Business and Economics of Next Plc - Report
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Added on 2020-01-28
Business and Economics of Next Plc - Report
Added on 2020-01-28
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Business and Economics
Table of ContentsINTRODUCTION...........................................................................................................................3Considerations of Next PLC while trading across borders.........................................................4Different considerations that Next plc look at when trying to create Social Impact..................9Critical evaluation of all the above mentioned aspects which organization needs to considerenhancing their business...........................................................................................................12CONCLUSION..............................................................................................................................14REFERENCES..............................................................................................................................15
INTRODUCTIONIn the current era of globalisation, it is essential for each and every business to operate itsfunctions in the worldwide market to enhance the market share and customer base. Conductingtrade across boundaries assists the firm in building positive brand value and gain profits for along term. International business reflects that organization should possess high capital, skilledemployees and efficient infrastructural facilities so that firm can expand its operations effectivelyin the global market (Schudson, 2013). It is significant for businesses to carry out cross bordertransactions so that they can enhance their growth and success in regard to improve the businessservices and satisfy the needs of customers. Furthermore, organisation involves different ways ofenlarging its business within international boundaries such as joint venture, franchising, licensingand strategic alliance etc. in order to carry out their operations in an effective manner. In regard to this, operating business at the international level helps the firm in buildingeffective brand image in the market and also give tough competition to the rivals. Moreover, italso assists in providing the best products or services to the consumers so that sales andprofitability of the firm can be improved. Further, it also satisfies the needs of clients byattracting towards the products or services provided by business (Berger, 2015). Thus, throughinternationalization, business can increase its involvement in the international market and canoffer goods to wide range of customers worldwide. Hence, it enables the firm to strengthen itscustomer base and thus, provide them appropriate goods at reasonable prices so that competitioncan be enhanced. With the help of global presence, productivity and profitability of the firm canbe maximized and it can attain success in the market (Bryman and Bell, 2015). In the current report, Next plc has been chosen which is a British Multinational Companyproducing clothing, footwear and home appliances within the UK and Ireland. It has around 700stores operating all around the globe. Next is considered as the largest clothing retailer which iscompeting with Marks and Spencer in terms of sales within the UK. Main focus of the firm is toproduce products at affordable prices so that they can satisfy the needs of the consumers and cangain high market share (Goss, 2015). Report also focuses on different areas which have beenselected in regard to Next plc and thus, it carries out the operations of business withininternational market. Further, analysis has been drawn on different factors that are considered bybusiness while creating social impact on society. Hence, it is essential for the firm to deliverethical products and services and overcome the availability of unethical practices so that success
can be attained in an effective manner. Another research area that is selected in respect of Nextplc is related to consider different approaches while carrying out the trade across borders. Thus,it provides options for the firm to expand its market size and capture different areas to attaindesired results (Aral, Dellarocas and Godes, 2013). Considerations of Next PLC while trading across bordersTrading across borders is directly related to a vital aspect of international trade.International trade has risen with an ease of globalisation into the markets which in turn servesthe respective firms to easily transact into certain crucial cogitations reflecting an export andimport of goods and services (Yu, 2014). This however subsist with another major deliberationof enhancing the existent level of market profitability index with a tremendous increase into thesale of products. It results into some definite consequences of raised revenues into the firm whereNext PLC has been taken into a valid consideration where it is known to be a renownedmultinational firm of Britain. They fundamentally deal into the fashion products of clothings andfootwear brands, etc.An international trade for Next PLC therefore regarded to be a beneficial prospect tosignificantly enhance their existent market position. This will not only result into rendering anadvantageous outcome to the cited entity but will together prove to be a favourable facet for theregimental bodies of their expanded markets. It is due to some vitally considerate factors ofenlarged business of Next PLC which will momentously encourage varied opportunities ofemployment into their nations. This also reflects to their efficiently built in structure of economyinto an appreciated format (Novy, 2013). Such enlargement of business activities however needvarious considerations to be adopted by the respective authorities of the quoted firm, asdiscoursed into the below subdivisions-Setting of goals in regard to meet the proceedings of expansion- This refers to theforemost consideration of Next PLC enterprise to primarily determine their statedbusiness objectives. It is in terms of their further proceedings of enlarging existent baseof production and marketing into some other areas at a global level. This basicallyrecommends the firm to access a strategic implementation of their stipulated plans bytogether scrutinising about the investment criteria into their respectively dilated arenas ofbusiness operations. The cited firms should together incorporate their several associatesto significantly plan about a requisite forum of expansion. It is where they should
