Table of Contents Title: “To determine the globalization effect upon corporate structure of large international organization and in facilitating major challenges that are faced by an enterprise– A case study of Marks and Spencer.”........................................................................................................................1 CHAPTER 1....................................................................................................................................1 Introduction.................................................................................................................................1 Objectives and Aims of this research.........................................................................................1 CHAPTER 2....................................................................................................................................2 Literature Review.......................................................................................................................2 To understand the concept of globalization................................................................................3 To determine certain issues that are faced by Marks and Spencer in international environment. .....................................................................................................................................................3 To determine relationship between globalization and corporate structure................................4 To identify best corporate structure that can be used by Marks and Spencer to maintain its competitiveness in global market................................................................................................4 Tools of project management.....................................................................................................5 CHAPTER 3....................................................................................................................................7 RESEARCH METHODOLOGIES............................................................................................7 CHAPTER 4....................................................................................................................................9 DATA ANALYSATION................................................................................................................9 CHAPTER 5..................................................................................................................................23 Recommendations....................................................................................................................23 REFLECTION.........................................................................................................................23 CONCLUSION..............................................................................................................................24 REFERENCES.............................................................................................................................25
Title:“To determine the globalization effect upon corporate structure of large international organization and in facilitating major challenges that are faced by an enterprise– A case study of Marks and Spencer.” CHAPTER 1 Introduction Corporate structure is defined as such enterprises which constitutes of various business units and departments within a business organisation. On the basis of goals ofan organisation and the industry in which an enterprise operates its activities , the structure of corporate differs in that way only(Anselma, Altenburg and Chinapaw, 2019). Globalisation is defined as the growth in independence of economies of the world, its populations, cultures, which is brought up by tradeincross-borderamongtechnology,productsandservicesandamongtheflowin information, people and investment. This research project is based upon Marks & Spencer which is a British based retail organisation that deals with high fashioned clothes, accessories, and so on for men, women and kids. This report determines the impact of globalisation among overall business activities of this organisation and the challenges that can be faced by this enterprise from globalisation. Overview Marks & Spencer is UK based multinational retail organisation that operates its activities at international level. It deals with high fashioned clothes and accessories for men, women and kids. This company has strong brand image in the market and it is famous for selling high quality of goods. It also deals with home appliances and food products and it has around 959 stores all over UK and 8087 skilled workforce in it(Badiru, Rusnock and Valencia, 2018). This enterprise has generated revenue of£10,377.3 million in the year 2019. Objectives and Aims of this research Aim The aim of this project report is, “To determine the globalization effect upon corporate structure of large international organization and in facilitating major challenges that are faced by an enterprise– A case study of Marks and Spencer.” Objectives 1
The objectives towards which this research is conducted are- ď‚·To understand the concept of globalization. ď‚·To determine certain issues that are faced by Marks and Spencer in international environment. ď‚·To determine relationship between globalization and corporate structure. ď‚·To identify best corporate structure that can be used by Marks and Spencer to maintain its competitiveness in global market. Research Questions ď‚·What is the concept of globalization? ď‚·WhatarecertainissuesthatarefacedbyMarksandSpencerininternational environment? ď‚·What is the relationship between globalization and corporate structure? ď‚·What is the best corporate structure that can be used by Marks and Spencer to maintain its competitiveness in global market? Rationale The research topic has been selected for performing an investigation upon a specific topic for creating understanding about the globalisation concept. Another