Discussion
Hayward Tyler (Luton) is a manufacturer of Industrial Pumps And Mechanical systems in the United Kingdom. Hayward Tyler’s history dated to 1876 when James Hayward and William Tyler founded the company. The company specializes in heavy-duty pumps and mechanical systems and has a long-standing reputation in the nuclear, oil, and power generating industries. They’ve expanded their industrial product line to include hydraulic components, hydraulic power packs, and flexible hoses and cables in response to increased demand. Their engineering talents include developing, manufacturing, and servicing cryogenic cold-chain and vacuum technology equipment.
Hayward Tyler (Luton) Plant is one of the U.K.’s leading industrial pumps and mechanical systems producers, with Hatfield, Luton, Camberley, and Derby facilities. The company has been involved in some of Europe’s most significant construction projects for over 146 years, producing everything from harbours to tunnels beneath London to hydroelectric dams at great depths throughout North Africa. The company has created a large international client base with its varied range of goods, such as industrial pumps, mechanical systems, air handling units, and heat exchangers. The firm also provides a comprehensive service that encompasses product design, engineering, and installation for the entire process plant. Because of the outstanding quality of their products, Industrial Automation Systems Magazine named Hayward Tyler one of the top 25 suppliers in the world.
Hayward Tyler (Luton) Plant’s expertise and competitive advantage enable the company to deliver solutions for complicated mechanical engineering, industrial equipment, and systems. The firm is one of the U.K.’s major makers of industrial pumps and mechanical systems, with expertise in various other fields. Hayward Tyler (Luton) Plant offers a diverse product line that includes liquid, gas, and vapour pumps. The company can also handle complete mechanical systems, from design to fabrication, installation, testing, and start-up. Hayward Tyler (Luton) also specializes in producing specialized mechanical engineering components for industries like mining, oil and gas, petrochemicals, and power production.
Hayward Tyler International has expanded its strategy into emerging areas by acquiring new businesses with significant market share. This is mostly driven by acquisitions of established businesses in the United States and Europe. The corporation is also looking to expand by creating new items that it can sell worldwide. Hayward Tyler’s international strategy is one of continuous expansion and growth. The corporation feels that because of its long-standing reputation as a global leader, it has a substantial market position that it can capitalize on. This reputation has helped them gain a large market share in some locations, and they are now trying to grow into other countries while maintaining a strong presence in their prior target markets.
Hayward Tyler Current International Strategy
The company is constantly looking for new markets through product creation or acquisitions. For Hayward Tyler (Luton) Plant, this entails a thorough examination of their competitors’ growth potential and strategic planning. The company has now expanded into several markets in the early stages of becoming a big industry. Even though such markets are still in their infancy, they have the potential for significant expansion due to global economic growth and rising energy demand.
The emerging markets in Africa, the Caribbean, and South America are what Hayward Tyler (Luton) is currently focusing on. The corporation has generated good profit margins in these sectors and is looking to expand into other markets to increase revenue. Southeast Asia, South America, and Turkey are among the target markets identified by Hayward Tyler (Luton) Plant as having low labour unrest risks. Hayward Tyler (Luton) believes that the company’s output levels in these locations are already high, indicating that labour costs and strikes are unlikely to be dangerous. The current global economic climate will also hamper Hayward Tyler (Luton) Plant. It will not profit from lowering energy prices, which are expected to continue to fall due to the economic crisis.
The worldwide economic downturn has severely impacted Hayward Tyler (Luton) Plant. The company avoided serious financial problems by enhancing efficiency, although it anticipates that recovery will take time. The Hayward Tyler (Luton) Plant is not directly affected by the present financial crisis, but it impacts raw materials and energy costs. Hayward Tyler’s (Luton) good performance in the preceding two years reflects this. Even though Hayward Tyler (Luton) has been able to enhance production and profitability, it is conscious that decreasing energy costs will provide little profit in the next years.
