Business Project Report: Competitive Advantage and Global Trading
VerifiedAdded on 2022/12/15
|14
|4928
|68
Report
AI Summary
This report presents a comprehensive business project analyzing Marks & Spencer's competitive position within the retail industry. It begins with an introduction to business organizations and the importance of competitive advantage. Part 1 focuses on comparative analysis, utilizing Porter's Five Forces model to assess Marks & Spencer's competitive landscape, including the level of competition, threats from new entrants, and the bargaining power of suppliers and buyers. The report also explores how Marks & Spencer's business activities contribute to gaining a competitive advantage, such as cost leadership and differentiation strategies. Part 2 delves into theoretical techniques to enhance business performance. The report concludes by discussing the challenges Marks & Spencer faces in global trading, such as choosing the right target markets and adapting to local regulations. The report offers a detailed examination of the company's strategies and challenges, providing valuable insights into the retail sector.

Business Project
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser

Table of Contents
Introduction .....................................................................................................................................1
Part 1................................................................................................................................................2
Explain comparative analysis of company's competitive position and how business activities
helps in gaining competitive advantage.................................................................................2
Discuss the different challenges the company needs to consider when trading across globe 5
Part 2 ...............................................................................................................................................7
Using suitable theoretical techniques explain what business needs to consider to enhance their
business...................................................................................................................................7
Conclusion ......................................................................................................................................9
References......................................................................................................................................12
Introduction .....................................................................................................................................1
Part 1................................................................................................................................................2
Explain comparative analysis of company's competitive position and how business activities
helps in gaining competitive advantage.................................................................................2
Discuss the different challenges the company needs to consider when trading across globe 5
Part 2 ...............................................................................................................................................7
Using suitable theoretical techniques explain what business needs to consider to enhance their
business...................................................................................................................................7
Conclusion ......................................................................................................................................9
References......................................................................................................................................12

Introduction
Business organisation is the entity where a group of individuals works together to achieve
organisational goals and objectives, it involves proper hierarchy of division of work among the
employees in the organisation also division of roles and responsibility among the team
members. The main focus of any organisation is to work towards enhancing their profitability
and productivity using various tools and techniques as it becomes important to continue to grow
and earn profit and also to enhance their productivity in order to cope up with the increasing
competition in the market and to gain competitive advantage in the market place. The
competitive advantage is the factors that allows company to perform and gain more profit than
their competitor in the market, it is also define as the process of producing quality goods and
services as compared to their competitors in the market. The competitive advantage works an
effective tool for the company to enhance their productivity and profitability in the market. In
order to gain the competitive analysis in the market company needs to analyse their competitive
position in the market, analysing the position helps business to know where they stand in the
market and where they want to reach in the future, so in order to understand and analyse their
competitive position in the market the company can carry out the comparative analysis, this
analysis helps company to understand the various factors which can effect the functioning and
profitability in the competitive market, also the corrective measures that can be taken to maintain
their competitive position in the market and continue to gain competitive advantage. In this
report Marks & Spencer is taken as the base company. Marks & Spencer is one of the top retail
company offering variety of products like clothing, home appliances and food commodities.
Marks & Spencer was founded in 1884 by Michael Marks and Thomas Spencer in Leeds with
their headquartered in London, England and united kingdom, serving world widely. At present
company is having more than 960 retail outlets across the United kingdom, more than 600 retail
outlet sell only food item covering majority of city. This report covers detailed comparative
analysis of the company's competitive position and how it results in gaining competitive
advantage also different challenges that needs to be considered while trading abroad. In addition
to this suitable theoretical techniques are used to discuss the what company needs to take into
consideration to enhance their business is also discussed is also highlighted in this report.
1
Business organisation is the entity where a group of individuals works together to achieve
organisational goals and objectives, it involves proper hierarchy of division of work among the
employees in the organisation also division of roles and responsibility among the team
members. The main focus of any organisation is to work towards enhancing their profitability
and productivity using various tools and techniques as it becomes important to continue to grow
and earn profit and also to enhance their productivity in order to cope up with the increasing
competition in the market and to gain competitive advantage in the market place. The
competitive advantage is the factors that allows company to perform and gain more profit than
their competitor in the market, it is also define as the process of producing quality goods and
services as compared to their competitors in the market. The competitive advantage works an
effective tool for the company to enhance their productivity and profitability in the market. In
order to gain the competitive analysis in the market company needs to analyse their competitive
position in the market, analysing the position helps business to know where they stand in the
market and where they want to reach in the future, so in order to understand and analyse their
competitive position in the market the company can carry out the comparative analysis, this
analysis helps company to understand the various factors which can effect the functioning and
profitability in the competitive market, also the corrective measures that can be taken to maintain
their competitive position in the market and continue to gain competitive advantage. In this
report Marks & Spencer is taken as the base company. Marks & Spencer is one of the top retail
company offering variety of products like clothing, home appliances and food commodities.
Marks & Spencer was founded in 1884 by Michael Marks and Thomas Spencer in Leeds with
their headquartered in London, England and united kingdom, serving world widely. At present
company is having more than 960 retail outlets across the United kingdom, more than 600 retail
outlet sell only food item covering majority of city. This report covers detailed comparative
analysis of the company's competitive position and how it results in gaining competitive
advantage also different challenges that needs to be considered while trading abroad. In addition
to this suitable theoretical techniques are used to discuss the what company needs to take into
consideration to enhance their business is also discussed is also highlighted in this report.
1
⊘ This is a preview!⊘
Do you want full access?
Subscribe today to unlock all pages.

