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Discuss the opportunities and challenges for large indigenous companies, such as Kerry Group plc, in exporting to non EU countries. - Leaving Cert Business - Question B - 2013
Question B
Discuss the opportunities and challenges for large indigenous companies, such as Kerry Group plc, in exporting to non EU countries.
Worked Solution & Example Answer:Discuss the opportunities and challenges for large indigenous companies, such as Kerry Group plc, in exporting to non EU countries. - Leaving Cert Business - Question B - 2013
Step 1
Opportunities for large indigenous companies
Answer
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Changes in Technology: Technological advancements have significantly aided Irish exporters by enhancing communication capabilities, enabling faster and simpler interactions with international partners.
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The Internet and Global Marketing: The internet opens global marketing channels. Irish companies can easily advertise their products worldwide at a fraction of traditional costs.
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Emerging Markets: The growth of economies like China offers new avenues for Irish exporters, particularly as these markets experience rising middle classes and increased demand for quality goods.
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Reduced Business Risks: Exporting to diverse markets decreases reliance on the Irish domestic market, potentially mitigating risks related to local economic downturns.
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Cultural and Green Image: The unique cultural heritage of Ireland can be leveraged to promote products, while an emphasis on sustainable practices aligns with global consumer trends.
Step 2
Challenges faced by large indigenous companies
Answer
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Globalization: Competition from global firms producing high-quality goods at competitive prices necessitates enhanced efficiency and innovation from Irish companies.
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Investment Needs: Companies like Kerry Group must invest significantly in research and development to maintain a unique selling proposition (USP) in a crowded marketplace.
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Currency Exchange Rate Fluctuations: Variability in currency values can affect pricing strategies and profit margins, especially when exporting to markets where the Euro strengthens.
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Customs and Regulatory Hurdles: Different regulations between EU and non-EU countries create complexities in imports, which can delay product delivery to potential markets.
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Geographical Disadvantages: The physical distance from potential markets can inflate transport costs, making it challenging to remain price competitive in non-EU countries.