Next Plc Business Project: Challenges, Impact and Enhancement

This business project report analyzes Next Plc's operations, focusing on the challenges of cross-border trading, including market expertise, logistics, regulations, standards, marketing, and competition. It also explores considerations for creating a positive social impact, emphasizing the company's unique assets and stakeholder engagement. The report suggests using tools like the Ansoff matrix for business enhancement. It provides recommendations for market research, promotional campaigns, and policy revisions. The report offers a comprehensive overview of Next Plc's global business environment, challenges, and strategies for sustainable growth and positive societal contributions, highlighting the importance of adapting to international market dynamics and maintaining ethical business practices.

Business Project

Table of Contents
Introduction......................................................................................................................................1
Part 1................................................................................................................................................2
Numerous challenges that company need to consider when trading cross border.................2
Why and what considerations should Next Plc consider when trying to create a positive social
impact.....................................................................................................................................5
Part 2................................................................................................................................................9
Using appropriate tools, identify the ways Next Plc can enhance their business...................9
Conclusion.....................................................................................................................................11
References:.....................................................................................................................................13
Books and Journals...............................................................................................................13

Introduction
Business projects are defined as the set of actions taken for a specified project over a period of
time, where several resources are needed to develop and execute the project, which are intended
to achieve a business objectives and goals. These projects can be related with expansion of
business, integration of technology, adoption of management practices etc. Next Plc, renowned
across globe as “next” was originally founded by Joseph Hepworth under the name of Joseph
Hepworth & Son as tailor in 1864 in Leeds, England. In the beginning Hepworth was in
partnership with James Rhodes but the deed get dissolved in the year 1872 and Hepworth alone
expanded the business and became one of the pioneer in the development of retail store chain
(Ishawu and et. al., 2020). It is a public limited company which offers clothing, footwear and
home products to the people of United Kingdom and several countries across globe. Company is
headquartered at Enderby, England, United Kingdom, with a total number of around 700 stores
around globe out of approximately 500 are in UK and the rest are segregated in Asia, Middle
East and Europe. Next Plc is one of the largest clothing retail stores in term of sales in UK
leaving behind Marks and Spencer. Key people in top level of management are Michael Roney
as Chairperson and Simon Wolfson as a Chief executing officer. Next plc serves to the customer
with a total number of talented work forces of approximately 44000 as per the year 2020 and
generating total revenue of more than €3200 million as per the recent data of the year 2021. The
project report contains two part in which first part of the report highlight the various challenges
that Next Plc may across or presently dealing while operating cross borders. Under this the report
will cover several challenges such as political, geographical boundaries, tax regimes, cultural
barriers etc. Furthermore, this part also highlights the key consideration that Next Plc should take
into account while intending to create a positive social impact on people and planet (Alkhalidi
and et. al., 2020). Secondly, another part of the report covers the methods and ways through
which business can enhance their business operations, with the help of theoretical tools and
techniques. While suggesting a way to Next Plc for business enhancement, the report makes use
of Ansoff matrix which will help the company to identify and determine the way which could be
beneficial for them.
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Part 1
Numerous challenges that company need to consider when trading cross border
When business firms attain success and growth in the local market it aspires to extend its
business operations beyond their geographical regions regionally and internationally. There are
several ways through which company can extend its presence in overseas market such as
franchising, licensing, merger, acquisition, export or import or offering products through e-
commerce platforms (Yun and et. al., 2019). Globalisation, technological advancement, global
trends related with removal of trade barriers, attractive business policies and regulations;
increase in foreign direct investment have encourage companies to enter into overseas market
and maintain their presence into several nations and operate successfully. However, there are
several challenges associated with the managing and running business cross borders which are
essential to consider and help in minimise their impact. Below mentioned are the few challenges
that Next Plc face:
 Lack of expertise in local market: One of the significant barrier and challenge which
comes in the way of business firms while operating into foreign markets is lack of
research with regards to the buying patterns and habits, modes of payment and tastes and
preference of customers. Each market is unique with a blend of different customer
demographics, needs, preferences and demands therefore it is necessary for Next plc to
conduct extensive research as the shopping patterns in different nations vary as in some
nations people make purchase only on specials occasion, fairs and festival. Conducting
market research will assist the company in analysing the adaptability rate of customer
cross border, their buying patterns and mode of payment they prefer. For instance people
in UK or USA prefer to pay digitally whereas in Asian countries people make payment in
cash or through cards (Hausberg and Korreck, 2021).