Trusted by 1+ million students worldwide

Part 1
Explain comparative analysis of company's competitive position and how business activities
helps in gaining competitive advantage
Competitive advantage are the factors which makes company different from the its
competitors, it works as an effective technique for the marketing manger to enhance their
productivity and profitability. It allows company to increase their sale through ability of the firm
to generate quality product and services than its competitors in the market. Competitive
advantage involves various factors like effective brand image, offering quality products,
improved customer satisfaction and loyal customer base and so on. In order to analyse the
company's competitive position in the market the comparative analysis can be conducted by the
company which will help company to analyse where they are at the present situation and where
they want to reach in the future and also what all strategies can be taken into consideration to to
gain competitive advantage. In context to Marks & Spencer using porter's five force model the
comparative analysis can be done of company's competitive position (Agnihotri, 2016).
Porter's five force model: It is oner of the effective marketing tool used by the
marketing manger to analyse the different forces which helps in analysing the level of
competition available in the market and also the companies profitability level. This framework
helps in analysing the power of buyer and supplier hold in the market also the level of
competition available in the market for the company and also level of threat that company can
face because of any new entrant and availability of substitute products and services in the market
place. In context to Marks & Spencer the different force of porter's five force model in order to
analyse the company's competitive position in different market is discussed below:
Level of competition: The first force of porter's five force model is the level of
competition available in the market. Level of competition is basically the number of competitors
available in the market. This force enables that if the number of competitors are high offering
similar product and services, the power company holds in the market will be lower. In case of
Marks & Spencer, company operates in various market where level of competition is high, which
can effects the overall profitability and performance of the company (Cheraghalizadeh and
Tümer, 2017). The level of competition company faces directly effects their growth and
performance in the market, in order to deal with the level of competition in its various market
company can develop a unique differentiation in the marketplace, also can offer quality and
2
Explain comparative analysis of company's competitive position and how business activities
helps in gaining competitive advantage
Competitive advantage are the factors which makes company different from the its
competitors, it works as an effective technique for the marketing manger to enhance their
productivity and profitability. It allows company to increase their sale through ability of the firm
to generate quality product and services than its competitors in the market. Competitive
advantage involves various factors like effective brand image, offering quality products,
improved customer satisfaction and loyal customer base and so on. In order to analyse the
company's competitive position in the market the comparative analysis can be conducted by the
company which will help company to analyse where they are at the present situation and where
they want to reach in the future and also what all strategies can be taken into consideration to to
gain competitive advantage. In context to Marks & Spencer using porter's five force model the
comparative analysis can be done of company's competitive position (Agnihotri, 2016).
Porter's five force model: It is oner of the effective marketing tool used by the
marketing manger to analyse the different forces which helps in analysing the level of
competition available in the market and also the companies profitability level. This framework
helps in analysing the power of buyer and supplier hold in the market also the level of
competition available in the market for the company and also level of threat that company can
face because of any new entrant and availability of substitute products and services in the market
place. In context to Marks & Spencer the different force of porter's five force model in order to
analyse the company's competitive position in different market is discussed below:
Level of competition: The first force of porter's five force model is the level of
competition available in the market. Level of competition is basically the number of competitors
available in the market. This force enables that if the number of competitors are high offering
similar product and services, the power company holds in the market will be lower. In case of
Marks & Spencer, company operates in various market where level of competition is high, which
can effects the overall profitability and performance of the company (Cheraghalizadeh and
Tümer, 2017). The level of competition company faces directly effects their growth and
performance in the market, in order to deal with the level of competition in its various market
company can develop a unique differentiation in the marketplace, also can offer quality and
2
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser

value added products to their customers in oder to increase their customer base. Also company
can also make their brand image and value more stronger to present themselves more
competitive in the marketplace (Yeo and Grant, 2018).
Threat of new entrants: This force of porter's five force model is defines that entry of
new entity into the market can effect the existing firms and also the power of company can be
effected. The industry with powerful barrier to the entry is effective for the companies within
that industry as the company can demand more prices. In case of Marks & Spencer, the new
entrants with new ideas and innovation as well as low pricing strategy effects the company in
various market, while doing business in various market company where the threat of new entrant
will be high, the company needs to effectively manage all these challenges by continuously
innovating new product and services accordingly to the demand in the market also developing
their economies of scale to lower their fixed cost and making their research and development
more stronger into the market (Chul Parkb and Lee, 2018).
Bargaining power of supplier: Under this force of porter's five force model, if the
number of supplier are less in the market, the power they will hold in the market will be higher,
as in case if the number of supplier are less in number company will be depending more on them,
in such cases the supplier will have more bargaining power in the company. In case of Marks &
Spencer, company operates in the various market having number of supplier. Higher position of
the supplier can reduce the earning margin of the company, in the retail sector the supplier have
more bargaining power they can demand the price as per their wish, so to handle the bargaining
power of the supplier company maintain an effective supply chain having large and potential
number of customers. Also having loyal and hard-working supplier can help company to have
more power over the suppliers.
Bargaining power of buyer: Under the bargaining power of buyers, this force explains
that the bargaining power of the customer depends on the number of buyer that company has,
and how potential and loyal each buyer is for the company, if the number of potential buyers are
less then their power will be higher, in simple terms if the number of buyers are less then their
bargaining power will be higher and vice-versa. In context to Marks & Spencer, company has
large number of customer base across various market which makes it difficult for the company to
maintain their customers effectively and efficiently (Donnell, Gee and Silva, 2020). The
demanding customers of the company effects the profitability and performance of the company
3
can also make their brand image and value more stronger to present themselves more
competitive in the marketplace (Yeo and Grant, 2018).
Threat of new entrants: This force of porter's five force model is defines that entry of
new entity into the market can effect the existing firms and also the power of company can be
effected. The industry with powerful barrier to the entry is effective for the companies within
that industry as the company can demand more prices. In case of Marks & Spencer, the new
entrants with new ideas and innovation as well as low pricing strategy effects the company in
various market, while doing business in various market company where the threat of new entrant
will be high, the company needs to effectively manage all these challenges by continuously
innovating new product and services accordingly to the demand in the market also developing
their economies of scale to lower their fixed cost and making their research and development
more stronger into the market (Chul Parkb and Lee, 2018).
Bargaining power of supplier: Under this force of porter's five force model, if the
number of supplier are less in the market, the power they will hold in the market will be higher,
as in case if the number of supplier are less in number company will be depending more on them,
in such cases the supplier will have more bargaining power in the company. In case of Marks &
Spencer, company operates in the various market having number of supplier. Higher position of
the supplier can reduce the earning margin of the company, in the retail sector the supplier have
more bargaining power they can demand the price as per their wish, so to handle the bargaining
power of the supplier company maintain an effective supply chain having large and potential
number of customers. Also having loyal and hard-working supplier can help company to have
more power over the suppliers.
Bargaining power of buyer: Under the bargaining power of buyers, this force explains
that the bargaining power of the customer depends on the number of buyer that company has,
and how potential and loyal each buyer is for the company, if the number of potential buyers are
less then their power will be higher, in simple terms if the number of buyers are less then their
bargaining power will be higher and vice-versa. In context to Marks & Spencer, company has
large number of customer base across various market which makes it difficult for the company to
maintain their customers effectively and efficiently (Donnell, Gee and Silva, 2020). The
demanding customers of the company effects the profitability and performance of the company
3

