The Impact of Multinational Corporations on Business Environment

This report examines the impact of multinational corporations (MNCs) on the business environment, using Marks & Spencer as a case study. It begins with an introduction to globalization and its implications for businesses, highlighting the benefits and challenges of international expansion. The report's aim is to analyze the impact of MNCs on the business environment of Germany, with objectives including assessing the importance of MNCs, identifying their influence, and examining potential barriers to expansion. A project management plan is detailed, covering cost estimates, scope, timeframes, quality control, communication strategies, risk management, and resource allocation. The research methodology includes both qualitative and quantitative approaches, utilizing primary and secondary data collection methods. A work breakdown structure and Gantt chart are also included to illustrate project organization and timelines. The report explores the strategies and challenges of MNCs in a globalized world. The report concludes with findings, recommendations, and a reflection on the study, offering insights into the impact of globalization on business operations and the strategies for successful international expansion.

Managing successful
business project

Table of Contents
INTRODUCTION ..........................................................................................................................3
Aims and objectives of the project .............................................................................................3
A project management plan .......................................................................................................4
Research .....................................................................................................................................4
Findings and conclusion ...........................................................................................................12
Reflection .................................................................................................................................19
Recommendations ....................................................................................................................20
CONCLUSION ............................................................................................................................20
REFERENCES..............................................................................................................................21

INTRODUCTION
Globalisation is defined as the integration of different markets where trading takes place
between different countries (Ahmed Dine Rabeh, Jimenez-Jimenez, and Martínez-Costa, 2013).
Globalisation can take place in different markets like financial markets, credit markets,
commodity markets such as oil, tin, gold, coffee market, consumer electronics, motor vehicles.
Globalisation increases the potential of a company to be successful and make profits. There are
some key implications of globalisation for business includes the increase in trade across borders
of services and goods. Globalisation has led to an increase in competition and financial and
economic shift from developing economies to the emerging economies. The company considered
in the following report id Marks and Spencer , which is a major British multinational retailer
which has headquarters in Westminster, London. Marks and Spencer was founded by Michael
Marks and Thomas Spencer in the year 1884. The main aim and objective of this report is to
know how multinational companies impact the business environment of the host destination like
a region, country or city. The following report consists of project management plan that includes
actions for meeting the goals and objectives of the company in given time. A research is
conducted for analysing this topic and conclusions and recommendations are made for the
organisation.
Background of the study
Marks and Spencer is a multinational company and it is involved in selling of clothes,
home products and luxury food products. This company was founded by the partnership between
Thomas Spencer and Michael Marks. This company has got great success in global expansion.
The first Asian store of Marks and Spencer was opened in Kabul, Afghanistan in the year 1960.
As a multinational company, Marks and Spencer provides a critical financial infrastructure for
economic and social development in a developing country (Crane and Matten, 2016). So this
company has to handle many consequences while operating globally.
Aims and objectives of the project
AIM
The aim of the project is “To analyse the impact of multinational organisations on
business environment of Germany”. A case study on Marks and Spencer.
OBJECTIVES

 To analyse the importance of multinational organisation for a country.
 To identify the influence of multinational companies on business environment of
Germany.
 To examine the barriers which could be faced by Marks and Spencer while expanding
business among different nations.
A project management plan
Research
Research Plan
Project Title
“To analyse the impact of multinational organisations
on business environment of Germany”. A case study
on Marks and Spencer.
Project Plan
Company Name:
Marks and Spencer
A Project management plan is defined as a formal or
approved document that helps a company in managing
and controlling it's project activities. It is important for
organisations to prepare a project development plan
that includes every important information associated
with the development plan. This plan provides
information related to time of project, risk, estimated
cost, scope of project, etc. In the context of Marks and
Spencer, a proper project management plan will help
Marks and Spencer in taking effective decisions for
project ( (Den Hertog, Van der Aa, and De Jong,
2010)). This plan is useful in analysing the impact of
multinational organisations on business environment
of Germany. The development of a project
management plan involves different aspects which are
described below:

Cost
Cost estimates the amount which is needed for doing
various business activities. While conducting a
research, the company has evaluated an amount of
20,000. The expansion of business in Germany was
very expensive as Marks and Spencer has to build it's
market share in Germany (Eckerson, 2010). Several
marketing campaigns and offers were conducted there
for making a good image of products of M&S in front
of customers of Germany.
Scope
Scope determines the opportunities related to project in
future or long run. The project must have a huge scope
for the company then only it will be beneficial. In
context of Marks and Spencer, This organisation will
be able to know the affect it is causing to the market of
Germany and what are the different opportunities to
attract customers in that area. The company will be
able to give more proper services and goods to
customers and following all regulations of other
country by analysing the impact of multinational
company on a host country. The managers of Marks
and Spencer will be able to analyse their growth
opportunities in market of other countries while
conducting the research.
Time
It is an important factor of any project and it helps in
identifying time taken to complete business activities.
This project is about multinational company's impact
on host countries (Gebauer, Edvardsson, and Bjurko,
2010). It will take around six months to accomplish
this project. In context of Marks and Spencer, the
project will take 60 days for completing all the tasks
and activities of the project in specified time.

Quality
For making a research successful all process must be
implemented in a proper way. Therefore, with the help
of this research, investigator will get to know about
impact and affects of a multinational company on the
business environment of other countries in which it is
operating.
Communication
Communication is an essential factor while conducting
any research in an effective manner. The company
communicates whole plan to staff members as it will
provide in identifying the pros and cons that impact
success of a project. A better and good communication
provides encouragement to exchange ideas and views.
A project can be succeded in an effcetive manner if
there is a good communication between members. For
instance, an investigator can use effcetive
communication and coordination for accomplishing
the project activities in a proper way. Also, interaction
with respondents becomes effcetive. This will help
Marks and Spencer in communicating with different
host companies to implement appropriate policies for
operating business.
Risk
Multinational companies are benefited when they
expand their business at global level (Incelli, 2013).
On the other hand, there are some risk factors which
are there while operating in other countries. The
expansion of business in markets of developed
economies is beneficial for the company but on the
other hand, the market expansion in poor economies is
not much profitable for business. In context of Marks
and Spencer, the company is operating in several
developed as well as developing countries and

earnings profits. Whereas in relation with the
researcher, interacting with respondents can be one
major risk because there might be a possibility that
respondents don’t agree to respond to their questions.
As a result, this can put an impact on collecting
appropriate data and information for evaluation of an
effective research.
Resources
For making research more appropriate it is crucial that
researcher make optimum use of resources such as
funds, labour force etc. The researcher uses both
tangible and intangible resources in this research
(Jones, and Lubinski, 2012). Moreover, organisation
can use new technologies and tools while operating in
global markets. This will help in coming up with better
outcomes and results.
Type of Research
Primary and Secondary
Quality and Quantity
While the conduction of a research, it is important for
the researcher to consider a good research
methodology. A research methodology helps in
organising, realising and interpreting the information
in an appropriate manner. There are basically two
types of research methodology naming qualitative and
quantitative methods that are used by researchers for
the conduction of research. It includes data analysis,
investigation of design and data interpretation.
Qualitative research methodologies- A qualitative
research methodology is used by the researcher for
collecting the data associated with observation of
multinational companies that operates in host country
(Kankaanranta and Planken, 2010). In the present
scenario, investigator has used qualitative research
methodology for analysing the data.

