Next PLC: Analyzing International Trade, Social Impact, and Expansion

This report offers a comprehensive analysis of Next PLC's international trade operations, social impact initiatives, and business expansion strategies. It begins with an introduction to the importance of international business in the current globalized era, emphasizing how companies like Next PLC can enhance market share and build brand value through cross-border transactions. The report then delves into specific considerations for Next PLC when trading across borders, including setting expansion goals, selecting appropriate locations, and evaluating socio-cultural, legal, economic, and environmental factors. It examines the impact of these factors on the company's market entry strategies and operational decisions. Furthermore, the report addresses Next PLC's approach to creating social impact, highlighting ethical considerations and the importance of delivering ethical products and services. The report also provides a critical evaluation of the above-mentioned aspects, emphasizing the need for the organization to consider these factors to enhance its business. Overall, the report provides insights into the complexities of international business and provides a framework for how Next PLC can navigate the global market successfully.

Business and Economics

Table of Contents
INTRODUCTION...........................................................................................................................3
Considerations of Next PLC while trading across borders.........................................................4
Different considerations that Next plc look at when trying to create Social Impact..................9
Critical evaluation of all the above mentioned aspects which organization needs to consider
enhancing their business...........................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
In the current era of globalisation, it is essential for each and every business to operate its
functions in the worldwide market to enhance the market share and customer base. Conducting
trade across boundaries assists the firm in building positive brand value and gain profits for a
long term. International business reflects that organization should possess high capital, skilled
employees and efficient infrastructural facilities so that firm can expand its operations effectively
in the global market (Schudson, 2013). It is significant for businesses to carry out cross border
transactions so that they can enhance their growth and success in regard to improve the business
services and satisfy the needs of customers. Furthermore, organisation involves different ways of
enlarging its business within international boundaries such as joint venture, franchising, licensing
and strategic alliance etc. in order to carry out their operations in an effective manner.
In regard to this, operating business at the international level helps the firm in building
effective brand image in the market and also give tough competition to the rivals. Moreover, it
also assists in providing the best products or services to the consumers so that sales and
profitability of the firm can be improved. Further, it also satisfies the needs of clients by
attracting towards the products or services provided by business (Berger, 2015). Thus, through
internationalization, business can increase its involvement in the international market and can
offer goods to wide range of customers worldwide. Hence, it enables the firm to strengthen its
customer base and thus, provide them appropriate goods at reasonable prices so that competition
can be enhanced. With the help of global presence, productivity and profitability of the firm can
be maximized and it can attain success in the market (Bryman and Bell, 2015).
In the current report, Next plc has been chosen which is a British Multinational Company
producing clothing, footwear and home appliances within the UK and Ireland. It has around 700
stores operating all around the globe. Next is considered as the largest clothing retailer which is
competing with Marks and Spencer in terms of sales within the UK. Main focus of the firm is to
produce products at affordable prices so that they can satisfy the needs of the consumers and can
gain high market share (Goss, 2015). Report also focuses on different areas which have been
selected in regard to Next plc and thus, it carries out the operations of business within
international market. Further, analysis has been drawn on different factors that are considered by
business while creating social impact on society. Hence, it is essential for the firm to deliver
ethical products and services and overcome the availability of unethical practices so that success

