Global Business Aspects: A Case Study of Mark and Spenser (M&S)
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This report discusses the global business aspects of Mark and Spenser (M&S), including intellectual property rights, managing business functions in international context, impact of national culture in international markets, entry strategies in international market, and appropriate global strategy for M&S.
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GLOBAL BUSINESS ASPECTS
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TABLE OF CONTENTS INTRODUCTION...........................................................................................................................3 MAIN BODY...................................................................................................................................3 Introducing a local company and its current market....................................................................3 Intellectual property rights in a globalised economy...................................................................3 Managing business functions in international context.................................................................4 Impact of national culture in international markets.....................................................................4 Entry strategies in international market.......................................................................................5 Appropriate global strategy for M&S..........................................................................................6 CONCLUSION................................................................................................................................7 REFERENCES................................................................................................................................7
INTRODUCTION This report shows a brief introduction of the Mark and Spenser (M&S) company and the situation of its current market.M&S protecting Intellectual property rights in a globalised economy and also its business function (Sarkisian and Varlamova, 2021). It also shows the impact of national culture in international markets and the newly introduced strategies. Introducing a local company and its current market Mark and Spenser is one of the biggest leading company in UK. It's headquarter is situated in London. It manufactures clothes, food products and home products. M&S have a joint venture with Ocado in order to provide food products through online. It also provide goods and services at stores as well as online(Mogilevich, 2020). M&S have a strong base of customers as it gives quality products and best services to the consumers that are helpful in building the trust and satisfaction among them. Its first store was opened in 1884 and now it has 1037 stores that are located in UK. It also have a large number of employees working with them of approx 70 thousand (Marks and Spencer - Statistics & Facts, 2021). M&S generate highest income or the revenue from United Kingdom as compared to the other countries. It have 75% popularity rate in terms of departmental stores and food. Intellectual property rights in a globalised economy It refers to the legal rightsthat protect the company's creation and invention from intellectual activity in every field. It includes patents, copyrights, trade secrets and trademarks (Roh, Lee and Yang, 2021). These rights protect M&S from the duplication where patent refers to the preservation of the secret and unique aspects of M&S ideas whereas copyright means the protection of the information associated with the website of M&S cannot be copied, changed or distributed by the other parties for commercial use. Trademarks refers to the logo, emblem, marks of the product of the firm that cannot be used by other organizations. So, it should be necessary for M&S to protect these rights in order to save the company from the duplication of the original informationand can reduce the chances of harm and legal actions(Nomani, Alhalboosi, and Rauf, 2020). Managing business functions in international context Management refers to the process of managing or handling the activities and the functions of an organization. There are various types of business functions such as -
Planning-In order to expand the business in the international market it is necessary that the managers of an organization should make new plan and strategies according to the situation of the international markets(Collings, Mellahi and Cascio, 2019). The company must analyse or examine the overseas market in order to make effective plans. Organizing-It is that process where the enterprise ensures the placing of the right person for the right position. For international business organizing the people is becoming one of the challenge or the issue for thefirmsasthepeoplefrom differentlocationhaving theproblemof understanding the culture of the organization. Staffing-It refers to the process of hiring, selecting ,developing and training of the employees of the firm. So, it is necessary for the enterprise to recruit the people from different countries in an effective manner and also train them so that they can be able to work with their full potential. Controlling-This process means managing and the controlling of the activities or the plans and strategies made by an organization(Agudelo, Jóhannsdóttir and Davídsdóttir, 2019). It also monitors the work of the employees and also ensures the positive outcomes of the business. Leading-It means to supply the clear and the proper vision to the members of the firm in order to achieve the desired goals and the objectives of the company. In the context of international market or the business it is necessary to lead the employees in the right way. Impact of national culture in international markets National culture has a huge impact or affect the international market as it is one of major responsibility of the manufactures or the producers to properly examines or analyse the local culture of the country very deeply in order to understand the market and also should offer the product after the study of the international market. It also includes the lack of shared norms because of the differences of the culture. This will reduce the trust, effective communication, etc. Mainly it affects the three core areas such as- Communication:It plays an important role or the success of every business so it is necessary to have effective communication(Srivastava, Singh and Dhir, 2020). It is a very crucial thing for manyorganizationsasdifferentlanguagesarespokenatdifferentcountries.Effective communication includes proper body language, tone, etc. Communication may become the barrier for the international businesses because of the culture differences it becomes difficult to communicate with the members of the other countries effectively.