as well. In case of company, it has large customer base which is profitable for the company, to
continue to enhance their profitability company can increase their customer base by attracting
them through innovating product and services
Threat of substitute products: The last force of porter's five force model is threat of
substitute products, under this force if there are similar product and services same as of the
company's product are launched into the market then it will work as a threat for the existing
company, the company with substitute product and services can lower the power of existing
company. In context to Marks & Spencer, it is one of the top multinational retail company, the
availability of substitute products and services becomes easy, company needs to reduce the threat
of substitute products by focusing more on being services provider rather than being focused on
their products. Also effectively analysing the needs of its customer and satisfying their needs
accordingly increasing their customer satisfaction. Company needs to continuously analyse the
market in order to evaluate customers needs and wants so in order to satisfy their needs
accordingly (Eldor, 2020).
Discuss how company's business activity helps in gaining competitive advantage
Competitive advantage plays an important role in enhancing the profitability and
productivity by offering unique and quality products then their competitors. In context to Marks
& Spencer there are different business activities which can help company's to gain competitive
advantage in the marketplace (Genoveva and Siam, 2017). Some of the factors that can be
considered by the company to gain competitive advantages are discussed below:
The company can use the cost leadership advantage to gain competitive advantage, under
this company focuses on offering product and services at the lower prices maintaining
their cost in order to gain competitive advantage. Company can use this strategy to attract
large number of customers and increase their profitability and productivity and also to
maintain their brand image.
Another factor that can be used by the company is differentiation strategy, under this the
company focuses on making themselves differentiated from their competitors by offering
differentiated products and services to their customers effectively and efficiently to
enhance their productivity and profitability.
Another business activity that can be used by the company to gain competitive advantage
into the market is by using unique strategies and maintaining their position into the
4
continue to enhance their profitability company can increase their customer base by attracting
them through innovating product and services
Threat of substitute products: The last force of porter's five force model is threat of
substitute products, under this force if there are similar product and services same as of the
company's product are launched into the market then it will work as a threat for the existing
company, the company with substitute product and services can lower the power of existing
company. In context to Marks & Spencer, it is one of the top multinational retail company, the
availability of substitute products and services becomes easy, company needs to reduce the threat
of substitute products by focusing more on being services provider rather than being focused on
their products. Also effectively analysing the needs of its customer and satisfying their needs
accordingly increasing their customer satisfaction. Company needs to continuously analyse the
market in order to evaluate customers needs and wants so in order to satisfy their needs
accordingly (Eldor, 2020).
Discuss how company's business activity helps in gaining competitive advantage
Competitive advantage plays an important role in enhancing the profitability and
productivity by offering unique and quality products then their competitors. In context to Marks
& Spencer there are different business activities which can help company's to gain competitive
advantage in the marketplace (Genoveva and Siam, 2017). Some of the factors that can be
considered by the company to gain competitive advantages are discussed below:
The company can use the cost leadership advantage to gain competitive advantage, under
this company focuses on offering product and services at the lower prices maintaining
their cost in order to gain competitive advantage. Company can use this strategy to attract
large number of customers and increase their profitability and productivity and also to
maintain their brand image.
Another factor that can be used by the company is differentiation strategy, under this the
company focuses on making themselves differentiated from their competitors by offering
differentiated products and services to their customers effectively and efficiently to
enhance their productivity and profitability.
Another business activity that can be used by the company to gain competitive advantage
into the market is by using unique strategies and maintaining their position into the
4
⊘ This is a preview!⊘
Do you want full access?
Subscribe today to unlock all pages.

