Advantages and Disadvantages of Joining EEC, Reasons for MNCs Internationalization and Challenges Faced, and Internationalization Strategy for Marks and Spencer in Monaco

This report discusses the advantages and disadvantages of joining EEC, reasons for MNCs internationalization and challenges faced, and an internationalization strategy for Marks and Spencer in Monaco.

Project Portfolio

Contents
INTRODUCTION...............................................................................................................................3
Individual Notes 1................................................................................................................................3
3 advantages joining to EEC..............................................................................................................3
3 disadvantages joining to EEC.........................................................................................................3
Individual Notes 2................................................................................................................................4
Reasons why MNCs internationalize and the challenges that they encounter....................................4
Individual Report................................................................................................................................9
Introduction.......................................................................................................................................9
Analysis of domestic market..............................................................................................................9
Strategy to internationalize..............................................................................................................10
Mode of entry, challenges in the country and possible solutions.....................................................10
Leadership qualities that support the market entry..........................................................................11
Conclusion.......................................................................................................................................11
Individual Reflective Essay...............................................................................................................12
REFERENCES..................................................................................................................................14

INTRODUCTION
The European Economic Community was an organization that operated at a regional
level and that aimed to bring economic integration among the members of its states (Chang
and et.al., 2021). the organization was created by the Treaty of Rome in the year 1957. And it
can be stated that on the formation of European Union in the year 1993, the EEC was
incorporated into the EU. The respective report will explain the advantages as well as
disadvantages of joining EEC. Apart from this, there is also a critical discussion about why
MNCs internationalise and the typical challenges they encounter. Lastly, the report also
includes a reflective essay on the learnings of the module and a review of own
entrepreneurial qualities.
Individual Notes 1
3 advantages joining to EEC
The European Union creates balance due to the fact all of the international locations
belonging to the agreement work together for his or her mutual precise. Although this does
boom their working fees due to the fact there are home and global governments which require
funding, it makes every person safer as well. This advantage makes it less complicated for
nearby producers to export their gadgets at a honest rate whilst receiving imports as needed
that don’t break their price range. About 10% of the roles in Europe are immediately related
to the EU right now, and that doesn’t even depend the import-export positions which exist.
When one European kingdom decides to control the surroundings more successfully, then
they are able to make a small impact with their eco-friendly stance (Fernàndez-Méndez,
García-Canal and García-García, 2021). If all 28 contributors come collectively to follow the
identical regulations, then it may be a process which enables to alternate the world. This
dating have become the foundation of the European Union because of the conditions that
have been in location to maintain this moneymaking membership. There had to be a assured
democracy, appreciate for human rights, the capability to introduce competition, and
monetary resources to meet the responsibilities of the relationship. It is this path that the
modern-day EU follows as well.
3 disadvantages joining to EEC
Membership of the EU doesn’t necessarily mean membership of the Euro. But, the
EU has positioned extremely good emphasis on the unmarried currency. However, it has
proved to have many troubles and contributed to low charges of financial increase and

excessive unemployment across the EU. Fortunately, the United Kingdom stayed out of the
Euro. The UK has obtained local price range over time, which has helped monetary
regeneration of areas like South Wales and North East. The CAP and different regulations are
in a protracted slow technique of being reformed. If the United Kingdom stays in the EU, it is
able to, in idea, assist to sell rules which paintings in the long-time period interest of the UK
and reform inefficient policies like CAP. An envisioned 3.5 million jobs are linked to trade
with Europe. Some jobs can be threatened if tariff barriers were to rise outside the EU. The
UK is the 1/3-largest recipient of inward funding within the international. Access to the
Single Market is one element in encouraging this inward investment. The funding is vital for
UK financial increase and jobs.
Individual Notes 2
Reasons why MNCs internationalize and the challenges that they encounter
A multinational company (MNC) is one which has commercial enterprise operations in two
or more international locations. These companies are regularly managed from and feature a
vital workplace established of their domestic UK however with places of work worldwide.
Simply exporting items to be bought abroad does not make a organization a multinational. A
multinational organisation enables the technological increase of the us of a as properly. They
deliver new improvements and technological advancements to the host country (Garwe and
Thondhlana, 2021). They assist modernize the enterprise in growing international locations.
MNCs also reduce the host countries dependence on imports. A multinational organization is
a agency that operates in its home country, as well as in different countries round the world.
Going global is a method that is influenced by way of a variety of factors and is
typically applied over the years. Sometimes, a government will incentivize companies to go
into their UK's market that allows to build their economies. Improving earnings margins is
one of the most common reasons for coming into international markets. When growth
strategies are used up on the national level, the subsequent path is frequently to are seeking
out global boom. Diversifying your brand's offerings and its consumer base are popular
motives for worldwide enterprise expansion. Sometimes, a product isn't always a bad
product, but a horrific fit for the marketplace in which it become at the start launched.
Launching that product again in a different market, closer to human beings with a unique way
of life and a distinctive finances can suggest a completely unique, an awful lot extra high-
quality reception for that product. Operating in global markets also offers organizations get

