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PGN122 International Business Management

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PGN122 International Business Management

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Course Code: PGN122
University: Middlesex University

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Country: United Kingdom

Question:

You have been appointed as an international Business consultant for an upcoming high profile SME based in India, ABC Continental Limited. As part of their main business portfolio, they offer a comprehensive air service that is committed to the safe, reliable and cost-effective delivery of your consignment. They are IATA registered agents, which gives them access to all the major airlines which can offer competitive prices to clients. They have the expertise and ability to move single or complex shipments by air, at any time to or from any destination.
ABC Continental Limited would now like to set up a new business venture in UK.  They intend to set-up an e-commerce platform to sell organic cotton wear for infants (0-2 years) in UK. They intend to get a supplier from India who has expertise in manufacturing organic cotton infant wear. The business fully intends to make use of the UK’s reputation as a land of quality, reliability, and transparency.
Since this new venture in the UK, it can be seen as an unrelated diversification; a new portfolio with new risks and opportunities involved.
ABC Continental Limited has engaged you as a consultant to provide the company with a business strategy to establish a new e-commerce venture to sell infant cotton wear in the UK.  
The company requires a professional report covering all of the following criteria:

A detailed strategy proposal based on extensive and relevant market research supported by key facts and figures.
Your research must identify:

Key business drivers behind company’s expansion into the UK.
Important barriers to trade and protectionist policies that can hamper the new venture
Ethical, social and legal issues that needs to be taken into account
Cross-cultural issues that are relevant to the proposed venture.

Based on the evidence  from your research evaluate the feasibility of the proposed venture in the current UK market environment taking into consideration:

the e-commerce option versus other methods of expansion;
the aspects of international marketing  relevant to the proposed venture; and,
potential impact of Brexit on the venture

Answer:

Introduction 
The following report mainly details about ABC Continental Limited which is based in India (Sperber et al. 2014). The organization mainly deals within providing proper air services which are committed to providing safe, reliable and cost-effective way for delivery of consignment. They considered being IATA registered agents which provide easy access to major kind of airline services. It can easily offer competitive prices to its clients. They are considered to be expert and have ability to move single or even complex shipments by air mode. It can be done at any time or even from any destination (Spence, 2016). The organization is planning to be set up new kind of business venture in whole United Kingdom (UK). The organization comes up with an idea of setting up new platform for selling organic cotton cloth wear for infants of UK. The organization will get the supply of raw materials from India who is specialized in manufacturing organic cotton infant wear. This business will make use of UK reputation for quality of land, reliability and lastly transparency. As the new venture is based in UK, it can unrelated kind of diversification that is new kind of portfolio for risk and opportunities.
In the coming pages of the report, a detail strategy proposal for extensive and market research has been provided in details. After that, the main business drivers behind the expansion in UK has been provided. A list of important barriers for trade and policies which can damage the new venture has been provided. Various issues like ethical, social and lastly legal aspects have been discussed in details. Issues related to cross culture has been provided in details. The last section of the report deals with e-commerce vs another mode of expansion and potential impact of Brexit has been provided.
Discussion 
Detail Strategy 
E-commerce has taken the whole concept of buying and selling of goods to next generation. Shopping through online mode is now experience as it makes benefit for the end users along with profit for the whole business (Spector, Liu, and Sanchez, 2015). In the year 2014, the whole e-commerce industry understands the goods with goods and services worth of value 1.5 trillion USD. Later on, in the year 2015 another exciting year for whole e-commerce industry for mobile shopping which tends to itself in the market. Consumers from various region of the world tend to spill across different devices. Brick and mortar retailers tend to focus on more online strategies and mobile industry will tend to grow around 40% for global transaction (Smith, Görzig and Robinson, 2018). ABC Continental Limited should implement a list of strategies for boasting this new infant cloth plan like:
Identifying and learning about Customers: The first notion of this ABC Continental Limited in the whole web market is all about identifying the end user. If an individual has a better understanding of, better the individual will able to devise products. It will ultimately lead to improving the traffic, sales and lastly traffic (Shiraev and Levy, 2016). If the organization has an idea regarding the buying behavior of consumer of UK, then it will increase the sale of infants.
Adding carefully to product: Stock marketing product can easily result in sell of overall product. Mass marketing of products merely stress over the fact product needs to have exponential buying power. Until and Unless ABC Continental Limited reaches the level of Walmart, the individual needs to reach the products (Howard and Kollanyi, 2016). This organization should be unique in selling of products that are infant clothes. It is encountered that overall demand of product will tend to decrease a lot.
Promoting through Intelligent Content: An individual should not underestimate the overall power of content marketing. It is considered to be full proof tool which is needed for driving office in the store (Goodwin and Heath, 2016). The fact should be taken into account there is some best kind of intelligent marketing techniques for some online business. Content mainly focus publishing information which is all about storing of products.
Making use of Social Media: Social media platform like Facebook and Twitter can be best magic for online business more specifically the start-ups like ABC Continental Limited. It is considered to be as one of best way making use of creativity, social metrics and lastly analytical thing (Colantone and Stanig, 2018). It is mainly needed to gain exposure which is needed for selling and gaining exposure for some of target audience. It is considered to be economical for incorporating any business plan when the given result can be exponential in nature.
Mobile Compatibility: Mobile e-commerce is known to be domain of e-commerce which is growing at a much high rate. If the ABC Continental Limited does not plan mobile compatible platform, then the organization can easily experience huge amount of drop in the revenue. But for getting mobile compatible platform an individual can easily experience can see smartphone attuned web store (Agwu and Murray, 2018). The mobile platform will allow the user to keep a track of order tracking, real-time notification, maps and information of various products of infant.
Maintaining Web Application: Maintenance is known to be an important factor for various online business more specifically infant’s cloth stores. The only factor which is taken into consideration is all about fixing website and different web applications. It merely highlights periodic changes for website and various web application (Bell, Bryman, and Harley, 2018). Upgradation of new applications to present standard and employing new tools are known to be convenience for customers.
Improving Trust and Credibility: Generally online consumer is looking for some trust worthy stores. Selling of genuine infant cloths can easily result in delivery of good products and the customers can easily get value for money (Brea?Solís, Casadesus?Masanell and Grifell?Tatjé, 2015). The customers of this ABC Continental Limited needs to have an idea regarding genuine products and services. It can be done from original testimonial that is from previous purchase to present buyers and lastly review of customer services. All the given tools can be used for not only adding brand value but also built trust value for customers.