Trusted by 1+ million students worldwide

market. The company needs to maintain their competitive advantage into the market by
using unique strategies.
At last the factor or business activity that can be used by the companies to gain
competitive advantage is by offering unique and value added product and services to their
customers and continuously interacting with them to enhance customer loyalty (Hague,
2019).
Discuss the different challenges the company needs to consider when trading across globe
The are number of challenge available that company can face when they trade across the
globe. In context to Marks & Spencer, company needs to consider various challenges while
trading across the globe which are discussed below:
Choosing the accurate target market: It is really important for a company to position
themselves well. Language can be a major factor as most of the people won't be able to buy the
product from the company's website if the products are not described in the local language. In
order to attract the potential customer the company needs to translate the size measurements
according to the local measurements and also to provide prices in local currencies. The target
market is the area from where the company has the expectation of major sales and that area of
market is very essential for the company as it will not only increase the sales of the company but
also helps the company to become popular. In context to Marks & Spencer, the company uses
their website to reach as many people as possible by modifying their websites according to the
local language (Van Wormer and Besthorn, 2017).
Having a trusted logistics partner: The company needs to find a trusted logistics
partner while doing overseas business as they an help the company to store inventory, fulfil their
orders, handle returns as well as provide customer service. When the customer gets effective
logistics services they are likely to make another order again which will no only increase the
profits of the company but also will help the company in building reputation cross borders.
Effective logistics is one of the major factor that can influence the growth of the company in a
new country as people likely to be more interested in the company who can provide them better
services. In reference to Marks & Spencer, they are making sure that their customers are getting
their products on right time and according to their convenience (Kuimov, 2017).
Lower international costs: The company must try to find a solution for international
currency exchange. The currency exchange can be a big hurdle for a company as companies
5
using unique strategies.
At last the factor or business activity that can be used by the companies to gain
competitive advantage is by offering unique and value added product and services to their
customers and continuously interacting with them to enhance customer loyalty (Hague,
2019).
Discuss the different challenges the company needs to consider when trading across globe
The are number of challenge available that company can face when they trade across the
globe. In context to Marks & Spencer, company needs to consider various challenges while
trading across the globe which are discussed below:
Choosing the accurate target market: It is really important for a company to position
themselves well. Language can be a major factor as most of the people won't be able to buy the
product from the company's website if the products are not described in the local language. In
order to attract the potential customer the company needs to translate the size measurements
according to the local measurements and also to provide prices in local currencies. The target
market is the area from where the company has the expectation of major sales and that area of
market is very essential for the company as it will not only increase the sales of the company but
also helps the company to become popular. In context to Marks & Spencer, the company uses
their website to reach as many people as possible by modifying their websites according to the
local language (Van Wormer and Besthorn, 2017).
Having a trusted logistics partner: The company needs to find a trusted logistics
partner while doing overseas business as they an help the company to store inventory, fulfil their
orders, handle returns as well as provide customer service. When the customer gets effective
logistics services they are likely to make another order again which will no only increase the
profits of the company but also will help the company in building reputation cross borders.
Effective logistics is one of the major factor that can influence the growth of the company in a
new country as people likely to be more interested in the company who can provide them better
services. In reference to Marks & Spencer, they are making sure that their customers are getting
their products on right time and according to their convenience (Kuimov, 2017).
Lower international costs: The company must try to find a solution for international
currency exchange. The currency exchange can be a big hurdle for a company as companies
5
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser

dealing with high rates of exchange are actually facing this problem. The exchange rates are one
of the most important part of the income as without exchange the company cannot get their
profits for further use. The customers naturally pays in their local currency and its the job of the
company to exchange it in order to get the currency they want. For that exchange government
charges some amount from the company. The amount taken by the government from the
company is known as exchange rates. In respect to Marks and Spencer, they are travel money
service provider which means that they themselves provide the service of currency exchange
which means that they are benefited from this already (Lev, 2017).
Dynamic regulatory changes: The company continuously have to cope up with the
regulatory changes prevailing in the economy of the countries in which they are dealing. The
company needs to take continuous follow ups with the regulatory changes in order to ensure that
the products and services of the company are fulfilling all the legal requirements. In context to
the company, they are trying to constantly remain updated according to the new rules and
regulations of the country in which they are dealing. In order make their company ethical and
trustworthy they make sure that all the legal requirements are fulfilled by the company.
In-consonant standards: There are different rules across the country and the companies
need to comply with those standards according to the country they are dealing in individually.
The companies does not have the leverage to deal with the same standards in every country they
are dealing in. its a big disadvantage for the company as the company have to make sure that
before doing business in a specific country they need to make sure that they comply with their
rules first. In context to Marks & Spencer, the company is currently dealing in 29 countries and
its necessary for the company to deal with each and every countries rules and regulations
separately (Li and Liu, 2018).
Long waiting to enter the market: Due to all the hurdles and the regulatory compliance
the entry time of the company in the specific market gets delayed which not only increase the
cost of the company but also make a huge difference in the planning strategy of the company.
The delay sometimes takes too much time for the company that they have to suffer all the loss.
The company goes to trade cross border in order to capture the potential market before other
competitors but because of regulatory delay the competitors get themselves prepared for entry in
the market with even less difficulties. In context to Marks & Spencer, the company entered the
market of different companies and they also had suffered lots of difficulties in entering each of
6
of the most important part of the income as without exchange the company cannot get their
profits for further use. The customers naturally pays in their local currency and its the job of the
company to exchange it in order to get the currency they want. For that exchange government
charges some amount from the company. The amount taken by the government from the
company is known as exchange rates. In respect to Marks and Spencer, they are travel money
service provider which means that they themselves provide the service of currency exchange
which means that they are benefited from this already (Lev, 2017).
Dynamic regulatory changes: The company continuously have to cope up with the
regulatory changes prevailing in the economy of the countries in which they are dealing. The
company needs to take continuous follow ups with the regulatory changes in order to ensure that
the products and services of the company are fulfilling all the legal requirements. In context to
the company, they are trying to constantly remain updated according to the new rules and
regulations of the country in which they are dealing. In order make their company ethical and
trustworthy they make sure that all the legal requirements are fulfilled by the company.
In-consonant standards: There are different rules across the country and the companies
need to comply with those standards according to the country they are dealing in individually.
The companies does not have the leverage to deal with the same standards in every country they
are dealing in. its a big disadvantage for the company as the company have to make sure that
before doing business in a specific country they need to make sure that they comply with their
rules first. In context to Marks & Spencer, the company is currently dealing in 29 countries and
its necessary for the company to deal with each and every countries rules and regulations
separately (Li and Liu, 2018).
Long waiting to enter the market: Due to all the hurdles and the regulatory compliance
the entry time of the company in the specific market gets delayed which not only increase the
cost of the company but also make a huge difference in the planning strategy of the company.
The delay sometimes takes too much time for the company that they have to suffer all the loss.
The company goes to trade cross border in order to capture the potential market before other
competitors but because of regulatory delay the competitors get themselves prepared for entry in
the market with even less difficulties. In context to Marks & Spencer, the company entered the
market of different companies and they also had suffered lots of difficulties in entering each of
6