Many people have lost their jobs due to the global economic downturn. Increased energy prices have already weeded inefficient businesses, prompting some to consolidate to save resources and decrease costs. Hayward Tyler (Luton) Plant is concerned about future profitability and cash flow due to the worldwide economic slowdown. As these areas grow, they hope to gain a larger market share in new markets, but there are no assurances in this situation. For Hayward Tyler (Luton) Plant to continue to expand into new markets, it must remain competitive and keep its great reputation. Hayward Tyler (Luton) could be caught up in the same instability as many other companies and lose big contracts unless it enters a new market before its competitors. As a result, Hayward Tyler (Luton) Plant relies on its stellar reputation to keep existing clients and develop into new markets. Hayward Tyler (Luton) Plant is aware of the risk factors that could harm its future profitability and cash flow, but it has examined these risks and set systems to deal with them if they arise. Hayward Tyler (Luton) Plant is optimistic that it will continue to flourish due to this practical strategy despite the global economic crisis.
The Process of Market Selection, any Barriers to Entry that should be Considered
Falling energy prices will benefit Hayward Tyler (Luton) Plant. However, they may not directly impact the prices of their items. Their competitors determine Hayward Tyler’s (Luton) industry price, normally based on worldwide energy prices. Hayward Tyler’s (Luton) pricing will fall if they start to fall. However, the company expects to generate a significant profit due to decreased energy prices and lower raw material costs, which will allow it to cut manufacturing costs. As a result, profit margins may be maintained or increased. Lower energy prices will increase the costs of rival enterprises, as they will find it difficult to sustain profit margins against Hayward Tyler’s prices. As a result, Hayward Tyler (Luton) may gain fresh contracts in the future at the expense of their competitors.
Hayward Tyler (Luton) Plant is exploring new market entry options, such as establishing subsidiaries in target countries and forming a joint venture with another company. The joint venture technique allows Hayward Tyler (Luton) Plant to generate more money at first because they have to shoulder the financial expense of establishing the subsidiary. They can then hand over control of the subsidiary to it. When Hayward Tyler (Luton) Plant intends to attain a majority interest in a new market, the joint venture strategy is not appropriate since it would distort market dynamics, reducing Hayward Tyler (Luton) Plant’s chances of profiting through higher prices. On the other hand, the following entry approaches are appropriate for Hayward Tyler (Luton) Plant because they all allow the company to achieve a majority stake in the target markets.
Export is the earliest international trade type, and it is still an important way to break into new markets. Moving goods and services out of a country to be sold elsewhere is known as exporting. Exporting is often less expensive for Hayward Tyler (Luton) because it saves the marketing and advertising costs of forming a joint venture or subsidiary. Although exporting does not necessitate the establishment of high levels of management, it does necessitate the following of specific procedures and rules. Hayward Tyler (Luton) Plant will also be responsible for paying import charges on any products it imports, which could negate some of the benefits gained from exporting. As a result, if Hayward Tyler (Luton) Plant wants to export well, they must create close working ties with their supply chain in the target country, as the success of their export is mainly dependent on how well the supplier works.
The Current Global Economic Climate
Hayward Tyler must also consider potential competitors in the target country (Luton). In an export plan, the corporation may still be able to exploit its brand name as differentiation, but it will have little influence over its distributors.
This is time-consuming, especially if the Hayward Tyler (Luton) Plant intends to export regularly. As a result, this strategy is recommended for businesses with a stable consumer base, but not for businesses that have lately experienced rapid expansion, as they may not be able to meet demand. Africa has a big market that needs to be developed, but the lack of infrastructure and the harsh climate may make exporting difficult.
Figure 1 A graph showing an increasing trend in imports (Africa Trade with Europe)
Source: Created by Author
Companies must overcome challenges to succeed with an export plan by transport and communications links, currency exchange, tariffs, and smuggling. Exporters must also be mindful of local legislation that may affect their activities in the target nations. As a result, export tactics must be carefully considered before being executed. Exporting is often more expensive than other entry routes due to exporters’ increased transportation and insurance expenditures. They must also pay additional costs to comply with the target country’s legislation, including negotiating trade agreements, purchasing permits, and paying import tariffs. Hayward Tyler (Luton) Plant can export individual items or products. The specific product approach is best for Hayward Tyler (Luton) Plant since it lets them price their products more competitively.