Quantitative research methodologies: In quantitative
research methodology, the information is analysed by
using mathematical formulas and statistical approach
is formulated. This kind of research methodology
provides authentic outcomes that are based on facts
and figures. The investigator is able to collect large
data effectively by using this methodology. The
investigator provides conclusive answers to the
research questions. The data is analysed in this
methodology by using questionnaires, interviews,
records and observations (Lai, and Ong, 2010). This is
an effective technique for identifying solutions for
problems through the use of numerical data.
In addition to above methods, researches can
use following two types of techniques also to gather
relevant information:
Primary data collection method: It is a basic
collection method for investigators which allows to
draw authentic data and information. This kind of data
collection is helpful as it uses fresh and unused data
for determining effective outcomes. In the present
scenario, researchers have used primary data collection
to gather information. Further, questionnaire approach
is used for getting information about the issues in
company while operating in other countries.
Secondary data collection method: The type of
secondary data collection uses data and information
available in magazines, books, journals and many
other publish sources of different authors, scholars and
publishers. In this method, data is collected from
already existing data. This method is cost effective

and time effective.
Work Breakdown Structure for the Project
A work breakdown structure is a key project deliverable which organises the team work
into manageable sections (Lin, and Chen, 2012). This helps in dividing the project into different
sections and manage them effectively. A particular time frame is set for doing the project
activities.
Basic Gantt Chart
Gantt Chart is a tool by which a project or task is fragmented into small activities with
proper time allocation. This helps in conducting the research in an effective manner within the
given interval time.

Research Methodology and Data Collection
Research Methodology: It is method by which an investigator gathers information from
respondents. The researcher has to adopt different methods like qualitative, quantitative,
secondary and primary methods for conducting research in an appropriate manner.
Data collection
In the data collection, investigator collects information from respondents by adopting
several methods of data collection such as primary and secondary sources (Shang, 2012).
Questionnaire
It is a set of various of questions that are prepared by researcher for understanding the
opinion of different respondents in order to find better outcomes of the research.
QUESTIONNAIRE
NAME:
AGE:
ADD:
GENDER:
MAIL ID:
Q1) Are your aware with the concept of expansion of multinational companies in host country?
 Agree
 Disagree
Q2) Is it beneficial for Marks and Spencer to operate in Germany?
 Yes
 No
Q3) Does Multinational companies affects the business environment of host region, country and
area?
 Yes
 No

Q4) What are the main advantages of multinational company in investing in other country?
 Enhance profitability
 Increase market share
 Gain competitive advantages
Q5) Does multinational companies affects policies and regulations of host countries?
 Yes
 No
Q6) What are the barriers faced by multinational companies in operating business globally?
 Political Interference
 Economic Crises
 Social and Cultural influence
Q7) What are the ways to overcome the above barriers and operate a successful business in
other countries?
 Formulate strong strategies
 Concern political laws
 Give more employment to local riders
Q8) Does multinational companies operate successfully in other countries?
 Yes
 No
Q9). Provide suggestion to Marks and Spencer in operating successful business in Germany....
Sample size: The respondents taken in this research are 20 as it was not easy to
communicate to every individual from the population. These respondents are given questionnaire
for filling it appropriately.
Sampling method: In the given research, the investigator has used random sampling
method for giving results and concluding the outcomes of research.
Secondary Research
In this methodology, the investigator has collected data and information through various
sources like magazines, books, journals, online articles, newspapers etc. for collection of relevant
data for research outcomes.

Findings and conclusion
Theme 1 : Concept of multinational company
Q1) Are your aware with the concept
of expansion of multinational
companies in host country?
Frequency
Agree 16
Disagree 4
Interpretation
From the above graph, it has been concluded that there are 16 respondents who are aware
about the concept of operations of multinational companies in host countries and other 4
respondents do not have any information about it. There is a vast expansion of companies in
global markets since years and that is why there are more number of people who know about the
expansion of multinational companies and host countries.
Theme 2 : Beneficial for Marks and Spencer in operating in other countries
Q2) Is it beneficial for
Marks and Spencer to
operate in Germany?
Frequency
Yes 17
Agree Disagree
0
1
2
3
4
5
6
6
4
Column B

No 3
Interpretation
From the above analysis, it is concluded that Marks and Spencer is experiencing heavy
profits while operating in Germany. The company always experiences profits while doing
business in other countries. On the other hand, there are few people who denied this statement.
Theme 3 : Multinational companies operations
Q3) Does Multinational
companies affects the
business environment of
host region, country and
area?
Frequency
Yes 8
No 12
Yes No
0
1
2
3
4
5
6
7
7
3 Column C