the market but that doesn't mean that if now they enter any other market then they will not suffer
any difficulty. With each new potential comes new regulatory difficulties (Liao, 2016).
Huge compliance cost: The cost of dealing with all the rules and regulation plus the
delaying cost makes it really expensive for the company to enter any new market. This will
effect the prices of the products and services that are offered by the company. The cost of
production increases when a company deals with new complications and invest their time as well
as expenses, the ultimate burden of that is on the customer and they have to pay the prices for
that (Porter, 2016). It is important for every host company to make sure that the company coming
in the country must comply with all the rules and regulations of the country. So that the domestic
companies feel secure and the outside company cannot dominate the host country's market. In
context to Marks & Spencer, the company tries to fulfil all the roles and responsibilities that is
necessary for the company to comply before entering into any new market.
From the above discussion if a company wants to be successful in the potential market of
other country then it is necessary for them to comply with all the rules and regulations off that
country. By complying with all the rules and regulations of a specific country the company is
able to built trust among the customers of the country. The following challenges needs to be
considered effectively while trading across globe also to enhance their business (Lucas and
Noordewier, 2016).
Part 2
Using suitable theoretical techniques explain what business needs to consider to enhance their
business
With growing competition in the market it becomes very important for the company to
continuously enhance their business effectively by analysing their environment and using
appropriate strategies. Also there are number of theoretical techniques available for the business
which can help them in enhancing their business. In context to Marks & Spencer, using
appropriate theoretical techniques, what company needs to consider to enhance their company is
highlighted below:
Macro environmental analysis: It is one of the most commonly used theoretical tool
used by the business to analyse the various external factors available which can effect the
functioning and profitability of the business. The macros environmental factors includes PEST
7
any difficulty. With each new potential comes new regulatory difficulties (Liao, 2016).
Huge compliance cost: The cost of dealing with all the rules and regulation plus the
delaying cost makes it really expensive for the company to enter any new market. This will
effect the prices of the products and services that are offered by the company. The cost of
production increases when a company deals with new complications and invest their time as well
as expenses, the ultimate burden of that is on the customer and they have to pay the prices for
that (Porter, 2016). It is important for every host company to make sure that the company coming
in the country must comply with all the rules and regulations of the country. So that the domestic
companies feel secure and the outside company cannot dominate the host country's market. In
context to Marks & Spencer, the company tries to fulfil all the roles and responsibilities that is
necessary for the company to comply before entering into any new market.
From the above discussion if a company wants to be successful in the potential market of
other country then it is necessary for them to comply with all the rules and regulations off that
country. By complying with all the rules and regulations of a specific country the company is
able to built trust among the customers of the country. The following challenges needs to be
considered effectively while trading across globe also to enhance their business (Lucas and
Noordewier, 2016).
Part 2
Using suitable theoretical techniques explain what business needs to consider to enhance their
business
With growing competition in the market it becomes very important for the company to
continuously enhance their business effectively by analysing their environment and using
appropriate strategies. Also there are number of theoretical techniques available for the business
which can help them in enhancing their business. In context to Marks & Spencer, using
appropriate theoretical techniques, what company needs to consider to enhance their company is
highlighted below:
Macro environmental analysis: It is one of the most commonly used theoretical tool
used by the business to analyse the various external factors available which can effect the
functioning and profitability of the business. The macros environmental factors includes PEST
7
⊘ This is a preview!⊘
Do you want full access?
Subscribe today to unlock all pages.

