Contemporary Issues in Global Business

This report discusses the contemporary issues that have a strong influence on globalized business, with a focus on the fashion industry. It also assesses the management and leadership skills required by M&S and Next Plc to cope with the changing business environments. The report covers political, economic, social, technological, legal, and environmental factors that impact the fashion industry. It provides insights into the challenges faced by M&S and Next Plc and offers recommendations for sustainable business practices.

Global Business

Table of Contents
Introduction......................................................................................................................................3
Body ................................................................................................................................................4
Identify & critically analyse contemporary issues which creates a strong influence on
globalised business......................................................................................................................4
Critical assessment of management and leadership knowledge, skills & attributes that are
required by M&S and Next Plc to cope up with the altering business environments.................8
Conclusion.....................................................................................................................................12
References......................................................................................................................................14

Introduction
Globalisation is defined as segregation of markets within the global economy which leads
to enhanced interconnection related with national economies (Amankwah-Amoah, 2016).
Basically, it denotes geographic dispersion of service and industrial activities for an instance
sourcing of factor inputs, research & development, cross border networking companies and
distribution. In this report, retail sector has been taken into the consideration in which fashion
industry has been emphasised on. The UK fashion industry has experienced huge growth within
last two decades and it comprises of around 5.4% of national GDP. This industry has provided
employment to around 55000 people around the country as well 11% sales is carried out within
women's suits. It is anticipated that e-commerce clothing, within 2020 it will reach the figure of
$450 (UK Fashion industry statistics and marketing insights, 2018). At present scenario, fashion
is more than just buying clothes rather than it is an extension and expression of an individual.
The challenges which are being faced by this industry while rendering their services in global
market comprises is requirement to bring unique products so that they can withstand with
changing needs of every market, the social belief and values of each country are different which
may impact their sales and many others.
To understand this concept, M&S and Next Plc are being taken as they are evolving
globally for reaching maximum number of individuals. The issue that will be emphasised in this
are contemporary business issues. This report comprises of issues which creates impact on
organisational operations & policies. Along with this, ways in which leadership qualities &
competencies can be enhanced will be provided.
Body
Identify & critically analyse contemporary issues which creates a strong influence on globalised
business.
The process of carrying out integration as well as communication among companies,
people and governments of distinct nations is referred to as globalisation. This is carried out by
investment and international trade that is being carried out by the utilisation of information

technology. While dealing within the international market various issues are being faced by Next
Plc and M&S which they have address affirmatively so that they can carry out their operations in
an appropriate standard. This will ensure sustainability within the market (Bidault and et.al.,
2018). The challenges involve cost of procurement of raw materials (cost is required not only for
growth but also for transforming raw materials which are required for creating new designs &
fabrics lines), labour (fashion industry do not know the situation of workers which leads them to
face brunt of pessimistic emotions & constant disruption along with working environment),
transportation (the challenge faced is to address the increased need for keeping the logistic in
limit but at par with market prices) and there lies many more. Apart from this, some challenges
have been illustrated beneath with respect to M&S and Next Plc by utilisation of PESTLE
Analysis:
PESTLE analysis refers to as tool or framework that is being utilised for analysing as
well as monitoring the macro-environmental factors which creates an influence on performance
of organisation. This tool can be used by both Next Plc and M&S for tracking the global
environment of country in which they are delivering their services or are about to do so.
Political factors: Government possess the capability for inspiring firms for buying
fabrics locally when taxation on imports increases from other countries. The two important
political factors which impacts Next Plc and M&S are: Free Trade: The affirmative aspect associated with modern-day politics is free trade
which has been formulated among multitude of different countries while delivering their
services globally. This provides both of the organisations i.e. Next Plc & M&S with great
benefits as free trade assist them to import foreign products in reasonable prices, thereby
maintains healthy profit margin (Brenner, 2018). As free trade is from some time, so the
decisions formulated by United Kingdom may create an impact on European brands.
 BREXIT: UK's determination for leaving European Union is a major political factor
which lead to creation of huge influence on the ways in which M&S and Next Plc renders
their operations globally. It is not clear that where UK will be after BREXIT but in
context of tariffs as well as trade regulations the anticipated outcomes are less favourable
for retailers of United Kingdom. This can be understood by taking an example like if UK
leaves European Union which is referred to as hard Brexit then there will be loss of