From the above graph, it is concluded that according to 12 respondents, multinational
companies affects the business environment of host countries, areas and region as rules and
regulations, taxes are different for every country. On the other hand, 8 respondents say that
business is not affected by any external company.
Theme 4 : Main advantages of operating globally
Q4) What are the main
advantages of
multinational company
in investing in other
country?
Frequency
Enhance profitability 15
Increase market share 3
Gain competitive
advantage
2
Yes No
0
1
2
3
4
5
6
7
8
8
2
Column C

From the above analysis, it has been concluded that 15 respondents think that there are
many advantages possessed by multinational companies while doing business at global level.
The majority of respondents think that the reason is that it enhances the profitability of company.
Theme 5 : Impact on policies
Q5) Does multinational
companies affects policies
and regulations of host
countries?
Frequency
Yes 8
No 12
Enhance profitability
Increase market share
Gain competitive advantage
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Column D

It is concluded from the above graph that 12 respondents denied that multinational
companies affect policies and regulations of the country. Other 8 respondents say that companies
have to follow rules and regulations as per the country for conducting business.
Theme 6 : Barriers faced by M&S in operating in host areas
Q6) What are the barriers
faced by multinational
companies in operating
business globally?
Frequency
Political interference 4
Economic crisis 15
Social and cultural
influences
1
Yes No
0
1
2
3
4
5
6
7
8
8
2
Column C

From the above analysis, it is concluded that majority of respondents think that the main
barrier for operating globally is political interference. There are other two barriers such as
economic crisis and social and cultural influences that affects operations.
Theme 9 : Success rate of companies in other countries
Q9) Does multinational
companies operate
successfully in other
countries?
Frequency
Yes 18
No 2
Political interference
Economic crisis
Social and cultural influences
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
4
5
1
Column D

From the above graph, it is interpreted that there are 18 respondents who say that
multinational companies are successful when operating in other countries. It increases profit of
company but there are 2 respondents who are against this viewpoint.
Reflection
While doing the research, I was enthusiastic at all time and did my work sincerely. There
were some situations where I felt low but I was motivated by my friends and family. The main
issue faced by me while conducting the research is that I had less time to analyse the data
effectively and make better outcomes. There was not enough fund for proper implementation of
project. While collecting information through questionnaire, I had to interact with many people
and I do not have good communication skills. Thus, I was inefficient in making outcomes
through communicating with respondents. There were some respondents who didn't showed
interest in filling the questionnaire and these type of people demotivated me. On the other hand, I
had few respondents who appreciated me and motivated me to work well and reach my goals. In
this research, I formulated effective aims and goals that will help me in analysing my research
topic. I used both kind of research methodologies primary as well as secondary in accomplishing
Political interference
Economic crisis
Social and cultural influences
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
4
5
1
Column D
Yes No
0
1
2
3
4
5
6
7
7
3 Column D
Yes No
0
1
2
3
4
5
6
7
8
8
2
Column D

activities of the project. Sometimes, it was difficult to motivate myself to do work efficiently but
on the whole I enjoyed doing work for my research project. The work was manageable and I
gave my hundred percent while doing my work efficiently. The data analysis and interpretation
is not easy and I made several conclusions for and recommendations according to me. In overall,
I enjoyed the whole process of research conduction and I was optimistic while operating the
project activities.
Recommendations
By the help of above research it is concluded that multinational companies impacts the
business environment of host country (Smith, 2011). Some recommendations for M&S in
operating in other countries are given below-
 This organisation should use latest tools and techniques for operating business activities.
 It is recommended for Marks and Spencer that they must gain knowledge about economic
policies, rules and regulations of other countries in which it is operating. This will help in
making better outcomes.
 The organisation has to adopt culture and social traits of host country so that goals and
objectives can be achieved in a proper manner. This helps in building mutual
understanding within employees and business becomes more profitable.
 Effective trainings and development programs are organised in host country's workplace
for making better operations better and effective (Smith, Binns, and Tushman, 2010).
 Moreover, Marks and Spencer considers various factors while operating at different
countries. The organisation is able to make effective decisions so it must develop skills
and capabilities of it's employees.
CONCLUSION
From the above research, it is concluded that all multinational companies operates in
other countries and for doing successful business they have to follow some regulations and
economic rules. When companies adopts culture and traits of business operations of the country
then it is easy to make profits without any political interference. The companies have to adopt
different taxation, service tax, legal rules for conducting business operations in an appropriate
manner.