The strength of a corporation is its brand name. Licensing firms might use this to acquire a competitive edge in their target market. A firm can licence a brand name to another company in exchange for royalties for using the other company’s name, image, or trademark in connection with the original brand. The licencing of the Post Office supermarket name, which Safeway and Tesco supermarkets utilized when they opened outlets in London’s West End, is an example of this. The licence option is also suitable for businesses with a distribution network.
For instance, Coca-Cola licences the sale of its drinks to other corporations in exchange for a part of the sales earnings. A company can also licence a manufacturing technique to another company in exchange for royalties for the product’s use of their name or branding. One example is the licencing of its production technologies to Minute Maid, which manufactures a wide range of items under the Coca-Cola brand name. A corporation can also franchise an existing brand name, but this is only appropriate for businesses with a strong presence in the target market. By preserving control over their products and operations, franchising uniquely helps businesses enter new markets.
Falling Energy Prices
Licensing and franchising are appropriate entry routes since they allow Hayward Tyler (Luton) Plant to keep its brands while expanding globally. On the other hand, licensing and franchising are more complicated than many other entry modalities since they require both sides to sign numerous legal agreements. As a result, Hayward Tyler (Luton) needs to be well-versed in the legal ramifications of licencing and franchising. This entry mode is not appropriate for Hayward Tyler (Luton) Plant because it would imply sharing ownership of its brand in the target market, potentially resulting in a lesser level of control than Hayward Tyler (Luton) Plant now enjoys. This entry option is designed for businesses with limited expertise and resources but a well-known brand name. For a charge, the company can licence its brand to another company.
Brexit has been dubbed a political earthquake that will profoundly alter U.K. companies’ business in Europe. As a result of the Brexit vote, U.K. businesses will almost certainly have to comply with new rules and regulations to continue dealing with the E.U. and its member states, resulting in higher administrative costs. Brexit may also cause economic uncertainty in the following months, harming trade between the U.K. and E.U. member states.
Figure 2 Graphical Representation of a Sharp decline in trade between U.K. and E.U. after Brexit
Source: Created by Author
It does, however, present a chance for British businesses to take advantage of more favourable trading conditions by rethinking their export strategies. However, Brexit may depreciate the pound, making it more expensive for British companies to export to countries outside the E.U.
If U.K. businesses want to keep access to the E.U. market, they will have to accept free movement of people and continue to follow E.U. rules. This implies they’d have to deal with more paperwork when seeking to export internationally. According to industry experts, businesses in numerous areas, including medicines, aviation, and finance, are expected to be disproportionately affected by Brexit and need to invest more in exporting their products abroad. The financial industry is confronted with difficulty because it relies on the closeness between financial centres like the United Kingdom and Europe. Brexit, on the other hand, could present chances for U.K. businesses. It has the potential to establish new trade links with nations outside the E.U., resulting in lower export prices for non-EU members. New changes in Commonwealth countries, which have great growth potential and offer a substantial market for British goods, may benefit businesses.
International Expansion Entry Modes
Businesses in the United Kingdom that want to trade with the E.U. after Brexit will need to carefully manage their supply chains to avoid needless fees. They must also ensure that their products comply with equivalent rules throughout E.U. member states and make adequate arrangements for transferring goods between E.U. and non-EU nations. Another crucial factor for businesses to consider is the cost of exporting to the E.U., which is anticipated to rise due to Brexit. Suppose British businesses want to keep dealing with the E.U. after Brexit. They must assess whether their products are subject to the same legislation in all E.U. member states and make suitable arrangements for shipping goods between E.U. and non-EU nations. They will also have to account for additional charges like tariffs and customs, which could alter their total cost of sales after export. Due to Brexit, companies may rethink their export plans, looking for new markets outside of Europe.