 Shipping and logistics: This is another significant factor which pose a serious challenge
for the companies who are entering into foreign markets. In order to fulfil an order in an
overseas market it is imperative for Next Plc to opt for a suitable shipping and packaging
partner with a wide reach to the local market and attractive shipping rates. Evidently,
shipping and logistics is the key differentiator factor as it determines the credibility,
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viability and commitment of Next Plc to deliver and fulfil order on time. Sometimes it
becomes challenging task for the companies to negotiate the prices with logistics partner
as it directly affects the price of product which either increases the cost burden over
company or make the product expensive for customer. Furthermore, it is essential for
company to opt for a trusted and professional logistic partner to extend the reach in
foreign market and to handle packages with delicately (Keulen and Kroeze, 2019). Constant changes in regulations and increased restrictions: While operating into
foreign market business firms becomes susceptible with the changes taking place in
competitive environment with regards to the change in regulations, norms and policies.
One of the factors that impact on the overseas operations of Next Plc is changes taking
places in political factors. Government intervene and maintains the right conduct of
business through forming laws and legislations such as employment laws, wages laws,
safety and security laws, consumer safety laws and regulations related with trade. Rigid
and complex trade policies of nation may impede Next Plc to enter into the foreign
market along with high tax policy regime and systems also affects the profitability of the
company. Frequent changes in these regulations and policies have a significant impact on
how business firm operates as they have to make several changes in their strategies and
policies to keep the business operations in compliance and relevant in the competitive
market environment (Pinto and Pinto, 2020). Additionally, rising concerns due the impact
of business over environment have brought significant changes into laws and regulations
and governments are putting pressures on business firms to operate and run their business
operations in more sustainable and ethical way. Next Plc has actively participating in
CSR programmes and taking ongoing initiates to manage their business operations in
socially acceptable and legal ways. Lack of harmonised standards and practices: No doubt globalisation has provided the
opportunities for business firms to operate and run business operations in foreign market
but lack of harmonised standards and practices across several nations act as a barrier in
the success and growth of Next Plc. Company is majorly operating in Europe, Asia and
Middle East, while extending business operations in foreign market company needs to
adhere with the standards and practices of other nations. For instance, procedure, norms
and regulation off United Kingdom than that of United States, furthermore, different
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nations have different ways of doing business which can distract the company from its
core values and system. Marketing and local promotions: In order to extend and operate into foreign market
successfully it is essential for the business firms to have detailed and extensive
understanding of the target audience to analyse their demand and needs (Antony and
Gupta, 2019). Next Plc finds it difficult in attracting the target audience for their products
and services as different market and customer segment gets influenced by the several
factors such as culture, festivities, beliefs, norms, specialities of the area etc. In order to
promote the goods and services and establish the brand image of company it is essential
to understand how the target audience gets influenced and like to interact with the
business firm. In order to make communication effective between Next Plc and target
audience it is imperative to understand the target audience, language they use, where they
can be available, methods of communication etc to make promotional and advertisement
campaign effective and successful. Resistance of target audience and intense competition: Entering into a foreign market
comes with several challenges and one of them is intense competition in local market and
high resistance of target audience to adapt the foreign brands and products. There are few
target audience who oppose strictly to product and services offered by multinational firm
and gives preference to the local business and products. Along with that there are already
established and pioneer competitors in the foreign market who have a vast reach of target
audience and dominance over market which impede the growth of Next Plc.
Recommendations: From the above conducted detailed analysis of several challenges and
barriers it is suggested for Next Plc to take into account these challenges to be able to work
successfully and efficiently in foreign market (Stojiljković, 2019). Before entering into marker it
is essential to conduct extensive research on market which should cover the demographics of
customer, culture, buying habits, market trends, and even analysis of competition to determine
competitiveness of a several rivalry firms and availability of substitute products and services. It
is also mandatory for Next Plc to indent the recent trends prevailing in market to be able to
develop new and innovative product so that company may respond strategically to the intense
competition and changing needs of customers. Furthermore, analysing and determining the target
audience will help Next Plc in designing and preparing effective promotional campaigns which
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would attracts and persuade the target audience to but their product and make adaptability
successful. Additionally, before entering into foreign market Next Plc must revise their policy
structure and regimes to be able of comply with the norms and regulations of particular nation
and operate successfully in international market with transparency and right code of conduct
(Gursoy and et. al., 2019).
