Global Business Aspects Assignment Sample

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Introduction

Global business aspect refers to the factors and elements that affect the business in international market and to become successful, it is important for the business to consider these aspects. The report is based on Sainsbury that is going to expand its business internationally i.e. within USA market. The report will outline about organization and its current market. In addition, it will also discuss intellectual property rights that can be optimised by the organisation in global economy. Moreover, it will cover the way business functions are managed in international markets. The report will also evaluate entry strategies for XYZ to enter international markets. It will also highlight an appropriate global strategy for the local company that can be used for global working.

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MAIN BODY

Company`s introduction and its current market

Sainsbury is one of the major retail organization of UK and it was founded in 1869. The organization offers several products such as delicious and quality food products, grocery items, clothing, merchandise, homeware and so more. The organization operates its business within the UK via different formats including supermarkets, convenience stores, Argos banners and so more (Xiao, Chen, and Yu, 2021). The organization offer its products at competitive prices ultimately allows the organization to grab new customers, increase market share and maximise its profits.

Global Business Aspects Assignment Sample

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Moreover, the current market in which Sainsbury operates is highly competitive due to presence of large rivals such as Tesco, Morrison, Aldi, ASDA and so more. Apart from this, the operating profit of the organization is £1,036m that is increase 7.2% (Sainsbury. 2025). The increasing competition enables the Sainsbury to expand its business to international boundaries of USA with an aim of increasing market share and profitability.

Intellectual Property Rights in globalised economy

Intellectual Property (IP) right is defined as a right that is provided to individual over the creations of their minds. It is generally furnish individual or creator with the exclusive right over use of the creation for a particular period of time. World Trade Organisation (WTO) plays an important role in international trade and especially in protecting the intellectual property right of business. WTO set standards to protect the interest of IP holders in international market (Karttunen, 2020). In context of entering into USA market, it is important for the organization to protect the business in international markets through different intellectual property rights, the company can protect themselves via using IPR such as:

• Patent: It is an intellectual property right that provides sole right to the holder to make, optimize and sell the invention as well as prevent others from optimizing it or imitate it. According to the patent, Sainsbury is able to restrict the third party from optimizing its innovation. The patent provides protection to the company for a particular point of time within the USA market. The organization can renew the patient right via renew it.
• Trademark: The IPR of trademark is concern with protecting the name, symbol, sign, combination of word that offers identity to the goods made by the organisation (Abbott et al, 2024). The trademark restricts the other organisation by using the same name and symbol as a result enables the organisation to distinguish such goods from those of other parties.
• Copyright: Copyright is define as the right to “not copy”. It prohibits the unauthorised optimisation of content or business idea of any organisation (Buzova and Karelina, 2021). The copyright a IPR restricts the author businesses to copy the innovation of business idea of Sainsbury in USA as a result it is quite effective for doing business in international market.

In accordance with the different intellectual property right, it is important for the Sainsbury to optimize patent and trademark in USA market to protect its business. The patent allows the organisation an exclusive right to manufacture and sell products while preventing the level of competition in USA market, allows the company to establish a good and sound position in market. The patent also allows Sainsbury to attract investors and funding in USA market as investor consider patent as a sign that business is capable of innovation hence greater prospects for growth and profitability (Stim, 2024). Apart from this, the optimisation of trademark enables Sainsbury to prevent the other from utilising similar name, sign and symbol in USA market that may confuse the consumer between the two brands. It also allows the organisation to increase brand visibility and awareness leads to greater customer loyalty.

Business functions in international context

Business function plays a crucial role in managing company`s function and ensuring that company runs its operation in proper as well as efficient manner (Weatherly and Otter, 2014). Sainsbury is required to use business management function to proficiently expand and conduct its business in the USA market. In context of Sainsbury expansion in USA, one of the main business function is concern with operations i.e. production and delivery of goods and services to the final customers. To manage the business function company effectively plan about the demand of goods in USA market and accordingly produce and deliver the goods and services to satisfy the needs of customers. Another important business function is marketing, the organisation requires to market and promote its product and services in USA market to grab customer attention and gain competitive advantage. In context of effectively manage the marketing business function, the organisation will plan different marketing practices such as social media, traditional and digital. Also, referring to organising business function company will allocate resources including physical, financial and human (Dal Mas et al, 2023). Also, company will recruit appropriate marketing steps and guide them in right direction to attract large number of customers in USA market. At last, referring to controlling actual performance is compared with set standards to find deviation and makes changes accordingly.

Moreover, one of the important business functions for Sainsbury is human resource. The function is concern with hiring right people at right job in right time. Sainsbury requires hiring skilled and talented people in USA market to effectively perform its business operations in complex and dynamic environment. According to the function, Sainsbury effectively plan procedures of recruitment, training and compensation to grab and attract skilled workforce. The HR business function allows the organization to recruit right number of people within the organisation to ensure smooth business operations and competitive advantage. In addition, the foremost important business function is finance The function deals with financial part of the business such as preparing budgets, financial reports, optimizing fund, sourcing finance from different sources, managing cash flow and so more (Alotaibi et al, 2023). According to the business function, at the time of expanding the company in USA, the function includes planning of required budget for operation and then effectively organises and allocated the fund in different activities to ensure smooth operation. The financial function is quite crucial to remain competitive in USA market, it allows the business to efficiently funded its all operation without any shortage. Hence, within USA, the organization can manage its business function via effective planning, organising, staffing, directing and controlling leads to better attainment of organisational goals.

