This is A Distinction example of Unit 5 - International Business assignment part A/B. To see why 2 Businesses would want to branch out internationally. In this report i have used the businesses Apple and Primark
In this report, I will be talking about why 2 different businesses that have branched out internationally
and they have gone to that measure to trade in contrasting markets. The two business organizations
that shall be investigated are Apple whose headquarters are in the United States of America and Primark
whose headquarters are in Ireland.
Business 1- Apple
Mission statement
The “best products” term indicates that the corporate vision sees the technology company as a
world leader in product design and development. Apple is challenged to keep pushing for
unique innovation in product development by the desire to have the finest products.
Introduction
Apple is a global technology company that has created and invented a variety of assorted products such
as phones, tablets, computers and many more. They are always making and inventing innovative
technology which helps advance civilization as they manufacture innovative technology every day
making it better each time. Apple was founded in 1976 1st of April in California and was made by 2
college dropouts called Steve Jobs and Steve Wozniack they brought a new company vision of the way
how people viewed computers. Apple uses a hierarchal organizational structure which means that they
have good and clear communication and authority within the business. As they are successful, they
decided to conduct business internationally and they wanted to expand their clientele, they did this by
attracting them to their products and they also provided them with better services to help them gain
more they brought a new company vision of the way how people viewed computers. Apple uses a
hierarchal organizational structure which means that they have good and clear communication and
authority within the business. As they are successful, they decided to conduct business internationally
and they wanted to expand their clientele, they did this by attracting them to their products and they
also provided them with better services to help them gain more information form the variety of
customers. Apple is a public company which means that the ownership consists of shareholders
Why does Apple trade internationally?
Apple trades internationally for several reasons. Apple trades internationally for several reasons.
Furthermore, they sell in international countries to increase their brand recognition, by going
international their name will be much more popular due to the number of countries they sell their
products in, so this will help them gain more sales due to their recognition and brand popularity.
Apple also has several revenue streams as they sell products, which are called Apple music, so you can
pay for a subscription and listen to music for a limited amount of time. In addition to this, Apple also has
access to new markets which means that they can branch out to a new country that might not be
familiar with the product, which can also mean that they can create new opportunities for people in
those countries.
This could also offer goods and services that may be common in one country all sell them in another.
Apple is very diversified when it comes to its products as their main product is the famous iPhone
however, they have much more such as the mac, iPad, watch, air pods etc. so Apple always have a
selection of products which they generate a lot of sales from. Also Apple increases their market share to
create a higher demand through its product differentiation due to their products being unique, brand
,loyalty also is a factor in this because their loyal fanbase helps the market share increase as they are
constantly buying their goods/services which helps them to continue to grow, by doing this they also
launch new products with new technology which also creates a new hype and helps the company gain
more a higher following and increases their sales.
Apple is also considered a market leader due to them dominating the market and having a strong rivalry
with Samsung however Apple is the market leader due to them being ahead technologically and
releasing more products yearly they are which helps them financially as that creates more sales, but the
competition helps them do more and achieve better results. Apple also have a technological dominance
as they are the biggest technology company and every year the top global sales and numbers which
shows that the company is highly advanced in technology.
The comparative advantage for Apple is that they can produce goods and services across more than one
country and then sell them in another, that reduces costs for a business and supports a potential profit
increase. So, Apple in this case would send their manufacturing to emerging countries like China and so
on and sell to countries that are more financially stable as they will be able to afford the products. AS
Apple has a wide variety of products, they can tend to afford to sell products at a lower price through
discounts, promotional codes etc. This also helps the provide a large volume of goods and costs will still
go down.
Apple is affected by fiscal benefits as they are among corporate giants so that means that they bare to
contract operations by driving interest rates downward. This leads to Apple taking on loans and
immersing the funds into research, development, and expansion. Apple prefers to keep their tax rates at
30%. They choose to pay less tax as they are a profitable company which prefers to keep costs and
maximize their profits, they prefer to keep everything down.
, Apples choice of markets
Apple works in many markets in developing countries, emerging countries and developed countries. A
developing country is when they are poor and they stick to agriculture and they also seek to become
more advanced, an emerging country is when they are rapidly growing soon to become a developed
country and a developed country is when a country is a developed technologically advanced. Apple
chose to work in these markets as they benefit them, this is because they offshore their manufacturing
to emerging and developing countries as this opens many opportunities for those countries for a low
price. This leads to Apple selling their products to countries that have the fiancé to pay for the items at
their own cost as the countries they sell them to can afford it. Factors influencing this would be markets
that manufacture the goods and markets that sell the goods. Apple outsources their manufacturing to
poorer regains in Asia as they are much cheaper and due to Apple maximizing their profits due to low
labor costs, they outsource it. Countries such as the Uk and other parts in Europe like Germany and
France would be classed as developed and countries like Nigeria and Congo would be emerging as they
don’t have as much money
Financing of international business
regional advisory organizations, these provide advice and technical assistance of an operation nature,
tom countries with economies in transition and, most notably to the most disadvantaged of these. They
build international relationships and help develop successful international trade and investment
opportunities.
Advantage would be that you stand the chance of making a better terms negotiation with suppliers
Disadvantage would be language barriers
Chambers of Commerce,
This is used to help improvement of local businesses environment and strengthening companies through
advocacy, networking, and campaigning
Disadvantage- membership fees, no immediate ROI
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