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Etiquette at the workplace:The etiquette of the employees as well as managers are varies from place to place. Professional communication is required or needed in order to reduce the differences in the workplace. It is necessary to maintain the formality while dealing with the people and the business partners from different countries. On the basis of the different culture environmenttheconceptofpunctualitymayalsovariesintheinternationalmarketsor businesses. This will lead to the negative culture perception as there are different ideas of being 'on time'. It also includes the differences in attitude of the people as the rules and regulations are different. Organizational hierarchy:All organizations as well as the countries have their own rules, laws and regulations that should not be violated by the employees. So, it is also one of the biggest differences in the cultures of different countries(Agag, 2019). In order to understand the cultural differencesthe diverse attitudes are required by the firm. Entry strategies in international market Market entry strategy is a planned process that includes the delivery of the products as well as services to the new target market. On the other hand, regarding to the export and import services entry strategy means the establishment, creation and the management of the business contract with the other foreign countries(Elia, Larsen and Piscitello, 2019). There are various entry strategies that are adopted by the firms in order to enter in the international market are as follows- Direct exporting-It refers to the selling of goods and services in the overseas market. It also involves the agents and the distributors that are helpful for the firm to manage the sales in the international market. It is the fastest way of entering the international market at low risk. But there is a less control over the market and also the lack of knowledge of local market affect the profits of the firm. Licensing-It is the process of transferring the rights to use goods and services of an organization to the other company in a foreign country. It includes licences for the marketing and production and it is one of the useful strategy. On of the benefit of this strategy is that the cost is low for the company but has to follow the rules and regulations properly. Partnering-Itreferstomakingpartnershiprelationsandtheagreementwiththeother organizations in order to enter in the international market(Grøgaard, Rygh and Benito, 2019). As
this strategy focuses on the shared cost of the firms so it reduce the investment of the owner and also reduce the risk. There may be possibilities of the differences between the corporate cultures. According to the above discussion, M&S should use or apply the strategy of direct exporting in the international market as it is the fastest way of entering and also the risk involved in this type of enter strategy is very low. By using direct exporting M&S can be able to attract more and more customers in foreign countries by providing them the good quality products and services. This strategy is also helpful in increasing the brand value of M&S. Appropriate global strategy for M&S Global strategy means the plans and the strategies made by an organization in order to expand their business across the boundaries. The main aim or the purpose is to increase the sales of the products and services globally or internationally(Anwar, 2020). There are four strategies thatarecoveredintheglobalstrategysuchasinternational,global,multinationaland transnational. International:The organization using the international strategy is one that export and import. In simple words it sales the goods in different countries and also have the foreign suppliers. The international company operates its function in different countries and have a headquarter in the home country. Multinational:According to this strategy a multinational company have invested in other countries and also offer their products and services in more than one country. For example- Walmart is a multinational company having its stores in various countries. Global:A firm using the global strategy having the investment and offers the goods and services in several countries through an identical coordinated brand in each and ever market. Transnational:This strategy is more complex as compared to the other strategies as all the decision and the research and development policies are made by the home country or region(Ji- Hyun, 2021). The appropriate global strategy for M&S is the multinational strategy that should be adopted by the firm as it facilitates the working with the other countries or in foreign market. It also allows the company to offer its services to the various countries and helps in increasing the growth and development of the brand value.
CONCLUSION From the above report it can be concluded that the M&S should protect its intellectual property rights and must analyse the market situations of the foreign country and use the direct exporting strategy to enter the new target market in different countries. It can also be concluded that there are various functions of business that should be managed by M&S for expanding the business all over the world.
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REFERENCES Books and journals Roh, T., Lee, K. and Yang, J.Y., 2021. How do intellectual property rights and government support drive a firm's green innovation? The mediating role of open innovation.Journal of Cleaner Production.317.p.128422. Nomani,M.Z.M.,Alhalboosi,A.K.andRauf,M.,2020.Legal&IntellectualProperty Dimension of Health & Access to Medicines in India.Indian journal of forensic medicine & toxicology.14(1). Collings, D.G., Mellahi, K. and Cascio, W.F., 2019. Global talent management and performance in multinational enterprises: A multilevel perspective.Journal of management.45(2). pp.540-566. Agudelo, M.A.L., Jóhannsdóttir, L. and Davídsdóttir, B., 2019. A literature review of the history and evolution of corporate social responsibility.International Journal of Corporate Social Responsibility.4(1). pp.1-23. Srivastava, S., Singh, S. and Dhir, S., 2020. Culture and International business research: a review and research agenda.International Business Review.29(4). p.101709. Agag, G., 2019. E-commerce ethics and its impact on buyer repurchase intentions and loyalty: An empirical study of small and medium Egyptian businesses.Journal of Business Ethics.154(2). pp.389-410. Elia, S., Larsen, M.M. and Piscitello, L., 2019. Entry mode deviation: A behavioral approach to internalization theory.Journal of International Business Studies.50(8). pp.1359-1371. Grøgaard,B.,Rygh,A.andBenito,G.R.,2019.Bringingcorporategovernanceinto internalizationtheory:Stateownershipandforeignentrystrategies.Journalof International Business Studies.50(8). pp.1310-1337. Anwar, S.T., 2020. Global strategy gone astray: Maersk's big box boats and the world shipping industry.Thunderbird International Business Review.62(2). pp.183-196. Ji-Hyun, H.O.N.G., 2021. A Global Strategy of a Company that Uses Culture Content as its Core Business.12(6). pp.37-46. Sarkisian,L.andVarlamova,M.,2021.Trendsinthedevelopmentofglobalcities: environmental aspects.Journal of European Economy,20(3), pp.493-508. Mogilevich,B.R.,2020.SOMEASPECTSOFSOCIALCHANGESUNDER GLOBALIZATION.InСовременноекультурно-образовательноепространство гуманитарных и социальных наук(pp. 670-677). Online MarksandSpencer-Statistics&Facts,2021.[Online].Availablethrough <https://www.statista.com/topics/3707/marks-and-spencer/#dossierKeyfigures>