Pages: 19 Words: 4740

A) Individual Notes 1

European Union (EU) is the supranational economic and political union of 27 member states that located within Europe. The union has total population of 449 million and covers an area of 4233255 km square (Description of European Union, 2024). There are 24 official languages in EU and it includes diverse religions such as Christianity, Islam, and Eastern Orthodox. There are various pros and cons of the European Union which are as follows:

Economic Benefit: Members of EU has access to one of the largest market of the world. There is no trade traffic which aids in promoting investment and trade opportunities and thereby ensures economic growth (Pata, 2021). This membership also offers access to grants and structural funds that aids in the economic development and stability.
Reduce conflicts: Establishment of EU has lead to reducing war situation across the globe as affiliated nations does not involved in any type of conflicts that promote prosperity. This situation has occurred as all the EU members are economically dependent on each other which reduces scope of conflict and facilitates in overall stability and security.
Decreases exchange rate risk: EU has established common currency across all its members which reduces the exchange rate fluctuation risk and promotes trade.
Promote Political stability: European Union has promoted political stability as it lays emphasis on rule of law, human rights and democratic governance (Umar et al, 2020). This regulation has contributed towards reducing the scope of internal conflicts and promotes stable political environment leading to enhancing overall cooperation.

Disadvantage of EU:

There are various limitations of EU that is mentioned below:

Loss of authority: The entire EU member needs to align with laws and regulations which restrict them to make their own decision regarding immigration, trade and economic policies (Awan et al, 2020). This resulted in losing various significant trade opportunities that impact on overall economic position.
Cultural Issue: There is no formal language for all the EU members which creates communication hurdle. Moreover, EU harmonization has increased concern of preserving nation’s identify and tradition.
Migration issue: EU has provided freedom to easily live and work in any member state which has resulted in increasing migration flow (Shahbaz et al, 2020). This situation creates issue for local workforce and businesses to maintain their competitiveness leading to influencing overall economic position.

B) Individual Notes 2

Multinational Corporation refers to the business entities which operate in at least one additional country than its home country (Reim et al, 2022). Each country aims at development of MNCs as it assists in boosting country’s income, investment and overall employment level. There are various reasons due to which organization enters into new country which are as follows:

Increasing sales and profits: Most of the companies usually internationalize with the aim of increasing their overall sales and profits as it enhance accessibility to the wider target market. It has been identified that customer are spread across the globe and if firm wants to enhance its revenue then it needs to enter into the new market. It has been identified that UK’s population is only 67.6 million as compared to 2.4 billion in China and India (Population of India and china, 2025). Organization that enters into these countries has opportunity to offer product to larger target market that eventually help in boosting overall profitability position of business entity. Moreover, there are various countries that not self-efficient in manufacturing particular product and services, so entering into such market with required product support in boosting overall sales (De Wit and Deca, 2020). Further, various imported product are treated as premium brand and product which help in charging higher prices and support in earning huge amount of profits. However, entering into new market includes huge amount of expansion cost and requires diverse resources which could eventually impact on firm’s overall profitability and financial position.

Economies of Scales: Many business entities enter into new country with the aim of reducing the overall cost by attaining economies of scales. Organizations that offers unique product and has huge demand in international market are generally enter into new country with the aim of reducing overall manufacturing cost. Due to huge market demand, firm purchases resources in bulk quantities and optimally utilize technology which ultimately aids in reducing per unit cost of production and support in attaining economies of scales. Along with this, many firm gain unique and differentiating advantage of intellectual property which aids in attracting larger target segment and support in attaining economies of scales (Orero-Blat, Palacios-Marqués and Garzón, 2021). Further, internationalization also helps in reducing overall cost of the business entity leading to higher profits. In this context, organization generally shift to low labour cost country which help in reducing operational and human resource cost resulting in boosting overall profitability.