reason to choose this topic is to determine the manner in which globalisation can affect the corporate structure of a specific organisations(Bartoli and Betti, 2018). Moreover, an investigator after conducting research upon a specific topic is done for identifying certain challenges that international organisations faced in the global environment. Moreover researcher has conducted this study to identify the solution for different problems that can be faced by global organisations. Investigator in this regards wants to help Marks & Spencer's managers to address best corporate structure that can be adopted by them to remain competitive in global market. CHAPTER 2 Literature Review Literature review refers to a guide which includes significant and existing knowledge and understanding such as theoretical concepts and finding and contribution regarding specific topic. It is based upon alternate sources like newspapers, google, journals, and so on(Bell, 2018). This literaturereviewwillhelpprojectmanagertounderstandthistopicinmorebetterand 2
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appropriate manner. For analysing the topic upon impact of globalisation upon corporate structure of multinational organisation and to identify major challenges that an organisation can face in the global business environment. To understand the concept of globalization. As perJohn Williamson (2019), Globalisation has been manifested in world trade growth which is in proportion to output. It has been reflected that in explosion of FDI, it has increased in countries which are developing and has increased from$2.2 billion in the year 1970 to around $154 billion in year 1997. Also the growth procedure takes it off when developing economies elites take it off came to know about certain opportunities that has been applied to world class techniques within an organisation and it also introduces certain institutional arrangement which helps in permitting pursuit of individual for serving in general that is considered to be good at social level. According toC. Rangarajan (2019), globalisation refers to economies and societies integrationwhichisthroughthecrosscountrythathasvariousflowsofideas,goods, technologies, services, information, people and finance. The globalisation essence is connectivity and the integration in cross-border can have many dimensions such as economic, political, social and cultural which is even more than that economic integration (Blake, M. and Gallimore, 2018). Although, this term is utilised in limited economic integration sense that can takes place in three channels such as capital movement, finance flow and goods and services trade. Moreover it is not phenomena and is old as history. To determine certain issues that are faced by Marks and Spencer in international environment. According to(Polonsky and Waller, 2018), the international business of Marks & Spencer is supported by franchise partners in around 30 countries in the world. In this, operation management plays an important role in breaking and making of an enterprise(Burton and Cherry, 2018). The major issue that is faced M & S by global chain of supply is changes in tastes and preferences by customers towards a specific product. There are certain researches that can be undertaken on insight and impression, recollection, performance, approach and the level of contentment for understanding consumer behaviour. The judgement has been done in worldwide market that is affected by customers procedure and by the available facts. The thing which matters in this is pre occupied customer thoughts regrading customer purpose and opinions. 3
According to(Rekha and Jahan, 2019), it becomes essential for Marks & Spencer that it should be aware about the competition that is prevailing in market from other retail enterprises. There is high amount of competition in the retail sector, especially Zara, H&M, Forever 21, who are ruling the fashion world at international level(Chodorow, 2018). This organisation is facing high amount of competition at international level and it becomes essential for it to take corrective actions and develops necessary plans that must be implemented in existing conditions of market. To determine relationship between globalization and corporate structure. According to(Roberts-Holmes, 2018), Corporate structure do not insulate from the globalisation. Because of supply chain internationalisation, it is important for globalised teams to transmit such tasks and match it across borders. Such matrix structures are required by more effective utilisation of resources and short access over market which has introduced the complexity in incentive provision, monitoring and communication. In modern organisations, managers are required to increase leading cross functional teams that are across borders. In addition to this, the compensation is not invariant towards changing patterns of management and internal corporate hierarchies(Davies and Francis, 2018). In consequent to economic research, which has been increased the overall interest in firm's internal structure. According to(Stylianou and Zembylas,2018), each multinational organisation includes functions of corporate support and production. It is different in multiple dimensions that introduce the heterogeneity within organisations. First is that the production function has various levels of hierarchy that is supported by few functions. The function in between variation into hierarchical depth is considered here which reflects differences that can be seen personnel sizes. Second thing is that it varies by span of control of management, which is a more free size hierarchy measure. The production function includes a supportive and flat typically narrow hierarchies. This, in contrast to the function of production support that produces intermediate inputs and they are insulated from the external competition at high level. To identify best corporate structure that can be used by Marks and Spencer to maintain its competitiveness in global market. According to(Williamson and Whittaker, 2019), each enterprise has some of the goals that it aims to achieve and such goals must be achieved by combining various resources efforts which includes work division, numerous activities grouping that are performed within a business entity(Drenth, 2018). For attaining such goals it is significant for an enterprise to have an 4
