Business Environment: International Expansion Strategy of Marks and Spencer

This presentation discusses the organizational structure, functional areas, and key factors that have affected the international expansion of Marks and Spencer. It also explores the impact of digital technologies on their expansion strategy.

Project Brief:
Assume you are trainee in a firm of management consultants. As part of your induction process you have been asked to research,
prepare and present information for an organisation of your choice.
The presentation should contain information on the structure of the organisation and its functions but also on the key influences/factors
that have affected its international expansions in recent years.
Your Presentation should cover the following:
-The chosen organisation that has expanded into international markets, explain whether the organizational structures and functions
are suitable to facilitate the expansion.
-Explain the impact of digital technologies have on their international expansion strategy.

BUSINESS ENVIRONMENT
STUDENT NUMBER -
02/11/ 2021

Table of contents
INTRODUCTION
MAIN BODY
About organisation
Different functional areas functional Area
Different structure of the business
Factors that affect international expansion of the business

Introduction
Business environment is the most important aspect of any business. External or internal factors that affect the
growth of the business are known as business environment.
These factors affect the most in the globalization of the company. Marks and Spencer is the British retailing
company that is involved in the selling of clothing, home and food products.
This presentation will discuss about the business size and turnover of the Marks and Spencer along with the
functional areas of the organisation. Structure of the business and factors that affected the international
expansion will also be discussed.
It will also discuss the impact of the digital technology in the internalization of the business.

About organisation
Marks and Spencer is a retail supply chain company in United Kingdom. It is a multinational company.
Company provide service related to the selling of clothing, home and food products. Its headquarter is in
London, England. Marks and Spencer currently has 959 stores in United Kingdom.
In addition to the retail service. Company is also involved in the partnership with other
organisation to provide Marks and Spenser branded service that include M&S Bank, M&S energy and M&S
Opticians.

Financial Statement of Marks and Spencer

Different functional areas functional Area
Sales
Marketing Finction
Human resource management
Finance management
Research and development function
https://www.google.com/url?sa=i&url=https%3A%2F
%2Fwww.mindomo.com%2Ffi%2Fmindmap%2Fops-mind-map-mass-
customization-
0d28da6cc1f14bf183783f0271ca74f5&psig=AOvVaw3XYW_CY002joq
7vhmlg5ok&ust=1637234954338000&source=images&cd=vfe&ved=0
CAsQjRxqFwoTCJCIi9Sln_QCFQAAAAAdAAAAABAJ

Different structure of the business
Functional Structure
Divisional Structure
Matrix Structure
Flatarchy Structure
Flat Structure

Factors that affect international expansion of the business

https://www.google.com/imgres?
imgurl=https%3A%2F
%2Fwww.mbaskool.com%2F2013_images
%2Fstories%2Fdec_images
%2Fgraph.jpg&imgrefurl=https%3A%2F
%2Fwww.mbaskool.com%2Fbusiness-
concepts%2Fmarketing-and-strategy-
terms%2F8566-external-environment-
analysis.html&tbnid=pOCE47A-
Yj_zAM&vet=12ahUKEwjVxsHop5_0AhVF
n0sFHdOABLgQMygDegUIARDVAQ..i&doc
id=abJyOjVi_5PQeM&w=490&h=413&itg=
1&q=external
%20environment&ved=2ahUKEwjVxsHop
5_0AhVFn0sFHdOABLgQMygDegUIARDVA
Q

Impact of the digital technologies
Technology is changing very fast these days. It has a major impact on the globalisation of the business.
Following are the impact of the digital technology.
Reduce Cost: adoption of the technologies in the business lead to the reduction in the cost of the company.
Technology help the organisation in many ways such as storing data, online sale. Marketing with the help
digital technology increase the customer engagement on social media platform.
It also help the business in the better communication as the use of technology made easier to communicate
from one country to another. Communication plays an important role every function including the expansion
of the company outside the domestic area of the country.
Change in technology also help the business in better understanding of the needs and desire of the
customers.

References
Contractor, F. J., and et.al, 2020. How do country regulations and business environment impact foreign direct
investment (FDI) inflows?. International Business Review. 29(2). p.101640.
Gogokhia, T. and Berulava, G., 2021. Business environment reforms, innovation and firm productivity in
transition economies. Eurasian Business Review. 11(2). pp.221-245.
Dvorsky, J., and et.al, 2020. The influence of some factors of competitiveness on business risks. Journal of
Business Economics and Management. 21(5). pp.1451-1465.
Cherunilam, F., 2021. Business environment. Himalaya Publishing House Pvt. Ltd.
Moktadir, M. A and et.al, 2020. Critical success factors for a circular economy: Implications for business strategy
and the environment. Business strategy and the environment. 29(8). pp.3611-3635.
Khazaei, M., 2021. Relationship of profitability of world’s top companies with entrepreneurship, competitiveness,
and business environment indicators. Applied Economics. 53(23). pp.2584-2597.
Zaika, Y. A and et.al, 2020. Innovative Management Methods in Terms of the Information Business Environment
at the Enterprise. International Journal of Management (IJM). 11(3). pp.529-542.
Trang, P. T. H. and Nam, V. H., 2020. Distance to the frontier and innovation: The role of local business
environment. Malaysian Journal of Economic Studies. 57(1). pp.21-37.

Appendix
BUSINESS SIZE AND TURNOVER
Marks and Spencer is an multinational company and leading on the good position in the market. Group revenue of the
business for the year 2021 was £ 9.0bn.
FUNCTIONAL AREAS
It refers to the areas or the departments of the organisations that contributes to the operational activities of the business.
ORGANISATIONAL STRUCTURE
It refers to the operational structure of the organisation that shows the different managerial levels and the operating body of
the business.
PESTEL ANALYSIS
It refers to the external factors that may affect the growth of the business.