The Covid-19 outbreak is an example of how globalization and international trade may destabilize a country’s economy, health systems, and social structure. Before the epidemic, globetrotters were accustomed to having a good time across borders with no constraints. However, the Covid-19 outbreak disturbed the regular flow of international trade because individuals began to avoid visiting regions where they were more likely to become infected. Many businesses were forced to close because they couldn’t get the supplies they needed into the nation, and many more reported losses in the millions of pounds.
Figure 3 Graphical Representation of Covid Pandemic on Production
Source: Created by Author
Despite existing agreements such as the United Kingdom’s participation in the European Union, the epidemic is entirely under the control of the national government. The level of prevention and dissemination differs from one country to the next. Some governments, for example, have issued travel recommendations advising citizens to avoid visiting affected countries. Others have taken tougher steps, including closing borders between nations with domestic Covid-19 outbreaks and preventing travel between them. Some countries have even placed limits on imports from afflicted areas, resulting in higher administrative costs for multinational enterprises.
Since of the inclusion of new technology and globalization, firms will have to examine their demands for international trade in more ways than before. GPS and satellite communication have aided third-world countries in expanding internal trade and encouraging small firms to export their goods across national borders. At the same time, globalization has made it easier for corporations to move commodities from one country to another than it has ever been before. This has helped firms in rich countries like the United Kingdom, the United States, and Japan gain from increased rivalry with developing countries, focusing on exporting their products rather than importing cheaper items.
Export
According to Hayward Tyler, globalization threatens the survival of developing U.K. businesses as new markets emerge and trade opportunities with their populations open up. As a result, businesses will need to be more proactive in their international trade strategy and discover ways to successfully export their goods outside of Europe. When it comes to international trade, globalization has brought its advances and problems, which U.K. businesses will consider. As a result of globalization and technical advancements, U.K. businesses are increasingly aiming to relocate their manufacturing operations to lower-cost countries. The textile industry, for example, has been impacted by globalization as companies shift production to emerging countries such as China and India, where labour costs are lower. It is difficult for these countries to govern imported goods in the same way that industrialized countries such as the United Kingdom can. As a result, it is very easy for these multinational companies to dump their products on developing nations with little protest.
This is an excellent example of how globalization and technological advancements have influenced international trade, demonstrating how rich countries can take advantage of underdeveloped countries as customers of their goods. Globalization has benefited U.K. businesses by allowing them to move production units offshore to save money and enhance revenues. However, this has resulted in joblessness in the United Kingdom, making it difficult for employees with lower skills to obtain work. This emphasizes U.K. companies’ need to carefully examine their international trade strategy before relocating production units overseas.
Conclusion
Globalization and international trade are two of the most significant variables influencing the international economic landscape. When preparing for international trade, U.K. businesses must consider both of these. Although globalization has provided a variety of opportunities for U.K. businesses to relocate their manufacturing operations abroad, they must be aware of the additional challenges and risks that come with it. Similarly, U.K. businesses will need to be cautious about their foreign trading strategy when doing international commerce. As more enterprises from poorer countries enter the market, U.K. businesses will need to figure out how to compete effectively. The issue for U.K. businesses is to figure out how to take advantage of the export opportunities given by globalization and international commerce while avoiding potential drawbacks. Covid’s ability to spread quickly from one country to another has significantly impacted international trade. The outbreak of CoVid-19 is a wake-up call for U.K. firms, highlighting the importance of considering foreign commerce while expanding their product’s market. Suppose U.K. businesses can figure out how to compete effectively with those in emerging countries while also overcoming the challenges posed by globalization and international commerce. In that case, they will have a bright future.
Additionally, growing awareness and improved technology may make it easier for British companies to engage with consumers in developing nations and offer them better access to their products. On the other hand, globalization and international trade have brought issues that U.K. businesses will deal with. As a result, before establishing their trading objectives, U.K. businesses will need to examine the impact of both of these elements in international trade.
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