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.