Foster innovation: Organization also internationalize with the aim of gaining access to new technology and tools which aids in improving overall quality of product and services. International expansion also assists in gaining valuable learning opportunities which eventually promote innovations (Vadana et al, 2021). By entering into new market, organization gain access to new technology, develop cross culture knowledge and assess opportunity which assists in promoting innovation. Moreover, this internationalization support in gaining better insight which assist in improving core business and support in determining trend ahead of competitors.

Improves Brand image: There are various firm which focuses on internationalize with the aim of strengthen visibility and brand image. By communicating firm’s international growth motive, entity is able to develop an image of reliable and successful company which aids in maintaining overall customer’s loyalty (Martins, Farinha and Ferreira, 2022). Further, entering into new market aids in expanding network of suppliers and partners and thereby improve overall brand image. An effective relation with new partner broadens network and support in effectively undertaking new opportunities.

Competitive advantage: Another most significant reason for expanding into international market is gaining competitive advantage. An organization generally enters into the country with less number of competitors as it assists in attracting large number of customers (Igwe, Rugara and Rahman, 2021). Expanding organizations are involved towards promoting their product before entering and creates a demand for the same through digital method which assists in easily creating competitive edge. Further, there are various companies which enter into new market due to their competitors. If a competitor is entering into new country than other organization also expands their operations so the competitor does not earn abnormal profits.

Better access to local talent: It is one of the most significant reasons for internationalize as firm is able to enhance understanding regarding different culture and got access to highly competent workforce (Finardi and Guimarães, 2020). This helps organization in hiring skilled professional which bring innovative idea, fresh perspective and specialization that aids in growth and development of business entity. Hiring competent and skilled employees help organization in effectively carrying out their operation which ultimately leads to boost overall profitability of the business entity.

Gaining Tax benefits: Another crucial reason for expansion of business operation is related to gaining tax advantage by entering in country with lower tax corporate (Panibratov and Klishevich, 2020). Under this, many organization initiate tax planning which help in identify all the tax obligation and support in defining benefits that will be enjoyed by entering into new country.

Difficulty in internalization:

Along with diverse benefits, there are various challenges which restrict organization in effective expand into new countries which are as follows:

Cultural barriers: The major challenge faced while expanding into new market is related to difference in the culture, beliefs and values of different countries. Difference in languages, social norms and stereotypes and prejudice are various cultural issues that are encountered by the business entity (Zahoor, Al‐Tabbaa and Khan, 2023). For example: Tesco has expanded into US without critically evaluating the countries’ culture which creates issue in effectively managing its stability in the industry (Tesco’s expansion to US, 2025). Further, there is difference in taste and preference of customers within diverse countries that require organization to remould their product according to customer’s needs. Inefficiency in effectively identifying countries’ cultural and non- alignment with same leads to negatively impacting on overall business entity.

Legal barriers: Each country has differential legislation and regulation which company needs to follow for carrying out its operations in ethical and legal manner. However, difference in legislation of both the countries creates issue for organization to easily expand into new market. It has been identified that there are diverse strategies and processes which are allowed in domestic country but restricted in other country which requires firm to review its strategies and policies (Mariotti and Marzano, 2020). Non alignment with any of the legislation develops huge amount of legal obligation which ultimately impact on overall reputation and goodwill of the business entity.

Hiring and retaining employees: There is huge difference in workplace environment of diverse countries which require organization to formulate adequate policies. Individual generally attracted to MNCs with the aim of earning higher profits but there is huge cultural difference with leads to higher turnover rate. There is difference in working hour regulation, communication procedures, and work life balance strategies and needs of employees in different countries (Puthusserry et al, 2021). This creates an issue for multinational companies in adjusting their HR policies according to employee’s needs leading to facing difficulty in successful integration. Moreover, there are diverse local employment laws which need to follow for the successful expansion of organization into new country. Inefficiency in complying with HR regulation creates issue in managing employees’ satisfaction which eventually impact on overall productivity of workforce.

