Developing efficient management

International Business A Case Study ON Betty's tea Room

Introduction

International business is based on the interaction between the cultural factors and the external factors. External factors such as political, economic, environmental, legal, social and technological factors, deal with the nature and operation of the business in a particular country. Cultural factors such as customer perception, positivity, acceptance, tradition and preference of particular country, influence the way of business operation as well as market profit. This assignment is going to represent the way in which UK based, famous cafe-tea business; Betty’s Tea Room operates their international business. Moreover, it will represent the impact of external as well as cultural factors that affect the operation and the business management of the selected organisation.

Recommendation of USA in case of Betty’s Tea Rooms as target country for operating the international business:

About Betty’s Tea Rooms:

When it comes to the traditional cafe as well as fresh baked foods , Betty’s Tea Room is on of the most cherished place where people can fulfil their taste needs. This is UK based business with 1000 staffs and 2.4 million customers across the worlds. Betty’s has six cafe across the country. It operates its international business in China, New Zealand, and Japan successfully. It offers delicious snacks, cakes, tea bags, chocolates and fat scones. Betty’s Tea Rooms operates the international trade of tea and coffee with providing proper integrity and respect to all its customers. Taylors of Harrogate is the main suppliers of authentic tea and coffee to Betty’s Tea Rooms in order off high quality tea and coffee to all its customers.

Betty’s Tea Rooms can target USA for operating the international trade:

From the recent researches it can be seen that, that the demand of organic tea and coffee increases in USA by 13% in 2017-2018. It is the positive opportunity of the Betty’s Tea Rooms to target USA as one of the impressive market. Although, USA people are getting more health conscious day-by-day, still majority of the young populace prefers baked foods, cakes, coffee and chocolates at their tea times.

This can proves great market opportunities for Betty’s Tea Rooms. Recent market survey also preference of authentic coffee are increasing in faster rate which offer the growing tea business and retail outlets in representing their tea and coffee products in innovative way to attract the USA customers. Betty’s Tea Rooms not only operates the international trading of tea and coffee product, buy also they represent wide ranges of healthy foods for the health conscious people such as cakes, fat free chocolates, baked foods without added sugars and butter and organic tea as well as coffee. Therefore, USA market is relevant for expanding international business of the Betty’s Tea Rooms in order to grab the market. Demand for based foods, cakes, biscuits, cookies and chocolates in increasing in different region of USA such as Asia pacific, Central and South America and Middle East and Africa. This will provide huge opportunities Betty’s Tea Rooms in order to satisfy the taste needs of hug number of USA customers. Moreover, technological advancement and political assistance in USA can provide better opportunities to this selected business to operate their international; trade in USA.

Moreover, Betty’s Tea Room has its speciality in trading of tea and coffees with maintaining high quality and relevant market price which would make the marketers of this company able to grab the USA tea and beverage market. The USA people are more health concern and prefer the herbal and organic tea rather than the traditional tea (Bah and Fang, 2015). Therefore, Betty’s Tea Room can grab the opportunity of fulfilling the taste needs of the customers by representing their special fruit and herbal tea, Betty’s loose Tea, herbal Tea bags, Tea caddies, Taylor tea that can make a good profit to marketers in the USA marketer. Due to the raising obesity, cholesterol and BP, people in USA have shown sharp transition of their preference from based foods to the boiled foods. Therefore, it becomes difficult for the local cafeterias in USA for convincing people to buy their products. In this aspect, Betty’s Tea Room has the opportunity to grab the attention of USA people towards their fat free and sugar free baked products, which are prepared with high quality baked ingredient that would focus on maintaining people health. Moreover, Bettys Tea Room can trade their other food products along with tea and coffees, such as fat free cakes, dark chocolates, chocolate biscuit, truffles and healthy fruit juice. More over social and cultural perspective of USA has represented the customer preference toward yummy, tasty but healthy foods, which cannot assist people to stay fit but also fulfil their taste demand. Therefore, Betty’s Tea Room can make right choice by selecting USA as target market for establishing business and enhancing their market profit.

