International Entrepreneurship: Wenzel's Market Entry Strategy Report

This report examines the international entrepreneurship strategy of Wenzel's, a bakery chain, focusing on its expansion plans. The report begins with an introduction to international entrepreneurship and the selection of relevant models like Hofstede's cultural dimensions to understand market dynamics. It analyzes Wenzel's market entry strategy, specifically its use of joint ventures, and identifies Germany and China as target markets. The report delves into the products and services offered by Wenzel's, along with an analysis of its competitors. It provides a critical evaluation of the data, including demographic and geographic segmentation, and justifies the chosen market entry strategy. The report also covers marketing mix considerations and concludes with a reflection on the lessons learned. The report is structured into two parts, covering the application of models and a critical evaluation of the chosen strategy.

International
Entrepreneurship

Table of Contents
CW1.................................................................................................................................................4
Selecting and applying variety of models, frameworks and theories.....................................4
Hofstede’s five dimensions:...................................................................................................5
Market entry approaches :......................................................................................................6
International market entry strategy for Wenzel’s...................................................................6
Two different target markets..................................................................................................6
Research products and services..............................................................................................7
Competitors of Wenzel’s :......................................................................................................7
Critical analysis and evaluation of the data............................................................................8
Two target markets.................................................................................................................8
Market entry strategy which was used and applied by business organisation.......................8
Marketing mix and implementation and product/service changes.........................................9
Reasoning & justify all decisions.........................................................................................10
CW2...............................................................................................................................................11
Critical evaluation of Hofstede Cultural Model...................................................................11
Things which has been learnt while doing the module........................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

CW1
INTRODUCTION
International Entrepreneurship can be defined as an approach which basically relies upon
internationalisation of business organisations which influences both entrepreneur along with the
networks which has been developed by the entrepreneur regarding international market. Along
with this it can be said that Global entrepreneurship consist with different factors like enactment,
exploitation of different range of opportunities that are present at international which basically
helps in selling products and services (Albort-Morant and Ribeiro-Soriano, 2016). For present
report, organisation which has been chosen that is Wenzel’s which is looking forward to expand
its business across the boundaries. It was formed in the year of 1975 and and has since become a
favourite brand of locals in the north west London area. Along with this, assignment is going to
be divided among two different reports which will cover application and selection of different
models that will contribute in selecting an international market strategy for the organisation.
Away with this, report will also include critical evaluation at it’s end as it will result positively
for a company which might help in gaining competitive advantages.
Selecting and applying variety of models, frameworks and theories
It has been analysed that there are ample number of models frameworks and theories are
present in today’s business market which can be used by an organisation when it comes to
develop a market entry strategy through which business expansion can be done with an ease.
Along with this, globalisation has also impacted up on overall way of thinking of people that are
performing their businesses at National level and it promoted them to work at international
level rather than earning a small amount of money at regional or state level . this has also
changed or affected the social structure as well because living standards and consumption
patterns alone people has totally got changed (Burns, 2016). The first and the vital most theory
which could be used by a company like Wenzel’s i.e. Hofstede frameworks. This is selected
because it consists with five different dimensions which can help in understanding or gaining
deeper knowledge related to both national and international culture and these dimensions are
given below:

Hofstede’s five dimensions: Power orientation : In this dimension, inequality and power is perceived from the
followers, or the lower strata. A higher degree of the Index indicates that hierarchy is
clearly established and executed in society, without doubt or reason. If this is linked to
the scenario of Wenzel’s which is expanding its business at international level
considering a whole new market strategy, it can easily be said that customers already
has a clear mind regarding the products and services which has been given by Wenzel’s
in its home country which means there is a high degree of index which shows the overall
hierarchy of the business (Cumming and Zahra, 2016). Individualism vs collectivism : Since, Wenzel’s was performing at National level with
individualism based approach because there were less competition at market but as the
organisation is expanding its business it will be required to offer customers with different
range of products and value added services which could be done through collectivism
approach. Uncertainty avoidance : in order to remove the uncertainty at a whole new market,
Wenzel’s is going to use joint venture as a market entry strategy and this will directly
help them in avoiding the uncertainty which are present at market place for whole new
business. Masculinity vs. femininity : In this dimension, masculinity is defined as “a preference in
society for achievement, heroism, assertiveness and material rewards for success.” Its
counterpart represents “a preference for cooperation, modesty, caring for the weak and
quality of life.” Women in the respective societies tend to display different values. In
feminine societies, they share modest and caring views equally with men. If it is talked
about Wenzel’s, organisation will give opportunities the both men and women to bring in
quality at work station and this can also be considered as the tactic to gain competitive
advantages at a whole new place in short period of time (Dimitratos and et. al., 2016). Long-term orientation vs. short-term orientation : This dimension associates the
connection of the past with the current and future actions/challenges. If it is talked about
Wenzel’s, organisation cannot think about small challenges and objectives as company
has already decided to focus on long term orientation.