Currency fluctuation and inflation rate: Another critical issue faced while expanding globally is related to continuous changes in exchange and inflation rates of the country. Due to these changes, there are continuous fluctuation in the cost and profits of the organization which eventually impact on overall working of the business entity (Marano, Tallman and Teegen, 2020). If host country’s currency depreciated in comparison to domestic currency then firm needs to incur high cost for carrying out all the operation which negatively impact on the overall profitability of the business entity.

Supply Chain issues: Logistic and supply chain management is the most significant challenge faced while expanding firm’s operation in new country. For managing global supply chain, organization needs to align with legal requirement, address quality standard and coordinate across time zones which creates issue in effectively managing its supply chain (Maalouf, Abi Aad and El Masri, 2021). Initially, organization is depending on their existing suppliers to provide raw material at new location which increases overall firm’s cost and eventually impact on profitability position. It has been determined that supplier also does not easily trust any international company which creates obstacle in timely and effectively sourcing all the required material. Further, many organizations does not manufacture product in each country rather bring finished good from domestic country which creates issue in timely offering services to customers.

High competition: If an organization has decided to enter into highly competitive market then it creates issue in successfully attracting target customer which eventually impact on overall stability of the business entity. A loyal customer does not like to shift towards new company which creates issue in profitably carrying out the entire all the operations (Ulucak and Erdogan, 2022). Further, customer also perceive international brand as luxury and expensive which creates issue in attracting cost conscious customer which eventually impact on overall profitability of the business entity.

Political instability and issue: Further, political instability is another issue which is faced while internationalization of the business entity. (Contractor, 2021) If the political relation between the host and domestic country changes then it creates issue in effectively establishing firm’s presences. This political instability will result in changing tax rates, raw material and labour cost and transportation expense which eventually influence overall working of the business entity.

C. Individual Report

Introduction

In today’s dynamic and competitive business environment, every company, especially multinational corporations (MNCs) are focusing on expand their business. Expanding business in other countries is necessary to operate business for long time and increase revenue sources. Sainsbury’s, a UK-based multinational company that operates in UK and Ireland has been selected for this report. The chosen country is Canada where Sainsbury’s can enter. The report will analysed the domestic market, strategy of internationalise and mode of entry will challenges and solutions. Further, the report will shed light on leadership qualities which will support the global market entry.

Analysis of domestic market

The analysis of domestic market i.e. UK market can be analysed by using PESTEL analysis. The detailed analysis is given below:

Political: The United Kingdom has a vibrant political environment which help businesses highly (Rahman, M., 2025). But after Brexit, the country has developed tough rules which make it difficult for industries to operate business in the market.
Economic: UK has a strong economy and world class infrastructure that help the retail industry in their growth. However, UK’s tax rates (20%, 40% and 45%) are high compare to country like Canada which force corporations to pay high tax (GOV.UK, 2025).
Social: The consumer market in the United Kingdom is quite big which allow the businesses to make large base of customers. It facilitates the company to increase sales and revenue.
Technological: UK is considered as hub for research and development and technical innovation (Global Data, 2024.). It encourages the Sainsbury’s to invest in technology and meet ever-changing needs of customers.
Environmental: Due to the growing environmental impact, UK government imposed strict environmental regulations. It is required for all businesses to embrace and implement ethical and sustainable practices to contribute to environmental protection.
Legal: UK created different laws and acts like employment act, health and safety, consumer protection etc. for businesses. It is crucial for the corporations to comply with essential rules to effectively operate in UK market.

Strategy of internationalise

Internationalisation is the procedure in which a company expand their business into global markets. Sainsbury’s is one of the leading company in the UK and has ability to expand in the other countries. The company can enter into the Canada and increase global presence. There are many strategies to internalise that can be utilised by the Sainsbury’s while entering into foreign countries.

