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Unit 5 - Assignment 1 *DISTINCTION*
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**DISTINCTION** UNIT 5 - INTERNATIONAL BUSINESS - ASSIGNMENT 1 FULLY COVERS ALL CRITERIA
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Unit 5 – International BusinessAssignment 1
Why trade internationally?
Introduction
This report has been written by the local chamber of commerce and aims to analyse and
evaluate the purpose of trading internationally. The chosen businesses that will be used as
examples will be Amazon and McDonald’s. The report will be explaining why the businesses
operate in opposite international markets, the types of finance available, the main features
of globalisation and the role of trading blocs on international trade. It will also analyse the
support available and the barriers to those businesses in order to operate internationally.
Finally, it will evaluate the impact of globalisation on Amazon.
Section 1
P1 – Explain why two businesses operate in contrasting international markets.
Amazon
Amazon is a private limited company that was founded in 1994. Since June 2022 Amazon
has been market leader of the US e-commerce market. Their market share has been
accounted for 37.8%. The company employees approximately 1.5 million people worldwide.
They operate in 20 different countries, and they have different websites for every single of
them. Amazon is known for being the company that sells everything, and it is partially true.
Amazon provides a large range of products and services to their customers. This might
include electronics, food and even fresh fruits as well as services like their Amazon prime
membership. The company has hierarchical structure which means that Amazon has many
layers of management. The target market of the company includes many different target
groups for example, families, students, low and high income individuals.
, McDonald’s
McDonald’s is a private limited company that was founded in 1995. The company is a
market leader in the US. Their market share in 2021 was 43.8%. McDonald’s employees
approximately 200,000 people worldwide however, 93% of company’s franchises are
independent. The number of employees employed by the franchises is calculated at around
2 million people around the world. McDonald’s is an international company and operates in
more than 100 countries. They sell a large range of foods for different types of target
markets that they have. Most of their products like burgers, types of chicken, sandwiches
are perceived as unhealthy however, they have also launched salads and healthier meal
options for children as well as adults. They also offer a service which is their own delivery
through their McDonald’s app. They have a matrix management structure. This means that
McDonald’s is organised by global businesses and global support functions. Company’s main
target market is low to middle class customers as their products are more affordable.
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