Why and what considerations should Next Plc consider when trying to create a positive social
impact
Traditional ways of conducting business was concerned with maximising the profit while
selling the products and services to the customer, whereas contemporary business focus more on
the needs of customer and develop products as per their demands. This is not all; business firms
are becoming more conscious towards the people and planet where or with help of whom they
are conducting their business activities. Therefore, social impact can be defined as the impact
people, planet or communities experience as result of actions, activity or project business firm
executes. Next Plc is actively participating in the activities which have positive impact on society
through their actions which in turn helps in building positive and ethical image of company in
the market amongst customer and competitors. There are several key considerations that must be
taken into account by Next Plc while creating a positive social impact on society which are as
follows:
Understanding unique assets of the company: Evidently, resources of Next Plc are its worth
and brand value in the market through which company conducts its business activities (Zhu and
et. al., 2021). After having extensive analysis and in-depth knowledge of the company’s unique
resources, products and services, it becomes easier to find out the way through which company
may contribute and help different communities across globe. Next Plc’s possesses highly skilled
and qualified employees who can serve as volunteers, huge retained earnings which can be
dispersed to mitigate and avoid financial disparities in a society, or may use their extensive range
of products and services that is offered to the customer. All these tools can be used by Next Plc
to serve to the community and create a positive impact through their contributions. For instance,
Next Plc may provide a school uniform to the vulnerable people of society or footwear to those
who are barefoot.
Create social impact while promoting the growth of company: Traditionally business were
designed and focused to generate wealth for stakeholder and keeping their interest first over
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others (Findlay and Moran, 2019). However taking into account contemporary social and
environmental considerations, business are becoming more responsible towards nature and
people as there is significant change in the expectations and needs of customer. Customer’s are
heading towards the businesses who are more socially and environmentally responsible who
align their core values with the values of customer. Next Plc ensures that their business
operations are conducted in a way which has less deteriorating impact over communities where
they operate and contribute towards the positive environmental and social changes in the society
as whole. Due to the increasing demand of ethical and socially acceptable way of doing business,
customers are showing different attitudes in purchase as it driven by their values than a mere
need or desire. Therefore, it is necessary for the Next Plc to rethink and redesign their mission
objectives and integrate social and environmental element into their strategies to generate a
social impact along with generating revenue for the growth and survival of company.
Develop social impact committee: In order to bring most effective and positive impact over a
community it is imperative for Next Plc to build a community of people who are willing and
passionate to contribute towards society (Claypool and Bernstein, 2019). Integrating people from
a community to which company directs their efforts helps in achieving the objective of corporate
social responsibility and have positive impact, as employees are a part of community and
understand the suffering of community very well which in turn encourage them to work
enthusiastically towards the cause and mitigate the impact. Best strategy is to integrate the
employees from diverse background and from different positions.
Forming strategic partnership with non profit organisations: Once the company is aware with
problem or cause, determining strategies and policies for directing the efforts and governing
body as council, the next step for Next Plc is to come into an alliance with the several non profit
organisations or communities who are working actively and closely towards the cause or an
issue. Bringing necessary changes or impact over society can-not be brought overnight as it
requires a deep understanding of knowledge and experience on working on social cause. Next
Plc can attain its goal and bring the positive impact through forming strategic alliance with non
profit organisations as they are expertise in handling world’s most pressing challenges and way
to deal with it (Mourad and et. al., 2020). For instance, Next Plc can collaborate with Oxfam or
other non charitable organisation to support for a social cause.
Initiative taken by Next Plc towards creative positive social impact
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Next Plc is an international leading retailer dealing in clothing, footwear and home products,
and have a significant impact on the several stakeholders through their business operations. With
their approach of social corporate responsibility company strives to have positive and minimal
impact over the stakeholder and community where it operates. Their ways of operating business
is governed by certain code of conduct which ensures that business activities are executed in a
more sustainable and ethical ways (Bozkurt and Gligor, 2019). Next Plc aims to
 Act in socially acceptable and legal manner,
 Recruit and retain responsible and environment conscious workforce,
 Providing support through donations, charities and non profitable organisations, and
 Accountability for their impact over planet and people.
Below mentioned are the initiative taken by next Plc towards Corporate social responsibility:
 Customer and products: Next Plc is committed towards providing beautifully designed,
excellent quality and existing products which are prepared from the materials which are
acquired from safe and responsible sources without having impact over natural resources
and community as whole (Sein, 2020). The raw material used in Next Plc are cotton,
wool, man-made cellulosic, polyester, timber and leather which comes from the world’s
natural resources and is committed towards acquiring resources through known,
responsible and trusted partner. Their ambition is to acquire a raw material in such a way
which respects people, animal and environment in their supply and for this Next Plc is
bringing transparency to trace the materials back to source and using certified routes by
the end of 2025. Environment: Next Plc is making all the efforts towards mitigating the impact of their
business operations on environment through more ethical and sustainable business
practices. The company have is trying to reduce the carbon emission effect while making
the best use of resources and contributing towards conservation of nature and planet
(Fedushko and et. al., 2021). With their initiatives Next Plc has already achieved 35% of
reduction in carbon emission against their plan to reduce 50% absolute Scope 1&2
carbon reduction target by 2030. Furthermore, they has been successfully managed to
reduce approximately 96% of the waste from landfills and contributed towards circular
economy towards their business activities and actions.
