In today’s interconnected society it is essential to understand the world in an international context. Increasingly companies are looking for graduates who can solve cross-cultural problems and think on a global scale. With a degree in international business, you can follow a career in international management, finance, trade or a multinational company.
What is International Business Administration?
International Business Administration focuses on key business disciplines within an international context. Introducing the foundations of finance, marketing, supply chains, human resources and operations, International Business Administration covers the needs of all businesses.
“If you study a business programme, it’s always from the company’s perspective. You’re interested in surviving, gaining market access, beating your competitors and making a profit in the long-run”, explains Adri Meijdam MA, Executive Director for IBA at Erasmus University Rotterdam.
This degree develops a broad range of transferable skills, from research and planning to presenting and reporting, and prepares you for international management or consulting roles.
Why study International Business Administration?
There are many benefits of studying International Business Administration:
1. Gain an international perspective
You will study global challenges companies face, looking at international boundaries, trade, global economics and how to negotiate with diverse cultures. This approach to problem solving will broaden your world view and help you understand different perspectives. IBA is a popular degree among international students so even during your studies you will gain valuable experience of working with people from all over the world.
International Business Administration is a broad degree and introduces you to a range of skills that employers are looking for. As you progress through your degree programme you will begin to shape your course and specialise in the business functions you are most interested in. IBA graduates can look forward to a wide range of job opportunities in management, marketing, accounting, corporate finance, consultancy or even human resources.
4. Solve commercial challenges
Study business administration and you will analyze global and local business challenges and find strategic solutions. Through researching international markets and negotiating with other cultures and countries, you will develop the skills needed to follow a career in consultancy or management for a multinational company.
5. Build your business knowledge
How to manage diverse teams, improve financial performance, research international competitors and redesign business processes are just some examples of what you’ll learn during an IBA. This core knowledge is essential to the running of any business, and you will further develop your skills through elective modules in key areas.
Degree preparation
The International Foundation Year in Business, Economics, and Social Sciences will prepare you for studying IBA at one of our partner universities in Holland. Find out about modules, assessments, term dates, and degrees you can progress to after this course.Explore pathway
Why study IBA in Holland?
International community
Holland is a popular choice for international students, with 100,000 choosing to study here every year. For IBA students, the international classroom is a familiar environment and courses are designed to develop cross-cultural skills. Working in multicultural teams and listening to diverse opinions is ideal preparation for the world of work.
Degrees taught in English
Dutch universities offer degrees taught in English so there are plenty of options for students interested in studying abroad. Universities also have strong industry connections, giving you the opportunity to work with real businesses and develop transferable skills. For example, IBA at Erasmus University Rotterdam puts theory into practice as students analyse an existing company and write and present a business plan.
Exchanges around the world
Many universities offer international exchanges or a semester abroad after the first two years of your degree. For example, International Business Administration at Tilburg University gives students the choice of international destinations such as Hong Kong, Australia, and Italy. At Tilburg, students also benefit from one of the biggest annual recruitment events in Holland – Business weeks Tilburg – linking students to multinational companies.
International exchanges provide an ideal opportunity for you to experience another culture during your studies and impress future employers. If you want to study IBA in Amsterdam, VU Amsterdam offers students the chance to spend a semester at one of their partner universities, such as University of Sydney, University of Leeds or University of Illinois.
Build your business network
University is the perfect place to start building your business network. You will be learning from lecturers with experience in their fields, make valuable connections during internships and meet classmates who have ambitions for high-flying careers. Be sure to make the most of career services on campus where experienced advisors can guide you on your career direction. Look out for networking opportunities such as the Business Experience Days at VU Amsterdam where companies deliver presentations and workshops for students.
The best cookware worth the investment is durable, non-toxic, and lasts a lifetime. My favorite brands of cookware check all these boxes and are made from materials including stainless steel, cast iron, glass, and ceramic.
Investing in cookware is like investing in the best Vitamix or other kitchen appliances. It may cost more money upfront, but it more than pays for itself over the long haul.
So today, I wanted to deep dive into my cookware and chat about the different pieces I use the most, why I love them and why they’re worth investing in (or not investing in). This post isn’t sponsored by any of the brands you see highlighted, I’m just sharing what I truly love and use in the kitchen. Let’s jump right in!
WATCH MY BEST COOKWARE VIDEO
In this video, I’ll walk you through the various pots and pans in my collection and explain what I love (or don’t love) about them.
After you’ve watched the video, scroll down for more information and links to all of the individual pieces I mentioned in the video.
STAINLESS STEEL
My All-Clad stainless steel pans are most definitely the workhouse cookware in my kitchen and what I use on a daily basis, for everything from frying eggs, to sautéing chicken and vegetables.
The set you see me use in virtually every video I bought right out of college over 20 years ago, and it’s still as good today as it was back then. Even if it’s not quite as shiny or clean. But that’s okay because it just means that it’s been lovingly used in thousands of healthy recipes over the years.
The great thing about All-Clad is that it’s long-lasting, durable, provides uniform heating across the pan, and it doesn’t react with any foods or ingredients. And while it’s not cheap, these pots and pans truly will last a lifetime so they’re worth the investment.
I originally bought an All-Clad set, which included various sized pots and pans, but you can also buy individual pieces, depending on how many people you cook for or what type of cooking you do, and create your own set. Either way, just know that investing in high-quality stainless steel cookware is definitely a smart choice.
When it comes to enameled cast iron, I always have a hard time choosing between Staub and Le Creuset. I just love them both and have several pieces from both brands, so don’t ask me to choose a favorite.
Enameled cast Cast iron is durable and incredibly easy to clean, in fact, most of the time I just use a sponge to clean it. And unlike regular cast iron, enameled cast iron doesn’t have to be seasoned.
I use my enameled cast iron most often in the fall and winter when I make soups and stews or braise meat. And it can easily transfer from the stovetop to the oven, just as stainless steel can. If you take good care of these pieces, they can certainly last a lifetime so they’re worth the investment.
Simple, non-enameled cast iron cookware takes us back to an older time, and that’s because it truly has been around for over a thousand years.
Cast iron is sustainable, probably the most durable cookware in my kitchen, inexpensive, and healthy to cook with. It may take a bit longer to heat up, but when it does come to temperature, it can maintain that heat perfectly. And when it comes to searing a steak or getting crispy chicken skin, it’s really hard to beat.
But the best part about cast iron is that it’s the original non-stick cookware. A properly seasoned cast iron pan will easily release eggs, meat, and pretty much anything you toss in it.
You do have to be a little careful with acidic foods, so I recommend enameled cast iron or stainless steel for recipes like shakshuka. But with how cheap cast iron pans are, it definitely makes sense to have a couple of these in your kitchen.
When it comes to baking or roasting, you’ve seen me use both glass and ceramic pans. Brands like Pyrex and Corning Ware are budget-friendly, while higher-end brands include Le Creuset, Staub, and Emile Henry.
Glass and ceramic won’t release any chemicals or toxic metals into your food and they’re extremely durable, as long as you don’t cause any rapid change in temperature.
I use these all the time for casseroles and baking chicken breasts and they can easily go from the oven straight to your dinner table. So I do recommend you have a couple of these pieces in your cookware lineup.
Alright, I’ve left this one to last because many of you know that I’m not a huge fan of non-stick cookware, due to health and safety reasons.
Non-stick pans fall into two categories – those coated with polytetrafluoroethylene (PTFE) and those coated with ceramic. PTFE is the classic non-stick surface you might know better as Teflon, and ceramic pans might be called “green” pans.
Historically, PTFE pans also contained another chemical called PFOA, but this was deemed to be cancer-causing and affect growth, development, and reproduction, among other things. So, for several years now, PTFE pans no longer contain PFOA, which is good, but that chemical was just swapped for another called GenX and we don’t yet know the long-term ramifications of it.
The problem with PTFE cookware is that at high temperatures, the nonstick coating can break down and release toxic fumes and chemicals into the air and food. And if the surface coating starts to scratch and wear, it can also release toxic chemicals into your food.
So you might be thinking, well ceramic non-stick must be better, right? Well, not so fast. Ceramic pans are marketed with buzzwords like “green” and “healthy” but the surface of ceramic pans actually don’t last as long as PTFE pans. And the ceramic coating on non-stick pans is not the same ceramic that you’d find in 100% ceramic bakeware. It’s a bit misleading.
The big grey area with ceramic non-stick pans is that they contain nanoparticles that can enter our cells, and there’s not enough research or long-term scientific studies yet to understand the potential adverse effects they may have.
