International Business: Expanding Business Internationally with Marks and Spencer

This report discusses the rationale behind expanding business internationally with Marks and Spencer, including enhancing sales and revenues, substantial economical scale, arrival in new market, and enhancing the new customer base. It also covers the barriers faced, such as cultural difference, language, political effect, supply chain demand, recruitment, and competition with local companies. The report concludes with a critical analysis of the implementation process for internationalisation.

International Business

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................1

INTRODUCTION
International business is oriented with the set of formulations that are required in order to tackle
and expand the business to various other countries. When an organisation is making profits in its
home country then the obvious landing of the organisation will be on an international basis.
Marking the onset of organisation on international terms is not a simple task. It is a tedious task
that is full of challenges and there are many atrocities that are pertaining in the way that the
organisation is moving ahead. There will be various differences and mostly the cultural barriers
that exist while dealing with international business. The organisations will have to choose
strategies such that these formulations can be inhibited in order to rule over the circumstances
that are pertaining in the host country. It is only then the speculations that are in regard to the
organisation can be eradicated and safe organisational working atmosphere can be gratified. The
report will highlight all the factors as well as the components that are a part of international
business and how far the organisation can amend means and the actions that are in charge of
bringing about a good base in international market. The organisation that is chosen in this regard
in order to bring about the scenario of internationalisation is Marks and Spencer. Marks and
Spencer is regarded to be one of the clothing retailer which is relevant brand and is also having a
good reputation in United Kingdom. It is composed of a set of rules and regulations that will
portray upon the business and its atmosphere to be one of the most valued one. This report will
highlight every factor that is in regard to internationalisation of Marks and Spencer and how far
it has attained the means of being the best.
MAIN BODY
Rationale to expand in international market
Mark and Spencer company is the leading retailer company of the UK. They are known
for their qualitative product and services (Sinkovics and Sinkovics, 2019). They time to time
make innovation in their product and services to meet the customer's requirement through their
items and services. Company is looking for the new opportunities in the new international
market. As the rise of globalization develops the various opportunities for the business. It also
enhances the competitive environment of the market. Businesses are approaching new
technologies to design their products to maintain their position in the market. To double the
revenues or to maximize the profit Mark and Spencer company wants to expand their business

internationally. Through which they can reach to their potential business goals (Birru and et.al
2019). The reason why company choose to go internationally are as follows:-
To enhance the sales and revenues:
Expanding the business internationally aim to increase the revenues and sales of the
company. As Mark and Spencer company has unique products and their popularity in their native
country is great which gives them a opportunity to expand internationally to increase their
customer base (Kingsley,Noordewier and Bergh, 2017). Also customer's in international market
always looking for the foreign product so that it will be beneficial for the company to increase
their gross revenues. Emerging new technologies in the market international trade has become a
smart option to operate with therefore it also gives the opportunity to the company to establish
their business.
Substantial economical scale:
International market gives the opportunities to the company to lower their price on the
product to increase the sales of their company's item (Aithal, 2017). Organizations are always
looking for that their items and services should accept globally so that their economic stage can
be improved or make them able to earn more revenues for their company. Mark and Spencer
company think about expanding their business through internationalization which allow them to
involve in international market to grow their business there to increase the profitability rate of
the company. Thus, internationalization will also help the company to extent their new product
and services so that customer in the new market will make investment in their services.
Arrival in new market:
It is important for the organization to increase the market value of their business. Once
they have succeeded in the product and service delivery in their local domestic market. Now its
time for them to look for the international opportunities for the business. Rise of technologies,
globalization has been producing new opportunities for the organization to expand their business
overseas (Backus, Kehoe and Kydtand, 2021). For that purpose Mark and Spencer company
must do a complete research on international market as what is the market trend of that country,
what is the buying behaviour of the company, which will allow the company to construct a
informative report. It allow them to design their products according to the report so that customer
in the new market will love their product.
To enhance the new customer base:

