International Business Report: Marks and Spencer Global Strategy

This report provides a comprehensive analysis of Marks & Spencer's international business strategy, focusing on its expansion into global markets. It begins with an executive summary and an introduction to international business, highlighting the forces driving globalization and the benefits of economic integration. The report delves into key factors for internationalization, including cultural considerations using the Hofstede model, ethical considerations such as workplace diversity and sustainable practices, and global market considerations through the 4Ps of marketing. It examines international entry strategies and competitive strategies like Porter's Five Forces. The report concludes with recommendations for Marks & Spencer's top management, offering insights to navigate the international landscape effectively. This report offers a detailed overview of the company's approach to international business and suggests ways to improve its success in foreign markets.

International Business

EXECUTIVE SUMMARY
In the contemporary business world the multinational companies are globally expanding
their business order to grow and expand their business operations this benefits the organisations
in generating more revenue increasing their customer base reducing the cost, recruiting the new
talent from all over the world and many other opportunities that prosper the business activities
and lead the company to the profitability (Hamilton and Webster, 2018). The present report aims
at discussing internationalisation of the multinational companies and the several factors required
to be investigated in order to participate in an international market. Culture consideration is
considered as the most important factor in order to globalisation into the foreign market as every
country has their difference in the cultures that can severely impact the business of the
organisation. The fact that is important for the international business if the ethical consideration
it is very important to understand the ethical and the legal laws regarding the country in which a
business want to expand. It is very important for the organisation to consider the various global
opportunities with the help of the four P's of marketing mix. Businesses enter into the global or a
foreign market with the help of the best chosen methods of entry such as franchising, licensing,
joint ventures and many more (Buckley, Enderwick and Cross, 2018). All these factors one of
the most important factor is the competitive edge for which organisation is required to implement
a best competitive strategy so that company can successfully enter into the foreign market and
set its footprint in the particular industry it operates in. Porter’s Five force models is considered
as the most dynamic form of competitive strategy that the organisation can adopt in order to
analyse the competitive advantage a company can have in the particular foreign market.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION...........................................................................................................................1
Overview of the Company......................................................................................................1
TASK 1............................................................................................................................................2
Cultural consideration............................................................................................................2
TASK 2............................................................................................................................................4
Ethical Considerations............................................................................................................4
TASK 3............................................................................................................................................5
Global Market Consideration.................................................................................................5
TASK 4............................................................................................................................................6
International Entry..................................................................................................................6
TASK 5............................................................................................................................................6
Competitive Strategy..............................................................................................................6
CONCLUSION and RECOMMENDATION..................................................................................8
References:.......................................................................................................................................9
Books and Journals.................................................................................................................9

INTRODUCTION
International business is a importing and exporting of the goods and services across the domestic
borders of an organisation as a part of a global transaction (Helpman, 2018). Basically
international business is considered as a trading of goods and services technology resources and
knowledge between the two or more countries which is also known as a globalisation. In the
current competitive business environment globalisation has become the trend in order to compete
and grow for expanding the business internationally. In the contemporary business environment
there are the contemporary forces that attract the multinational companies to compete
internationally such as technology is considered as the biggest factor that drives the globalisation
as it has is the trading of resources and the products to be shipped oversee in the low prices and
with more efficiency. Globalisation has become a trend that has benefited many multinational
organisations in terms of brand equity, new customer base, diversity in their workforce, more
sales and revenue and much more (Jameson and Miyoshi, 2020). Economic integration of very
beneficial for the international trade as it reduces the great cost and goods and services are more
likely to trade across the borders as it leads to more efficient economy. With the help of
economic integration the movement of citizens of the employees become liberalised as workers
are only required to deal with the visas and immigration process in order to work in another
country. Hence, economic integration is highly beneficial for the globalisation and international
trade.
Overview of the Company
Marks and Spencer is the world’s famous British multinational company that operates its
business all over the world. The company has it’s headquarter in London, England. The company
operates its business in clothing, food products, cosmetics and apparels and home products. The
Marks and Spencer was first founded in 1884 in Leeds, UK by the Michael Marks and Thomas
Spencer. The company has more than 900 stores all across UK which include 615 the only food
product stores. Marks and Spencer has joint venture with Ocado to provide the online food
delivery service. Large slice of the revenue of the company relies on the retail market of UK.
The company has its first international expansion in 1973 in Canada after which has a global
expansion all over the globe and know has a efficient international business.
1

