Strategic Market Entry Report: Woolworths in England and India

This report analyzes the international market entry strategies of Woolworths, an Australian supermarket chain, focusing on potential expansion into England and India. The report begins with an executive summary and an introduction to Woolworths, followed by an identification of the two target countries. It then delves into a detailed examination of the macro-environmental and geopolitical factors influencing each country's business landscape, including economic conditions, social and technical competencies, and political stability. Furthermore, the report assesses the development of trade and business policies in both England and India, considering factors like trade agreements and government regulations. It evaluates the risks and opportunities associated with these policies for Woolworths. The conclusion provides a comparative analysis and a final recommendation for Woolworths, based on the evaluation of the two countries, justifying the choice with a comprehensive overview of the factors. The report concludes with a list of references.

Running head: INTERNATIONAL AND GLOBAL BUSINESS
International and global business
Name of Student
Name of University
Author Note

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Executive summary
The report focuses on the manner in which domestic companies can develop and
expand its market in foreign countries. The focus of the report is on Woolworths, a
high rated super market in Australia. The potential target for expansion of the
company is that in England and India. The report analyses both the countries in
terms of the support that can be provided from the macro environment analysis and
geo-political analysis. An analysis of the trade relations that can be made by England
and India is done so that advantage provided by the countries can be determined. At
the end, a verdict is provided that highlights the reasons for Woolworths to select
one country over the other.

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Table of Contents
Introduction...................................................................................................................3
Identification of the two countries.................................................................................3
Current macro environment factors and geo-political factors......................................4
Development of trade and business policy...................................................................5
Risks and opportunities in the current policies.............................................................6
Conclusion....................................................................................................................6
Recommendation..........................................................................................................7
Bibliography..................................................................................................................9

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Introduction
The report focuses on the importance of international and global business in
the context of the changing world. The challenges and opportunities that are faced
by organisations while trying to gain entry in a foreign land is explained in detail in
the report. Analysis of the macro environment factors along with the geo-political
factor of two such countries are conducted in the report. The focus of the report is on
Woolworths, a supermarket store located in Australia (Woolworths.com.au 2018).
The aim is to identify the factors that may affect that expansion of Woolworths in
countries like England and India. The macro environment and geo-political factors of
the two countries are analysed to provide an idea about forces that work in the
economies. The development of trade and business policies of both the countries
are analysed so that its effectiveness can be judged. At the same time assessment
of the current policies of ENGLAND and India are made so that the risk and
opportunities are identified. Furthermore, recommendation is provided about the
choice of country that Woolworths need to expand its market to.
Woolworths is one of the leading supermarket stores in Australia. Its chief
competitors in the industry include Coles and Wesfarmers. Woolworths was
established in 1924 and have since grown into a reputed domestic company in the
market (Woolworths.com.au 2018). The number of locations in which the company
currently operates is about 1000 places all across Australia. Despite the fact that
Coles is considered as a competitor of the company it forms about 80% of the
Australian supermarket (Woolworths.com.au 2018). The speciality of Woolworths is
mostly to sell groceries such as vegetables, meat and packaged foods. However, the
company also sells other electronic products like DVDs, health and beauty products,
magazines and other stationary items. The expansion into a foreign market can help
Woolworths to gain international stature.
Identification of the two countries
For the report, the two countries that have been selected are England and
India. England is a part of the United Kingdom and is considered as one of the most
developed countries in the world. The economic condition of the country is stable
and it is considered as the second best country that provides shelter to a number of

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immigrants. Hill et al. (2017) stated that over the years, the English economy has
had considerable changes and a fall out with the European Union has resulted in the
country to become independent from being monitored by the Union. Despite this the
country provides an excellent opportunity for business and new companies capable
of increasing the economic condition of the country is always a welcoming factor.
India can be considered as a country that is at its developing stages. The
economy of the country is not considered as one of the top in the world as the
country have more than half its population in the below poverty line. Any disruption in
the economy of the US or ENGLAND may lead the monetary condition of the country
to fall apart and provide problems for the people (Scarborough 2016). At the same
time, entry into the country can be difficult mainly due to political forces that govern
the country. However, one of the advantages that India may provide is the vast area
of land that the country has. India has a total area of 3,287,263 km sq as compared
to England, which has a total area of 130,279 km sq. This can be considered as a
huge advantage for the country and new companies like Woolworth attempting to
establish its business in the country can gain advantage for further expansion.
Current macro environment factors and geo-political factors
The current economy of England is considered as the sixth largest economy
that has seen steady growth of 1.7% since 2017. The forecast of the growth in the
economy for 2018 is about 1.5%. Other macro environment factors such as the
social and technical competence of the country is high as the people are aware of
the latest technology and the society provides support to the new organisations that
try to set up business. For Woolworths, the legal market of the country need to be
taken into consideration as the country has strict laws about the environment of the
country. The monarch controls the geo-political system of the country. Therefore, the
political parties do not interfere about the affairs of an organisation (Piekkari, Welch
and Welch 2014).
On the other hand, the geo-political situation in India can be considered as
unstable mainly because of the regular interference of the political parties in the legal
as well as the affairs of the states. Companies entering India normally need to abide
by the laws made by the political government and the macro environment factors of

