International Business Strategies for Global Market Expansion Assignment Sample

International/Global Business Aspects in a Globalized Economy Assignment

As an International Business Consultant by a XYZ corporation with head office in UK that would like to expand its business internationally but do not have the international business proficiency. The report involves analyzing the functions and culture of the business within a globalised market, focus on how industry functions and culture contribute to business strategies in an international circumstance and how they can enter international markets and be flourishing in these markets. The report is also highlighting the role of World Trade Organization (WTO) and de-regulation across international markets, put in context the impact of globalization on business. The poster and comprehensive script should focus on the intellectual property rights in globalised economy.

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Introduction of the firm & its current market

The XYZ Company was founded in 1869; it is a U.K. grocery chain with a 5% market share. The firm has diversified away from core foodstuffs by selling telecom equipment, clothing, and other non-food items. The brand is built upon local and inheritance of providing consumers with safe, healthy, fresh, and tasty food. Superiority and fair prices go hand-in-hand with an accountable approach to the company. The XYZ Company stores have a particular importance on striving to innovate continuously and fresh food and get better products in line with consumer needs. A global promotion strategy requires a company to do new market research, recognize countries where the firm’s product might be successful, and then confine the brand to imitate the wants of those communities (Akpan, et. al. 2021).

Porter’s five forces analysis on XYZ Company:

Competitive rivalry: the retail market is tremendously competitive as many firms are trying to get into this sector for competing.

Barriers to entry: these are extremely high as it is the majority of complicated sectors and needs a lot of investment. The company also needs to do major brand development.

Threats of Substitutes: it is low for the reason that it is a customer’s requirement mostly in the developed globe and emerging markets.

Buyer power: it is high as many participants are available in the market. It depends on the difference in value and customer loyalty and green qualifications (Sharma, et. al. 2020).

Supplier power: it is very high in the retail market. If the foodstuffs of big companies do not arrive at supermarkets, their sales volume and productivity can get damaged.

Defending intellectual property rights in a globalized economy

This ethical view of intellectual property rights exists separately from any opinion about the encouragement of property or financial costs and benefits of regulation. The financial proceeds on them depend on the expenses of their formation, their attractiveness to prospective users, the construction of market in which they are selling and the lawful rights that authorize their owners to control their use. The legal strategies that supply such are called intellectual property rights (Abbott, et. al. 2019). The new international IPR organization comes with both settlement and costs. Powerful IPRs safety should boost incentives for modernism and elevate returns to global technology transfer.

The following are vital steps to consider for the company before entering into new markets:

Obtain registration: Even though the concern involves new markets out of the country, having an official registration for trademarks and copyrights might assist enforcement efforts and make it easier to start rights abroad. The price of registration is insignificant compared to the savings and worth provided by these registrations.

Conduct an exploration to confirm the firm’s brand and name are obtainable for use in the new state: many countries necessitate registration of trademark rights and do not identify rights that occur from use, as done in the United Kingdom, United States, Australia, and Canada. For countries, investigative reports can be obtained online while others may necessitate appraisal of local trademark office records.

Seek local brand registration for all brands: possessing a local registration will assist with the enforcement of rights, avoid others securing conflicting rights, and is essential in many countries to protect local rights (Durand and Milberg, 2020). Owning a copyright registration can also be helpful to evade resorting to the judges. An order letter supported by a government issue index gets more admiration.

Consider extending trademark registrations to overseas countries: Extending registrations can save money and time to secure rights abroad. The countries including the significant markets of Japan Europe, and Australia are party to the Madrid Protocol, an agreement that allows the owners of a restricted trademark submission or registration to expand those rights to associate countries.

The international copyright notice on blueprints, catalogs, websites, software, and other publications and resources: many countries, nevertheless, are parties to the Berne gathering, an agreement that protects works in the overseas country to the similar extent they are confined at home (Sherwood, 2019). While copyright notice is not necessary for defense in the US, it may be necessary as a situation of protection in overseas courts, so using copyright discern is a superior practice to help discourage illegal copying.

Acquire non-disclosure agreements (NDAs) from local commerce partners: NDAs are complex to put into effect in local courts, but it is not possible to put into effect one that does not exist. Having a sign conformity may have some preventive effect.

Avoid putting all eggs in one basket: Relying on the restricted manufacturer or other local trade partners can put trade secrets in danger. Even in a country with effectual judicial systems, lawful action is still expensive and time-consuming. The best practice is to separate production amongst several foreign manufacturers so that no solitary unit has all of a firm’s secrets. The final meeting remains under its sole control.