So for all those reasons, I’m not a proponent of non-stick, but I also like to keep things real. And I’ll be honest, I still have a couple of non-stick pans in my kitchen that I use pretty infrequently.
IF YOU’RE GOING TO USE NON-STICK HERE ARE MY 3 BIG TIPS:
Always cook on low or medium and never use a high temperature.
Always use wood or silicone spatulas so that you don’t damage the surface of the pan.
And replace your non-stick pans every couple of years or as soon as you see the surface start to wear.
Because non-stick pans are not pans you will have long-term, I don’t recommend investing in more expensive ones with stainless steel bottoms. The bottom will outlast the top. So it’s just not worth the money.
The ones I have, which are Ballarini pans, have remained perfectly non-stick for a couple of years now and so far there’s no sign of destruction to the surface, but again, I’m super careful with them.
The big takeaway is that non-stick pans should not be your daily, workhorse pans in the kitchen. There are far too many better, healthier, and more cost-effective options that will last a lifetime.
I should also mention that there’s a 100% ceramic pan, called Xtrema on the market that has been getting praise, but I tried this pan for several weeks and was personally not a fan of it. My complaints with the pan:
The lowest temperature setting must be used at all times.
I found it didn’t heat evenly (there were hot spots).
Even when using oil I found that it was not non-stick as it claimed.
It’s not durable. It’s prone to cracking and can more easily break.
UTENSILS
Lastly, when it comes to utensils I do have a couple of favorites, including stainless steel, wood, and silicone. The stainless steel utensils from Crate and Barrel are strong and durable. They never bend or warp, no matter how much pressure you put on them. I use these with all my All-Clad pots and pans.
So if you’re going to invest in cookware this holiday season, I highly recommend you invest in All-Clad, Staub, Le Creuset, and Lodge Cast Iron. They’re truly the best cookware brands with pieces that will last a lifetime, and are worth the money!
International Business is catching attention by fire and being applauded for its sustained growth and expansion in the last few decades. Most goods, services, skills and information are being marketed globally on daily basis. The self-reliance theory of Nations has taken a back seat and now a new wave constituting procurement and supply of goods and services is setting in. Countries are now being intertwined with respect to trade and investment. The very reason behind this proximity between nations is rather hidden in the fact of revolutionized system of communication and technology.
Big businesses profit from, as well as contribute to, the skyrocketing interdependence of nations. Companies like Motorola have operations in multiple countries and derive revenue accordingly through its foreign operations.
International business and globalization are two sides of the same coin and go hand in hand. The companies are required to equip themselves to tackle the intricacies of the foreign environment since it will boost the business operations globally.
What is International Business and its meaning?
When the activity of business happens to transcend borders triggered by exchange of goods and services, then it is deemed to be called as international business. The word International business cannot be crystallized into a single universally accepted definition, despite there being many definitions. It involves not only movement of goods and services but also intellectual property, technology and capital.
Business environment can be characterized in terms of:
Totality of external forces
Specific and general forces
Inter-relatedness
Dynamic nature
Uncertainty
Complexity
Relativity
Key players in international business may include multinational corporations, small businesses and entrepreneurs
Elements of business environment
There exist 5 most important elements that influence business environment are as follows;
Economic
Social
Technological
Political
Legal
Importance of international business environment
The factors that cause or drive companies to engage in international business can be classified into two parts: pull factors and push factors. Pull factors are proactive reasons that draw a company to foreign markets in order to achieve relative growth of the company. The push factors are compulsions of domestic market prospects, such as market saturation, that propel firms to internationalize.
International business environment is important from various point of views, since it helps in following ways:
Helps in expansion
Helps in managing product life cycle
Technology advantages
New business opportunities
Proper use of resources
Availability of quality products
Earning foreign exchange
Helps in mutual growth
Investment in infrastructure
International Business: Scope
Scope of International business has a broad reach since it concentrates on specific issues and opportunities that arise in the business world when a company operates on a global scale. International business is a broad area of business that has been tailored to absorb unique characteristics of the global climate.
In comparison to the domestic world, foreign companies operate in highly unpredictable environments wherein the rules are often vague, inconsistent, and subject to rapid change.
International business is inclusive of trade in services, foreign trade, portfolio investment and direct investments (FDIS)
International Business: political environment
The role of politics in business environment has long been implicitly recognized. Variations of government or state officials, along with aggression and conflict, are common political occurrences. Political risk in business occurs as the business climate undergoes difficult-to-predict changes as a result of political reform. These shifts in the market environment are considered a threat because they have the potential to greatly affect a company’s profit or other objectives. Constraints on the firm typically encompass expropriation, restrictions on remittance of profits, discriminatory taxation, and public sector competition.
International business: technological environment
With ever changing technology and unreliability of external factors, the company that understands it and adapts its operations likewise shall have an upper hand in capturing the market. The companies must take into account the fact that technology becomes obsolete within a blink of eye and therefore must readily adopt its newer forms to have a competitive edge.
International Business: cultural environment
The cultural environment in which the international business has to operate is quiet complex in itself since fundamental values and attitudes differ from country to country. Point to be noted is that the culture is a byproduct that has stretched over a long time in evolving and dispersing. It can cast pose major conflicts.
International Business Strategy
International business strategy involves balancing an MNE’s core competences (in contrast to competitors) with the challenges and opportunities encountered in geographically dispersed environments that cross international borders.
Types of International Business Environment
The following types of international business environment can be enlisted as follows:
Imports and Exports
Licensing: Franchising
Outsourcing and Offshoring
Joint Ventures and Strategic Partnerships
Multinational Companies
Foreign Direct Investment
International Business: Benefits
International business offers variety of benefits to both the countries and business entities which are as follows:
It encourages a country’s specialization in the production of goods that are both high-quality and affordable.
It aids a country’s growth prospects while also providing opportunities for jobs.
Individuals may use goods and services created in other countries to boost their quality of living, thanks to international business.
It assists companies in increasing revenues by selling goods in countries where prices are high.
Is International business affected by demographic variables?
Our main query at hand is to know whether demographic environment does not influence the international business decisions? To answer this first we should know about demographics. Demographics are a set of attributes that can be used to assess a consumer’s product preferences or shopping patterns. Some companies use these characteristics to identify their most valuable customers. Some of the demographic variables that affect international business are as follows:
Income’s influence
Age variables
Geographic Regions
Level of education
What are the factors that affect international business environment?
Political Factors: International business is vulnerable to political environment of a country. To be specific political risks might include war, revolution, civil disturbance, closed trade routes, nationalization, trade embargos and inconvertibility of local currency. Government policies can have a profound effect on business through introduction of new regulations and legislations.
Financial and monetary factors: International transactions are exposed to financial risks such as cost and availability of capital in a number of countries. Further fluctuation in exchange rates can have a tremendous impact on the economic balance of international business.
Legal Factors: Parties acting internationally are subject to several jurisdictions. The multiplicity of laws can lead to the delicate situation of mutually exclusive obligations.
Interpersonal factors: It constitutes barriers to effective communication. Typically parties to an international business find it difficult to understand, predict and monitor the behavior and wants of other side.
Culture: Cultural differences pose a risk factor and is a source of frequent conflicts and act as a barrier to effective conflict management. Fundamental values and attitudes differ by large scale.
Conclusion
In the nut shell it can be concluded that different markets, cultures, legal systems, economies, and technology contribute to the complexity in international business, all of which must be incorporated into business policies and practices. International business devise strategies to take advantage of the opportunities presented by the environment. As a direct consequence, international business differs from domestic business due to differences in the environmental dynamics and operational nature.
There was a time when consumers only had access to goods and services that were available locally. Their choices were limited by what they could access on foot, by horse, or by carriage. This is still the case for many people around the world, and in rural and remote parts of the U.S., it’s still necessary for families to make weekly trips to town to stock up on food, household items and other necessities. However, with the rise of Internet-based business (think Amazon), there’s been an explosion of international trade, and more and more consumers essentially have the world at their door. Of course international trade isn’t just a twentieth-century phenomenon. Trade across borders and between cultures has been a feature of human civilization for centuries—there’s evidence of this dating back as far as the nineteenth century BCE. The Silk Road, one of the best-known and most enduring “international” trade routes, began sometime around 200 BCE and for centuries was central to cultural interaction from China through regions of the Asian continent all the way to the Mediterranean Sea.
So, if cultures and nations have been trading with one other for four thousand years, what makes today’s business landscape different? The answer lies in the distinction between international business and globalization.
