International Business Strategies for Next plc: A Comprehensive Report

This report provides a comprehensive analysis of Next plc's international business operations and expansion strategies. It begins with an introduction to international business, defining cross-border transactions and their significance for economic growth. The report then delves into the aspects Next plc must consider when trading across borders, including the use of PESTLE analysis to evaluate political, economic, social, technological, legal, and environmental factors. It emphasizes the importance of international business planning, resource assessment, financial planning, target market identification, and location selection. Furthermore, the report examines the factors Next plc needs to consider to create social impact. The report concludes with a critical evaluation of these aspects, discussing areas for business enhancement and providing recommendations for future strategies. The analysis covers market conditions, competitor analysis, technological adoption, and distribution channels, providing a detailed overview of Next plc's approach to international business.

Business Project

Table of Contents
INTRODUCTION ..........................................................................................................................1
Stating the aspects which organization needs to consider while they trade across borders........2
Stating the factors or aspects which Next plc should consider when trying to create social
impact..........................................................................................................................................5
Critical evaluation of all the above mentioned aspect and discussing the areas which
organization needs to consider to enhance their business...........................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
International business refers to all the financial transaction including sales, investment
and transpiration etc. which take place between two or more regions and countries (Abrego,
2014). Global business consists of the cross border transaction of the goods or services and
resources etc. Besides this, global business transactions also includes the exchange of resources
such as capital, people, technology etc. In the present era, cross border business transactions
facilitate high level of growth and developed of the concerned economy. By exchanging the
resources as well as goods or services organization is able to perform their business functions
and activities in an efficient manner (Perkins and Neumayer, 2012). There are several ways or
methods are available to the business entities through which they can transact at global level. It
includes licensing, joint venture, franchising, strategic allowance etc. These are the most
effective ways through which individual is able to take entry at global level.
In the dynamic business company can build distinct image in the mind of wide segment
of the customers only when they offer their product or services at global level. International
business is the most effective medium which enables business enterprise to develop awareness
among the wide range of customers about the brand which are offered by them (Hernandez,
Ibarra and Trupkin, 2014). Through this, company is able to build their global presence and
thereby maximizes the productivity and profitability aspects. Corporation can survive in the
market only when they serve more regions and nations.
This project report is based upon Next plc which is the major British multinational of
UK. It offers clothing, footwear, food and home products to their customers at reasonable prices.
Next plc has 700 stores all over the world and thereby offers wide group of customers. In
addition to this, Next plc is the largest clothing retailer in terms of sales (Cavusgil and et.al.,
2014). Company has overtaken Marks & Spencer and thereby builds or sustains competitive
advantage in the strategic business arena. It is also listed on the recognized stock exchange of
London namely FTSE 100 index. Through this, it offers shares to the large group of people. One
of the objectives of firm is to maximize their sales and gross margin by satisfying the needs,
wants as well as desires of the customers. Besides this, Next plc offers employment opportunity
to the individual by setting up the stores at different places of the world. This aspect reflects that
business unit makes remarkable contribution in the growth and development of the country
(Domínguez-Gómez, 2016).
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The present report will discuss the position of Next plc over its competitors in the various
market of the country in which they offer their product or services. Further, the present report
will develop understanding about the aspects which organization needs to consider when they
make cross border business transactions (Dunning, 2013). It enables organization to expand their
business operations and functions in the right market which helps it in getting the desired level of
outcome or profit. In addition to this, the report will shed light on the factors which company
needs to consider while making efforts to create social impact.
Stating the aspects which organization needs to consider while they trade across borders
Cross border trade refers to the buying and selling of goods and services in other
countries irrespective of their home country. In this, seller belongs to one specific country and
buyer belongs to other region or country. Cross border transactions provide benefit to the
organization as well as the person who live in that country (Kayser and Peress, 2012). Usually
companies prefer to import the goods or services from other nations when it is very costly for
them to manufacture in their home country. In addition to this, company also makes export of
goods or services when they attain high profitability by serving the people of other nations. All
these reasons compel Next plc to make cross border transactions and thereby takes benefit from
it. In order to analyze the factors which have high level of influence upon the global business
transaction Next plc undertakes PESTLE analysis. Through this, company is able to identify the
extent to which political, economical, social, technological. Legal and environmental factor
affects the growth and success of Next plc. Thus, by taking into account this theory Next plc is
able to build or sustain competitive edge in the global by performing the business operations or
functions in an effectual manner.