Maintain effective local guidance: Using a local legal representative with information about the local court system is vital for getting things compulsory in an overseas jurisdiction. A letter from a country may be ignored, but an executive letter from a well-respected local legal representative firm is likely to get concentration and respect. The company with a claim waited for months to get legislative action until it connected the customer with local guidance that appear in person at the government office to pull the appeal from a pile of folders for the official immediate concentration.

Strengthen legal efforts in the hands of trusted counsel: conflicting actions taken from nation to country can be destructive to long-term interests. Firms growing overseas need corresponding efforts to protect intellectual property rights overseas (Tien, 2019). This is best accomplished by using IP advice who knows interests, business, and legal needs. Look for counsel with a worldwide view and a global network of contacts.

These steps may not make the sure accomplishment of new market expansion efforts, but they are expected to radically advance XYZ Company’s ability to protect their rights abroad and to keep away from expensive problems down the path.

Running business functions in international markets

Global business refers to marketable transactions that engage more than one country or nation. Globalization has made it achievable for nations and business organizations to carry out such dealings. Worldwide rivalry has enforced businesses to modify how they deal at home and abroad. The growing technological advances, rate of change, short product life cycles, and high?rapidity communications are all factors that contribute to these changes (Nambisan, et. al. 2019). The new supervision approach focuses on establish a new communication classification that features a higher level of worker participation. The international business functions include:

Planning: The primary step of global planning is to decide on how to expand company globally, whether to penetrate into joint ventures or licensing agreements, export or operate as a multinational corporation with amenities in an overseas country. Key issues include money instability, political instability, rivalry from government, pressure from the government, trademark and patent safety, and strong competition.

Organizing: global companies should be sure that their tactics fit the society of the host country. Usually, firms feel that long?term strategy should be 3 to 5 years in duration; but in some cultures, this phase is too short. No longer can business just put clones or carbon copies of themselves in overseas countries (Steenkamp, 2019). A global firm must be prearranged so that it can be approachable to overseas customers, employees, and suppliers.

When the company increases its global focus, it goes throughout the following 3 phases of structural modification:

• Pre?global stage: the firms with a manufactured goods or service that incorporate the newest technology, is inimitable, or is better may believe themselves prepared for the global arena.
• International division stage: heaviness may increase through the enforcement of trade restrictions, host country laws, and rivalry, placing a corporation at a cost difficulty.
• International structure stage: The global market is as significant to the corporation as the home market. A superior official in the business possesses both domestic and foreign experience.
• Staffing: acquiring a superior staff is so vital to the accomplishment of any company, the engagement and growth of workers must be done very cautiously. The XYZ Company must be familiar with the country's nationwide labor laws.
• Directing: the cultural differences make this function more complex for the global manager. Worker attitudes to problem-solving and work are different by country. Verbal communication barriers also build communication difficulty.
• Controlling: Geographic dispersal and detachment, legal restrictions, and language barrier make difficult the controlling function. Reporting, meeting, and inspection are characteristically part of the global control classification.

The most important factor in the accomplishment of the case company’s international success is its hiring program. Usually, hiring production personnel is not the main problem; firms recruit locals to carry out the daily work.

WTO across markets

Market admittance for products in the world trade organization (WTO) means the tariff, conditions, and non-tariff measures, arranged by members for the entrance of definite goods into their markets. Tariff commitment for products are position out in each member schedule of allowance on products. The schedule stands for commitments not to concern tariffs above the listed rates and these rates are bound. Non-tariff procedures are deal with under definite WTO agreement.\

Impact of national cultures on international markets

Culture is vital in global business as it influences how cross-cultural and international teams interrelate and work together. Understanding the responsibility and significance of culture in global business is necessary to overcome the cultural barrier that obstructs business expansion and development (Ergashev and Farxodjonova, 2020). A company's culture has a big meaning as it encompasses diverse elements, counting client relations, workplace etiquette, setup, office dress code, etc. nationwide traditions and cultures, economic trends, international trade, and the company’s size and nature influence its business culture.