REFERENCES
Books and Journals
Ahmed Dine Rabeh, H., Jimenez-Jimenez, D. and Martínez-Costa, M., 2013. Managing
knowledge for a successful competence exploration. Journal of Knowledge
Management. 7(2). pp.195-207.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Den Hertog, P., Van der Aa, W. and De Jong, M. W., 2010. Capabilities for managing service
innovation: towards a conceptual framework. Journal of service Management. 21(4).
pp.490-514.
Eckerson, W. W., 2010. Performance dashboards: measuring, monitoring, and managing your
business. John Wiley & Sons.
Gebauer, H., Edvardsson, B. and Bjurko, M., 2010. The impact of service orientation in
corporate culture on business performance in manufacturing companies. Journal of
Service Management. 21(2). pp.237-259.
Incelli, E., 2013. Managing discourse in intercultural business email interactions: a case study of
a British and Italian business transaction. Journal of Multilingual and Multicultural
Development. 34(6). pp.515-532.
Jones, G. and Lubinski, C., 2012. Managing Political Risk in Global Business: Beiersdorf 1914–
1990. Enterprise & Society. 13(1). pp.85-119.
Kankaanranta, A. and Planken, B., 2010. BELF competence as business knowledge of
internationally operating business professionals. The Journal of Business
Communication (1973). 47(4). pp.380-407.
Lai, J.Y. and Ong, C.S., 2010. Assessing and managing employees for embracing change: A
multiple-item scale to measure employee readiness for e-business. Technovation. 30(1).
pp.76-85.
Lin, A. and Chen, N.C., 2012. Cloud computing as an innovation: Percepetion, attitude, and
adoption. International Journal of Information Management. 32(6). pp.533-540.
Shang, S.S., 2012. Dual strategy for managing user resistance with business integration systems.
Behaviour & Information Technology. 31(9). pp.909-925.
Smith, A.D., 2011. Successfully managing manufacturing supplier integration and procurement
issues: case studies in recessionary environments. International Journal of Procurement
Management. 4(2). pp.121-138.
Smith, W.K., Binns, A. and Tushman, M. L., 2010. Complex business models: Managing
strategic paradoxes simultaneously. Long range planning. 43(2). pp.448-461.
Online
Introducing Research Methods. 2017. [Online]. Available through
:<https://www.skillsyouneed.com/learn/research-methods.html>.

Log Book
Update on weekly research/tasks achieved
Points to consider:
What have you completed?
In this project, a compiled research has been done on topics of the globalisation along with using
the research tools or techniques.
Did you fulfil task requirements?
Yes, in this report all the requirements have been fulfilled.
Are you on track and within deadlines set?
Yes, project has been completed on time and even before deadlines
Did you need to make any changes to your project management plan?
No, there is no as such changes to made in project management plan
Any risks and/or issues identified?
In this research, risk such as break down of the project has been seen which is a major risk, as
because of lack of time management.
Problems encountered
Lack of skills, manpower ineffectiveness and lack of funds has been encountered as major
problems.
New ideas and change of project direction:
In this new idea of globalisation such as checking problem of globalisation on global level has
been found as relevant topics.
What have I learnt about myself this week?
In this week, I learnt about analysis skill, people engagement and doing big research for future
period of time.
Points to consider: Which tasks are priority?
Research methodology and interpretation are two major priorities
Project plan status to date (on, ahead, behind)
This project has completed on date and no ahead date has been taken.
Supervisor comments to address
……………………………………………………………………………………………………..