Before entering into the global market company needs to make assessment of several
factors which are highly associated with their growth and development aspect. There are several
aspects which Next plc needs to taken into considerations while making the cross border
transactions is as follows:
 Next plc require making international business plan in relation to the country in which it
is planning to open up new store. Company can attain success in the global market only
when they have well defined plan for the establishment (Folsom and et.al., 2013.). There
are several resources which are needed by the firm to manufacture the product or
services. It includes financial, human and other resources which are essential for the
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smooth production and operation of the business organization (Vagts and et.al., 2015).
Thus, Next plc requires assessing that there are sufficient amount of resources are
available within the concerned country or not. Moreover, availability of human resources,
access to the raw material etc. are the main factors which closely affects the business
activities of Next plc.
Thus, company needs to make prior assessment of all these factors which helps them in
making suitable plan of the international expansion. Through this, organization is able to fulfill
its goals and objectives in the international market.
 In addition to this, Next plc also needs to identify the money which they require for the
international business transactions. In this, company requires to make evaluation of their
financial health and performance. It provides deeper insight to an organization about the
fund which is available within the business enterprises (Forsgren and Johanson, 2014).
By assessing the financial capability Next plc can expand its business operations in an
appropriate manner. Thus, company needs to make focus upon the framing of long term
plan rather than short term. By overseeing the market situation firm is able to frame the
most effective plan which helps them in achieving success in the competitive business
arena.
 Further, Next plc needs to conduct research to identify the potential target market in the
overseas market. By undertaking research activity company is also able to identify the
needs, wants and desire of their target market (Abrego, 2014). Through this, business
enterprise can offer standardize d product or services to their customers according to
their needs. It also provides opportunity to the enterprise to offer unique or product or
services to their customers and thereby builds competitive advantage over others. Thus,
identification of the target market is essential for the international growth and expansion
which proves to be more fruitful for the company. For instance: Next plc is planning to
establish its new store in Indian market. In this, organization needs to primarily assess the
target market that prefers to make expenditure in clothing, footwear and luxury food
products which are offered by them. Through this, company is serving the customers in
an overseas market without facing any difficulty. In the present era, customers prefer to purchase product from the place which are highly
convention to them. Thus, company needs to identify the most suitable location for the
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establishment within the country in which they want to expand (Cavusgil and et.al, 2014).
For this, Next plc needs to conduct research which helps them in selecting the best
location for the expansion. Location or place is one of the main aspects which have high
level of influence upon the purchasing decisions of the customers. Thus, company needs
to take caution while selecting location in the international market.
PESTLE analysis
 Political factors: Next plc is also required to evaluate the political as well as economic
condition of the market in which they will go to enter. Political stability or condition in
terms of taxation, tariffs, rule and regulations in relation to trade etc. closely affects the
business practices of the firm in international market (Hernandez, Ibarra and Trupkin,
2014). The political stability of Brazil is not good at present. Whereas on the other hand
political stability of South Africa is fairly good. Therefore, company needs to assess the
political conditions of the global market in which it wishes to enter. Next plc should enter
in only that overseas market in which political condition's area favorable.
 Economic factors: Beside this, economic conditions namely inflation or deflation also
impacts the growth and development aspect of the firm. Inflation represents the situation
high growth, production, employment, rise in standard of living etc (Jarvis, Stoeckl and
Liu, 2016). During the period of inflation there is a significant increase in the purchasing
power of the firm. In this situation, disposable income of the people also increases due to
which they prefer to spend money on the luxurious products or services. Venezuela is one
of the country which had faced at present the inflation at a rate of 57.30%. while on the
other hand Argentina is facing inflation rate of 10.90%.
Further, people also make focus upon the raising of their standard of living. Thus, it is
most favorable situation in which compel business organization to expand its business functions
and activities. Whereas deflation refers to the condition of slowdown in the economy. This is the
situation of high poverty and lees growth etc. in the economy. In deflation customers are less
interested in spending their money in luxurious products. They use cheaper products or services
due to the less income aspect of them (Vagts and et.al, 2015). On the basis of this aspect
company needs to taken into consideration the economic conditions of the market while they
plan to make cross border transactions. Greece. Poland is -0.7 Sweden, Spain are some of the
countries facing condition of deflation.
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 Social factors: Business organization also needs to consider the cultural values and
beliefs while they planning to offer products or services to the international customers.