Importance of culture in international trade to better appreciate how it shapes global company:

• Entry into new markets: carrying out global business involves entering new markets. The firm must put on view sensitivity towards diverse cultures when commerce with overseas clients or planning marketing campaigns for their overseas subsidiary.
• Business negotiations: Diverse cultures have different perspectives on company negotiations. Therefore, XYZ Company must consider how its counterpart seeks a negotiation purpose, whether they want to construct long-term satisfying relations or are seeming at it as a one-time contract.
• Personal style: Culture in global business powerfully influences individual style, from a person’s dressing sense to interacting with others. Every culture has its background and formalities for commerce meetings and negotiations.
• Team organization: customs are an important factor that affects how societies negotiate a deal. Whether the cultures promote hierarchical roles or community equality, these principles have an effect on all stakeholders in a business deal. Therefore, the company’s executives should appreciate how teams in diverse cultures classify and contribute to decision-making.
• Diversity and inclusion: the company that welcomes cross-cultural ideas, people, and customs generate a benchmark as a comprehensive and assorted workspace. Approval and sensitivity of diverse cultures help produce a talented and dynamic workforce. The advantage of these values leaves a permanent thought on customers, clients, investors, and stakeholders (Bogatyreva, et. al. 2019).

An appraisal of entry strategies in international markets

Market entry strategy provides firms with a map to enter into global markets. These entry strategies are methods firms use to distribute, plan, and deliver goods to global markets. The price and level of business control over allocation can differ depending on the approach it chooses.

Market entrance strategies XYZ firm can use to sell its product globally:

• Exporting: This involve advertising the products the case company produces in the countries in which they aim to sell them. Some firms use direct exporting, in which they put up for sale the product they produce in international markets without intermediary participation.
• Piggybacking: If the corporation has contact with business that at present sell products overseas, then the company may want to reflect on piggybacking (Surdu, al. 2018). This market entrance strategy involves asking other firms to add up products to their abroad inventory.
• Countertrade: it is an ordinary appearance of indirect international marketing. This functions as an exchange system in which firms trade with each other supplies instead of contributing their products for procure.
• Licensing: this occurs when one corporation transfer the right to make use of or sell manufactured goods to another corporation. XYZ business may prefer this method if it has a manufactured goods that is in demand and the corporation to which its strategy to license the product has a big market.
• Joint ventures: several firms’ effort to reduce the risk of ingoing a global market by generating joint ventures with other firms that map to sell their products in the global market. This strategy often functions like big, self-governing firms rather than a mixture of two smaller firms.
• Purchasing existing business: If the company tactics to put up for sale a product globally without managing the distribution and shipment of the products the firm produce, it may consider purchasing an existing corporation in the state in which the firm wants to do business (Etemad, 2019).
• Franchise: it is a sequence retail firm in which a person or group purchaser pays for the right to supervise firm branches on the firm’s behalf.
• Outsourcing: This involves hiring another firm to administer convinced aspects of trade operations for the case company.
• Greenfield investments: These are multifaceted market entry strategy that several firms choose to use.

An appraisal of appropriate global strategy for the local company

Small business owners who establish a local business often face a quandary when planning for growth (Gillespie and Swan, 2021). Before the XYZ Company dive into implementing new strategies, they need to find out the most ordinary challenges in business which need to address maintaining a positive cash flow, attracting consumers, improving brand awareness, and balance growth and stability in business.

Achieving growth through global and local strategies

The key is to establish the most excellent strategies that will allow XYZ business to increase its competitive advantage in its locality while achieving recognition in the global market.

• Focus on making an impact on the local market: the company by understanding its local customers’ requirements and making sure to meet their demands. Examining their purchasing behavior will help the firm to get ideas to attract new clients, as well as a global audience.
• Invest in local advertising strategies: the company by building a name for a brand in the local market by implementing a promotional strategy that intention the local market.
• Establish brand online: the company by build-up an online occurrence and make sure that people can reach out to the firm via social media pages and website.
• Work with influencers: marketing the business may be expensive, but the company can sometimes require spending a lot to accomplish business growth (Peng, 2021).
• Evaluating attentiveness for global expansion: the firm needs to find out if its business is ready for global expansion. They have to carry on implementing strategies that make their brand stand out in the local market.

Having international and local consumers will help improve XYZ's business. It is a tremendous opportunity for the case company to gain more profits and maintain positive cash flow.

Conclusion

At present XYZ Company's retail food chain has 100 stores including convenience and supermarkets stores. So the company needs to work on its trade models critically and advance its present marketing strategy for improved results in the future. Freshly they tried some innovative strategies for improving the general market position and market share of the retail giant. The core cultural issues in global business are the not related to success of association to appreciate local business customs. Unawareness of how to carry out business in an overseas country without considering political, cultural, and economic influence is an important barricade in global trade. Organizations focusing on the superior picture neglect regional difference in rising markets. Subcultures go further than a local and cultural variation to comprise other fundamentals. Culture powerfully influences customer approach and behavior.

References

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