International business refers to commerce in which goods, services, or resources cross the borders of two or more nations. This is what the Egyptians were doing when they sent goods across the Red Sea to Assyria. Globalization is broader than international business and describes a shift toward a more integrated world economy in which culture, ideas, and beliefs are exchanged in addition to goods, services, and resources. Globalization implies that the world is “getting smaller”: As a result of new transportation and communication technologies, people around the world can more readily connect with one another—both virtually and geographically.
The following video provides a good introduction to the causes and consequences of globalization.
The video, above, provides a good bird’s eye view of the affect of globalization on business—from opening up new markets to increasing the level of competition within markets and industries. Let’s take a look at particular example, though, to think through the various implications of conducting business on a global scale. Consider McDonald’s, which was started by two brothers in San Bernadino, California, sixty-eight years ago. As a result of globalization, nearly 69 million people in 118 different countries eat at McDonald’s every day. The first McDonald’s outside the U.S. and Canada was established in Costa Rica in 1970, and since the 1990s, most of the company’s growth has taken place in foreign countries. The process of building a global presence, entering new markets, and capitalizing on growing international demand for American fast food has enabled McDonald’s to expand from a single location to a global corporation with revenues in excess of U.S. $25.4 billion in 2015. [1] However, entering new markets—whether at home or abroad—means contending with increased competition in those markets, including competition with other globally minded companies. In 2010, Subway surpassed McDonald’s to become the largest single-brand restaurant chain and the largest restaurant operator globally.
What is it like for companies that decide to take advantage of global opportunities as McDonald’s and Subway have? Return to the discussion of “external forces” in module 1, but now consider them from a global business perspective. Globalization certainly means that businesses can reach consumers around the word more rapidly and efficiently—thanks to cell phones, airplanes, and the Internet, we are all so much more interconnected and “accessible” now. But globalization also means incredible complexity. The list below sketches out just a few of the complexities and challenges that an American fast-food company like McDonald’s faces when it takes on the global business environment.
The Global Economic Environment: McDonald’s is a corporation based in the United States, where all business transactions are conducted using the U.S. dollar, but there are 167 official national currencies in the world, each with a different value and purchasing power. Imagine trying to balance the corporate checkbook at McDonald’s when your deposits have been made in more than a hundred different currencies.
The Global Legal Environment: In Greece, there is a $650 fine for eating ice cream at certain historic, artistic, and culturally important sites. If you are the operator of a McDonald’s near the Parthenon, should you remove the ice cream cones and McFlurries from your menu to protect your customers against being fined, or not?
The Global Competitive Environment: How does McDonald’s recapture the number-one position it lost to Subway in 2010? The company may need to make substantial changes to its operations, menu offerings, and/or marketing tactics. This is a steep, uphill climb in the United States alone, but consider trying to accomplish it in 118 different countries in 188 different markets—where you are competing not only with other global U.S. fast-food companies like Subway and KFC but with local ones, like “McKebab,” as well!
McKebab, a fast-food restaurant in Slovenia whose name and golden “M” bear a striking resemblance to McDonald’s.
The Global Technological Environment: What does technology have to do with fast food or McDonald’s? Consider the company’s presence in China, where there are nearly 1.3 billion mobile users, and say hello to “McDonald’s Next,” a “modern and progressive” version of the restaurant that first opened in Hong Kong, featuring mobile-phone-charging platforms, free Wi-Fi, and self-ordering kiosks. This next generation of McDonald’s is a response to increased expectations around speed, service, economy, and availability across established and developing economies, mostly fueled by consumers’ growing access to affordable technology. As global businesses respond to demands created by technology, they must also leverage technology to move products, people, and supplies around the globe in a cost-effective and efficient manner.
The Global Social Environment: McDonald’s has had to adapt in countless ways to meet the demands of its customers around the world. While it prides itself on offering a consistent, internationally recognizable menu and brand, the company has also had to cater to local dining preferences and customs. In 1995, for example, the first kosher McDonald’s opened in a Jerusalem suburb. In Arab countries, the restaurant chain offers “halal” menus, which comply with Islamic laws governing the preparation of meat. In 1996, McDonald’s entered India for the first time, where it offered a Big Mac made with lamb called the Maharaja Mac.[2]
McDonald’s Maharaja Mac
McDonald’s is not a complex business—after all, it sells inexpensive burgers and fries, not automobiles or airplanes or pharmaceuticals—but clearly the global environment presents challenges even for them. You may be wondering why nations and businesses decide to take on such challenges, given the ongoing difficulty, risk, and uncertainty. We’ll investigate this question throughout the remainder of this module.
Absolute and Comparative Advantage
Introduction
Consider the humble banana. Even if you’re not a big fan of this yellow fruit, you’ve surely seen them in the grocery store or in a market somewhere. If you walked through a U.S. city with a banana and asked people to identify it, it’s unlikely you would encounter anyone who had no idea what it was. What if you did the same thing with a picture of a bananatree? How many people could identify it? Maybe some, but not all. Why is that? In the United States, bananas are grown in Hawaii, and not everyone has been to Hawaii. In fact, most of the bananas in the world are grown in Ecuador. If we Americans love bananas and don’t live in Hawaii and can’t get to Ecuador regularly, without global trade, we’re out of luck: no bananas for cereal in the morning or as snacks during the day and, worse, no banana splits at the local ice cream parlor. Why do Ecuador and Hawaii trade away their bananas instead of keeping them all to themselves? Probably because, although bananas are delicious and nutritious, it’s hard to build houses out of them. Instead, the state of Hawaii and nation of Ecuador choose to trade their bananas for things they lack, while considering the cost and profitability of exporting their product.
Ecuador and Hawaii offer an example of comparative advantage. Because bananas are not grown or readily available everywhere in the world, Ecuador and Hawaii can profitably export theirs to banana-less places like Iowa and Canada. At the same time, Ecuador may need computer systems to keep track of all of those bananas they are selling, but Ecuador is not a technologically advanced economy like the United States. The United States has a comparative advantage in computers, so we sell our computers to Ecuador and let them concentrate on selling us bananas.
The Concept of Advantage
In order to understand why businesses are willing to operate in a complex global environment, we must first understand two fundamental concepts that drive almost all business decisions: absolute and comparative advantage. Countries and companies are willing to assume the risk of engaging in global trade because they believe that they have an advantage over the competition that they can turn into profits. Not all countries have the same natural resources, infrastructure, labor force, or technology. These differences create advantages that can be exploited in global trade, to a country’s (or company’s) benefit.
Absolute Advantage
An entity (country, region, company, or individual) is considered to have an absolute advantage if either of the following conditions exists:
(1) It is the only source of a particular product, good, or service. This kind of absolute advantage is very rare and usually depends on a particular natural resource being available only within a certain region or country. An example might be the coveted edible red bird’s nests found only in the caves of Thailand (and prized in Chinese cooking as the main ingredient in bird’s nest soup). Similarly, if Ecuador were the only place in the world where bananas could be grown, it would have an absolute advantage. However, suppose some sneaky banana spy goes to Ecuador and pilfers some banana tree seedlings and takes them back to her home country and begins growing and exporting bananas. At that point Ecuador no longer has an absolute advantage on the basis of the “only-source” condition.
(2) An entity is also considered to have an absolute advantage if it is able to produce more of something than another entity while using the same amount of resources (factors of production). When the sneaky banana spy started growing bananas in her home country, she didn’t actually take away Ecuador’s absolute advantage, because Ecuador can produce more bananas using the same amount of resources (labor, land, water, equipment, etc.). Put another way, Ecuador’s direct cost of producing bananas is lower than the banana spy’s. Assuming that the bananas can be grown in the new country, it will take that country a very long time to match Ecuador’s skill, efficiency, and output level, and until it does, Ecuador will retain its absolute advantage.
Comparative Advantage
An entity (country, region, company, or individual) is considered to have a comparative advantage over another in producing a particular good or service if it can produce the good or service at a lower relative opportunity cost.
You’ll recall from the economic environment module that opportunity cost is the value of the next best alternative. (The video, below, also includes a refresher on this concept.) Since countries and businesses have limited resources, they are forced to make choices about how they allocate those resources. As a student, you understand opportunity cost better than you think. You have a limited amount of time, and you must choose between reading this module and going out with your friends, because you can’t do both. If you choose to go out with your friends, then the opportunity cost might be failure on your next exam because you did not use the time to prepare.
Ecuador has a comparative advantage in bananas over a long list of countries, including the United States. This comparative advantage is even better understood when you consider that their next best alternative product is oil. The Middle Eastern countries have been pumping oil from the ground for as long as Ecuador has been growing bananas. It makes as much sense for Kuwait to attempt to export bananas as it does for Ecuador to export oil. It’s the reality of comparative advantage that encourages countries and businesses to do what they do best—leaving the production of other goods and services to other countries or companies—and in so doing, focusing on producing goods and services where they have advantage, thus maximizing their opportunities in a global environment.