Trusted by 1+ million students worldwide

which stands for political, economical, social and technological, and PESTEL which stands for
political, economical, social, technological, environmental and legal. These factors helps
company to deal with various external factors available which can effect the functioning and
profitability of the business. In context to Marks & Spencer, in order to enhance their business
company needs to carefully analyse the various micro environmental factors available, these
factors directly influence the profitability and functioning of the business, so in order to continue
to grow and gain competitive advantage macro environmental factors like political stability and
instability of the country which will directly effect the company, changing economic trends,
currency exchange rate of different country where company operates, religious and cultural
consideration, changing lifestyle, technological changes and advancement , different laws like
employment law, protection laws, immigration laws, changing rules and regulation, different
policies, and so on all these factors needs to be considered by the company in order to enhance
their overall business (McDonald, 2016). In context to Marks & Spencer, company has strong
political, technological and economical factor which should be focused more in order to continue
to enhance their business and improve their performance and profitability.
Ansoff's matrix: The another theoretical tool which can be used by the company to
enhance their business is Ansoff matrix. It is one of the important tool that can be used by the
companies when they wants to grow and develop growth strategies. The four strategies of this
tool can be used to enhance the business. In context to Marks & Spencer, the four strategies of
Ansoff theoretical tool is explained below:
Market penetration: Through this strategy company can enhance their business and
increase profitability by increasing their profitability and sales of their existing product and
service in to the already established market (Patel, 2017).
Product development: The another strategy is product development, under this strategy
the company focuses on innovation and new ideas, the company tries to bring new product and
services into the already existing market.
Market Development: The next strategy is market development, under this strategy the
company's main focus is increasing their market share by entering into new market with already
existing product, this will help company to enhance their business as the company's product is
already well established in the market, so entering into the new market with already well
established product will be easier for the company enhance their business (Öz, 2019).
8
political, economical, social, technological, environmental and legal. These factors helps
company to deal with various external factors available which can effect the functioning and
profitability of the business. In context to Marks & Spencer, in order to enhance their business
company needs to carefully analyse the various micro environmental factors available, these
factors directly influence the profitability and functioning of the business, so in order to continue
to grow and gain competitive advantage macro environmental factors like political stability and
instability of the country which will directly effect the company, changing economic trends,
currency exchange rate of different country where company operates, religious and cultural
consideration, changing lifestyle, technological changes and advancement , different laws like
employment law, protection laws, immigration laws, changing rules and regulation, different
policies, and so on all these factors needs to be considered by the company in order to enhance
their overall business (McDonald, 2016). In context to Marks & Spencer, company has strong
political, technological and economical factor which should be focused more in order to continue
to enhance their business and improve their performance and profitability.
Ansoff's matrix: The another theoretical tool which can be used by the company to
enhance their business is Ansoff matrix. It is one of the important tool that can be used by the
companies when they wants to grow and develop growth strategies. The four strategies of this
tool can be used to enhance the business. In context to Marks & Spencer, the four strategies of
Ansoff theoretical tool is explained below:
Market penetration: Through this strategy company can enhance their business and
increase profitability by increasing their profitability and sales of their existing product and
service in to the already established market (Patel, 2017).
Product development: The another strategy is product development, under this strategy
the company focuses on innovation and new ideas, the company tries to bring new product and
services into the already existing market.
Market Development: The next strategy is market development, under this strategy the
company's main focus is increasing their market share by entering into new market with already
existing product, this will help company to enhance their business as the company's product is
already well established in the market, so entering into the new market with already well
established product will be easier for the company enhance their business (Öz, 2019).
8
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser

Diversification: The last strategy of Ansoff matrix is diversification, under this company
focuses on enhancing their business by taking risk of entering new market with the new product,
entering with new and unique idea can help company is enhancing their business more
effectively and efficiently (Prabhakar, 2017).
From the above discussion, in context to Marks & Spencer, company can use product
development strategy in order to enhance their business, this strategy will help company to
increase their customer base as company is already a well established multinational company
across globe, so introducing new product into the well established market will be easier for
company to enhance their business and also to increase their productivity and profitability Siedel
and Haapio, 2016).
Conclusion
From the above report it can be concluded that business organisation helps in
coordination different individuals for smooth functioning of business activities and with main
aim of providing good and services with the aim of earning profit and enhance their productivity.
In the above report in order to find the company's competitive position in the various market a
comparative analysis is done using porter's five force model, this model helps in analysing the
different forces which are available which can effect the profitability and competitive position of
the business. The forces like threat of new entrant into the market with innovative product and
services also level of competition available in the market which can effect the profitability of the
business and the bargaining power buyer and suppliers hold which has direct influence on the
power company holds in the market place, also various substitute products available similar to
the existing company can also effect the competitive position in the market, in such situation
having strong competitive advantage in the market also becomes very important for the
company, how company's business activity leads to gaining advantage is also highlighted above,
various methods like cost leadership where the product and services are offered at lower prices
also differentiation strategy where the products and services of the company differentiated from
its competitors also maintaining strong strategy, offering unique and value added products to its
customers helps company to gain and maintaining competitive advantage for the company in the
marketplace. Furthermore different challenges the company needs to take into consideration
when trading across border for smooth functioning of the activities across the border, as well as
the competitive advantage can be maintained is also highlighted in the above report. Marks &
9
focuses on enhancing their business by taking risk of entering new market with the new product,
entering with new and unique idea can help company is enhancing their business more
effectively and efficiently (Prabhakar, 2017).
From the above discussion, in context to Marks & Spencer, company can use product
development strategy in order to enhance their business, this strategy will help company to
increase their customer base as company is already a well established multinational company
across globe, so introducing new product into the well established market will be easier for
company to enhance their business and also to increase their productivity and profitability Siedel
and Haapio, 2016).
Conclusion
From the above report it can be concluded that business organisation helps in
coordination different individuals for smooth functioning of business activities and with main
aim of providing good and services with the aim of earning profit and enhance their productivity.
In the above report in order to find the company's competitive position in the various market a
comparative analysis is done using porter's five force model, this model helps in analysing the
different forces which are available which can effect the profitability and competitive position of
the business. The forces like threat of new entrant into the market with innovative product and
services also level of competition available in the market which can effect the profitability of the
business and the bargaining power buyer and suppliers hold which has direct influence on the
power company holds in the market place, also various substitute products available similar to
the existing company can also effect the competitive position in the market, in such situation
having strong competitive advantage in the market also becomes very important for the
company, how company's business activity leads to gaining advantage is also highlighted above,
various methods like cost leadership where the product and services are offered at lower prices
also differentiation strategy where the products and services of the company differentiated from
its competitors also maintaining strong strategy, offering unique and value added products to its
customers helps company to gain and maintaining competitive advantage for the company in the
marketplace. Furthermore different challenges the company needs to take into consideration
when trading across border for smooth functioning of the activities across the border, as well as
the competitive advantage can be maintained is also highlighted in the above report. Marks &
9

Spencer is one of the top multinational retail company offering its services wide widely, to
maintain their competitive position in it various market becomes very important for the company
so to maintain their profitability and competitive position in the various market becomes very
important for the company, so order to do so company needs to effectively consider the
challenges while trading across the borders also with the help of using suitable theoretical
techniques and tools what company needs to consider to enhance their business is explained
above, this tool helps in analysing the corrective measures that needs to be taken by the company
to enhance their business and also to increase their profitability and productivity in the
marketplace.
10
maintain their competitive position in it various market becomes very important for the company
so to maintain their profitability and competitive position in the various market becomes very
important for the company, so order to do so company needs to effectively consider the
challenges while trading across the borders also with the help of using suitable theoretical
techniques and tools what company needs to consider to enhance their business is explained
above, this tool helps in analysing the corrective measures that needs to be taken by the company
to enhance their business and also to increase their profitability and productivity in the
marketplace.
10
⊘ This is a preview!⊘
Do you want full access?
Subscribe today to unlock all pages.

Trusted by 1+ million students worldwide
1 out of 14
Related Documents

Your All-in-One AI-Powered Toolkit for Academic Success.
+13062052269
info@desklib.com
Available 24*7 on WhatsApp / Email
Unlock your academic potential
Copyright © 2020–2025 A2Z Services. All Rights Reserved. Developed and managed by ZUCOL.