Analysis of Global Issues Impacting H&M and Marks & Spencer

This report provides a comprehensive analysis of global business issues affecting the operations of H&M and Marks & Spencer. It begins with an introduction to global business and globalization, emphasizing their significance in the retail industry. The report then identifies and critically analyzes conte...Read More

Global Business

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................4
Identification and critical analysis of contemporary global issues which affect the policy and
operations of two different globalized organisation...............................................................4
Identification of global issue faced by H&M and Marks and Spencer through PESTEL
framework...............................................................................................................................6
Critical analysis of the issues influencing companies’ policies...........................................11
Critical evaluation of leadership and management knowledge along with the attributes and
skills for coping up with changed business environment.....................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Global business refers to a business organisation which operates and provides products or
services to customers in different countries. It includes the concept of selling goods and facilities
worldwide to gain better profitability. However global business is significant because it facilitate
an opportunity for an enterprise to enhance their market share, decrease cost of manufacturing
and become more competitive among other competitors in market. The global business can be
carried by several ways such as importing & exporting, licensing, franchising, joint venture &
strategic partnership and foreign direct investment (Adekola and Sergi, 2016). Globalisation can
be described as an integration of economy at global standard that is responsible for leading to
enhanced connectedness of national economies. It is known as a significant aspects including
various benefits like financial markets consisting money, credit markets, capital, insurance,
commodity markets and so on. It is observed that globalisation caused due to several factors such
as improved transport, enhance technology, growth of multinational companies, lower tariffs,
capital mobility, and labour mobility. An organisation can choose any one of option from these
alternatives in order to expand their business at global level.

In context of this report, it is based on retail industry where procedures to sell consumer
products and facilities to clients is carried out with the help of multiple channels of distribution
for earning desired profits. It includes efforts of various retailers who put efforts to satisfy
demand which has been determined through a supply chain (Ferraro and Briody, 2017).
Basically, it consist two companies such as Marks & Spencer and H&M in regards to expand
business at global level. Marks & Spencer is known as a major British multinational retailer
which has a specialisation to sell home products, food and clothing with high quality that is
headquartered in Westminster, London. It was founded by Michael Marks and Thomas Spencer
in the year around 1884, almost 136 years ago. Herein, H&M can be consider as a Swedish
multinational clothing retain organisation which is usually known for their fast fashion clothing,
teenager, children, men and women. It was founded by Erling Persson in the year around 1947,
almost 73 years ago. Meanwhile, the modern retailers establish different variety of strategies
consisting the marker to be served, type of store, customer service, supporting facilities, the
optimal product assortment etc. This assignment will focus on analysis of global business and
globalisation impacts on the way of companies develop, organise and operate. It will also include
the entrepreneurial and leadership qualities of the global leader.
TASK
Identification and critical analysis of contemporary global issues which affect the policy and
operations of two different globalized organisation
The global issues are those issues which have harmful effect on the community or
organisation. These global issues includes the environment, lack of education, government rules
or regulation and quality of production. There are some external or macro-environmental factors
are occur which help the organisation in identification of these global issues. However, these
external factors are can be analysis through PESTLE analysis. This examine the political,
economical, social, technological, legal and environment factors of the general environment. As
it helps in influence the business strategies and production so that the turnover can increase with
more profitable (Hakanen, Helander and Valkokari, 2017). There are some retail industry which
operates their work at global level by selling the goods and services to their customers. These
retail industries includes various services such as clothing, accessories and other finished
products in conversation of currency. The recent aim of these industry is to fulfil the requirement

