Professional Documents
Culture Documents
Assignment
Assignment
by colin chen
General metrics
21,129 3,203 243 12 min 48 sec 24 min 38 sec
characters words sentences reading speaking
time time
98 64 19 45
Issues left Critical Advanced
Plagiarism
4 11
%
sources
Writing Issues
39 Engagement
39 Word choice
25 Correctness
5 Punctuation in compound/complex
sentences
2 Determiner use (a/an/the/this, etc.)
2 Wrong or missing prepositions
1 Faulty tense sequence
6 Misspelled words
2 Comma misuse within clauses
1 Pronoun use
1 Incorrect noun number
4 Closing punctuation
1 Confused words
Assignment
Contents
Introduction 2
Fast Adaptation & Digitization 2
The development speed of a market 2
Complete research of market 3
Take advantage of technology 3
Company Outline 4
Great potential in Sports Foot ware Industry 4
The role of E-Commerce in growth 4
Country comparison 5
Technological Factors 5
Social/Cultural Factors 6
Economic Factors 6
Legal Factors 6
Entry Mode Analysis 7
Reason of choice for each entry mode. 7
Export 7
Partnerships and Strategic Alliances 7
Recommendations 7
1. Due Diligence 7
2. Develop a localization strategy 8
3. Is your product ready for the market? 8
4. Organizational Readiness 8
5. Tax and Finance structure 8
Conclusion 8
References 9
Introduction
The UK's manufacturing SME sector has gone through an entire list of
modi cations made in the past couple of years. While many of these SMEs
continue to function in the informal sector, their operations have substantially
altered. Through demonetization and the shove from within the administration
to the digitization, SMEs have been adopted by the technological factors and
their processes. (Brouthers, 2004)
65
Nevertheless, there is still a great deal that must be done to make room for
international development or business growth. Several factors force a business
1
to expand into international markets. A couple of these factors are being
discussed in the later sections of this report.
Fast Adaptation & Digitization
Even though this has been one the escalating situation for SMEs, whether it is
necessary to shift towards digital manufacturing and business processes is
higher if the business wants to broaden their enterprise and pave their ways in
an international market.
Global Development or Trade of manufactured goods/services is appeared
throughout the globe as a lift up to expansion by emerging companies,
particularly in the production sector. This is high-value implementation and
2
simpler recognition of more current and more effective and ef cient
technologies as well as products into other markets. However, growth to foreign
markets makes it much easier said than done.
With the increasing mobile phone saturation and the internet providing access
to the international markets immediately, "Going International" has already
3
become much easier as it had been a decade or so ago. Small businesses need
to embrace the latest developments and digitization of their products and
services in such a way as to get access to worldwide platforms. (Huang, 2008)
The development speed of a market
Small and medium-sized enterprises are frequently known to take up their
rhythm, constructing development opportunities gradually and steadily over
the period. Nevertheless, industry veterans believe that this factor needs to be
changed. These small businesses have the potential to become more
4
competitive internationally, an SME in a nation needs to increase the
65
momentum to the marketplace through accelerating technological innovations
and new product development.
Because small businesses are easier to manage, expand, and adapt to new
changes, they must make responsiveness to their manufacturing procedures
and methods when the different product and business disruptions are
5
occurring very frequently and consumers have already begun claiming
immediate ful llment. (Chakrabarti, 2011)
A complete research of the market
An essential aspect while coquetry with the notion of enlarging the enterprise
6
has to take a deep look in the marketplace and develop the ability to
understand the market of choice. This is one way to understand the market and
7 8 9
develop pre-entry strategies by assessing the market trends. The most valid
approach is to complete market estimation in the form of industry, region,
sizing, and what kind of resources are available to the rm in the country of
choice. This helps companies with a thorough cost and bene t analysis, which
is basically how much return they will get with their market input. Such market
operating informally. New policies of the Spanish government have been very
14 15
impressive and invites many SMEs to operate in Spain. Spain is said to be the
fashion manufacturing hub for foot ware industry. (Brouthers, 2004)
Great potential in Sports Foot ware Industry
16
In 2019, the international big sports ware brands and their brand ambassadors
17 18
American Nike and the Spanish Adidas are prominent manufacturing
companies, backed by the high-level and the increasing popularity of coaches
19
including local customers. Nike shoe brand and Adidas remain also planning at
Spanish national and regional level through sponsoring soccer teams or
20
utilizing popular soccer players in their commercials as brand ambassadors.
