Identifying Risks and Benefits: Global Business in Retail Sector - M&S

This report examines the global business environment and its effects on the retail sector, using Marks and Spencer (M&S) as a case study. The introduction highlights the impact of globalization on businesses, emphasizing the spread of products, technology, and information across borders. The research background focuses on identifying the risks and benefits for M&S, a major British multinational retailer. The rationale explains the importance of studying the impact of the global business environment on business operations, especially considering trade policies. The report aims to identify the risks and benefits of the global business environment on the functions and operations of M&S. The literature review explores the meaning and concept of the global business environment, its advantages, and the risks faced by organizations. The methodology section details the qualitative research methods, inductive approach, and probabilistic sampling used, including data collection through surveys. The findings and results are presented based on the collected data. Recommendations are provided to expand the business in the global environment by taking advantages and overcoming risk factors. The report concludes with a reflection and references.

RESEARCH PROJECT

TABLE OF CONTENTS
TOPIC:.............................................................................................................................................1
INTRODUCTION...........................................................................................................................1
Research Background.............................................................................................................1
Rationale.................................................................................................................................1
Aim and Objectives................................................................................................................2
LITERATURE REVIEW................................................................................................................2
Meaning and Concept of global business environment..........................................................2
Advantages of global business environment on the functions and operations of retail business.
................................................................................................................................................3
Risk faced by organisation in retail industry operating in global business environment.......3
RESEARCH METHODOLOGIES.................................................................................................4
Research Methods..................................................................................................................4
Research Approach.................................................................................................................4
Sampling.................................................................................................................................4
Data Collection.......................................................................................................................5
Data Analysis..........................................................................................................................5
FINDINGS AND RESULTS...........................................................................................................5
RECOMMENDATION.................................................................................................................11
ALTERNATIVE RESEARCH METHODOLOGIES .................................................................12
REFLECTION...............................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
APPENDIX....................................................................................................................................17