various free trade policies with European suppliers which will result within increase in
the cost of end products for their customers.
Apart from this, there exist various groups such as PETA boycott against the firms who
utilises the animal skins and furs within their end products. These creates the strong influence on
the ways in which firms like M&S and Next Plc delivers their services like they can furnish there
services where trade tariffs are minimum so that they can have profits by delivering their
services within global market.
Economic factors: This creates a deeper influence on fashion industry as it formulates
larger part of global economy that is impacted through economic displacement worldwide. The
factors which creates an influence on M&S and Next Plc in terms of economy have been
specified beneath: Discount competitors: Price acts as a major factor within the retail industry but from last
few decades there were large number of budget retailers who have came up within United
Kingdom. There are budget clothing stores to supermarkets and the new competitors are
stealing the market shares from existent premium brands such as M&S and Next Plc.
They provides customers with similar products at minimum prices as compared to
leading brands (Cascio and Boudreau, 2016).
 Impact of recession: Individuals are having extra money which they opt to put within
accessories and fashion. People who have live within a area where unemployment rate is
higher or income is low then they would require their money for accomplishment of basic
necessities like food. Apart from this, there is also an expansion in terms of renting
clothes in both casual and formal dresses. It acts as a cost effective method as well as all
the options that are being provided are fashionable and according to their taste they can
avail then. This will lead to creation of negative impact on firms like M&S and Next Plc
as they are the premium brands and even there products are also not available at cheap
prices.
All the above mentioned points, shows that economy creates a huge impact on the ways
in which services are being delivered by the firms. Along with this, it will also affect their
pricing strategies. Before entering within the market M&S and Next Plc must take into
consideration the economic situations of specified country so that they can ensure that can
sustain within the market for longer duration and attain high profit margin.

Social factors: Socio-cultural factors has crucial role within the growth of fashion retail
industry. The aspects which creates an impact on M&S and Next Plc in terms of sociocultural
factors are illustrated below: Non-Trendy: Next Plc & Marks and Spencer are not the new within the market of United
Kingdom which is known by each individual. They have formulated a long-standing
reputation but there are also unfortunate consequences which may take place. While
rendering services globally they need to acknowledge the existent competitors along with
the cultural trends of the particular country. This will enable them to understand the
demands of the market. But each year trendy & new retail chains are coming up, this
leads to the huge competition due to which they (M&S and Next Plc) may seem less
trendy to the young consumers.
 Alterations within the levels of socio cultural: This factor impacts the way in which
people do shopping and formulates their decisions with respect to brands from where
they will prefer to shop. On the global perspectives, people are not only looking for
convenience but also for low prices and greater quality (Chang, 2016). The demographics
of global population have been altered a lot from previous decades which provides firms
like M&S and Next Plc with various options, opportunities along with new challenges.
They need to acknowledge the different needs but emphasis must not be only on the
increase in number of sales but also to attract as well as inspire customers so that there
loyalty can stay with the brand.
Technological factors: At present scenario, people opt for going to online shopping
instead of visiting the busy stores and looking for the products manually. Individuals can surf the
internet, choose the product, select the size and have it in their door step within few days. The
two technological factors which might create an impact on the services that are being delivered
globally by M&S and Next Plc are specified here: Online shopping: This is the biggest trend which prevails within the market as people
are preferring to have services at their doors so that they save their precious time and
invest it on other activities. M&S and Next Plc are both making use of e-commerce for
delivering their services via online mediums. They have taken their traditional approach
of selling to the online shopping.

 Technology: M&S and Next Plc needs to ensure that they are up-to-date with technology
they are making use of and must also identify the technologies which are being used by
the country in which they are delivering their services. This will assist them to make use
of either similar technology or bring in own technology to have the impelling benefits.
This denotes that technology assist firms such as M&S and Next Plc to provide their
customers with kind of fashion they are looking for and also inspires the designers to develop
attractive, impelling and enhanced designs through its utilisation. Technology aids firm to have a
view of what other are doing and accordingly they can develop their products while carrying out
their operations globally.
Legal factors: The fashion industry is liable for following identical rules as well as
regulations as other industries do. For this, M&S and Next Plc needs to adhere to the export and
tax restrictions along with inflation costs. They are also responsible for maintaining rights of
workers but in case if products are developed in foreign country then it will become iffy. This
can be understood by taking an example like both the companies are headquartered in UK this
means that while developing their services within other country the quality of services or
products manufactured might be affected. Apart from this, when cheap workers are being utilised
for sewing the clothes then many customers boycott the products. The fashion industry acts as a
large employer, this denotes that they need to adhere the labour laws that are applicable to the
business can be applied.
Environmental factors: Fashion has created great impact on the environment and this is
not good at all. The factors which creates impact on Next Plc and M&S have been specified
below: Sustainable produce: For maintaining their image like luxury brand firms like M&S and
Next Plc pledged to be a sustainable retailer within different occasions. This is
associated with multitude of environmental factors which prevails within the acquisition
of clothing like carbon emissions which are extracted while carrying out manufacturing
processes as well as deforestation for farming land.
 Fair trade: This is an initiatory that has been formulated for becoming better to
counterbalance the foreign producers also leads to creation of influence on the
environment. But while dealing globally, fair trade do not seems feasible. This can be
understood by taking an example that clothes are made from cotton and chemicals easily