(Elasri-Ejjaberi, 2020)
65
The role of E-Commerce in growth
Spain's consumers are becoming increasingly selecting e-commerce as the
preferred channel to sell and purchase the foot ware goods. Such development
has witnessed nearly every physical business to create an online presence
21
through eCommerce store to accommodate the contemporary habits of
shopping that the local customers have developed over some time. And ful ll
the demands of the brand and foot ware products. (AK, 2016)
Country comparison
Technological Factors
The footwear industry in Spain can be regarded as divided into several sectors;
some powerful corporations in every branch of the entire value chain. In broad
terms it may also be taken into account that the companies operating in Spain
are considered by a vast experience in the footwear market, extensive product
portfolio and specializing in various foot ware end-uses (from technical to
traditional footwear) and investing on latest equipment and the technological
apparatus may be regarded as extremely low. (Ho, 2014)
It can be taken into account that there exists an absence of with foot ware raw
materials to develop innovative new products. Local production of foot ware
22 23
raw material does not exist, and traditional are constantly imported. The
24,25
combined raw material could be developed through the main companies in
Spain and occasionally just on-demand. Depreciation of foot ware like high-
performance ingredients is primarily enclosed with local and international
(European) merchants, and the ingestion of traditional foot ware raw material is
coated with local and suppliers located in the Asian region. There are an
extensive number of extremely small/small and medium-sized enterprises and
26
are largely concentrated on traditional procedures; a couple of these
procedures are also regarded as several medium-sized Specializing in
65 27 28
technological completing procedures and technological development of
industrial raw material by implementing evolving technologies.
In Conclusion, is it mandatory to point out that various powerful corporations
exist in this smaller segment anticipated by their global presence and
revenues?
In the United Kingdom, notwithstanding the fact of an appropriate decline of
capacity that has been installed as well as the low level of funds, the
manufacturing industry trends indicate a strong ability to respond and adjust
its approach to safeguard the "made in Spain." The general perspective of the
statistical information shows which it was within the context of a very
29,30
tough international nancial and economic crisis, a crucial nationwide
organizational crisis, a remarkable reduction of credit, and the total lack of
31
serious domestic industrial strategies, British foot ware companies face
numerous structural transformation hurdles.
However, in many circumstances, they had succeeded in embracing suitable
solutions to be consistent with their business patterns. They possess used
Economic Factors
The GDP of each country differs in size, and per capita income is different in
both countries. This is where the UK can utilize the low costs of production in
the Spanish market. Per capita of the UK is 45.35k in dollars as of the statistics
of the year 2019. At the same time, Spain stands at 39.8k, which is way less
35
than the UK. This leads to a great low-cost production opportunity in Spain.
While looking at the UK and Spain's unemployment statistics, Spain has 13%
36
more unemployed adults than the UK. By producing foot ware products in the
Spanish market, the company will provide livelihood in the market and solve
employment problems in the market. Which ultimately leads to a better image.
37
While looking at the poverty states of both countries, we can easily determine
65 38
that the UK has the advantage. This means another reason forfor the Spanish
market's product with low costs and excess labor availability compared to the
UK market. (Sammut‐Bonnici, 2015)
Legal Factors
39
Spain has some very good and supportive laws for entrepreneurial development
and to attract FDI in the country. These legal initiatives help Spain attract more
international brands into the country and increase local production and utilize
these companies' maximum capacity.
Law 14/2013 of 27 September - permits entrepreneurial ventures in the country
and support many internationalization related initiatives for local and
international companies.
Law 26/2007, of 23 October - helps Environmentally responsible organizations
make decisions regarding their expansion. When organizations have the
security that their environmentally friendly initiatives are legally supported in
Spain, they'll prefer their Spain expansion.
Laws for Unfair competition – this guarantees that there will not get a single
chance of unfair competition or threats of counterfeit products in Spain.
(Puch, 1997)
Entry Mode Analysis
Entry mode for UK based foot ware manufacturing brand will be divided into
two phases.
One to three years – Export
Three years to onwards - Partnership and Strategic Alliance
Reason of choice for each entry mode.
Export – For the rst one to three years, we will have decided to go with an
export strategy where our products will be exported directly to Spanish
65 40
markets without any direct opening of of ces or manufacturing units in the
country. This is how the company will able to analyze the target market and
trends in the market and generate a customer base in the country. (Greenaway,
2007)
Partnerships and Strategic Alliances – The next step would be to create
partnerships with local players either in the form of outsourcing or strategic
alliance where the local player is entitled to share in the sales of manufactured
goods. By utilizing this mode, the enterprise will be able to enjoy the bene ts of
A communal costs, lower investment requirements as partners will also bring
41
their share of costs in the form of money or otherwise, risk reduction as local
players knows the market of consumers and suppliers, and be recognized as a
42
local player – once a local player is part of the production and selling process,
the brand becomes local, and people trust a brand more. (Cooper, 1993)
Recommendations
Based on the macro-environment analysis, it is easier to recognize the
strategies that will be best for the UK based foot ware manufacturer. All of the
facts and ndings support the decision to pursue in the Spanish market. The
reasons for expansion in Spain have been mentioned in much detail. Here are a
couple of recommendations to make it a success.
