International business management Essay Example | Topics and Well Written Essays - 2500 words

International business management - Essay Example . For executives and entrepreneurs, the significance appears remarkably apparent: markets are rapidly being borderless; schemes that fail to recognize the integration of the global market place are shortsighted and misguided (Root, 1994, p. 27). Firms that maneuver in international marketplaces require to come up with the most critical resolutions while selecting the most appropriate method of entrance into a country. Arguably, Westhead et al (2002, p. 123) notes that organizations must decide on the most fitting entry strategy in order to optimize on resources. Globalization, as described by Wood and Robertson (2004, p. 143), facilitates and necessitates businesses to move to other international markets. However, before deciding on the entry mode, it is essential to understand the country’s economic, social and political institutions. ... 24-26). There exist diverse strategies of entry into an overseas market. Every strategy has its own disadvantages and advantages. Nonetheless, each company and organization selects a suitable mode of entry depending on the company background, temperament of the company, tactical aims over and above the resources available. In numerous instances, while deciding on the appropriate mode of entry a company experiences many problems and challenges such as environmental, safety, packaging, patents, labeling, copyrights and trademarks (Cateora & Graham, 2002, p. 124). This paper delineates the most appropriate foreign entry strategy for Coffee product. In addition, it attempts to clarify issues arising in the international market selection for the product. Entry Mode Root (1994) describes a market entry strategy as the planned method of delivering and distributing goods and services to a target market (p. 24). A market entry strategy maps out how an organization sells, delivers and distribu te its products in a foreign country. Westhead et al (2002, p. 65) notes that when an organization chooses to explore an international market, the selection of the most appropriate strategy is resolved by the company’s development stratagem. The chief objective of each firm is to institute itself in the international marketplace (Cateora & Graham, 2002, p. 134). For this reason, Westhead et al (2002, p. 145) notes that the procedure of deciding on the most appropriate entry mode necessitates instituting an effectual international promotion stratagem to point out the international chances, discover reserves and potentialities and make use of nucleus capabilities to adopt the international stratagems. The resolution on how to penetrate an overseas market has momentous effect on

Retail Industry in the UK for the Last Quarter of 2011 Essay

Retail Industry in the UK for the Last Quarter of 2011 - Essay Example The UK retail sector contributes 8% towards the country’s GDP which includes the UK retailers going overseas and expansion of e-commerce beyond the borders of the United Kingdom (Farfan, 2011). However, retailers in the UK face a huge challenge as they struggle to cope with the sudden deterioration in consumer demand and willingness to purchase. This report presents an in-depth analysis of the key factors that influence the development of the retail sector while evaluating which sectors offer the most potential. 2. Overview of the retail sector 2.1 Top retailers - UK The top four retailers in the UK include Tesco, Asda, Morrisons and Sainsbury and together they account for about 80% of the retail food sales in the UK (Farfan, 2011). Even though recession impacted the individual retail chains, there were not many substantial changes in the largest retail UK chains. The largest retail chains held their ranking order because there were no changes observed. Two major changes that occurred in 2011 in the UK retailing industry were that the apparel retailer Arcadia group and department store Debenhams lost their spots in the World’s largest retailing list completely. ... 2.2 Causes of decline in consumer shopping The retail sector witnessed a healthy start to 2011 as figures showed that sales on high street were up 9% year-on-year which provided a new boost to the British mid-market retailers (Sillitoe, 2011). Fashion sales, non-fashion trading and homeware sales had all witnessed growth in sales. However, the economic and survey data suggest a slowdown in activity, which poses a challenge for the UK retail sector. Following the recession the economic growth has been slow which reflects the weak consumer sector and the rising unemployment. The economy is expected to grow by 2.0% in 2012 but the retail sector continues to be grim (Retail Economics, 2011). Consumer spending had fallen for four consecutive quarters before September 2011. Consumer spending in the second quarter of 2011 declined by 1.7% compared with the same period last year. Real disposable incomes have been affected due to high levels of inflation and low earnings growth. Besides, taxe s have been imposed and benefits cut, which further affects the household disposable income. Fears about job security and personal finances have contributed to low consumer spending. The consumer spending is expected to slow down further as consumer debt rises, assisted by rising interest rates and inflation (Prospects, 2012) and stagnant wage growth and rising unemployment (Leach, 2011). House prices and job security also affect how people shop. Consumer confidence has waned because people will shop only if they feel optimistic about the situation. When they lack confidence in their own financial security, naturally the spending will be reduced. There has been a slow growth in the retail sector as the operating costs and the cost of credit have risen. The