International business support System that support selected business in conducting the international trade:

As stated by Belás et al. (2015), international business support system is considered as the methods, which assist the overall international trading process to be taken place. Through this system, business marketers are able to approach wide range of customers across the world in order to increase their product visibility and expanding the business process. Two main factors of the international business system affect the overall trade of the selected business.

The internet
International payment methods

Impact of internet on Bettys:

Using internet and social media is important for Bettys in operating the worldwide business by satisfying the ever-changing needs of the customers. As stated by Crane, and Matten (2016) social media, websites and online marketing, assist marketers to expand their business in the international platform. Bettys markets would be able to enhance the visibility, uniqueness and quality of their product in front of wide range of people in USA, New Zealand and China through official websites and social media to grab the food and beverage market of these countries. Moreover, by using high memory software and hardware, technical manager of Bettys can make the Bettys’s websites and customer approaching process more attractive to interact with different customer across the world.
Through online promotional methods, Bettys can market their innovative product in such as fruits and herbal tea, coca, healthy coffee bags, cake, fat free juices, fruit breads and sugar free chocolates in front of the international customers.
Internet assists the Bettys marketers to take order from customers and deliver the product at their destination within the minimum time. Manager of Bettys can attend customer 24/7 through their online channel such as official website chat, emails and social media. Internet also assist Bettys to take order from developing countries the world such as New Zealand, China, India and developed countries such as USA where the demand of foods and beverages increase day-by-day. Through online marketing process, Bettys can conduct online conference with the different tea and coffee suppliers as well as dealers of international market to trade their innovative and authentic tea and coffee bags.
Through online inventory process, business marketers are able to keep the up-to-date information of the different customers with maintaining proper confidentiality (Demil et al. 2015). Bettys marketers can store each personal as well as professional information of their customers through having proper risk assessment process.
Online transaction process is one of the important processes in the international business support system, which assist the marketers of Bettys in order to offer their customer to have cashless orders. Moreover, Bettys also can uses eth proper risk controlling process by using high memory password and operating system to provide all the customers with secure transaction process.
Online process can assist the Bettys marketers in conducting proper market research by finding relevant database on target market and international market concept to get proper knowledge on the ever-changing customer perception and preference.

International payment system:

Bettys Tea Room offer people to use different payment system.

Onsite payment system:

Onsite payment system allows customer to send the money directly to the marketers. Through this process, Bettys can easily approach their customers in order to provide those instant cash less transaction.

Offsite gateways:

This process would assist the Bettys marketers to transact via different payment gateway such as Pay Pal, Sage Pay, Stripe, and Merchant Account.

Situational analysis on the New Zealand and USA for the international trade of Bettys tea room, Explaining the external influencing factors as well as their impact on the selected business

Bettys Tea Room is one of the famous food and beverage company that have the huge opportunities to expand their business in two market such as USA and New Zealand. Situational analysis on these two markets would represent the scopes and opportunities as well as difficulties of operating the business of Bettys Tea Room.

Situational analysis on New Zealand market:

Food and beverage industry is growing in faster in New Zealand with increasing numbers of tea and coffee lovers. As stated by Doh et al. (2016), today’s people are highly health conscious, which makes them, highly choosy about their foods and beverage. Bettys operates their business in New Zealand successfully with introducing their innovative tea and coffer products in front of the customers. Different situations such as political social, legal, demographic, cultural and economic situation affect the overall business operation of Bettys.

Cultural changes in New Zealand people affect the business operations as well as market strategies of the food beverage industry. New Zealand becomes home of cross-cultural platform with increasing number of intruders such as Indians, Bangladeshi and Pakistani people. Therefore, there is mix-up of different cultural aspects, which affect the way in which the retail outlets operating their beverage businesses. For dealing with this cross-cultural taste in New Zealand marketer, Bettys Tea Room needs to analyse the market trend as well as ever changing customer reference of this market. Moreover, although there are huge cultural differences, majority of the people in this country prefer herbal and organic teas, fat free foods that the Bettys Tea Room can offer them in reasonable price. The food preparation and manufacturing of teas by the Bettys Tea Room, is entirely based on the concept to keep the customer fit and healthy. Therefore, cross-cultural platform of New Zealand can be one of the most assisting as well as profitable market for this selected company.

