International Business Environment Assignment Sample

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International Business Environment Assignment

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  • Introduction

The following context will illustrate international business environment along with focusing on Wendy’s, multinational consumer goods company. As a matter of fact, the primal intention of the study is to focus on analysing the macro and micro factors of Wendy’s and to provide specific information which will impact on the business. The utilisation of PESTLE analysis and SWOT analysis has been proving to be beneficial for identifying various constraints and competitive strategy of the company in the marketplace of UK. It will also deliver certain modification that the company has adapted due to remain successful in the competitive market. Therefore, the recommendation of a significant market entry strategy will be discussed within a brief manner.The marketentry strategy will portray basic tactics or procedures to remain prospective in the marketplace of UK along with the marketplace of Germany.Moving on, by implementing these market entry strategies, there will be a discussion of constraints related to the company on the operating market. Thus, by implementing various strategies the major intention of the study will be succeeded.

  • Analysingof Macro and Micro Factors

PEST Analysis

PEST analysis of Wendy’s in the marketplace of UK will illustrate certain business techniques. The utilisation of PEST analysis will be accommodating to examine various external factors including Political, Economic, Social and Technological.The framework of PESTanalysis of Wendy’sin the marketplace of UK has been given below:





The UK government maintain the fair-trading commitment in case of both local customers and foreign producers.

As United Kingdom and Netherlands have been considered as two creative parts of the EU which smooth the progress of operating business among associates’ states by the harmonisation of various regulations in order to communicate the business within the elimination of deal barriers (Sheingate and Greer, 2020). Therefore, a political tension has always been observable in between two countries.

In case of Germany, a democratic constitution has emphasised the individual protection including liberty and division of several powers in a federal structure.

As a matter of fact, Germany is prominent member of various significant global organizations such as UN, WHO etc.(Dannenberget al., 2020).


According to various researches, it has been noticed that several purchasers are still experiencing from the impacts of the innermost and longest recession in the post war period. Eurosat demonstrates that the consumption of households has been decreased radically transversely Europe subsequently the recession. Therefore, recently a recovery has been observed in household consumptions in 2008. As a result, the increasing amount of unemployment has been considered to be the primal reason of economic downturn of the company (Ferrariset al., 2020). Lack of household consumptions, diminishing of earnings and increasing rate of employment have been considered as the focal reason to affect the manufacturing process of Wendy’s.

The economical atmosphere of Germany is extremely developed and contains numerous industrial capabilities. As a result, it will be beneficial for the Wendy’s to enter in the marketplace of Germany without having any kind of problematic situations.

The present industrial production rate or growth of the country is almost 6.7%(Dannenberget al., 2020). It has created an appropriate entry atmosphere for Wendy’s in order to stay prosperous in the marketplace of Germany.


In case of some high-profile public campaigns, the consequences of the report reveal that people are becoming superior health conscious and prefers hygienic distribution channels. As a result, the consumers demand is to get hygienic products within ethically manufactured (Janssenet al., 2018). The increasing concern regarding this matter reveals the huge amount of pressure on Wendy’s product portfolio.

In this country, a fair amount of plurality in the lifestyles and differences in the cultures have been noticed. So, it will be appropriate for the company to enter in the marketplace of Germany (Danesi, 2018).

However,demographic confronts such as immigration related issues, reducing incomes because of economic downturn and aging inhabitants can be problematic issues for the company.


The increasing rate of technological innovation has been observed in multiple business sectors. Now days, mainly younger individuals utilise social media platform in order to interrelate with the company websites to get significant information about the companies (Trakaet al., 2020). the websites also prove to be beneficial for to discuss about theirsocial networking

Many corporate and public research organisations conduct R&D activities in Germany that are relevant to the food sector. Financing for these initiatives is also distributed amongst several institutions. In this perspective it is one of the lowest industrial sectors in Germany that the R&D efficiency of the food industry is routinely (Strotmannet al., 2021). For food processing firms, product innovations are of more significance than process innovations, frequently both together.

SWOT Analysis



The strengths of Wendy’s are founded on the constant development of the firm in the fast-food market. The most remarkable strengths of Wendy are:

· Products of high grade

· Comprehensive business experience

· Strong image of brand

The firm is famous for its goods of great quality. The mission and vision goals of Wendy stress quality. The hamburger patties are for example sold as newly prepared meat. Furthermore, since it was formed in 1969, Wendy’s has become an efficient business (Shteynberg and Stoller, 2020). The firm also has one of the strongest competitive brand names as one of the leading participants in the world fast food restaurant. For both the UK and the German markets, Wendy’s has the strengths needed to sustain competitiveness.

The weakness of Wendy’s in comparison to other big fast-food companies is connected to its current state. The primary shortcomings of Wendy are:

· Comprehensive limited reach

· Low divergence

· Unlimited goods

In North America, most of Wendy’s income is produced. Financial records show that the firm has “immaterial” income from other areas (Stowell, Moore and Schumacher, 2017). This is a fault since it inhibits Wendy from optimising its world market success. The diversity of the company is also restricted, as evidenced in the lack of significant product or corporate innovation. Another problem is Wendy’s imitation of numerous items. Smaller businesses can replicate Wendy’s goods, particularly in poorer nations. The weavings of Wendy’s hinder foreign company growth, such as the United Kingdom and Germany.



