BTEC Business level 3 Unit 5 international business p1 p2 p3 p4 m1 m2 d1
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Unit 5 - International Business
Institution
PEARSON (PEARSON)
unit 5 submission has been marked and awarded a d1 , international business which covers btec. 5/AB.D1
Evaluate the impact of globalisation on a business.
5/B.M2
Analyse the barriers to two contrasting businesses of operating internationally.
5/A.M1
Analyse the support that is available to con...
evaluate the impact of globalisation on a business
analyse the barriers to two contrasting businesses of operating internationally
analyse the support that is available to cont
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BTEC
PEARSON (PEARSON)
Business 2016 NQF
Unit 5 - International Business
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How two businesses trade internationally
This report will explore the reasons why two businesses both Apple and Wilkin & Sons, operate in contrasting
international markets. It will explore the reasons why businesses trade globally and consider the factors that
influence the implementation of international business strategies.
The large global organisation in this case is Apple. Apple is an American multinational technology
company that specialises in consumer electronics, software and online services which is
headquartered in Cupertino, California, United States. The business was founded on April 1st in
1976 by college dropouts Steve Jobs and Steve Wozniak. Apple designs, manufactures, and
markets smartphones, tablets, personal computers, portable and wearable devices. The company
also offers software and related services, accessories, networking solutions, and third-party digital
content and applications. Apple is a public limited company due to the fact that its ownership
consists of shareholders, and that anyone can buy shares in the business. Apple has over 16 billion
shares outstanding as of March 2022 - the companies largest share quantities are owned by
organisations. The business is valued at $2 trillion in 2021 making it the most valued technology
company in the world. The business operates on a large scale which as of 2021 had 154,000
thousand employees. Apple's business continues to grow each year with their annual revenue
quadrupling in the last ten years; as of 2021 apple's total net sales amounted to 365.82 billion U.S.
dollars. Apple is a multinational enterprise based in Cupertino, California. They operate in many
different countries, for instance in China, the Czech Republic, Malaysia, Thailand and South Korea
are all manufacturing locations for Apple. Apple has 522 retail stores in 25 different countries, with
more than 500 physical stores in the world.
In direct contrast the small UK business I am going to discuss is Wilkin and Sons. Wilkin & Sons
Limited is a manufacturer of preserves, marmalades and associated products established in Tiptree,
Essex, England in 1885 by Arthur Charles Wilkin. The business is a private unlimited company with
share capital. The business is worth 74.5 million based on net assets of 38.2 million, with sales
reaching 44 million in 2021. They currently employ just under 500 people. The business is based in
Tiptree, Essex which is where all their products are manufactured. Their products are retailed in
more than 60 countries, with growth in exports to quality hotels in the Middle East, India and
America.
Apple is based in Cupertino, California with their business operating in a vast majority of different
countries. Retail services for Apple operate in 25 countries consisting of the United States, Japan,
United Kingdom, Canada, Italy, Australia, China, Switzerland, Germany, France, Spain, Hong Kong,
Netherlands, Sweden, Brazil, Turkey, Belgium, Macau, Mexico, Singapore, Taiwan, South Korea,
Austria, Thailand. The business has over 500 physical retail stores throughout these countries.
Apple Manufactures their products in China, the Czech Republic, Malaysia, Thailand and South
Korea. All of Apple's products are exported from Foxconn in China which are then distributed to
the United States and then the rest of the world. The majority of Apple's raw materials are also
imported from China.
Wilkin and Sons is based in Tiptree Essex, which is where they also manufacture their products.
Their products can be found in over sixty countries across the world, and are available in fine
retailers, premium hotels and quality airlines. The business states that exports have become more
important to their business over the last 10 years. In 2015, around a quarter of their revenue came
, from oversea markets. They have seen healthy growth in the Middle East and from emerging
economies, such as China. The business imports their products from local growers and trusted
overseas sources to get fresh fruit that is used in their products. However, the business primarily
produces their products from their own farms.
Both Apple and Wilkinson & Sons are two contrasting businesses, they are both extremely successful
businesses that are continuing to grow. Apple is a large global organisation and Wilkin & Sons is a smaller more
local business but does however offer their products outside of the UK.
Developed, Emerging and Developing countries
A developed country has more advanced economies, better-developed infrastructure, more
mature capital markets, and higher standards of living. These are the most economically advanced
countries, with highly developed capital markets and high household incomes. Most developed
markets are located in North America, Western Europe and Australasia.
Emerging countries are in the process of rapid growth and development but they have lower
household incomes and capital markets that are less mature than developed countries. They are
characterised by fast economic growth but their infrastructure and household incomes haven’t yet
caught up.
Apple operates in 175 countries around the world, they operate with emerging countries in order
to expand their growth, Apple has expanded its services geographically - including its app store and
Apple music - to a range of developing countries in Africa and Asia. Many of the countries that
these services have been offered to have exceptionally low incomes and therefore low purchasing
power for paid-for services, including iphones. Apple has taken this action in order to establish
their brand. Apple targets non-english speaking populations within these markets to set up for the
future services footprint and accelerate the development of the local content.
Whereas, Wilkin and Sons operates just in the UK but they do however sell overseas through
shipping. The business states that ‘’exports have become more important to our business over the
last 10 years. In 2015, around a quarter of our revenue came from oversea markets. We have seen
healthy growth in the Middle East and from emerging economies, such as China.’’ The business has
made progress in the export markets but it is challenging as they have limited resources overseas.
Reasons for International Trade
There are a range of reasons why businesses trade internationally in order to contribute to the
success of their organisation.
Apple is considered to be an international business due to the fact the products they provide are
sold internationally. Although they are based in Cupertino, california - they have stores that are
existing all over the world which allows the business to become an international business. Not only
does the use of stores help Apple operate internationally but also the use of their online sites. Any
product can be shipped from the business to where a customer is in the world.
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