Economic growth and GDP analysis in New Zealand shows that this is one of the economically fastest developing countries. Moreover, recent report on the food and beverage market growth in New Zealand shows that, consumption of tea and other beverages in increased by 34% in this market than that of the previous years with 25%. Such market growth and increasing demand of tea and coffee in New Zealand would enhance the market profit of Bettys Tea Room due to their innovative tea products and high quality tea leaves. Moreover, the tea products that are sold by the marketers of Bettys Tea Room can fulfil the demand of healthy as well as tasty beverages for the New Zealand people. Bettys Tea Room sells the healthy herbal and fruits tea, which can be preferred by the habitats of New Zealand, as they are more health conscious. Moreover, Bettys Tea Room use healthy baking ingredient, which would offer the customer of this country to have innovative taste as well as healthy drinks.

Social support is one of the important aspects for any start up business, which assist the market to market their product in the new market more easily (Epifanova et al. 2015). New Zealand people have made sharp transition of their foods preference from the unhealthy junk foods to fresh, world class and healthy foods and beverage that can make them fit and healthy. There are growing number of vegetarians who prefers to have herbal drinks and fresh vegetable foods. Moreover, oversees population who resides in this country such as Indians and Pakistanis, prefers special ethnic foods and beverage. Although, the mixing up of the community can pose difficulties for Bettys Tea Room in fulfilling the wide range demand, still it would also provides huge opportunities to this business for developing the range of their product and service for grabbing the emerging market in New Zealand.

Legal and political situation of New Zealand is in favour of the food and beverage retailers. Food Standards Australia New Zealand Act 1991 supports the marketing of healthy as well as fresh foods and beverages in country to make the country fresh from health disorders. Food Act 2014 and Wine act 2003 are the two important regulation developed by New Zealand government to make it obligatory for all the food traders and manufacturers to use healthy ingredients, high quality raw materials for preparing healthy as well as tasty foods. All these regulation would assist the marketers of Bettys Tea room for selling their authentic as well as healthy food and beverage products to wide range of customers.

Situational analysis of USA:

Due to the increasing health concern, economic growth and food adulteration, preference of beverages has shifted towards the organic tea as well as coffee (Fleisher and Bensoussan, 2015). As stated by economic, political, social, cultural and demographic situation of any country affect the overall business operation and marketing process of the selected business. Bettys Tea Room needs to consider this situation in USA marketer before operating their trade.

Cultural and social changes lead to make huge change over the food and beverage preferences in USA market. As people become more health concern due to different health awareness programs and campaign by the USA government. USA market has shown sharp transition from the traditional tea, junk foods and fat foods to fresh foods and herbal tea. Society in USA has changes their perception regarding the beverage and baked-foods. People in USA are more concerned towards their drinks and hard foods. This would provide huge opportunities to the marketers of Bettys Tea Room in order to sell their herbal and fruit tea and coffee products. These tea and coffees product would meet the authentic as well as fresh taste needs of then USA people.

USA is one of the fastest growing countries with higher GDP and economic growth. High number of consumers of Tea coffees in USA marketers offers wonderful opportunities to all the food and beverage retailers. This provides huge opportunities to Bettys Tea Room in terms of enhancing the visibility of different tea and coffee products in front of wide range of customer in USA to grab the market. Moreover, people USA might prefers the herbal and fruits tea products of Bettys Tea Room which can assist the people to have healthy as well as tasty drink that can improve their metabolic system as well as digestive process.

