Rahel Akram
Unit 5 International Business Assignment 1: Why trade
internationally?
Introduction
My name is Rahel Akram and I have taken on a role in the local chamber commerce. In my
report I will discuss why businesses trade internationally. I will research five businesses
describing what they do and general information about them. Out of the five, I will then
choose two businesses on which I will complete my report on. My report will include details
about the structure of the businesses, activities, the type of finance both the businesses
have what market they are involved in.
The five international businesses I have chosen are Rolls Royce, Walmart, Taco Bell, H&M
and Samsung.
Rolls Royce
Rolls Royce is a British car company that produce and sell luxury vehicles and car parts. Rolls
Royce’s purpose is to “provide better power for a changing world”. The company was
founded in Manchester, England in the year 1906 by two men named Henry Royce and
Charles Rolls. They are headquartered in London, however they have other Rolls Royce
factories in 50 countries around the world. Rolls Royce sold around 5,152 cars in 2019 and
accumulated £16.59 billion as of 2019.
Walmart
Walmart is an American multinational retail business that sell many products like groceries,
health products, appliances and many more. Walmart’s purpose is to help people save
money so they can live better. Walmart was founded in Arkansas, USA in 1962 by Sam
Walton. As of 2020, Walmart’s revenue is $524 billion. Although they are headquartered in
America, Walmart have 11,500 set up in 27 countries around the world. Walmart have over
2.2 million employees with 1.5 million being in America.
Taco Bell
Taco Bell is an American fast-food restaurant. Taco Bell’s purpose is to “Take pride in making
the best Mexican style fast food, providing fast, friendly & accurate service. Taco Bell was
founded in California in 1962 by Glen Bell. Taco Bell operate more than 7,000 restaurants in
26 countries around the world. Taco Bell’s revenue in 2015 was $1.988 billion with over
210,000 employees.
H&M
Hennes & Mauritz AB also known as H&M is a Swedish clothing retail, they are known for
selling fashionable clothing for men, women and children for a cheaper price. Their purpose
,Rahel Akram
is “to drive long-lasting positive change and improve living conditions by investing in people,
communities and innovative ideas.” H&M was founded in Sweden in 1947 by Stefan
Persson. H&M have over 5,000 stores in 74 countries around the world with $24.4 billion
revenue. They have an average of 126,376 employees worldwide.
Samsung
Samsung is a South Korean electronics company. They are known as one of the world's
largest electronic company. Samsung’s mission statement is “We will devote our human
resources and technology to create superior products and services, thereby contributing to
a better global society.” They sell things ranging from phones to microwaves. Samsung was
founded in South Korea in 1938 by Lee Byung-chul. Samsung has stores in 74 countries
around the world with roughly 290,000 employees worldwide. As of 2020, Samsung’s
revenue is KRW 52.97 trillion.
Out of these 5 businesses, I have chosen 2 businesses, Rolls Royce and H&M. I have chosen
these 2 businesses because they differ in terms of what they sell, the number of employees
they have and what their purposes are in the market.
Section 1
P1
Structure
Rolls Royce was founded in Manchester and is headquartered in London. Due to Rolls Royce
being a big company, they go by a hierarchal structure to run their business. A hierarchal
structure is for businesses that depend on having different levels of responsibility and
authority with a chain of command linking more than one administration level inside the
business. Rolls Royce use this structure as it provides clear understanding and
responsibilities for a big business. The owner of Rolls Royce is BMW. The CEO is Warren
East. His job is making major decisions, manage operations and resources in the business.
The Chief Financial Officer is Stephen Daintith. He is responsible for making the business’s
financial decisions. The Chief Technology Officer is Paul Stein. He is responsible for the
management of the business’s research and development. Although the business only
allows customers to purchase through approved Rolls Royce, it also has an online store
where you can add items into your basket and submit them to a dealer so you can purchase
them in stores.
H&M was founded in Västerås, Sweden and is headquartered in Stockholm. As a big
business, H&M prefer to use a matrix organisational structure. A business structure that
includes two or more organisational structures is called a matrix organisational structure.
H&M use a matrix organisational structure because it enables numerous sections in the
business to communicate easily and work on a project. The owner of H&M is Stefan
Persson. The CEO is Helena Helmersson. She is responsible for the daily management of the
, Rahel Akram
business. She is involved in the employment of senior executives, pricing strategy and sales,
just to name a few. The Chief Financial Officer is Adam Karlsson. His job is to manage the
financial decisions of the business. The Chief Technology Officer is Alan Boehme. His job is to
manage the business’s research and development. As well as having physical stores around
the world, H&M also have an online store which you can purchase from and have your items
sent to your home, or have it sent to one of the physical stores for you to come there and
collect.
