Analysis of Global Business Environment and M&S Retail Strategies

This report provides an overview of the global business environment and its influence on the retail industry, with a specific focus on Marks and Spencer (M&S). It begins by defining the global business environment and the retail industry, emphasizing its growth and the role of e-commerce. The report then examines the key drivers of change within the retail sector, including technological advancements and government regulations, and analyzes their positive and negative impacts on companies like M&S. The study utilizes the open system model to assess how M&S can adapt to environmental changes, considering factors like inputs, outputs, organizational behavior, and competitive advantages. The report concludes by highlighting the importance of adapting to global market dynamics for sustained success, emphasizing the significance of technology, regulations, and consumer perceptions. The report references several academic sources to support its analysis.

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
Overview of retail industry ........................................................................................................1
Drivers of change in Marks and Spencer ...................................................................................1
Impact of changes in the global business environment on Marks and Spencer .........................2
CONCLUSION ...............................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Global business environment is defined as an environment in which different types of
uncontrollable local and international factors are having influence upon the manner in which
company operates their business functioning (Kotabe and Helsen, 2020). It is essential for an
organisation to develop effective strategies and have adaptable approach in order to effectively
deal with influence of these factors. Present report has been conducted on, Marks and Spencer
which is performing its business activities in retail industry. Present report include formative
discussions upon overview of retail industry, drivers of change and impact of change upon entity.
Overview of retail industry
The retail industry is one of the fastest and leading industrial sector in which number of
organisations are offering wide range of services and facilities to customers. This industry is
measuring consequent continuous growth in term as sales and profitability as shown below.
It has been evaluated that this industry involves market players those who are engaged in selling
of finished products to customers through milt-channels (Dovis and Zaki, 2020).
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This has been determined that this industry is affected by e-commerce as large number or
organisations are undertaking of e-commerce facility to serve large base of customers in local,
national and international market. There are wide range of internal and external factors that are
affecting growth and productivity of this industry which is required to be consider by
organisations operating in this sector form long term sustainability and higher sales.
Drivers of change in retail industry
It has been evaluated that there are many factors that are responsible for change within
retail industrial segment. All these factors that are prevailing in global business environment is
required to be effectively consider by management of company in order to frame measures
against them for more competitiveness and growth (Dovis and Zaki, 2020). Mention below there
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are some certain factors that are forcing negative as well as positive change upon retailing
industry:
Technology:
It has been evaluated that technology significantly transformed the manner in which
organisations are performing their operations in retail industry. According to the evaluation, it
has been determined that large number of consumer base is an online customer. In this they have
an option to in-depth evaluate product or services and compare them with other competitors.
Along with this, they also have option to review product or service that send direct message to
public. In this it is essential for entities within retailing sector such as M&S to satisfy customers
in effective manner. As any bad experience to consumer will negatively impact upon reputation
of entities in this sector. (Lee, Lim and Sung, 2020). However by providing high quality services
to consumers will facilitate Marks and Spencer to get five-star consumer review that will
automatically increase search engine ranking of company. Along with this tech innovation will
also positively serve company in terms of high profitability, market share holding and
competitiveness compared to other rivals.
Government Regulations:
There are many rules and regulations being enforced by government which differs from
one geographical location to other. If entities within retail industry segment neglect any essential
regulations of government then this factor can negatively affect company in terms of facing
many legal obligations and heavy penalty that can affect global brand image of company in
adverse manner. However, by adhering all the regulations and rules of government for retail
industry organisations for example M&S can gain positive advantage in terms of goodwill in
market, trust of customers, employee retention and higher profitability.
Impact of changes in the global business environment on Retail industry
This has been evaluated that change is having significant impact upon retail industry
business operations which is further being elaborated with the assistance of The open system
model:
The open system approach will allow company to evaluate entire divisions, units and sets
of organisation. It mainly include different system components like inputs, outputs,
organisational behaviour and processes, technology, environment, structure, culture and system
dynamics (Halbert and Ingulli, 2020). By diagnosing company effectively with the help of this
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model organisations with retail industry can understand its ability to adopt changes in
environment. Company can undertake use of their services, ideas, products as inputs to
effectively maintain growth.
Strength Weaknesses
Staff loyalty, connections and staff share
values is the major strength is majorly seen in
entities operating in retail industrial sector for
example Marks and Spencer.
Retail industrial is affected with the weakness
related to, employees being replaced and
employees aged.
Threat Opportunity
Retail industry is facing threat in terms of
increase in rate of turnover and difficulty in
recruitment.
Organisations within retail industry is having
opportunity to restructure their marketing
techniques to encourage large basis of
customers from all around the world.
In order to effectively overcome this issue companies within retail sector is required to
resolve employee training problems, proper definitions of job responsibilities, use of updated
equipment and adequate coordination and control of work. This will allow them to assure higher
growth and profitability.
CONCLUSION
As per the above mentioned report it has been concluded that, there are manly factors
prevailing in global business environment and are having significant impact over operations of
entity. Factor like technology, government regulations, consumer perceptions are having
significant impact upon entity profitability. In order to overcome negative impact of change
organisation by undertaking use of the open systems model can assure effective growth and
success in global market.
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REFERENCES
Books and Journals
Kotabe, M.M. and Helsen, K., 2020. Global marketing management. John Wiley & Sons.
Halbert, T. and Ingulli, E., 2020. Law and ethics in the business environment. Cengage Learning.
Mushtaq, S.A. and Khan, F.A., 2020. The Curve Of Cross Border Cartel Enforcement
(Challenges and Remedies in Global Business Environment). Journal of Accounting
and Finance in Emerging Economies, 6(1), pp.73-86.
Lee, S., Choi, I., Kim, H., Lim, J. and Sung, S., 2020. Comprehensive Simulation and Redesign
System for Business Process and Organizational Structure. IEEE Access, 8, pp.106322-
106333.
Dzwigol, H., Dzwigol-Barosz, M. and Kwilinski, A., 2020. Formation of Global Competitive
Enterprise Environment Based on Industry 4.0 Concept. International Journal of
Entrepreneurship, 24(1), pp.1-5.
Dovis, M. and Zaki, C., 2020. Global Value Chains and Local Business Environments: Which
Factors Really Matter in Developing Countries?. Review of Industrial Organization,
pp.1-33.
Dovis, M. and Zaki, C., 2020. Global Value Chains and Local Business Environments: Which
Factors Really Matter in Developing Countries?. Review of Industrial Organization,
pp.1-33.
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