Political assistance by the US government assists the marketers of Bettys Tea Room in order to expand their business in this market. the guidelines under United States Federal Food, Drug, and Cosmetic Act , focuses on supporting the food marketers and manufacturer to maintain the authentic food standard and quality to assure proper heath of the countrymen. These regulations raise the health consciousness and make people top shift their food preference from fast foods to fresh healthy foods and drinks. Therefore, it can pose severe challenges for Bettys Tea Rooms in order to sell their based products, cakes and other high calorie foods. In this aspect, Bettys need to set the food standard of their products and service in terms of meeting the legislative obligations in USA.

Explaining the external influencing factors as well as their impact on the selected business (PESTEL analysis)

Impacts of culture on international business

There is crucial impacts of different cultures of the people on international business where the corporate firms try to conduct their operational activities across the globe, but culture has its effects on the decision making practice of the businesses (Tukker and Tischner, 2017). In these regarded, cultural differences across the world affects the pace of the business, protocol of the firm and communicative style (J.J., Wild, K.L. Wild, and Han, 2014). The cultural diversity also affects the decision making practice of the business and also negotiating the decisions and apart from that employee’s management and project management tactics also will be changed as per the cultures of the international places. In addition to these, marketing, sales and distribution practice of the companies also has been changed due to cultural influence. In the present case, it is beneficial for the company Betty's tea room to expand their business in the USA and through this section; it is possible to evaluate the impacts of the culture of the USA on the business practice of the company. The cultural factors are discussed below, which have crucial impacts on the international business mainly in the Betty's tea room.

Language:

Language is one of the main factors under the culture of the people and it has serious impacts open the international business. In the international level, the firms need to understand the mindset of the people and it is the responsibility of the managers to communicate with the clients successfully through a common language (Stott, Stone and Fae, 2016). Hereby, it is necessary to understand the language of others in different international places where the organisational representatives can acknowledge the preferences of the clients and communicate with them successfully. As per the cultural perspective, the organisations also need to provide training program to the employees so that they can understand the common language for interaction in the company.

Language gap may raise the issue of internal conflicts, misconception, non-cooperation, lack of communication, lack of knowledge sharing and resistance to change. Misunderstanding can create for the language gap and in this regard, language has its impacts on the international business. In the present case, the company Betty's tea room also needs to consider the language of the stakeholders so that the management team can communicate with all the stakeholders (Pearson, 2017). As per the above analysis, it can be stated that the company Betty's tea room has the advantage to enter into USA market and in this regard, it needs to acknowledge the market trend and customer’s preferences regarding the coffee and tea consumption. In order to communicate with the customers, the company’s executives need to interact with them in English, which is an official language in the country. Non-English languages in the country are French, German, Chinese and Spanish, but 90% people known the English language and hereby, it is beneficial for the company Betty's tea room to communicate with the stakeholders in English and expand the business successfully.

Ethnic make-up of populations:

Demographic background of the people matters where the multinational corporate firms try to expand their business sin a new international market. It is important to acknowledge the market trend and the perception of the local people about the products and services provided by the organisations. For example, in the USA, there are diverse people in terms of race and ethnicity and this is beneficial for the companies to operate in the market and attract more customers (Cavusgil et al., 2014). The education level is also high and high literacy rate in the society are also advantageous for the companies in operating in the country and targeting the audiences for their quality products and efficient services. The company Betty's tea room also has the opportunity to operate in the USA and expand their business sin the country for targeting the diverse population.

Social structures:

Social structure is also another cultural factors that has crucial impacts on the international business where the corporate firms try to acknowledge the social structure and class of the people in order to analyse that whether the people can afford the organisational products or not. There is significant social development across the USA and class system is diminished in the recent years. People in USA have moderate purchasing power parity to purchase the products of the company Betty's tea room ad it is helpful for the company to expand their business internationally across the USA. People are knowledgeable and they try to be updated daily with latest news and information. There is high influence of social media on the population and this is another opportunity for the company Betty's tea room to promote their products through social media advisement which is cost effective and people can get proper information successfully within small period of time.

