Advice For Noc Ltd, A Uk Toiletry Manufacturer

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Executive summary
This report provides advice for NOC Ltd, a UK toiletry manufacturer on how to enter an overseas market. It also investigates the possible risks and benefits associated with international trade. This research draws attention to………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

1. A review of the risks associated with the various alternative methods of entering an overseas market that are available for a UK manufacturer such as NOC;
There are various alternative methods of
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Another key benefit to NOC Ltd of using an overseas agent is that the company gets the advantage of their extensive knowledge of NOC Ltd’s target market. However, there are risks associated with the use of agents as a method of entering an overseas market such as conflicts of interest addressed by the agency theory which is cited in Crum et al (2005, p16). Some agents might follow their own strategies for example, by representing NOC Ltd’s competitors. Another downfall of using overseas agents is that NOC Ltd may lose control over its marketing and brand image if the agent is not willing to build the company’s brand. Houston (2005) goes further to suggest trust issues as another risk therefore, meaning that it could be difficult for Gemma to ensure that the foreign partner, in this case the agent, will uphold its end of the agreement. As a result of entering an overseas market, NOC Ltd might encounter foreign exchange risks as all their orders are in Euros therefore, resulting in NOC Ltd’s products being more expensive in the foreign currency. This could mean that Gemma will not be able to negotiate payment currency in the Eurozone as she has to exchange the Euros to Sterling. And if she is losing money when exchanging, then her company could likely lose profits. Due to the economic downturn , a lot of customers will not be able to buy too
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