TOPIC:
“To identify the risk and benefits of global business environment on the functions and
operations aspect of business in retail sector. A study on Marks and Spencer.”
INTRODUCTION
Globalisation is a fact because of technology, because of an integrated global supply
chain, because of changes in transportation. Globalisation is the speed of light. It is the spread of
products, technology, information and jobs across the national borders and cultures. In addition
to this, global business environment is the environment in different sovereign nations with
factors exogenous to home environment of the company, affecting decision making on the
resources use as well as capabilities (Murray, Skene and Haynes, 2017). Legal, social, political,
technological, social and economic and all the global external factors which influence the
business in both positive and negative way. After globalisation, organisation had graphed many
opportunities to trade across the world as globalisation has also developed liberalisation policy.
Apart from the positive things, globalisation has also led to raise many risks in the operations
and functions of business such as trade imbalance, dominant global brands, rapid change in
technologies etc.
Thus, this present report will identify the risk and benefits of global business environment
on the functions and operations of business by using various techniques and methods.
Research Background
This present research study is based on identifying the risk and benefits of global
business environment on the functions and operations Marks and Spencer (M&S) is a major
British multinational retailers in United Kingdom. It is one of the recognised brand in clothing
and other luxury goods. Within increasing trade across the boarders, Marks and Spencer also
raise the production scale of the company for which they start selling their product across the
world (Dyllick and Muff, 2016). Further, the migration of labour across the nations is also
increased which is also one of the great advantage for company working in the global market.
Further, the risk factors is that if particular country do not have liberal policies than the
operations are badly affected.
Rationale
The reason behind choosing the topic globalisation is that it is one of the word which is
very popular in the context of business. It is fact that globalisation has bought many
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opportunities for businesses to grow and expand but it also leads many risk factors. In this
present research study, the impact of global business environment is on the operations and
functions of the company as it has been noticed that the country which do not provide liberal
policies of trade it will directly affect the operation and function of firm (Namada, 2018) .
Aim and Objectives
Aim:
“To identify the risk and benefits of global business environment on the functions and
operations aspect of business in retail sector. A study on Marks and Spencer.”
Objectives:
 To articulate the meaning and concept of global business environment.
 To identify the advantages of global business environment on the function and operations
of retail business.
 To determine the risk that organisation faces operating in global business environment.
 To provide recommendations to expand the business in global business environment by
taking advantages and overcoming the risk factors.
Research Questions:
1. What is the meaning and concept of global business environment?
2. What are the advantages of global business environment on the function and operations
of business?
3. What are the risk that organisation faces operating in global business environment?
4. What are the recommendations to expand the business in global business environment by
taking advantages and overcoming the risk factors?
LITERATURE REVIEW
Meaning and Concept of global business environment
As per the Kolk, (2016) global business environment is the environment in various
sovereign nations, with factors exogenous to home countries of the company affecting the
decision making resources use and capabilities. It is very important for organisation that to
understand the social environment of the host nation they are operating as there are thousands of
country that operate in many parts of the globe. These companies shave to acquaint themselves
with the language as well as culture of the nations where they are operating. All the policies and
strategies needs to be followed by the counties where they are operating and it may vary from
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nations to nations but still it is mandatory for all. As per my personal opinion, global business
environment creates so many opportunities and challenges for the companies in order to gain
competitive advantages.
According to Bendell, (2017) businesses operating in the global business environment,
they have to formulate many strategies for which they have to understand the factors such as
social, environmental, political, legal, economic and technological in order to understand the
global business environment. These factors affect the business functions and operations both
positively and negatively. There are variety of reasons why organisation go globe as they just
want to expand the business operations, generating more revenues, investment opportunities,
competing sales, recruiting new talent and reducing cost. As per the my views, technological
factors its one the leading factors in today's environment that leads to affect business operations
in both positive and negative way as if organisation do not implement technologies within
operations, the impact is highly negative.
Advantages of global business environment on the functions and operations of retail business.
Tallman, Luo and Buckley, (2018) stressed that, globalisation had brought many benefits
to the retail business in its operation's and function. As by taking the business to globe, retail
business has elaborated its customer base in the market. Once the product and services achieve
the success, company can raise the revenue. Operating in global business environment provides
ultimate opportunities to expand the business more at global level. Company can acquire low
cost of labours from any parts of the world. In addition to this, after the emergence of the concept
of Foreign Direct Investment (FDI), the government of countries has liberalised the
establishment procedures and trade policies in order to attract new investors to invest the nation.
Thus, this is also one of the benefits that organisation acquired after globalisation.
As my views, globalisation has benefited the organisation as it has open up all the
boundaries for organisation operations and functions which has ultimately raise the profitability
and sales of companies.
Burns, (2016) said that, global business environment also lead to increase the use of
outsourcing and offshoring of production. I phone is the classic example and its complex supply.
The product was conceived and designed in Silicon Valley in USA and the software by
engineering working India. Thus, after globalisation it has becomes very convenient to purchase
the products or raw material, or any other things from any part of the world. Further, the
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technological advancement is another benefits that organisation are getting by operating in the
global business world. The production capacity of the retail business increases with the
emergence of innovative machineries, tools and techniques. Globalisation has raised the
spending on capital investment, innovation and infrastructure across the world.
Risk faced by organisation in retail industry operating in global business environment.
Sadgrove, (2016) argued that, over the advantage's organisation has also faced many risks
operating in the global business environment. The very first risk that is faced by the organisation
in global business environment is that changes in trade and other policies. These changes directly
affect the operations of the company by which the revenue and profitability is largely influenced.
In addition to this, ethical business practices are another risk factors faced by the globalisation
like labour, product safety, corruption, regularity compliance and environmental stewardship etc.
For example, the case of Nike brand image was tremendously damaged by reports which it is
utilised low wage and sweatshops workers in emerging nations. So, it is very important for
company to practice ethically in order to protect the brand image and sustainable working
condition.
As per the views of opinion, cut-throat competition among the organisations is one of the
biggest challenge that is faced by organisations which has ultimately raise the cost of operations.
RESEARCH METHODOLOGIES
Research Methods
When the research study begins, it is very important to select the methods for conducting
the research. There are some tools and techniques which is used by the enumerator to collect the
data, analysis and interpret the information. Qualitative and Quantitative are two tools that is
used on which the entire study is based on. The information which is non-numeric like words,
feeling, experience etc. are called as Qualitative information (Esgin and et.al., 2018). While,
information or data which is based on the numerical figures is called as quantitative information.
In this present research, enumerator has applied qualitative methods to collect the information or
data. Therefore, researcher has successfully identified the risk and benefits of global business
environment on the functions and operations aspect of business in retail sector.
Research Approach
When enumerator select the techniques or methods for conducting the research,
enumerator have to think about the research approaches used to gather, analyse and interpret the
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information. Research approaches are the systematic plan and procedure used in the research
study for collection, analysis and interpretation of data. Inductive and Deductive approaches
mainly used in studying the research. In this present research, enumerator has applied inductive
approach as the outcomes of this approach is effective when the research study is based on
qualitative methods. So researcher has decided to use inductive research approach.
Sampling
After the selection of research methods and approaches, it is very important for
enumerator to select the sample size. The sample size should be reflective to the research study.
Sampling is the small part of the population. Probabilistic and Non-Probabilistic are two
techniques which is used in the research. In this present study, enumerator has applied
Probabilistic sampling in which random sampling techniques is used. 25 operations manager of
Marks and Spencer has been chosen by the enumerator.
Data Collection
Once the sample size is selected, enumerator have to start looking for the methods which
is used to collect the data. This is most important phase of the research study because the entire
result of this research is based on the methods of data collection. Primary and Secondary are two
techniques which is used to gather the data. In this present research, enumerator has used
primary techniques to collect the data (Rosenthal, 2016). For primary techniques, research has
selected survey and prepare questionnaire.
Data Analysis
Once the gathering of data is completed, another task begins is to analysis the data so that
it brings meaning to the research. Data without its analysis is senseless. It is process to clean,
mould and Fortran the raw data. Qualitative and Quantitative are two methods used to analysis
the data. In this present research, enumerator has used qualitative methods in which thematic
analysis has been done (Kovach, 2015).
FINDINGS AND RESULTS
QUESTIONNAIRE
Name of organisation: Marks and Spencer
Age:
Gender:
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1. Did you think, global business environment provide opportunities to business for growth and
development.
 Yes
 No
 May be
2. Do you think, the operations of M&S is influenced by changing in global factors=?
 Highly Agree
 Agree
 Highly Disagree
 Disagree
 Neutral
3. According to you what is the impact of globalisation on the operations and functions of retail
business in UK?
 Positive
 Negative
 Neutral
4. What are the benefits your organisation has acquired after globalisation?
 Increasing Trade across the boarder
 Increase in revenue
 Increase in customer base
 All the above
5. What are the risk your organisation faced operating in global business environment?
 Dynamic policies and laws
 Rapid change in technologies
 Complex organisation structure
 All the above
6. Recommendations if any.......
Theme 1: Global business environment provide opportunities to business for growth and
development.
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Particulars Operation's Manager Percentage (%)
Yes 12 48
No 8
May Be 5
Interpretation: From the above questionnaire conducted from 25 operations manager of
M&S and it is identified that global business environment provides great opportunities to the
company for growth and development as said by 12 respondents. As it has been supported by
the views of author that, globalisation has open up all the boundaries for organisation operations
and functions which has ultimately raise the profitability and sales of companies. They said that
global business environment provides opportunities to expand the business more. Further, 5
7
Yes No May Be
0
2
4
6
8
10
12
Operation's Manager

