Business BTEC Level 3 Unit 5 Assignment 2 | 100% Verified.

Business BTEC Level 3 Unit 5 Assignment 2 | 100% Verified. P5 – Explain the external factors that influence a selected business considering trading internationally. Political Factors: One beneficial factor is being part of a trading community like the EU; however, this means there are certain rules and regulations to follow. The government will support certain industries for example, companies that deal with renewable energy and offer benefits to the country. This support is not available to all industries. What the government also does is offer certain locations lower business rates and other incentives to encourage more trade. Lastly the government also offers support in relation to labour, for example apprenticeships and training. Economic Factors: these factors can change price of goods and customer spending power; therefore, they can affect a business’s profitability. Some examples include economic cycle and GDP, employment rates, interest rates, inflation, exchange rates and taxation. Social Factors: To accommodate the changing preferences of UK customers, Tesco has responded by expanding their selection of non-food items for sale. This is in line with the observed trends that show a shift towards either bulk buying or traditional single shop purchases. The retailer's efforts to adapt to these trends demonstrate their commitment to providing a comprehensive shopping experience for their customers. By offering a wider variety of non-food items, Tesco aims to meet the diverse needs and preferences of their clientele. Technological Factors: Tesco have been one of the leaders in the market of implementing modern technology which has forced competitors to follow this technology. They have been like pioneers in this way in terms of they have implemented online shopping with delivery and self-service checkout both things have made customers lives a whole lot easier and more convenient. Legal Factors: in the ways of international trading Tesco must abide by government policies and certain other laws that affect Tesco’s performance. For example, the food retailing commission 2004 this means they cannot change the price of items without notice. Environmental Factors: there is a lot of pressure on Tesco in terms of the environmental factors. The way they are combatting this is by obliging and offering to reduce its carbon footprint by 60% they can also lower the waste produce of its stores. P6 – Explain how business support systems enable a selected business to trade internationally Business support systems (BSS) are a set of integrated systems that help businesses manage their operations and customer interactions. These systems can play a crucial role in enabling a business to trade internationally by providing several key functions, such as: Global Payment Processing: BSS can integrate with global payment gateways and provide a secure and convenient way for businesses to accept payments from customers in different countries. Foreign Exchange Management: BSS can help businesses manage currency conversion, allowing them to easily transact business in multiple currencies. Tax Compliance: BSS can help businesses manage tax compliance requirements in different countries, ensuring that they are compliant with local tax regulations. Logistics and Shipping: BSS can provide businesses with shipping and logistics services, helping them to manage the delivery of goods to international customers. Customer Relationship Management: BSS can help businesses manage customer interactions, providing them with a centralized repository for customer data and communication history, regardless of location. By providing these essential functions, BSS can help businesses to streamline their international trade operations, reduce operational costs, and increase customer satisfaction. P7 – Explore the cultural differences affecting international business Cultural differences can significantly affect international business in several ways: Communication: Different cultures may have different communication styles, such as direct or indirect communication, high-context or low-context communication, and the use of gestures and body language. Misunderstandings can arise if communication styles are not properly understood and respected. Perception of time: In some cultures, punctuality and promptness are highly valued, while in others, a more relaxed attitude towards time is common. This can lead to misunderstandings and frustration in international business dealings. Business practices: Different cultures have different expectations and norms when it comes to business practices, such as gift-giving, the use of contracts, and the role of hierarchy in decisionmaking. Failing to adhere to these norms can damage business relationships and reputation. Work ethics: Attitudes towards work can vary greatly between cultures, with some cultures valuing long hours and hard work, while others place a greater emphasis on work-life balance. These differences can impact productivity and overall success in international business dealings. Negotiations: Cultural background can influence negotiation styles, such as the use of bargaining tactics, the importance of face-saving, and the level of directness in negotiations. Understanding these cultural differences is crucial for successful negotiations in international business. Attitudes towards authority: Attitudes towards authority can vary greatly between cultures, with some cultures placing a high value on hierarchy and obedience, while others value equality and collaboration. These differences can impact the power dynamics within business relationships and decision-making processes. In conclusion, it's essential for international businesses to be aware of and understand cultural differences to build successful and sustainable cross-cultural business relationships. M3 – carry out a situational analysis on two countries a selected business may consider trading in To carry out a situational analysis, it is important to consider both internal and external factors affecting the two countries and how they may impact a business looking to trade in those countries. Internal factors: 1. Economic conditions: GDP, inflation, unemployment rate, and consumer spending power. 2. Political stability: government stability, corruption levels, and regulation affecting business. 3. Infrastructure: transportation and communication systems, energy and power, and access to resources. 4. Demographics: population size and growth, age distribution, and education levels.