makes their way within. Along with this, the end product which is being utilised by
customers is soaked into hazardous compounds. Furthermore, while they are dispatched
through any means of transportation then they release the harmful smoke and gases into
environment. The end products are packaged within the plastic bags and later on they are
exposed into landfills. This creates a massive impact on the environment but firms like
M&S and Next Plc is making wide attempts to minimise it.
The certain factors have been illustrated above which creates the impact on ways in
which services are being delivered by M&S and Next Plc. This also denotes that organisation
needs to emphasise on these aspects when they furnish services within the global market. This
will lead them to be sustainable within the market for longer duration of time as well as ensure
higher profit margins.
Critical assessment of management and leadership knowledge, skills & attributes that are
required by M&S and Next Plc to cope up with the altering business environments.
Leadership denotes a research area as well as practical skills which comprises of the
individuals or organisations abilities for leading and guiding their subordinates or entire firm.
Within business denotes the ability of management to formulate as well as attain the challenging
goals which will enable them to develop quick decisions when they are required. This leads firm
like Next Plc and M&S to outperform their competition as well as encourage others for
performing at the higher level. Management refers to the art and science of making people
together for accomplishment of desirable objectives and goals by integrating as well as
coordinating with all the resources in an effective & efficient manner. It comprises of entire tasks
& activities which are being carried for archiving goals through uninterrupted actions which
involves formulation of plans, their organisation, leading as well as controlling then. This assists
both organisations, Next Plc and M&S to get things done through by the people in an organised
manner.
When services are being delivered within global environment different situations comes
when leader and manger needs to make use of the abilities, skills and knowledge they possess
and for this they (Next Plc and M&S) can use different theories. This will enable to deliver their
services in an global environment efficiently and effectively. To handle different situations
different theories has been illustrated below both in context of leadership and management: They
are as:

 Contingency Theory of Leadership: It is an organisational theory which illustrates that
there is no specific way for organising a firm or developing decisions. Rather than this,
optimum course of actions entirely depends on internal as well as external conditions. It
entirely depends on the preferred style of leaders of Next Plc and M&S. This theory of
leadership emphasise on specified variables that are associated with environment which
may identify the style that can be utilised a leader within particular condition. This can be
understood by taking an example, like if leader of Next Plc faces a situation (when they
work within the global market) in which they are not able to decide what can be done
then democratic style can be utilised as it provides them with an option that they can have
ideas from the employees as different brains brings in wide range of innovative ideas.
This will also boost up the morale of employees, enhance cooperation among employees
& management. This denotes that leader of Next Plc is active as well as committed to
render their services in an appropriate manner and alter their way depending upon the
situations which prevails at specified time frame.
 Scientific theory of management: The theory examines as well as combines workflows
with an objective of improvisation of economic efficiencies in terms of labour
productivity. Basically, in context of Next Plc and M&S, it will assist them to know
what there workforce is supposed to do and whether they did it in cheapest as well as the
best ways. This theory of management emphasise on improvisation of skilfulness of each
employee who is delivering their services within the organisation. This can be understood
by taking an instance like as M&S is delivering their identical services in different
countries, this means that repetitive tasks are being carried out by them. Then this theory
will provide them with an apt results. It also denotes that when demand of specified
product increases within the one country then same product can be brought up within
other country and delivered as it was furnished their. Tasks are identical but countries are
different. But as different conditions prevails within the country they also need to take
into consideration all those aspect like there is a cultural difference then that specified
product may not be accepted there so such things must also be considered before
carrying the repetitive tasks.

