Coffee Shops in Europe Essay

Some of the considerations to put in mind before going internationally include the taxation rules and regulations, whether the area has potential customers who will make the business to flourish, preferences of the residents and availability of resources in the area or country. Some of the reason why companies should consider going international or global include capturing of markets before competitors, and it's a chance of the business to improve and expand their services or products and an opportunity for the industry to grow the global economy (Edquist & Hommen, 2009). In today's world economy, companies ranging from small to giant corporations are developing and establishing operations in many foreign markets. These expansions have provided several advantages to their owners and shareholders, and they include diversification, foreign investments and more significant opportunities for new markets.

Selected country Based on the research and analysis of all available data I would advise Marvin and Smith to expand their coffee shop business in Denmark. As a result, Denmark has for many years been a member of collaborative organizations such as EU and WTO. These organizations together with Denmark have actively lobbied for the removal of trade barriers which acts as a hindrance for free trade. Denmark has a well-established economic policy and seeks to regulate all financial activities and inflation by implementing fiscal policy (Grund & Breeksema, 2013). Consequently, Denmark has a monetary policy which has increasingly aimed at ensuring stable exchange rates and support for the exchange rate policy. Predominately, Denmark is a coffee-drinking nation, and it is estimated that citizens of Denmark consume approximately twenty million cups of coffee every day.

Besides the collective agreements, there exists Tripartite cooperation, and these are special agreements between employers, state and trade unions. These agreements include regulations on the rights of both the employer and employee and role of mentioned trade unions (Brücker & Upward, 2014). The availability of labor and flexible payments offers Marvin and Smith an opportunity to expand their coffee shop business in Denmark. Besides having a ready market for foreign investors, Denmark is enriched with both natural and human-made resources which make it a more competitive country. The country is well situated with power generating machinery, making the economy a twenty-four-hour working economy. Ethical considerations and structural challenges Ethical considerations by the coffee shop business include a duty to act in a way which best fits the long-term interests of all the shareholders and specifically the beneficiaries.

To work in a fiduciary manner which does not harm the environment negatively and has a social cooperate responsibility in issues which affect performance and investment portfolios. Some of the existing structural challenges to expanding into Denmark include time consumption during the enforcement of contracts. It takes four hundred days for one to enforce a contract effectively. Another set fundamental challenge to expansion in Denmark is the payment of taxes; there exist ten different types of tax payment, they include insurance, property and insurance taxes. Free samples People generally love freebies. By giving out free samples to customers especially new ones will win prospective customers. Free samples account why some businesses gain while others lose customers. Alternatively, by taking a tray of mini coffees to the streets on the outskirts of your business will earn the business new customers.

Promote through Social media For the last two decades, social media has become a platform where entrepreneurs and businesses can reach more and broader audience. Implications Gaining competitive advantage Expanding business to other countries will enable the coffee shop business to gain a competitive advantage over the existing opponents. When Marvin and Smith venture into countries and markets where competitors do not often operate, they will have the first mover advantage. This will allow them to build strong brand awareness among the residents before their competitors. Going global will also help the business acquire new technological an industrial ecosystem which can significantly boost the company in its operations (Petersen, Pedersen & Lyles, 2008). When both Marvin and Smith expand their business globally or internationally, they will increase the business’ perceived reputation and image.

For instance, the two above rates used include profit margins; these are used in assessing the ability of a business to turn revenue available into profits. Return on assets measures one's ability to use available assets to produce net income. The yield on equity compares the net benefit to shareholders' equity. Based on the above calculations, it is evident that the coffee shop run by Marvin and Smith has a low-profit-margin ratio; this means that the coffee business isn’t effectively turning revenue into the required profits (Saleem & Rehman, 2011). This particular scenario could be as a result of low prices, high costs of operating expenses and goods sold. The availability of labor is an assurance for consistent continuity in business activities, availability of communication and transport is a guarantee for customers who might be traveling during the day and night.

Denmark provides laws which easily allow investors to deliberate on the new market; they include the Danish Companies Act (DCA) and Entrepreneur Companies (EC). Through the use of effective marketing strategies, the coffee shop business can flourish in the new invested territory, and they include the use of website, social media and local newspapers. The expansion of the new company will have a competitive market advantage since not many competitors have ventured into that specific market. The business expansion idea by both Marvin and Smith is viable and can provide an opportunity for the business to flourish in a new market. Bloksgaard, L. , & Rostgaard, T. Denmark country note. In International Review of Leave Policies and Research 2014(pp. International Network on Leave Policies & Research.