Logistic Sound: A proper successful online business, ABC Continental Limited needs to have a clear picture with respect to logistics (Betancourt et al., 2016). If the promised items like infant’s clothes are not delivered on time, then the customer base for this organization with being affected. Apart from this, certain features like easy replacement and easy return are considered to be driving factors for the given customers. It will ultimately make the logistics a much better place.
Augment Customer Services: Online mode of shopping tends to provide huge amount of convincing to customers. There are some instances when it is very important for interacting with business (Darrow et al. 2015). ABC Continental Limited should emphasize on provide multichannel customer based which can satisfy the customers.
Key Business Drivers 
If there is some kind of sure shot formula for fast growth, then number of organization will tend to achieve same kind of revenue. There are mainly five business drivers for the expansion of ABC Continental Limited.
Strategy: The main key business growth drivers for this business that is ABC Continental Limited is strategy (Dhingra et al. 2016). For any fast growing organization like ABC Continental Limited is all about idea with can be converted into business plan. The strategy focus brings new design of infant cloth in the market or modifying an existing product or service so that it can be delivered in new way. Accelerated growth can be easily managed by developing new products or even expanding into current markets.
People and Operations: Apart from strategy, both people and operation are considered to be another growth driver. There is large number of fast-growing organization which is individual driving which can move them forward (Dhingra et al. 2016). A fast-growing organization like ABC Continental Limited mainly depends on teamwork. Business Owners need to focus on group or individual with whom they can share important information and can easily apply dreams and values.
Infrastructure: A growing organization like ABC Continental Limited requires to develop a proper infrastructure so that the business can easily grow (Gupta and Bhaskar, 2016). It mainly requires certain number of IT systems, processes or even some of the basic office space. Operational system needs to have an idea regarding how ABC Continental Limited can maintain efficiency.
Funding: ABC Continental Limited cannot grow on fast pace without any kind of funding. Capital is considered to be an important parameter for growth of business. Proper kind of financial backup is considered to be critical for any organization (Becker, Fetzer and Novy, 2017). High value of growth cannot be achieved with large amount of funding. The value of funding will ultimately result in fast growth. Certain factors like transaction are considered to be important factor for driving growth.
Risk and Reporting: With the passage of time ABC Continental Limited will grow, so it is important for establishing control which will help in managing certain number of risk. This particular parameter is considered to be an important factor for organization both internally and externally (Chaffey, 2015). The management teams of ABC Continental Limited needs to establish proper communication so that they can establish communication among themselves. Proper management of five factors is considered to be vital.
Important barriers to trade and policies 
International trade is considered to be important and most profitable for any organization but apart from these, there is some kind of barriers to international trade. A list of problem has which can be encountered by Important barriers to trade has been discussed below like:
Cultural and social barriers: The culture and social forces of an organization can easily restrict any international business (Hair Jr et al., 2015). Culture mainly comprises of some of the general concept and values which are intangible in nature like food, cloth, and building. There is some kind of social forces like family, religion and custom. Selling of product from one country to another country is considered to be difficult for any two organizations.
Potential barriers: The political atmosphere of any organization can easily result in huge amount of impact on some international trade (Laudon and Laudon, 2016). Political atmosphere of the attitudes towards any kind of foreign firms in the given time. Any kind of unfavorable atmosphere can be used for international business.
Boycotts: It can be defined as the absolute for prohibition of purchase and import of certain good.
Trade protectionism is generally implemented by certain number of countries which is affected by unjust kind of competition. It can be stated like defensive measure which is seen by various political forces (Inglehart and Norris, 2016). In other words, protectionism can be stated as government action and policies which is used for restriction or restraint of international trade. It is mainly done with the notion of protecting local business and jobs from any kind of competition. There are some methods of protectionism of import staffs, quotes, and direct state intervention. Trade protection tends to hurt the overall economy of the country which tends to enforce as one of the oldest but still tend to understand the economy as far possible.
Ethical, Social and Legal Issues 
As the market for the international business is expanding at a higher rate, ABC Continental Limited is focusing on expansion on international platform (Mesman, van IJzendoorn, and Sagi-Schwarz, 2016). Both legal structures and frameworks tend to differ in United Kingdom. An individual need to address both legal and ethical issues before entering a market.
Employment: Both wages and working environment is considered to be an important factor for oversea based location (Kolk, 2016). It mainly highlights the local legal requirements of any business. If an individual tends to hire workers, then an individual can encounter issues with pay levels and working condition.  
Corruption: Various organization like ABC Continental Limited focus on making payments which are needed for securing their business. It will ultimately lead to guilty of some of the illegal activity. The payments are mainly done for customary in nature which is needed for understanding the legal laws (Schwartz, 2017). When this organization makes use of such payments, it can easily encourage a local system of corruption which is achieved by unethical behavior. Smaller gifts will ultimately result in influencing a major kind of decision.