Impact of national cultures in international markets

The national culture of an organisation has a significant influence in international market. In global context, each country has difference with other countries in terms of language culture, ethics, customer base, consumer preference needs and so more (Worthington, Britton and Thompson, 2018). However, there are some of similarities as well between two countries in terms of discipline, norms and values and so more. For instance, the culture of UK is considered as more flexible as focus given on work-life balance. On the other hand, USA culture is more work focused. Hence, the national culture of UK influence the Sainsbury in international market to offer more flexibility to the workforce to perform the task, it leads to increase productivity of employees and profits of organization in USA market. However, the work-centred nature within the USA market makes onerous from new recruited of USA to effectively collaborate with UK manpower, creates problem in terms of smooth business operations. In addition, within UK and USA there is difference in language and communication, people at both countries used English but there is a difference in pronunciation. Hence, the language of UK adversely impacts the people of Sainsbury to deals with workforce recruited within USA as a result it sometimes results in creation of misunderstanding, leads to significantly impacts organisation performance and productivity.

Moreover, within the national culture of Sainsbury, there is high preference of consumers in regards to in-store shopping. It is identified that in UK, there is culture for shopping in-store, as a result it leads to motivate the organisation to also focus on enhancing in-store shopping experience for customers, results in grabbing greater customer attention. The culture allows the organisation to not only emphasise on online mode of business but also offline. This practice allows the Sainsbury to enhance customer satisfaction and experience with the brand in new market. Apart from this, within UK culture there is high preference given to professionalism in terms of adhering rules and regulation as well as conducting the business in fair and ethical manner (Abdelmoety, Aboul-Dahab and Agag, 2022.). This kind of culture enables the Sainsbury to conduct its business operation in international market in professional manner. According to this, Sainsbury focuses on compliance with the rules, regulation and laws such as employment, consumer protection, advertising as well as ensures offering fair and ethical environment for employees to perform their task. It helps in attain good brand image and success in international market.

International Entry Strategies

The international entry strategy refers to a practice or a way to enter into a international market. In reference with expansion of business in USA market, Sainsbury can optimise different kinds of entry strategies, it is an under:

• Joint Venture: It is one of the most effective international entry strategy, it is concern with collaborating with an local company in an expanding market (International Market Entry Strategies, 2024). For instance, Sainsbury can enter in USA market by partnering with a local organisation such as Walmart. The strategy allows the business to leverage the local knowledge while sharing resources, risks, profits, losses in international market (Youssef and Teng, 2023). The strategy is quite beneficial to increase the customer base and market share in the new market.
• Acquisition: The strategy is concern with acquiring or purchasing an existing organization in foreign market, it allows the business to gain market access as well as establish brand presence in ease manner. It is consider as a rapid market entry strategy as company get set infrastructure, resources and customer base correspondingly significantly increase potential for succession of the business.
• Franchising: It is a foreign entry mode that includes offering franchise of company to group or other company in exchange of fees with the right to successfully manage a branch on behalf of company (Stanković, 2021). The entry mode is quite effective for Sainsbury to enter within USA market. It offers a way to company to maximise it profit while having an indirect management approach.
• Greenfield Investment: It is considered as one of the complex foreign entry strategy, it includes investment for purchasing a land as well as resources and hiring of appropriate staff to expand the business in international market. The international market entry strategy is highly costlier for the organization as it requires high amount of finance (Duque‐Grisales et al, 2020). In context to this, it is important for the Sainsbury to effectively compliance with the local regulations, consumer preference, health and safety rules to ensure successful entry.

Hence, joint venture is considered as one of the most effective and useful foreign entry strategy for Sainsbury to enter in USA market in proficient manner. The entry strategy is effective as it is considered as one of the convenient method as it allows Sainsbury to effectively optimize resources, technology, knowledge of partner company to effectively establish its presence in USA market. In addition, it allows the organisation to serve the existing customer base as a result allows in increase customer loyalty as well as market share. Moreover, joint venture enables the organisation to share risk if the venture may face potential losses, hence it is an cost-effective strategy for Sainsbury to enter in USA market.

