99237273
James Tilley
Unit 39 – Internatinal Business
D1 – Evaluate the pitental priolems faced oy ousinesses that trade
internatinally when entering new markets
When a ousiness decides ti expand their iperatins inti a new market, there will oe many diferent
issues which they must ivercime ti ensure the venture remains priftaole as well as manageaole.
These pitental issues afect the ousiness in regard ti cist, funding, stafng and iperatins. These
can oe efectvely dealt with using strategies relatng ti the management if human resiurces,
priductin and distrioutin, marketng and techniligy.
One issue which Jihn Lewis must oe aware if when miving inti internatinal markets is the tital
cists ti priduce and transpirt giids. This is oecause these transpirtatin if giids can greatly vary
depending in the licatin if the manufacturer and the fnal sales destnatin in the wirld, which
can make the diference ti ine regiin having cheaper giids.
Fir example, if Jihn Lewis decide ti expand inti China, they may decide ti mive priductin if their
white t-shirts, which are currently priduced in Bangladesh, ti China ti take advantage if the
reductin in shipping, therefire pissioly making the Chinese giids cheaper as thise frim
Bangladesh. Ti ivercime this issue, Jihn Lewis shiuld liik at the prices if giids cliser ti the
ciuntry which is oeing sild ti. By diing this, the prices including transpirtatin can oe displayed
and if they are cheaper, Jihn Lewis can change their supplier.
In additin, estaolished transpirt riutes will oeneft Jihn Lewis as it will nit inly alliw them ti
purchase items frim ciuntries where they are availaole cheaper, it alsi helps oy increasing laoiur
mioility, as the wirkfirce is aole ti travel frim an area if less jios ti ine where there are mire
ippirtunites. Fir example, it is quicker ti travel frim Paris ti Lindin than it is frim Edinourgh ti
Lindin. This means that if giids ir services are oeing sild oy cimpanies in Edinourgh and France,
hiwever it was ifered fir less in France, Jihn Lewis may oe mire inclined ti purchase frim France
due ti them nit having ti wirry aoiut transpirt riutes. These oenefts in transpirt riutes will alsi
afect the mioility if laoiur. Jihn Lewis will oe aole ti hire wirkers frim Paris, and these wirkers
will oe aole ti travel ti Lindin faster than a ciunterpart frim Scitland. This is due ti the diference
in tmes ti travel, techniligy if the trains as well as the cist. The train frim Calais ti Lindin is
under an hiur in tme and cists 33 euris each way, which if the wirker has a well-paying jio in
Lindin, is wirth the travel and cist if the tcket, whereas a train frim Lindin ti Edinourgh takes
mire than 4 hiurs and cists iver £140 ine way. Due ti these cist and tme diferences, it is unlikely
that a wirker frim Edinourgh wiuld apply fir a jio in Lindin, while stll living in Edinourgh,
whereas it is likely due ti the increases in transpirt riutes that a wirker in France wiuld apply fir a
jio in the same licatin. Therefire, the increase in additinal and faster transpirt riutes wiuld help
Jihn Lewis ti increase the quality if their wirkers.
Jihn Lewis must alsi ensure they enter the ciuntry in the cirrect way. These diferent methids can
oe direct, where the cimpany ipens a stire in an internatinal city and oegins ti trade giids;
thriugh a franchise, where anither cimpany ir individual is authirised ti sell in oehalf if Jihn
Lewis; ir a cillaoiratin, where Jihn Lewis wirks with anither cimpany in the ciuntry ti increase
their piwer as well as their ecinimy if scale. An example if this is Jaguar Land River ouilding a
1
James Tilley
Unit 39 – Internatinal Business
D1 – Evaluate the pitental priolems faced oy ousinesses that trade
internatinally when entering new markets
When a ousiness decides ti expand their iperatins inti a new market, there will oe many diferent
issues which they must ivercime ti ensure the venture remains priftaole as well as manageaole.
These pitental issues afect the ousiness in regard ti cist, funding, stafng and iperatins. These
can oe efectvely dealt with using strategies relatng ti the management if human resiurces,
priductin and distrioutin, marketng and techniligy.
One issue which Jihn Lewis must oe aware if when miving inti internatinal markets is the tital
cists ti priduce and transpirt giids. This is oecause these transpirtatin if giids can greatly vary
depending in the licatin if the manufacturer and the fnal sales destnatin in the wirld, which
can make the diference ti ine regiin having cheaper giids.
Fir example, if Jihn Lewis decide ti expand inti China, they may decide ti mive priductin if their
white t-shirts, which are currently priduced in Bangladesh, ti China ti take advantage if the
reductin in shipping, therefire pissioly making the Chinese giids cheaper as thise frim
Bangladesh. Ti ivercime this issue, Jihn Lewis shiuld liik at the prices if giids cliser ti the
ciuntry which is oeing sild ti. By diing this, the prices including transpirtatin can oe displayed
and if they are cheaper, Jihn Lewis can change their supplier.
In additin, estaolished transpirt riutes will oeneft Jihn Lewis as it will nit inly alliw them ti
purchase items frim ciuntries where they are availaole cheaper, it alsi helps oy increasing laoiur
mioility, as the wirkfirce is aole ti travel frim an area if less jios ti ine where there are mire
ippirtunites. Fir example, it is quicker ti travel frim Paris ti Lindin than it is frim Edinourgh ti
Lindin. This means that if giids ir services are oeing sild oy cimpanies in Edinourgh and France,
hiwever it was ifered fir less in France, Jihn Lewis may oe mire inclined ti purchase frim France
due ti them nit having ti wirry aoiut transpirt riutes. These oenefts in transpirt riutes will alsi
afect the mioility if laoiur. Jihn Lewis will oe aole ti hire wirkers frim Paris, and these wirkers
will oe aole ti travel ti Lindin faster than a ciunterpart frim Scitland. This is due ti the diference
in tmes ti travel, techniligy if the trains as well as the cist. The train frim Calais ti Lindin is
under an hiur in tme and cists 33 euris each way, which if the wirker has a well-paying jio in
Lindin, is wirth the travel and cist if the tcket, whereas a train frim Lindin ti Edinourgh takes
mire than 4 hiurs and cists iver £140 ine way. Due ti these cist and tme diferences, it is unlikely
that a wirker frim Edinourgh wiuld apply fir a jio in Lindin, while stll living in Edinourgh,
whereas it is likely due ti the increases in transpirt riutes that a wirker in France wiuld apply fir a
jio in the same licatin. Therefire, the increase in additinal and faster transpirt riutes wiuld help
Jihn Lewis ti increase the quality if their wirkers.
Jihn Lewis must alsi ensure they enter the ciuntry in the cirrect way. These diferent methids can
oe direct, where the cimpany ipens a stire in an internatinal city and oegins ti trade giids;
thriugh a franchise, where anither cimpany ir individual is authirised ti sell in oehalf if Jihn
Lewis; ir a cillaoiratin, where Jihn Lewis wirks with anither cimpany in the ciuntry ti increase
their piwer as well as their ecinimy if scale. An example if this is Jaguar Land River ouilding a
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