Challenges and Considerations for Next Plc in Cross Border Trading and Creating a Positive Social Impact

Business Project

Table of Contents
Introduction......................................................................................................................................1
Part 1................................................................................................................................................2
Numerous challenges that company need to consider when trading cross border.................2
Why and what considerations should Next Plc consider when trying to create a positive social
impact.....................................................................................................................................5
Part 2................................................................................................................................................9
Using appropriate tools, identify the ways Next Plc can enhance their business...................9
Conclusion.....................................................................................................................................11
References:.....................................................................................................................................13
Books and Journals...............................................................................................................13

Introduction
Business projects are defined as the set of actions taken for a specified project over a period of
time, where several resources are needed to develop and execute the project, which are intended
to achieve a business objectives and goals. These projects can be related with expansion of
business, integration of technology, adoption of management practices etc. Next Plc, renowned
across globe as “next” was originally founded by Joseph Hepworth under the name of Joseph
Hepworth & Son as tailor in 1864 in Leeds, England. In the beginning Hepworth was in
partnership with James Rhodes but the deed get dissolved in the year 1872 and Hepworth alone
expanded the business and became one of the pioneer in the development of retail store chain
(Ishawu and et. al., 2020). It is a public limited company which offers clothing, footwear and
home products to the people of United Kingdom and several countries across globe. Company is
headquartered at Enderby, England, United Kingdom, with a total number of around 700 stores
around globe out of approximately 500 are in UK and the rest are segregated in Asia, Middle
East and Europe. Next Plc is one of the largest clothing retail stores in term of sales in UK
leaving behind Marks and Spencer. Key people in top level of management are Michael Roney
as Chairperson and Simon Wolfson as a Chief executing officer. Next plc serves to the customer
with a total number of talented work forces of approximately 44000 as per the year 2020 and
generating total revenue of more than €3200 million as per the recent data of the year 2021. The
project report contains two part in which first part of the report highlight the various challenges
that Next Plc may across or presently dealing while operating cross borders. Under this the report
will cover several challenges such as political, geographical boundaries, tax regimes, cultural
barriers etc. Furthermore, this part also highlights the key consideration that Next Plc should take
into account while intending to create a positive social impact on people and planet (Alkhalidi
and et. al., 2020). Secondly, another part of the report covers the methods and ways through
which business can enhance their business operations, with the help of theoretical tools and
techniques. While suggesting a way to Next Plc for business enhancement, the report makes use
of Ansoff matrix which will help the company to identify and determine the way which could be
beneficial for them.
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Part 1
Numerous challenges that company need to consider when trading cross border
When business firms attain success and growth in the local market it aspires to extend its
business operations beyond their geographical regions regionally and internationally. There are
several ways through which company can extend its presence in overseas market such as
franchising, licensing, merger, acquisition, export or import or offering products through e-
commerce platforms (Yun and et. al., 2019). Globalisation, technological advancement, global
trends related with removal of trade barriers, attractive business policies and regulations;
increase in foreign direct investment have encourage companies to enter into overseas market
and maintain their presence into several nations and operate successfully. However, there are
several challenges associated with the managing and running business cross borders which are
essential to consider and help in minimise their impact. Below mentioned are the few challenges
that Next Plc face:
 Lack of expertise in local market: One of the significant barrier and challenge which
comes in the way of business firms while operating into foreign markets is lack of
research with regards to the buying patterns and habits, modes of payment and tastes and
preference of customers. Each market is unique with a blend of different customer
demographics, needs, preferences and demands therefore it is necessary for Next plc to
conduct extensive research as the shopping patterns in different nations vary as in some
nations people make purchase only on specials occasion, fairs and festival. Conducting
market research will assist the company in analysing the adaptability rate of customer
cross border, their buying patterns and mode of payment they prefer. For instance people
in UK or USA prefer to pay digitally whereas in Asian countries people make payment in
cash or through cards (Hausberg and Korreck, 2021).
 Shipping and logistics: This is another significant factor which pose a serious challenge
for the companies who are entering into foreign markets. In order to fulfil an order in an
overseas market it is imperative for Next Plc to opt for a suitable shipping and packaging
partner with a wide reach to the local market and attractive shipping rates. Evidently,
shipping and logistics is the key differentiator factor as it determines the credibility,
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