Tapping into New and International Markets: A Business Report

This report examines the strategies and challenges for businesses, specifically focusing on small and medium-sized enterprises (SMEs) like Colortronic Limited, to expand into international markets. It analyzes the global business environment, including opportunities and threats, and the advantages of trading blocs. The report delves into the importing and exporting processes, outlining the advantages and disadvantages of each, as well as the differences between merchandise and service trade. Furthermore, it explores various methods for SMEs to successfully tap into international markets, including ways to maintain partnerships. The report highlights the importance of understanding tariff and non-tariff barriers, political support, and the significance of data security and technological advancements in a globalized context. Overall, the report provides a comprehensive overview of the considerations and strategies necessary for SMEs to thrive in the international market.

TAPPING INTO NEW AND
INTERNATIONAL MARKETS

Table of Contents
TAPPING INTO NEW AND INTERNATIONAL MARKETS.....................................................1
INTRODUCTION...........................................................................................................................3
LO1: THE OPPORTUNITIES AND THREATS FOR FIRMS EXPOSED TOAN
INCREASINGLY GLOBALISED ENVIRONMENT...................................................................3
P1: Global business environment in which small and entrepreneurial businesses......................3
P2: Threats and opportunities faced by SME in the global environment....................................4
LO2: THE ADVANTAGES OF TRADING BLOCS FOR FIRMS...............................................5
P3: The advantages of international trading blocs and agreements............................................5
P4: Tariff and non-tariff barriers.................................................................................................5
LO3: IMPORTING AND EXPORTING PROCESS......................................................................7
P5: Advantages and disadvantages of importing and exporting..................................................7
P6: Differences between Merchandise and Service imports and exports....................................9
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:......................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
Businesses main aim is to extend globally upon enriching their sources of growth. every industry
is meant for the best out of the that will bring about the onset of dealing with new market and
newness everywhere. The market consideration is regarded as the major facet of the growth since
the amount that can be achieved here will be less when compared to the ones that are profitable
abroad (Tallman and et.al, 2018). The entire report deals with the prospects of tapping into
international markets that can be a subtle means to any small-scale business to achieve upon the
normalities that are associated with the crew of the foreign market. The SME company that is
adopted in this regard is the Colortronic Limited company in UK which is an active company
incorporated on 22 February 1974 with the registered office located in Chesterfield, Derbyshire.
Colortronic (U.K.) Limited has been running for 46 years.
LO1: THE OPPORTUNITIES AND THREATS ASSOCIATED WITH
FIRMS UPON EXTENDING GLOBALLY
P1: Global business environment in which small and entrepreneurial businesses
Dealing with factors is a never-ending phenomena that will lead to facing the barriers that will
obstruct the growth of the company in the ways they will go. The global expansion of a business
is regarded as one of the finest issues that is faced by the companies that are planning to expand
globally (Gregory and et.al, 2019). There are internal as well as external factors that seem to
appear with regards to the company. one business may be ensure the growth prospect over a long
run if the internal factors are not compensated properly. These internal and external factors will
decide the global expansion of the company. When the country into which the present business is
planning to expand will possess norms, then the business Colortron will have to focus upon
meeting them with all the means.
Barriers:
There seem to be different barriers that are associated upon extending globally. The barriers are
the ones that are regarded to be the challenges which will turn to be the certainties in the growth
prospects. The responsibility of the small business in the country where it is planning to expand
will be the one that will let the company to make no idea to diminish. Sustainability upon
expanding globally is regarded to be one of the assets of the company which will be adhered

gradually. The company Colortronic Limited will face atrocities that are attained by the
prospects of the targets that are to be met on an instance.
Diversity:
The businesses will have to develop all the essential qualities that are a requirement for the
company before expanding globally. One may not probably endure the same scenario in the
country where the company is planning to expand. Diversified knowledge is a must to be
incorporated in the country else there will not be a growth trajectory that is to be attained (Yang
and Gabrielsson, 2017). The company Colortronic is said to be a small business and it is a must
and should to stick and hold to a government that will help it to expand in the ways the company
is planning to expand.
P2: Threats and opportunities faced by SME in the global environment
Threats that are related with SMEs:
Security of data:
Data is considered to be the finest aspect of the company which contains every small information
regarding the company. The data that is related to the company will have to be safeguarded
which when fails will lead to greatest losses. Security issues are the predominant factors so far
and that with respect to the small-scale companies will turn even worse. The company
Colortronic will have to safeguard the data by not allowing it to misinterpret by many upon
expanding globally. While working for the small scale companies the major threat is with
regards to the data.
Technical advancements:
Technology is at the greatest perks in the ongoing circumstances. Every company will have to
focus on the technological aspects that will make them one of the best out of the lot. Technology
will not only have to be developed yet there are different aspects in safeguarding them. The
company will have to plan the website with all the details that are to be maintained. The
Colortronic Limited is following the same where they are more towards focusing on
safeguarding the website.
Barriers in business:
Insurance is one of the major boon with regards to the company. The issues that are monitored in
the ways are to be enhanced and adopted by the company upon successful threat free
atmosphere. Colortronic limited insurance policy is dedicated to a period of 12