In addition to this, company needs to evaluate the products or services which are offered
by their competitors. Along with it, firm should consider the quality of competitor’s
product or services. Further, Next plc also requires to also make assessment of the pricing
strategies which are adopted by the firm for similar kind of services (Kayser and Peress,
2012). All these aspects help Next plc in framing the suitable pricing policies and
strategies. Company can attract large number of customers by setting the appropriate or
reasonable prices for the product which are offered by them. Usually, customers are
highly price conscious and they prefer to get the quality products at reasonable prices.
Thus, competitor analysis helps organization in making the most profitable decisions
which make contribution in the attainment of goals and objectives (Folsom and et.al.
2013).
 Technological factors: In the present time, technological aspects are changed with the
very high pace. Hence, for attaining success it is vital for the business organization to
employ latest technological aspects for manufacturing and distribution. In this, company
needs to adopt latest technology which exist in the international market. Availability of
distribution channel also places high level of impact upon the prosperity of the business
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organization at international market. There are specifically two types of channel which
organization can use to offer the products or services which are manufactured by them
(Lafraire and et.al., 2016). In direct distribution channel, company straightly makes
contact with their customers without involving any intermediary. Whereas in indirect
channel large number of intermediaries in the distribution of product which facilitates
effectual delivery of the goods or services.
If company wishes to undertake direct channel then it needs to make focus upon the
social media marketing (Newcomer and et.al., 2016). In contrary to this, if business unit
undertake indirect channel then it needs to identify the availability of the personnel to distribute
the product or services. Primarily, satisfaction of the customer is highly dependent upon the time
which organization takes to deliver the product or services. Thus, corporation can grow in the
global market only when they have quality and skilled workforce to deliver the product or
services (Forsgren and Johanson, 2014). Thus, supply chain management plays a vital role in
achieving success in the strategic business arena. Legal factors: Laws and legislation are highly differs from country to country. In this
regard, for achieving success in the international market business unit must comply with
the legal framework of that respective country. For instance: each country frames some
food standards with the aim to offering the quality products or services to the customers.
In this, if business organization is planning to manufacture and offer products in India
then they require to follow all the safety standards which are framed by the government.
Moreover, company can build distinct image in the mind of international customers when
they offers quality and hygienic food products to the customers.
 Environmental factors: company also needs to consider the climatic and weather
condition while taking decision in regarding to move at international level. Moreover,
such aspects also have high level of influence on the functioning and operations of
business unit.
 Next plc also needs to open the service centers in the respective countries with the aim to
provide after sales service to their customers. In today's world, it is essential for the
business organization to offer after sales service to their customers. This aspect also plays
a vital role in evolving the satisfaction among the customers (Perkins and Neumayer,
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2012). Thus, company also needs to consider this aspect while they planning to transact
at global level.
Thus, Next Plc needs to be taken into consideration all the above mentioned aspects
while it is planning to trade across borders. Through this, company is able to expand its business
operations and functions at global market.
Stating the factors or aspects which Next plc should consider when trying to create social impact
In the global business environment, social environment have high level of influence upon
the success of business organization. Social environment refers to the sum of beliefs, customs,
practices and behavior of society (What is social environment? 2016). All these aspects closely
impact the marketing strategies and policies of Next plc. Business organization do CSR
activities to build or sustain distinct image in the mind of stakeholders. Corporate social
responsibility may be defined as business practices through which organization makes effort to
offer high level of benefit to the society. Enterprise has responsibility to perform their business
activities in the compliance with the laws and legislation. By performing such activities company
is able to develop effective image in the mind of target market. Carroll model also provides
assistance to the firm in creating long lasting impact on stakeholders. This model states that by
company needs to perform all the legal, ethical and economic responsibilities in order to create
the specific position at marketplace. There are several factors which business organization needs
to be taken into consideration while it making efforts to create social impact in the following
manner:
 Primarily, company needs to offer food and other products to its customers in accordance
with their actual needs, wants and desire. In addition to this, organization also needs to
consider the customs, beliefs and attitude of the customers which helps it in satisfying the
needs of them. Moreover, people are highly differs in terms of their likes and dislikes in
relation to the food, clothes etc. People who belong from different society follow
different kind of rituals (Vagts and et.al., 2015). Thus, Next plc should consider all these
factors while manufacturing the products or services for their customers. This, aspect
have high level of influence upon the purchasing decisions of the customers. Besides this,
company also needs to conduct research and development activity which helps them in
identifying the needs and wants of the customers. It enables them to offer standardized
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products or services to their customers (Jarvis, Stoeckl and Liu, 2016). Through this,
business enterprise can maximize their productivity and profitability aspects.
