Individual Notes and Report

European Economic Community (EEC)

Introduction:

The European Economic Community is a pre-eminent specimen for a free trade area or a customs union. The members of the nations of the free trade areas have taken initiative to trade freely among themselves. Moreover they have even planned to take the initiative of starting to trade without hurdles with other nations too where the capital and the labor services would move freely from one country to another without any barriers. European Economic Community was signed on March 25, 1957.This removed all the barriers in the movement of goods, services and laborite has also eliminated the prohibition of private policies and agreements and external trade policies. This community expanded in 1970s and 80s.Other countries like Denmark, Ireland and United Kingdom were also admitted it in 1973.Portugal was admitted in this community in 1981 and Spain in 1986.External trade policies of this community It created pressure on common foreign trade policies. It also facilitated the regular meetings of foreign ministers from each country. A development assistance package was created in 1975 called Loma Assistance. This developed trade in African, Pacific and Caribbean countries. This gave rise to European monetary system in1979.(Rushdi and Ba-rukab ,2017)

Single European Act: (SEA)

The scope of EEC expanded in1987 when Single European Act (SEA) was established on 1 July 1987.It helped to develop the economically depressed areas. Because of this act it became easy to raise funds for Social and regional programs .It also incorporated the protection of environment. .It also fixed timetables for completion of the common market. It was modified in 1992 to facilitate the trade of the common market.SEA also introduced qualified voting for all legislations. The main objective of the single European act is to open a single European market accessible to all easily and without hurdles.

The Maastricht treaty

This treaty was signed on 7th February 1992 which created European Union..This treaty was used to meet the resistance in some countries. France also approved this treaty in September 1992.In 1995 Sweden, Austria and Finland also joined. This led to the enlargement of EEC. In 1997 treaty of Amsterdam was signed and it revised the policies of the community. This helped a lot to remove sex discrimination, improved working conditions and promotions, proper social protection for the people.

Treaty of Nice

The second treaty was signed in 2001 called the treaty of Nice. It came into force in 1 February 2003.It reformed the community totally It brought negotiation in the admission of new countries from Eastern Europe. A commission was set for the community with a member count of 27.After cold war many countries from central and Western Europe applied for the membership. They were allowed to participate in some components of economic integration because of their lack of economic development. In 2004 this community admitted ten countries and widened the scope for foreign trade.

NOTE 2

Internationalization of the MNC’s and challenges faced by them:

The company having offices and factories in more than one country is called MNCs. All these companies have one head office or headquarter from which the business is controlled. Outsourcing of business is done when the company gets labor at cheap rate in the foreign countries .MNCs also helps to develop wages in poor and developing countries. It opens opportunities to skilled labor. This also helps to create a good will to the firm. These companies are mostly consumer based and well established. By going international these companies become politically and economically stable. Getting an easy access of their business and trading throughout the world easily

Internationalization:

Design and development of product that enables localization of target audience that may vary in culture, language and region is called internationalization it also refers to economic activities more than in one country .It takes this business outside the boundary of the country. It increases involvement of the enterprise in the international market; due increased means of communication and transport technologies it has become common now a day. Internationalization has made may business grow in their financial outcome and got an acknowledgement if the services and the products are worth its price.

Reasons for internationalization:

There are mainly two factors which companies go international and expand their business globally. The factors responsible are the Push factor and pull factor .In push factor companies go international to work globally and serve the markets all around the world. MNC s mainly internationalizes the business to develop the profit margin and overcome the losses caused by local economic, political and technical issues (Dang et al.2020). It grants independence from the local market. Company gets access in the broader market. It also helps to develop the company's image. Because of internationalization company’s production capacity also increases. It also enhances productive efficiency. MNCs may buy local companies or start production with them jointly. On the other hand the pull factor includes the market size, social and financial conditions and the features related to the international markets (Madanoglu et al.2017). It could be said that the push factor and the pull factor go hand in hand and work accordingly for the proper functioning of the globalization.