can be attained in an effective manner. Another research area that is selected in respect of Next
plc is related to consider different approaches while carrying out the trade across borders. Thus,
it provides options for the firm to expand its market size and capture different areas to attain
desired results (Aral, Dellarocas and Godes, 2013).
Considerations of Next PLC while trading across borders
Trading across borders is directly related to a vital aspect of international trade.
International trade has risen with an ease of globalisation into the markets which in turn serves
the respective firms to easily transact into certain crucial cogitations reflecting an export and
import of goods and services (Yu, 2014). This however subsist with another major deliberation
of enhancing the existent level of market profitability index with a tremendous increase into the
sale of products. It results into some definite consequences of raised revenues into the firm where
Next PLC has been taken into a valid consideration where it is known to be a renowned
multinational firm of Britain. They fundamentally deal into the fashion products of clothings and
footwear brands, etc.
An international trade for Next PLC therefore regarded to be a beneficial prospect to
significantly enhance their existent market position. This will not only result into rendering an
advantageous outcome to the cited entity but will together prove to be a favourable facet for the
regimental bodies of their expanded markets. It is due to some vitally considerate factors of
enlarged business of Next PLC which will momentously encourage varied opportunities of
employment into their nations. This also reflects to their efficiently built in structure of economy
into an appreciated format (Novy, 2013). Such enlargement of business activities however need
various considerations to be adopted by the respective authorities of the quoted firm, as
discoursed into the below subdivisions- Setting of goals in regard to meet the proceedings of expansion- This refers to the
foremost consideration of Next PLC enterprise to primarily determine their stated
business objectives. It is in terms of their further proceedings of enlarging existent base
of production and marketing into some other areas at a global level. This basically
recommends the firm to access a strategic implementation of their stipulated plans by
together scrutinising about the investment criteria into their respectively dilated arenas of
business operations. The cited firms should together incorporate their several associates
to significantly plan about a requisite forum of expansion. It is where they should

together implement another mandate inclusion of various marketing activities in order to
meet their desirable consequences of expansion. This will include varied broadcasting
activities to generate an epochal base of customers into the newer areas of enlargement.
However, the leading concern is about an amalgamated proportion of personnels and
financial resources to initiate into a planned form with some subsequently resultant
activities of attaining the set standard. A designated location- This refers to yet another major concern about selecting an apt
location for expanding the business activities with a relatively better chances of gaining
incomes (Ghemawat, 2013). However, an international expansion together needs to deal
with numerous considerations of dealing with certain dissimilar issues as compared to
the domestic markets of Next PLC. It further results into exemplifying some leading
contents of their differentiated perspectives upon socio-cultural and environmental
aspects, etc. Into which, they together link up with some other vital deliberations of their
distinctly framed political, judicial and economical facets of their markets. It is therefore
important for the quoted entity to primarily evaluate such influential factors of a market
into which they are significantly planning to expand their business operations. Below
ascertained components are in regard to discourse about their related decisions-
◦ Socio-cultural constituent- It is a primary element which can directly impact upon
the business considerations of Next PLC. This is fundamentally due to their vital
existence into the fashion markets which has always referred to be the choice-able
perception of people. It is hence important for the marketing associates of the cited
entity to conduct primary research for determining the taste and preferences of the
residing people into their expanded market. This further link up to relate their
existent services to the ethical and regional beliefs of the consumers for significantly
gratifying their needs and demands into a desirable manner. This together
recommends the marketing people of Next PLC to determine about the traditional
contents and other relational prospects that directly influences the buying behaviour
of their customers (Javalgi, Joseph and LaRosa, 2009). The quoted firm can hereby
implement a segmented market to particularly target a set of individuals in terms of
producing the goods. A demographic segmentation can largely serve the designated
enterprise as per their nature of products and services. This is where the enforced

segmentation will be especially on the basis of their age, gender and level of income,
etc., which in turn makes a direct impact upon their buying considerations.
◦ Legal constituents- It is in relation to determine the regimental activities of their
expansion market that mainly affect their systematic procedures of work into a
specific format. This specifically reflects a completely distinguished formulation
into their marting and distribution proceedings of Next PLC with a changed rate of
their targeted foreign markets. It considerably refers to an altered rate of taxes and
interest, etc., as per the regimental bodies of their enlarged market area (International
marketing, 2015). This indirectly effects the economic statue of their existing
business operation due to either a raised or diminished charges of tariff, etc. Such
governmental influences together states about a strict adherence of operating the
business into a recommended forum. It is where they may have to inculcate a distinct
state of their current policies and other related provisions of working into a legitimate
form. This can hereby related to their present deliberation of EU laws into the
domestic market of UK where they are obliged to pursue a proper and effective
enforcement of the environmental protection enactment by them. However, such
confinements together defines about a segregated formation of certain elements
which especially comes under the political considerations that affects the
international trading of goods and services by Next PLC, as depicted below-
▪ Risk of currency- This refers to a prime element into which the cited firm is
associating their existent orbit of currency with the monetary range of another
country (McCubbrey, 2015). This could however result into certain pessimistic
formulation at the time of any devalued stage into their foreign medium of
exchange.
▪ Investment regulations- A restricted formulation of governmental bodies into
certain countries to invest into a foreign market can together hinder the expansion
program of Next PLC.
▪ Operational restraints- It regards to yet another sort of restrictive formulation by
the respective regimental bodies of the nations where they mandate a strict
control over their operational criteria. This can together make a direct impact

