Strategies for Expanding Business in Emerging Markets: A Study on Marks and Spencer

This research project focuses on identifying the strategies employed by Marks and Spencer to enter emerging markets. It also evaluates the challenges faced by the company and provides recommendations for moving into new markets.

Research Project

Table of Contents
INTRODUCTION ..........................................................................................................................3
Introduction to Study..............................................................................................................3
Background to Study..............................................................................................................3
Rationale of Study..................................................................................................................4
Scope of Research..................................................................................................................4
Research Aim.........................................................................................................................4
Research Objectives...............................................................................................................4
Research Questions................................................................................................................4
Time Frameworks...................................................................................................................5
LITERATURE REVIEW................................................................................................................6
To identify the new emerging trends present in international market for globalising the
business...................................................................................................................................6
To evaluate challenges M&S can face by entering the business into emerging market........8
To ascertain strategies that M&S needs to develop for moving the business into new market. .9
RESEARCH METHODOLOGY...................................................................................................10
DATA ANALYSIS AND INTERPRETATIONS ........................................................................13
RESEARCH OUTCOMES............................................................................................................14
REFLECTION AND RECOMMENDATION..............................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................17

INTRODUCTION
Introduction to Study
It is very important for organisation to analyse strategies in proper manner while entering
into any new market (Ang, Benischke and Doh, 2015). This strategies provide guideline in
managing business activities and operations in appropriate manner. In order to expand business
in different places strategies can be related with partnership, strategic alliance, licensing,
franchising and others and on other hand challenges can be related with political risk, different
culture, accounting and so on. Moreover, business has to identify such strategies and challenges
in effective manner. The chosen organisation for given research work is Marks and Spencer
which was founded by Michael Marks and Thomas Spencer in 1884 at United Kingdom. It is
multinational retail organisation that deals in selling of home, food and clothing products. This is
providing goods as well as services worldwide to their consumers in proper way so that need and
demand fulfilled. The respective research work is to achieve aim and objectives. It highlights
about literature review, research methodology and recommendation.
Background to Study
In order to emerge business into new market, it is very important to identify strategies
which can be employed by multinational organisation (Chen and Yu, 2012). These strategies are
the guidelines for business to conduct their activities as well as operations in best possible
manner to achieve set goal and objectives. For expanding enterprise, strategies can be licensing,
franchising, partnership, strategic alliance and so on. When business is expanding into
international market, then organisation has to face various challenges that creates problems in
achievement of goal and objectives. In context of Marks and Spencer, it can faces political risk,
various culture, organisational structure and so on. It is essential to analyse each and every
factors in appropriate manner for positive outcomes. Before expanding business, it is crucial for
enterprise to analyse strategies, challenges, market scenario so that results can be attained
without any difficulties. Research is performed for Marks and Spencer which wants to expand
business in other market to enhance their profit margin and market share. It is operating in 1463
location along with employing more than 80,787 number of employees to perform and achieve
set outcomes in proper way. It has several brands under which are sold at marketplace such as
Per Una, Rosie, Blue Harbour and so on.

Rationale of Study
The rationale of study is to help Marks and Spence to know about various strategies that
should be employed by business in order to enter into emerging market (Cuervo‐Cazurra, 2012).
It provide help to respective business and provide options to select best strategy in order to
sustain at marketplace and achieve success in proper manner. Other rationale of such study is to
know about challenges that may arise while enter into fresh marketplace. These strategies as well
as challenges has to be identified in proper way for conducting business activities and operations
at working place. Therefore, these are the rationale for conducting research work that helps
business to accomplish desired goal and objectives.
Scope of Research
The scope of research is to apply various types of strategies by multinational organisation
in order to expand business or emerging into market place (De Beule, Elia and Piscitello, 2014).
Moreover, adopting of strategies such as exporting has wider scope as easily products can be
supplied to consumer in appropriate manner for positive outcomes. With the adoption of
strategy, respective organisation can enhance their customer base, increase profit margins and
loyalty among consumers. It also assist in testing product at global market before making huge
investment in overseas market in effective manner. Therefore, if organisation can make identify
scope in advance then it can earn high profit margins, increase market share and so on.
Research Aim
“To identify different strategies employed by a multinational organisation while entering
into emerging market. A study on Marks and Spencer.”
Research Objectives
 To identify the new emerging trends present in international market for globalising the
business.
 To evaluate challenges M&S can face by entering the business into emerging market.
 To ascertain strategies that M&S needs to develop for moving the business into new
market.
Research Questions
 What are the new emerging trends present in international market for globalising the
business?