Potential growth:

Internationalization also helps in potential growth if a business suddenly falls flat it is better to international to overcome the losses .It also gives more advantages as the competitors are less. The business gains its identity again. It also helps to create worldwide customers and ports. Some firms automatically become international as the neighboring countries are close.

Government reasons:

In some countries government also give financial help for internationalization .Some incentives are also offered for internationalization of the business. it also helps companies as the barriers in the international market are decreased and companies are also less affected by external factors.(Vettorel , 2019)

Saturated markets:

In domestic markets because of huge competition and habits of people saturation is generated. This leads to the investment and research in the new markets. It is also due to some producers producing only specialized consumer goods.

Challenges of internationalization

Whenever a company goes international their main task is to hire local talent and create the right brand according to the needs of local people. The hired people should have a good understanding of the culture. People moving abroad also get the advantage of low taxation and enjoying different lifestyles.

Cultural nuisance:

Due to cultural diversity it is difficult to focus on certain goals. As most of the time and money is wasted in adjusting with new culture. Leaders have to use their talents to overcome the conflicting forces. These conflicts should be handled according to the local law .Therefore it is necessary to have the knowledge of local law as well.(Tsaplin and Pozdeeva ,2017)

Deep research:

Considering all the above factor it shows that it is the demand of time to global for any business as it opens wide opportunities to the business. But while going international many challenges are there. This requires a deep research in international business and issues of globalization. Different research methodologies and marketing strategies have to be adopted. Corporate and social responsibilities, different business strategies and power relations must be well understood.

Money Count:

The most important part is salary of hired people. In international business it is very important to search banks which will offer services in multiple countries. It is also important to have people who can explain market practices in foreign countries. This will help to earn profits according to the marketing strategies. (Yang m. 2018)

Keep moving:

Rapidly changing business strategies has made an immense difference in the consumer behaviour.The habits and chives of the consumer are rapidly changing due to globalization. The taste and choices of people are not as before. This is the main challenge in internationalization. Companies have to keep on moving or changing the products according to the consumer needs. Otherwise it will become very difficult to survive in the market.

Risky ventures:

Companies also face fluctuations in the currency while doing business on the international level..They have to also keep themselves away from late payments and non payments. As overseas customer will take more time to receive goods so payments will also be late.

International company structure:

According to Lasserre.(2017), while going global it is very necessary to have international company structure. It is very important to decide whether the company will work from central headquarter or have offices locally. Example .Coca cola runs the business from head quarters. The access power of the head quarters should be strong and strict to keep hold of all the franchises under it.

Foreign laws and regulations:

The company should be aware of tax implications, trading laws and legal requirements. This will help the organization to be successful in the international trade. Proper knowledge helps in the execution process of the trading without any hindrance.

International accounting:

Accounting in the international market is really challenging .It Also impacts tax liability. Different tax systems, rates and compliance are the challenges for the international business (Alva H and Bhat S,2018). Hence data analysis and relying on the innovative technologies would be helpful and time saving.

Cost calculation and global pricing:

Deciding the cost of product while working internationally is very important. It should be suitable in the competition as well as enable to earn profit margins to the business.

Communication difficulties:

Good communication between different cultures is really a big challenge in international business. It is also important to develop good communication skills to make effective communication with the clients and customers. It will open new opportunities to the business. If communication is effective it helps to grow the business at all levels.

Criticality in international business:

Doing business on international level is not easy. It is always affected by social, economic and environmental factors of different countries, International trade policies, political and technical changes all over the world are major concerns (Owusu and Sarkodie.2016).Highly qualified people from different cultures and backgrounds are needed to do the research on international level. High remuneration in such a staff is a big concern. Issues of production according to the demand are also a major concern. Issues of globalization also affect the business to a great extent. Because of digital communication international business developed fast during last 25years.Export of product in foreign markets and standardization are the main concerns. It should be able to balance local responses with the global integration Economies of scale are .also created through the international market. The main aim of the companies working on international market is to reduce cost. These companies get subsidies from the head quarter. These companies implement the decisions by the head quarter. All the activities of these MNCs are maintained at the headquarter. Most of the MNCs are from developed countries but some MNCs are coming from developing countries also. This is a remarkable change during the last few decades. Due to emerging technologies and globalization small industries are also going international to develop the business.

