Combined duty: the combination of both mixture and ad valorem duty is called combined duty.
This will represent the aspects of both the tariffs.
Tariff of Revenue: there is a kind of taxation that is imposed by the government upon certainties
of the load and the export. These are called as revenue tariff.
Tariff of protectiveness: there are many domestic industries that are getting effected by the
policies and therefore this particular tariff mainly focuses upon the protection that must be given
to these companies.
Non-tariff barriers:
A non-tariff barrier will free the imports and exports which will not affect the naturality of the
goods. The non-tariff barriers are as follows:

System of Quota: there are certainties in this system which will particularly revolve around the
concept of advancement and the considerations. The firm will have to accept the policies and
will have to move ahead with the mentioned aspects carefully.
Standardisation of product: there are many rules and regulations that are mostly followed and
obeyed in the importing and exporting process. The specifications that are in charge of the
product will have to be satisfied in order to step ahead of the challenges.
Labelling of product: proper labelling is a necessary aspect that is to be looked into carefully.
One may not be able to adhere the circumstances that are associated with in appropriate
packaging. Many of the big countries major consideration is to carryout proper labelling.
Packaging concept: packaging is defined as one of the crucial component in the trading aspect.
And that with regards to the European countries is said to be one of the toughest aspect to
accomplish without a good packaging. The packaging in this can be only be carried upon
selective measures and mechanisms.
Trading across state: there is a method of imports and exports that is related to a particular state
that will define its entity. There can be no direct imports and exports that are carried for these
kind of states since they are permitted and confined to only one.
LO3: IMPORTING AND EXPORTING PROCESS
There is a kind of competition that can be derived from the onset of times with regards to the two
processes that are required to cope up with the aspects that are related to importing and
exporting.
P5: Advantages and disadvantages of importing and exporting
Advantages of exporting:
Ownership: there is an advantage of taking the sole ownership which is possible upon the
aspects that contribute towards being the advantages. The entire process that starts from
receiving goods and trading, the owner will be the responsible one.
Selling or outsourcing: there is a need to retain the core competencies without the risk of tariffs
and that will portray the increasing aspect of outsourcing.
Investment: exporting of goods will not require much investment. There are many other
practices in this regards yet the investment rate is regarded to be low.
Disadvantages of exporting:

Difficult: the small and medium size firms will get impacted by the exporting of goods. The
small investments are being put on the small and medium size ones and that will definitely
impact the investment and deals.
Language: exporting is not a minimal task to accomplish. It involves different countries and the
contacts are to be done between many countries. sometimes it will be difficult for the firms to
communicate because of language problem.
Financial management: financial management is considered to be the greatest of all kinds.
What ever good that are exported will have to rely upon the charges where there are different
divisions that are to be paid. The labour cost the shipping costs and every statistical data are to be
thoroughly examined in order to perform the process of exporting.
Advantages of importing:
Profit margins: there will be certainty in the profit margins. The importing of the goods and the
essentials will probably increase the profit margins that the firm is expecting.
Comparative advantage: when associated with importing, an importer can have the
comparative advantage which is linked up to the low cost. the importing process can further be
modified upon the choices made by the company to bring about the aspects related to rates.
Government: the role of government in the importing process is regarded to be one of the assets
for the manufacturers. The government tie ups will help the foreign exchange to buy good at
lower prices but with a higher quality.
Disadvantages of importing:
Conflicts: the social norms are considered upon the domestic ones in terms of importing. When
the products are good but they do not fit the social norms then the goods are regarded as useless
which will further lead to conflicts.
Erosion of domestic markets:
Domestic markets are getting eroded and there are various atrocities that are seen in them. This is
the major reason for introducing importing. The manufacturers can get benefitted with the
improvement of trade.
Ways to secure a deal:
Securing a deal is where every prospect lies. Therefore, there are certain ways that are to be
followed upon securing. They are as follows:

Establish baseline credibility: there are different companies that are moving forward in a hustle
of not losing their policy of trade. Upon this urge there seems to eb a sense of non-administered
thoughts that are generated on a whole which is the biggest mistake that is being committed.
SMEs will first have to develop strategies to resist the barriers. Only through this the clients will
develop a strong belief about the business.
Get to know what client needs: in order to expand the business, it is first recommended to know
the client ideology rather than portraying what the business is good at. the client ideology will be
portrayed only when the requirements of the clients are adhered and then accepted. These
requirements are to be worked for and then the client ideologies will have toe be worked upon.
Then the business will get the required target to accomplish without further wastage of resources.
P6: Merchandise and service imports and exports
Merchandise imports and exports:
Merchandise refers to the physical goods. The products that are made or manufactured in the
home country and are being exported to the other countries overseas is called as merchandise
exporting.
Services imports and exports:
Services are the tact that are to be exported to the others. When a business is offering its services
in its space then there is a demand for it to expand its services overseas. Then this particular
exporting is called as service exporting.
IMPORTS AND EXPORTS MERCHANDISE SERVICE
PRODUCTS The imports and the exports in
this aspect are tangeable.
The non-product international
earnings are achieved here.
COUNTRY In this process there is a
certainty of bringing imports
and exports into the country.
The product that is to be
imported will rely upon the
individual price.
EXAMPLE When a Chinese contractor
sends toy action figures from
China to United Kingdom, the
contractor exports and United
Kingdom imports.
The company or individual
paying is making a service
import. When an American
tourist stays at a hotel in
London, the hotel stay is the

service export.
LO4: WAYS SMEs CAN TAP INTO INTERNATIONAL MARKET
P7: Methods in which SMEs can tap into international markets
Exporting:
Through the process of exporting, the companies can enter into the international markets which
can be done in two ways which are direct and indirect ways. In the direct manner the company
can invest upon the capitalization and in indirect method the exporter has no control over the
product.
Advantage: this process will accompany in the distribution of the surplus and is regarded as the
less costly and the less risky.
Disadvantage: the start-up cost is high in the method of direct export.
Joint venture:
The method of joint venturing is regarded to be one of the finest approaches that is adhered by
the organisation in order to enter into the foreign market by joining hands with the one that is
already making success.
Advantage: it gives a good technological competence and will make use of optimum resources.
Disadvantages: this is a costly step which will also include more conflicts between the
companies.
Outsourcing:
This is the process in which the companies when cannot complete their internal tasks will
forward the works to the other companies. This process is associated with domestic and foreign
contracting.
Advantage: there will be a swiftness in the method and the work can be duly completed. This
method is said to be reducing the costs.
Disadvantages: there will always be a risk of exposing the confidential data with other firms
which is the greatest risk of all times.

Franchising:
This is the method in which the product company pays its due to the parent company in order to
get its own trademark to continue as one of the known standard company.
Advantages: it is considered to be less risky with expertise employees.
Disadvantages: the franchise may in future become one of the competitor.
P8: Ways to maintain partnership with business:
Real Relationship:
It is important to carryout a relationship that can be portrayed upon things to discuss aspects.
Therefore, a real relationship will have to be adhered in communicating things.
Working on early plan:
The planning prospect plays a major role in every industry. There is a need and an urge to
establish plans that will constitute works. A properly visioned plan is important to carry on with
the works.
Constant communication:
Communication is important to cope up with the changes and the modulations will derives means
through communication. Therefore in any business, communication is mandatory.
CONCLUSION
The entire report deals with the expanding the market to the international one. The small-scale
businesses strive to expand their business in the international point of view which will be a mere
task to accomplish. The small-scale businesses will have to maintain the norms and the rules that
are associated with the most out of the lot that will make it one of the best planning business. the
report brings forth all the essentials of an SME to expand globally. The report explains the