PGBM 1: Analysis of Global Corporate Strategies for Retail Companies

This report provides a comprehensive analysis of global corporate strategies, with a specific focus on the retail industry and the companies TESCO and M&S. The report begins with an executive summary and introduction, followed by an examination of strategic portfolio management, applying PESTEL analysis to Marks and Spencer. It then delves into retail internationalization, exploring strategic alliances and mergers and acquisitions. The report further investigates corporate governance and corporate social responsibility, including their impact on business performance and decision-making. The report also covers the impact of global retail industry competition. The report concludes with a summary of findings and includes a references section.

Global Corporate
Strategies
PGBM
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Table of Contents
EXECUTIVE SUMMARY......................................................................................................1
INTRODUCTION....................................................................................................................1
Question 1............................................................................................................................2
Question 2. Retail internationalisation: Strategic alliances, M&As....................................4
Question 3. Corporate governance:.....................................................................................6
Question 4. Impact of the global retail industry competition..............................................9
CONCLUSION......................................................................................................................12
REFERENCES.......................................................................................................................13
Appendices.............................................................................................................................16
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EXECUTIVE SUMMARY
This project is based on global corporate strategy that is very important aspect
because it helps in achieving the desired result or competitive advantages over the
competitors. In this project ,it will be explained that portfolio versus integrated perspectives
between TESCO AND M&S ,meaning of strategic alliances and merger and
acquisition ,corporate governance ,corporate social responsibility ,leadership and
competitiveness and what my learning during this project report. While doing merger and
acquisition, firstly, TESCO should made strategy so that it can merged effectively and can
achieve it's desired result and outcome and can run in the market efficiently. This report will
explain the importance of CSR activities that provides many benefits to the company like
increase market share, brand image ,good reputation etc. while corporate governance makes
the rules and regulation for the company.
INTRODUCTION
Global corporate strategies mean to adopt new methods and techniques to develop their
business in the effective manner. In the global level many companies are apply effective
method to earn profit and also increase economic scale of the country (Dias and et.al.,
2016). Company and M&S both are the retail company those are provide all kind of
products and services to customers and already build effective and brand image in the
market to achieve the objectives and goals of the business
All kind of company have some responsibilities to develop their trade and to earn
surplus as well as do some social benefits to the society just like provide security and safety,
to their welfare activities and programmes those help to develop society and their standard
of living. In the other hand, global corporate strategies are help to develop company with
new and innovative ideas and view.
For increasing production and building a brand image, there are using some
technologies and strategies to achieve the targets and goals of the business. In the market
there are many competitors who are beating each other and build an effective image in the
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market and also in the client's mind in which customers wants something new like
innovative products to satisfied needs and wants.
Question 1.
Company is a multinational company which deals in grocery stores and provides
best services for capturing the large market share in the whole world. For this ,it have made
many strategies that helps in the achievement of it's objective and target. If company want to
achieve it then it should make various types of aspect that will help in achieving the desired
result.(Husted, Montiel and Christmann, 2016). For this ,it should required to take strategic
steps that will in the implementation of it's activities.
A strategic portfolio management is a systematic process which helps in deciding
organizational resources to meet their strategic objectives in an effective manner (Jamali,
2016.). In the context of Marks and Spenser which is one of the leading company required
that to use various tools and techniques in order to attain their desired goals and objectives.
According to the annual report of the organization it focused on the various aspects
which can help to improve their business performance. For example, retail industry is one of
the competitive sector in the United Kingdom. So that the profitability and market share are
going down which needs to be focused in an effective manner. The higher authorities
required that to expand their business which can help to maintain their profitability in an
effective manner (Kasemsap, 2016).
PESTEL analyse of the Mark and spencer is given below:
Political factor
This is one of the major factor which is related with the
government stability and business policies. in the context of UK,
the authority is stable which can help to provide long term
consistency in the business policies. It can help to maintain
profitability the organization (Kumar, 2016).
Economical factor This is also most important factors which should be considered by
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the company while making any strategy. It includes GDP
rate ,employment condition ,interest rate, inflation rate etc. UK is
one of the leading country in providing the employment..
