Unit 5 assignment 1- international business
Learning aim A: Explore the international context for business operations
Learning aim B: Investigate the international economic environment in which
Title: Why trade internationally?
In this report I will how about 2 businesses that are were based in United Kingdom but are
operating internationally and how they are operating in different countries the strategies
that the businesses have in order to have a successful in the United Kingdom but also
internationally. The businesses I will talk in this report are Dyson and Tesco.
P1
Dyson
Dyson is a British busines that was found in 1978 by James Dyson that is when he designed
the first vacuum that was under Dyson brand since than the business started to sell their
products in over 65 countries around the world. Now the brand is selling not just vacuums
but also hair equipment, Dyson engineers are working in Britain, Singapore to improve the
brand name and make it more successful. Because the business it is working internationally
it allows the business to maximise their sales and the profit and also to sell their products in
more than one country so this means that the business will be able to sell the business
products in more country which will allow the business to have a higher profit. Dyson has
around 13,000 employees that are working to improve and support the company all over
the world. Dyson is a high innovative business which is using a high technology product
because their target market it is aimed to attract customers that appreciate high teach
products and that have a high quality and because of these factors customers are willing to
pay a higher price because of the level of performance, convenience and durability that
Dyson can offer to their customers. The business is aiming to attract customers with a
medium to high income that want to improve the way they are living, the quality of the air
and that want to have a clean and fresh house. It is estimated that until 2020 the business
have sold around 14 million products that the business have manufactured, produces and
improved over the years which leads the business to have a worth total around £14.5 billion
from the sales that the business made over the years.
Tesco
Tesco is a British supermarket and retailer that operates in more than 10 countries across
Asia and Europe. Tesco it is one of the biggest UK market and they have a market share of
around 27%. Tesco expanded their business and decided to expand their business and they
started to operate in another 11 countries around the world. In 2013 Tesco expanded their
business in American supermarket industry where the business failed because of all the big
brands that are already build in America so it is very hard to get establish because of the
well known competitors that Tesco has in America, but the business it is operating in other
countries where they have change the business decisions depending on the customers
wants and the demand that it is asked from all the countries in order to be a successful
business not just in UK but also in the countries that Tesco decided to open stores in order
to be an international business. Tesco mission and aim is to help customers and please all
their needs and also to offer to their customers high quality products to make everyday
,customers much easier and better. Tesco has a net worth around £10.8 billion and it has
over 300,000 employees that are working for them in all the countries around the world.
Advantages and disadvantages why Dyson and Tesco decided to operate internationally
Dyson
Advantages
-One of the factors why Dyson decided to operate internationally it’s because they wanted
to move the manufacture warehouse in Singapore, this because of the lower cost that the
business was paying for the manufacturing of the products and also they decided to move
to Singapore so they can access the Asian market which will allow the business to have a
faster growing because of the high number of population that can be found in Asia so
because of this the business can sell a higher number of their products and have a higher
profit
-Dyson decided to go internationally also because they have analysed the market for this
type of industry end they realised that the future of the company in order to be successful
need to be in Indonesia China and India rather than the UK because of the high number of
people that are interested in this type of products and also because half of the richest and
middle class can be found in Asia and in the near future spending power will be
concentrated in Asia
-Because the Dyson move the business Asia allow the business to minimise the UK taxes go
to business was paying because in the UK the business was paying taxes for around 19% but
in Singapore the taxes dropped to 17% which would allow the business to pay less taxes and
maximise the business profit.
Disadvantage
-The setting costs are quite expensive
-Lots of paper work and legal requirements that the business needs to do in order to be an
ethic company
Tesco
Advantages
-Tesco decided to go internationally because they wanted to expand and grow their
business and their aim for the business was to be able to stay in the top for the market
industry and to be able to survive the “long run”
-In order for Tesco to increase their profit they decided to move internationally because
they were confident with the products that that the business it is selling so they wanted to
offer the same quality of products to other countries to be able to increase their profit
-Tesco opened new stored in countries that it was a good potential place where Tesco could
expand because of the less number of competitors that can be found in the market and the
high number of customers that the business could of attract in order to increase their profit
Disadvantage
-In 2013 Tesco tries to expand their business in America but they failed massively which left
the business without $2 billion , the business failed because they tried to target the niche
market customers instead on trying to attract all the customers like the American
, supermarkets so because of this the business was left without $2 billion and the experiment
also failed
Going internationally can be a high risk because people in different countries that different
wants and needs when it comes to supermarkets so because of this the business needs to
understand the market where the business wants to expand in order to be a successful
business not only in the UK but also in the countries Tesco wants to expand.