of the customer needs and by identify the global issues on the company. The implementation of
new essential and attractive clothing according to the modern trend can also bring the profit in
the company. In context of this, the Mark & Spencer and H&M both have different brand image
with their marketing quality.
Leadership qualities of a global leader
Global leader can be described as a person who leads people of an organisation at global
level. They have to deal with staff members working in different companies by conveying
desired business strategies and practices to achieve set goals respectively. However, it is
necessary for a global leader to remain capable for establishing trust based relationships and
improve self awareness so that they can adopt new innovative technique for carry out operational
tasks regularly (Hill and et. al., 2017). Meanwhile, it consist the self control, intellectual curiosity
and emotional strength to deal with people belongs to different cultural backgrounds for making
the work done in appropriate manner. In context of Marks & Spencer and H&M, they are
required well experienced and qualified leaders having desired qualities in which some of them
are given here.
Overseas experience: A global leader requires sufficient experiences as many of global
executives are capable in understanding the way of running business in a flat world because they
they have lived overseas for decades at a time. These people are experiencing about the business
from a long time so that they know how to establish business globally. However, a successful
global leader is required to transcending their own cultural views along with learning about the
way of doing business in different context which is essential to gain success.
Deep self-awareness: This quality is very important for a global leader because it is very
important for adapting to and tolerate the deep seated beliefs of other people. However, it is
essential to understand thoughts and values of others in order to deal with them properly
(Kasemsap, 2016). Meanwhile, the leaders of organisation should remain aware about the
assumption of “I am right, you are wrong”. Additionally, this quality is important to grab growth
chances otherwise the business opportunities will evaporate.
Sensitivity to cultural diversity: The leader should remain sensitive and respect cultural
beliefs of every person working in an organisation. It is necessary for them to establish a separate
culture of work place so that cultural conflicts can be avoided for completing operations

cooperatively. Moreover, this feature is essential for a global leader to make work done from
staff properly who belongs to different cultures.
Humility: The leader is required to give importance to every employee whether they
belongs to high or low management area of organisation. It is necessary for leader to motivate
individual performing at different level to gain better productivity from them. Additionally, it
consist to improve morale of staff positively which impact on their performance which facilitate
to attain desired business objectives.
Other qualities: There are number of another qualities which should be acquired by a
global leader to deal with staff and fulfil their responsibilities successfully. It consist lifelong
curiosity, cautious honesty, global strategic thinking, patiently impatient, well-spoken, good
negotiator and presence (Sethi, 2016). However, the Marks & Spencer and H&M are required to
hire well experienced leaders while expanding globally to improve productivity as well as
profitability. Moreover, it is required for a global leader to become capable of self managing,
acting strategically, an effective communicator, remain responsible & accountable, setting clear
goals & persisting in achieving them, having a vision for the future, managing complexity,
fostering innovation & creativity, establishing team and promote team work, developing lasting
relationships and learning agility.
Identification of global issue faced by H&M and Marks and Spencer through PESTEL
framework
The PESTEL analysis has been defined as an important tool which is being used to
monitor and evaluate the macro environment variables that may have a positive or negative
impact on the smooth functioning of Marks and Spencer as well as H&M. Such kind of tool is
utilised when a company is emerging into a foreign market. This type of framework is used by
the marketers to evaluate the actual opportunities as well as threats of the business by the rival
companies or in any market place (Kasemsap, 2018). PESTEL model is often being collectively
used with another tools to get a proper understanding of components associated with internal and
external elements. Thorough analysis of macro environment is being discussed below.
Political factor – The factors which usually fall under the aspect of political factors are
set of rules and guidelines which are being set by the government. All the standards and
regulations related to identification of hazards, health and safety issues, assessment of potential
risk and guidelines which has to be maintained by every employee working in their respective

domain. Free trade which has been adopted by various countries is considered as a positive
aspect for Marks and Spencer. They majorly operates in U.K, but the other locations across the
world are also being covered, which helps in gaining profits for the enterprise.
Such practice allow the company to import as well as export their finished goods and
products in foreign countries at much more less cost while regulating a well maintained profit
margin. H&M chief production is being setup in Lebanon, Egypt and Turkey. The country like
Lebanon is unstable since independence politically which sometimes make the cost of textile
high (Kaynak and Lee, 2018). The Brexit has also been resulted into troubled scenario to work
with, the outcome of such things are negative which leads in reduction of trade policies among
the European supplier. Due to such outcomes, the price are much higher for end customers.
Economical factor – The high and low cost has been considered as a huge factor in the
retailing sector, during the previous decade ample budget retailers have emerged in United
Kingdom. The market which has more influence of budget stores has been observed to steal a
huge share of market and have been emerged as a new rivals for popular brands like H&M and
Marks and Spencer. The customers get more attracted towards the clothes and other accessories
which are being provided at lower cost than the ones which are rendered by premium brands.
Though, it has been analysed that due to recent improving state of economy in the world, the
amount which can be disposed in materialistic objects have been increased. People are tend to
spend more on products which are branded and expensive. The rules of tax has altered with time
which has strongly affected the stability of the business economically. The policies as well as
standards related to corporate and retailing sector range from one location to another location,
because of such policies the companies like H&M and Marks and Spencer has straighten and
organised their enterprise accordingly.
Social factors – The view of society and components related to sociocultural has been
affecting the name and productivity of the company. Since 1800s, Marks and Spencer is around,
such longevity though impacted in high reputation but it even resulted into loss of customers due
to outgrowth of new brands as the respective industry is considered with past. The loss of
trendiness due to emergence of new and classy ventures have been fascinating the customers
more (Greenwood, 2016). H&M may seek more help to the social media and can promote their
brand by hiring a famous brand ambassador. The influence of celebrities are huge in market and
youths, thus the attitude of consumer changes and they start choosing more clothes and other