Activities
Rolls Royce export and import, they export their cars to other countries in the world like
America and Germany to name a few. They will import high quality resources like exhaust
pipes and tires from other countries like Malaysia and they spend £7billion annually on
these supplies. Rolls Royce are not only popular for selling cars, they are also well known for
producing aircraft engines for people involved in the Royal Navy. Furthermore, as well
selling products, Rolls Royce provide services such as repairs to your vehicle if there is an
issue. Rolls Royce operate in 50 countries including America, Germany, France and Qatar.
There fore, making the business a multinational company. Since 1998, Rolls Royce has been
owned by BMW, this means that all the rights go to BMW. Furthermore, with Rolls Royce
being owned by BMW, they can produce more cars at a faster pace, so this enables Rolls
Royce to export their products to more countries around the world due to BMW providing
them with more factories.
H&M both export and import, they export their clothing to their other branches around the
world like France, Russia and China. They import resources from 800 independent suppliers
around the world, mainly in Europe and Asia. Besides selling clothing, H&M also sell
perfumes and deodorant. Furthermore, they also provide a loyalty program where
customers receive points for shopping at H&M, in store or online. With this loyalty program,
customers can receive benefits like 25% discounts on their birthday and free online returns.
H&M operate in 74 countries including France, China, Italy and Poland making it a
multinational business. H&M own brands like Monki, Weekday and Arket. All these
businesses together help provide each other with ideas and products. One benefit for H&M
owning these businesses is that the more revenue the businesses make, the more it enables
H&M to become more successful, expand even more and reach wider audiences around the
world.
Chosen Market
Rolls Royce operate in developed economies such as America, Switzerland, Australia and
China just to name a few. An important factor that influences them to sell in these countries
is the economy. Countries that have a developed economy means that they are most likely
to purchase high priced products like luxury cars that Rolls Royce make. Due to countries
like America being very advanced financially, Rolls Royce use this to their advantage and
export their products to them as a way to benefit the company and maximise their sales.
Therefore, doing this helps the company gain revenue resulting in the business expanding
even more in the market. Another market that Rolls Royce operate in, is emerging
Unit 5 International Business Assignment 1: Why trade
internationally?
Introduction
My name is Rahel Akram and I have taken on a role in the local chamber commerce. In my
report I will discuss why businesses trade internationally. I will research five businesses
describing what they do and general information about them. Out of the five, I will then
choose two businesses on which I will complete my report on. My report will include details
about the structure of the businesses, activities, the type of finance both the businesses
have what market they are involved in.
The five international businesses I have chosen are Rolls Royce, Walmart, Taco Bell, H&M
and Samsung.
Rolls Royce
Rolls Royce is a British car company that produce and sell luxury vehicles and car parts. Rolls
Royce’s purpose is to “provide better power for a changing world”. The company was
founded in Manchester, England in the year 1906 by two men named Henry Royce and
Charles Rolls. They are headquartered in London, however they have other Rolls Royce
factories in 50 countries around the world. Rolls Royce sold around 5,152 cars in 2019 and
accumulated £16.59 billion as of 2019.
Walmart
Walmart is an American multinational retail business that sell many products like groceries,
health products, appliances and many more. Walmart’s purpose is to help people save
money so they can live better. Walmart was founded in Arkansas, USA in 1962 by Sam
Walton. As of 2020, Walmart’s revenue is $524 billion. Although they are headquartered in
America, Walmart have 11,500 set up in 27 countries around the world. Walmart have over
2.2 million employees with 1.5 million being in America.
Taco Bell
Taco Bell is an American fast-food restaurant. Taco Bell’s purpose is to “Take pride in making
the best Mexican style fast food, providing fast, friendly & accurate service. Taco Bell was
founded in California in 1962 by Glen Bell. Taco Bell operate more than 7,000 restaurants in
26 countries around the world. Taco Bell’s revenue in 2015 was $1.988 billion with over
210,000 employees.
H&M
Hennes & Mauritz AB also known as H&M is a Swedish clothing retail, they are known for
selling fashionable clothing for men, women and children for a cheaper price. Their purpose
,Rahel Akram
is “to drive long-lasting positive change and improve living conditions by investing in people,
communities and innovative ideas.” H&M was founded in Sweden in 1947 by Stefan
Persson. H&M have over 5,000 stores in 74 countries around the world with $24.4 billion
revenue. They have an average of 126,376 employees worldwide.