Religion:

Religion also has great effects on the international business and in this regard the multinational corporate firms focus on understanding the religion of the local people so that they can maximise the values of the customers. The companies need to value the religion of the local people and in the present case the people in the USA Christian. The company Betty's tea room has the advantage to expand their business in the USA as the people prefer coffee or tea. People enjoy religious freedom which is also advantageous for the companies operating in the USA.

Values

Values also has direct impacts on the international businesses where the multinational corporate firms try to create values for their customers which further helps to strengthen the customer’s base of the company (Stahl, and Tung, 2015). In the recent era of globalisation, the customers prefer quality products that can create values for them. The customers are also health conscious and it is beneficial for the company Betty's tea room to provide healthy products to the people which further provide a scope to gain high competitive advantage in the USA food and beverage industry. Hereby, values affect the international business of Betty's tea room where the company tries to create values for the customers by delivering natural herbs, herbal tea, and extracted coffee beans so that the company can establish the brand at international level.

Attitudes to business:

Attitude to the business is another important factor under the cultural perspective where this has crucial effects on the business decision making behaviour. Positive attitude and clear vision as well as setting target to achieve the organisational goals and objectives are useful for the organisations in developing effective decision. For example, the company Betty's tea room can expand their business in the USA which is beneficial for the business to operate in the USA market and retain the customers strategically. The people in the country prefer to seek opportunities daily so that it is possible to enhance organisational growth and contribute in the country’s Gross Domestic Product (GDP).

In addition to these, the people’s attitude towards doing business in the USA market is continuous improvement through innovation and creativity and in this regard, the company Betty's tea room can expand their braches through technical innovation and creativity. Additionally, people try to maximise financial performance through improving efficiency if the business which further provides a scope to the international business to maximise their position in the market and improve their organisational performance. Communication and negotiation also have effects on the international business and people’s attitude in the USA market is mainly towards negotiating the decision and communicating properly to maximise the organisational values.

Attitudes to work:

Attitude to work is another factor that also has crucial impacts on the international business where the employees play a significant role in achieving organisational success. The organisational leaders in the USA firms aim at managing people and retaining them for long run. As the company Betty's tea room may expand their business to USA due to the existing opportunity of economic growth and social development, it is necessary to understand the attitude to work in the organisations so that the company can create effective working place where the staff members can cooperate and maximise the values of the company. The employees in the USA prefer personalise work where they try to conduct their own responsibility efficiently for improving the overall organisational performance as a whole.

Positive attitude at workplace, respecting each other and cooperative learning are also useful and these factors further provide a scope to the business of Betty's tea room to expand the operational activities in the USA and establish the business sustainably. The attitude towards the work is therefore beneficial in the USA where the firms can maximise their performance by retaining knowledge and experienced employees. The employees also encourage training and development program for improving their technical skill and knowledge for performing better. This also has significant benefit for the company Betty's tea room to hire experienced employees to manage the coffee shop as well as provide the best quality customer service after acknowledging the needs and preferences of local people.

Openness to change:

Under the cultural factors, the companies in the recent years are concerned about the factor openness to change as the organisations face serious problems related to resistance to change, internal conflicts and misunderstanding among the employees. The people in the USA are open-minded and they prefer changes in the organisation through innovation and creativity. In this context, by considering the company Betty's tea room, it has the opportunity to expand their business in the USA and utilise the opportunity of high openness to change. The leaders try to provide clear and aims and vision of organisational change and the management team communicate the changing decision with the employees for convincing the staff members to accept the changes for better performance of the organisation. Communication through open discussion, e-mail and general meeting are effective to adopt changes in the companies and it further provides a scope to the organisations to operate their business in the USA. Hereby, high openness of the people towards adopting the changes are beneficial and it has positive impacts on the international business to develop effective tactic for maximising organisational values.

Conclusion:

This assignment concludes that Betty’s Tea Room can operate their business by Targeting USA and New Zealand market by conducting proper market analysis. This analysis would assist marketers to analyse the effect of external factors in the overseas marketer that can affect the overall marketer process. Moreover, this assignment also concludes that marketers need to conduct situational analysis in order to have proper knowledge on the market.

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Business Strategy