effective organisational structure. For achieving maximum level of performance, the corporate structureisrequiredtobeappropriateandmustbematchedwithchangesinbusiness environment. The corporate structure that is best suitable to Marks & Spencer is formal hierarchy of reporting that is from low to high level(Edwards, 2018). There must be some identical activities that have to be grouped in an department so that specific machines, expertise, processes and equipments can come under the head of one department. Moreover, effective coordination of certain activities must be available there and its authority should be specialised. Tools of project management Project management tools are the techniques which helps the organisation in the assitance of individuals and team for organising work in effective manner and also to manage all projects and tasks in an effective way. For conducting this research, there are two project management tools which are used for managing this research, that are, Gantt Chart and WBS structure. WBS Structure-Work breakdown structure is defined and elaborated as a hierarchical structure which is taken into action to outline research and than after it to break it down into smaller portions that can be easy to manage(El-Emam and Khamis, 2019). It also helps to elaborate and explain the work and activities of a project effectively and appropriately. 5
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Gantt Chart-This tool for project management is determine as a technique that helps project manager to schedule a particular project effectively and efficiently(Hines and Taylor-Grover, 2019). It also helps to determine and demonstrate a relationship that is conducted between activities which are schedules currently and the status. 6
CHAPTER 3 RESEARCH METHODOLOGIES It includes a specific techniques which are involved in procedure of investigation for gathering, collecting and evaluating information. It determines certain techniques that can be used for assembling equate data in a specific study of research. Basically, it is defined as a procedure of investigation that can be done by utilising various methods such as surveys, group discussions, interviews, questionnaires, and so on(Jones, Petrie and Murrell, 2018). It is done to help the firm in collecting relevant information which is regarding this research project. It is considered crucial as it helps to solve various operational conflicts and issues and in solving different planning. It includes decision making procedure and in considering the cause and effect relationships study 7
which is among various components that helps in assisting them in finding out certain trends and behaviour in specific forces. Research Philosophy- The belief is made regrading the manner that data and information about a specific phenomenon can be collected, utilised and analysed. There are around two main positions that are known such as interpretive and positivism through which data is assembles and can be utilised in the research project(Jones, 2019). This project of research, researcher utilises interpretive philosophy of research for completing the project of research. Research Approach- It is determined as procedures and plans that are used for conducting research which are data collection, interpretation and analysation. Its determination as in overall includes such approach which must be used for studying a topic. There are around two approaches such as inductive and deductive approach. The deductive approach begins with smaller and than it gets bigger. On the other hand, inductive starts with wide theory and than it maintains its focus upon smaller components. In this project, the approach which is used by researcher is deductive approach. Research strategy- It is defined as a plan which is conducted step by step and it provides direction towards efforts and thoughts and it also helps researcher in a systematic manner for developing high quality results and in detailed reporting. For this purpose, both quantitative and qualitative method can be used by the project manager for collecting data. Qualitative method refers to non statistical and this method is of unstructured nature. Under this method, information is gathered by interviews, documents reviews and focused groups. Qualitative method on the other hand is structured in nature and its information is collected by books, record reviews and surveys. For conducting this research, the method which is utilised by investigator is qualitative method of collecting data. Data source- It is defined as various manners in which project manager collects and gathers necessary information(Konrad and Bakker, 2018). There are two different manners from which the data is collected from resources such as secondary and primary resources under which primaryresourcesaremorerelevant.Theresearcherhavecollectedfirsthandandpure information which is collected by interviews, questionnaire and surveys. Moreover, in secondary sources, data is gathered by others for their own well defined work. In this, researcher gathers information through books, company websites, magazines, journals, articles and government sites. 8
