International Business Strategy Solution Assignment

Added on - 21 Feb 2021

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InternationalBusiness Strategy
Table of ContentsINTRODUCTION..........................................................................................................................1MAIN BODY..................................................................................................................................1a) Do you agree that external factors influence organisational strategy formulation andimplementation............................................................................................................................1b) Prepare a SWOT analysis, in relation to its competitors........................................................5CONCLUSION...............................................................................................................................8REFERENCES................................................................................................................................9
INTRODUCTIONBusiness Strategy is the set of the actions and decisions that the business undertakes so assurvive effectively within the competitive market place as well as to attain the organisationalgoals in a proper manner. Therefore it is a type of blue print which helps the business managerswithin the organisation to attain the desired ends in a particular way. Moreover internationalbusiness strategy refers to the proper set of plans so that commercial transactions which is takingplace between entities in different countries (Bang, Joshi and Singh, 2016). Chosen organisationfor the report is Marks and Spencer, which is a British multinational retail company,headquartered in London. It specialises in providing high quality clothing, home as well asvarious food products. This project is based on whether there is a influence of the externalfactors on the organisational strategy formulation and implementation. In addition to this it alsodiscusses SWOT analysis in relation to its competitors.MAIN BODYa) Do you agree that external factors influence organisational strategy formulation andimplementation.As the chosen organisation for the report is Marks and Spencer, which is a specialisedretail company provides clothing, food and luxurious food products. Being a decision makerwithin the respective organisation it is necessary to analyse the external as well as the internalfactors so as to frame effective strategy and survive in this competitive world.Yes, it is determined that external factors has a great influence on the organisationalstrategy formulation and implementation. As external factors are present outside the environmentand has a great influence towards the formulation and implementation of strategy. In order todetermine the influence of the external factors it is necessary to conduct PESTLE Analysis,which is described as follows-PESTLE Analysis-It is a effective framework or a tool which is used by the managers toanalyse as well as monitor the macro environmental factors, that impacts the performance of theorganisation. This tool is effectively used by the business while entering into a foreign marketand thus frames effective strategy by analysing the external environmental factors.Political Factors-These are the activities related to government policies andprogrammes that has a effect on the performance of the company. Therefore it creates1
problem for the respective company to frame effective strategy , because of the differentpolitical conditions within the countries. As marks and Spencer has its branches all overthe countries , it becomes difficult for them to abide with all the governmental regulationand therefore conducts its business activities in a appropriate manner. Specifically thereare changes in the government policy in various sections such as trade policy, labour law,import and export restrictions (CastellóEtter and Årup Nielsen, 2016). This causesdifficulty for the manager to frame effective strategy so as to enter its business in theinternational market. Moreover government also has a set of its own rules and regulationsand respective company faces problem in formulating and implementing strategy. Inaddition to this there are varied differences in health and safety measures in different, thiscreates issue for the manager at Marks and Spencer to follow different rules in providingfood products to the customers in different countries. This is the reason that externalfactors has a great influence on the organisational strategy and implementation (Wu,2016).Economic Factors-This is the factor which is considered with the economical conditionof the country and has a direct impact towards the performance of the company. As withthe rise of inflation rate within the economy of UK, It will lead towards the increase ofprices of company's products and services and would ultimately affect the purchasingpower of the customers. Moreover this leads to reduced in the demand of the productsand services and this would cause a negative effect on the performance of the company.In addition to this, it can also be analysed that different countries have differenteconomical condition which makes difficulty for the management at Marks and Spencerto frame different strategies according to the economical condition of the country.Therefore it becomes necessary for the company to analyse the economical state of theeconomy, GDP, inflation and employment level within the country so that propermarketing plan and effective strategies could be develop so as to properly conduct thebusiness in the international market. Therefore as the current economic condition of UKis favourable which is a proper healthy sign for the economy, therefore company shouldproperly frame strategies related to fashionable clothing so as to sustain in the market fora long time period (Ghemawat, 2016).2
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