upon the general considerations of the quoted entity where such imposition will
in turn hamper their routine business operations.
▪ Discriminatory limitation- Such discriminatory restrictions are in relation to
confine the marketing activities of Next PLC. This is where the legislative bodies
of certain markets duly imposes a confined state of marketing the products and
services of different nature that doesn't reflect to their ethical deliberations
(Trading across borders, 2015).
◦ Economic constituents- This is another major influential factor that will directly
impact the economic structure of Next PLC. It is where these elements can directly
lead to either an optimistic or pessimistic formulation by their economic
considerations. This mainly refers to a changed state into their existent economic
argumentation where they may need to inculcate a differentiated rate of exchange,
inflation rates, etc., into the newer areas of expansion. It is basically to work upon the
legitimate considerations of their enlarged market structure with an ethical reflection
of operating there. Such modified economic component can together impact their
existing level of wage rate to the employees (Tran and Atkinson, 2002). However,
the other related rates can thereby assist them in acknowledging the prevalent state of
their consumers where a high rate of inflation will diminish their sales of goods and
services and vice versa. Furthermore, it has been depicted that Next PLC only sells
90% of their products into their domestic market of UK which significantly
recommends them for a succeeding expansion into the global markets. This further
refers the marketing team of the cited entity to get a deeper sense of such factors with
a relative comparison with the differentiated structure of each prospective markets. It
is basically to make a successful expansion of business activities where every
country will depict a dissimilar economic state with more potent buyers of upper and
middle level.
◦ Environmental constituents- These factors together plays a vital role into the
operational considerations of Next PLC where they need to work upon some prior
specifications of developing their product into desirable manner. This mainly refers
them to match their goods and services with the prevalent environmental state. Like
for an instance of such influential factors, one can directly relate it to their business

expansion into the arenas of Saudi Arabia. This is where the respective authorities of
the cited entity will hereby need to concern about producing some heat resistant
goods and materials (Hennessey and Jeannet, 2005). However, on comparing it to
their existent business activities in UK where they need to implement a completely
distinct formulation as per its contrary environmental state. It together relates to the
technological facets of the firm into which an advanced version of technical methods.
This will significantly aid them to produce more reliable products with less use of
chemical materials and other relative harmful implications into it. It also refers to the
existence of any natural calamity into the nations where more chances of such
atrocious explosions can together hamper the supply and demand of their respective
goods and services. A sensibly planned approach of expanding into the international markets- This is in
order to commence the above designated forums of expansion where they need to
inculcate certain efficiently framed plans into their newer market arenas. It will
significantly aid them to follow a systematic procedure of enlargement into which they
will primarily scrutinize the overall prospective of their expansion program. This will in
turn serve them to incorporate some justifiable objectives into their leading operations to
attain certain succeeding consequences at the end (McKeown, 2013). It will then help
Next PLC to select a particular market with all desirable aspects of their varied socio-
cultural, economical, political and legal components, etc. This will further serve into
targeting a peculiar segment of customers into their selected market with a subsequent
approach of listing a product that corresponds to their expected preferential levels.
However, this together need a constant implementation of monitoring to control any
uncertain consequential outcome of undesirable results.
 Competitors- Contenders are stated to be yet another influential factors while planning
for an expanded business. It is where on ascertaining the major rivalries of Next PLC,
Zara and Marks and Spencer are designated to be some leading challengers who together
believes to enforce some equivalent formulations, as of the quoted entity. It can however
result into either a positive or negative situation for Next PLC where their prior aim
should be upon acquiring a definitely affirmative resultant (Paliwoda, 2013). For which,
they should inherit a primary assessment of their competitors approach to fundamentally