admission to to a bigger and greater different expertise pool. Employees who speak one-of-a-
kind languages and apprehend exceptional cultures decorate connections with a broader
consumer base. Having an international logo this is properly reputed will invite top expertise
to the employer. Businesses also can shape international paintings teams in a manner that lets
in for synergy in constructing an international emblem.
This approach is adopted whilst agencies have their existence in the equal product line or
marketplace. The aim of horizontal integration is to consolidate the marketplace by acquiring
or merging like organizations and take advantage of the marketplace by using monopolizing
the industry (Hunt and et.al., 2021). The phenomenon is also known as horizontal
enlargement due to the fact it's far a spread of a firm within an enterprise for growing its
market proportion for a particular product. Expanding on a global marketspace is much more
likely to increase typical sales and decrease operational costs, thru attracting a bigger patron
base. In addition, via the help of technology and the revolution of the net, international trade
has turn out to be even greater attractive, for smaller organizations. Through having the
opportunity to outsource, they may be able to reduce prices and improve their business
management & operational efficiency. Some agencies may want to extend their commercial
enterprise products, as they may be more likely to be typical around the arena. In many
industries, enlargement via internationalisation may also gain companies, thru achieving
better economies of scale. This is in particular the case for organizations working in smaller
greater domestic markets. Moreover, internationalisation might also serve as an opportunity
to distinguish or exploit a brand new product extension, provider, or emblem (James, Pagliari
and Young, 2021). The recognition of internationalization is also way to nations opening up
exchange limitations and reducing tariffs across the world. Internationalization permits
agencies to diversify their businesses and be capable of ease the chance of decelerating call
for, throughout one-of-a-kind nations. Operating in various countries also gives organizations
the opportunity to invest in innovation and develop special variations of their services and
products, which might also guard them from declining interest in a particular services or
products.
Going worldwide permits organizations to have access to a broader talent pool.
Employees that communicate multiple languages and are accustomed to exceptional cultures
are able to increase connections with a much broader purchaser base. Moreover, it allows
corporations to create worldwide paintings teams, which have understanding in local markets
and which might be able to make the most home marketplace resources and uncooked

materials, via connecting with nearby providers. Another pinnacle advantage of going global
is the opportunity to get entry to new talent swimming pools. In many instances, international
exertions can offer groups precise benefits in phrases of increased productivity, superior
language abilties, various academic backgrounds and greater.
Companies additionally choose worldwide enlargement to advantage a aggressive edge over
their warring parties. For instance, groups that increase in markets wherein their competitors
do no longer perform often have a primary-mover advantage, which lets in for them to build
robust emblem focus with consumers before their competitors (Mendy, Odunukan and
Rahman, 2021). International enlargement can also assist agencies acquire get admission to
new technologies and industry ecosystems, which may additionally extensively improve their
operations. International business also can boom a agency’s perceived image, as global
operations can assist build call logo popularity to help destiny commercial enterprise
eventualities, along with settlement negotiations, new advertising campaigns or maybe extra
enlargement. Finally, organizations thinking about international expansion shouldn’t forget
approximately the extra funding possibilities that overseas markets can provide. For example,
many corporations are capable of broaden new sources and forge vital connections by way of
working in international markets.
Domestic markets are growing slowly. Most organizations are no longer content
material to grow incrementally. If such groups need to reap excessive growth fees, they
should acquire some of their sales from worldwide markets. In some industries like
advertising and marketing, clients need their suppliers to have worldwide presence in order
that providers can make contributions in maximum of the markets where the buyer is
operating. For instance, a multinational will select an advertising agency which has a
presence in all of the markets in which the multinational is selling its product. The customer
does no longer need the trouble of hiring a separate advertising organization for every of its
markets. This method could be replicated in more industries (Miao and Yang, 2021). A
multinational enterprise seeking materials and device’s could need its dealer to supply to all
its worldwide production locations. The dealer is forced to increase competencies and
resources at many international places so that you can serve the international manufacturing
places of its consumer.
Entering worldwide markets has lengthy been considered a strategic pass for lots
thriving companies and organizations. In these days’s fantastically virtual international, going