Market entry approaches : Direct Exporting : this is been considered as a market entry approach which can be used
by Wenzel’s at the time of expansion where organisation will not take support of any
kind of support from other people. Franchising : This is one of very common market entry strategy which is basically used
by organisations at international level but here it is may be possible that, Wenzel’s main
profit ratios basically gets affected because a certain amount needs to be paid by the
individual who has taken the franchise of this company (Ferreira and et. al., 2016). Joint venture : particularly a form of partnership where two business organizations
basically agrees on an agreement. In today’s market Trend this kind of policy is
continuously helping business organizations in reaching to an all new level. In the same
way, Wenzel's has started with the same and it is going to do joint venture with business
organisations that are already working in countries where expansion is going to be done.
 Acquisition of an Overseas Company : For some companies operating who want to enter
a market the purchase of an existing business may be the most appropriate strategy. This
may be because the company has large market share, may be a direct competitor or due to
government regulation this is the only option for the company to enter the market. In
regards to the same, Wenzel’s can also adopt the same through agreeing on set rules and
regulations regarding the same.
International market entry strategy for Wenzel’s
Wenzel’s has used joint venture as its market entry strategy because it is going in trend
at the moment and it also shows clear agreements made by both of the organisations. This helps
in in improving the market share in specific time frame where the organisation with company has
done its target customers might expand (Hossain, Saleh and Drennan, 2017).
Two different target markets
There are two segments on which Wenzel’s is going to rely upon and these are,
demographic and geographic segmentation. If it is talked about demographic then and the target
market will be Germany which is a part of European Union and which has less impact of Brexit
at the moment (Muralidharan and Pathak, 2017). On the other hand, the target market will be
China where people are going to get targeted true Geographic segmentation due to the region in

which they are living. Along with this, whole market is being divided and sub-divided on area
basis and geographic basis.
Research products and services
Wenzel’s is performing business at Food Industry which could be considered as one of a
rapid changing sector. Here, company is offering different products like Donut cake, fresh fruit
gateau, kids lunches and so on.
There features are given below:
 Unique in taste which mainly benefits Wenzel’s to sustain in London and helped them in
becoming a well known brand in London.
 Fresh and handmade breads/cream and this benefits them to offer customer with good
quality of food. Resolves queries of customers which Aid them in building long term relationships with
consumers.
Competitors of Wenzel’s :
One of the most crucial competitor of Wenzel’s i.e. Yummy slice which specifically
offers customers with same products and with quality which is being offered by Wenzel’s
(Nambisan, 2017). On the other hand as business organisation is looking forward to expand its
business at international level like Germany and China, it might carry a range of bakeries that are
already performing good enough.
Appropriate markets
Since Wenzel’s is expanding business in Germany and China, and if these are subdivided
then there are two cities of each country on which this organisation has kept its focus on for the
Business expansion as target market and these cities are shanghai and Beijing (china). On the
other hand, Munich and Frankfurt (Germany).
Sizes: Focusing on all the areas, Munich has 1.4 million people, approximately 9.3
million people are living in Frankfurt. On the other side, Beijing has a population of 21.7 million
and along with this, Shanghai has 24.15 million in 2016. Jaipur it can be said that Wenzel’s is
going to Target a big market among the countries which will help them in reaching to another
level of success. On the other hand if it is talked about growth then it can easily be said that
business is going to expand smoothly and the organisation is going to sustain for a longer period
of time in these areas because of the quality that they are offering and company is also going to