The following video provides an excellent illustration of comparative and absolute advantage and explains why they are such important considerations in how countries decide to specialize and trade.
Still unsure about how these different kinds of advantages play out in the real, complex world of global trade? Up next: Try your hand at ruling your own island nation and choosing trade partners on the basis of comparative advantage.
Game: Trade Ruler
It’s one thing to talk and read about global business and another to actually engage in global trade. You don’t have the time or resources to set up your company, apply for permits, establish trade agreements with other nations, and manufacture your goods right now, but that’s not a problem—those things have already been done for you!
The link below will take you to the Nobel Prize Web site, where you will participate in the simulation “Trade Ruler” and, as leader of your land, see how well you can leverage your advantage to increase the wealth of your island nation.
How It Works
Once the game launches, you will be prompted to select one of four islands to control. Choose wisely, as each of the islands is endowed with labor and capital, but they aren’t equal. Some islands offer an abundance of labor but very little capital (technology), and others are capital rich but have a very small labor force. Which island you select will determine what you can produce to capitalize on your resources.
After you have chosen your island, you will be given the opportunity to create an avatar and enter your name.
Once you have an identity, you must choose one of the remaining three islands with whom to trade. Look carefully at what your trade partner has to offer! Consider the “advantages” you have and those of your trading partner.
Once you begin production, you will be able to trade cell phones and blue jeans with your partner.
At any time during the simulation, you can ask for “council” by selecting the button on your television set! Listen carefully to the advice of your counselors, watch the economy of your island (as measured in seashells), and adjust your production and trade transactions accordingly.
You’ll be able to play three rounds, with the goal of improving the economic and social conditions of your citizens.
Increasingly nations and business use their comparative or absolute advantages to enter global markets driven by the same factor: the immense size of these markets.
Let’s return to the banana for a moment. In 2015, Ecuador exported 6.55 million metrictons of bananas. Without a large global demand for bananas, every man, woman, and child in Ecuador would have to eat 834 pounds of them per year to consume all of the production. Of course, that wouldn’t happen: Instead, the country would simply cut back on the production of bananas—but, in so doing, it would lose an export that now accounts for more than 10 percent of its gross domestic product (GDP). Ecuador needs a large and vibrant global market to keep up with its tremendous supply of bananas, and it relies on the revenue from those bananas to purchase the other things it needs (in the same way that you traded cell phones for blue jeans in the island trader simulation).
Later in this module, we’ll discuss how nations like Ecuador enter foreign markets, but for now let’s look more closely at the size of the world’s largest markets. The following table shows population and GDP data for the top five economies in the world as of 2015.[3] You’ll recall from the economic environment module that GDP, or gross domestic product, is a monetary measure of the market value of all final goods and services produced in a period, and the GDP growth rate is the increase or decrease in GDP over a period of time, expressed as a percentage.
Country
GDP
Population
GDP Growth Rate
China
$19,390,000,000,000
1,367,485,388
6.90%
European Union
$19,180,000,000,000
513,949,445
2.20%
United States
$17,950,000,000,000
321,368,864
2.40%
India
$7,965,000,000,000
1,251,695,584
7.30%
Japan
$4,830,000,000,000
126,919,659
0.50%
Looking at the figures in this table, it isn’t hard to imagine that a country or company would like to have a foothold in one or all of these markets. Taken together, these five economies represent a lot of people, a lot of purchasing power, and a lot of economic growth. However, the immensity of the global market offers more than just new target customers. Consider some of the following benefits nations and firms realize by entering foreign markets.
Access to Factors of Production
You will recall that the factors of production required for a successful business venture are natural resources, capital, human capital, and entrepreneurship. Access to global markets enables countries and companies to acquire these factors of production when they are nonexistent, scarce, or just too costly at home. For example, India is one of the largest providers of telephone-based customer service (labor) worldwide, which makes sense given that its population is second only to China and almost four times that of the United States. In addition, labor costs in India are significantly lower than in the U.S.
Innovation and Ideas
Many companies enter global markets and, once there, discover unmet needs or unique products and services. They are then able to use their discoveries to expand an existing product line or introduce new products in other markets or at home. For example, many people credit the United Kingdom with inspiring the development of the craft beer industry in the United States.
Risk Reduction
Given the complexity of operating a business globally, it may seem like a contradiction that risk reduction is one of the benefits of a large global market, but it’s actually true. If a country or a company trades or does business with multiple foreign partners, they are less dependent on the success of any single partnership. Likewise, if a nation or business has multiple global sources for factors of production, then if one source “dries up,” they will still have access to what they need. For example, in 2010 China halted its export of rare earth minerals to Japan after the two countries were unable to resolve a territory dispute. Japan used these minerals in the production of everything from cars to computer chips, and to say that the Japanese were in a state of distress is an understatement. As a result of this albeit brief reduction in Chinese supply, Japan established a trade agreement with India for the import of the needed materials. They will no longer be totally dependent upon the Chinese for these important resources.
In summary, globalization makes business on a global scale possible, and the size of the global market makes it attractive. By using their absolute and comparative advantages, countries and companies can leverage their resources to produce and trade the things that benefit them the most.
The following video provides a recap of the main reasons why countries and businesses engage in global trade.
Answer the question(s) below to see how well you understand the topics covered above. This short quiz does not count toward your grade in the class, and you can retake it an unlimited number of times.
Use this quiz to check your understanding and decide whether to (1) study the previous section further or (2) move on to the next section.
Article provided courtesy of Cookware Only – A Consumer Guide to Cookware
How to choose and buy cookware set for your home is not easy. The number of cookware brands seems to be growing every day and the range of pots and pans is enormous with materials varying from stainless steel, cast iron, aluminum and copper. Confusing the issue even more is the clad style cookware range which is cookware made up of two or more different metals.
So with all this in mind how do you eventually decide on the right type of cookware whilst keeping within your budget? The answer is to know exactly what you want before you buy. In a nutshell this means that you need to know enough about cookware to enable you to make an informed decision.
What should you look for when buying cookware?
There are certain things you need to consider when choosing cookware. These include:
Heat conductivity – Some metals are better heat conductors than others. For instance, copper is a particularly good heat conductor whereas stainless steel is not. What this means in terms of cookware is that the better the heat conductivity the better and the more evenly your food will cook. It also means that when you turn the heat up or down the copper cookware will react a lot quicker to the temperature change than stainless steel cookware.
Price – The amount you pay for your cookware will most likely be a determining factor in what you end up buying. The rule of thumb with cookware is to buy the best you can afford.
Durability– Some types of cookware will maintain their good looks and last longer than others. Stainless steel is considered to be one of the best in this respect.
Reactivity– Some metals react with certain foods. Aluminum for instance has a tendency to react with tomato and other acidic dishes. This means that your food can actually absorb some of the metal, so take care with your cookware choices and ensure that you are aware of the reactivity of each product.
Maintenance– If you would prefer to not to have to shine your cookware every night just to keep it looking good then you will need to consider the amount of maintenance required to keep it in tip-top shape. Copper and cast iron cookware generally require quite a bit of work to keep it looking pristine whilst stainless steel is normally a little easier to look after.
Most people don’t understand the makeup of cookware nor do they understand why some cookware materials are better than others. With this in mind let’s take a look at each type of cookware and the advantages and disadvantages of each:
Stainless Steel Cookware: Stainless steel would have to be the most common type of cookware materials. You will probably find it in most households.
Stainless steel is actually an alloy of metals including steel, carbon and chromium. The reason stainless steel is called ‘stainless’ is because of its ability to resist corrosion.
Stainless steel is an excellent choice for cookware BUT because of its inability to conduct heat well it is important that you choose stainless steel cookware that has an aluminum or copper core. Without it you will find that you will get hot spots on the cooking surface and foods will cook unevenly.
Advantages
Relatively inexpensive
Durable
Scratch resistant
Keeps it shiny look for a long time
Doesn’t react with foods
Warp resistant Disadvantages
Not a good conductor of heat.
Cast Iron Cookware:
Cast iron is a material that has been used to create cookware for hundreds of years.
Those that use cast iron cookware absolutely swear by it for its exceptional cooking ability. Nevertheless, cast iron cookware is not an easy to maintain product. It requires a little effort to keep it working the way it should.
It is extremely durable and it is not uncommon to find cast iron cookware that has been passed down through the generations.
