Exploring International Markets: Ella's Kitchen's Expansion Strategy

This report, prepared for Barclays PLC, examines Ella's Kitchen's plan to expand into the Australian market. It begins with an introduction to the global environment for small and entrepreneurial businesses, with a focus on the United Kingdom's business environment. The report analyzes the political, economic, social, technological, environmental, and legal factors influencing the company's expansion. It explores the rationale behind international expansion for SMEs, highlighting the opportunities and challenges associated with global growth. The report also covers trading blocs, agreements, tariff, and non-tariff barriers, and their impact on SMEs. The analysis includes the advantages of international expansion, the role of trading blocs in stimulating growth, and concludes with a summary of the key findings and recommendations for Ella's Kitchen's expansion strategy.

Tapping into New and
International Market

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
Introduction to the chosen country and region and explain the global environment in which
small and entrepreneurial businesses operate.............................................................................1
An analysis of the global business environment and the influence of key global drivers
specifically in relation to the United Kingdom...........................................................................2
Rationale for SMEs to expand their business internationally.....................................................3
SMEs take advantage of international opportunities and overcome barriers for global growth.3
Trading blocs and agreements and advantages...........................................................................4
Various tariff and non-tariff barriers that exist in international trading environment................4
How international trading blocs and agreements stimulate and generate global growth for
SMEs...........................................................................................................................................5
TASK 2............................................................................................................................................5
CONCLUSION:...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
The current market conditions and huge competition demands the organisation to expand
their operations on to a global level. A business seeks to achieve its goals and objectives in
terms of growth and development by planning all the course of action efficiently and effectively
(Najmaei and et. al., 2017). The foremost step in the growth plan is to establish the company's
branches within different developing nations apart from its originated country. This enforces a
firm to enhance the functioning level of a business's trading, production, marketing and sale to a
whole new level of market. In this context the management can use several tools and implement
all those principles of working into new and international market.
This report is prepared for Barclays PLC, a most efficient global financial organisation
which majorly offers services regarding investment and various financial services. The SME
which is selected for the expansion purpose is Ella's Kitchen which is planning to expand in
Australia. The effect of all the global factors on an entrepreneurial organisation will be
examined. In relation to this the report also comprised of opportunities and challenges of global
business, pros of custom duties andnon custom duties and the global trading blocks. Moreover
the trading, importing & exporting, etc. are such major key factors which can be practised to
capture more on international level.
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TASK 1
Introduction to the chosen country and region and explain the global environment in which small
and entrepreneurial businesses operate.
The analysis for the report is performed on the aspects of United Kingdom, as the nation
is well known with fact that a a lot of small and medium enterprises are contributing efficiently
to enhance national economy (Mahajan, 2012). The UK is the most developed and constant
growing part of the Europe continent. The UK is ranked on the 6th position among the world in
respect of its nominal GDP which impacts majorly on the development of nation as well as of its
people. The nation is recognised for the continuous trend evolvement in the sector of education,
business and technologies. With such growth the country provokes a huge number of small
medium enterprises for the expansion and higher growth of their operations. The governing rules
and regulation authorities provide subsidies for SMEs to set up their ventures as well as to
increase their scale of operations. Certain other assistances are provided by the locally governed
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authorities to potential start-ups and other organisations in order to enhance the industrial
capacity and capital earnings of the nation.
These support and assistance of external factor enables those business entities to perform
the optimum utilization of resources for getting maximum output. These measure helps an
organisation to grow and develop on a higher scale to achieve more profitability. Thus when
these SMEs practices and develop their operations in the nation and outside of it, the strength and
economy of respective country gets a huge encouragement.
Detailed global business environment with respect of the country determines that the
political factor of UK is more consistent. By this it can be understand by the manager of
organisation that the political regulations as well as their governing policies will remain stable.
The basic knowledge of British laws helps the organisation to execute the planned actions and
applying selective curse of action with respect of the laws and legislations. These aspects
ultimately makes the business process more efficient to achieve the major portion of market
share. The big and small ventures provide employments to nearly 16.3 million person, which is
equal to about 60% participation of overall employment need of the nation. Small level industries
plays an efficient role to raise the economy of the country as they maintain a proper balance
among financial conditions and social values.
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An analysis of the global business environment and the influence of key global drivers