 Along with it, company can easily create social impact by placing most suitable
advertisement. Corporation should frame promotional campaign and program on the
basis of customs and beliefs of the target market. Business units need to consider all the
aspects which do not hurt the sentiments and emotions of the existing and potential
customers. Through this, organization is able to attract large number of customers
towards the products or services which are offered by them (Dunning, 2013). Further,
company has liability or responsibility to offer similar kind of the products which are
advertised by it. Company can build distinct image in the mind of the target market by
offering the product with similar features, price, quality etc. according to the advertised
product. This factor evolves high level of satisfaction among the customers and thereby
helps in developing the positive impact upon the people of society (Domínguez-Gómez,
2016). Thus, Next plc needs to ignore involvement of fake information in the
promotional campaign and program.
 In addition to this, company requires to fulfill its social responsibility by producing the
Eco friendly products or services. In the present era, company gives more preference to
the environment friendly products rather than the products which emit the pollution.
Moreover, health aspect of each and every individual is highly associated with the
environmental aspects (Social Factors Affecting Business. 2016). Thus, business
organization needs to undertake reusable packaging system. In this, customers are also
able to reuse the package for other purposes in terms of container etc. Through this,
organization can attract the customers in relation to the purchasing of product
manufactured by them. Along with it, awareness about the health and safety aspect is
continuously increasing among the customers. Thus, organization needs to consider all
the environmental aspects during the production process. Through this, Next plc is able to
attract more customers who give preference to environmental friendly products or
services.
 In the strategic business arena, people have desire to make use of high tech product which
makes contribution in their standard of living. In this, it is the responsibility of firm to
make in depth research and thereby produces unique and high tech products (Newcomer
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and et.al, 2016). By fulfilling the technological expectations of the customers business
unit can attain success in the competitive business place.
 Besides this, Next plc also include the lifestyle of their existing as well as potential
customer base. In today's world living pattern plays an important role in the decision
making aspect of the customers. Therefore, Next plc needs to produce more suitable
product by going through the living standard and pattern of the customer base (What is
social environment?. 2016). For instance: customers are highly price conscious and make
comparison of price with the quality of product or services. It is one of the main factors
which have impact upon sales and gross margin of the firm. Usually, people who have
more money prefer to purchase costly products because they think that it represents their
status.
In contrary to this, customers who have less disposable income give priority to getting the
quality product or services at very reasonable cost. Thus, Next plc needs to make focus upon the
offering of wide range of product or services to its customers (Dunning, 2013). Through this,
company is able to satisfy the needs of the each customer segment. This strategy proves to be
more fruitful for the business enterprises. Besides this, by serving the customers according to
their demand, income etc. company is able to getting success in the changing business
surroundings.
 Further, educational level of the customers also place impact upon the buying decision
making of customers. If potential and existing buyers are highly educated then they place
emphasis on each aspect of product in relation to the price, quality, quantity etc. In
addition to this, customers also make comparison of the features and quality of the
product with their competitors. Hence, Next plc also make study of the quality of features
of the products which are offered by their rival firm. By this, business unit is able to offer
suitable product or services to its customers as compared to the other firms who also
offers similar type of products (Lafraire and et.al, 2016). It helps organization in fulfilling
its goals and objectives more effectively or efficiently.
 Attitude of the customers towards saving and investment habit also have significant
impact upon the growth and development of the firm. Usually, people prefer to save
money for their future rather than making investment of it. Whereas several other people
make investment in the product or services to raise their living pattern or standard
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(Hernandez, Ibarra and Trupkin, 2014). Such habit of the customers closely affects the
net profitability aspect of the firm. Thus, Next plc also needs to consider the saving and
investment habit of the customers in the marketing plan and campaign. It enables
business organization to target suitable customer segment which in turn helps in getting
the desired level of output.
 In today's business place needs and expectation of the customers are changed as changes
take place in the business environment. In the world of technological advancement
people are highly associated with each through the means of internet and mobile phones.
Therefore, friends, family members and other loved one closely affect buying decision
aspect of the customers. Usually, customers take suggestion from their loved one and
prefer to purchase the product or services from the place which are told to them.