Additional benefit to for the company to expand their business internationally can be that
it give more customers to the company. As Mark and Spencer company already wins the trust of
their potential customer in their domestic market. Now its time for them to diversify their
business to achieve good revenues for the company. It also allows them to invest in product and
services so that customer will found their product unique. As in new market they can include the
pricing strategy which allows them to deliver product at different pricing range which will give
the option to the customer to buy product accordingly their purchasing power. It also allows the
company to reduce their cost production or to give product on affordable price to construct large
customer base. As large or broader customer base will also double the sales revenues for the
company (Cantwell, 2017).
Substantial Reach to talent:
Further more benefit of expanding business internationally is that it give fresh talented
applicant to the company. As for the Mark and Spencer company it is beneficial for them to hire
a applicant from the country which they are try to expand their business. As it gives the
advantage to the company to interact with the local communal people of the international market,
through which they can enable the customers to buy their services. It also develops the trust
between their company and local people.
Chosen of the country to expand company's business
Organisation always choose the country which can give the hike to their business.
Company can proceed with several strategies to choose which country to expand their business.
Company can conduct a full research on the market of certain country, customer buying
behaviour, their requirement which gives the complete report to company to expand their
business in the new country (Buckley, Doh and Benischke, 2017). Mark and Spencer company
wants to expand their business in India Asian country as population of India is more therefore it
will give large base of customers to the company. Therefore, they choose this country to open
their business to earn more revenues for their product and services in their chosen country's
market. Company can also go with other largest country which can be China but company has
chosen India as their company's brand awareness in India is more than compared to China
country. Company believe that their business journey with the India country will continue longer
and very strong (Singh and Giacosa, 2019).

In India company can also have opportunity to collaborate with other retailer company of
India which can help the company to get recognize of their brand product in the new market.
Company chose Indian market as people here always demand for the foreign goods, which can
also beneficial for the company to develop or design product based on the customer's needs and
requirement (Anamaria-Mirabela and Monica-Ariana, 2019). Before deciding to enter in Indian
market company did a complete analysis of the market so that it will give the information to the
company to expand there or not. They learn how people in their chosen country market react to
foreign goods, what they usually demand for and what are the factors made them enable to buy
product and services.
Rationale for the decision:
Mark and Spencer company analysed the Indian market as it is offering the better
opportunities to the company. Company has seen many opportunities for their business to grow
their revenues as they are targeting the Indian country as they found it as a second largest market
for their business (Svetličič, 2017). It will give large customer base to the company. Company
also sees opportunity to collaborate with largest retailer company of the India to increase their
brand reputation among the country's people. It gives them to open the store of their product in
different part of the country. As Indian country is providing range of people who buy foreign
product and consider them primarily. As of now company has more stores in the different part of
India. They also recruit country's people as a worker to run their stores. Recruitment of the local
people can help the company to reach the local community as they can increase the
communication so that country's people attract towards the product and services given by the
company (Wilmot, 2017).
Company's different approaches and strategies are able to bring the concern of different
stakeholder in their product and services. It is also beneficial for them to collaborate as they are
new in the market collaboration can give the support to their brand to successfully establish
there. India country also gives the competitive advantage to the company as people are their
always demands for the new product which help the company to strategically follow their plan to
design a unique product which can give the competitive advantage to their company. Company
also wants to develop a product to address the local community as customer in every market
demands for the qualitative product at minimum price. Therefore, company can proceed with
designing a product at affordable price so that it will enable the customer to invest in their

product and services (Linn, Sanden and Piekkari, 2018). Company also considering the factor to
invest in Indian market as the supply chain of raw material is very good in the market. It is
providing various range of suppliers so it will be beneficial for the company to negotiate the
price of the resources.
Barriers occur in expanding business internationally
Internationally expansion of the business brings more opportunities as well as challenges
for the company. These barriers and challenges can be overcome by strategical planning and
good research of the international market. Therefore, Mark and Spencer company decided to
expand their business internationally to grow the demand of their product and services globally
to benefit their business (Deng and Sinkovics, 2018). Before entering into international market
company need to develop a complete analysis report so that they can strategically plan their
business in new country's market. Complete analysis is the pillar of success for the company as
their profitability is based on the information through which they can be able to know the market
trend, market environment to design their product and services accordingly. The barriers can be
faced by the company are as follows-
Cultural difference barrier:
Every country has different culture in which they operate. Therefore, for Mark and
Spencer company it is easy for them to met their native customer's need through their product
and services. But it would be difficult for them to met new country's customer's demand. For an
example if the product of the company is suitable in their native country but their product are not
able to satisfy the need of new country's people so that it will be loss for the company.
Language barrier:
Communication is the most important process to interact with other. As for the Mark and
Spencer company it will be challenging for them to interact with the new country's people.
Because of language difference (Paul, 2019). They need to interact with customer to invest in
their services for that purpose they must need to adopt the knowledge of cross culture and
effective communication skills so that they can enable the people to make investment in their
product.
Political effect barrier:
Every country has their certain rules and regulations in which they operate to avoid any
legal activities. Mark and Spencer company need to know the political risk about the country in