together implement another mandate inclusion of various marketing activities in order tomeet their desirable consequences of expansion. This will include varied broadcastingactivities to generate an epochal base of customers into the newer areas of enlargement.However, the leading concern is about an amalgamated proportion of personnels andfinancial resources to initiate into a planned form with some subsequently resultantactivities of attaining the set standard.A designated location-This refers to yet another major concern about selecting an aptlocation for expanding the business activities with a relatively better chances of gainingincomes (Ghemawat, 2013). However, an international expansion together needs to dealwith numerous considerations of dealing with certain dissimilar issues as compared tothe domestic markets of Next PLC. It further results into exemplifying some leadingcontents of their differentiated perspectives upon socio-cultural and environmentalaspects, etc. Into which, they together link up with some other vital deliberations of theirdistinctly framed political, judicial and economical facets of their markets. It is thereforeimportant for the quoted entity to primarily evaluate such influential factors of a marketinto which they are significantly planning to expand their business operations. Belowascertained components are in regard to discourse about their related decisions-◦Socio-cultural constituent-It is a primary element which can directly impact uponthe business considerations of Next PLC. This is fundamentally due to their vitalexistence into the fashion markets which has always referred to be the choice-ableperception of people. It is hence important for the marketing associates of the citedentity to conduct primary research for determining the taste and preferences of theresiding people into their expanded market. This further link up to relate theirexistent services to the ethical and regional beliefs of the consumers for significantlygratifying their needs and demands into a desirable manner. This togetherrecommends the marketing people of Next PLC to determine about the traditionalcontents and other relational prospects that directly influences the buying behaviourof their customers (Javalgi, Joseph and LaRosa, 2009). The quoted firm can herebyimplement a segmented market to particularly target a set of individuals in terms ofproducing the goods. A demographic segmentation can largely serve the designatedenterprise as per their nature of products and services. This is where the enforced
segmentation will be especially on the basis of their age, gender and level of income,etc., which in turn makes a direct impact upon their buying considerations.◦Legal constituents-It is in relation to determine the regimental activities of theirexpansion market that mainly affect their systematic procedures of work into aspecific format. This specifically reflects a completely distinguished formulationinto their marting and distribution proceedings of Next PLC with a changed rate oftheir targeted foreign markets. It considerably refers to an altered rate of taxes andinterest, etc., as per the regimental bodies of their enlarged market area(International marketing, 2015). This indirectly effects the economic statue of theirexisting business operation due to either a raised or diminished charges of tariff, etc.Such governmental influences together states about a strict adherence of operatingthe business into a recommended forum. It is where they may have to inculcate adistinct state of their current policies and other related provisions of working into alegitimate form. This can hereby related to their present deliberation of EU laws intothe domestic market of UK where they are obliged to pursue a proper and effectiveenforcement of the environmental protection enactment by them. However, suchconfinements together defines about a segregated formation of certain elementswhich especially comes under the political considerations that affects theinternational trading of goods and services by Next PLC, as depicted below-▪Risk of currency- This refers to a prime element into which the cited firm isassociating their existent orbit of currency with the monetary range of anothercountry (McCubbrey, 2015). This could however result into certain pessimisticformulation at the time of any devalued stage into their foreign medium ofexchange.▪Investment regulations- A restricted formulation of governmental bodies intocertain countries to invest into a foreign market can together hinder the expansionprogram of Next PLC.▪Operational restraints- It regards to yet another sort of restrictive formulation bythe respective regimental bodies of the nations where they mandate a strictcontrol over their operational criteria. This can together make a direct impact
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