A sole trading business in Western region - Assignment Example

A sole trading business in Western region Section The business that has to be set up is a sole trading business offlowers that has international business with the western region. The sole trading business of flowers would be set up under the name of “Florist Fragrance” in UAE. The business would cater to the customer in the Western markets with the high quality products of flowers and its accessories like flower bowls, flower pots, etc. Advantages The international business of the florist has the following advantages in the market of UAE. The government of UAE has become aware of the growing international trade of flowers in the western countries and the middle-east as well as other parts of the world. This international buying and selling of flowers by the sole trading business would be able to take advantage of the several measures taken by the government in improving the performance of the flower industry of UAE. The sole trading business under the name of Florist Fragrance would be in an advantageous position as they would be able to gain from the benefits of the innovative logistics centre set up for the trading of flowers (Cullinane 46). This would help the sole trading business to deliver the orders of their flower products to the international markets with less time and high quality of flowers with customized fragrance for their customers especially in the western markets. Disadvantages The business of sole trading under the name of Florist Fragrance would face specific disadvantages due to the product chosen for the international buying and selling in the western markets. Despite the resources and facilities available in the flower industry for quick delivery of the flower and the accessory products, the international business faces the disadvantage due to the high volume of cost to be incurred for restoration of the quality and fragrance of the flowers to be delivered to the customers. The flowers are considered to be perishable items which have a fixed span of life beyond which the products perish. The sole trading business are thus required to ensure that the flower goods and the orders of the customers reach them in the overseas market in the proper condition as delivered during the point of sale. The business has the disadvantage that in case of lack of proper conditioning of the flowers, the customers may return the orders booked by them. Rationale for business at international level The rational for choosing the business of flower selling and trading in the international markets especially in the western region have been described as follows. Florist Fragrance has identified the global increase in the trading of flowers. The buying and selling of flowers in the international markets has provided the opportunity for then flower business to tap the international market demands and deliver the flowers booked by their customers. Thus use of online mode of business would also allow the sole trading business to receive orders from the western markets in large volumes. Thus innovation and improved system of international logistics would help the business to increase their sales and revenue earnings (Martin and Chaney 57). The sole trading business would be able to increase the volume of profits earned due to increase in trading of flowers. The business would also be able to get the benefits of the shipment facilities available in the UAE market to export the flowers in the western markets. The business would be able to achieve cost effective operations over a period of time with a higher growth rate of revenues as compared to the cost of sales. Importance of international law The flower business of Florist Fragrance is an international business of trading of flowers in the western and international markets. The business is, therefore, required to abide by the international rules and regulations of the western markets. The international laws regarding the use of pesticides and conditioners are to be followed by the florists in the international market. The international laws on price and quality of the flower products imported in several countries of the western market are to be followed by the florists. The sole trading business of Florist Fragrance would need to take into consideration the similar international laws that put restriction on the international flower business of the company. The various cultural aspects of the western market are to be taken into account while delivering customized order of flower products in the international markets (Mascarenhas 84). The flower business is also subject to foreign currency regulation and the fluctuation of the currency exchange rates in the western markets would be of wide interest for the flower business in UAE. Section 2: Patent, trademarks and copyright The international business of flowers to be set up by the sole trading business of Florist Fragrance would need to consider the protection of their copyrights, trademarks and patents. The protection of the business patent is extremely important from the point of view of international business in the western markets. Protection of Trademark, patent and copyright The protection of trademark, copyrights and patents offers the company the right to exclusive use of business patents for the products in which they undertaking activities. The copyright also protects the company from the duplication of the products by other companies. The trademark symbolizes uniqueness of the product which offers the customers in the international market the indication to choose the right product. The protection of the business patent is included under the UAE law number 17 which was later modified under the UAE law number 31. The law has provisions for protection of patent and regulations in the industry. The flower industry also falls under the purview of protection of trademark, patent and copyrights (USA International Business Publicationsn 64). Thus the international business of Florist Fragrance in UAE would be applicable to the law of protection of trademark, copyrights and patents. Importance of trademark to the business The trademark is important for the business in registering a name that is unique for the goods offered in the market. The trademark reduces the chances of duplication of the name of the company by some other player in the market. The protection of the trademark under the laws and regulations in UAE, therefore, is also important to the business of Florist Fragrance. The international business of flower could be advertised and positioned in the international markets of the western region with its unique name that would help the customers to identify the goods and service of the company based in UAE. The attempts made by other companies in duplicating the name of the florist company would be protected under the laws in UAE and is subject to penalties. The customers could also rely on their selection of Florist Fragrance which would provide them with satisfactory flower products as per their expectations (Ladas 84). Breach of Trademark law The impacts on the international business of flowers of Florist Fragrance are considerable due to the possible breach of the trademark law in the international markets. There might be some other players in the international flower industry that would look to adopt unfair means and resort to duplication of the trademark of promising businesses that have been able to cater to customers in the western region. Due to the breach of the trademark in the international business of Florist Fragrance, the customers of Florist Fragrance may be misdirected in selecting the desired company for purchase of the flower products. The breach of trademark would lead to loss of customers for the company in the international markets. The loss of customers would lead to loss of revenues as the company would lose their customer base due to the breaching of trademarks. This would impact the company into loss of profitability. Due to breach of trademark, the offenders would be subject to penalties. Effectiveness of UAE law in preventing crimes The laws of protection of trademarks, copyrights and patents are quite effective in the country of UAE. The laws are very effective in taking urgent and necessary action against the offenders or the companies that are engaged in the duplication of patents and copyrights. The government of UAE ensures that there is no one who could escape by offending the laws of protection of the trademarks, patents and copyrights. The government in UAE ensures regularity of the law on the protection of patents and trademarks (Cool and Goddard 45). The imposing functions of the government of UAE poses warning to the offenders that helps in controlling the incidents of fraud and crimes in future. Conclusion The international business of flowers that would be set up by UAE based Florist Fragrance is looking to target the customer in the western markets through the high quality and timely delivery of customized order of flowers. The business would be in an advantageous position due to the increase in global trading of the flower industry and the initiatives of the government in establishing a value chain in the industry, innovative logistics infrastructure, etc. The business would also need to overcome the disadvantages due to the perishable nature of the flower items and the requirement of additional cost for the use of conditioners and other items to be used for delivery. The international flower business of Florist Fragrance would be able to get strong protection from laws of protection of patents, trademarks and copyrights. This would help the company to nullify the efforts of duplication of the trademarks and retain the customer base with increasing trend of revenue and profit. Work Cited Cool, Karel and Jason, Goddard. International Business: Theory and Practice. New York: M.E. Sharpe. 2006. Print. Cullinane, Kevin. International Handbook of Maritime Business. Cheltenham: Edward Elgar Publishing. 2010. Print. Ladas, Stephen. Patents, Trademarks, and Related Rights: National and International Protection, Volume 1. Harvard: Harvard University Press, 1975. Print. Martin, Jeanette and Lillian, Chaney. Global Business Etiquette: A Guide to International Communication and Customs. Westport: Greenwood Publishing Group. 2006. Print. Mascarenhas, Oswald. Business Transformation Strategies: The Strategic Leader as Innovation Manager. California: SAGE Publications Ltd. 2011. Print. USA International Business Publications. Islamic Patent and Trademark Law Handbook. Washington: Intl Business Publications. 2007. Print. Read More