Check out Linda Stradley’s article onCast-Iron Pots & Pans.
Advantages
Relatively inexpensive
Extremely durable
Good heat retention Disadvantages
Reacts with foods unless seasoned
High maintenance; requires regular seasoning
Is heavier than most other types of cookware
Can rust unless seasoned
To purchase cast-iron pots and pans, check out What’s Cooking America’s Cast-Iron Pots and Pans Store.
Aluminum Cookware
Aluminum is used in approximately 50% of all cookware manufactured today because of its excellent heat conduction.
Aluminum is a soft metal and can scratch and dent easily. It can also react with certain foods which is why it is generally sandwiched between other metals. You will often find stainless steel cookware with a layer of aluminum offering the benefits of both materials.
Aluminum is also often treated through a process known as anodization. This process places a layer of aluminum oxide onto the surface making it scratch resistant as well as ensuring that it doesn’t react with foods. Aluminum cookware is often finished with a nonstick coating to ensure food remains unburned.
Advantages
Excellent heat conduction Disadvantages
Reacts with acidic foods
Scratches and dents easily
Copper Cookware
Copper cookware is commonly used amongst professional chefs because of its excellent heat conduction. Copper cookware on its own is generally quite expensive so it is not often seen in many home kitchens.
Copper is also often found sandwiched between layers of other materials like stainless steel.
Copper cookware is the cookware of chefs and for good reason. It conducts heat extremely well which means it heats quickly and adjusts to changes in temperature just as quickly. This allows greater control over your cooking.
Advantages
Excellent heat conduction
Relatively expensive Disadvantages
Reacts with acidic foods
Requires regular polishing
Some final tips:
Think about what pieces of cookware you need before setting out to the shops. There is no point in buying a 20 piece set if you will only end up using a few pieces.
Buying a cookware set is usually a lot cheaper than buying piece by piece. But again if you are not going to use all the pieces then really consider if a set is worth the money.
Buy the best you can buy for your money.
And finally – Making the final decision:
Making the final decision on whether you want stainless steel, cast iron, copper or aluminium is really a personal decision based on how much time you spend cooking, your expertise in the kitchen and your budget.
For all round flexibility, usability, and price, stainless steel cookware would be at the top of the list. When you consider the advantages it beats the others hands down. However it does have one big drawback in that it doesn’t conduct heat well and if you are concerned about having evenly cooked foods then heat conduction is important.
The solution to this is clad cookware. This style of cookware is made up of multiple layers of different metals. So, when shopping, look for stainless steel cookware with a layer of copper or aluminium sandwiched in the base. Stainless steel cookware with a copper base is generally more expensive than cookware with an aluminium base, but it does have the advantage of better heat conduction.
Take your time when choosing cookware, buy the best product you can afford, and follow the manufacturers instructions on looking after your pots and pans and you will be rewarded with years of good service and an enjoyable cooking experience.
At the International BusinessAccelerator, I recently taught a workshop with my colleague, Peter Evans on choosing the right international market for your business to expand to. This is a big topic and an important one, because if you get your choice of market wrong, it can have serious implications for the success of your international venture. It could also have a negative impact on your domestic business if things go badly.
We covered a lot of material in the workshop and I thought I’d share five of the most important points with you.
Research is vital … and there are several kinds you can use
In pretty much all contexts, a good choice is an informed choice … and choosing an international market to expand to is no exception. So, do your research! You can conduct market research to select the best export markets using either primary or secondary data resources.
If you are doing primary market research, you’ll be collecting data directly from the foreign marketplace through interviews, surveys and other direct contact with representatives and potential buyers. One of the benefits of primary market research is that the information is tailored to your needs and provides answers to your specific questions. On the down side, collecting the data can be time-consuming and expensive.
With secondary market research, data are collected from various domestic or Internet sources, such as trade statistics for a country or market reports from a variety of sources. Working with secondary sources is less expensive but secondary data has limitations including material that may be out-of-date or too general. Nonetheless, secondary research is a valuable and relatively easy first step for you to take and may be the only one you need, depending on what channel to market you eventually choose.
If neither of these appeal, you can always hire a company like Dearin & Associates to do it for you.
There is more than one way to select a market
The process of choosing which international market to go to can be done in a number of way, including randomly, which is a method I strongly encourage you not to use. We looked at two methods in the workshop, the 3-step method and the negative list method.
To summarise, the 3-step method works on the principle of “screen, compare, select”. You start by surveying a large number of the available markets and choose up to ten to research. You develop a list of criteria and assess each market against those same criteria. Based on the results of that assessment, you then choose just two or three markets to research in depth, and end by selecting one.
The negative list takes the 3-step model and tips it on its head. Using this model, the focus is on ruling markets out from the get-go. Having chosen several markets to analyse, you then set to work to rule them out, based on a quick initial assessment that shouldn’t take more than hour per country. Once you’ve found some countries that will fit the bill, you then research two or three in depth, before selecting one.
My preference is to use the negative list for the initial assessment and then follow it up with a version of the 3-step method to get more depth of perspective.
Knowing whether you can make a profit is key
Whichever method you choose, knowing whether you can make a profit before you start the process of launching into the new country is key.
Peter gave a great example during the workshop of how he had wanted to sell his company’s food products in the UK because he loved the supermarkets there. He had invested time and money in travelling there from Australia multiple times, but when he did the calculations, he realised that although the dream was great, there was no way for him to make a profit selling into that market, because his costs were too high. Although he was disappointed not to be able to enter the UK market, Peter was also glad that he’d crunched the numbers before getting too far down the track, because it saved him time, money and much greater disappointment at a later time.
The size of the market for your product is relevant
Once you’ve established that you can make a profit in a particular market, it’s also very important to work out how many people in that country are likely to buy what you sell. If no-one is going to buy it, its irrelevant whether you can make a profit or not.
Sizing the market is a step you should do after you’ve worked out whether you can make a profit because even if you’ve discovered a huge market for your product in a particular country (e.g. the US), if you can’t sell at a profit, there is no point moving forward.
It’s not all about the numbers
I’ve spent several paragraphs talking about the importance of numbers, but there are a variety of other important factors to consider as well. Are there tariffs or other non-tariff barriers in the market you want to target, that will make it difficult or impossible for you to sell there? Do you have concerns about the political situation and risks that this might pose to your business? Are you worried that your product might be copied in the new country? Is the market close enough that if you have to travel there frequently you can do it without disrupting your domestic business and the rest of your life? Are you comfortable with the culture, the language, and the food in the new country?
Some of these factors may not seem that significant, but there is all part of the process of weighing the pros and cons of different international markets.
Cookware regulations exist to create a baseline quality measurement in the market . Consumers know when they buy a product that is compliant with European regulations or American standards, they are getting quality pots and pans that have been thoroughly tested for domestic use. These standards are helpful, but not identical, on either side of the Atlantic. Are you developing a new cookware products? Read our whitepaper about the main cookware safety standards you need to know
EUROPEAN REGULATIONS FOR COOKWARE PRODUCTS
The European regulation EN12983:1 set out the safety and performance standards of domestic cookware for use on top of a stove, cooker or hob . Here a summary of most crucial tests regarding handles for cookware in this EU standards:
Resistance to Burning: this test is performed to ensure that if a cookware handle is accidentally exposed to a direct flame source, it won’t melt, lose pieces and put the user or the surface at risk of burns or surface damage.
Heat Resistance Test: this test is performed to ensure that the cookware handle doesn’t crack or break under exposure to prolonged heat by inserting the handle into the oven at 150 ° C/302 ° F for an hour. F.B.M. tests articles at a higher temperatures to guarantee heat resistance.
Torque Resistance Test: the test involves the application of a torsion force on both sides of the handle, tightening the axis to ensure rotations don’t damage the fastening system.
Bending Strength Test: this test exposes the cookware handle to a force of 10 kg/22 lbs gradually released on the posterior part of the handle. The test stresses the resistance of the fixing system and the handle to ensure the user’s safety.
Fatigue Test: in this test the pot is filled in with an extra load and undergoes 15,000 cycles of up and down. The test wants to ensure that the cookware handle and its fixing system won’t have any permanent distortion or loosening since it stresses the cookware by overloading it with much more weight that what will be used in normal domestic cooking.
AMERICAN REGULATIONS FOR POTS AND PANS
In the U.S.A., The Cookware Manufacturers’ Association (CMA) is a trade organization that sets voluntary standards for the industry’s products. Manufacturers who adhere to CMA standards are encouraged to state this fact in advertising and promotional materials, as well as on product tags and labels.
