28 Nov 2022

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How to Enter the UK Market: A Guide to Globalization

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Academic level: University

Paper type: Coursework

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Globalization 

Globalization is an essential move for the company; globalization is the integration and interaction process between people, businesses, governments and companies across the world (Grotts, 2014) . Economically, the process of globalization involves goods and services and the resources associated with technology, capital, and data. Moreover, the process of globalization is driven by several factors like international trade, investment, and advancement in information technology (Lu & Fan, 2015) . Furthermore, the globalization process has essential effects on culture, political systems, environment, prosperity, environment, economic development and the general human physical wellbeing. 

Expanding to the UK would be a good move for the furniture company. Globalization will enable the company to have access to new sources of revenue hence allowing it to increase its profitability (Lu & Fan, 2015) . The move to turn to a global market will enable the company to grow its business from new markets, and successful integration will also allow the company to acquire new customer base from which the company will generate business. 

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Market development is imperative for companies that operate on a global perspective, globalization will, therefore, insulate the furniture company from a poor performance in other regions, and globalization spreads company’s customer base and diversity allowing the business to cover its risks across a broader customer base (Grotts, 2014) . It, therefore, means that a multinational company can still find success in other countries when affected negatively by economic, environmental, supply and government regulations (Grotts, 2014) . 

Global markets also benefit from a larger talent pool. Globalization allows companies to have aces to diverse employees with different skills and knowledge, multinational companies like the furniture company can utilize the greater talent pool knowledge and skills in creating new customers lead and interacting with new business partners (Grotts, 2014) . Additionally, moving global will further permit the company to use better technologies found in the UK and Share new ideas with other businesses (Grotts, 2014) . 

The rationale behind the decision 

Globalization is a good move for the furniture company, based on the strategic considerations that the company will use when entering the UK. Globalization will be the best move (Lu & Fan, 2015) . The company is planning to use Strategic alliance as its principal strategy; the strategy will give the company an opportunity to attain its objectives as well as gaining competitive advantages especially by pooling resources (Lu & Fan, 2015) . The strategy also reduces the risks of venturing into a new market (Lu & Fan, 2015) . 

Similarly, the cultural considerations make globalization a good move, since the UK and the US use English as their principal language, the company expanding to the UK is a right decision since the company will not be faced with communication barrier problems (Lu & Fan, 2015) . When it comes to workplace culture, the western culture and the company’s home country workplace culture have no significant difference hence making the UK a right place to expand the business (Lu & Fan, 2015). 

The competitive analysis revealed that the primary competitors for the company would be Poliform UK and Custom Furniture Manufactures, the two companies produce furniture products that are customized, and they have been able to find the niche (Grotts, 2014) . For a new entrant the two companies provide a competitive advantage, the two have been in the market for too long making them a household name (Grotts, 2014) . Since the company plans to build a market profile by using social media platforms like Twitter, Facebook, and Instagram, the company would be able to spread the message about its existence and create a customer base (Grotts, 2014) . 

Any multinational company that is planning to expand globally needs to perform a balanced scorecard performance metric, through steady scorecard performance a company is in a position to manage internal and external outcomes of its operations (Grotts, 2014) . In this case, the furniture company is planning to do customer metrics and determine how to ensure customer satisfaction, acquisition of new customers, retention and the market share (Russo & Cesarani, 2017) . Such measurements would make the company succeed in its expansion plans and make globalization more successful and productive. 

Geographic location 

The company chooses the UK as the best suitable location to expand their operations. For maximum profitability, Collom, 2016 maintained that a company needs to grow to a business location that has specific factors. Consequently, market analysis is imperative (Lu & Fan, 2015) . A place that maximizes profits and opportunities’ while minimizing cost is the best location to expand to by any business. Before choosing a business location, careful examination of what the neighborhood has to offer is vital, observing government policies will also be critical. 

The main factors that make a location suitable for business expansions are its accessibility; an accessible market will help in reducing costs associated with transport and delivering goods (Russo & Cesarani, 2017) . Similarly, an exchange should have the necessary raw materials that are required in accomplishing set goals, if the raw materials used in the production process are bulky and expensive to transport, it would be cost-effective to locate your business near to the raw materials. 

Availability of labor would also attract the expansion of a business to a particular location. Availability of a labor force with skills and knowledge would be of more advantage. The available labor, competent workforce encourages invention and innovation (Russo & Cesarani, 2017) . Safety is also a significant concern when it comes to locating a business, a place with maximum security is ideal for any profit-making organization, in most cases companies and industries establish their business in less densely populated areas. 

