Strategic Analysis: Mark & Spencer's Business Expansion in China

This report examines Mark & Spencer's strategic expansion into the Chinese market, analyzing the external environment using the PESTEL framework. The introduction highlights the importance of adapting business strategies to new market conditions, particularly for a retailer like Mark & Spencer. ...Read More

Individuals in Society

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................3
REFERENCES ...............................................................................................................................4

INTRODUCTION
In a economy, an organisation faces various changes and alteration in which diversify in
new market influence directly on business procedure (Nakassis, 2013). For this manager and
management of a business organisation, it is require to make effective and impactful strategy
while diversified their operational and functional activities in market. Mark and Spencer is a
British multinational retailer which was established in the year of 1884. This organisation
provide their effective services in clothings, food and home products. Now they diversify their
business into Chinese market. For them it is require to analyse business environment and macro-
social structures thus affecting the Chinese market place on firm.
MAIN BODY
Political factors – Chinese political system provide their most important contribution in
national stability and economic development. These factors are based on several policies and
rules which are regulated by government of a country. For Mark and Spencer, it is require to
implement both formal and informal rules in their business procedure that impact on country.
Over the past few years, government of China Focused on development of E-commerce to
maximise treading activities easily. China has less knowledge regarding framing of the e-
commerce, digital signature, customer rights regulation and further electronic agreements. These
activities can be beneficial for Mark and Spencer if they provide their own contribution with
government of China to expend trading business through electronic medium. Recently,
Governmental authorities has priorities local profits and benefits rather than considering toward
advancement in whole country.
Economical factors – China is known as most diversified country in terms of economic
growth. In this country, different small and medium enterprises are developed that provide their
effective and valuable contribution in economy growth. Through this, they maximise customer's
purchasing capacity (Ariely and Jones, 2012). These small ventures and each citizen adding
more values to enhance level of society. For Mark and Spencer, it can be a claver move to
diversify their business in Chinese market. In china labour cost is very low while as they have
skilled and capable employees who can provide their own contribution in economy and business
development. There can be some factor as high inflation and interest rate. Central bank of china
provide a specific limit of funds to commercial banks on nine time higher interest rate. These
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kind of activities directly impacts on customer's purchasing behaviour and their requirement
need.
Social factors – China has a different culture and social aspect that play a most important
role in effective changes. These things build fluctuation in customer's demand and their need.
For Mark and Spencer, it is require to analyse these factors as customer's demand, trends and
changes in requirement. Through this they can easily make appropriate alteration in their
products and services. Some others social factors can be customer's lifestyle, their capacity to
afford specific cost and emigration. In china, government start new project to increase trading
process through e-commerce. This online procedure provide volume in consumer's purchasing
behaviour. These activities helps to provide appropriate contribution in economy development
and growth. Through this Mark and Spencer easily expand their business in China and build
strong connection with customers (Koopmann, 2017). These activities helps to provide them
long term benefits and growth.
Technological factors – China is most developing country in the terms of advancement
of technology. But they faces major difficulties in development of safe online transactions and
business to customers promotional tools. For them it is required to implement effectiveness in
their technological process for retail and further businesses. Through this Mark and Spencer can
adopt digitalisation in their business procedure while diversify in Chinese market. Through this
they can easily build direct connection with new and target customers to getting higher business
advantages. These kind of advancement in technology maximise online transaction for safe
banking payment. Technology of china is very effective that can implement easily in
manufacturing, production and other business procedure (Stevenson and et. al., 2015).
Imbalanced technological support can build conflicts between customers product supply and
customer's demand in Chinese market.
Environmental factors – Government of china is proposed several initiatives for Nature
and environmental protection activities. For this firm requires to provide ecofriendly products to
their customers that should not impact negatively in environment of country. In this process firm
requires to analyse rules and regulations of country to implement them properly in business firm.
This process should have to be regarding disposal of waste material and ethical treatment of
animal protection activities. Mark and Spencer requires to analyse environmental issues relevant
to reality industry of china to implement them effectively in business procedure.
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Legal factors – This factor determine laws and regulation of China that are relevant to
the specific organisation and industry. Government of a country regulate different laws and
regulations to build legal structure for specific company. For this, Mark and Spencer requires to
analyse these factors and its impact to implement them properly in business organisation. China
has some specific rules and legislation for organisations and labours, so for this Mark and
Spencer requires to follow them to getting higher business advantages easily (Durkheim, 2014).
For this firm requires to identify its positive and negative impacts that firm can bear in future. In
addition, government requires to provide appropriate information to these business about
changes in law and regulations and cost of regulatory compliances.
CONCLUSION
As per the above report it has been summarised that an organisation requires to analyse
business environment and macro-social structures that can impact on business procedure. In a
country government and higher authorities regulate different law and legislation that are very
specific for a industry. For this firm needs to analyse them properly while diversifies their
business in different country. These factors are requires to analyse properly to make impactful
strategy to reduce and control its negative impact easily. External environmental factors are
beyond the control so only reduce its negative impact but can not control them. To analyse these
factors, an organisation can use PESTEL model that determine external factors properly.
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REFERENCES
Books and Journals
Nakassis, D., 2013. Individuals and society in Mycenaean Pylos. Brill.
Ariely, D. and Jones, S., 2012. The (honest) truth about dishonesty: How we lie to everyone--
especially ourselves (Vol. 336). New York, NY: HarperCollins.
Koopmann, G., 2017. Introduction. In On Crimes and Punishments (pp. 7-8). Routledge.
Stevenson, V.L., and et. al., 2015. The high cost of spasticity in multiple sclerosis to individuals
and society. Multiple Sclerosis Journal. 21(12). pp.1583-1592.
Durkheim, E., 2014. The division of labor in society. Simon and Schuster.
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