INTERNATIONAL BUSINESS

International Business

International Business

Introduction

The companies in today's competitive world are facing various challenges related matured markets, cutthroat competition and rivalry, consumers ever increasing needs and to sustain in a country while combating the macro economic variables such as political, legal, social and technological. These conditions have thus made essential for the companies to expand in the international frontiers by exploiting the market conditions prevailing there. International marketing strategy is defined as the opportunity of arranging company's products, technology, human resources, management and other resources to enter into a foreign country. International market strategies help companies analyze and exploit the market opportunities by setting their goals, resources and policies accordingly to channelize their international activities toward a sustainable international expansion.

It is generally considered that maintenance of the success of the business totally depends on a company's strategies to operate it and strategies to identify and exploit the various opportunists that modern market conditions are throwing to them. Only the successful strategies of business will decide the success or failure of an organization in an international market. The main objective of this research report is to select a country and expanding the market of company and product in that country. The findings of this research report will enable to examine how an organization can expand its business operation in international market with the aid of its effective and efficient strategies in developed country like United Kingdom.

Selected organisation

Saudi Basic Industries Corporation (SABIC) is the largest multinational company in the Middle East by market capitalization (more than 60 billion U.S. dollars) and one of the ten largest producers of petrochemicals in the world. The group is a world leader in the production of polyethylene, polypropylene, glycols, methanol, MTBE and fertilizers and is also the fourth largest polymer producer.

SABIC, headquartered in Riyadh, was found in 1976 when the Saudi authorities have choose to utilize the hydrocarbon gases released by oil production as feedstock for production of chemicals, polymers and fertilizers. The Saudi state owns 70% of its shares, the remaining 30% owned by private investors in Saudi Arabia and other countries of the Gulf Cooperation Council.

SABIC Europe, headquartered in Sittard is the Netherlands, employs approximately 2,450 people and operates in Geleen (Netherlands) and Gelsenkirchen (Germany), two petrochemical plants for the production of polypropylenes, polyethylenes and hydrocarbons liquids. These products are marketed through a European network of sales offices and logistical hubs. In 2005, SABIC Europe produced 2.5 million tonnes of polyolefins and 3.1 million metric tons of basic chemicals, mainly for the European market.

BCG Matrix

With respect to the BCG Matrix, SABIC lies in the Cow region. This means that the new product will generate more cash for the company and tries to capture more of the share of the UK market. The method is to estimate the proportion of each product on the market and assessing the extent of growth in the relevant market (industry). Assessment of market share is the result of analysis of sales of all industry participants, and determining the ...