Technology plays a significant role in the expansion of multinational companies; technology allows free movement of information from one organization to the other and between departments, locating a business in locations with advanced technological developments will be significant ensuring effective communication (Grotts, 2014) . Availability of customers is also vital; a large customer will enable a company to expand its sales volumes which in turn increases expected profits. Collom, 2016 maintains that c ultural considerations also make a location either good or bad for a business, a position with cultural norms that are almost similar to the home country would be suitable to expand operations. 

Favorable government policies further determine the location of a business, a market with tight governmental regulations will make it hard for a new company to enter a market, government interference may affect the daily operations of a business, and similarly, political stability is significant when it comes to business location (Grotts, 2014) . Politically stable countries are suitable places to locate business operations while a politically unstable place is unsuitable. 

Information that supports the UK as the business location 

The UK is the best location to expand the furniture company. There is already an available market for the goods and services that the company is planning to deliver (Russo & Cesarani, 2017) . The two competitors of the company have already created a market niche which is a competitive advantage for the new Furniture Company. Customers already know of business existence; as a result, the new entrant will not have to introduce itself and its goods. 

UK political stability and government policies make it a suitable location for expanding the furniture company. For many years the country has had an excellent legislative history and provided opportunities for companies to invest (Grotts, 2014) . Government policies like taxation favor foreign investors and encourage them to spend their services and goods in the country. Moreover, the workforce in the UK has competent skills and knowledge. The furniture will take advantage of the skills and knowledge and expand on its innovations and inventions. 

Cultural considerations where also an essential factor that determines the location of a business, UK according to Collom, 2016 is a suitable location to expand the furniture company operations, the western culture and that found in the UK is similar to that found in the US, workplace culture are identical and the two countries use English as their business language (Collom, 2016) . The company according to Manrai &Manrai, 2010 will, therefore, have an easy time entering the UK market since communication will not be a problem. 

Additionally, UK has advanced technological developments which will be advantageous to the furniture company; innovation in technology has improved social media platforms service like Facebook, Twitter and Instagram, through social media, the company will be in a position to conduct marketing to find a broader customer base (Russo & Cesarani, 2017) . 

How moving to the UK will support growth and expansion 

Running to the UK will help the overall goal of growth and development for the furniture company. By moving to the UK Grotts, 2014 agreed that the company would be able to acquire a new customer base and expand its volume of sales since the company had already exhausted its potential in its home country market, moving to more modern markets would be significant (Grotts, 2014) . With increased sales volumes, the company will make more profits and hence would have increased its expansion and growth objectives. 

How to refute someone with an opposing perspective 

From the evidence gathered about the strategy to be implemented, cultural considerations and competitive analysis, the UK remain as the best location for the company to expand its operation (Lu & Fan, 2015) . Even with opposing views that the UK might not be the most appropriate location for globalization, I still firmly believe that it is the excellent location to expand our operations. The country is the most suitable location; it has all the factors that make a place ideal for setting up a new business (Grotts, 2014) . There is an available market, good technological developments, security is tight, sound government policies, availability of competent workforce and raw materials are readily available. Moreover, Collom, 2016 maintained that the home country culture of the furniture company has insignificant differences with that of the UK, both use English as their communication language, and at the same time, they both have the same culture regarding workplace culture. 

Reference 

Collom, K. (2016). 5 Things to Know About British Work Culture . Retrieved from             https://www.languagetrainers.co.uk/blog/2016/03/17/5-things-to-know-about-british-work-culture/ 

Grotts, L. (2014, January 3). Doing Business in the United Kingdom: Cross-Cultural Etiquette. HuffingtonPost . Retrieved from https://www.huffingtonpost.com/lisa-mirza-grotts/doing-business-in-the-uni_b_4881472.html 

Lu, C., & Fan, W. (2015). Cross-cultural Issues and International Business Communication  Practice: From an Anthropological Perspective. The Anthropologist , 22 (1), 15-24. 

Manrai, L. A., &Manrai, A. K. (2010). The influence of culture on international business negotiations: a new conceptual framework and managerial implications. Journal of             Transnational Management , 15 (1), 69-100. 

Russo, M., & Cesarani, M. (2017). Strategic Alliance Success Factors: A Literature Review on  Alliance Lifecycle. International Journal of Business Administration , 8 (3), 1-9. 

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StudyBounty. (2023, September 15). How to Enter the UK Market: A Guide to Globalization.
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