TASK 1
Cultural consideration
In order to expand the business internationally businesses and companies are often required to
change their business strategies such as marketing strategy, communication strategy, recruiting
and hiring strategy on the basis of the requirements are the demand of the local culture of the
particular country (Cherunilam, 2020). The culture has a strong influence on the companies like
Marks and Spencer local culture of a particular country often dictates and strongly influences the
buying behaviour and the purchasing pattern of the consumer for which company is required to
strategize to cater the consumers more effectively. The Hofstede model of cultural dimension
helps the companies like Marks and Spencer to understand and critically evaluate the cultural of
a particular country in the broad manner. Model contains six specific factors of culture that are
used by Marks and Spencer to expand and internationalise its business into the new country.
Marks and Spencer Hofstede culture dimension model and its various dimensions are discussed
below:
Power distance index: the power distance Index represents the intensity and the degree of
inequality within and organisations individuals and the different groups on the basis of the power
possessed by them. Expensive this is the low power distance index as complete supports equality
among their individuals. Marks and Spencer has a flattered organisational hierarchy this allows
more visibility and transparency between the management of an organisation which promotes
trust and belongingness among the employees.
Individualism vs. collectivism: individualism refers to the organisation focus more on individual
payments and employees are likely to work competitively with each other for their self gain and
development whereas collectivism in an organisation means employees love to work in a team
and share the common goals and objectives while working together. In context of Marks and
Spencer there is a healthy balance between the individualism and collectivism in its
organisational culture which helps the employees in promoting optimal performance as well as
help the organisation in the growing (Rojo and et. al., 2020).
Masculinity vs. femininity: the cultural dimension refers how the job rules and the various
activities within and organisations are distributed between the male and female members of the
organisation. In Marks and Spencer the MAS score low as there is the frequent overlapping of
the responsibilities between the male and female members of the organisation as there is no
2

gender biasness and stereotype for the particular gender. In Marks and Spencer the organisational
culture is more driven by the quality of work rather than on the basis of gender. Marks and
Spencer allows and promote the organisation culture that is less egoistic in nature and favour the
skilful women to come in front and explore the possibilities and opportunities. The organisation
equally celebrates the achievements and the success of the women as of the men in the
organisation.
Uncertainty avoidance index (UAI): uncertainty avoidance index represents the capability of an
organisation to handle the uncertain situations within an organisation. Higher uncertainty
avoidance index means organisation has a culture where innovation and creativity is less
promoted. Whereas the low uncertainty avoidance scores means more relax and open culture
organisation. Marks and Spencer has the mix of both but rather more tilted towards low
uncertainty avoidance score. The company highly increase the changes in the organisation
thereby promoting the innovation (Talalova and Werthschulte, 2020). Company frequently
involve themselves in changing the management practices as well as work together to build a
team that is adaptable towards the internal and external environment to changes without affecting
the performance of the employees.
Long term orientation vs. short term orientation: the organisations that have a long term
orientation display more thrifty culture. Whereas the short term orientation represents
organisation is more towards achieving the short term goals and is values driven. Marks and
Spencer has a long-term orientation in its business process they by focusing on the strategies and
development that provides the long-term benefit to the organisation. Marks and Spencer also as a
short-term orientation and comes to the values in rights of the organisation as company provide
equal opportunities to their employees and their by looking at the minority groups of the society.
Indulgence vs. Restraint: indulgence means organisational culture is more lean towards
satisfying the personal gratifications of their employees as well as their happiness whereas
restaurant culture stands for the culture that is governed by the strict rules and regulations. Marks
and Spencer is the healthy mix of both the components but more inclined towards the indulgence
as company respects the employees and treat them with likelihood and friendliness (Sannino and
et. al., 2020). The company's optimistic and remain calm with their employees and also feels
their responsibility towards their employees personal well being and emotional stability by
regular counselling.
3