products from the same brand which is being promoted by their favourite stars. A separate team
should be designed and hired according to their capabilities and skills which must keep a track
on analysing the trends and behaviour of the buyers and youth by targeting the social groups
which are being left unattended. The selected companies should focus more on capturing other
industries and must become dominating on further domains after prior research and analysis so
as to acquire large portion of the market share and enhance the name of brand more efficiently
and effectively.
Technological factor – The factors which greatly influence the productivity of the
company is technological aspects. The trend of self checkout is being increasing day by day.
Marks and Spencer have been also offering exclusive checkout experiences to their customers
for increasing the sales and brand value of the business. The era of mobile and laptops have been
totally revolutionised the market demands and desires. The trend of online shopping have been
booming in retailing area (Kasemsap, 2016). Such company has already invented powerful e
Commerce availability where they are providing all types of services including clothing, food
and other products.
They have adopted a different traditional way in delivering the goods directly to the
customers, though they are not supplying food products yet. Delivery of food items to the buyers
must be adopted by the company so as to strongly compete with the rivals. H&M keep up with
recent advancements by constantly modifying their associated actions. Adding reward points and
discounts to the account of loyal customer and daily buyers have strengthen the base of
consumer (Jones and et. al., 2017). Usage of artificial intelligence to observe the wants of
potential consumers and evaluation of feedbacks of buyers must be implemented more by both
the companies to render and satisfy the customer with high quality of products.
Marks and Spencer as well as H&M must pay attention to the above factors and proper
research has to be carried out so as to monitor and evaluate more opportunities and threats
existing in the market. Such practice make the base of company solid and strong.
Legal factors:- The legal factors includes the rules, regulation, laws and taxation which
is implemented by the government of the country. The laws are based on the health and safety of
the customers and also for the business improvement in case of any wastage of the products.
With the help of legal factors the retail industries can influence their business strategies
according to the benefits of the customers and as well as of the company (Boshyk, 2016). The

Mark & Spencer update new law and regulation every year in the company so that the issues of
any safety of products can be achieved. As the tax and laws changes the various things in
products such as the increment of product quality and packaging. One of the law which is
adapted by the company is packaging and labelling of the products. As it is most important part
of selling the products to the world wide. It prevents products from wastage and the labelled
which contains proper information of the customer or detailing content of product. This helps the
company to look good in front of customers which helps in their manufacture. The H&M follows
the legal factors of the other country in which they are operating their products. The company
follows the legal requirement by acting the financial accounting system to prevent the clarity of
business. The property rights also consider to the prevent the design which is manufactured by
the company so the design must legally secured.
Environmental factors:- This factor refers to the environment factors which can bring
the issues of climate change which reduce the production of the company. These factors includes
the materials that are used in the manufacturing the products (Doh, Luthans and Slocum, 2016).
It also includes the prevention of goods from which the products are obtained. In the
manufacturing process, the use of carbon emission from the production and deforestation can
lead to the cause of decrease in profit of the company. The Mark & Spencer follows the
sustainable goods from which the environment does not get harm. The also uses some good
source of fresh milk so that there food products does not get harm to the customers. They also
uses some environmental friendly products from which the customers can feel affable to the
products and purchase the products more and more. This industry follows the rules of fair trade
products which has a good impact in environment. Because some of the small trader receives
more benefits by selling fair trade products so this will can be a competition to the large industry.
From the textile industries, there are high amount of getting environment pollution occur from
which the disease can be occur (Derudder and Witlox, 2016). So in this case, the H&M follows
the recyclable products so the wastage of the products can not be occur and the pollution in the
environment can be prevented. These climatic condition influence the company to take some
steps in order to maintain the health and safety of the customers. This will help the organisation
to increase their profit and production.
Comparative marketing mix
Basis Marks & Spencer H&M