Moreover, customers show more trust towards the aspect which are conveyed by their
loved one irrespective of the actual quality and features of the product or outlet (Jarvis,
Stoeckl and Liu, v 2016). Thus, company also make focus upon the people who are
closely linked to their target customers.
 Beside this, Next plc should also make evaluation of the buying habit of their customers
in relation to the product which organization is planning to introduce in the market.
Buying habit or power is highly related to the gross production and margin of the firm. It
is the main cause due to which Next plc needs to make assessment of the consumption
pattern of UK customers in relation to the product which they wish to introduce (arvis,
Stoeckl and Liu, 2016). For instance: Next plc is planning to introduce ice creams of
different flavors in Asia market. In this, company firstly requires to assess the buying
habit of Asia customers in relation to the purchasing of ice cream. This aspect facilitates
understanding about the frequency to which Asia customers consume ice cream. This
aspect provides information to business organization about the success of the introduction
of new product in the market. Through this, company is able to invest their money in the
more suitable project and thereby maintains the sound financial health or performance of
it.
 Next plc also needs to place more emphasis upon the health and safety aspect of their
customers. Now a days, customers primarily give priority to their health aspects and
thereafter make focus upon other aspects. Before, customer gives more preference to
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price of the product irrespective of the quality aspect. Whereas in the present scenario,
quality and packaging of the product plays a vital role in attracting huge customer
(Perkins and Neumayer, 2012). Thus, firm needs to involve health and safety features
which manufacturing the product or services for their society. Thus, company needs to
make use of safe packaging styles which may prevent injury while customer opens up the
product. Besides this, business enterprise also needs to make use of quality ingredients
while producing the product or services for their target market. Therefore, attitude of the
customers towards quality aspect of the product is also the most significant factor which
has influence upon the success of the firm.
 Along with it, population growth rate is also one of the main factors which highly affect
the development aspect of the retail firm. Company can serve the huge customers only
when there is high growth take place in the population facet of UK, Asia and Africa.
Moreover, consumption pattern of the product or services are highly dependent upon the
persons who are available to consume the product or services (Social Factors Affecting
Business, 2016). Hence, Next plc requires making assessment of the rate at which
population of UK is growing. Through this, organization is able to frame cost effective
marketing policies and strategies for them.
 Next plc performs their responsibility towards the customers to the large extent by
offering quality and designer clothes and other accessories to the customers. Further,
business organization creates an environment which helps them in retaining the people
for long run. In addition to this, business enterprise also give donation to the all size of
organization. Along with it, firm also makes charity which offer high level of benefit to
the people of community. Firm also makes effort in relation to the reducing of direct
impact which business organization places on environmental aspects. On the the basis of
all these aspects it can be stated that Next plc had performed its social responsibility
towards the community, customers, employees and environment etc (Corporate social
responsibility of Next plc, 2016).
Affects of the of EU of Next plc.
If UK left its membership from European union that in that case Next plc. will face
various trade barriers. Moving towards international trade will create many difficult for Next plc.
company will not be easily be able to trade in the international market. They will start facing
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various barriers like taxation barrier, sales barriers, import and export barriers, transportation
barriers and many more (Jarvis, Stoeckl and Liu, 2016). In addition to this the growth level of the
company will also decline. Along with this its expenditure will also increase will in turn reduces
the profitability margin of the company.
Thus, in short it can be said abolish of European policy in UK will affects the working of
all the branches of the Next plc. operating its business in different countries. Moreover,
abolisation of European policy will affect the working of all the company operating its business
under European Union. This, in turn will create a high impact on the financial growth of UK.
Critical evaluation of all the above mentioned aspect and discussing the areas which organization
needs to consider to enhance their business
Theme 1: Aspects which business organization require covering while they make cross border
trade
According to the view point of Perkins and Neumayer (2012) when organization make
business transactions across the country then it is termed as international trade. Usually,
companies prefer to take advantage of global business environment which helps them in
expanding their business operations and functions. Thus, corporation prefers to establish the
office in the host country which facilitates high level of production and profitability aspect.
However, it is to be critically evaluated by Hernandez, Ibarra and Trupkin (2014) that it is not
necessary for the firm to establish their offices in host country also. Company can also make
global business transaction from the office of their home country. In accordance with the view
point of Kayser and Peress (2012) there are numerous factors which business organization needs
to consider while they planning to trade across borders. Company needs to make effective plan
before entering in the international market.