TASK 2
Ethical Considerations
When the business organisation expand themselves internationally knowing the strategies
related to the culture competitive strategies policies mission and vision is not only the criteria to
gain the success there is one more factor that an organisation must take into account that is the
ethical consideration in the international business (Saltz and Dewar, 2019). When the business is
planning for the long term expansion into a foreign market the most seriously consider the moral
and ethical changes that can affect their decision making to gain successful International
expansion.
Workplace diversity and equality: most basic and important ethical consideration that an Marks
and Spencer must look after a while expanding the business internationally management of
diversity in the work force and providing the equal opportunities to each and every individual
working in the organisation. The company must set legal rules and regulations regarding the
equality and diversity in the workforce as per the country norms in order to benefit the
employees and the organisation and to avoid any kind of ethical issues regarding the equality.
Ethical trading: Marks and Spencer is strongly known for its ethical trading across the world. It
is very important for the organisation while International expanding to maintain the secular
trading of resources and the products all across the world by maintaining the legal rules and
regulations as per the Government of the particular country. Marks and Spencer has developed
the global sourcing principles regarding the partnership with the suppliers for trading
internationally in terms of working hours, minimum age of employment, rates of pay and other
terms and condition to avoid any illegal trading and unethical practices (Palmer and Palmer,
2018).
Sustainable raw materials: with the growing concern about the environmental safety and
security among the various countries for the safe and secure future, it is very important for Marks
and Spencer to incorporate sustainability in the process and the raw materials use by the
organisation to develop their products. The company has a five year plan that ensures uses of
sustainable recyclable raw materials thereby avoiding the plastic usage and low carbon emission
within the organisation.
4

TASK 3
Global Market Consideration
After understanding the ethical consideration required for the internal business another factor
that is important to be indentifying and understood about is the global market consideration
which is done with the help of Marketing mix. The 4P’s of marketing in Context of Marks and
Spencer are as follows:
Product: In order to expand globally it is very important to adopt a perfect product strategy
which will help the organisation in increasing the product portfolio and reaching out to the
customers of the new country (Ndofirepi, Farinloye and Mogaji, 2020). The product portfolio of
Marks and Spencer in its marketing mix is widely covering all the items of all the age group that
is men women and kids. Under the home products Marks and Spencer offers all the home
accessories, furniture’s, living room interiors lightning etc. that is helpful for the organisation in
increasing its brand value.
Price: Marks and Spencer offers its product to the upper and upper middle class section of the
society therefore the pricing strategy of the company is the competitive and also measured in
terms of value of money as company offers high quality products. The company has its own in-
house brands for the clothing and the other products that a priced between medium and high
category because of its convenience and diversified range. The company says high range of
rivalry in the consumer market therefore company has adopted the competitive pricing policy to
beat its competitive companies and gain the high market share.
Place: Marks and Spencer is a multinational company with its own in-house brand operating in
multiple countries all over the globe. The company's major business relies on the UK where the
company has the highest number of stores in terms of clothing for men, women, kids and food
products and home products. Order to expand the business internationally companies also
adopting place and distribution strategy for which companies choosing the options for
international delivery for the limited products and also increasing its online presence through its
website for the home delivery of the food products (Stead and Hastings, 2018 ).
Promotion: The promotional and advertising strategy of the Marks and Spencer is considered to
be e strong in terms of communicating their messages to their consumers the company uses
various print media TV ads and the other social media campaigns to promote its new series of
products brand and new fashion for the women men and kids. In Order to promote the products
5