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the country are not as stable as that of England. The social and technical factors in
India are underdeveloped. As observed by Peng (2016) most of the people in India
reside in areas that do not provide them with the provision of technology. Therefore,
it can be said that the social backwardness of the country, which consists about
21.9% of the entire population of the country, may provide Woolworths with a
disadvantage of expansion or growth in the country.
Development of trade and business policy
The trade and business policy in England ensures that the current business of
the country is not disrupted. The implementations of the trade agreements between
the countries that are related with England are minimal mainly due to the less
interference from the government. Woolworths can gain an opportunity of £1.3 trillion
per year if it is to establish its business in the country. According to Luthans and Doh
(2018), the agreement with the World Trade Organisation over the Government
Procurement provides England to act as an independent member away from the
monitoring policies of the EU. Therefore, Woolworths can continue its trade ties with
other countries and Australia and increase its profitability. At the same time, the
existence of the unilateral trade preference of England can provide Woolworths with
an opportunity establish trade relations with the poor countries.
In the case of India, the legislation that concerns the trade relation between
the country and foreign lands include the Foreign Trade (Development and
Regulation) Act, 1992. It helps in the development of foreign trade by importing
goods and exporting augmented materials for the improvement of the economy. As
stated by Reiche et al. (2016) the interference of the political parties may provide
hindrance in the trade policies. At the same time, proper monitoring of the trade
system can help Woolworths to understand the trade relations that are being
undertaken and at the same time ensure that a simplified process is followed so that
complication regarding the attainment of trade policies can be mitigated. Therefore, it
can be said that despite the monitoring of the Government trade relations in England
is better than that of India. Hence, Woolworths can gain advantage by considering
trade policies while expanding its market in England.

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Risks and opportunities in the current policies
The analysis provides an idea about the risks and opportunities that exist for
Woolworths owing to the current state of the political and macro environmental
scenario in England and India. The analysis has shown that England can provide
opportunities for Woolworths to maintain its trade relations with other countries. The
possibility of expansion in poor countries can be gained as England trade policies
encourage such relations. At the same time, the social and technological
development of the country may also provide Woolworths with an opportunity to
remain innovative by gaining the support of the social people. However, the lack of
involvement of the Government may cause a disrupt situation in the company. As
stated by Chimni (2017) it is essential that the Government provide legal assistance
to a company so that it can continue its business and ensure that legal policies
related to the country are maintained.
On the other hand, in the case of India, the risk can be attributed to the fact
that excess rules and intervention from the Government may provide Woolworths
with a disadvantage of expansion. According to Derudder and Witlox (2016), it is
necessary that the countries provide freedom for the companies to continue with the
business in a free manner. At the same time, the opportunity that can be gained from
setting up business in India is that with a vast area of land space, Woolworths can
expand its market all around the country. This can provide Woolworths with
opportunities to gain more profit and at the same time ensure that popularity of the
company among the people increases. With a vast population, Woolworths can
increase its talent pool by providing employment opportunities to the people of the
country.
Conclusion
Therefore, after the analysis, it can be concluded that expansion in foreign
country requires research and at the same time the factors that require to be kept in
mind while conducting the business. In the case of England, the advantages that
Woolworths may receive include proper technological support and skilled employees
that are capable of using innovative techniques in the business. At the same time,
the freedom of conducting unmonitored business can help Woolworths to expand its
business in further areas of the world. Therefore, the manner in which Woolworths

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used to conduct business in Australia can be continued in England, as the laws of
business are more or less same for both the countries. Hence, Woolworths can
consider England as a potential expansion country mainly due to the freedom of
trade and business it can commence in the country.
At the same time, in the case of India, the company need to adjust to the laws
and political rules that may provide a hindrance in the free flowing nature of the
company. The fact that India is in a developing stage makes the economy of the
country. However, with a large population, India can provide excess labour for the
company. The setting up of branches all across the country can be made in large
numbers so that Woolworths can gain profit in the market. Hence, Woolworths can
consider India as a potential market expansion opportunity mainly due to the support
from the local people and the ability to earn more money from the country. At the
same time most of the people remain at home that can assist Woolworths in terms of
unit of the product sold.
Recommendation
Therefore, after the analysis of the macro environment factors and geo-
political factors it can be said that England is in the lead ahead of India for
Woolworths to expand its market. This is mainly because of the leniency of the
Government and the manner in which the people are technically aware of the
different innovation tools that Woolworths may use for manufacturing its products. At
the same time, the analysis of the trade opportunities also support England as the
open relation to trade between countries can provide Woolworths to establish
relationship with other poorer countries in the world. The opportunities that exist in
England are more than the risk factors as England can provide Woolworths with an
opportunity to conduct business based on laws that are familiar to the company.
At the same time, despite the large population and wide area of land, India
does not provide any advantage to Woolworths. The people are mostly backward
and the technological competence of the country does not encourage any innovation
to take place. The interference from the Government and the political parties
provides India with a disadvantage for the world. Hence, it can be said that for
expanding its business in a foreign market, Woolworths can consider England as it

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can provide the company with an opportunity to develop in the market and at the
same time attempt to find other countries in which expansion can take place. The
support from the legal laws, society and the technical competence of the people in
England can provide Woolworths with an opportunity to grow in the market.

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