which they want to diversify their business. So, that it will help them to protect from any legal
activities.
Supply chain demand barrier:
Management of the supply chain demand in the new country will be challenging for the
company. As for the Mark and Spencer company if delay in their product services can give the
big disadvantage to the company (Paul and Rosado-Serrano, 2019). Also, if they are not able to
negotiate with their suppliers of the raw materials will also cause the problem for them in their
production process.
Recruitment barrier to hire new applicant:
To develop the interaction with the community company focus on hiring local people as a
employee in their organization. Mark and Spencer company also facing challenge in their hiring
process as what if they are not able to find a suitable candidate who posses all the skills which
are required in their work. Also, if they hire more people it will be difficult for the company to
manage them (Bagheri and et.al 2019).
Competition with local companies:
It is always challenging for the company to compete with the local organization in new
country's market. Therefore, Mark and Spencer company is also facing a challenge as they are
new in the market. As customers around the world always prefer their country's product until
they found uniqueness in foreign goods. Therefore, it will give the disadvantage to the company
which also make them to shut their stores in new country. If company invest on their new
product and services and which would not be accepted by the new country's people then it will
be the loss of the company they can suffer financially or lead to bankruptcy (Pedada,
Arunachalam and Dass, 2020).
Therefore, these are the barriers that can face by the organization in expansion of their
business across the border. To overcome this they need a complete analysis report so that it will
be beneficial for them to deal with.
Critical analysis
The implementation process for internationalisation is followed by a series of mechanism that is
portrait of an attractive means that an organisation usually require. Since Marks and Spencer is
regarded to be one of the finest components and the organisation is operating in the retailing
sector therefore there are a lot of challenges that will have to be amended. While planning for

internationalisation the organisation will first have to concentrate upon the consequences in
which the target market is involved. Retailing sector is never into vein because there is a lot of
scope for companies to move ahead with clothing brands. Internationalisation in retailing sector
is said to be one of the important and a well renowned criteria because within a short period of
time it gets the right amount of customer base and the growth that is required. For this a research
will have to be made with the local knowledge and offer the stores as well as the required culture
is known. This research will portray upon different factors and the organisation can move ahead
with the strategic implementation of every lawful activity. Once when an organisation is entered
into internationalisation it will have to aim for every category and will have to know any
circumstances that is pertaining with respect to its trade (Pedada and et.al, 2020). Since the cross-
cultural barriers that are acting in the midst of internationalisation are a serious threat to
organisation therefore this will have to be evaluated even before the onset of organisation into
the host country. The partnership which plays a major role with respect to the local partners for
the local people who have been settled for over a long run and attaining good profit is a
mandatory. This can help them to understand the customer requirement as well as a perception
can be known on thorough basis. Without partnership the organisation might attend profit but
that might take a little more time than required. Planning for marketing will also have to be
initiated. Marketing can take the product into customers and that is required for the organisation
when it is dealing with prospects of internationalisation. Without marketing the organisation
cannot amend the objectives that are in regard to its. Therefore it is also one of the probable
entities that the organisation will eventually have to stress upon. That barriers that are acting in
regard to the payment process will also have to be initiated because the implementation process
is a mixture of every component that is in regard to taking the organisation into other country.
Understanding economic policies is also one of the best process of internationalisation
implementation. Within the organisation there will have to be a certain work that have to be
carry forwarded such that the required entities with regard to internationalisation can be known.
Advantages of the implementation process is that the organisation can get to understand the
strategies in better manner and that will be helpful for the organisation to lay foundation in other
countries. This will also fetch them a good amount of customer base which is one of the
important formulation for the organisation. The research can also bring about the different
perception that are in regard to their customers and organisational unit. The disadvantage that is