scrutinize their similar objectives. Such evaluation will significantly help them to
inculcate a differentiated form of business expansion where they can together include
some variant formulations of producing and launching their goods (Papadopoulos and
Heslop, 2014).
Different considerations that Next plc look at when trying to create Social Impact
Society is considered as a crucial stakeholder within the business and thus, it is essential
for the firm to identify their needs and requirements so that these can be fulfilled in an effective
way. It is essential for the business to adopt effective measures such as Corporate Social
Responsibility and different other ethical practices so that firm's operations cannot be affected in
the market. For instance, firm operating in the international market is required to identify various
social policies which need to be considered so that global presence can be strengthened and
operations of the firm will not be affected in the international market (Chen, Chiang and Storey,
2012). There are different cultural, social and legal considerations that affect the relationship
between business and society. For instance, Next plc fails in attending to these considerations
and thus, creates social impacts which diminishes their efficacy can bring serious unintended
consequences. Main focus of the firm should be in relation to improve quality of raw materials
and detection of fraud within the workplace so that it cannot negatively affect the environment.
Moreover, business is required to motivate participants to enhance their collaboration within the
firm in order to improve the quality of goods and thus, create effective social system (Bocken
and et. al., 2014).
Furthermore, Next plc while operating in the international market needs to consider the
social environment so that sustainable development can be made and thus, it will not affect the
society by carrying out the operations (Glasson, Therivel and Chadwick, 2013). Social
environment consists of different beliefs, values, customs, practices, behaviour of society etc.
these are necessary to be considered so that Next can carry out its operations effectively in the
global market. Further, it is essential for the firm to undertake different ethical considerations
such as government norms and regulations, protecting stakeholder’s interest, environment
protection and safety measures etc. in order to attain the best results (Ackermann, 2012).
However, all these factors help the business to create positive impact on the society which assists
them to enter effectively in the international market.
Social impact theory

With the help of such theory, it needs to be implemented to assess the impact of social
policies upon society and thus faced different issues in order to raise awareness. Next plc
requires to assess different areas that impact the social policy and also needs to involve different
factors which have types of sources that are capable of creating forms of social influence (Hair,
2015).
 It involves sources such as manpower that create influence.
 Further, targets such as groups who get socially influenced.
However, impact of these determined social factors is basically developed on the basis of
3 different components such as value, straightness and number of sources of influence. In the
similar way, it has been assessed that Next plc is also going to address different social factors
that influence and maintain the quality of products. This will be done to safeguard the
environment in a better way. However, firm is having major threat that these factors can affect
the buying behaviour and capacity of targeted consumers (Smith, 2014). Therefore, management
of Next plc needs to measure the level of influence to which people or group can affect
capabilities of the firm in terms of production and delivery of products. In accordance to this,
firm is also required to evaluate the level that impacts and develops more effective products in
order to minimize the level of social impacts so that better quality products can be delivered to
the clients.
Following are the different ethical consideration that Next plc should undertake in regard
to create social impact upon society-
 Ethical consideration- It can be assessed that each and every business enterprise is
required to undertake different ethical consideration that means that firm is required to
provide proper quality of products or services so that results can be attained. For instance,
the product by Next plc should not contain any misleading information so that it affects
the knowledge of buyers (Drucker, 2014). However, such type of unethical practices
impacts upon the society and influences the brand image of firm in market. Next plc
operates within clothing, footwear and home appliances etc. and thus it is essential for
firm to adopt ethical consumerism policy so that best information can be provided to
consumers otherwise it results in decreasing the brand value of firm in market. Also,
through carrying out unethical practices it affects Next's position from market and
enhances the sales of competitors. Therefore, in order to maintain proper ethical

