Impact of Globalization on Corporate Structure of MNCs

Research Project

Table of Contents
TOPIC:- “To determine the impact of globalization on corporate structure of MNCs and major
challenges faced by them” A Study on Marks and Spencer, London..............................................3
CHAPTER 1: INTRODUCTION ...................................................................................................3
Overview of research..............................................................................................................3
Background of research..........................................................................................................3
Rationale of research..............................................................................................................4
Research Aim.........................................................................................................................4
Research Objectives...............................................................................................................4
Research Questions................................................................................................................4
Research gap...........................................................................................................................5
CHAPTER 2: LITERATURE REVIEW.........................................................................................5
Concept and importance of Globalization for branches of a MNC........................................5
Various challenges faced by Marks and Spencer while expanding their business at global level
................................................................................................................................................6
Influence of globalisation on corporate structure of Marks and Spencer, London................7
CHAPTER 3: RESEARCH METHODOLOGY.............................................................................8
CHAPTER 4: DATA ANALYSIS AND INTERPRETATIONS ................................................11
CHAPTER 5: REFLECTION & RECOMMENDATION FOR ALTERNATIVE RESEARCH
METHODOLOGY........................................................................................................................24
Reflection.............................................................................................................................24
Recommendations................................................................................................................25
Alternative research method.................................................................................................26
CHAPTER 6: CONCLUSION......................................................................................................26
REFERENCES..............................................................................................................................27

TOPIC:- “To investigate the influence of globalisation on the corporate structure
of MNCs along with the major challenges faced by them”. A Study on Marks
and Spencer, London.
CHAPTER 1: INTRODUCTION
Overview of research
Globalisation is termed as procedure of effective collaboration between individuals,
organisation and government across national boundaries. The concept simply interconnects
international economies with the integration of markets. It is beneficial for business
organisations who wishes to expand their operational activities at national level by allowing
them to access maximum customers (Asongu and Nwachukwu, 2017). Apart from major benefits
of globalisation, the main influences of this concept can be seen over corporate structure of
company. This is because, business expansion requires modification in their structures as per
international requirements. It becomes a major considerable part for top management team of
large scale companies to manage their corporate structure in such a manner that does not affect
their working pattern or productivity. For conducting an effective research, Marks and Spencer
has been taken into consideration as the company is one among largest fashion retailer of UK
who also operates its business at international scale. In present context, the specific location that
has been taken into consideration is London, where Marks and Spencer has faced number of
issues in relation to the corporate structure at the time of globalising among different areas.
Background of research
An organisation having various departments and business units which align effectively
for attaining organisational goals are termed as corporate structure. Here, collaborative efforts of
company could get affected because of international expansion (Brown, 2017). Thus, it is
essential for business manager to maintain effective collaboration among all so that their targets
could not get affected because of international expansion. In this regard, Marks and Spencer has
been considered as the core company which will support in improving understanding over
corporate structure and its associated challenges that are faced by this company while operating
business activities at global level. The Marks and Spencer is large scale UK based fashion
retailer that offers high quality clothing range worldwide. The main reason behind selecting this
company is its presence at international scale (Auer and Mehrotra, 2014). It has been analysed

that management team of this company often faces issues associated to corporate structure while
globalising their business. Therefore, for maintaining its position and leading international
market too, its important for top management team of Marks and Spencer to mould their
corporate structure in such a manner that supports them in tackling issues at international scale.
While expanding the business in London, Marks and Spencer has gone through number of issues,
which impacted negatively upon overall performance level due to different corporate structured
based challenges faced by M&S.
Rationale of research
The major motive choosing this topic for conducting investigation is to identify various
challenges faced by large scale companies at the time of expanding business at international
scale. This investigation will allow researcher in developing their own knowledge on
globalisation and various kind of changes that it brings in corporate structure. It can also be said
that scope for this investigation is quite broad because researcher could also approach this
company for starting their professional career (Auer, Borio and Filardo, 2017). With the help of
this, Marks and Spencer would directly sustain within the market of London for a longer period
of time. Apart from this, personal interest of investigator is to groom their own skills that is
beneficial for their career growth. Some of the main personal skills that could be developed by
conducting this investigation are team working skill, analytical, communication, convincing etc.
Research Aim
Research aim for the present research study is “To investigate the influence of
globalisation on the corporate structure of MNCs along with the major challenges faced by
them”. A Study on Marks and Spencer, London.
Research Objectives
 To determine the concept and importance of Globalization for branches of a MNC.
 To evaluate various challenges faced by Marks and Spencer while expanding their
business at global level.
 To analyse influence of globalisation on corporate structure of Marks and Spencer.
Research Questions
 What is the concept and importance of Globalization for branches of a MNC ?