The list of tests required by the CMA is pretty similar to the European ones, for example:
Flame Soften Testing can be compared with the Resistance to Burning Test in the EU standard. The concept is basically the same, except the US Flame Softening test requires the handle to be exposed to a flame for a double period with respect to the EU one.
Torque Resistance for Stick Handle Pans Test and Fatigue Tests are performed in the same way in Europe and USA.
On the contrary, the CMA standards requires a very strict and unique test:
Assembly Strength Test. This one is particularly challenging in its HOT procedure since it requires the cookware to be loaded and to resist in a heated oven at 350 °F. This challenging test puts stress on the mechanical properties of the pot during weight lifting phase. It can be considered the test that determines the main difference between the two regulations.
If you want to know more and have key details aboutcookware handlesand the main international regulations just contact us for more information.
The right kitchen cookware is the foundation for hassle-free cooking – follow these tips on how to pick what’s good for you.
Investing in good quality kitchen equipment is key to pleasant cooking experiences. You’d want to avoid incidents like sauce or rice sticking to the bottom of your saucepan, or soup that keeps bubbling over your pot. Fret not – read on for some handy tips on how to choose the perfect kitchen cookware for you!
When it comes to stocking your kitchen, from your major appliances to your smaller bits and pieces, there’s no denying that a solid collection of cookware is a must.
Top-quality cookware can come with a hefty price tag, but it’s an investment worth making, says Lisa Higginbottom, lead brand manager at Meyer Cookware Australia. “Your $10 pan might seem to do the job, but you would be surprised at how much better food tastes, and how much easier it is to cook and clean up afterwards, if you have great cookware.”Cookware Shopping List
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Melissa Hansen, cookware buyer at Peter’s of Kensington, lists the basic pieces needed for most kitchens:
1x 16cm saucepan
1x 20cm saucepan with steamer insert to fit
1x 26cm/5-6L cast-iron casserole pot
1x 7L or 1x 9L stockpot
2x frypans (one large, one small)
1x 26cm cast-iron griddle
1x 32-36cm wok
COST
A decent, average-sized saucepan costs $70-$130.Saucepans With Style
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Cookware has undergone a serious makeover in recent years. A quick browse of any department store will reveal a bevy of bold paintbox hues as well as the classic stainless steel, copper and cast-iron designs.Cooking Performance
3/6Credit: 123RFLooks aside, the right cookware needs to perform well.“It should be strong and durable, offer good heat retention, prevent hot spots, feature heatproof handles, work on all heating surfaces, be dishwasher safe, stackable, and have cooktop-to-oven capabilities,” says Jennene Plummer, food director at Are Media Food Studio.“Cookware is something you use daily and should last for years, so do your research and buy the best you can afford,” she adds.How To Choose?
4/6Credit: 123RFWhen it comes to choosing the right cookware for your kitchen, its easy to become overwhelmed by the sheer variety of options available.Here, Mark J Henry, the founder of Australian cookware designers, Solidteknics, shares the three most important things to consider when picking your new pans…
“It’s time to ditch the non-stick – nonstick, turns out, has some serious ‘sticking’ power. Whilst you might enjoy that slippery surface for a year or two, the synthetic chemicals commonly used in nonstick cookware have lingering and wide-reaching effects in our bodies and our environment. Look for a saucepan that is non-toxic, healthy and sustainable.”
“Looks aside, you want to be purchasing cookware that’s versatile. Choose a pan that can be used across all heat sources including induction, gas, electric, oven and fire, that also boasts a clever design. Our Solidteknics pans feature lids that can be used as skillets – which we added as just another versatile element!”
“When selecting a saucepan, you want to make sure you’re choosing quality. Look for a design that looks sturdy – make sure you check the joins between the handle and pan, as well as the pot lid.
Stainless Steel
Stainless steel, often featuring a thick aluminium or copper base, is very durable, suitable for all heat sources, metal-utensil safe and easy to clean, plus it won’t rust, chip or break. Quality 18/10 stainless-steel pans are expensive but last a lifetime.
Hard-Anodised Aluminium
Hard-anodised pans have a smooth, scratch-resistant surface that’s twice as hard as stainless steel. It’s durable and offers great heat conduction and retention – perfect for keeping rice warm. Cost-wise, they’re similar to stainless steel.
Non-Stick
Non-stick cookware is great for low-fat cooking, plus it’s affordable and easy to clean. On the downside, it scratches, won’t brown meat as well as metal, and some non-stick coatings contain perfluorooctanoic acids (PFOAs), which can accumulate to harmful levels. Consider PFOA-free non-stick cookware such as Scanpan’s Green Tek and the GreenPan range.
Cast-Iron
If you do a lot of slow cooking, cast-iron may be your best choice. Cast iron absorbs and retains heat, it’s tough, long-lasting, and suitable for all cooktop types. Enamel-coated styles are rust-resistant and easier to clean and maintain than traditional cast iron. Bear in mind, however, that cast iron is heavy and its traditional look might not be best suited contemporary kitchens.
Copper
If you want stunning, heirloom-quality pans and budget isn’t a concern, consider copper. “It’s one of the best conductors of heat, which is why it’s a favourite with chefs,” says David Ley, spokesperson for Copper Kitchen. “Heat spreads quickly and evenly throughout the pan, and cools quickly when the stove is turned down, giving unparalleled temperature control.”
Ferritic Non-Nickel Stainless Steel
One of the newer kids on the block, Ferritic non-Nickel Stainless Steel is non-toxic, low maintenance and thermally conductive, making it compatible with induction. Used in Solidteknics‘ nöni™ collection, the saucepans are perfect for all liquid boiling, slow cooking and acidic sauces. A great all-rounder perfect for the home kitchen and cooking outdoors.Care Guide
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Suzanne Murphy, chief marketing executive at Meyer Cookware Australia, offers these tips for keeping cookware in great shape:
Read the care instructions and register the product with the manufacturer so you can easily claim on the warranty.
Check for dishwasher safety, oven-safe temperatures, and whether it’s alright to use metal utensils.
Avoid overheating. For non-stick pans, start on high for one to two minutes and then turn down to medium.
Never use knives or cut food in your cookware.
Wash your cookware thoroughly with a brush or non-stick cleaning pad after each use. It might seem that the food just wipes away from non-stick pans, but without a thorough cleaning, the oils and fats will build up and burn onto the surface over time.
To remove baked-on food, bring a little vinegar to the boil in the pan before washing.
Distinct economic entities all around the globe are experiencing fundamental changes in the way they produce and market various items in the form of products and services. It can be observed that national economies which have already accomplished the aim of self-sustainability are currently focusing on opening avenues for International Business. Some points attributing to this crucial change is the development of collaboration, innovation, communication, and business infrastructure.
Nations that are geographically far away from each other are now connecting with each other socially, and financially as well. The establishment of international trade and financial regulatory bodies such as the World Trade Organization and International Monetary Fund have facilitated the administration of processes of exchange and trade amongst nations various. This has helped amplify business relationships among these economic entities. Some of the eminent economic benefits of international business for any country are listed below:
Earn Foreign Exchange
International businesses export their goods and services all over the world due to these relaxed international trade policies. This helps these economic systems to earn valuable foreign exchange. Strong foreign exchange reserves allow countries to facilitate import and export. This foreign exchange is used to pay for imports. Foreign exchange helps businesses become more profitable and to strengthen the economic power of their country. Foreign exchange is essentially used to import commodities from the global market.
Diversify Business
One of the primary benefits of international business for strong economies reason is that these entities would like to amplify their spheres of commerce and acquire newer markets so that they increase their growth rates. It is also critical to consider the power and influence of pop culture. Developing countries are inspired by events and trends in the western world – which just opens paths for business and trade. It leads to specialisation. Certain countries are blessed technical expertise – for example, China, Japan, South Korea, and India when it comes to information technology and electronics, while Europe is home to the leading players in fashion and automobiles. Encouraging international business does not just boost the economy but exposes residents of a nation to global conforms and standards of living.
Spread Business Risks
In some unfortunate circumstances, some businesses may encounter lean periods in some distinct geographical locations. In this case, operating in another country can efficiently take this obstacle. It is easier to smoothen out bumps if a business has expanded its functions in multiple countries. If a business is unable to sell products in its home country due to inevitable circumstances, they do have the option to sell the same products in other countries where the demand could possibly be higher. No business wants to be in the situation of realizing that its main product or service has gone out of style. Having a presence in more than one country can help you to ride out the winds of trends, fashions and fads – a product or service that has become dated in one location may still be going strong in another, buying you time to rethink your approach. No business wants to be in a spot where its main product or service has gone out of style or demand. Maintaining a presence in more than one country can help these firms to ensure that a product or service that has become obsolete in one area may still be going popular in another, allowing executives to rethink your approach.