Product This company provides clothing for men
women and children like blazers,
cardigans, jeans, cashmere, linen, shirt,
skirt, handbags, sunglasses, jewellery,
boots, loafers, pumps, heels and many
more. They use element of product by
making modifications and introducing new
innovative trends to attract customers.
The product of H&M consist similar
offers like shoes, bags, accessories,
beauty, ready to wear etc. It is utilised
by several strategies including cheap
Monday, COS, Monki, weekday to
increase sales.
Price The pricing strategy of Marks & Spencer
is varied among medium to high category
according to the premium quality of
product. They utilise the price of products
to grab overall consumers in market by
delivering services suitable for common
people.
The high quality of products are
provided at premium price and
reasonable according to quality range
of products which is lower than it
competitors like ZARA which helps to
gain competitive advantage.
Place The distribution places of given
organisation consist around more than 50
nations including 1000 stores. It includes
Turkey, Spain, France, Ireland, Hungary,
Finland and so on. They use place
element by providing products to
customers of moire countries through
online mode.
It has around 4135 stores in various
countries at global level which were
established through franchising
partners. It provides online products
with instant delivery time and
minimum shipping costs to grab more
clients in global market.
Promotion They have effective promotional strategies
such as advertisements campaigns with
digital marketing and in store strategy for
increasing sales of brand. It is utilised in
terms of print media, TV ads, Mobile ads
and social media campaigns which are
suitable in different places to increase
The promotional strategies used in
H&M are TV advertisements,
YouTube, digital marketing, promo
codes & discounts and sponsorships
which enhancing business growth
globally.

profitability.
Process The stores of company are well organised
like pantaloons, wills lifestyle etc. in
which separate section of clothing, gifts,
jewellery and handbags. The process is
used by providing categorised display of
products where they are easily visible for
satisfying consumers.
The have procedures to give high
important to customer relationship
management and provide training ti
employee for retaining high profitable
clients, it is used by company to gain
long term profitability to achieving
brand loyal customers.
People The employee strength of Marks &
Spencer is approximately 83000 which are
retained by beneficial policies that helps to
enhance growth of business.
They provide modern work culture to
staff members and provide effective
training & learning sessions for
improving their capabilities. It is
utilised to boost up productivity for
attaining success in business.
Physical
Evidence
Marks and Spencer has more than 1000
stores in around 50 countries where
customers like to buy products of this
brand.
H&M has around 4135 stores in
different countries which are easily
visible as people like to use products
of this brand to fulfil their needs.
Critical analysis of the issues influencing companies’ policies
There are some identified issues of Mark & Spencer and H&M which can be resolve by
changing in the production of goods. With this, it can help the companies to change in their
policies and procedures so that they can reduce their issues and increase their profits. It also
includes help in the develop of strong brand image of the company. The issues which are faced
by the Mark & Spencer industry is that the desires of women to look more fashionable is
increasing day by day and the company faces in fulfil these requirement. So, they reduce the
quality of the products by increasing the prices of the products. This also includes the use of
cotton and polyester which is cheaper than other textile products. It includes the issues develop
in the environment which cause the disease in the nearer residents. This company also faces
some issue through the internet as it made the customer easier to buy the products at reasonable

