Tapping into International Markets: Analyzing Opportunities and Threats for SMEs

1. Analyse the opportunities and threats for firms exposed to an increasingly globalised environment.

2. Illustrate the advantages of trading blocks for firms

3. Determine the importing and exporting process and the practicalities involved.

4 Evaluate ways SMEs can tap into international markets.

Imagine that, after completing your HND in Business, you are working for either Green Sheep Group [an in-class case study] or another SME of your choice or your own entrepreneurial business.

You have decided to respond to the UK Government’s call to action when it said that, “We will strengthen our historic trading ties, as we leave the EU, whilst boosting UK competitiveness by tapping wider global markets… We want…[to] broaden our horizons to embrace the huge opportunities in the rising economies of the future.” (Foreign Secretary’s Introduction to the Queen’s Speech, 13th January 2020).

As your organisation gives you the freedom to do so, you decide to start work on (a) a practical plan for how your organisation actually could tap into new and international markets; and (b) a strategic assessment to test the business case for such opportunities.

 

Activity 1

The first activity that follows from the above is for you to determine the importing and exporting process; and evaluate ways Small and Medium Enterprises (SMEs) can tap into international markets.

You should aim to develop a set of explanations and recommendations that are strong enough for you to present in a written report to your senior management in two separate sections.

Section 1A
In order to achieve Section 1A effectively, you can;

• evaluate different methods SMEs can use to tap into various markets with application to a small business or entrepreneurial venture, making valid recommendations; and

• make recommendations on the implementation of these methods for your organisation, justifying your recommendations with supporting evidence and critical evaluation. To be regarded as at least satisfactory, your report must as a minimum;

• evaluate various different methods by which SMEs can tap into international markets; and

• compare and contrast these methods; assessing the pros and cons of each one. Section 1B Your Section 1B will be evaluated as highly successful if you can;

• make recommendations for the use of different approaches to the import/ export process; and 

• apply the appropriate import/ export process to your organisation.

For your work to reach the basic standard expected, it will need to;

• explain the differences between the import and export of goods and services; in addition

• determine the advantages and disadvantages of importing and exporting; and finally

• determine how to secure a deal that involves importing or exporting.

 

Activity 2

Your second activity is to illustrate the advantages of trading blocks for firms; and analyse the opportunities and threats for firms exposed to an increasingly globalised environment. 

You will do this by preparing a business case document that is strong enough to hand in to your senior management again in two separate sections.

 

Section 2A
In order to do receive a strong evaluation, you can;

• evaluate international trading blocks and agreements in terms of the advantages they can bring and their implications for SMEs. Meanwhile, for this business case to be considered at least satisfactory, you must;

• investigate the various tariff and non-tariff barriers that exist in the international trading environment; and explain them to someone less informed than you on the subject; 

• investigate international trading blocks and agreements; and determine, set out and analyse their advantages; and, if you can,

Section 2B
Your business case document will also need a section in which you can;

• critically evaluate how SMEs can take advantage of international opportunities and overcome barriers; and

• analyse the global business environment in which SMEs operate, basing your analysis on suitable evidence and giving specific examples; and finally

• critically analyse the implications of the threats and opportunities that face SMEs in a global business environment.

For your work to reach the basic standard expected by the client, it will need to;

• analyse the threats and opportunities that face SMEs in a global business environment that is increasingly competitive; and 

• explain the global business environment in which small and entrepreneurial businesses operate.