Moreover, business plan provides direction to the business firm and thereby helps in
performing the business functions or activities in an efficient manner. Abrego (2014) argued that
company have to prepare business plan while they planning for expansion whether at local or
global level. Political, legal and regulatory framework are the most important aspects which have
high level impact upon the growth and profitability aspects of the firm in global market. Cavusgil
and et.al, (2014) claimed that success of the business firm is also highly influenced by the
environmental and social factors. Company van attain success in the global market only when
then business situations and other aspects are positive and highly favorable. As per the view
12

point of Vagts and et.al, (2015) business entity also needs to make assessment of the distribution
channel which is present in the overseas market. Moreover, corporation can build distinct image
in the target market mind when offer unique product or services in the market within the less
time frame. In the retail industry, company also requires skilled and talented workforce which
provides assistance to the business organization in distributing the product or services which are
manufactured by them.
Theme 2: Factors which retail firm needs to consider while making efforts to create social
impact
According to the view point of Lafraire and et.al, (2016) social environment also plays an
important role in the growth and development of the business organization. In the present era,
retail firm is highly growing industry which needs to involve several factors while they planning
to create social impact. In order to make social impact retail firm needs to undertake religious
and beliefs of the customers. In UK people are belong from different society which may cause of
differences which take place in the needs, wants and expectations of the customers. However, it
is to be critically evaluated by Newcomer and et.al, (2016) that religious beliefs are not only
factors which affect the buying decisions of the customers. In the high tech business arena
customers prefer to make use of environmental friendly products. Besides this, lifestyle is also
the biggest factor which impacts the consumption pattern of the customers. Usually, people
purchase costly products to represent their status symbol. As per the view point of Domínguez-
Gómez (2016) consciousness among the customers towards health and safety aspect also affects
the business policies and strategic management of the firm.
Next plc performs their activities in sch a manner which may result into conservation of
water, energy and other aspects. For offering the eco-friendly environment to the people of
society business unit employs the sustainable ways of performing the business operations and
function. This in turn make contribution in green environment by reducing the level of pollution
to the large extent. Besides this, company also employs 4 R's such as reuse, reduce, recycle and
recovery etc. Company also encourages their employees to perform their work in an effectual
manner. It enables firm in avoiding the wastage of resources to the great extent. All these aspects
assist business unit in build or sustain distinct image in the mind of society. Moreover, now
customers prefer to purchase the products or services from the store who undertake environment
-friendly aspects. Hence, it has provided assistance to Next plc in creating the social impact more
13

effectively and efficiently. However, buying habits, educational level as well as population
growth rates are also the most essential elements which may impact the market share and brand
image. Author argued that disposable income of the customers have also impact upon the sales
and profitability aspect of the business firm. Moreover, customers are encouraged only when
they have disposable income to spend in the luxurious products or services. Thus, company
needs to include all the essential aspects while them planning to make social impact upon the
target customers. It enables business organization to develop satisfaction among the customer
base and thereby raise their production and operational aspects.
Areas on which Next plc needs to make focus to enhance their business performance: There
are various areas upon which Next plc needs to make focus to enhance their business
performance are as follows:
 Next plc needs to make assessment of the political, economical, social, legal and
environmental aspects of the in which it is wishes to enter. Through this, company is able
to attain success in the overseas market within the fewer time frames (Vagts and et.al.,
2015). It also offers opportunity to business unit in relation to the building of competitive
position over the rival firms.
 Beside this, company needs to undertake SWOT analysis to identify the strength,
weaknesses of the firm. Further, it also provides deeper insight to the firm about the
opportunities and threats which are present in the business environment (Kayser and
Peress, 2012). Through this, Next plc can ensures the effective implementation of
policies and strategies in overseas market by considering their strengths.
 Along with it, Next plc needs to make evaluation of all the social factors while they want
to attract large number of customers. In addition to this, company also requires to take
feedback from their existing customers about the product or services availed by them
(Domínguez-Gómez, 2016). It provides deeper insight to the business firm about the area
of the product in which they requires to make improvement.
Hence, by following all the above aspects Next plc can easily enhance its business
performance and position at competitive business place.