rates. In the country, the footwear and clothing are purchasing online at a higher level
(Amponsah and Ahmed, 2017). So, the company faces the struggled to cope-up with the
requirement of the customers. Basically, the customers demand the eco-friendly products in their
demands. The H&M support the demand of the customers by implementing the eco-friendly
clothing products so that it does not get harm to the environment. The development or improving
these environmental issue can improve the policies of retail industries. The issue of high rate of
products with less fashionable ideas is decreasing the production of apparels in the H&M
industries. There are various other stores who are selling more cheaper products than this. This
industry also suffer the online shopping habits of the customers which is increasing moreover as
this industry lags behind in this area. In the change of their selling company policies, the
industries can increase their profits.
Critical evaluation of leadership and management knowledge along with the attributes and skills
for coping up with changed business environment
By carrying out critical analysis of environment which prevails within the market, it is
important to identify global issues that are being faced by H&M and Marks & Spencer. They are
identified through the assistance of external environmental analysis by making use of Pestle
analysis. Management as well as leadership knowledge acts as art for inspiring group of
individuals for taking actions for attainment of goals (Thanetsunthorn and Wuthisatian, 2016).
Management skills refers to management of people as well as resources for delivery of services
or products in an effectual manner. On the other hand leadership skills denotes capabilities that
are needed for engaging individuals as well as persuade to attain a goal or vision of organisation.
The major challenges that are being faced H&M and Marks & Spencer have been addressed
beneath:
Cultural complexities: It is crucial for firms to acknowledge their customers in terms of
values and preferences within the market but it is critical within foreign market. Individuals
within distinct countries place unlike values along with priorities for distinct products. For an
instance, individuals are preferring for buying online products rather than going for traditional
methods for carrying out their shopping. For this, it is important for Marks & Spencer and H&M
to identify on what the customers are willing to spend on. Like online retail sales are increasing,
this will provide both the organisation with an opportunity to opt for this and have improvised
sales (Kara and Fırat, 2018). In addition to this, individuals of different countries like to make

use of online payment methods so, H&M and M&S can make their use. It is crucial to have
coordination with the market so that cultural challenges can be analysed as well as turned into
their strength.
Language barriers: The inability for interacting with individuals acts as one of the major
challenge that will be faced by H&M and Marks & Spencer while delivering their services
within the global market. Translation is not an apt method but instead of this employees can be
hired from respective country so that they can acknowledge what customers are anticipating
from them and what is being furnished to them (Green, 2018). Furthermore, when demands of
individuals will not be addressed then it will create pessimistic impact on organisation and there
sustainability within the marketplace can become questionable. An instance can be taken into
consideration like, within the website of Marks & Spencer details are present in English only
then it will become difficult for individuals who do not know this language to understand what is
written on their site.
Maintenance of customer loyalty: When H&M and Marks & Spencer will deliver their
services in global market then they will face high competition from brands which already exist
within the marketplace. Along with this, customer have also developed the preferences for
brands. It is important for firms to identify what customers are looking forward for like either its
price or quality of services (Ratten, Dana and Ramadani, 2017). But low price do not indicates
that quality has to be compromised, it must be affordable so that firm can attain relevant profit as
well as needs of organisation are also accomplished in a required manner.
Considering the above mentioned issues of globalisation, it is required for given retailing
companies to acquire effective leadership and management skills to cope with problems. It is
necessary to improve the the global strategic thinking to deal with people of different cultures
for facilitating the completion of operations properly. However, it is necessary to use common
language to overcome with language barriers to allocate tasks for employees in various countries
so that communication can be done effectively (Willcocks, 2018). Meanwhile, management skill
of interpersonal influence and collaboration should be improved which helps to manage the
overall operations of organisation which facilitate maintain customer loyalty at internal level.
CONCLUSION
From the above report, it has been concluded that global business can be described as a
business organisation that operates and provides products or services to customers in various

nations. It includes to carry out analysis of external factors including political, economic, social,
technological, legal and environmental that are responsible for influencing the business at global
level. However, it is essential to analyse the political or government rulers of several nations
where company is operating and make decisions accordingly to run business appropriately. In
addition to this, it consist the economic factors including taxation rates and other relevant
policies of different countries which should be followed while operating at international level.
Meanwhile, social and cultural components which has been impact the productivity as well as
the name of the organisation. In this a isolated group and team must be hired and intentional
according to their skills and capabilities that should maintain a track to examine the activeness
and tendency of the youth and buyers by quarry the social groups.
Furthermore, the technological factor has been terminated, this method which greatly
affected to the productivity of organisation is technological feature. According to this the time
period of laptops and mobiles has been altogether alteration the market desires and demands. As
well as some type of companies has already fabricated the e- commerce in which they are giving
entire kind of food, clothing and some other products. Beside this it has been consist that the
usage of artificial ability to detect the desire of potential clients and access of buyers feedback
should be enforced more through the establishment to provide and fulfil the needs of the
customers along with high choice of products. Moreover, it has been completed that the legal
factors which consider the laws, taxation, regulation and rules. These are based on the safety and
health of the clients and customers. It comprises that one of the law is altered by company is
labelling and packaging of the wages. As well as it consists environmental section which can
exist the problems of alteration in climate that reduce the presentation of the company. In this
report it has been terminated the issues which effecting the policies of companies.

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