Social factor
This is related with the various social factors such as culture,
belief, attitude customer preferences, taste, per capita income. In
this context, the per capital income of the UK is $40000 which is
higher than other countries. It can help to increase the per capita
income which can provide new opportunities for Company
(Mehrotra, 2016).
Technological factor
Today time, changing are going on. If Company want to achieve
it's desired objectives then it should adopt the changes that are
done in the technology. It is most important factors for satisfying
the customers need and wants .It can use social sites like Facebook
,twitter etc. for promoting their goods and services. (Quairel-
Lanoizelee and Quairel-Lanoizelee, 2016).
Environmental factor
While implementing any strategy ,Company should analyse the
environment of the society and should evaluate that what will be
the impact of this strategy on the environment and should use that
equipment that can protect the environment.(Maas, Schaltegger
and Crutzen, 2016).
Legal factor
This is another factors which is related with the legal aspects of the
business. there are various rules and regulations which is related
with the business and the operations. This is the liability of the
company to follow these guidelines in an effective manner ( Ratten
and Ferreira, 2016).
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Question 2. Retail internationalisation: Strategic alliances, M&As
Strategic alliances are referring to when two or more parties are merge with each
other to earn higher profits and develop their business to that's called strategies alliances. In
which two or more parties working together to earn surplus and there are all partners are
mutually working with each other’s and divide profits and losses with each other. In which
mutually segregate fund, capital, resources etc. by the partners (Surijah, 2016). Merger and
acquisition(M&A) in which two or more companies financially to purchase their business
and start a new trade with new name and with new objectives and goals (Hodulak, 2016).
Merger means when two or more companies are merged and set a new business with
different name and common objective is known as merger. In this profit and loss are divided
according to the pre specified ratio. In this ,there should be a legal agreement that ensures
that government has approved it.(Bravo, Matute and Pina, 2016).
On the other hand, acquisition is one company take over the other business and
continuously working in that field. M&A is the most powerful aspects in the financially
corporate world in which two or more association are operating together for their mutual
benefits and start a new activity (Marconatto and et.al., 2016.) .
These aspect have main objective to earn maximum surplus ,wealth maximization,
increase market share ,brand image etc. It diversify the risk and loss that may occur while
doing any activity. (Caputo and et.al., 2016).
All these are help to increase market share of the company and change the
techniques and strategies to produce effective goods and other offers. on the other hand, all
these are help to develop business in a systematic manner and helps to build a market
image to use new and innovative techniques and strategies to produce goods and services to
their customers (Hadjikhani, Lee and Park, 2016).
Company is the retail chain that want to start business with M&S. This company
provide all type of products and services to customers and already build an effective image
in the market and also in the client's mind (Onkila, 2016)
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These both are retail companies in the UK market. These want to develop their
business and increase market share of the company so according to this situation merger and
acquisition is the best solution for both company In which both starts a new association
with different name. In this aspect of, finance develops by newtrade to build a new
innovative image in the market and increase more territory and also ingress economic share
of the country (Dias and et.al., 2016.)
Mergers and acquisition having some advantages and disadvantages to the develop a
new business with new and innovative ideas. There are some benefits that helps in
developing trade like: when two or more companies are merge together and their power
and control are mutually merge and helps to develop market share of the company. It
diversify the risk of the business. Its help to increase economic scale of the occupation (Hill
and et.al., 2017).
` In addition, it also develops technology departments to produce new and innovative
products to the customers. Merger and acquisition of main benefit is tax benefits in this
aspect of finance tax saving method to merger companies and start a new company with
new name. In the other hand, there are some disadvantages those are harmful for both
parties like: mergers and acquisition method in loss experience with both parties and have to
share all knowledge and techniques with each other so there is loss experience of the parties
(Husted, Montiel and Christmann, 2016)
In this method company will facing many difficulties and issues to start a new company also
there are increase cost to develop business and their productions and there are using some
new and innovative techniques in which have to invest money to develop business and
achieve objectives and goals (Jamali, 2016).
