International Business in Practice Case Study Sample

Introduction To International Business in Practice

1. Background

The UK-based retailer Nisa has a long history dating back to when it was founded as an association of individual merchants. Nisa, an English company established in 1977 within Scunthorpe, has grown to become a major force in the grocery store industry. Nisa, which specializes in working with SMEs uses a cooperative company model to provide independent shops with pooled resources as well as combined purchasing power. Nisa offers a wide variety of commodities and services at the moment, such as foodstuffs, fruit that is fresh, refrigerated items, as well as items for the home. By helping independent retailers succeed, the organization plays a critical role in bolstering regional economies as well as encouraging the long-term viability and expansion of communities.

Giant supermarkets and well-known retail companies compete with Nisa within the UK marketplace. Prominent rivals consist of Tesco, as well as Sainsbury's. One of Nisa's unique selling points is its collaborative framework, which encourages an atmosphere of camaraderie and teamwork among its participants. The necessity for creative strategy and a smaller scale in comparison to more established rivals, nevertheless, could be possible drawbacks. Nisa has the chance to grow or vary its business by joining the Indian marketplace. Given the existence of both domestic and foreign rivals, it would be essential to comprehend and navigate the complexity of the Indian Market. By leveraging its collaborative model as well as dedication to building communities, the company could carve out a distinct niche for itself in India and promote cooperation with regional companies as well as economic progress.

2. Product/Service/Target Overseas Location

Product/ service description

The National Institutes for Students Achievement (NISA) presents NISA Global Connect, which is an unprecedented initiative for global growth. This online instructional platform offers an extensive variety of instruction, from conventional academic areas to technologically driven fields. NISA Global Connection was intentionally established to offer globally readily available high-quality instruction. Its focus on real-world abilities, capacity to adjust to different methods of learning, and incorporation of cutting-edge e-learning resources positions it as an agent of change in the educational business.

Contribution to increased profits

With global growth, NISA Global Connection has tremendous financial potential. The ability to scale of the system makes it feasible to tap into novel markets at an affordable rate. By delivering an educational programme that conforms to worldwide requirements, NISA may acquire share of the market from an international student body which is searching for an excellent education. The growing demand for learning online, especially in the aftermath of the pandemic, increases the possibilities to generate money for NISA.

Rational for India

India is a perfect setting for worldwide growth for a variety of factors. The objective of NISA corresponds precisely with the country's increasing economic development, young people, and rising need for excellent educational opportunities. India is an ideal location for NISA International Connect due to the country's commitment to digital schooling and technological enhancements (NISA, 2023). Cultural affinities among India and the United Kingdom additionally serve as a base for successful adaption. The system has been customised to satisfy regional needs in accordance with NISA's global-minded strategy, while taking into consideration India's varied educational context. India has been chosen deliberately to show off NISA's devotion to understanding other cultures and it's around the world goal for affordable learning.

3. Theoretical Concepts/Literature Reviews

NISA's the opening into India involves coordinating both the informal and formal frameworks affecting the marketplace, in accordance with the theory of institutions. Given India's strong republic as well as favourable business environment, NISA has the ability to react to changes in the economic and political climate with a measured level of flexibility. But there are also issues with organisational gaps, such murky laws and complex bureaucracy. By using the concept of institutions as a framework for action, NISA must actively fill these loopholes and make sure that regional regulations are adhered to while staying adaptable enough to adapt to changing environments in institutions.

NISA's entry look at brings location, ownership, and internalisation benefits into account when drawing on the eclectic worldview. Given the complicated legal framework in India, strategic partnership building becomes essential. Management benefits are reinforced by NISA's widely recognised brand and solid supply chain experience.

The theory of cultural considerations plays an essential part when deciding NISA's entry strategy. NISA needs changed its marketing strategies and leadership methods according to the Indian consumer base's propensity towards collectivist and elevated separation of power. NISA tries for understanding of cultures while recognising the potential of cultural misunderstanding. This involves altering procedures for operation to correspond with the various cultures of India with the goal to reduce barriers created by differences in culture.