Global strategy: Under this strategy, a corporation expands their business operations outside of its domestic markets to become international player. The main aim of this strategy is to boost revenue, profit margins and market share through leverage the opportunities in international market.
Transnational strategy: An enterprise utilising a transnational strategy looks a middle ground amid global and multi-domestic strategy (Demir et al, 2021). Organisations attempts to balance desire for affordable costs and efficiency with the local people needs.
Multi-domestic strategy: A company utilising a multi-domestic strategy does not concentrates on efficiency and costs but stresses on responsiveness to local needs within each market. It is kind of local-first approach that totally focused on the customer’s needs.

From analysis, it is identified that Sainsbury’s can use the transnational strategy when they enter into the Canada. The company can offer tailor products according to customer’s needs while focusing on efficiency and operational costs (ElKaleh, 2021). It will allow the Sainsbury’s to operate efficiently in foreign market through balancing international standardisation with local receptiveness, allowing them to connect with customers. It can be useful for the company to make large base of loyal customers which can directly increase sales and profitability.

Mode of entry, challenges and solutions

International market entry is not easy and Sainsbury’s must implement appropriate strategy to achieve success in the foreign market. There are many mode of entry such as; exporting, joint ventures, licensing, strategic alliance franchising and merger and acquisition. Based on analysis, it can be said that strategic alliance can be suitable model of entry for Sainsbury’s.

Strategic alliance

Strategic alliance is a kind of collaborative contract or agreement between organisations to accomplish a shared business goals. It usually involves sharing of technologies and greater market access (Cassia and Magno, 2022). This entry mode will facilitate the company to make strategic alliance collaboration with the local supermarket chains or retailers to expand business in Canadian market without any problems. It is also an affordable as well as less complex market strategy.

Challenges and solutions

The entry mode has some challenges that can impact the expansion idea of Sainsbury’s. Here are some challenges with solutions explained below:

Coordination challenges: As Canada has different culture compare to UK so, Sainsbury’s can face cultural problems (Karhu and Ritala, 2021). This can be solve by performing thorough market research to know the Canada’s local culture.
Face conflicts: When Sainsbury’s will make partnership with other retailers then there will be high chance of raising conflicts because of different mind-sets. The challenge can be overcame by prioritising open communication. In this case, Sainsbury’s should listen to other’s opinions instead blaming each other.
Impact Company’s reputation: If Sainsbury’s fails to meet the contract rules then it may affect their brand image. The company must read agreement carefully and operate their business accordingly (McLeod, 2021). If they have any doubt regarding contract then it is crucial to clear it before it creates difficulties.

Leadership qualities supports market entry

Leadership plays a pivotal role in when a company plans to enter into the global market. A leader is a person who make strategies and provide a direction to successfully enter into the foreign country. There are some leadership qualities that can support market entry:

Strong communication skills: It is necessary for the leaders to have effective communication skills (Colovic, 2022). It can support the leaders when they want to convey the information and negotiate the deal with the Canadian retailers.
Risk-taking behaviour: Taking calculated risk is major quality of leader. Leader who take risks has high chance to achieve success in any project. It will help the company to response challenges positively and find solutions to overcome it.
Innovative and creative: A leaders must be innovative and creative which will help to make unique strategies (Chaithanapat et al, 2022). Their innovativeness will facilitate to attract the investors and retail partners. By using unique marketing strategies, the company can grab the attention of potential customers.
Adaptability and flexibility: If the leader possesses adaptability skills they can easily adapt to the market changes and trends. It will help them to tailor strategies according to market trends and meet foreign customer needs (Hajiali et al, 2022). Flexibility quality of leaders will also support market entry by modifying their leadership and management style. It will enable leaders to adjust strategies and make informed decisions for business.

Conclusion

From above report, it is concluded that it has become crucial for the multinational companies to expand into foreign countries for long-term growth. The report has explained Sainsbury’s which is a MNC could enter into the Canadian market to increase their reach and revenue streams. The suitable strategy of internationalise which has suggested to the company is transnational strategy which could not only meet the local needs but also help to generate higher profits. It has identified above that strategic alliance as a market entry mode could be beneficial for the Sainsbury’s. Further, a leaders must have some qualities such as; strong communication skills, risk-taking behaviour, innovative and creative etc.