Advantages of MNCs:

MNCs offer better work conditions and employment than domestic firms. Organizations get to know more and learn from the competitors new techniques for trading. They create the name of the company in the international market and help to earn goodwill for the firm with quality service delivery and focused goal of satisfying the international markets. These companies help poor and developing countries by providing good employment opportunities to them and involving many people with talents to get innovative ideas about the business technologies. These companies help to produce demand for highly paid jobs and eradicate unemployment globally. MNCs do not exploit workers and with special training try to retain their staff for a longer period of time and get dedicated work from their end. Innovations occur due to investments by multinational companies as researches tell that most of the multinational companies contribute about 5 to 10 percent yearly on the research and development process to upgrade the level of innovations in the business. It has been seen that the multinational organizations provides cultural awareness as organizations from different cultures come in one platform to do trading globally.

INDIVIDUAL REPORT

Introduction:

With the globalization and the growth of all the companies around the world there has been a wider chance for many multinational companies to grow internationally. It has been seen that many MNC of the UK have grown their business globally. However many striving organizations are trying to spread their best to reach the global market (Brannen et al.2017). The review would bring into focus the way Baltimore technologies, a well established MNC of the UK, takes the measures to reach the markets of South Korea. The study would also focus on the analysis of Baltimore technologies in the domestic market and the strategy that the organization would adapt to internationalize. The mode of the entry and the challenges it would come across to get acknowledgement, with the leadership qualities that it would use to make entry in the international market.

Analysis of the domestic market:

Talking of the Baltimore technologies, a well settled MNC of the UK is an internet securities firm that has been serving the market with its fascinating services (Weinstein.2018). It has served the domestic market and at the same time established its identities with its efficacy. The organization has grown rapidly with the guidance of the leader Rooney and got acquisition for its magnificent services (The Irish Times. 2020). The well to do corporation has grown in the domestic market with its innovative technology of e-commerce and digital support to satisfy its trusted customers in the period of pandemic globally. It is seen that the UK based organization has made its position in the domestic market in perspectives of social, economical, technological, political, environmental and legal aspects.

Strategy to internationalize:

The organization of Baltimore technologies has grown rapidly and now decides to set its root in Korea. The strategies that it would use to internationalize its market in Korea would focus on a few strategies and factors. Likewise: Market entry strategy: This strategy focuses on targeting the international market and getting a proper positioning of the market internationally. For a proper entry in the international market the execution of segmenting, targeting and positioning strategy (Katsikeas et al.2019). Target market strategies: The strategy of targeting the market helps to know the market where the product or the service is to be launched. The data collected through the survey aids in the selection of the right market to be entered (McDaniel and Gates.2018). Timing strategy: Time is a vital factor as it helps the MNC to know the best suitable schedule to enter the market and get acknowledgement. Allocation strategy: The allocation strategy sets the target for the MNC in the international market and rebalances it when necessary. This strategy has the potential to place the MNC in an international market with a strong position as a lot of surveys and investigation is done before execution of this strategy (Oboh and Ajibolade.2017). Coordination strategy: This strategy helps the MNC to get acquainted with the international market and helps it to get coordinated with the foreign market. Get a close look at the market and gather knowledge of how their products and services would be accepted in the international market (Lasserre.2017). Selected country environmental analysis: The MNC Baltimore technologies, a company that has been providing internet securities efficiently in many countries. The UK based company has very magnificently performed with good services and made their customers happy and satisfied. Now Baltimore Technologies has selected the country of South Korea to stretch its business and get acknowledgement by serving them with quality services (Wilkerson.2020). The environmental analysis of South Korea is to be analyzed by the PESTLE analysis of the country.