Human Rights: The country in which the organization is expanding business might not have some basic human rights (Darrow et al. 2015). The ethical problem encountered by an organization is the major zone for understanding catalysts for human right improvements.
 Cross-Culture Issues 
ABC Continental Limited large number of cross cultural issues which can help this organization in providing new opportunity for both growth and profit. Doing global business is not that much easy, there is large number of issues or problem associated with it (Becker, Fetzer and Novy, 2017). Various culture around the globe comes up with different kind of values but in many cases, it can be stark. It can be difficult in some countries where women do have right like men. Marketing style in United Kingdom can easily differ from other countries. Some of the cultures all around the globe take it seriously as view from important in comparison to individual (Chaffey, 2015). It is important for ABC Continental Limited to understand the new kind of policies in United Kingdom. There is large number of issues of Cross Culture Issues in Business like:  
Effects: Diversification of population focus on sales and marketing based communication for different population in United Kingdom. Various countries all around the globe tend to understand the changing demographics in various cities (Dhingra et al. 2016). The neighborhood tends to come up with different kind of communication-based approaches.
Misconception: Organization like ABC Continental Limited have focused on selling of products in different market (Kolk, 2016). It is mainly done as a result of changing slogan and new kind of branding strategies for understanding the demography.
E-Commerce vs Other Method of Expansion 
E-commerce is considered to be new variety of e-commerce which helps in exchange of goods. Some other forms of business expansion are traditional e-commerce (Laudon and Laudon, 2016). The only difference encountered between traditional e-commerce and normal e-commerce is all about accessibility. With the help of traditional business one can easily reach and accessible as per the customer’s interest. There are some between traditional e-commerce and local e-commerce like advantages and disadvantages. Traditional stores are considered to be a local store which tends to provide offers for services and products to large number of customers (Mesman, van IJzendoorn and Sagi-Schwarz, 2016). In this kind of setup people generally needs to visit the store for physical buy of product. If organization like ABC Continental Limited would opt for physical store option then they have to face a large number of issues like
Cost of infrastructure: In some of the traditional business, the overall infrastructure cost is considered to be high (Inglehart and Norris, 2016). Both retention and buying of office for ABC Continental Limited are considered to be expensive.
Cost of employing staff: ABC Continental Limited needs to hire new staff for both sales, account, management, and security.
Huge investment in maintaining stock: It is considered to be important for this organization to keep the stock of infant clothes (Schwartz, 2017). It is all about dealing with huge amount of money which can easily get blocked in the business.
Limitation of Locality: Making a correct choice of proper location is considered to be an important parameter (Dhingra et al. 2016). The open stores of ABC Continental Limited must be located in open spaces so that various customers can easily visit.
Less scope for expansion: This is considered to be most vital point as ABC Continental Limited will have limited office, there will be minimum chances of business expansion in near future.
If ABC Continental Limited opt for E-commerce option then it can easily have many benefits like
No limitation: This is considered to be as one of the biggest pluses of e-commerce industry. In online domain, an individual is merely one click away. So, it is easier for them to buy new products
Time accessibility: Online web-based platform tends to work or run for 24 hours interval. An individual can easily buy products anytime that is even on some of the holiday.
Global reach: It will be very easy for ABC Continental Limited to expand their business on online platform as any kind of physical presence of the customer is needed.
Better Customer Services: In the domain of e-commerce an individual can easily serve the customer is much better way. An individual can easily resolve quarries for faster email and even live chats.
Financial Investment: ABC Continental Limited can easily start their online business of selling infant cloths as e-commerce platform tends to provide free e-commerce stored.
Different aspect of International marketing 
International marketing can be easily sated as the overall performance of marketing activities which is carried out in more than one nation.
Targeting international customer: It mainly highlights the importance of segmentation, targeting, marketing and lastly positioning of some international customers.
Looking for Global consumer needs: It emphasizes the importance of similarities and differences in various customer groups in different regions of the country.
Satisfying the global need: ABC Continental Limited should focus on implementing marketing mix strategy which is needed for satisfying the consumer need in different regions of United Kingdom.
Better than Competition: ABC Continental Limited should focus on keeping a track on global competition by providing values.
Maintaining relationship: ABC Continental Limited should make a strategy of maintaining a long-term relationship with foreign customer and another kind of involved business parties.
Coordinating Global Business: ABC Continental Limited should integrate certain number of business activities along with implementing in some nation.
Global environment: ABC Continental Limited should consider an analysis with respect to both internal and external factors in some countries like United Kingdom.
Orientation of Business: ABC Continental Limited should pressure on expanding markets and overall profit.
Impact of Brexit on the new venture 
Brexit comes up with potential of rewriting the rulebook of governing organization tend to operate in UK (Gupta and Bhaskar, 2016). Brexit in UK will create a large number of effects on different aspect like trade, foreign direct investment, number and type of workers, regulation, productivity, value of sterling and another kind of policies.