Optimum Utilization of Resources
Some countries have extensive deposits of metals, minerals, and fertile land for agricultural production. Prominent global business eye these markets to attain their resources. These emerging markets and developing countries may not have the adequate expertise, experience or resources needed to tap the deep reserves of these minerals and metals. Consequently, they eventually welcome giant multinationals with open arms as it provides them with royalties and other financial benefits to grow their economies.
It is easy to conclude that exploring forms of international business can accrue an array of benefits for both economic systems involved. It essentially ensures that there is no wastage of resources, standards of living are continuously elevated, while simultaneously boosting the economy. A top institute to pursue specialized management education in international business is UPES (MBA in International Business). The University of Petroleum and Energy Studies has cemented itself as one of the top institutes offering highly relevant and contemporary education, pertaining to the functionality of the international market today.
A business plan is more than a document. It’s a guide that helps you outline and achieve your goals. It’s also a management tool that allows you to analyze results, make strategic decisions, and showcase how your business will operate, and grow. In short, if you’re thinking of starting a business or plan to pitch your business to investors, writing a business plan can improve your chances of success.
Writing a business plan doesn’t have to be complicated. In this comprehensive guide, I’ll show you how to quickly and easily write a business plan that will get the results you want. Don’t worry, you don’t have to have a business or accounting degree to put together a great business plan. This guide will show you how to get your plan done step-by-step without any of the complexity or frustration.
Are you still unsure whether a business plan is worth the time and investment? Can’t you just jump right into starting and running your business? You could, but you’ll be missing out on some key benefits that a business plan provides. Having a business plan will help you in the following ways.
Grow your business faster
Writing a business plan is about establishing a foundation for your business. You’re not predicting the future, you’re working through the core strategy of your business that will help you grow. This initial document isn’t meant to be perfect but is designed to be reviewed and adjusted to help you identify and reach your goals.
Without a business plan as a baseline, it will be far more difficult to track your progress, make adjustments, and have historical information readily available to reference when making difficult decisions. Creating a business plan ensures that you have a roadmap that doesn’t just outline where you plan to go, but where you’ve already been.
Pitch and get funding
Investors and loan providers need to know that you have a solid understanding of the trajectory of your business. You need to prove that there is an attainable and sustainable need for your solution, that you have a strong business strategy, and that your business can be financially stable. This means having the right financial statements, forecasts, and a digestible explanation of your business model available for potential investors.
Writing your business plan helps you put all of those pieces together and create connections between them to tell a cohesive story about your business.
Make confident strategic decisions
Often the biggest decisions you’ll make for your business are amidst volatile periods of growth, decline, or even external crises. This requires you to make highly consequential decisions far more quickly than you may like. Without up-to-date planning and forecast information, these decisions may be less certain or strategic than they need to be.
By having a written business plan that you’re regularly reviewing, you can make confident decisions. You’ll have all the information necessary to know when you can hire new employees, launch a new product line or make a major purchase. At the same time, you can also plan ahead in case a decision doesn’t work out as expected, minimizing your potential risk.
5 tips to write a great business plan quickly and easily
Before you get started with your business plan, let’s talk about some “rules” that will make the whole business planning process easier. The goal is to get your business plan done so you can focus on building your business.
1. Keep it short
Business plans should be short and concise. The reasoning for that is twofold:
First, you want your business plan to be read. No one is going to read a 100-page or even 40-page business plan. Sure, you may need supporting documentation for specific sections but you can include those elements in your Appendix.
Second, your business plan should be a tool you use to run and grow your business. Something you continue to use and refine over time. An excessively long business plan is a huge hassle to revise—you’re almost guaranteed that your plan will be relegated to a desk drawer, never to be seen again.
2. Know your audience
Write your plan using language that your audience will understand.
For example, if your company is developing a complex scientific process, but your prospective investors aren’t scientists, avoid jargon, or acronyms that won’t be familiar.
Instead of this:
“Our patent-pending technology is a one-connection add-on to existing bCPAP setups. When attached to a bCPAP setup, our product provides non-invasive dual pressure ventilation.”
Write this:
“Our patent-pending product is a no power, easy-to-use device that replaces traditional ventilator machines used in hospitals at 1/100th the cost.”
Accommodate your investors, and keep explanations of your product simple and direct, using terms that everyone can understand. You can always use the appendix of your plan to provide the full specs if needed.
3. Test your business idea
Working through your business plan, and starting with a one-page pitch, can help you test the viability of your business idea long before launching. As you work through everything from your branding and mission statement, to your opportunity and execution, the best thing you can do is get feedback and test different elements of your business. This can be as simple as having a mentor or partner review elements of your plan, or conducting market research and speaking directly to your potential customer base.
The more you test and review elements of your plan, the better your plan and business will be. This can save you from spending days developing a strategy that just isn’t feasible.
4. Establish goals and objectives
You should know what you want to get out of your business upfront. Are you wanting to turn a side hustle into a full-time business? Trying to expand your team or launch an additional location? Knowing what you’re trying to accomplish, and having questions like these in mind, can help you develop your business plan specifically to reach these goals.
Now, you may not have every milestone or even specific steps in mind to reach your goals before starting. But that’s the beauty of working through your business plan. It will help you define metrics of success, flesh out your goals and further develop elements of your business to meet specific objectives. You just need a vision or even aspirational goals to start with to better hone in on what’s important.
5. Don’t be intimidated
Did you know that the vast majority of business owners and entrepreneurs aren’t business experts? They don’t have MBAs or accounting degrees. They’re learning as they go and finding tools and resources to help them.
Writing a business plan may seem like a big hurdle, but it doesn’t have to be. You know your business—you’re the expert on it. For that reason alone, writing a business plan and then leveraging your plan for growth won’t be nearly as challenging as you think.
And you don’t have to start with the full, detailed business plan that I’m going to describe here. In fact, it can be much easier to start with a simple, one-page business plan—what we call a Lean Plan—and then come back and build a slightly longer, more detailed business plan later.
The rest of this article will dive into the specifics of what you should include in your business plan, what you should skip, the critical financial projections, and links to additional resources that can help jump-start your plan.
Key components of a business plan
Whether you’re building a business plan to raise money and grow your business or just need to figure out if your idea will work, every business plan needs to cover 6 essential sections. Here’s a quick overview of each section and to skip to a more detailed overview, click the links below.
1. Executive summary
The executive summary is an overview of your business and your plans. It comes first in your plan and is ideally only one to two pages. Most people write it last, though. Jump to this section.
2. Opportunity
The opportunity section answers these questions: What are you actually selling and how are you solving a problem (or “need”) for your market? Who is your target market and competition? Jump to this section.
3. Execution
In the execution chapter of your business plan, you’ll answer the question: how are you going to take your opportunity and turn it into a business? This section will cover your marketing and sales plan, operations, and your milestones and metrics for success. Jump to this section.
4. Company and management summary
Investors look for great teams in addition to great ideas. Use the company and management chapter to describe your current team and who you need to hire. You will also provide a quick overview of your legal structure, location, and history if you’re already up and running. Jump to this section.
5. Financial plan
Your business plan isn’t complete without a financial forecast. We’ll tell you what to include in your financial plan, but you’ll definitely want to start with a sales forecast, cash flow statement, income statement (also called profit and loss), and your balance sheet. Jump to this section.
6. Appendix
If you need more space for product images or additional information, use the appendix for those details. Jump to this section.
In the upcoming sections of this article, I’ll dive into the details of each section of your business plan and focus on building one that your investors and lenders will want to read.
If you’re looking for a downloadable business plan template to get you started, you can skip ahead and download it now. Or, if you just want to see what a completed business plan looks like, check out our library of over 500 free sample business plans.
Executive summary
The executive summary of your business plan introduces your company, explains what you do, and lays out what you’re looking for from your readers. Structurally, it is the first chapter of your business plan. And while it’s the first thing that people will read, I generally advise that you write it last.
Why? Because once you know the details of your business inside and out, you will be better prepared to write your executive summary. After all, this section is a summary of everything else you’re going to write about.
Ideally, the executive summary can act as a stand-alone document that covers the highlights of your detailed plan. In fact, it’s very common for investors to ask for only the executive summary when they are evaluating your business. If they like what they see in the executive summary, they’ll often follow up with a request for a complete plan, a pitch presentation, and more in-depth financials.