Mode of entry, challenges it may find in the country and possible solutions:

The modes of entry that Baltimore Technology uses are very effective in terms of managing international business. However the challenges faced and talking of the solutions help the organization to boost up the business and make it acknowledged within all globally.

Leadership qualities that support the market entry:

Market entry of the MNC is a very risky and time taking process so a proper leadership quality for giving support in the international market entry. The following steps to be taken are as follows:

Taking decision with speed and conviction: The decision taking for market entry would be speedy and convincing so that competition could be overcome easily. The leader should take prompt action to take entry in the international market (Guo et al.2017). Engage for impact: The proper engagement of all the required people in the business and proper dedication and engagement could bring positive impact. The leaders act in this part actively. The ability to adapt: The leadership quality to adapt to the new market helps the industry to penetrate in the new market easily (Schoemaker et al.2018). Reliability: The leadership quality to bring reliability in the business helps in the enhancement of the business.

Conclusion

The study revolves around the study of Baltimore technologies to enter the international markets of South Korea. The ways by which the organization acts and adapts the new technologies to enter the international market. It also tells about the analysis of the marketing, the significance of the markets that the organization would enter. Finally it tells about the leadership a quality that helps to support the entry in the international market.

REFLECTIVE ESSAY:

Introduction:

In the whole study I have evaluated a few points and learning’s that would help me to improve in the ways of adapting to the new market. Furthermore it would help me to learn the strategies that could be used to enter the new market with innovative technologies and get acknowledgement. The use of the Gibbs Reflection cycle helps in the learning process of the whole study (Gibbs et al.2017). Here in the study it tells about how Baltimore Technologies gets inside the market of South Korea and the challenges that it faces in every step and the ways that it gets accustomed to diminish it from the root. I have learnt a lot about the ways that the company uses to get in the international market and evaluated a few ways through the action plan to help improve in the ways of execution of the processes to get acquainted in a new market smoothly.

Description:

This stage deals with the description of the study of the methods by which i could get an idea about the methods adapted to enter the international market. In this review the Baltimore Technologies in the UK, a MNC gets its access into the international market of South Korea. The environment that the new market would have and the problems that the organization would face are also focused lights on.

Feelings:

I have got a feeling of anxiety while reading through the process as it is a very competitive market and with the globalization and the outbreak of the pandemic it has been difficult for organizations to penetrate the market and get through. The proper planning and execution according to me is the best way that an organization can grab a hold in the new international market.

Evaluation:

The evaluation and investigation of the whole procedure of execution to present in the international market takes a lot of planning and tactics. According to me the good thing that came out of this experience is the globalization and reaching the international market and making a place in it. However the negative impact is lack of data analysis about the new market could make an issue in the persistence of the organization in the new market.

Analysis:

The analysis could bring forth into light many new ways that could be learnt to get into a new market. The ways, by which the existing company could perform even better, it could get clear ideas the organizations adopt to be popular and required by the customers in the new market (Tumbas et al.2017). The better ways that would make the companies acceptable and knowledgeable about the international market. I could even make my own analysis that would be required to change the existing process to perform even actively and successfully in penetrating the global market.

Conclusion

The new innovative technologies have helped in improving the functioning of the marketing used in the present days to hold the market race (Haider et al.2017). Nevertheless it is observed that making proper execution and stimulation of the plans would be helpful in making the whole function more easy and acceptable. The leadership qualities that help to understand and monitor the ways the organization functions could also be developed by proper execution and planning. I have jotted down the few ways by which the leadership quality could be restored with more efficacies.

Action plan:

The proper action plan according to me is the most effective way to execute the business to earn profitability. The risk factors could be analyzed and then working on it could be easier and more timesaving (Nayak and Waterson.2017). To find out the issues that is coming as issues in the process and procedures to reduce it and sometimes eradicate it. I think the leaders are the pivot of the organizations who take the responsibility to make the things executed in a proper and effective way.

Marketing objectives: Entrance of the Baltimore Technologies in South Korean market

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