 What are the challenges M&S can face by entering the business into emerging market?
 What are the strategies that M&S needs to develop for moving the business into new
market?
Time Frameworks
It is defined as time period for completing research work on assigned topic in an effective
and efficient manner. The respective organisation has used following time framework such as:
Work Breakdown Structure- This is defined as oriented hierarchical decomposition of
activity that has to be executed through project team in order to complete objectives of project
work and create required deliverables (Gammeltoft, Filatotchev and Hobdari, 2012). WBS
follows proper sequence about planning, executing, controlling, monitoring and reporting. These
works are contained under WBS for identified, estimated, scheduled and budgeted.
Gantt Chart- This is defined as graphical depiction of schedule of project. It is type of
bar charts which shows beginning and finishing dates of various elements of assigned project
work which includes milestones, dependencies, tasks, resources and others (Hennart, 2012). This
is mainly used in project management that leads to plan activities and identify schedule of tasks
for completing it within given time period.

LITERATURE REVIEW
To identify the new emerging trends present in international market for globalising the business
As per views of Shubham Jain, 2019, different types of emerging trends are present in
international market for globalising business. These trends helps to expand enterprise in different
market for achievement of positive outcomes in an effective and efficient manner. It is very
essential for respective organisation to analyse each and every trends so that positive results can
be attained for enhancement of profits and market share. They are described below:
Geopolitical Realignment- The geopolitical instability is increasing day by day due to
development in respective industry that impact other business too. According to data of 2016,
Europe will be turning inward for grapple through internal political challenges, migrant crisis
and violent extremism (trends in globalisation, 2019). Due to this, West and Russia relation will

be strained through cyber activities and maritime claims. It is essential for Marks and Spencer to
analyse such trends in appropriate manner before expanding business in emerging market place.
Continued Global Violent Extremism- In recent years, terrorism has increased sharply
that creates conflicts in some areas and poses to rise in risk as impacting global economies of
nations (Hoskisson and et. al., 2013). This has also impacted Marks and Spencer to conduct
business activities in successful manner. According to 2016, there is rise in global political as
well as violent extremism that will not show abatement signs, fascist, sectarian for attracting new
people.
U.S. Economic Resurgence- In current scenario, United States is rising in terms of
engine of global economic growth. The domestic oil, gas boom, labour market, rise in demand of
consumers, world leading technology innovation and rise in demand increases organisation to
expand business in an effective and efficient manner. In 2016, there was improvement in
economy of U.S which leads to increase in consumer spending, housing markets and labour. This
leads respective organisation to emerge into new market in order to help consumers with
products and services. U.S is highly developed country so Marks and Spencer can provide goods
as well as services in online and offline form to that respective place.
Post BRICS Emerging Markets- The rise of global growth helps to shift towards
Pacific Basin and seven emerging markets which have potentiality to rise in coming years (J.
Contractor, 2013). Emerging markets will helps to reform process and grow in appropriate
manner. Marks and Spencer has to analyse such trends at market place for doing business
expansion in an appropriate manner for positive outcomes. This is new trends which is present at
international level for growth of economy of nations in best possible manner.
Evolving Artificial Intelligence (AI)- The advancement in AI leads to create
opportunities for doing research and development and success of business in effective manner.
This is new trends in international market which should be adopt by Marks and Spencer in order
to expand business in emerging market. This will helps to rise in investment in AI, R&D
capabilities and deep learning.
Therefore, these are the emerging new trends at international market to globalise
business. The respective organisation can expand business by analysing such trends and
implement those in their business for positive results in prompt way. There are various