Wendy’s can enhance his business success considerably. The following are Wendy’s most remarkable opportunities:

· Global Development

· Diversification of businesses

· More aggressive innovation in products

Wendy’s has the chance to grow worldwide. Global growth may improve the market reach of the firm and raise its finances. Wendy’s has the chance to broaden her business. For example, in the food services industry, the corporation can buy other businesses or develop a whole new product range. Wendy’s may more actively innovate against companies like McDonald’s and Burger King to enhance its competitiveness. Both in the UK and Germany, Wendy’s offers substantial expansion potential.

Wendy’s needs to fight threats to sustain the company objectives. The principal threats to Wendy’s include the following:

· Aggressive contest

· Imitation

· Trend towards healthy living

Wendy’s business is threatened by aggressive competition. McDonald’s, for example, is proactive in marketing and worldwide growth. Imitation is also a problem that may diminish Wendy’s goods’ competency and appeal. In addition, a growing awareness of health might diminish or depress demand for items from companies such as Wendy’s. In order to confront significant risks to his firm in the UK and German market, Wendy’s has to strengthen its goods and competitiveness.

  • RecommendationOf a Significant Market Entrance Strategy in The Marketplace of UK

Wendy’s plan to establish its market back in UK is by making collaborative partnership with Greggs. International collaborations allow for the recruitment of a more varied worker population and the promotion of products and services more efficiently. Thus, Wendy’s hopes to conquer the UK market by partnering with Greggs, which is one of the fastest growing fast-food chains in the country. As a result of the cooperation, the business is able to reach its target demographic efficiently, giving the company a competitive advantage over other rivals (Chen, Li and Liu, 2019). It is critical to get into a partnership arrangement with a company whose business objectives and values align with its own. Thus, partnering with established businesses in a foreign nation allows the new company to do business effectively and to reach a broad variety of customers. Additionally, partnerships expand the pool of information, experience, and resources available to create superior goods and reach a broader audience.

New, high quality and trendy products are provided by the most successful strategic entrants. The market in Germany is fragmented and diverse, with regional need and needs variances. In order to have a strong national market presence, successful market strategies incorporate regional variances into mind. Since domestic firms with entrenched presences are the principal adversaries of most German goods, competent lawyers are essential for any market strategy (Steffen, 2018). Companies, in the German market, like Wendy’s, can compete so hard by delivering goods and services of a high quality at reasonable costs as well as local after-sales help. Furthermore, to access the German market, Wendy’s might cooperate with Burger King. The comparatively high marginal tax rates and complicated tax rules of Germany might impede investors, although withdrawals, exclusions and write-offs can reduce effective taxes to worldwide competitiveness.


The report discussed a strategic dimension for Wendy’s to make its expansion decision ease for entering the UK and German market. From the PEST analysis, Wendy’s can identify the extra-market variables that can foster or hinder its business planning in UK or Germany. Also, the SWOT tool can help the company to distinguish its strong identities and limitations, which it can improve before expansion. Therefore, the recommended market entry strategies can allow the company’s business expansion in UK and Germany to forward in streamline.


Chen, W., Li, P. and Liu, Y., 2019. Product localization in the fast food industry. Innovative Marketing, 9(1), pp.37-45.

Danesi, G., 2018. A cross-cultural approach to eating together: Practices of commensality among French, German and Spanish young adults. Social Science Information57(1), pp.99-120.

Dannenberg, P., Fuchs, M., Riedler, T. and Wiedemann, C., 2020. Digital transition by COVID?19 pandemic? The German food online retail. Tijdschriftvooreconomischeensocialegeografie111(3), pp.543-560.

Dannenberg, P., Fuchs, M., Riedler, T. and Wiedemann, C., 2020. Digital transition by COVID?19 pandemic? The German food online retail. Tijdschriftvooreconomischeensocialegeografie111(3), pp.543-560.

Ferraris, A., Vrontis, D., Belyaeva, Z., De Bernardi, P. and Ozek, H., 2020. Innovation within the food companies: how creative partnerships may conduct to better performances?. British Food Journal.

Janssen, H.G., Davies, I.G., Richardson, L.D. and Stevenson, L., 2018. Determinants of takeaway and fast food consumption: a narrative review. Nutrition research reviews31(1), pp.16-34.

Sheingate, A. and Greer, A., 2020. Populism, politicization and policy change in US and UK agro-food policies. Journal of Comparative Policy Analysis: Research and Practice, pp.1-17.

Shteynberg, H. and Stoller, G.L., 2020. Would You Like Squid Ink With That? Wendy’s in Japan. SAGE Publications: SAGE Business Cases Originals.

Steffen, A., 2018. Exploring the benefits of employing market insights and consumer trends in food product innovation: A case study from Germany. In Case Studies in the Traditional Food Sector (pp. 209-237). Woodhead Publishing.

Stowell, D.P., Moore, T. and Schumacher, J., 2017. McDonald's, Wendy's, and Hedge Funds: Hamburger Hedging? Hedge Fund Activism and Impact on Corporate Governance. Kellogg School of Management Cases.

Strotmann, C., Baur, V., Börnert, N. and Gerwin, P., 2021. Generation and prevention of food waste in the German food service sector in the COVID-19 pandemic–Digital approaches to encounter the pandemic related crisis. Socio-Economic Planning Sciences, p.101104.

Traka, M.H., Plumb, J., Berry, R., Pinchen, H. and Finglas, P.M., 2020. Maintaining and updating food composition datasets for multiple users and novel technologies: Current challenges from a UK perspective.


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