worldwide is slowly turning into much less of an elective method and more of an expected or
rather awaited maneuver. In the approaching years, we are able to anticipate worldwide
growth to be the norm. Thanks to advances in era and the upward thrust of e-trade, it has
come to be extra viable to increase operations in new markets. Even smaller or area of
interest groups can attain new customers in foreign international locations and obtain new
successes. However, many organizations nonetheless have second mind about going global.
After all, the course to global expansion calls for going through new demanding situations to
start over in a new country and new marketplace. For agencies and corporations serious
approximately their persisted increase, even though, coming into overseas markets should be
a natural next step. Expanding a commercial enterprise internationally gives many advantages
while done properly. Businesses which can be preparing for a capacity worldwide growth
need to take the time to discover which benefits they're aiming to obtain.
There are various challenges that a MNC can face while internationalizing their business
operations. Public picture and branding are critical components of most groups. Building this
public member of the family capability in a brand new geographic vicinity is an enormous
challenge, both in successfully localizing the message and inside the capital expenditures
important to create momentum (Nurcholis, 2021). Arguably the most substantial of the
demanding situations faced by means of MNCs, ethics have historically played a dramatic
position in the success or failure of world gamers. Maintaining the very best ethical
requirements while working in growing countries is a critical attention for all MNCs. Another
big hurdle is the ability to efficiently and successfully incorporate new regions within the fee
chain and corporate structure. International expansion calls for full-size capital investments in
lots of instances, at the side of the improvement of a particular strategic commercial
enterprise unit so one can manage these bills and operations. Finding a way to capture fee
notwithstanding this constant organizational investment is an crucial initiative for global
groups. The final issue worth noting is attaining effective leaders with the appropriate
information base to method a given geographic market. There are variations in techniques
and techniques in each geographic vicinity international, and attracting gifted managers with
excessive intercultural competence is a vital step in developing an efficient global strategy.
Expansion to new markets way crossing cultural, linguistic, non secular and
regulatory borders. Adapting your business version to those new territories entails
complexities that deeply transcend adjusting to a brand new forex (Pacheco and Akhter,
2021). They mention the significance of investing in professional translation offerings to

conform contracts, manuals and branding to the new market. Based on previous enjoy from
many large and successful organizations, the experts agree that there's no manner to are
expecting whether or not internationalization will result in greater income. This uncertainty is
one of the key challenges in any try to go worldwide. But the coolest information is that in a
digital generation, the stakes are plenty lower. Placing a product up in an online keep has
incredibly low fees and it may fast assist a business decide its marketplace, consumer
personality and brand differentiators.

Individual Report
Introduction
Internationalization describes designing a product in a manner that it can be readily
fed on across a couple of international locations. This procedure is utilized by corporations
trying to amplify their global footprint beyond their own domestic marketplace know-how
customers abroad may additionally have extraordinary conduct. Internationalization can
provide your commercial enterprise with access to a global of opportunities. The chosen
organization for the report is Marks and Spencer, which is a leading retail organization in the
United Kingdom. The company is looking to internationalize its business operations in
Monaco in order to enhance its overall profitability as well as sales.
Analysis of domestic market
The company is currently headquartered in London, United Kingdom and it can be
stated that the UK market is stable (Stein and da Silva, 2020). The retail area became buoyed
by way of the reopening of non-critical shops, and the loosening of some regulations at the
hospitality region also helped lure consumers returned to key retail locations. Retail sales and
client urge for food have remained sturdy. It is clear there's sizable pent up demand for big
ticket and discretionary objects, and purchaser wallets are stuffed with additional financial
savings gathered at some point of lockdown (Törmer and Henningsson, 2020). Conditions
seem ideal for a strong client-led recuperation within the second half of of 2021 and into
2022. The retail enterprise includes all organizations that promote goods and services to
clients. There are many special retail sales international, inclusive of grocery, comfort,
reductions, independents, branch stores, DIY, electric and speciality. The retail enterprise
indicates a constant boom 12 months on yr and employs a massive quantity of people
worldwide. This is a incredibly aggressive, rapid-paced enterprise, that's critical to the
economy.
In an increasingly more competitive panorama, retail enterprise gamers need to
compete in several ways. These days, consumers need terrific customer service and an
incorporated purchasing enjoy. The rise in omnichannel retailing is a affirmation of this.
Consumers need to mix the benefits of traditional shopping with the convenience of the use
of contemporary technology. Consumers can also now be purchasing on line the use of their
capsules or smartphone. They could also be on the excessive street in a bricks-and-mortar
shop. Consumer urge for food for retail sales has remained sturdy. As such, stores should

