Stirling Bakers

Catalin Termure  

STIRLING BAKERS

Assessment Outcome 2

Q1.

                 Stirling bakers had been attended to an international festival in London and they have got a great understanding about the markets that they can enter in faster than others. For example on the festival a number of French, German and Italian wholesalers/distributers where interested to sell the Stirling Bakers products on their home markets. In fact, Sterling bakers can choose any country to go into, but before that they have to research different aspects of that market to have an overview about new markets. Lots of details can be match, for example two countries similarities like the distance between those countries, political system, beliefs, languages, lifestyle, life quality or religion for example.

• Country/market identification

                 In this stage Stirling bakers should gain understanding about the similarities of the countries in terms of languages, political views and even similar history. In this stage they have to understand in a straightforward way what can be the similarities between them and Germany or France for example, do the UK have the same political system like France? Do the UK is near those markets?  Is anything that can match those two countries?

• Preliminary screening

                  The second stage is the preliminary screening when the Stirling bakers will have an in-depth look on the countries that they decide to keep looking at after the Market identification process. In this preliminary step Stirling bakers have to increase the knowledge of the country’s economic factors, the level of consumption in the market, exchange rates Pound/Euros for France, Germany and Italy and Pound/Yuan for China. The company may have to take into consideration even the political stability in that country, because you don’t want to start exporting in a risky and over the short period of time, the laws and political views to change dramatically and to see your company sells going down. After those factors taken into account In-depth screening can start.

• In-depth screening

               All countries that are reaching this stage of research would be classified as feasible and have a go in terms of an international market entry. To have an accurate overview of the markets it is very important if Stirling bakers want to have a fruitful and right decision. The research in this stage can begin, and the company can focus in that particular market. For example questions like what prices can we tag on that market? Or how can we deliver the products in a good way to that market? Or do we have to adapt or to keep the products for our market? E.g. Oreo in China.  We may look about the threats and opportunities and also if there is the tariffs for our products to be delivered to that market...

• Final selection

                In the final selection process, Stirling bakers will have to decide and come to a conclusion about the chosen market. The team of managers who handle the exporting process will, have to search about the potential competitors already in that market , for example if they have got the same products like Stirling bakers do, or if there are any similarities in terms of product mix to help them reflecting on the future strategic goals and objectives.

• Direct experience

             This final step have to be palpable. The team that represent Stirling bakers in the internationalized process have to travel or obtain details about the new market. Details about the culture of the market and even business practices that are in place on the new market for example. You have to highlight the similarities in way that you can see if the business practices is similar to the UK or if the culture of that markets is similar or different… You have to start analysing the practices and procedures to see if you can use your own understanding that you gained back in your home market or have to adapt to the new market. A flexible approach about this practices are very good because you have to see what is best for the company. For example you don’t have to judge the business practices in Germany, because you really want the best for your company, so better to adapt then judge that activities.  

Q2.

Two distinctive modes that Stirling bakers can consider for an international market entry:

• Direct Exporting
• Indirect exporting

           Direct exporting it means that the process of entering in the new market isn’t interfere by any other third parties wholesalers or individuals and the products that you are exporting is up to your side and how, what and when to export them in your terms. It is your responsibility in terms of distribution, selling, marketing research and the whole logistic chain.

                                                              Advantages                

[pic 1]

• Potential greater profit by cutting off the middle/intermediate man
• High control over the activities of your business
• You will have a better understanding of the customers
• More secure business with customers that know you better
• If something goes wrong you know whom to contact
• Direct and fast feedback
• Develop a better understanding of that particular market

                                                             Disadvantages [pic 2]

• Time consuming, and energy investing.
• One of the most important factor is that Direct exporting is costly. So the business may not afford such a decision.
• Handling all the logistics of transaction in place
• Sometimes, local agents can respond faster to actual customers.

               Indirect exporting it’s a process that allow businesses to export the products or services through an intermediary third party person or business. It is easier than a direct export of the products and by doing it indirectly you are not responsible for logistics or collection payments by overseas.