and the brand of the Marks and Spencer globally at International level the company uses online
websites and the other social media channels.
TASK 4
International Entry
For expanding the business into new foreign market the organisations are required to adopt the
suitable foreign entry method as there are the several International entry method that are used for
the global expansion of the business such as franchising, licensing, joint venture, importing-
exporting, wholly owned subsidiary etc (Schwens and et. al., 2018). The methods are beneficial
for the organisation to enter into the new market with low risk and better opportunities along
with the systematic and legal extension into the new market.
In terms of Marks and Spencer licensing and franchising considered as the most suitable
International expansion entry mode because these are considered as the most fast entry low cost
and low risk modes of entry. International licensing will allowed the company to provide its
trademark patent and intellectual property rights to the another company of the country thereby
taking care of the manufacturing and the marketing cost of the product in the foreign market as
well as high return on investment. Franchising will help the organisation to set its outlet in the
new foreign market which will be operated by the other franchise (Panwar and Malhotra, 2018).
Franchising is rapid market expansion tool us companies already brand established and well
known among the consumers all around the globe therefore franchising works well for the
company as a repeatable business model for its clothing apparels and also by this company can
utilise its unique and strong brand reorganization in the new international market thereby gaining
the future competition and competitive advantage.
TASK 5
Competitive Strategy
When expanding the business internationally it is very important to analyse the
competition in the particular industry of the particular country for which the porter's five force
model is the suitable strategic management two that helps the organisations to understand their
competitive strategy before entering into the particular country and to gain the competitive
advantage in terms of profitability and productivity (Bruijl, 2018).
6

Threat of new entrants (low): in this industry in which Marks and Spencer operates the threat of
new entrants is low because it requires the large amount of fund and capital to invest to develop
the chain of apparels in the global fashion industry. The fashion industry all over the globe is
highly mature and changing rapidly for which a new entrant would require something in the
weight and radical that has never been seen before in the industry by the consumers. Marks and
Spencer have a strong image and established brand in terms of providing the customer loyalty
and innovation in products.
Threats of substitutes (high): the fashion industry is full of competition and there are big rival
joint retailers in the market all over the globe therefore the threats of substitute is high for the
Marks and Spencer US company has many substitute available for the same product by the rival
companies like ASOS, Tesco, Peter Jones, Zara and many more. The consumers are able to
compare the cheaper alternative from the other organisation is a states that Marks and Spencer
has high threat of substitutes.
Bargaining power of buyers: Customer’s needs and wants are the top priority of every business
and in the current fashion industry the demands and the taste of customers are continuously
changing due to the rapid change in the fashion trends. For this factor The bargaining power of
customers is relatively high for the Marks and Spencer to continuously evolving their marketing
strategy as well as their product portfolio as per the current trends of the market. In terms of
price the bargaining power of consumer is low for the marks Spencer as company is known for
high prices for premium quality products.
Bargaining power of suppliers (high): suppliers are the person that provides the raw materials
and the other equipment that are required by the organisation to develop or finished product
(Wee, 2017). In the global fashion region industry in which Marks and Spencer operates the
suppliers have high bargaining power as there are very less supply is available in the market for
selling the ecological and environmental friendly raw materials and also the companies are
facing problem in selecting and coordinating with the best potential suppliers and to maintain the
strong relationship for the long term.
Competitive rivalry (high): global fashion retail industry all over the globe the competition is
vulnerable for the Marks and Spencer as the companies operating in high rivalry competitive
industry where there are the giants competitors like Zara, Asda, Topshop, Next, John Lewis and
many more selling same variety of apparels and the other products in terms of quality. In order to
7