Samsung
Samsung is a South Korean electronics company. They are known as one of the world's
largest electronic company. Samsung’s mission statement is “We will devote our human
resources and technology to create superior products and services, thereby contributing to
a better global society.” They sell things ranging from phones to microwaves. Samsung was
founded in South Korea in 1938 by Lee Byung-chul. Samsung has stores in 74 countries
around the world with roughly 290,000 employees worldwide. As of 2020, Samsung’s
revenue is KRW 52.97 trillion.
Out of these 5 businesses, I have chosen 2 businesses, Rolls Royce and H&M. I have chosen
these 2 businesses because they differ in terms of what they sell, the number of employees
they have and what their purposes are in the market.
Section 1
P1
Structure
Rolls Royce was founded in Manchester and is headquartered in London. Due to Rolls Royce
being a big company, they go by a hierarchal structure to run their business. A hierarchal
structure is for businesses that depend on having different levels of responsibility and
authority with a chain of command linking more than one administration level inside the
business. Rolls Royce use this structure as it provides clear understanding and
responsibilities for a big business. The owner of Rolls Royce is BMW. The CEO is Warren
East. His job is making major decisions, manage operations and resources in the business.
The Chief Financial Officer is Stephen Daintith. He is responsible for making the business’s
financial decisions. The Chief Technology Officer is Paul Stein. He is responsible for the
management of the business’s research and development. Although the business only
allows customers to purchase through approved Rolls Royce, it also has an online store
where you can add items into your basket and submit them to a dealer so you can purchase
them in stores.
H&M was founded in Västerås, Sweden and is headquartered in Stockholm. As a big
business, H&M prefer to use a matrix organisational structure. A business structure that
includes two or more organisational structures is called a matrix organisational structure.
H&M use a matrix organisational structure because it enables numerous sections in the
business to communicate easily and work on a project. The owner of H&M is Stefan
Persson. The CEO is Helena Helmersson. She is responsible for the daily management of the
, Rahel Akram
business. She is involved in the employment of senior executives, pricing strategy and sales,
just to name a few. The Chief Financial Officer is Adam Karlsson. His job is to manage the
financial decisions of the business. The Chief Technology Officer is Alan Boehme. His job is to
manage the business’s research and development. As well as having physical stores around
the world, H&M also have an online store which you can purchase from and have your items
sent to your home, or have it sent to one of the physical stores for you to come there and
collect.
Activities
Rolls Royce export and import, they export their cars to other countries in the world like
America and Germany to name a few. They will import high quality resources like exhaust
pipes and tires from other countries like Malaysia and they spend £7billion annually on
these supplies. Rolls Royce are not only popular for selling cars, they are also well known for
producing aircraft engines for people involved in the Royal Navy. Furthermore, as well
selling products, Rolls Royce provide services such as repairs to your vehicle if there is an
issue. Rolls Royce operate in 50 countries including America, Germany, France and Qatar.
There fore, making the business a multinational company. Since 1998, Rolls Royce has been
owned by BMW, this means that all the rights go to BMW. Furthermore, with Rolls Royce
being owned by BMW, they can produce more cars at a faster pace, so this enables Rolls
Royce to export their products to more countries around the world due to BMW providing
them with more factories.
H&M both export and import, they export their clothing to their other branches around the
world like France, Russia and China. They import resources from 800 independent suppliers
around the world, mainly in Europe and Asia. Besides selling clothing, H&M also sell
perfumes and deodorant. Furthermore, they also provide a loyalty program where
customers receive points for shopping at H&M, in store or online. With this loyalty program,
customers can receive benefits like 25% discounts on their birthday and free online returns.
H&M operate in 74 countries including France, China, Italy and Poland making it a
multinational business. H&M own brands like Monki, Weekday and Arket. All these
businesses together help provide each other with ideas and products. One benefit for H&M
owning these businesses is that the more revenue the businesses make, the more it enables
H&M to become more successful, expand even more and reach wider audiences around the
world.
Chosen Market
Rolls Royce operate in developed economies such as America, Switzerland, Australia and
China just to name a few. An important factor that influences them to sell in these countries
is the economy. Countries that have a developed economy means that they are most likely
to purchase high priced products like luxury cars that Rolls Royce make. Due to countries
like America being very advanced financially, Rolls Royce use this to their advantage and
export their products to them as a way to benefit the company and maximise their sales.
Therefore, doing this helps the company gain revenue resulting in the business expanding
even more in the market. Another market that Rolls Royce operate in, is emerging