now offer a problem-free, seamless revel in for the purchaser to remain aggressive. As
customers preserve to spend money in the retail sector, it is essential to know that your
manufacturers are competitive and that the best is powerful. Retail companies need to thus
make certain that the pleasant of merchandise is maintained at some stage in the supply chain.
Strategy to internationalize
The most common strategy to internationalize a enterprise is certainly the export of goods.
The enterprise can be directly worried in the procedure or have a commercial middleman that
negotiates and distributes its product overseas. Indirect exports are the least disturbing but
additionally the most precarious of all internationalization strategies (Unangst and et.al.,
2020). Precisely because they do now not relate directly to the outlet market or the final client
as opposed to direct exports, which contain a higher stage of involvement, specially in
economic phrases. Acquire a organization overseas. Another method to reach the foreign
marketplace is the direct funding in the partial or general acquisition of a enterprise that
already operates overseas. Despite the high charges, this opportunity can be exciting to
reduce the dangers of coming into a new market making an investment in a corporation that
already operates abroad minimizes the chance of implementation. It can rely upon the skills
and expertise of the present business. Open a brand new branch. Another form of direct
funding is the hole of a consortium or subsidiary overseas.
A joint challenge is a aggregate of or more parties that seek the improvement of a
single organisation or project for profit, sharing the dangers associated with its development.
The parties to the joint project must be at the least a combination of natural individuals or
entities. A joint mission is a type of commercial enterprise association in which extra than
two or two parties agree to pool their sources for the purpose of pleasant a particular task
which may be a new challenge or any commercial enterprise activity. All the individuals on
this undertaking are answerable for the profits and losses.
Mode of entry, challenges in the country and possible solutions
The mode of entry will be joint venture and there can be various challenges in the
respective country, Monaco, that the company can face. Although the United Kingdom
doesn't have the same buying and selling ties with Monaco that it does with other nations, it
nevertheless holds many possibilities which might be worth thinking about. If we thought of
Monaco as someone, they will be small in length but they are dripping with timeless style,
nicely tailored garments and diffused, but very high priced bling. This us of a has cash and it

knows it. Monaco has an incredible infrastructure, social and political balance, strategic
region and an unbeatable exceptional of existence. In Monaco, there are over 5,000
corporations operating in a vast style of sectors like overseas exchange, banking and finance,
other offerings, tourism, retail, actual estate and building, delivery, and crusing among many
others. The groups benefit from a balanced stage of taxation. If seventy five percent or more
of their turnover is made in the Principality, there is no tax on income for businesses. With
over 30,000 citizens and a workforce of forty seven,000 with much less than four percentage
unemployment – Monaco is the high-quality area to pursue your paintings profession.
Foreigners may also soak up a non-public salaried role in Monaco on the circumstance that
they've a piece allow for the publish they have got received. After review of the marketing
strategy and evaluation of the people working at the mission and the specific enterprise
regions wherein the organization may match, approval is granted for new agencies.
Leadership qualities that support the market entry
They are always below stress with the aid of the chief because of their loss of strengths. Other
firms continuously try and find out ways to hold their positions and gradually increase it in
one of these situations (Volkova and Plakhotnik, 2021). They may also change their fees,
introduce new merchandise, enlarge their distribution networks, or intensify role to attain
this. A strong chief possesses numerous skills that permit them to efficaciously and definitely
engage with their team to obtain a shared intention. In some instances, those management
abilities come evidently, while others learn through revel in and formal training. Many
employers are seeking out these skills in candidates they hire for management positions, but
management talents are treasured for any worker to have, irrespective of their function.
Conclusion
It can be concluded that a business can be directly worried in the procedure or have a
commercial middleman that negotiates and distributes its product overseas. Indirect exports
are the least disturbing but additionally the most precarious of all internationalization
strategies. Precisely because they do now not relate directly to the outlet market or the final
client as opposed to direct exports, which contain a higher stage of involvement, especially in
economic phrases.