Different types of business activity
When operating internationally the business will be involved in one or more business
activities depending on the needs that the business has in order to operate internationally
and be successful.
Exporting businesses
When a company decides to export the business can do this in the European Union or
outside of it. When operating within the European Union this means that there are no
checks of the goods that are moved from a country to another that is part of European
Union also the goods can be moved freely because of the trades and paperwork that is done
between the countries that are part of European Union. But when a business such as Dyson
decides to operate outside European Union different rules applied when moving goods from
one country to another so when Dyson decided to move to Singapore which is in Asia they
needed an export declaration also an export license and to pay customs duties in order to
be able to operate in Asia.
Importing businesses
When importing goods, the business can take goods from EU and move them into UK when
doing this there are no need for a licence or to pay importing duties , the only tax that needs
to be paid it is VAT, but now because UK left the EU because new agreement needs to be
made in order for the import to be made, now it is needed a commodity code is needed for
the goods this is necessary in order to pay the right amount of VAT.
Importing from outside the EU requires an import declaration, commodity code, VAT needs
to be paid before the deal to import can be done and also customs duties to be showed and
paid.
Multinational enterprises
Multinational businesses are the one that are operating in more than one country like Dyson
and Tesco and also, they can work in a work in different types of markets globally. Business
that are multinational they need to be careful with the trading rules and paperwork that it is
needed to be able to do the trade in the countries they want to operate because each
country has different rules, taxes and duties that needs to be paid and the businesses needs
to know all the laws, cultures and regulations because this can affect the trading that it is
done.
Associated businesses
Businesses can offer their support to organisations through services or helping them by
working in a partnership that businesses can do this in order to help each other do the
international trading in order to have an easier trade between the countries because this
can benefit the both sides in order to be successful.
Learning aim A: Explore the international context for business operations
Learning aim B: Investigate the international economic environment in which
Title: Why trade internationally?
In this report I will how about 2 businesses that are were based in United Kingdom but are
operating internationally and how they are operating in different countries the strategies
that the businesses have in order to have a successful in the United Kingdom but also
internationally. The businesses I will talk in this report are Dyson and Tesco.
P1
Dyson
Dyson is a British busines that was found in 1978 by James Dyson that is when he designed
the first vacuum that was under Dyson brand since than the business started to sell their
products in over 65 countries around the world. Now the brand is selling not just vacuums
but also hair equipment, Dyson engineers are working in Britain, Singapore to improve the
brand name and make it more successful. Because the business it is working internationally
it allows the business to maximise their sales and the profit and also to sell their products in
more than one country so this means that the business will be able to sell the business
products in more country which will allow the business to have a higher profit. Dyson has
around 13,000 employees that are working to improve and support the company all over
the world. Dyson is a high innovative business which is using a high technology product
because their target market it is aimed to attract customers that appreciate high teach
products and that have a high quality and because of these factors customers are willing to
pay a higher price because of the level of performance, convenience and durability that
Dyson can offer to their customers. The business is aiming to attract customers with a
medium to high income that want to improve the way they are living, the quality of the air
and that want to have a clean and fresh house. It is estimated that until 2020 the business
have sold around 14 million products that the business have manufactured, produces and
improved over the years which leads the business to have a worth total around £14.5 billion
from the sales that the business made over the years.
Tesco
Tesco is a British supermarket and retailer that operates in more than 10 countries across
Asia and Europe. Tesco it is one of the biggest UK market and they have a market share of
around 27%. Tesco expanded their business and decided to expand their business and they
started to operate in another 11 countries around the world. In 2013 Tesco expanded their
business in American supermarket industry where the business failed because of all the big
brands that are already build in America so it is very hard to get establish because of the
well known competitors that Tesco has in America, but the business it is operating in other
countries where they have change the business decisions depending on the customers
wants and the demand that it is asked from all the countries in order to be a successful
business not just in UK but also in the countries that Tesco decided to open stores in order
to be an international business. Tesco mission and aim is to help customers and please all
their needs and also to offer to their customers high quality products to make everyday
,customers much easier and better. Tesco has a net worth around £10.8 billion and it has
over 300,000 employees that are working for them in all the countries around the world.