Trade: In UK economy, a huge amount of change is brought by different oversea buyers. In many cases, a significant amount of changes can be brought from business from overseas (Hair Jr et al., 2015). Various economist around the globe has argued the fact that good trade can easily improve the living standard of different parties involved. By addressing the competitive advantage for any organization, it can affect the goods and services which is being offered to it. The cost of goods in UK is mainly influenced by goods and services in some of the other countries. The most three factors which are taken into consideration is simple local goods(Brea?Solís, Casadesus?Masanell and Grifell?Tatjé, 2015). Transport of goods an easily increases overall cost of involved trading within other countries. It will ultimately become more expensive to send goods over much longer distance.
Foreign direct investment: Investment is considered to be as one of the important factors for long-term domestic product. Both kind of investment that is Domestic and public can easily result in increase in overall number of machines, building and technologies. It is all about workers which can have great disposal, technical progress, and lastly improved productivity.
Regulation: Domestic regulation tends to affect how cost-effectively various business can easily make use of workers, technology and capital for producing output. As per some of the international surveys both products and labor market in UK is considered to be least regulated.
Productivity: Strong value of productivity is considered to be important factor for any business. With increase in productivity, workers can easily produce large quantities of output. It does not require any kind of capital to work with. Growth of productivity is considered to be an important factor for living standard.  
Conclusion 
From the above pages of the report, it can be easily stated that it is all about ABC Continental Limited. The organization is mainly involved in offering some air services which helps in safe, reliable and cost-effective method for delivery of consignment. They are considered to be IATA based agents which helps in getting access to some major airlines which is needed by their clients. The organization comes up with expertise to easily move some single or even complex shipments by the mode of air. The organization has come up with a new plan to expand their business in UK. The organization fully makes use of reputation of UK for quality and reliability. The organization aims to provide new kind of business strategy for establishing new venture. In the above pages of the report a detail strategy proposal has been discussed in details. After that key business drivers of organization in UK has been discussed. Various kind of ethical, social issues which can arise has been discussed. A list of cross issues has been provided in the above pages.
References 
Agwu, E. and Murray, P.J., 2018. Empirical study of barriers to electronic commerce adoption by Small and Medium scale businesses in Nigeria.
Becker, S.O., Fetzer, T. and Novy, D., 2017. Who voted for Brexit? A comprehensive district-level analysis. Economic Policy, 32(92), pp.601-650.
Bell, E., Bryman, A. and Harley, B., 2018. Business research methods. Oxford university press.
Betancourt, J.R., Green, A.R., Carrillo, J.E. and Owusu Ananeh-Firempong, I.I., 2016. Defining cultural competence: a practical framework for addressing racial/ethnic disparities in health and health care. Public health reports.
Brea?Solís, H., Casadesus?Masanell, R. and Grifell?Tatjé, E., 2015. Business Model Evaluation: Quantifying W almart’s Sources of Advantage. Strategic Entrepreneurship Journal, 9(1), pp.12-33.
Chaffey, D., 2015. Digital business and e-commerce management. Pearson Education Limited.
Colantone, I. and Stanig, P., 2018. Global competition and Brexit. American political science review, 112(2), pp.201-218.
Darrow, J.J., Sarpatwari, A., Avorn, J. and Kesselheim, A.S., 2015. Practical, legal, and ethical issues in expanded access to investigational drugs.
Dhingra, S., Ottaviano, G., Sampson, T. and Van Reenen, J., 2016. The impact of Brexit on foreign investment in the UK. BREXIT 2016, 24.
Dhingra, S., Ottaviano, G.I., Sampson, T. and Reenen, J.V., 2016. The consequences of Brexit for UK trade and living standards.
Goodwin, M.J. and Heath, O., 2016. The 2016 referendum, Brexit and the left behind: An aggregate?level analysis of the result. The Political Quarterly, 87(3), pp.323-332.
Gupta, S. and Bhaskar, A.U., 2016. Doing business in India: cross-cultural issues in managing human resources. Cross Cultural & Strategic Management, 23(1), pp.184-204.
Hair Jr, J.F., Wolfinbarger, M., Money, A.H., Samouel, P. and Page, M.J., 2015. Essentials of business research methods. Routledge.
Howard, P.N. and Kollanyi, B., 2016. Bots,# StrongerIn, and# Brexit: computational propaganda during the UK-EU referendum.
Inglehart, R. and Norris, P., 2016. Trump, Brexit, and the rise of populism: Economic have-nots and cultural backlash.
Kolk, A., 2016. The social responsibility of international business: From ethics and the environment to CSR and sustainable development. Journal of World Business, 51(1), pp.23-34.
Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education India.
Mesman, J., van IJzendoorn, M.H. and Sagi-Schwarz, A., 2016. Cross-cultural patterns of attachment. Handbook of Attachment: Theory, Research, and Clinical Applications, third ed. Guilford, New York, NY, pp.852-877.
Schwartz, M.S., 2017. Corporate social responsibility. Routledge.
Shiraev, E.B. and Levy, D.A., 2016. Cross-cultural psychology: Critical thinking and contemporary applications. Routledge.
Smith, P.K., Görzig, A. and Robinson, S., 2018. Issues of cross-cultural variations in cyber bullying across Europe and beyond.
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Spence, L.J., 2016. Small business social responsibility: Expanding core CSR theory. Business & Society, 55(1), pp.23-55.
Sperber, A.D., Gwee, K.A., Hungin, A.P., Corazziari, E., Fukudo, S., Gerson, C., Ghoshal, U.C., Kang, J.Y., Levy, R.L., Schmulson, M. and Dumitrascu, D., 2014. Conducting multinational, cross?cultural research in the functional gastrointestinal disorders: issues and recommendations. A Rome Foundation working team report. Alimentary pharmacology & therapeutics, 40(9), pp.1094-1102.

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