In the other hand, merger and acquisition is the financial aspects in which Company and
M&S to develop their business so that this method will apply to develop business.
For example- TESCO and MARK AND SPENCER are merged with each other and
are running in the market successfully.
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Question 3. Corporate governance:
The BHS company determine the corporate governance for the decision making
process and also defines some rules and regulation in the organisation. This governance
determines the policy of the decision making process (Kasemsap, 2016).
Corporate governance is helpful in identifying the company profile and it's
performance at the work place and set rules and regulation related to environment of the
company as well as of the society that have to follow by every member of the society.
(Kumar, 2016).
These governance helps in improving the work performance of the company and
provide best rules and regulation that assist in serving the customers. It also aids in
determining the budget, profile, shareholders ,managers ,etc. (Ma and et.al., 2016).
This governance evaluating many factor relating to the social, economic and
organisational. Decision making process developing the company goals and objectives and
create the best and innovative plan related to the BHS company. This company applying
strategy of the government rules. This rules take the best process of the product
manufacturing. The government evaluating the many research of the customer satisfaction
and dissatisfaction and also evaluating the company data (Maas, Schaltegger and Crutzen,
2016).
Corporate social responsibility: This responsibility identifies the self-regulation
system in the organisation. CSR determine the moral and standards of the social factor. The
CSR making the slandered of the national and international objectives. The company
provide facilities related to the product and new product development (Mehrotra, 2016).
This is also defining the small scale industry and provide the long term relationship
between the particular company and governance. This responsibility determines the
company employees size and their personality. This is also making best decision and create
the management process related to the product. The BHS company focuses on their human
resources so that overall performance of an enterprise can be improved (Quairel-Lanoizelee
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and Quairel-Lanoizelee, 2016).This process setting the new employees entry in the
company.
CSR Target of Company:
Illustration 1: CSR of Company target and Actual
As per the above given data of Company CSR activities is given it shows that the
firm having enough resources in order to attain their CSR target in an effective manner. The
cited business organisation is set the target which is related with reducing of CO2
emissions. The set their target was 6 percent but actual target is more which can create an
ideal image of the company in the public (Onkila, 2016).
The company also provides the level of the organisation person. The small level and
the median level. The small level organisation applies the CSR process in the organisation
and medium level organisation taking the best plan and innovative ideas. This responsibility
has own authority and making the data and development process. This is providing the
supply chain management. The supply chain determines the relationship between the
company employees and target customers (Martínez-Ferrero, Rodríguez-Ariza and García-
Sánchez, 2016).
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Leadership: The leadership creates company structure and evaluating the vision and
mission. A leader can lead an enterprise success. This term refers to the best plan and
innovative ideas. The BHS company's leadership more focused on their human resources
management. This process also defines the selection and recruitment process of the new
employees (Hadjikhani, Lee and Park, 2016).
This process provides the human satisfaction and their product productivity. The
leadership also very important in the motivation, co-ordination. The leader of the company
focuses on the organisation objectives and goals. It also creates the best structure of the
organisation (Mehrotra, 2016). Leadership making the best decision in the different
situation and provide the alternative resources in the organisation.
The leadership also determine their profile and taking the marketing mix strategy.
This strategy also determines the promotion techniques including the sales promotion,
personal selling, advertisement, sponsorship, online and direct marketing and also
evaluating the packing process in the market related to the product. The leadership as a
friend and making the best sources and alternatives plan in the organisation (Maas,
Schaltegger and Crutzen, 2016).
The leader of BHS company helps in improving the skills and knowledge of the
employees or any other members of the company related to its products and services.
Competitiveness: The company use the many competitiveness related to their
product and setting the best product in organisation. This is determining the company
position in the market. BHS uses many sources in order to develop their product and
services. Company reduce the cost of the product and increasing the profitability ratio of the
product (Ma and et.al., 2016).
This is determining the many sector and sub sector this sector provide the goods and
services of the supply and taking the alternative resources in the organisation. BHS increase
the brand of the product. This brand identify the best product and services in the
organisation. Company also provide the pre purchasing process and post purchases process
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(Jamali, 2016). The comparative process determines the product competitor availability in
the market and making the best branded product. This is also creating the organisation goals
and objectives .