considerations within firm it helps management to focus upon providing quality products
or services to clients in order to enhance their satisfaction. Moreover, Next plc needs to
consider different ethical standards such as ISO 9001 2000 so that it reflects the
accountability of quality of products within firm (Bertot, Jaeger and Hansen, 2012).
Hence, consumers can be attracted towards business in order to improve the sales and
profitability of firm in market. Thus, delivering such crucial information to buyers it
helps firm to carry out effective ethical practices and thus sustain competitive edge over
rivals.
 Government rules and regulations- It assesses another crucial factor that helps firm to
enter into global market. Next plc needs to follow different rules and regulations
formulated by the government so it assists firm to maintain proper quality standards as
per ISO standards so that products can be purchased by clients. Through producing
quality products within firm it helps business to increase the number of satisfied clients
and thus attain desired results (Deery, Jago and Fredline, 2012). As per the government
regulations it is essential for every firm entering into international market needs to
formulate CSR programs so that it should not affect the environment. Proper CSR
programs needs to be launched by Next plc management so that they can develop
sustainable environment and thus influence the firm to achieve desired results. Moreover,
does not adopt effective advertisements and promotion strategies and provide false
information regarding the products that it affects the social interest of consumers.
Therefore, it is essential for customers to choose the particular brand and purchase the
products which have good brand image in market (Hetherington, Reiss and Plomin,
2013). Furthermore, Next plc also requires adopting Fair Trade Policy so that they are
liable to carry out best practices within firm at the time of delivering products in
international market. Through following such practices it influences the society and thus
creates adverse impact upon social policies. Thus, through following all such rules and
regulations formulated by the government it helps Next plc to improve the sales and
profitability of firm (Seidman, 2013).
 Responsibilities towards stakeholders- It is essential for Next plc to undertake different
responsibilities towards it stakeholders so that they can be satisfied and thus enhance
their sales and profitability. It involves different stakeholders such as employees,

customers, shareholders and society. Hence, Next plc needs to adopt effective policies so
that they can develop best practices in regard to attain satisfaction (Glasson, Therivel and
Chadwick, 2013). Further, society is considered as an effective stakeholder within firm
and thus, business is required to develop proper responsibilities towards the society by
adopting effective social responsibilities so that it does not affect the environment. Next
plc also uses effective stakeholder theory so that they can fulfil the needs of individual
stakeholder. Business assesses that each and every stakeholder needs to be satisfied so
that they can perform better in regard to attain desired results. Next plc is also required to
consider the social impact and thus make donations and charity in order to carry out
effective CSR activities (Punch, 2013).
 Environmental protection and safety- Additionally, it is another consideration that
affects Next plc at the time of creating social impact. Hence, it is essential for business to
adopt the best environmental protection practices and thus safeguard the environment
from any harmful substances so that company can be differentiated from other
competitors (Berns, 2013). Further, social responsibility also encourages business to
achieve desired results so that long term growth and success can be attained. Moreover, it
helps firm to protect the environment and produce the best quality products or services so
that set targets can be attained. Next plc management is focusing upon producing
environmental friendly products in regard to attract consumers and providing them the
best products. Also, firm adopts innovative technology machines in order to produce the
latest products and thus attain results (Papadopoulos and Heslop, 2014). Here,
government also requires keeping close watch upon the operations of firm so that they
could not produce unethical products and affects the desire of people. Hence, in order to
create positive social impact upon business, firm is required to undertake the best
environmental practices so that health and safety of people could not be affected. Thus,
business requires to fulfil consumers needs and wants so that desired goals can be
attained (Denscombe, 2014).
Critical evaluation of all the above mentioned aspects which organization needs to consider
enhancing their business
As per the view of Wathern (2013), it can be assessed that considering different factors
such as ethical, cultural and social it affects the business policies and procedures. Hence, it is