D. Individual Reflective Essay

The module was great experience for me as it allowed me to learn about business environment. The module was based on internationalise which was a quite interesting topic for me. I started the project by dividing topics into sub topics so that I can easily research about topic and prepare report. I conducted the online research on European Union (EU) which allowed me to know that EU was developed in order to support economic cooperation and reduce conflict among countries. The module helped me to gain in-depth knowledge about internationalise. I found out many multinational corporations are investing to make their business global. I learned about things that play crucial role when a company is going to expand its business in other countries. During research I came to know that analysis of domestic market is crucial to get the deep insights into the economic conditions of the market. I identified that UK has strong economy and political culture that offer benefits to the business organisations to operate the business in competitive marketplace. The module has provided me a chance to improve my research skills because I researched about different topics by using internet and collect the relevant information.

Further, I learned about the different market entry modes which was fascinating for me. I identified that a company that is planning to enter into international market has different choices. But, it is crucial for them to use appropriate strategy by knowing both advantages and disadvantages when they enter into other country. Moreover, I gained knowledge about strategies of internationalise. But, I identified that I need to do more research regarding this topic as I still have some doubts. My concepts are not clear regarding different strategies of internationalise. I will definitely give extra time and use different sources to get more knowledge about the topic. Meanwhile, I learn that leadership qualities are equally important when it comes to enter into other country which has different culture and values. Good leadership qualities support the market entry by taking risks, implementing innovative strategies and confidently communicating with the clients. On the other, a leader who do not possess essential qualities then it can be difficult for the company to enter into the market. The module increased my critical-thinking skills as I search about different global business. It allowed me to know how companies manages its business operations and operate in the market.

I conducted SWOT analysis that helped me to know my entrepreneurial qualities. From analysis, I came to know that I have risk-taking ability and do not hesitate to take risks to do work. I understand very well that how to take calculated or smart risks that provide advantages instead of increasing problems. I also identified that I have good problem-solving skills. Problem-solving skills is capability of a person that help them to find root of problem and discover solution (Bariyyah, 2021). I worked on different projects in past and I used my problem-solving skills to find the alternative solutions to the problem. I have leadership quality and I have capabilities to handle a team or project in an effective way. Adaptability is another crucial entrepreneurial skill that allow me to adapt to the changes in the market instead of relying on old and traditional ways to so any work. I also have knowledge about different technologies and tools that help business organisation and people. I am innovative and creative person as I always try different ways to carry out my work. When I solved any tasks and activities in past, I tried to identify creative and unique ideas to solve problems. I always see problems in different way and use creative solutions to the problems. I believe that without creativity there is no origination and innovation possible. As entrepreneur has creative mind and come up with new ideas that meet the needs of society and fulfil the market gap.

In addition, I found that I am strong in communication skills and have confidence. Because of my communication and confidence, I easily interacted with others. Communication is valuable skill that help to convey the information or message to others. A person who possess strong communication ability and confidence help them to influence others which is crucial when an entrepreneur open their new business (Jardim, 2021). By using communication an entrepreneur can convince the investors to invest their money in business. I have lack of decision-making skills and I always find difficulties to take decisions. Because of lack of decision-making ability, I was not able to take quick actions which affected my work performance and productivity. I want to improve decision-making capability skills so that I can do better in my career. I will use different resources so that I can improve weak skills and develop new entrepreneurial skills.

Reference materials and sample papers are provided to clarify assignment structure and key learning outcomes. Through our Assignment Help UK, guidance is reflected while maintaining originality and ethical academic practice. The Research on the European Union Assignment Sample demonstrates academic analysis of EU structure, economic integration, political cooperation, and associated challenges.

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