specifically in relation to the United Kingdom
Global business environment captures the overall transformation in business, which are
erupted by the globalization of trading factors and other technological factors. These
environmental aspects effect the political, social and economic conditions of the respective
nation (Topol, and Sherman, 1994). Major key decisions for cooperative actions can be taken by
analysing the nature and position of all the business factors as per the global environment. Small
business organisations provides optimum contribution in the national revenue as approx 11
million pounds and medium scale business enterprises gets approximately about 50 million
pound of revenue.
The trade and operations of SMEs are enhancing due to the higher acknowledgement and
necessary aids of United Kingdom with the help of globalisation. This leads to a decrement in
custom and other trading restrictions, which is responsible for the smooth flow of production and
marketing. As the market of United kingdom is more dynamic and flexible. The BREXIT
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policies of UK affects business significantly as it limits the base of consumer. The other segment
of SMEs also negotiate while participating in European trade activities after implication of
BREXIT. The key global drivers of business underlies by four sets of organisational
management conditions in every condition the driver create influence and potential for the
respective industry to operate its trading on a global level.
Ella's Kitchen is currently operating business in various countries such as China, Norvey,
Denmark, Sweden etc. The global market is very competitive for the organisation because there
are various other companies that are selling same food items that are offered by it.
The level of competition in the global business environment is increasing continuously. It
is very important for all the companies to deal with it properly so that competitive advantage
could be acquired. There are various factors which are required to be focused by Ella's Kitchen
which is planning to expand business in Australia. All of them should be analysed on
international level. Description of all of them is as follows:
Political Fcators: As situation of politics in Australia is very good and a kind of stability
is there. It is very beneficial for an organization and also opportunities can be gained for
expansion of business. This is helpful for providing growth to Ella’s Kitchen in the market and is
going to give positive response in developing business.
Economic Factors: Various factors are there which comes under economy that is
inflation, unemployment, deflation and exchange. These are required to be focused upon.
Managers of all organizations is planning for operating its business into a different country.
Ella’s kitchen has to plan for expansion of its business in Australia then its manager should
analyse these elements. Moderation in rate can be helpful in capturing market at large
Social Factors Under this all factors that is related to culture, morals, ethics and taste of
people living in society is covered. So, Ella’s Kitchen has to expand itself and for this purpose it
needs to know taste of people which is going to help in establishment at faster rate.
Technological factor: These factors is related to all the technological development
taking place in the world. It is important to be taken care by Ella’s kitchen because it is going to
help in increasing production which is going to help in covering of market.
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Environment Factor: These factors are related to climate, flora and fauna which ahs to
be takencare. Ella’s kitchen has to take this factor in mind because its going to attract eco
friendly customers and sale is going to increase.
Legal Factor: These are those factors which contains various types of laws and rule to
work and prform operations in an organization. Ella’s kitchen has to take this factor at most
priority because it is going to help in keeping operations smooth.
This analysis of global business environment has been analysed and various oppurtinities and
problem can be faced by Ella’s kitchen. These are explained below:
Opportunities: Stable political situation of Australia is an opportunity for the
organisation because it will be beneficial for it to establish the business successfully. Another
opportunity for the SME is lack of political interferences in business process as it will help to
ignore additional expenses on granting permission to operate business.
Impact of opportunities: Both the opportunities will leave positive impact upon
business because it will help the management to grow the business in various countries and
enhance profitability.
Threats: The major threat for the organisation is sudden changes in economic situation
which may leave negative impact upon functionality of business because it results in lower
purchasing power of customers.
Impact of threats: The threat for Ella's kitchen will be negative because it will affect the
growth of business in Australia.
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Rationale for SMEs to expand their business internationally
Certain various measures for SMEs are there Which enforces them to do business in
multiple countries. Major rational behind international business can be termed as many foreign
nations acts as the hub of new innovations and technologies. This renders all the potential SMEs
with a scope to save cost and time and generate the optimum revenue. Major SMEs are able to
establish their distribution, servicing and production plants across developing nations as the
preferred countries can be India, China, Malaysia, Japan etc. This will help the business to obtain
the opportunities of cost cutting in the business with cheap labour and other resources. Certainly
the business authorized centres enhance the more customer interaction with the parent company.
As also it builds a good brand image in the market which helps the company to launch its new
products and trying innovations in their foreign subsidiaries.
By investing into the foreign markets and trading with them enforces small and medium
enterprises to attain comprehensive knowledge and other valuable information of various market
demands and needs. These information plays a vital role in selecting the plan and implementing
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