Individual Reflective Essay
Undertaking this module has helped me in understanding the concept of
internationalization. This has helped me in understanding my overall strengths as well as
weaknesses. I was able to understand that there are many factors that can influence the
overall performance. I understood that the European Union creates balance due to the fact all
of the international locations belonging to the agreement work together for his or her mutual
precise. Although this does boom their working fees due to the fact there are home and global
governments which require funding, it makes every person safer as well. I have also learnt
that they deliver new enhancements and technological advancements to the host UK. They
help modernize the enterprise in growing international locations. MNCs additionally reduce
the host countries dependence on imports. A multinational agency is a organization that
operates in its home UK, in addition to in extraordinary international locations round the
arena.
Going worldwide is a method that is prompted by way of a spread of factors and is
usually carried out over the years. Sometimes, a government will incentivize groups to go
into their UK's marketplace that lets in you to construct their economies. Improving profits
margins is one of the most commonplace reasons for coming into global markets. I have also
understood that I have strong presentation as well as communication skills. This has helped
me in improving my overall performance as an individual effectively. Another thing that I
have learned is that companies moreover choose global growth to gain a competitive facet
over their fighters. For instance, agencies that increase in markets wherein their competitors
do no longer carry out frequently have a number one-mover advantage, which permits for
them to construct strong logo recognition with customers before their competition.
International growth can also assist corporations acquire get entry to new technologies and
enterprise ecosystems, which can also additionally significantly improve their operations.
There are diverse challenges that a MNC can face whilst internationalizing their
business operations. Public photograph and branding are critical additives of most agencies.
Building this public member of the family functionality in a present day geographic place is
an vast task, each in effectively localizing the message and within the capital expenses vital
to create momentum. Arguably the most enormous of the disturbing conditions confronted by
using MNCs, ethics have historically performed a dramatic function inside the achievement
or failure of global game enthusiasts. Going worldwide permits organizations to have access
to a broader talent pool. Employees that communicate multiple languages and are accustomed

to exceptional cultures are able to increase connections with a much broader purchaser base.
Moreover, it allows corporations to create worldwide paintings teams, which have
understanding in local markets and which might be able to make the most home marketplace
resources and uncooked materials, via connecting with nearby providers. A multinational
enterprise allows the technological increase of the us of a as properly. They supply new
improvements and technological advancements to the host united states. They assist
modernize the enterprise in developing global locations. MNCs additionally reduce the host
nations dependence on imports. A multinational enterprise is a organization that operates in
its home UK, as well as in one-of-a-kind international locations round the world.

REFERENCES
Books & Journals
Chang, A. and et.al., 2021. Subnational response differences on the Belt and Road Initiative
policy and firm internationalization: A longitudinal and multi-level
approach. Journal of International Business Policy, pp.1-20.
Fernàndez-Méndez, L., García-Canal, E. and García-García, R., 2021. Litigations with the
home State and internationalization. Multinational Business Review.
Garwe, E.C. and Thondhlana, J., 2021. Making internationalization of higher education a
national strategic focus. Journal of Applied Research in Higher Education.
Hunt, R.A. and et.al., 2021. Internationalization of entrepreneurial firms: Leveraging real
options reasoning through affordable loss logics. Journal of Business Research, 133,
pp.194-207.
James, S., Pagliari, S. and Young, K.L., 2021. The internationalization of European financial
networks: a quantitative text analysis of EU consultation responses. Review of
International Political Economy, 28(4), pp.898-925.
Mendy, J., Odunukan, K. and Rahman, M., 2021. Place and policy barriers of rural Nigeria's
small and medium enterprises' internationalization. Thunderbird International
Business Review.
Miao, S. and Yang, H., 2021. Foreign-Born Student Affairs Professionals’ Impacts and
Experiences: The Missing Piece of Internationalization. Journal of Studies in
International Education, p.10283153211052769.
Nurcholis, L., 2021. How to improve internationalization strategy based on market
characteristics, culture understanding, and knowledge management: the mediating
effect of management behavior. Journal of the Knowledge Economy, 12(4), pp.1717-
1740.
Pacheco, B.G. and Akhter, S., 2021. Overcoming economic liminality: internationalization of
B2B SME’s from a small emerging economy. critical perspectives on international
business.
Stein, S. and da Silva, J.E., 2020. Challenges and complexities of decolonizing
internationalization in a time of global crises. ETD-Educação Temática
Digital, 22(3), pp.546-566.
Törmer, R.L. and Henningsson, S., 2020. Platformization and Internationalization in the
LEGO Group.
Unangst, L. and et.al., 2020. Refugees and Higher Education: Trans-national perspectives on
access, equity, and internationalization. BRILL.
Volkova, N.V. and Plakhotnik, M.S., 2021. Commitment of key internal stakeholders during
internationalization: challenges of an emerging market culture. Journal of Marketing
for Higher Education, pp.1-19.