Due Diligence – It is a great way to understand the market and feasibility of
43
doing business in a new market. There are two main pillars of each business,
i.e., customers and suppliers. While going global, it is always good to
understand the customers, their needs, and demands, including their purchase
44
patterns and behaviors. Suppliers are also an important part of any business;
45
before going into a speci c country,, it is good to identify suppliers'
environment. That'll help the company decide where the raw material will come
from, what the warehousing looks like, and the material up to the mark and
65
meets its quality requirements?
Develop a localization strategy – one of the main reasons for failure in the
international market is the company's inability to localize their business,
manufacturing, and image. Only by localizing, a company can achieve business
expansion.
Is your product ready for the market? – Gather information to understand
46
whether or not the market is ready for your products or not. This information
helps in understanding if you need to change your product design or have
66
innovation in any process.
Organizational Readiness – is your organization ready to operate in the
country? Or your business practices meet the local employer market
requirements. Employees are your most important part of customer
satisfaction.
Tax and Finance structure – identify whether or not the tax and nancing
culture of your country of choice can support your business or not. This will
help you decide your tax bene ts and nancing decisions if you need any.
Conclusion
47
There comes a stage for every company to expand their business operations,
either locally or internationally. But before making the internationalization
67
decision, the company must understand the particles mentioned above. One of
the most important factors to understand the international market
environment is understanding the macro environment of the country of choice.
48
This will help you understand the country's political, economic, and legal
environment in the most ef cient way.
References
AK, F. a. G. R., 2016. Assessment of the Market Potential of Business to
65
Business E-Commerce (A Study Conducted in Indian Footwear Industry,
Calicut, Kerala). CONSUMERISM AND INFORMATION TECHNOLOGY, p. 78.
68
Brouthers, K. a. N. G., 2004. SME entry mode choice and performance: A
transaction cost perspective. Entrepreneurship theory and practice, 28(3), pp.
pp.229-247.
Chakrabarti, A. V. E. a. M. W., 2011. Business transformation in heterogeneous
49
environments: The impact of market development and rm strength on
retrenchment and growth recon guration. Global Strategy Journal, 1(1-2), pp.
66
pp.6-26.
Churchill, W., 2002. Social and cultural in uences.. s.l.: External In uences.
Cooper, M., a. G. J., 1993. Building good business relationships: more than just
partnering or strategic alliances?. International Journal of Physical Distribution
& Logistics Management.
69 50
Elasri-Ejjaberi, A. A.-C. P. a. T.-I. X., 2020. An Analysis of the Determinants of
51 52
Sport Expenditure in Sports Centers in Spain.. Sustainability, 12(23), p.
p.10206.
69
65
73
7. develop → formulate Word choice Engagement
66
75
31. domestic severe Word choice Engagement
67
60. ,, Comma misuse within clauses Correctness
70
61. special → particular Word choice Engagement
65. Nevertheless, there is still a great Radical Sanctuary: Faith Groups Originality
deal that Rally Around Migrant Youth
65
73 https://truthout.org/articles/radic
al-sanctuary-faith-groups-rally-
around-migrant-youth/
68
66. process. Organizational Readiness – STUDENT LEADER LEARNING Originality
is your organization ready to OUTCOMES (S
https://sllo.tamu.edu/wp-
content/uploads/2018/07/Choosi
ng-a-Rubric.doc
6668.
75 SME entry mode choice and SME Entry Mode Choice and Originality
performance: A transaction cost Performance: A Transaction Cost
perspective. ...
https://journals.sagepub.com/doi/
10.1111/j.1540-
6520.2004.00041.x
71. The role of clustering in rural The role of clustering in rural Originality
industrialization: A case study of the industrialization: A case ...
footwear industry in Wenzhou. https://www.sciencedirect.com/s
cience/article/pii/S1043951X0700
67 0636
70
72. SME exibility and the role of SME Flexibility and the Role of Originality
information systems. Small Business Information Systems ...
Economics, 11 https://link.springer.com/article/1
71 0.1023/A:1007912714741
75. 1997. Are there any special features Are there any special features in Originality
in the Spanish business cycle?.. the Spanish business cycles?
Investigaciones economicas, https://ideas.repec.org/p/fda/fda
74
ddt/9706.html
66
75
69