The importance of the resource-based perspective (RBV) paradigm for NISA's venture into India is emphasised in this study. NISA's strength such as their strong handling of supply chains and ecological initiatives are presented as essential advantages under the RBV model. However, there are still difficulties in adapting such skills to the various customs prevalent in India. For the purpose of to acquire an advantage over rivals, NISA proactively uses the RBV structure to match its inside benefits with the ever-evolving demands of the Indian market.

According to Steffen et al (2020) emphasises the importance that the concept of networks is to understand NISA's methodology, especially structural the term. It is essential for developing trust with local suppliers, sellers, and prospective partners. In spite of prospective issues, NISA has implemented network theory-informed strategic network administration to promote effective cooperation and maximise network benefits in India's changing marketplace.

In accordance with Sun et al (2021) NISA is capable of negotiating the Indian market by utilising the marketplace direction idea as a helpful instrument. The concept renders NISA stronger in the marketplace by allowing it to comprehend and meet the ever-shifting preferences of Indian customers. NISA operates by the market oriented concept, which encourages adapting to changing the customer desires and maintains its strategies centred around India's constantly shifting motion, regardless the difficulties of adapting to the nation's broadened marketplace.

The idea of corporate social responsibility, or CSR for short was laid out by Tomec et al (2023) having an emphasis on the importance of it inside the Indian marketplace. Social responsibility efforts support the increasing concern for the environment in India, strengthen NISA's brand, and recruit environmentally and socially conscious Indian consumers. Brings emphasises the challenges involved in integrating corporate responsibility initiatives with region norms of society and culture, although.

Integrating multiple theoretical frameworks offers NISA an effective plan to follow for its planned entry throughout India. NISA's position, ownership, and internalisation benefits are dictated by the eclectic framework, whilst it uses theory of institutions when interacting with the regulatory environment. In the complex setting of India, sensitivity to culture is guaranteed by the concept of cultural elements. NISA's abilities correspond with evolving customer needs through the RBV structure, and effective cooperation is made possible via the theory of networks. NISA's flexible approaches are bolstered by plugging in gaps in institutions and combining a market-oriented and CSR concepts. This strong theoretical basis enables NISA to establish a long-lasting culturally appropriate presence there in alongside taking benefit of possibilities within the Indian market.

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4. Analysing of the Host Country and Industry Characteristics

Formal institutional factors

Economic systems and infrastructure: India, the destination nation, provides an exciting business climate with an industry that is broad and diverse and a GDP which grows rapidly. Despite occasional fluctuation, the gross domestic product (GDP) increase has continuously stayed positive, indicating an upbeat financial situation. The substantial and increasingly qualified worker pool promotes NISA's mission of offering educational programmes. However, worker expenses can differ, thus price NISA Global Connection has to be handled carefully.

Government programmes have contributed to doing business easier lately but administrative barriers still remain (Boranbay and Guerriero 2019). Improvements in facilities such as internet accessibility and logistics have rendered platforms for distance education feasible. However, problems like unbalanced growth within regions and frequent blackouts of electricity must be considered in account.

Political and legal systems: While the federated parliament republican system that rules India offers security, the political climate may be complex. NISA's activities could be impacted by future changes to regulations or policy. Although the legal system is mostly successful, property rights are occasionally not honoured. To continue to keep its online instructional content, NISA has to use caution when traversing the realm of its intellectual property security.

Informal instructional factors

Demographic characteristics: India's demographics dividend its substantial number of youth is in keeping with NISA's dedication to training. However, localised material and support for multiple languages are required for catering to a differed range of communities and cultural backgrounds. Success demands a comprehension of geographic variations regarding educational requests (Fard 2020). At an average lifespan of 28.4 years, the Indian population is youthful, offering a sizable market to NISA's services in education. It is essential for understanding the urban-rural disparity, the density of people and region demographics in to properly customise NISA World Connection to satisfy a range of learning requests. India's immense variety provides for a difficult demographic situation. With an estimated population of over 1.3 billion individuals, NISA needs to be able to recognise the small variations among age groups, financial stages, and degrees of education. India's young citizenry, with a mean age of 28.4 years, emphasises the requirement for educational institutions tailored to driven, proficient in technology youth. In order to guarantee that NISA International Link connects with the different demographics fabric throughout states and areas, tailored strategies are needed. Local variations in the number of people and urbanisation levels further demonstrate the requirement. It's also important for understanding the gap among rural and urban areas. While there may be more demand for sophisticated online learning in larger cities, bridging educational divides in rural areas may call for various approaches.