Advantages and disadvantages why Dyson and Tesco decided to operate internationally
Dyson
Advantages
-One of the factors why Dyson decided to operate internationally it’s because they wanted
to move the manufacture warehouse in Singapore, this because of the lower cost that the
business was paying for the manufacturing of the products and also they decided to move
to Singapore so they can access the Asian market which will allow the business to have a
faster growing because of the high number of population that can be found in Asia so
because of this the business can sell a higher number of their products and have a higher
profit
-Dyson decided to go internationally also because they have analysed the market for this
type of industry end they realised that the future of the company in order to be successful
need to be in Indonesia China and India rather than the UK because of the high number of
people that are interested in this type of products and also because half of the richest and
middle class can be found in Asia and in the near future spending power will be
concentrated in Asia
-Because the Dyson move the business Asia allow the business to minimise the UK taxes go
to business was paying because in the UK the business was paying taxes for around 19% but
in Singapore the taxes dropped to 17% which would allow the business to pay less taxes and
maximise the business profit.
Disadvantage
-The setting costs are quite expensive
-Lots of paper work and legal requirements that the business needs to do in order to be an
ethic company
Tesco
Advantages
-Tesco decided to go internationally because they wanted to expand and grow their
business and their aim for the business was to be able to stay in the top for the market
industry and to be able to survive the “long run”
-In order for Tesco to increase their profit they decided to move internationally because
they were confident with the products that that the business it is selling so they wanted to
offer the same quality of products to other countries to be able to increase their profit
-Tesco opened new stored in countries that it was a good potential place where Tesco could
expand because of the less number of competitors that can be found in the market and the
high number of customers that the business could of attract in order to increase their profit
Disadvantage
-In 2013 Tesco tries to expand their business in America but they failed massively which left
the business without $2 billion , the business failed because they tried to target the niche
market customers instead on trying to attract all the customers like the American
, supermarkets so because of this the business was left without $2 billion and the experiment
also failed
Going internationally can be a high risk because people in different countries that different
wants and needs when it comes to supermarkets so because of this the business needs to
understand the market where the business wants to expand in order to be a successful
business not only in the UK but also in the countries Tesco wants to expand.
Different types of business activity
When operating internationally the business will be involved in one or more business
activities depending on the needs that the business has in order to operate internationally
and be successful.
Exporting businesses
When a company decides to export the business can do this in the European Union or
outside of it. When operating within the European Union this means that there are no
checks of the goods that are moved from a country to another that is part of European
Union also the goods can be moved freely because of the trades and paperwork that is done
between the countries that are part of European Union. But when a business such as Dyson
decides to operate outside European Union different rules applied when moving goods from
one country to another so when Dyson decided to move to Singapore which is in Asia they
needed an export declaration also an export license and to pay customs duties in order to
be able to operate in Asia.
Importing businesses
When importing goods, the business can take goods from EU and move them into UK when
doing this there are no need for a licence or to pay importing duties , the only tax that needs
to be paid it is VAT, but now because UK left the EU because new agreement needs to be
made in order for the import to be made, now it is needed a commodity code is needed for
the goods this is necessary in order to pay the right amount of VAT.
Importing from outside the EU requires an import declaration, commodity code, VAT needs
to be paid before the deal to import can be done and also customs duties to be showed and
paid.
Multinational enterprises
Multinational businesses are the one that are operating in more than one country like Dyson
and Tesco and also, they can work in a work in different types of markets globally. Business
that are multinational they need to be careful with the trading rules and paperwork that it is
needed to be able to do the trade in the countries they want to operate because each
country has different rules, taxes and duties that needs to be paid and the businesses needs
to know all the laws, cultures and regulations because this can affect the trading that it is
done.
Associated businesses
Businesses can offer their support to organisations through services or helping them by
working in a partnership that businesses can do this in order to help each other do the
international trading in order to have an easier trade between the countries because this
can benefit the both sides in order to be successful.