Because your executive summary is such a critical component of your business plan, you’ll want to make sure that it’s as clear and concise as possible. Cover the key highlights of your business, but don’t into too much detail. Ideally, your executive summary will be one to two pages at most, designed to be a quick read that sparks interest and makes your investors feel eager to hear more.
Business overview
At the top of the page, right under your business name, include a one-sentence overview of your business that sums up the essence of what you are doing.
This can be a tagline but is often more effective if the sentence describes what your company actually does. This is also known as your value proposition.
Problem
In one or two sentences, summarize the problem you are solving in the market. Every business is solving a problem for its customers and filling a need in the market.
Solution
This is your product or service. How are you addressing the problem you have identified in the market?
Target market
Who is your target market, or your ideal customer? How many of them are there? It’s important here to be specific.
If you’re a shoe company, you aren’t targeting “everyone” just because everyone has feet. You’re most likely targeting a specific market segment such as “style-conscious men” or “runners.” This will make it much easier for you to target your marketing and sales efforts and attract the kinds of customers that are most likely to buy from you.
Competition
How is your target market solving their problem today? Are there alternatives or substitutes in the market?
Provide a brief overview of your team and a short explanation of why you and your team are the right people to take your idea to market.
Investors put an enormous amount of weight on the team—even more than on the idea—because even a great idea needs great execution in order to become a reality.
Financial summary
Highlight the key aspects of your financial plan, ideally with a chart that shows your planned sales, expenses, and profitability.
If your business model (i.e., how you make money) needs additional explanation, this is where you would do it.
Funding requirements
If you are writing a business plan to get a bank loan or because you’re asking angel investors or venture capitalists for funding, you must include the details of what you need in the executive summary.
Don’t bother to include terms of a potential investment, as that will always be negotiated later. Instead, just include a short statement indicating how much money you need to raise.
Milestones and traction
The last key element of an executive summary that investors will want to see is the progress that you’ve made so far and future milestones that you intend to hit. If you can show that your potential customers are already interested in—or perhaps already buying—your product or service, this is great to highlight.
You can skip the executive summary (or greatly reduce it in scope) if you are writing an internal business plan that’s purely a strategic guide for your company. In that case, you can dispense with details about the management team, funding requirements, and traction, and instead treat the executive summary as an overview of the strategic direction of the company, to ensure that all team members are on the same page.
Key questions to answer with your executive summary
The purpose of your executive summary is to provide an easily digestible overview of your business. To help you develop this section, try to answer the following questions.
What are your business objectives?
What is your target market and how will you position yourself?
Who are the key players on your team?
What are your expectations for growth and how will you achieve it?
What are your funding requirements?
Opportunity
There are four main chapters in a business plan—opportunity, execution, company overview, and financial plan. The opportunity chapter of your business plan is where the real meat of your plan lives—it includes information about the problem that you’re solving, your solution, who you plan to sell to, and how your product or service fits into the existing competitive landscape.
You’ll also use this section of your business plan to demonstrate what sets your solution apart from others, and how you plan to expand your offerings in the future.
People who read your business plan will already know a little bit about your business because they read your executive summary. But this chapter is still hugely important because it’s where you expand on your initial overview, providing more details and answering additional questions that you won’t cover in the executive summary.
Problem and solution
Start the opportunity chapter by describing the problem that you are solving for your customers. What is the primary pain point for them? How are they solving their problems today? Maybe the existing solutions to your customer’s problem are very expensive or cumbersome. For a business with a physical location, perhaps there aren’t any existing solutions within reasonable driving distance.
Defining the problem you are solving for your customers is by far the most critical element of your business plan and crucial for your business success. If you can’t pinpoint a problem that your potential customers have, then you might not have a viable business concept.
To ensure that you are solving a real problem for your potential customers, a great step in the business planning process is to get away from your computer and actually go out and talk to potential customers. Validate that they have the problem you assume they have, and then take the next step and pitch your potential solution to their problem. Is it a good fit for them?
Once you have described your target market’s problem, the next section of your business plan should describe your solution. Your solution is the product or service that you plan on offering to your customers. What is it and how is it offered? How exactly does it solve the problem that your customers have?
For some products and services, you might want to describe use cases or tell a story about a real user who will benefit from (and be willing to pay for) your solution.
Target market
Now that you have detailed your problem and solution in your business plan, it’s time to turn your focus toward your target market: Who are you selling to?
Depending on the type of business you are starting and the type of plan you are writing, you may not need to go into too much detail here. No matter what, you need to know who your customer is and have a rough estimate of how many of them there are. If there aren’t enough customers for your product or service, that could be a warning sign.
Market analysis and market research
If you are going to do a market analysis, start with some research. First, identify your market segments and determine how big each segment is. A market segment is a group of people (or other businesses) that you could potentially sell to.
Don’t fall into the trap, though, of defining the market as “everyone.” A classic example is a shoe company. While it would be tempting for a shoe company to say that their target market is everyone who has feet, realistically they need to target a specific segment of the market in order to be successful. Perhaps they need to target athletes or business people who need formal shoes for work, or perhaps they are targeting children and their families. Learn more about target marketing in this article.
TAM, SAM, and SOM
A good business plan will identify the target market segments and then provide some data to indicate how fast each segment is growing. When identifying target markets, a classic method is to use the TAM, SAM, and SOM breakdown to look at market sizes from a top-down approach as well as a bottom-up approach.
Here are some quick definitions:
TAM: Your Total Available or Addressable Market (everyone you wish to reach with your product)
SAM: Your Segmented Addressable Market or Served Available Market (the portion of TAM you will target)
SOM: Your Share Of the Market (the subset of your SAM that you will realistically reach—particularly in the first few years of your business)
Once you have identified your key market segments, you should discuss the trends for these markets. Are they growing or shrinking? Talk about the market’s evolving needs, tastes, or other upcoming changes to the market.
Your ideal customer
When you have your target market segments defined, it’s time to define your ideal customer for each segment.
One way to talk about your ideal customer in your plan is to use your “buyer persona” or “user persona.” A buyer persona is a fictitious representation of your market—they get a name, gender, income level, likes, dislikes, and so on.
While this may seem like additional work on top of the market segmentation that you have already done, having a solid buyer persona will be an extremely useful tool to help you identify the marketing and sales tactics you’ll need to use to attract these ideal customers.
Key customers
The final section of your target market chapter should discuss key customers.
This section is really only required for enterprise (large) companies that have very few customers. Most small businesses and typical startups can skip this and move on.
But if you are selling to other businesses (B2B), you may have a few key customers that are critical to the success of your business, or a handful of important customers that are trend leaders in your space. If so, use this final portion of your target market chapter to provide details about those customers and how they are important to your business’s success.
Competition
Immediately following your target market section, you should describe your competition. Who else is providing solutions to try and solve your customers’ pain points? What are your competitive advantages over the competition?
Most business plans include market research and compare their features against their competition using a SWOT analysis. The most important thing to illustrate in this section of your business plan is how your solution is different or better than other offerings that a potential customer might consider. Investors will want to know what advantages you have over the competition and how you plan on differentiating yourself.
One of the biggest mistakes entrepreneurs make in their business plans is stating that they don’t have any competition.
The simple fact is that all businesses have competition. Competitors may not always come in the form of “direct competition,” which is when you have a competitor offering a similar solution to your offering. Oftentimes, you may be dealing with “indirect competition,” which is when consumers solve their problem with an entirely different kind of solution.
For example, when Henry Ford was first marketing his cars, there was very little direct competition from other car manufacturers—there weren’t any other cars. Instead, Ford was competing against other modes of transportation—horses, bikes, trains, and walking. On the surface, none of these things look like real direct competition, but they were how people were solving their transportation problems at that time.
Future products and services
All entrepreneurs have a vision of where they want to take the business in the future if they are successful.
While it’s tempting to spend a lot of time exploring future opportunities for new products and services, you shouldn’t expand too much on these ideas in your business plan. It’s certainly useful to include a paragraph or two about potential future plans, to show investors where you are headed in the long term, but you don’t want your plan to be dominated by long-range plans that may or may not come to fruition. The focus should be on bringing your first products and services to market.
Key questions to answer with your opportunity analysis
The opportunity section of your business plan should provide enough information and data to prove that there is a need for your business and that you understand how to position yourself in a given market. To help you develop this section, try to answer the following questions.
Who is my typical customer? Who is my ideal customer? How will I target them?
What pain point do my customers have? How do they currently alleviate that pain point?
How does my solution solve their problem?
Who are my competitors? How does my solution differ from competitors?
Execution
Now that you’ve completed the opportunity chapter, you’re going to move on to the execution chapter, which includes everything about how you’re actually going to make your business work.…