challenges for international business that creates problems for doing expansion of enterprise at
global level.
To evaluate challenges M&S can face by entering the business into emerging market
According to opinion of Katie Reynolds, 2017, the environmental issues and political
economic are rise in international business that are major challenges for organisation to expand
their firm at international market. They are described below:
International Company Structure- This is the challenge which has to be faced by every
organisation who wants to expand their business at international market (11 Biggest Challenges
of International Business in 2017, 2017). As structure of company is different from one another
which creates problem for business to adopt respective system. If Marks and Spencer wants to
expand their business at international market, then it has to analyse structure of company
operating in similar sector for avoiding problems or issues arises in business. This challenge
create problem for achievement of positive outcomes in effective manner.
Foreign Laws and Regulations- The laws and regulations of each and every place and
country is different from other in terms of tax rate, interest rates and so on. It is very important to
understand and analysis foreign laws and regulations in appropriate manner for running business
activities and operations in efficacious way. The success of international business depends on
understanding of tax implications, trading laws, navigating legal requirements and many more.
The respective organisation has to understand foreign laws and regulations in prompt manner in
order to avoid challenges for expanding business at international market. In case of lack of
following such law leads business to pay penalty to government for misconduct of activities.
International Accounting- The legal areas which need to be considered for expanding
business international is tax compliance (Jormanainen and Koveshnikov, 2012). It is considered
as challenging impact to Marks and Spencer to expand business at international market. The
accounting method adopted by international business is different from national level where
calculation and implication of tax varies. They have various requirements of compliance, tax
systems, rates and so on which makes function of accounting to be challenging for multinational
organisations.
Universal Payment Methods- The online business sells products and services through
website and apps in easier and convenient manner to consumers and enterprises. In such
situation, payment methods that are used in home market may not be accepted in foreign

country. It is challenging for Marks and Spencer to determine acceptable payment methods in
order to ensure about processing for doing or expanding business at international level. For
example, if respective organisation has expand business at Tajikistan and it does not accept
through UPI then it is challenging for enterprise to conduct their activities and operations in
effective as well as efficient manner.
Communication Difficulties and Cultural Differences- Good communication is
regarded as heart of international business strategy. In order to do communication across culture
is regarded as challenging for business (Kingsley, Vanden Bergh and Bonardi, 2012). The
success of international business depends upon effective communication among difference
culture with customers, clients and so on. It is difficult for Marks and Spencer to expand business
at international level by following effective communication with their cross or diverse culture
people.
Therefore, apart from above, other challenges can be cost calculation & global pricing
strategy, currency rates, choosing right shipment methods, political risks, environmental issues
and others. It is very important to solve such issues and challenges in order to expand business at
international level for positive outcomes.
To ascertain strategies that M&S needs to develop for moving the business into new market
According to view of Darpan Saxena, 2019, there are various types of strategies which
helps business to enter into new market. These are the strategies that provide assistance to each
and every business for expanding business in different international market to earn maximum
profits and increase market share. Some of the major strategies are as follows:
Direct Exporting- It is defined as directly exporting of products to other international
market. This is regarded as fastest entry mode of business at foreign level. Direct exporting is
called direct sales as owner of product sales their goods directly to place for fulfilment of their
requirements (Modes of Entry into International Business [Advantages & Disadvantages],
2019). The respective organisation can adopt such strategy for expansion of business for
marketing their brand value, product and goodwill at marketplace. There is easy selection of
foreign representatives at international marketplace and helps to make big investment. When
product is available offline then there is rise in cost strategy and in case of online, fastest
expansion of strategy is adopted.