For acknowledging the different situations, both leaders as well as managers of Next Plc
and M&S utilise the leadership & management skills and knowledge respectively. This will
enable them to acknowledge the different alterations which may occur within environment. For
this both the firms can utilise Kurt Lewin's Change model.
Kurt Lewin's Change model: It is a planned approach or three stage model for
organisations. Change for an organisation or individual is complicated and it is not easy
implement. This means that there lies wide stages before reaching to an equilibrium state. By
utilisation of this model, both M&S and Next Plc can have a high leveled approach towards the
process of improvisation. As they deals within the global environment, they have tyo make sure
that all the relevant policies or laws of any specified country are adhered so that any kind of
pessimistic impact is not created by them. This also implies that, it is not necessary that
conditions which prevails within any specified country are constant and may not vary (due to any
of the issues or factors like social, political, etc.). Thus it becomes, necessary for leaders as well
as managers to address those changes in an appropriate manner and for this Next Plc & Marks
and Spencer can opt for Kurt Lewin's Change model. The stages involved in this are specified
below: Unfreeze:It is the first stage as well as one of the most critical stage within the transition
process. This comprises of improvisation within readiness and willingness of people for
changing themselves by raising a realisation for moving from existent comfort zone to a
transformed condition. This comprises of making individuals aware of the need for
alterations as well as improving motivation for acceptance of new ways. Here, leaders &
managers of both the firms Next Plc and M&S needs to have effectual communication
with all the employees so that there can be appropriate involvement of individuals. Change: This stage is considered as stage in which exact execution is being carried out.
This is concerned with acceptance of new ways through which things are being carried
out. Here, individuals of M&S and Next Plc are unfrozen and actual alterations or
changes are being executed. Within this stage, effectual communication, careful planning
and involvement of employees is being encouraged as for endorsing alteration is crucial.
 Freeze: Within this stage, individuals are liable to move from changing or transitional
stage to a stable state which is being referred to as equilibrium state. This is considered as
ultimate stage where people are internalise or accept the ways in which change can be

implemented as well as accepted as a major part within their life's. Basically, when M&S
and Next Plc renders their services in other countries then they have to accept the change
which takes place.
Apart from these theories, leaders and managers of Next Plc and M&S through the
utilisation of their knowledge, skills and abilities they can ensure that they are sustainable within
the market. Some factors have been illustrated below:
Sustainability
Sustainability helps a business in decision making process and focus on meeting the
needs of organisation in order to sustain in a condition. Global companies such as M&S and
Next Plc use several management and leadership skills in order to survive in a foreign country.
These companies need to develop strategies according to the environment, economical needs and
needs of present and future generations. Application of sustainable practices in business
operations will help the mangers of the organization to run business in an efficient manner and to
benefit current and future generations. It is necessary to control all the major issues and develop
problem solving strategies to sustain in a foreign country. Respective organisations should use
sustainable management theory to improve productivity, environment and atmosphere of the
organisation.
To sustain in a country, M&S as well as Next Plc are need to develop skills for analysing
problems and issues. They need to take immediate actions when needed. Both organisations
should set clear goals and objectives and follow organisational skills. They should keep a track
on progress of organisation and take responsibility of hiring skilled and talented workforce.
Training and development of employees should be conducted and motivate them to create
innovations within organisation. Implementation of new strategies are mandatory for managers
of both organisations and should avoid traditional business principles for environmental
problems. Sustainable management helps in to process costs and benefits of organisational
operations and their survival.
Strategic leadership
Leadership can be defined as ability of the manager of organisation to guide followers
and members of organisation in order to achieve desired goals and objectives. Mangers of the
respective organisations should develop good leadership skills and should guide their employees

to survive in new environment. They should build an effective team and lead that team to
produce profitability. They should communicate with the team members and support them
throughout all business operations. Effective leaders support and motivate organisational
decisions and directions. Managers of organisation should clearly communicate their plans and
policies to their employees. The roles of the employees should be according to their capability an
performance. This will help them to work in an effective manner and generate productivity.
Managers and leaders should guide their employees regarding all the changes which are need to
be implemented in traditional business operations so that it will be easy for them to adapt the
new environment. Organisation should maintain a healthy and pleasant environment to
encourage growth and development. Strategic leadership involves active listening skills, creative
questioning and responding accordingly. Employee accountability will help in to drive positive
results of the organisation. It is important for a leader to make planned decisions and should
include team members in decision making process and which will help them to produce more
outcomes and increase productivity.
M&S as well as Next Plc should share information and knowledge across all
departments and levels to build a collaborate strategies for running their business.
Hence, these kinds of theories will help respective organisation to get a respectful
position in their industry.
Conclusion
From above it can be concluded that, globalisation is defined as process where economies
are inter-dependent as well as integrated. This is a dynamic process which is not inevitable.
There exists wide range of issues that are being faced by organisation while delivering their
services within the global market like political, economic and many others which must be taken
into account while delivering their services. Furthermore, the qualities possessed by leaders
along with managers assists them to render their products and handle employees in an
appropriate manner when any unwanted situation arises.

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