Cultural norms and social responsibilities: India's cultural customs put a great deal of importance on education, thereby rendering NISA feasible. Activities with an effect on society may enhance NISA's image, and civic responsibilities are growing increasingly essential (Kapas 2020). It is important for navigating India's intricate network of cultural traditions. It is essential to build respect for immigration, family principles, and responsibilities in society into NISA's education programme. NISA's incorporation into Indian society grows stronger when its initiatives, like community outreach and grants and loans, fall in line with its social responsibilities.

The social norms in India are greatly influenced by its rich cultural past, that NISA must delicately talk. Integrating cultural aspects in instructional materials ensures that audience members locally will find them engaging. To truly resonate with the Indian audience, NISA World Connections ought to be infused with reverence for immigration, familial principles, and community connections.

NISA could acquire greater acceptance in Indian society by recognising and carrying out societal responsibilities into its attempts. Scholarships, volunteer projects, and relationships with local non-governmental organisations are signs of NISA's commitment to developing into an environmentally friendly entity besides to their beneficial impact on society as a whole. The public's impressions of NISA are boosted when it is compatible with India's socially conscious culture ethic.

Environmental considerations: Sustainability in the environment is growing progressively more important, and NISA may enhance its position by integrating environmentally conscious practises into its everyday operations. This is in accordance with evolving legal tendencies and what customers want (Sun et al 2021). By introducing eco-friendly processes, NISA might gain popularity as awareness of environmental issues increases. A beneficial perception of the brand is promoted through incorporating sustainability into activities and raising consciousness about the environment, and this is in keeping with India's increasing emphasis on environmental attempts.

Ethical practices and corruption: India has issues with fraud; thus, NISA's authority is contingent upon its devotion to ethical standards. Long-lasting achievement needs adherence to combating corruption rules and openness regarding business dealings. Maintaining superior ethical standards is crucial in the nation's commercial climate. Combating corruption laws has to be implemented by NISA to guarantee honest company conduct (King et al, 2019). Keeping integrity in collaboration and company interactions preserves the company's brand and promotes confidence in stakeholders. India's corporate environment is distinguished by the requirement for strict commitment to moral principles. NISA has to manoeuvre through a regulatory landscape that demands honesty, openness, and adherence to anti-corruption legislation. Gaining the trust of stakeholders requires upholding strong moral principles in all aspect of the business, from collaborations to content production.

Consumer preference and behaviours: Understanding the preferences of Indian consumers is essential for NISA's educational initiatives. Satisfaction with clients can be improved by integrating experiential learning events, tailoring data to local tastes, and responding to local learning requirements. It is vital to comprehend the tastes of Indian consumers. Meeting the needs of India's wide population of customers calls for offering adaptability in learning formats, combining interactive and cooperative educational aspects, and adapting information to fit an array of preferences. By analysing market trends, NISA is able to adjust to changing demands from customers. For NISA's growth to be effective, it must be able to comprehend the tastes of Indian customers. A more sophisticated strategy is required due to an array of preferences among different locations, language groups, and socioeconomic statuses. Meeting the requirements of India's broad consumer base necessitates offering various instructional formats, combining engaging and interactive learning attributes, and customising instructional materials to fit a range of preferences.

5. Entry Mechanism

Each business wants to expand its business to grow and achieve its objective. For this, the company need more capital, new technology, knowledge and a market to operate its business. To build brand image, new market and new customer for their product and service the company have to enter into foreign market. To enter a foreign market, there are numerous way that are as follow:

Export – In this one country sales goods and services in another country. It helps a country to produce at a large scale and bring economies of scale. It also helps a country to sell surplus stock in another country (Kapas, 2020). It is less risky and less costly and one of the best ways to expand potential markets. The best advantage of this mode of entry is that the firm has no expense to operate business in a new country.