months that will help the company maintain the risk protection.
Opportunities faced by SME are as follows:
Political support:
Lack of political support is the first issue that is faced by all SMEs. The most astonishing aspect
is achieving the political support. The company Colortronic Limited is said to be facing the
macroeconomic issues that are said to be one of the prospects that will increase the scope of
political intervention.
LO2: THE ADVANTAGES OF TRADING BLOCS FOR FIRMS
The trading blocks will lift the country’s economy in almost all the ways. The scenario where
different companies operate upon utilising the benefits where the company that is in least
position can be benefitted from the discussions that are adhered by the companies that are a mere
useful ones. The modern trading blocks are said to be a boon to all kinds.
Benefits of trading blocks are as follows:
P3: The advantages of international trading blocs and agreements.
Trade barrier collapse:
This will define the existence of the company where the different company in the block will fall
upon each other. To make a product better one and to maintain efficiency, the drop of trade
barrier will enhance.
Consumer benefit:
The foreign products are said to be composed of different rates and now in this particular trading
blocks they will be a price drop which can be beneficial to the customers.
Competition among firms:
When the companies are falling upon each other with respect to competition, obviously there
will be a price drop that can be a beneficial aspect.
Strength validation:
The strength of every country differ therefore in the trading blocks when one is weaker, it can
easily get benefitted by the stronger one in the lot.

P4: Tariff and non-tariff barriers
There are different obstructions that are imposed upon the goods that are exported. These
barriers that are existing are said to be tariffs. The tariff and non-tariff barriers that exist with
regards to the company Colortron Limited are as follows:
Tariff barriers:
Specified work:
The duty will be defined by the characteristics that are added physically. The commodity is the
major concern in this prospect and that can be prosperously achieved and this is also a simple
phenomena that can be adhered by the company.
Ad valorem duty:
The value that defines a particular product that is to be imported will be defined by the weight
(Habanabakize, 2019). Though the product is composed of huge amount the what determines it is
the value. Irrespective of commodity this particular tariff is applied to value.
Combination tariff:
The combination of specific duty and the ad valorem duty is said to be combined duty. The
materials that are imported and exported are said to be measured through quantity, weight and
size.
Revenue tariff:
The money that is paid to the government upon imposition of tax which is considered to be
revenue tariff. This tax is usually paid to the company’s existing government.
Protective tariff:
The protection that is offered to the goods upon the imposition of the price will be therefore
protected and will not get impacted. The import prices will not effect the company upon
protection tariff.
Non-tariff barriers:
Non-tariff barriers are considered to be free of cost and the naturality will not be disturbed. The
non-tariff barriers are as follows:
Quota system:
Every country to which the company is expanding will pass certain instructions in terms of
quality and quantity. This is to make sure that the goods will not get rejected at the process.
Product standards:

Rules are being adhered by the companies in order to cope up with importing and exporting.
Based on the rules there exists barriers and outcomes that are stipulated to different countries.
standards are to be maintained properly to minimise the global atrocities.
Label:
Labelling has got a greater demand in the foreign countries. This is to make sure that it contains
proper specifications.
Packed materials:
Packaging goods is an essential aspect that is incorporated in importing and exporting. Packaging
will be different with respect to different organisations while exporting. This is a consideration
that is usually tackled with care.
Trading within state:
The direct importing and exporting is not seen in all the states. People tend to adopt to measures
that are derived by others at instants. This will come under state trading rather than being called
as direct trading.
LO3: IMPORTING AND EXPORTING PROCESS
Companies that are trying to compete with each other will therefore consider the competencies
that are derived which are in a process of expanding globally. Importing and exporting are
considered to be the probabilities that every company stress upon that will add competitive
advantage and disadvantages either. Norms and policies are the major considerations of the
companies and that will eb fulfilled in the process of expansion. The tariff and non-tariff barriers
that are applied within the particular company. The advantages and disadvantages that are
regarded to the company Colortron Limited with regards to importing and exporting are:
P5: Advantages and disadvantages of importing and exporting
Advantages of exporting:
Ownership:
The company that is exporting can take up the advantages that are meritoriously obtained
through exporting. The company can gain the ownership where it can trade a particular firm. The
owner will be the decision taker of the entire firm and therefore they can attain the mark of being
the best.
Selling or outsourcing:

The risk of tariffs is said to be one of the most outstanding phenomena of the companies. The
proper supply of goods will determine the outsourcing aspects that are a mere importance. Risk
of tariffs are said to be understood which will in return withstand the core competencies.
Investment:
Greater investments are when the goods are invested properly. Exporting process will be
probably carried with aspects that are related to investments. Therefore, the investments will
have to be tackled in the proper manner.
Disadvantages of exporting:
Difficult:
Exporting goods is not a small thing to consider. Various atrocities are linked with the process of
exporting goods. A good export will only be carried when there are profitable circumstances that
can be maintained. Therefore, difficulties are to be endured thoroughly in order to cope up with
deals.
Language:
While considering the global expansion of the company the major priority will have to be given
to the language. There are differences that arise due to languages. Proper orientation of language
will therefore have to be maintained in order to cope up with the atrocities.
Financial management:
Every company will consider the greatest aspects of all kinds. Charges of all kinds will
determine the management that is necessary to cope up with. The financial aspects are said to be
the important aspects which will have to tackle in the way that is required. There are different
finances that are associated with trading and shipping etc.
Advantages of importing:
Profit margins:
There will be a condition for profitable margins. The importing and exchanging of goods will
probably increase the profit margins.
Comparative advantage:
Every firm that will associate with the importing and exporting process will let the company to
fall under low-cost margins. The tie ups will facilitate the margins that are profitable and are said
to be maintained.
Government:

The government’s role in regards to the manufacturing unit is said to be a useful aspect of the
company by the government intervention. The government will help the company in the import
and export process with the minimum wages.
Disadvantages of importing:
Conflicts:
Importing process is such a move that will include in almost all the social norms. The domestic
norms are to be treated with care. Although the company is maintain and producing the goods if
the mark of profitability is not achieved, then it is regarded to be useless.
Erosion of domestic markets:
Erosion of markets is referred to the defaming of the company in the outputs that are generating.
Manufacturers are not able to maintain the pace of continuing the concerns of importing since
the atmosphere is not up to the mark. This in turn is turning out to eb a greatest disadvantage of
all times.
Ways to secure a deal:
Dealing with clients is said to be one of the important aspect that will have to be dealt in the
manner they are to be. Few of the ways to secure a deal are as follows:
Establish baseline credibility:
The trade that every company does is said to be a total misconception now a days. The different
firms are said to be committing the aspect of not maintaining the businesses in a most improvised
manner. This is said to be the biggest mistake that every firm is naturally committing. The
companies will have to develop from within rather than only putting their focus on client. the
baseline credibility will therefore be maintained.
Get to know what client needs:
It is not until when the company focuses upon the prospects of client and their needs that the
company will focus on meeting them. Upon extending internationally the company will have to
meet the client ideology that is a major requirement.
P6: Differences between Merchandise and Service imports and exports
IMPORTS AND EXPORTS MERCHANDISE SERVICE
PRODUCTS The merchandise imports and The service imports and

exports are tangible. exports provide non-product
international earnings.
COUNTRY Merchandise imports and
exports are goods bought into
country.
The individual payment will
analyse the product that is to
be bought into the country.
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:
Partnership:
The line of development is said to be one of the important aspects of the SMEs. The ecommerce
platforms are said to be one of the most probable aspects of the crew. The small-scale industries
when tied up with local partners will help the company to withstand the prospect of competition.
The challenges that are in regards to the company are said to increase the base of the company.
there will be a mutual development in the global market with respect to the SMEs. SME
ideologies very minimum that the company will not reach the success in the stipulated time if the
SME is not tied up with any local firm.
Joint ventures:
For weaker SMEs the join venture concept will help to fetch the desired output in order to make
sure that the company can mix with other companies in order to become and develop strong
relation and base to face the challenges. Tie up with other companies can eventually make the
company stronger.
Franchising:
In order to stand independently, the company will have to move in terms of franchising which is
one of the best suitable methods that will help the company withstand the competition. The

company Colortron was able to find franchising as one of the best and probable means of
orientation while moving abroad.
P8: Ways to maintain partnership with business:
Build a real relationship:
Partnership is considered to be one of the favourable aspects of the crew. Finding liable partners
are said to be one of the foremost aspect of consideration that is to be stressed upon. Finding the
best local partners is important to maximise the trade to an extremely different level.
Establish a plan early on:
A plan is the most important part of moving ahead in the most desirous way. A proper plan will
have to be maintained and that will develop potential in the assistance of maintain the project in
another country. a vision is a mandatory aspect that will safeguard the plan therefore while
expanding globally, the company will have to move ahead with a proper vison.
Communicate regularly:
While working upon issues and the atrocities, there seems to be a lack of communication which
will effect the cause and the nature of existence. The company will have to be in a regular
communication in order to deal with maximisation of project.
CONCLUSION
The report concludes bringing to the notice about the various components that are associated in
working upon moving the business into international market. The different opportunities and
threats that are associated with the global business environment are discussed which will help to
analyse the factors that ae usually associated with the SMEs. The opportunities and threats will
bring to the reader’s notice the facts that are associated with the tariff and non-tariff barriers. The

imports and exports that are related with merchandise and the services are properly put forth
along with the differences that will make to understand each sector in a more deep way. The
reports also concludes upon the different ways an SME can enter into international market and
get the ways that are beneficial for staying competitive. The partnership programs will help to
understand aspects related to the maintaining of prospects of partnership with the other
companies. The company that was employed in the report is Colortron. The report concludes
Every business plan relies upon how freely the partners share and discuss thoughts that are meant
to be liable. It is associated with different measures that are to be adopted in the course of getting
into the lane.