oriented with this particular entity is that it might be a cost-effective mechanism and the finding
as well as the budget which will have to be allocated can therefore be one of the biggest
disadvantage. For this the organisation will first have to work upon its budget mechanism and
allocation of resources. This will be termed as one of the biggest disadvantage and without a
proper research the organisation cannot move ahead with internationalisation processes.
CONCLUSION
The entire report concludes upon highlighting the aspects of internationalisation. Through this
report one can easily understand the prospects of internationalisation and how for every business
can expand its base into other countries. There are certain barriers and challenges that are being
explained in this report and also the onset of criteria with respect to Marks and Spencer is also
highlighted. The rational as well as certain circumstances that act as barriers of trade are also put
forth. The cultural differences as well as the cultural challenges are being explained in this
report. The target market which is the most priority for every organisation to enhance its methods
as well as the opportunities that are in regard to the organisation are also explained on better
terms. Every component in the report is brought about by the arrow explanation that will portray
circumstances which kind effect upon internationalisation. Internationalisation is not a small
concepts to be enhanced upon but it is a tedious problem that will have to be evaluated because
every organisation will have to increase its base to other countries and that can only be possible
on a strategic approach. All these factors will highlight the strategies in order to combat with the
challenges that are pertaining in the host country.

REFERENCES
Books and journals
Aithal, P.S., 2017. A critical study on Various Frameworks used to analyse International
Business and its Environment. International Journal of Applied Engineering and
Management Letters (IJAEML). 1(2). pp.78-97.
Anamaria-Mirabela, P.O.P. and Monica-Ariana, S.I.M., 2019. LANGUAGE BARRIERS IN
MULTINATIONAL COMPANIES. Annals of the University of Oradea, Economic
Science Series. 28(1).
Backus, D.K., Kehoe, P.J. and Kydtand, F.E., 2021. 11 International Business Cycles: Theory
and Evidence (pp. 331-356). Princeton University Press.
Bagheri, M. and et.al 2019. Internationalization orientation in SMEs: The mediating role of
technological innovation. Journal of International Management. 25(1). pp.121-139.
Birru, W.T. and et.al 2019. Explaining organizational export performance by single and
combined international business competencies. Journal of Small Business Management.
57(3). pp.1172-1192.
Buckley, P. and Casson, M., 2019. Decision-making in international business. Journal of
International Business Studies. 50(8). pp.1424-1439.
Buckley, P.J., Doh, J.P. and Benischke, M.H., 2017. Towards a renaissance in international
business research? Big questions, grand challenges, and the future of IB scholarship.
Journal of International Business Studies. 48(9. pp.1045-1064.
Cantwell, J., 2017. Innovation and international business. Industry and Innovation. 24(1). pp.41-
60.
Deng, Z. and Sinkovics, R.R., 2018. Rapid expansion of international new ventures across
institutional distance. Journal of International Business Studies. 49(8). pp.1010-1032.
Ferraro, G.P., 2021. The cultural dimension of international business. Prentice Hall.
Kingsley, A.F., Noordewier, T.G. and Bergh, R.G.V., 2017. Overstating and understating
interaction results in international business research. Journal of World Busines. 52(2).
pp.286-295.
Linn, A., Sanden, G.R. and Piekkari, R., 2018. Language standardization in sociolinguistics and
international business: Theory and practice across the table. In English in Business and
Commerce (pp. 19-45). de Gruyter Mouton.
1

Paul, J. and Rosado-Serrano, A., 2019. Gradual internationalization vs born-global/international
new venture models: A review and research agenda. International Marketing Review.
Paul, J., 2019. Marketing in emerging markets: a review, theoretical synthesis and extension.
International Journal of Emerging Markets.
Pedada, K., Arunachalam, S. and Dass, M., 2020. A theoretical model of the formation and
dissolution of emerging market international marketing alliances. Journal of the Academy
of Marketing Science. 48(5). pp.826-847.
Singh, P. and Giacosa, E., 2019. Cognitive biases of consumers as barriers in transition towards
circular economy. Management decision.
Sinkovics, N. and Sinkovics, R.R., 2019. International business and global value chains. In
Handbook on global value chains. Edward Elgar Publishing.
Svetličič, M., 2017. Barriers to Internationalization. In Enhanced Transition Through Outward
Internationalization (pp. 149-159). Routledge.
Wilmot, N.V., 2017. Language and the faces of power: A theoretical approach. International
journal of cross cultural management. 17(1). pp.85-100.
Online
International business, 2020. [online]. Accessed through https://hbr.org/topic/international-
business
2

3