joint venture with other bakeries in these cities which it has done in grabbing a good market in
specified time frame.
Financial and cultural status of the cities: All of the four cities which has been
discussed above consist with rich culture and they are also financially strong which means
Business expansion in these areas will help Wenzel’s in becoming a well known brand in food
industry in a short period of time but, it will be required for this organisation to keep on
promoting its products and services rapidly which means company would require to be
financially strong.
Critical analysis and evaluation of the data
If it is critically analyse then it can be said that Wenzel’s is going to expand its business
will be much more successful then its expectation because all of the cities has a good potential
to expand its business in all over the world. On the other hand, it can also be said that company
needs proper details of every single risks that are present in the business environment. Along
with this it can be said that company would also require to make alterations in its products as
well depending on the taste of targeted people in all over the world.
Two target markets
All of the cities, that are coming in Germany and China to whom Wenzel’s is going to
target with two different segments and these are Geographic and demographic. Chinese cities
are going to be targeted depending upon the Geographic segmentation because these two cities
basically consumes more food than other areas of China and this is why Shanghai and Beijing
are targeted along with this they also has a plus side which is population (Poggesi, Mari and De
Vita, 2016). Along with this, if it is talked about Germany’s cities then it can be said that people
of there has been targeted based on the demographic because people with the age in between 15
to 65 like to consume this kind products which Wenzel’s is offering.
Market entry strategy which was used and applied by business organisation
Joint venture is the market strategy which Wenzel’s is going to use with the help of this,
company will directly expand its business at international level (Germany and China). Along
with this, it was applied through partnering with Zeit für Brot. Bakery, for business expansion in
Germany. On the other hand, in China as well, Farine is the famous bakery in Shanghai with
which Wenzel’s is going to Joint Ventured with. This will benefit Wenzel’s in expanding

business at international level. Through this, it can also be said that market share will directly
improvise of Wenzel’s as both of the bakeries in China and Germany are famous for products
and services that are being offered by them (Read and et. al., 2016).
Along with this, market entry strategy which was used by Wenzel’s, it can be said that
organisation will gain a good reputation within both of the market in specific time frame. On the
other hand, joint venture is going to be applied through a written agreement (a contract) between
all the parties. These agreements will directly show all the roles and responsibilities along with
laws and legislations which helps in developing an agreement in specified time.
Marketing mix and implementation and product/service changes Product : Donut cake, kids lunches, fresh fruit gateau, and more are said to be the
products that Wenzel’s is going to offer to new areas (Frankfurt and Munich city) of
Germany and on the other hand, Same are going to be delivered in Chinese cities as well
(Shanghai and Beijing), (Schmitz and et. al., 2017). On the other hand, since Wenzel’s is
expanding business in China, there culture is totally different from United Kingdom, thus
it can be said that, Wenzel’s would require to make modifications among products which
they are offering (Kids lunches, Donut cakes, fresh fruit gateau and more). Price : Wenzel’s is basically famous in London, where they have followed pricing
strategy at a Premium. Since Wenzel’s is going to expand its business in different
countries like China and Germany at the same time, it is may be possible that people in
countries in which it is expanding might not like the products, so for initial level
Wenzel’s is going to use economy pricing strategy and this change will help this
organisation in reaching to an all new level. Promotion : Social Media is the basic tool which can be used by Wenzel’s at the time of
marketing products and services that are being offered by business organisation.
Wenzel’s which is working in food industry, it can easily be said that Facebook,
Instagram and more are some of social media tools which Wenzel’s is going to use in
order to expand business at Germany and in China at the same time (Schwens and et. al.,
2018). Previously when Wenzel’s was doing business in London, it can be said that
company was offering customers with different range of products and services and they
used to promote them considering a range of media like podcast and television. The same
will cost much to Wenzel’s if they will use these promotional techniques at international

level and that is why, organisation has chosen social media as it is cheaper in nature and
it might help them in targeting more customers than their expectations as social media is
one of leading communicational media which is helping business organisations like
Wenzel’s to target a larger area or people in numbers.
 Place : Both the countries, Germany and China has strong potential at international
market and this is why Wenzel’s has chosen these nations to expand its business and with
the help of fruitful strategy i.e. Joint Venture, Wenzel’s will grab a good position in short
span (Terjesen, Hessels and Li, 2016).
Reasoning & justify all decisions
The main significance behind opting Joint Venture technique is that, this is the first time
Wenzel’s will operate its business at international level and there is no brand image this
organisation has in cities of both Germany and China in which they are expanding. Basically,
Joint venturing with business organisations at a whole new market could help in making right
decisions, and it also improvises the decision making as well because, the existing companies
with whom Wenzel’s. This is because, they are already having knowledge related to market
conditions. Along with this, the model which has been chosen i.e. Hofstede's five dimensions
frameworks which helped in understanding the changes which are needed to be made within the
business organisation so that expansion can be done in much effective and efficient manner
through reducing risks (Urbano and Aparicio, 2016).