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Research sampling- It is determines as individuals group that are selected by project manager from a large margin of population in order to get effective and collective information. This sample do the presentation of population for assuring that the things that can be generalise from the sample of research(Oakley, 2018). In this, there are 30 respondents which are selected as representative in order to collect necessary and relevant information about research which will help to analyse information in more efficient manner. CHAPTER 4 DATA ANALYSATION Questionnaire-It is defined as an instrument for conducting research which includes a series of questions for gathering necessary and relevant information and data from selected respondents. In this research, a questionnaire has been prepared for achieving the objectives of this research and 30 respondents are selected(Petrie, Jones and Murrell,2018). These respondents are stakeholders of this organisation and their answers were recorded. Following is the elaborated questionnaire that is prepared with the respondents answers in it- Theme 1: The concept of globalisation. Q1) Are you aware about the concept of globalisation? Frequency a) Yes25 b) No5 9
Interpretation:From the above graph, it has been interpreted that 25 out of 30 are aware about the concept of globalisation, whereas, 5 out of 30 respondents are not aware about the concept and benefits of globalisation upon overall organisational benefits. Theme 2: Whether globalisation provides benefits or not. Q2)Doyouagreethatglobalisation provides benefits to an organisation? Frequency a) Agree25 b) Disagree5 10 a) Yesb) No 0 5 10 15 20 25 Frequency
Interpretation:From the above graph, it has been interpreted that 25 out of 30 respondents agree with that globalisation is important for large scale enterprise as it provides high amount of profits to an enterprise. On the other hand, 5 respondents disagree with the fact that globalisation do not provide any benefit to an enterprise. 11 a) Agreeb) Disagree 0 5 10 15 20 25 Frequency
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Theme 3: Issues that can be faced by Marks & Spencer while expansion in international market Q3) What issues can be faced by Marks & Spencerwhileexpansionininternational market? Frequency a) High competition20 b) Unfamiliar culture5 c) Unstable political conditions5 12 a) High competition b) Unfamiliar culture c) Unstable political conditions 0 2 4 6 8 10 12 14 16 18 20 Frequency
Interpretation:From the above graph, it has been interpreted that 20 out of 30 respondents thinks that the main issue which can faced by Marks & Spencer is high level of competition. 5 out of 30 thinks that the main issue which can be faced by this organisation at global level is unfamiliar culture while the remaining 5 thinks that unstable political conditions is the main issue which is faced by this organisation while expanding its business at international level. Theme 4: Strategies that can be adopted by Marks & Spencer in order to face the challenges at global level. Q4)Whatstrategiescanbeadoptedby Marks&Spencerinordertofacethe challenges at global level? Frequency a) Increase in promotional measures15 b) Product development10 c) Diversification5 13
Interpretation:From the above graph, it has been interpreted that 15 out of 30 respondents thinks that for facing global level challenges, the strategy that can be adopted by Marks & Spencer is increase in promotional measures, 10 of them thinks that it can come out of those 14 a) Increase in promotional measures b) Product development c) Diversification 0 2 4 6 8 10 12 14 16 Frequency
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challenges by developing its product while the remaining 5 respondents thinks that it can do it by diversification strategy, that is, by entering into new market with the new product. Theme 5: Steps that can be taken by Marks & Spencer to eliminate the negative impact of issues. Q5) What steps can be taken by Marks & Spencer to eliminate the negative impact of issues? Frequency a) Increase promotional measures25 b) Increase distributional channels5 15 a) Increase promotional measures b) Increase distributional channels 0 5 10 15 20 25 Frequency
Interpretation:From the above graph, it has been interpreted that 25 out of 30 respondents thinks that the main step that can be taken by Marks & Spencer for eliminating the negative impact of issues is increased promotional measures. On the other hand, 5out of 30 respondents thinks that Marks & Spencer can eliminate the negative affect of such issues by increasing distributional channels. Theme 6: Manner in which Marks & Spencer can develop the best corporate structure. Q6) How Marks & Spencer can develop the best corporate structure? Frequency a)Developingcoordinationamongbusiness activities 2 b) Makes sure that all departments achieve business goals on time 3 c)Propermonitoringoforganisational functions 5 d) All of them20 16
Interpretation:From the above graph, it has been interpreted that 2 out of 30 respondents thinks that this organisation can develop best corporate structure by developing coordination among 17 0 4 8 12 16 20 Frequency
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business activities, 3 of them thinks that it can do it making sure that all the functional departments must achieve business goals on time. 5 of them think that by properly monitoring organisational functions this organisation can develop best corporate structure. On the other hand, 20 out of 30 respondents thinks that it can develop its corporate structure by conducting all these activities in an effective manner. Theme 7: Effective corporate structure affects the efficiency of an organisation dealing at international level or not. Q7)Doeseffectivecorporatestructure affectstheefficiencyofanorganisation dealing at international level? Frequency a) Yes25 b) No5 18 a) Yesb) No 0 5 10 15 20 25 Frequency
Interpretation:From the above graph, it has been interpreted that 25 out of 30 respondents thinks that an effective corporate structure will have impact upon overall efficiency of an organisation at international level. On the other hand, 5 out of them think that it is not necessary to have effective coordination to make an enterprise effective while dealing at international level. Theme 8: The best corporate strategy that can be utilised by Marks & Spencer to rule at international level. Q8) What is the best corporate strategy that can be utilised by Marks & Spencer to rule at international level? Frequency a) Growth platform strategy6 b) Market expansion strategy12 c) Online business strategy12 19