CONCLUSION
From this business project it has been concluded that international business transactions
or trade facilitates growth and development of the business organization. By making transactions
14

across the border Next plc is able to build distinct image in the mind of target market. Besides
this, it can be concluded that there are several factors which have high level of influence upon
the cross border transactions. Thus, Next plc needs to be taken into consideration political and
economic conditions of the country in which it is planning to enter. Further it can be inferred that
geographical location and financial capability also affects the international business decisions of
an organization. Moreover, company needs to undertake research to identify its potential market
as well as their needs, wants and desire. In the competitive business environment, Next plc can
attain success in the global market only when they have enough amounts of human, financial and
other resources. Thus, company needs to undertake all these aspect while they wish to going
international for the expansion of business operations and functions. With the help of such
factors company is able to grow in the international market.
It can be seen in the report that there are several social factors which have high level of
influence upon the strategies and policies which are framed by the firm. Thus, Next plc needs to
include various factors while they planning for the marketing of product or services. It can be
seen in the report that now a day’s customers give more preference to the products which are
environmental friendly. Beside this, it can be inferred that religious beliefs also place high level
of impact upon the business framework to the large extent. Company can achieve success in the
domestic and global market only when they offer product or services to their customers
according to their rituals and expectations. It enables business unit to evolve satisfaction among
the customer base and thereby contributes in the growth aspect of firm. Further, it can be
concluded that lifestyles, buying habit and educational level of the customers are also most
significant factors which affects the manufacturing and distribution of the product or services. In
addition to this, Next plc have accountability to give appropriate information to their customers
about the product or service through the means of advertisement. Thus, Next plc should
undertake all the above mentioned aspects while them planning to create social impact. All these
aspect provide assistance to retail organization in build and sustain competitive edge over others.
In the competitive business place company also requires to undertake the pricing, production and
other policies which are adopted by their rival firm. It provides deeper insight to Next plc about
the action which firm needs to undertake to grab the large market share. Through this,
organization is able to undertake more effectual measures and policies which help in increase
their customers. Furthermore, it can be articulated that Next plc can make improvement in its
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performance and position by conducting SWOT analysis. Through this, business unit is become
able to perform their functions and activities in an effervescent manner and thereby maximizes
the profitability aspect of it.
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REFERENCES
Books and Journals
Abrego, L., 2014. Sacrificing families: Navigating laws, labor, and love across borders.
Stanford University Press.
Cavusgil, S.T. and et.al., 2014. International business. Pearson Australia.
Domínguez-Gómez, J.A., 2016. Four conceptual issues to consider in integrating social and
environmental factors in risk and impact assessments. Environmental Impact Assessment
Review. 56. pp.113-119.
Dunning, J.H., 2013. Multinationals, Technology & Competitiveness (RLE International
Business). Routledge.
Folsom, R. and et.al., 2013. Principles of International Business Transactions, 3rd (Concise
Hornbook Series). West Academic.
Forsgren, M. and Johanson, J., 2014. Managing networks in international business. Routledge.
Hernandez, M.A., Ibarra, R. and Trupkin, D.R., 2014. How far do shocks move across borders?
Examining volatility transmission in major agricultural futures markets. European Review
of Agricultural Economics. 41(2). pp.301-325.
Jarvis, D., Stoeckl, N. and Liu, H.B., 2016. The impact of economic, social and environmental
factors on trip satisfaction and the likelihood of visitors returning. Tourism Management.
52. pp.1-18.
Kayser, M.A. and Peress, M., 2012. Benchmarking across borders: electoral accountability and
the necessity of comparison. American Political Science Review. 106(03). pp.661-684.
Lafraire, J. and et.al., 2016. Food rejections in children: Cognitive and social/environmental
factors involved in food neophobia and picky/fussy eating behavior. Appetite. 96. pp.347-
357.
Newcomer, A.R. and et.al., 2016. Higher childhood peer reports of social preference mediates
the impact of the good behavior game on suicide attempt. Prevention Science. 17(2).
pp.145-156.
Perkins, R. and Neumayer, E., 2012. Does the ‘California effect’operate across borders?
Trading-and investing-up in automobile emission standards. Journal of European public
policy. 19(2). pp.217-237.
Vagts, D.F. and et.al., 2015. Transnational business problems. West Academic.
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Online
Social Factors Affecting Business. 2016. Online. Available through:
<http://pestleanalysis.com/social-factors-affecting-business/>. [Accessed on 16th January
2016].
What is social environment?. 2016. Online. Available through:
<http://study.com/academy/lesson/how-the-social-environment-affects-business.html>.
[Accessed on 16th January 2016].
Corporate social responsibility of Next plc, 2016. Online. Available through: <l>. [Accessed
on 13th April, 2016].http://www.nextplc.co.uk/corporate-responsibility
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