CW2
Critical evaluation of Hofstede Cultural Model
Hofstede model is completely based on various cultural dimensions which elaborates
different aspects of culture. It also deeply explores different culture belongs to national and
international level. This model includes 6 dimensions on the basis of culture of nation which can
be examined effectively. It all few dimensions are Power Orientation, Individualism vs
collectivism, Uncertainty avoidance, Masculinity vs. femininity and Long-term orientation vs.
short-term orientation (Zucchella and Magnani, 2016).
In this project, Hofstede cultural model have been used in order to evaluate cultural effect
at the time of international expansion. It has been evaluated that this model has both the positive
as well as negative side which influences working pattern of a company that impacts its
sustainability and profitability. The positive side of Hofstede model for Wenzel's says that this
model have provided opportunity to the management team of this company as they were able to
evaluate actual culture environment of countries in which they are expanding their business. It
can be said that at the time of global expansion, it is essential for company that to understand
culture of different nations in which they are planning to expand. In context to Wenzel's, it can
be said that this model also help management team of this company in understanding
international culture in effective manner so that they would not face any issue related to culture
during their global expansion. It also helps company in understanding differences in behaviour
and attitude of people so that they can finalise better advertisement strategy. This strategy will
help company in gaining competitive advantage at international market place. All of these
mentioned reason state positive influence of Hofstede model on companies performing their
business activities at international scale.
On the other hand, it has been further analysed that there are numerous of criticism of
which were arose for this model from point of view of different authors. According to the
thoughts of Zhang and et. al., (2016), it has been analysed that if management team of business
organisation fails to right methodology or tool of Hofstede method then it might result negatively
for company. In addition to this, another disadvantage of this model is that it only focuses on a
single company which ultimately ignores other people who are included in housewife or
entrepreneur. It can be said that if Hofstede model is not considering entrepreneur then some

proportion of nation development ultimately gets ignored. On the basis of further evaluation, it
has been analysed that another issue of this model is that it emphasis on single industry. In
relation to this, it has been seen that if an organisation focuses on this single industry then they
might loose their command on people available in different industries. With reference to
Wenzel's, it can be said that deficiency of this model might affect growth of Wnezel's as they are
expanding their business in two different countries that is Germany and China. Further, the
management team of company have also planned to enter into two separate countries in each
country. Along with this, it can be further said that of business organisation only considered
single but common culture of whole country but at the same time it does not consider different
subcultures that are present within the same country.
In addition to this, criticism of Hofstede cultural model also includes many other sub
points. In this, it is further seen that this model does not pay any kind of attention over
community. As per elaboration of Hofstede model it can be said that it is only considering whole
society or nation as homogeneous society. But, at the same time it can be said that there are still
many countries which have their own ethnic groups and their separate units. Whereas another
author named as McSweeny have said that Hofstede model only evaluates through nations which
is completely wrong. The same author have further said that bounding culture of people on the
basis of border is not right. Along with this, it is further seen that out of total of six around four
dimension are out of date that does not allow Wenzels to collect sufficient information that
would restrict them in understanding international market in effectively. As a result, it will
definitely affect their business expansion in negative manner.
Things which has been learnt while doing the module
Considering the above information, it can easily be said there were many cases came in
front where the project maker get into trouble which aroused problems in proceeding further
while conducting the report. All of the information was taken from secondary data and this is
also can be considered as one of the major issue which was faced by project maker because,
there were many stages came in front where sources from secondary data were not relevant
enough in nature.
Along with this, project maker also faced many problems related to presenting the data,
structuring it and its application of the Hofstede's model considering both globalisation and
culture at the same time. Away with this, Wenzel’s is famous in all over London but on the