Licensing- In this, a firm permits another firm or person to use its copyrighted and trademarked product to do business for an agreed period. The firm that permits the right to use intangible assets is the licensor and to whom the license is issued is the licensee. In this less investment is needed but this method is time-consuming.

Franchising – In this, the owner of the business pays fees to the parent company to get the right to be recognized by its trademark to sell its product or service. For this, the two parties make a franchise agreement. However, an incorrect franchisee damages the company`s goodwill.

Wholly owned subsidiary- When 100% of shares are purchased or acquired by a foreign company in any domestic country, then it is known as a wholly-owned subsidiary. This gives the company full control over foreign company`s operations.

Joint Venture – In this company joins hands and shares management and ownership with another company to enter in the foreign market (King et al, 2019). In this company share risk, reward, technologies, resources and expertise. It can be for short term or long term.

Outsourcing- In this, to reduce cost, the company hired third parties from outside to complete work rather than doing it internally. The company undertook this practice as a cost-cutting measure.

Management Contract- It is a legal agreement between two or more parties to take responsibility for managing and coordinating the functions of another company. For this management company receives compensation for work or revenue for work.

Merger - Merger refers to when two separate firms form a new legal entity with a new corporate name. In this the firm enjoys tax benefits, economies of scale and fast growth. Shares of the new company are distributed to the existing shareholders of both the original businesses after the merger.

Acquisition - refers to gaining control over another firm by acquiring or purchasing shares but it does not mean a dissolution of a firm whose shares are acquired.

Foreign Direct Investment – It refers to entering in a foreign market by investing directly or indirectly through financial institutions. It helps to boost the presence of businesses in the global market at a large scale (Martin, Romero and Wegner, 2019). Horizontal, vertical and conglomerate are some of the types of foreign direct investment.

Strategic Alliance – In this, two firms enter into a voluntary formal agreement to use their resources to achieve a common goal while remaining outside as independent firms. It helps in developing new technologies, to increase production capacity and market share.

For a joint venture, the two parties are legally binding in a contract to do a new project or work together to make a profit and to achieve set goals of business. The document contains the nature of the joint venture, the responsibilities of the parties involved, the amount of investment, and the creation and termination date.

The most popular and best way to enter in Indian market for the Nisa retail store is a joint venture because it is an immense way to do business. It allows the company to reach the Indian market and pool resources, infrastructure, local partner`s knowledge and relationship. It helps the company to overcome barriers to enter in foreign market.

With the help of a joint venture, the store expanded its business to a new market it helped them to reach better resources in terms of technology and manpower. They do not need to make extra efforts in search of new employees who are best suited for the business and this will increase employment opportunities in India as a result there is an increase in people's income and gross domestic product. Entry of foreign retail store also helps in improving infrastructure. Joint venture helps the store in a great way by providing needed information such as customer tastes and preferences, purchasing habits, customs, values and culture so the company can provide services and products accordingly (Steffen et al, 2020). Because of the joint venture, Indian customers also get a wide variety of choices of products with better quality and can easily get those products or services which are not available before. This leads to saving time, cost, money and effort. When businesses form joint ventures, they have the advantage of sharing profits as well as risks of business equally. This makes it easier for companies to do experiments in business with new emerging ideas.

By forming a joint venture with a well-known Indian company, the Nisa store gets a strong customer base and this is an advantage for the company to gain credibility more quickly. There are some drawbacks of joint ventures because when a company share some private knowledge, secrets and information with another company it loses control over intellectual property rights (Sun et al, 2021). There are some barriers in joint ventures like different cultures, management styles and different things which partners expect may cause a clash of interests. Conflicts may arise among participating companies due to unequal distribution of work, resources and responsibility as a result targeted profits and objectives remain unachieved and the success rate of joint ventures declines.