operations manager are not supporting as they said that rapid changing in external factors is very
challenging for company to cope up. Rest of 3 were confused as they do not have appropriate
answer.
Theme 2: Operations of M&S is influenced by changing in global factor.
Particulars Operation's Manager
Highly Agree 9 45
Agree 6 30
Highly Disagree 5 25
Disagree 4 20
Neutral 3
8
Highly Agree
Agree
Highly Disagree
Disagree
Neutral
0 1 2 3 4 5 6 7 8 9
Operation's Manager

Interpretation: From the above questionnaire conducted from 25 operations manager of
M&S and it is identified that operation's of M&S is influenced by rapid changing in global
factors as 9 respondents are highly agreed. They said that changes in organisation structure,
policies influenced the operations of M&S. 6 respondents are also supporting with the same
reason. The views from literature has supported that, technological advancement is another
benefits that organisation are getting by operating in the global business world. On the other
hand, 5 participants are against of this, as they said that operations of M&S did not influence
changing global factors very largely, this is because they are aware of these factors. Rest of 3 do
not have any answer.
Theme 3: Positive impact of globalisation on the operations and functions of retail business in
UK.
Particulars Operation's Manager
Positive 17
Negative 5
Neutral 3
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Interpretation: From the above questionnaire conducted from 25 operations manager of
M&S and it is identified globalisation has lead to positive impact on the operations and functions
of retail business in United Kingdom as supported by 17 participants. They said that after
globalisation, the customer base of retail businesses tends to raise, wide range of goods and
services are available in the market, revenue is increase and many other advantages leads to
positive impact on the organisation. As the views in literature has supported that, Globalisation
has raised the spending on capital investment, innovation and infrastructure across the world. On
the other hand, 5 respondents said that globalisation has lead to negative impact on the
operations and functions of the company. They said that globalisation has lead to raise
competition among the companies which sometimes become challenging. Rest three do not have
specific answer as they are confused.
Theme 4: Customer base is increases after globalisation.
Particulars Operation's Manager
Increasing Trade across the boarder 4
Increase in revenue 5
Increase in customer base 10
All the above 6
10
Positive
Negative
Neutral