gain the competitive advantage Marks and Spencer has to regularly differentiate themselves with
the other competitive forms in order to increase the quality and the value for the money.
CONCLUSION and RECOMMENDATION
It is concluded from the above report that in the today’s contemporary business world the
competition and the technology are the two main factors that are driving the multinational
companies to expand their business by conducting the internationalization and globalisation. The
business are benefitting themselves in terms of revenue, trading, reducing cost, availability of
resources and many other aspects with the help of globalization. The culture analysis is very
important before starting the business in a new country as the difference in the culture tends to
bring the major changes in the organisational culture of the company. The organisation adopt
different entry methods for conducting the business in foreign country some which franchising is
common and most popular foreign operation method. The internationalization is considered as
the foremost factor to gain the competitive advantage and to increase the brand presence and
equity. It is recommended to the Marks and Spencer to expand its business on the online
channels so that it can be globally available to the consumers and also help the company to
increase it visibility on the online platforms thereby increasing the online sales for more
profitability and productivity. It is also suggest to Marks and Spencer to not to rely completely
on the UK Market rather focus on diversifying it market and product portfolio by adopting the
expansion in geographical locations like China, brazil, Canada, Russia as these countries are
having huge population and also fashion freak. The company is also recommended to improve
and enhance its advertising and campaigning in the countries like India in order to successfully
gain the advantage of the internationalization in India. It is also suggested to Marks and Spencer
to make joint ventures with the international companies for the online sales and online business
as in current scenario technology is the most contemporary force behind the globalization and
international expansion of the business.
8

References:
Books and Journals
Bruijl, G.H.T., 2018. The relevance of Porter's five forces in today's innovative and changing
business environment. Available at SSRN 3192207.
Buckley, P.J., Enderwick, P. and Cross, A.R. eds., 2018. International business. Oxford
University Press.
Cherunilam, F., 2020. International business. PHI Learning Pvt. Ltd..
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Helpman, E., 2018. Globalization and Inequality. Harvard University Press.
Jameson, F. and Miyoshi, M. eds., 2020. The cultures of globalization. Duke University Press.
Ndofirepi, E., Farinloye, T. and Mogaji, E., 2020. Marketing mix in a heterogenous higher
education market: A case of Africa. In Understanding the higher education market in
Africa (pp. 241-262). Routledge.
Palmer, Z.B. and Palmer, R.H., 2018. Legal and ethical implications of website
accessibility. Business and Professional Communication Quarterly. 81(4). pp.399-420.
Panwar, A. and Malhotra, A.K., 2018. A study on entry methods in international market for
service sector based Indian public sector undertakings. SMART Journal of Business
Management Studies. 14(1). pp.69-81.
Rojo, J and et. al., 2020. Hofstede's cultural dimensions as the explanatory framework for
performance issues during clinical placement: A mixed methods study. Nurse Education
Today. 94. p.104581.
Saltz, J.S. and Dewar, N., 2019. Data science ethical considerations: A systematic literature
review and proposed project framework. Ethics and Information Technology. 21(3).
pp.197-208.
Sannino, G and et. al., 2020. Cultural dimensions, Global Reporting Initiatives commitment, and
corporate social responsibility issues: New evidence from Organisation for Economic Co‐
operation and Development banks. Corporate Social Responsibility and Environmental
Management. 27(4). pp.1653-1663.
Schwens, C and et. al., 2018. Limits to international entry mode learning in SMEs. Journal of
International Business Studies. 49(7). pp.809-831.
Stead, M. and Hastings, G., 2018. Advertising in the social marketing mix: getting the balance
right. In Social Marketing (pp. 29-43). Psychology Press.
Talalova, L. and Werthschulte, D.K., 2020. Adapting two cultures (a glance through the
Hofstede's cultural dimensions model). In FUNCTIONAL ASPECTS OF
INTERCULTURAL COMMUNICATION. TRANSLATION AND INTERPRETING
ISSUES (pp. 12-18).
Wee, C.H., 2017. Think tank—beyond the five forces model and blue ocean strategy: an
integrative perspective from Sun Zi Bingfa. Global Business and Organizational
Excellence. 36(2). pp.34-45.
9

10