This partnership allows Nisa retail store to enter in new market and use their resources and skills effectively and efficiently to accomplish their objective. It helps to reach to those customers whom the company can`t reach before and can cater valuable products and services to its customers.

6. Recommendations

Navigation opportunities and risks

NISA needs adopted multiple perspectives so as to make use of the tremendous opportunities that exist in the Indian market. Initially NISA's understanding of the area learning requirements can be enhanced by establishing solid relationships with surrounding institutions of learning while taking use of their opinions. NISA World Connection is going to appeal to Indian students even more when material has been modified to meet specific educational necessities and cultural preferences. A flexible reaction mechanism and continuous market analysis are also essential for adapting to India's rapidly shifting educational scene.

Being proactive is crucial for handling risks. NISA needs to carry out comprehensive research on the regulatory and legal structures, addressing worries regarding the safeguarding of proprietary information and ensuring compliance to regional regulations (Fisher et al 2020). It is essential to establish contingencies in case of unexpected financial or political developments.

Diversity and inclusivity: For NISA to be successful in India, diversity and inclusivity need to be included in the process of decision-making. This involves being conscious of and appreciative of the excellent cultural variety that pervades Indian society. Having a workforce which is differed and reflects the local population and unique customs will assist the organisation grow more agile and accepted by the public.

Theoretical implications: Beyond recruitment processes, inclusiveness pervades all facets of NISA's programme. It is crucial to make certain that the course material is accessible of individuals from various socioeconomic strata, attentive to societal distinctions, and encompasses an array of views. It is recommended the NISA actively engages with communities in the area, recognising and combining their suggestions into its establishment and improvement of its educational initiatives.

References

Books and Journals

• Boranbay, S. and Guerriero, C., 2019. Endogenous (in) formal institutions. Journal of Comparative Economics, 47(4), pp.921-945.
• Fard, R.G., 2020. Factors Affecting Small Businesses in Developing Economies: The Role of Formal Institutions (Doctoral dissertation, Southern New Hampshire University).
• Fisher, G., Stevenson, R., Neubert, E., Burnell, D. and Kuratko, D.F., 2020. Entrepreneurial hustle: Navigating uncertainty and enrolling venture stakeholders through urgent and unorthodox action. Journal of Management Studies, 57(5), pp.1002-1036.
• Kapas, J., 2020. Formal and informal institutions, and FDI flows: A review of the empirical literature and propositions for further research. Economic and Business Review, 22(2), p.1.
• King, B., Fielke, S., Bayne, K., Klerkx, L. and Nettle, R., 2019. Navigating shades of social capital and trust to leverage opportunities for rural innovation. Journal of Rural Studies, 68, pp.123-134.
• Martin, D., Romero, I. and Wegner, D., 2019. Individual, organizational, and institutional determinants of formal and informal inter?firm cooperation in SMEs. Journal of Small Business Management, 57(4), pp.1698-1711.
• Steffen, B., Egli, F., Pahle, M. and Schmidt, T.S., 2020. Navigating the clean energy transition in the COVID-19 crisis. Joule, 4(6), pp.1137-1141.
• Sun, P., Doh, J.P., Rajwani, T. and Siegel, D., 2021. Navigating cross-border institutional complexity: A review and assessment of multinational nonmarket strategy research. Journal of International Business Studies, 52(9), pp.1818-1853.
• Sun, P., Doh, J.P., Rajwani, T. and Siegel, D., 2021. Navigating cross-border institutional complexity: A review and assessment of multinational nonmarket strategy research. Journal of International Business Studies, 52(9), pp.1818-1853.
• Tomec, T. and Gri?ar, S., 2023. Risk language barriers in a globalized world: insights from female managers from Slovenia. Strategic Management.
• Zhang, X., Wang, C., Jiang, L., An, L. and Yang, R., 2021. Collision-avoidance navigation systems for Maritime Autonomous Surface Ships: A state of the art survey. Ocean Engineering, 235, p.109380.

Online

• NISA. 2023. Online. Available through <https://www.nisalocally.co.uk/>