Organizational Structure and Business Expansion - Desklib

Organizational
Structure and
Business Expansion

Table of content
Introduction
International Expansion of Marks & Spencer
Suitability of Organizational Structure in Business Expansion
Suitability of Functional areas in Business Expansion
Factors that influence the international expansion of Marks and Spencer
Impact of Digital Technology on Global Expansion
Conclusion
References

INTRODUCTION
Every business organization wants to expand its business to earn long term profitability and to increase market
share to be stable in the market for further growth. Business expansion requires a suitable organizational
structure and appropriate functional areas of business to face the global competitors in the international market.
To expand the business, it is required to analyse the impact of technology on the business to get its optimum
advantage. The following report will cover the business expansion of Marks and Spencer in international
markets. It is a multinational public limited company in retail sector headquartered in London, England, UK. It
deals in clothing, home and food products. The report will explain the organizational structure of Marks &
Spencer and its functional areas that contribute to its global expansion. This report will also cover the internal
factors of the company that influence its international expansion. Further, it will also cover the impact of digital
technology on its global expansion.

International Expansion of Marks & Spencer
Marks and Spencer was founded by Michael Marks & Thomas Spencer and was established in
1884 in UK. It serves worldwide with almost 1463 locations with more than 75000 employees
as of 2022. It offers different variety of brands in clothing for both men and women. It has also
expanded its food business domestically. M & S has a wide domestic expansion of clothing and
food business. It began its international expansion with the introduction of Asian food in 1974.
further in 1975, it opened its stores in continental Europe and in Ireland as well.
In 1973, Marks & Spencer expanded in Canada but due to the small size of the stores,
it did not contribute to increase the customer base. Consequently, in the year 1999 the less profit
generating stores were to be closed that included almost 38 stores. Further it expanded its
operations in France with the stores opening in Paris and Lyon in 1975. The shops in Paris were
profitable but in 2001, it had to close its western Europe operations due to unprofitability.
Further in 2011, it introduced its food outlets in Paris with clothing products