Licensing and Franchising- When existing business wants to expand their presence at
international market with minimum then companies can adopt licensing and franchising which
allow business to assume on behalf of those companies in best possible manner. The
international business has to pay royalty or commission for using brand name, logo, product,
trademarks to those business whose rights are used through way of licensing and franchising. It
is provided for particular time period. The respective organisation can apply such strategy for
doing international expansion in an effective manner for positive outcomes. It carries low cost
for entry, offers high source of income and reduced political risks. This allows for expansion in
several regions with minimal investment.
Joint Ventures- It is defined as strategies that is used for expanding business at
international level that does not share their knowledge, brand and expertise (Kotabe and Kothari,
2016). The company which wants to expand business can do joint venture with local firms.
Marks and Spencer has an opportunity to expand business at international market with helps of
joint venture strategy with local business and sharing of costs, profits, losses, investment by both
business. It carries less risk and leverage is more as compared to other strategies in an effective
and efficient manner. Sometimes, it has to faces clashes of cultural and disputes leads to
dissolution of business.
After analysis of various types of strategies, it has concluded that respective organisation
has to adopt exporting entry mode for entering into international market. It is the easiest method
for doing business and helps to protect goodwill, patent, trademarks and so on.
RESEARCH METHODOLOGY
Research methodology defined as an systematic plan for conducting or doing research in
order to gain potential outcomes (Kothari, Kotabe and Murphy, 2013). Sociologists defined no.
of methods that are qualitative and quantitative, including experiments, survey research,
observation and secondary source to collect information. Research methodology is one of most
significant part of whole research as it helps in accumulating information with help of various
tactics and tools. By defining the importance of objectives of research and questions to analyse
and reach at conclusion. The obligatory kind of justifications that are research design,
instruments, research strategy, data collection tools, validity with recommendation that identify
by researcher in order to select most appropriate approach to conduct research. Before
conducting the research the project that rely on strategies and tactics employed by multinational

organisation in order to enlarge business opportunities in positive manner. So in it the complete
chain of activities from resource allocation to find out most appropriate way to enlarge business
opportunities by using the framework that are as follows:
Research Philosophy- It is referred as the set of beliefs which concerned with nature of
reality being evaluated or investigated in proper manner (Madhok and Keyhani, 2012). There are
majorly two positions concerned here that are positivism and interpretivism. In respective
research the positivism philosophy used as it enables to collect necessary data and information in
regards to select one of best way to enter into marketplace to enlarge business opportunities in
positive manner.
Research Approach- Respective approach that are taken by researcher, largely
elaborated as either inductive or deductive. In respective research the deductive approach used
by researcher which starts with small level and gets bigger on specific hypothesis based on
information. It also associated with quantitative research that are proved beneficial in collecting
accurate data and information.
Research Strategy- Respective step of research onion states that the way a researcher
intends to carry out their work, the method of data collecting used by them and many more. In
respective research the qualitative and quantitative approaches used by them in order to gain
potential outcomes.
Research Choices- The research onion outlined the various methods of conducting the
research that are mono method, mixed and multi method. In respective research the mixed
method used by researcher that refers to usage of both qualitative and quantitative methodologies
in order to remain competitive in marketplace.
Time Horizons- Time frame refers to the time limit is intended to complete a project, it
is very much crucial to project the activities in specified time period in order to gain potential
outcomes in positive manner (Marquis and Raynard, 2015). In respective research the
longitudinal time horizon in which collection of data repeatedly over an extended time period.
Research Design- Respective step of research defined as an plan or structure by list out
all the activities and actions to coordinate the work in proper manner. Respective tool applied by
researcher to plan by using descriptive, experimental and exploratory as all are very much
important for the researcher but in context of respective research one of best tool is descriptive
design to depth evaluation of facts and figures and situation in proper manner.

Sources of Data- In order to conduct the research majorly two kinds of sources majorly
used by the researcher that are primary and secondary (Meyer, 2015). In that regards primary
data used to collect data first hand that are expensive in nature. The major techniques used in
respective method is interview, questionnaire and many more. The another source to collect
information which is secondary source in which organisation use information that are already
existed in marketplace such as books, journals, government records and articles. Respective
source of collecting information is not so much expensive and less time consuming in order to
gain potential outcomes. Hence in respective kind of research the both kind of tools to collect
information used by researcher for maintaining validity of information for long duration.
Data Collection Techniques- There are no. of data collection tools and techniques
available that are questionnaire, interview and observation (Panibratov, 2013). So it is crucial for
a researcher to collect necessary knowledge and information, one of them used in respective
research is questionnaire by asking potential questions from no. of respondents.
Research Sampling- Sample refers to the conducting study within the group of
individuals by using either probability and non probability sampling method. The major sub
types includes stratified, judgemental and systematic sampling, in respective research the method
of collecting samples used by them is judgemental and stratified sampling to gain right size of
samples. In which stratified assure about equal presentation in within specified segments on
other hand judgemental ensure about fully utilisation of time and resources to collect precious
information of work. In respective research the sample size is 40.
Data Presentation Techniques- It is very much important to collect necessary and
accurate data and information by using various kinds of tools that are line charts, bar charts and
tables in order to comply defined objectives.
Data analysis Techniques- To analyse the knowledge and information it is very essential
to use the techniques that are deductive and regression, inductive analysis. In which inductive
analysis used by investigator to analyse the results in potential manner.
Research Ethics- Research ethics majorly concerned with the study in ethical manner by
ensuring outputs in robust and relevant as per the conducts. The major principles that are applied
in research related to ethics are confidentiality, authenticity and anonymity so on. In anonymity
includes the information from all respondents that are not connected with other kind of primary
researcher in order to remain competitive in marketplace.