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 People: Next Plc considers their talented workforce as a significant asset as they help in
achieving business and sustainable objectives. Company is conscious towards the efforts
made by employees therefore they aim at providing support to the people by showing
concern and responsible for their health and well being (Kim, Ku and Lee, 2020). The
main objective of Next Plc is to ensure that workers working in global supply chain gets
adequate and fair pay along with the providing financial well being support to the
employees who are facing financial challenge primarily due to pandemic. Apart from that
company is well known for its discrimination laws and policy and to justify the fact,
recent data of the report states that around 44% of Board of directors constitute a female
member.
Figure 1 Responsible sourcing strategy, 2020
Source: (Responsible sourcing strategy, 2020)
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Part 2
Using appropriate tools, identify the ways Next Plc can enhance their business
Each and every business aspires to seek to growth and success on a frequent basis based on
their abilities, skills, competencies and experience level (Ruangthammakit and Wongsurawat,
2019). Whether a business is small or large, continuous changes in the competitive environment
encourage companies to make necessary improvements in the business activities to be able to
remain relevant, competitive and profitable. These changes and improvements are essential for
business firms to determine their success and sustainability. Next Plc is a giant clothing,
footwear and home products retailer, which is serving to the needs of people since one and half
century and have extended its operations in overseas market too. Next Plc wants to enhance their
profitability and business as there are several leading players in the market who are challenging
the ability of company to grow. With the help of Ansoff’s matrix, an evaluation can be made on
the strengths on company and areas through which business can be enhanced and reached to new
heights.
Ansoff’s growth matrix
The Ansoff’s matrix was developed by Igor Ansoff and was published in the Harvard review in
the year 1957 under the title of “Strategies for diversification.” The matrix is designed to help
marketers in analysing and identifying the opportunities for enhance their business either through
entering into a new market or introducing a new products and services for the existing markets
(Reis-Marques, Lages and Caminati, 2019). That is why it is sometimes called as product/market
expansion grid which is essential for Next Plc to analyse and determine the strategies for growth
and development. Below mentioned are the four strategies which will help Next Plc tom plan for
growth and analyse the risk associated with each strategies: Market Penetration (Existing market and existing products): The foremost and much
sought after strategies used by the companies is market penetration which is concerned
with gaining new market share or attracting new customer segments with the help of
existing products and services. With the help of this strategy Next Plc makes an effort to
sell more its products and services to the existing, new and customer competitors. The
main focus of this strategy is to increase the customer segment through selling even more
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products and services to the existing customers and maximise the profitability of a
company. Several ways could be adopted by next plc to penetrate into the market such as
lowering the prices of product, enhancing the promotional or advertising campaigns, or
company may acquire small competitor to capture untapped customer segments. There is
low risk associated and small growth opportunities for the company (Rabetino,
Kohtamäki and Federico, 2021). Market development (new markets and existing products): This strategy under Ansoff’s
matrix is related with developing new markets for the existing offering of the company.
Under this strategy, Next Plc can expand its range of products and services to the entirely
new markets by means of going beyond the geographical boundaries or can target new
customer group with different features and attributes. This is the most successful strategy
for the expansion of Next Plc business where company can leverage its technological
potential, skills, expertise and knowledge of the industry to attract new target audience.
Company may cater to the different customer segment with a different preference, taste
and choice, or either enter into domestic market or expand its operations cross border
though making little changes in the products. Product development (existing product, new market): Under this strategy, Next Plc
develops a new product and services with the aim of catering to the changing needs of the
existing customer segment due to rapid changes taking place (Ishawu and et. al., 2020).
While developing a new product it is imperative for conducting an extensive research and
development for the successful of launching and wider adaptability of innovative
products and services. Next Plc may opt for this strategy as it possesses good knowledge
of the market and serving to the needs of people since more than one and half century. Diversification/ Innovation (new markets and new products): Innovation or
diversification is the strategy which is based on developing a new products and services
for the new market customer group. This strategy comes with huge opportunities for
growth however there is extensive amount of risk associated with this strategy. However,
risk can be avoided by making related diversification. This strategy is broken down into
three types of diversification:
Horizontal diversification: This is concerned with development of products which is related
with previous offered product range (Alkhalidi and et. al., 2020).
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