Appropriate global strategies in international market

Global strategy refers to an strategic move that organisation plan to expand its business in global market. Global strategy plays an crucial role in increasing sales, assessing new resources, lowering labour cost, bringing economies of scale, diversifying risks and so more. Sainsbury with an aim of expanding its business in USA market, can optimise different kinds of global strategies such as:

• Standardisation: The standardisation strategy is concern with expanding the business in global market by using the strategy of selling homogenous or similar products across all markets where organisation operates its business (Meyer, Li and Brouthers, 2023). For instance, Sainsbury sales same products in USA that it sales in UK market. The global strategy is featured by keeping centralised control instead of delegating the decisions to local markets. The standardisation strategy allows Sainsbury to bring economies of scale as homogenous production, distribution and marketing results in saving cost. In addition, offering similar products in each market results in enhancing brand image as well as loyalty of customer, results in gaining competitive edge in each kind of market.
• International Strategy: The international global strategy is concern with importing as well as exporting of products. According to the strategy, business requires to partnering with the foreign suppliers and selling products across the globe by keeping the physical premise within the home country (Demir et al, 2021). The international strategy allows Sainsbury to emphasise on UK market i.e. home country while doing some operations overseas.
• Multinational global strategy: According to the strategy, a organisation can operate in number of countries by optimising customised strategies for each local market. Based on the strategy, organisation can adopt product strategy, marketing, distribution, pricing strategy etc according to the preference of customers and competitive landscape. In reference with the strategy, the organisation have a physical business presence in each country as a result allows the business to efficiently cater the need of each customer at different locations.

Standardisation global strategy is consider as one of the best strategy for the Sainsbury to effectively and efficiently expand into markets of USA. According to the strategy, Sainsbury offers homogenous or standardised products within the USA market, production of goods and services in large amount allows the organisation to get economies of scale. In addition, the standardised strategy allows the organisation to protect its identity in local market, leads to better brand awareness.

CONCLUSION

To sum up all, it has been articulated that global aspects plays an important role in expansion of business internationally. The report outlined that Sainsbury with its retail outlet going to expand in USA market. The report discussed that to protect company`s innovation patent is used while restricting other from using sign, symbol and name of company, trademark is optimised.In international market, organisation perform marketing, human resource and finance function for effective management of business. In addition, it is identified that joint venture is one of best strategy for Sainsbury to expand in USA market. The company can also use standardised, international and multinational strategy as an global strategy.

REFERENCES

Books and Journals

• Abbott, F.M., Cottier, T., Gurry, F., Abbott, R.B., Burri, M., Ruse-Khan, H.G. and McCann, M., 2024.International Intellectual Property in an Integrated World Economy:[Connected EBook]. Aspen Publishing.
• Abdelmoety, Z.H., Aboul-Dahab, S. and Agag, G., 2022. A cross cultural investigation of retailers commitment to CSR and customer citizenship behaviour: The role of ethical standard and value relevance.Journal of Retailing and Consumer Services,64, p.102796
• Alotaibi, F.M., Al-Dhaqm, A., Yafooz, W.M. and Al-Otaibi, Y.D., 2023. A Novel Administration Model for Managing and Organising the Heterogeneous Information Security Policy Field.Applied Sciences,13(17), p.9703.
• Buzova, N.V. and Karelina, M.M., 2021. Judicial Protection of Intellectual Property Rights in a Digital Economy: Is There a Need for Change?.Legal Issues Digit. Age,2, p.130.
• Dal Mas, F., Massaro, M., Paoloni, P. and Kianto, A., 2023. Translating knowledge in new entrepreneurial ventures: the role of business plan development.VINE Journal of Information and Knowledge Management Systems,53(6), pp.1159-1177.
• Demir, R., Campopiano, G., Kruckenhauser, C. and Bauer, F., 2021. Strategic agility, internationalisation speed and international success—The role of coordination mechanisms and growth modes.Journal of International Management,27(1), p.100838.
• Duque‐Grisales, E., Aguilera‐Caracuel, J., Guerrero‐Villegas, J. and García‐Sánchez, E., 2020. Does green innovation affect the financial performance of Multilatinas? The moderating role of ISO 14001 and R&D investment.Business Strategy and the Environment,29(8), pp.3286-3302.
• Karttunen, M.B., 2020.Transparency in the WTO SPS and TBT agreements: the real jewel in the crown. Cambridge University Press.
• Meyer, K.E., Li, J. and Brouthers, K.D., 2023. International business in the digital age: Global strategies in a world of national institutions.Journal of International Business Studies,54(4), p.577.
• Stanković, M., 2021. The impact of external factors on implementation of franchising as a strategy of internationalization.Ekonomika preduzeća,69(1-2), pp.105-116.
• Stim, R., 2024.Patent, copyright & trademark: an intellectual property desk reference. Nolo.
• Weatherly, P. and Otter, D. (Eds) (2014), The Business Environment: Themes and Issues in a Globalised World. 3rd Ed. Oxford: Oxford University Press.
• Worthington, I., Britton, C. and Thompson, E. (2018) The Business Environment: A Global Perspective, 8th Edition, Pearson
• Youssef, M.H. and Teng, D., 2023. Market entry strategies in the Middle East: unveiling the sponsorship strategy. InManagement in the MENA Region(pp. 69-91). Routledge.
• Xiao, B., Chen, Q. and Yu, Z., 2021, April. Research on the Investment Value of Sainsbury’s. In 2021 6th International Conference on Social Sciences and Economic Development (ICSSED 2021) (pp. 108-115). Atlantis Press.