Impact of Internationalisation on Business

This assignment examines the effects of growing internationalization on businesses, using Marks and Spencer as a case study. It analyzes the positive impacts such as increased brand reputation and profitability, alongside the challenges posed by international taxation policies and human resource regulations. The discussion considers various aspects of internationalization, including sourcing, production, and selling activities across borders.

DISCUSSION POST

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Impact of growing Internationalisation on business ..................................................................3
CONCLUSION ..............................................................................................................................4
REFERENCES ...............................................................................................................................5

INTRODUCTION
Globalisation refers to trading across borders which assist in increasing the profitability
of organisation. Marks and Spencer will be includes in this study to identify the impact on its
business through internationalisation. This assignment will include the impact of
internationalisation on business in which it operates.
MAIN BODY
Impact of growing Internationalisation on business
Marks and Spencer is operating in a retail sector and providing products such as clothing,
home products, luxury food products etc. This company have various stores operation in
different regions. Marks and Spencer is having 979 stores across UK which includes 615 stores
that only sell food products (Menzies, 2017). This company opened its first Asian store in
Kabul, Afghanistan and then it started is expansion in various other countries. With
internationalisation the firm have increased their profitability and have attracted large number of
people towards their products and services. Internationalisation have increased their brand
reputation which is beneficial for the growth and success of business.
Internationalisation refers to doing business in one or more countries and it includes
activities such as sourcing, producing and selling materials. The companies internationalized
through arm – length agreement with businesses abroad by creating joint ventures (Turunen and
Nummela, 2017). Growing internationalisation have both positive and negative impact on
business. Positive impact of internationalisation includes increasing brand reputation, Increased
profitability etc. Marks and Spencer provide products and services relating to clothing, food
products, home products etc. to gain more market share.
Marks and Spencer is located in Europe, middle east and Asia etc. where it is delivering
clothing and home and food products. Market available for Marks and Spencer are India,
Australia etc (Iversen And et.al., 2016). The level of competition is high because many

organisations are growing through internationalisation to expand their business activities.
Moreover, there are existing businesses which are already operating at global level due to which
Marks and Spencer have to face difficulty to attract customers towards their products and
services. There are various organisation operating in retail sector and have strong brand position
in different countries at which they operate. Marks and Spencer for performing business
activities with other countries other than the home country have to make agreements with the
existing companies operating in that country to enhance their business activities.
Growing Internationalisation also created pressure on the businesses operating
domestically and in abroad because it reduces their profitability if the company with strong brand
is expanding their business into their home country. Also, Marks and Spencer for
internationalisation have to comply with the laws and regulatory framework relating to sourcing
of Human resource for performing various job roles.
Organisation have to comply with various employment legislation for recruiting
employees in international business activities. There are various barriers to internationalisation
which includes tax barriers, rules and regulation in foreign (Barriers to internationalization,
2016). Marks and Spencer for internationalisation have to manage its employees and comply
with regulation of other countries to perform various activities in those countries.
CONCLUSION
From the above discussion it has concluded about impact of internationalisation on
business which has provided with positive and negative impact of internationalisation. Positive
impact include increases brand image, increase in customers , profitability etc. Negative impact
of internationalisation include taxation polices of different counties, human resource regulation
etc.

REFERENCES
Books and journals
Menzies, S., 2017. Networking impact on internationalization of SMEs. In SCIENTIFIC
CONFERENCE ON ECONOMICS AND ENTREPRENEURSHIP SCEE’2017 (p. 72).
Iversen, E.J. And et.al., 2016. Internationalisation of business investments in R+ D and analysis
of their economic impact (BERD Flows).
Turunen, H. and Nummela, N., 2017. Internationalisation at home: The internationalisation of
location-bound service SMEs. Journal of International Entrepreneurship. 15(1). pp.36-
54.
Online
Barriers to internationalization. 2016. [Online]. Available through
:<https://link.springer.com/article/10.1007/s10843-016-0187-7>