Business performance of Company in the UK market:
Illustration 2: Financial data of Company last 5 years
As per above given data,BHS have good amount of financial resources that is very
important for remaining competitive in the market and achieving the competitive
advantages over the rivals. The turnover of the cited business unit in current year is 51433.0
million pound. On the other hand, the last year is 62281 million pound. The net profit of the
company is 129 million pound which is good as compare tom last year. This data is
indicating that performance or market share of the company is going down. (Husted,
Montiel and Christmann, 2016).
Question 4. Impact of the global retail industry competition
At present time market take place on global level. Many manufacturing and the other
companies deal on the global level. Market refers a slogan on the broad level which is
“Each for everyone and every one for each” (Dias and et.al., 2016).
 Increase Competition: - All the company have to face more and more competition
on the broad and global level. Market is same for all on the global level. Customer
have many option on global level (Hill and et.al., 2017). Customer can easily select
the right product.
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 Perfect competition market: - If company is dealing at international level then it is
working in the perfect market competition. It means that there are more no. of
competitors in the market. In this market ,for getting success ,BHS should make
strategy that will help in achieving this target .(Kasemsap, 2016).
 Retail position in the UK market:
Illustration 3: Market share of Retail in UK
As per the above given data the market share of Company is quite good as compare
to other companies. The having approx. 28 percent market share which is highest in the
retail sector. The cited business unit is price leader in the United Kingdom which can
provide competitive advantage to them (Kumar, 2016).
Key benefits and limitations of the portfolio and integrated organisation
perspectives
A portfolio is not the collection of projects. It refers that terms which help to
organisation to transform the business on global level. Company make strategy to achieve
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the organisation goal and objective and use all the thing in a portfolio (Ma and et.al.,
2016).
 Portfolio help to manage the work of organisation.
 It is easy to conduct and upper level management can manage it.
 Many times portfolio does not provide the information related to organisation.
 Many times portfolio does not provide the fully information related to the
organisation (Hadjikhani, Lee and Park, 2016).
 Portfolio fails to save the cost of portfolio. Its increase the cost of organisation.
Merits and demerits of choosing strategic alliances
There are many merits and demerits choosing the strategic alliances: -
 It is helpful to provide the supplementary services.
 It is helpful to provide the new market opportunity for new marketers.
 It is helpful to increase the brand name, brand loyalty and brand awareness in
market.
 It provides the useful information and help to select the right partner for firm or
organisation (Caputo and et.al., 2016).
 It is unable to save time and consume more time to manage the work.
 It is unable to provide the reliable result for organisation.
 It is take more cost comparison of other.
Role of corporate leadership profitability through responsible policies and
practices
 A corporate leader plays a motivator role in an organisation for motivating the team.
 Corporate leader helps to solve the problem of organisation.
 Corporate leader works as a policy enforcer.
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 Corporate leader mange the team work and help to increase the profit in
organisation.
 Corporate leader should be a positive thinker who can manage any situation with the
great decision power (Martínez-Ferrero, Rodríguez-Ariza and García-Sánchez,
2016).
CONCLUSION
Above information and given report tells about the leadership style in an
organisation and how the leader manges the work in organisation.
At present time many company deals at global level. Global marketing is increasing
very fast and all the competitors want to sale its product in more and more quantity.
Company hires the leader to manage the team work and make the strong strategy to
do work and achieve the organisation goal and objective. A corporate leader is the bone of
organisation which provide the many information and help organisation top get the mission
of organisation. There is too much competition on global market.
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Appendices
Table 1
Factors Description
Political factor This is one of the major factor which is related with the government stability
and business policies.
Economic factor This is another significant factor which is related with the economic aspects
of the country.
Social factor This is related with the various social factors such as culture, belief, attitude
customer preferences, taste, per capita income.
Technological
factor
Innovation and technology played a significant role in the success for each
and every business organization.
Environmental
factor
Today, customer is more aware towards the environmental and climate
issues.
Legal factor This is another factors which is related with the legal aspects of the business.
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