20 a) Growth platform strategy b) Market expansion strategy c) Online business strategy 0 2 4 6 8 10 12 Frequency
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Interpretation:From the above graph, it has been interpreted that 6 out of 30 respondents thinks that the best corporatestrategy which can be utilisedby thisorganisation for ruling at international level is growth platform strategy, 12 out of them thinks that the best strategy for this enterprise is market expansion strategy. On the other hand, 12 out of 30 respondents thinks that by adopting online business strategy this business can grow its activities at international level. Theme 9: Strategy that Marks & Spencer canadopt for dealing with competitors at international level Q9) What strategy canMarks & Spencer adoptfordealingwithcompetitorsat international level? Frequency a) Product development20 b) Diversification10 21
Interpretation:From the above graph, it has been interpreted that 20 out of 30 respondents thinks that the strategy which can be proved to be beneficial for this business entity for facing competition at international level is product development. On the other hand, 10 out of them 22 a) Product developmentb) Diversification 0 2 4 6 8 10 12 14 16 18 20 Frequency
thinks that this organisation can adopt diversification strategy for dealing with its competitors at international level as it will help in expanding at international level. Theme 10: The benefit of global expansion uponMarks & Spencer at international market. Q10)Whatarethebenefitofglobal expansionuponMarks&Spencerat international market? Frequency a) Increase in profits2 b) Increase in sales2 c) Enhancement in market share3 d) Improved brand image3 e) All of the above20 23 a) Increase in profits b) Increase in sales c) Enhancement in market share d) Improved brand image e) All of the above 0 2 4 6 8 10 12 14 16 18 20 Frequency
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Interpretation:From the above graph, it has been interpreted that 2 out of 30 respondents thinks that the basic benefit of expansion at global level upon Marks & Spencer is increase in profits, 2 of them thinks that it will result in enhancement in sales, 3 of them thinks that this will help in enhancement in market share, 3 respondents thinks that it will help the organisation to improve its overall brand image. On the other hand, 20 out of 30 respondents thinks that it will help the organisation in all aspects as it will increase its profits, sales, market share and brand image. CHAPTER 5 Recommendations There are certain recommendation in context of this research topic which are elaborated as follows- ď‚·For increasing its business at global level, Marks & Spencer can enhance its promotional measures and can promote its goods and services by using both online and offline promotional measures. This business entity can also enter into other developing countries which will help it to enhance its market share and profitability. ď‚·The corporate structure of an organisation also plays an important role in improving the overall efficiency of an organisation. For an enterprise, it had to be make sure that all the departments of it should function properly and must be coordinated with each other in an effective manner. ď‚·In order to reduce the issues which an organisation can face while operating its business activities at international level, Marks & Spencer can understand the culture and customs and political conditions of another country which will help it to grow successfully in an efficient and effective manner. ď‚·Moreover, in order to stand out in market, this enterprise can use various tools and technologies for developing such product which will stand out in market with innovative and must fulfil the overall requirements of customers. 24
REFLECTION I am very glad that I got this opportunity to conduct research upon the topic named,“To determine the globalization effect upon corporate structure of large international organization and in facilitating major challenges that are faced by an enterprise.” A case study of Marks and Spencer. While conducting this research, I have generated my different skills set such as marketing, analytical, communication and research skills that can help me and generate various future opportunities for me. Also, I have came across certain topics that can help to enhance my knowledge and this research also made me aware about the concept of globalisation and the way it can cause benefits to a business. This research also helped me to know the deep analysation of the issues and challenges that can be faced by an organisation while operating at global level. Also, there are certain issues that are faced by me such as there was lack of time due to which I got less time to conduct analytical research upon this topic. Although, it is resolved soon when me and my team members indulged in overtime. My overall experience was good and in future if I got such opportunity than I am now capable enough to conduct this research in more effective manner. CONCLUSION From the above report, it is concluded that globalisation is beneficial for an organisation as by it company can enhance its market share and overall profitability. This research also concludes that WBS structure can help to reduce research complexities and tasks related to it. It also concludes that there are certain methods of research which are significant to conduct a research in an effective manner. At the end of the report, a questionnaire has been conducted in this report to identify stakeholders opinions of an enterprise which is base upon impact of globalisation upon overall functioning of an enterprise. 25
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