Limitation of Research- There are various limitations or issues while conducting
research and development that are errors in formulation of aims and objectives, building sample
size and implementation of data and statistics and many more (Peng, 2012).
Research reliability and validity- The reliability and validity of research outcomes
matters a lot in regards the work directly rely on the instrument used during the research that are
questionnaire over here. Respective instrument proved beneficial for organisation to accumulate
necessary kind of knowledge and information in give subject matter to gain potential outcomes.
DATA ANALYSIS AND INTERPRETATIONS
Questionnaire
Q1. Are you aware about market expansion and its benefits?
a) Agree
b) Disagree
Q2. What are the major benefits for an organisation while enlarge business opportunities in
foreign marketplace?
a) Gain competitive advantage
b) consumer loyalty and satisfaction
c) Enlarge business opportunities
Q3
a)
b)
c)
Q4.
a)
b)
c)
Q5.
a)
b)
c)
Q6.

a)
b)
c)
Q7.
a)
b)
c)
Q8.
a)
b)
c)
Q9.
a)
b)
c)
Q10.
RESEARCH OUTCOMES
The main outcomes of conducting research work is to identifies various strategies which
are required for organisation to expand business in emerging market. In order to earn high profit
margins, it is very important to do expansion in best manner so that positive outcomes is
attained. It can be through exporting, licensing, joint venture. When business is expanded at
international market, some challenges are faced by it for positive results. As there is frequent
change in trends at marketplace that also create problem for business to adopt latest as well as
updated trends at organisation.
REFLECTION AND RECOMMENDATION
Reflection
While conducting respective research work, I have analyse my own skills, strengths and
weaknesses. It is very important for individual to have proper understanding of subject topic so
that positive results can be attained. When I performed research, I have identified that I lack

researching skills, leadership, decision making. Moreover, I am good at communication, time
management skills which is most required by people. I haver to work on my weaknesses so that I
could improve and achieve research aim and objectives in best manner. This research work
helped me a lot to improve myself in order to develop my personal as well as professional
growth and success in best manner. Therefore, I have to work on my lacked areas in best way so
that if same work is assigned to me then I can perform it without any difficulties and problems.
Recommendation
The organisation run their business at dynamic environment which keeps on changing. In
context of Marks and Spencer, it is expanding business in other international market with help of
different strategies methods. It is very important for organisation to analyse each and every
aspects before doing any expansion in any other place. They are some recommended which are
provided to respective organisation. They are as follows:
 They have to adopt direct exporting strategies in order to emerge their business at
international market. As respective strategy is easy to adopt and use by business for
maximum output.
 It is also recommended to Marks and Spencer to evaluate all types of challenges that arise
while expanding business at international market so that problems and issues would not
arise.
 The respective organisation need to determine current as well as recent trends which took
place in retail sector so that they can adopt those in their own business for positive
outcomes.
Therefore, these are the recommendation which are provided to respective organisation
for emerging their business at international level to enhance their profit margin and increase
market share in an appropriate manner.
CONCLUSION
The respective research work concluded that there are various types of aspects that has to
be considered by organisation while expanding business at international market in effective and
efficient manner. While emerging business at global level, organisation can adopt strategies such
as exporting, licensing, franchising, joint ventures so that positive result is attained. Moreover,
challenges as well as current trends should be analysed to overcome problems that might arise
while doing expansion of business at global context. Research methodology helps business to

know about use of methods for collecting data and information. Questionnaire is prepared for
taking views of respondents to achieve aim and objectives.

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