 What are the various challenges faced by Marks and Spencer while expanding their
business at global level?
 How globalisation influences corporate structure of Marks and Spencer?
Research gap
The particular that has been taken into consideration is directly linked with the gap that
has been identified by the investigator. With the help of this, researcher will become able to gain
knowledge in relation to actual information considering the chosen topic in respect of its
importance in the society. Including this, it is said that there are presently people working inside
such association examine that there are a few issues looked by them because of globalization
however they don't know about the genuine point which influence the entire execution. In this
way, the primary point behind directing this exploration is to diminish the hole and upgrade the
information about person.
CHAPTER 2: LITERATURE REVIEW
Concept and importance of Globalization for branches of a MNC.
According to point of view of Rangarajan, (2019), the term globalisation is defined as an
combination and integration of different economies as well as societies through across all
country by full flows of information, goods and services, ideas & innovations, technologies,
capital, finance as well as human resource. The essence or centre of globalisation is connectivity
or connection with all countries. Thus, the cross border integration can have different several
dimensions which includes cultural, political, social and the most important economic factor.
Furthermore, the word globalisation is very useful but in limited area such areas are trading in
goods and services, movement of capital and flow of finance. Globalisation permits an increase
in level of global output. Marks and Spencer has globalised due to being sustainable and
innovative and being highly ethical for beating other companies and ensuring customer
satisfaction. Globalisation has several meanings and it involves different services worldwide.
Globalisation has changed since years and there are new factors introduced in this concept. The
concept of globalisation helps companies to enter foreign markets in an effective manner. This
helps in enhancing the productivity and efficiency of the company. The main objective for
companies to become global is to create good brand image and reputation around the world. Also
it is important for companies to make effective and strong strategies before establishing business

in foreign market (Wright, 2016). This is important for all organisations to do effective research
and market analysis before operating in another country.
Including this, it is also said that the significance of this topic is that there are number of
opportunities that a business company can get in relation to growth and making profits. On the
other hand, globalisation is said to be a subject, which is continuously playing an important role
for economy as well of nations like United Kingdom and it's states like London and so on. This
raised ample number of benefits in relation to employability, growth and so on. At last according
to society perspective globalization assist in raising the living standard of people of London.
Various challenges faced by Marks and Spencer while expanding their business at global level
According to thought of Akindele, Gidado and Olaopo (2016), it is said that there are
various challenges that are faced by an organisation while it is operating at global level. Doing
business at global level is a worthy endeavour but it has some challenges too. The first thing is
that companies have to make effective plans and strategies before entering into foreign markets.
The biggest challenge is absence of physical presence. Although there is presence of internet and
telephones, but the physical presence of leaders is more important. The next challenge is cultural
diversity. If the country in which Marks and Spencer, London will establish it's market must
have common behaviours and cultures. It is important to overcome this challenge as this will
help in taking business global so that leaders can assimilate with people who will become
customers. The companies must learn the best way for reaching prospective customers as this is
an important factor in global success of the company. Mastering marketing helps in establishing
right kind of customer base which is important for success with globalisation. Trans creation is
helpful in adapting marketing content of the company to a new foreign market (Ghosh and
Siddique, 2017). The success at global market depends upon the way in which organisation
communicates, reports and tracks efforts. Another challenge that is faced by Marks and Spencer,
London is tariffs and export fees.
Apart from all these, it has also been identified that there are various countries which
have different type of tariffs and export fees which is totally different from other country. The
business leader must know about these tariffs in order to incorporate them into financial planning
element of the globalisation plans. It is essential for companies to consider ways by which
business will meet manpower requirements for operating in foreign countries. It is needed by
Marks and Spencer, London to hire new employees and this needs a lot of investment. If