Marks and Spencer has had ups and downs in its efforts at overseas expansion. The company is now making another effort to grow its international business. Imagine you are a consultant hired by M&S to review its current internationalization strategy. Referring both to past and current issues with M&S internationalization, and to the current business climate, prepare a report with recommendations to senior management on whether and how it should proceed with internationalization.
Introduction
Internationalisation may be understood to be a way of expanding business or other activities beyond the domestic markets or boundaries. In other words, the growing interests of business houses in international market share and thereby their presence and involvement in markets outside the country of its origin, may be termed as ‘internationalisation.’ Over the past couple of decades in particular, the interest in international business has grown manifold amongst business analysts, researchers, trend watchers and of course, consumers themselves. The case in question is the internationalization of Marks and Spencer, the British retail giant and its failure to make an impact inn the International retail market. If one were to trace backwards into a bit of history and a significant part at that, one would easily recognize that the intent to go beyond the company’s present capacity – whether for economic reasons or political – and explore new vistas of operation, both for profit, control and to consequently impact the existing market;a case in all practicality may be the reference to the thriving British East India Company ( 17th CE ). What had started off as trade between Great Britain and India ( or rather princely states in India ) nearly three centuries ago, changed to the British Empire gaining dominion over not only India, but also almost two thirds of the world. Most certainly, such are not the current intentions of business houses since they operate independently following the regulations of mutually agreed policies of international trade between two or more countries. More so, the world political scenario has changed since the second world war and nations are in the mode of cooperation amongst themselves more than control over others through political or economic power.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Background of Marks and Spencer
- Internationalization and Failure
- Causes and Findings
- Current Plans
- Conclusion and Recommendations
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
The objective of this report is to analyze Marks and Spencer's (M&S) past and present internationalization strategies, considering the current business climate, and provide recommendations to senior management on future international expansion. The report aims to identify the factors contributing to M&S's past failures in international markets and suggest strategies for future success.
- Analysis of M&S's past internationalization efforts and their outcomes.
- Identification of internal and external factors contributing to M&S's past failures.
- Examination of the current business climate and its implications for M&S's international expansion.
- Development of recommendations for a revised internationalization strategy for M&S.
- Emphasis on adapting to changing consumer preferences and market trends.
Zusammenfassung der Kapitel (Chapter Summaries)
Introduction: This chapter introduces the concept of internationalization in business, highlighting the growing interest in international markets. It uses the example of Marks and Spencer (M&S) and its challenges in the international retail market to frame the discussion. The chapter also briefly touches upon the historical context of international business, contrasting the British East India Company's approach with the modern context of international trade and cooperation.
Background of Marks and Spencer: This section provides background information on Marks and Spencer, detailing its establishment and its significant announcement in March 2001 regarding the closure of several European outlets and the sale of its businesses in the US and Japan. The chapter emphasizes the widespread repercussions of these decisions, including protests and legal challenges, which highlighted the company’s abrupt and uncaring actions toward employees. The chapter concludes by underscoring the unexpected downturn of this once-celebrated retailer, raising questions about the theories of internationalization and business failure.
Internationalization and Failure: This chapter examines M&S's international expansion, tracing its entry into Canada in 1972 and subsequent expansion into other European and Asian markets. It highlights the company's lack of a concrete strategy for sustainable business activities and the subsequent decline in market share, sales, and profits. The chapter emphasizes the contrast between M&S's early success and its later struggles in international markets, setting the stage for a deeper investigation into the causes of this failure.
Causes and Findings: This section explores the factors that led to M&S's dramatic change in business climate. It examines both internal and external factors, including changes in consumer preferences, economic cycles, competition, and organizational rigidity. The chapter discusses relevant organizational theories, such as the 'Life Cycle Theory' and 'Wheel of Retailing,' to offer explanations for M&S's failure. It also highlights the inadequacy of M&S's management strategies in adapting to evolving consumer needs and market trends.
Current Plans: This section briefly introduces M&S's current plans for reconstruction under new management, signifying a departure from past strategies. It sets the stage for the recommendations that follow in the next section.
Schlüsselwörter (Keywords)
Marks and Spencer, internationalization, retail failure, organizational strategy, market trends, consumer preferences, international business, business failure, management strategies, globalization, competitive advantage.
Marks & Spencer's Internationalization: A Case Study - FAQ
What is the main topic of this report?
This report analyzes Marks & Spencer's (M&S) past and present internationalization strategies, examining its successes and, more significantly, its failures in international markets. It aims to identify the contributing factors to these failures and offer recommendations for future international expansion.
What are the key themes explored in the report?
The report explores several key themes, including an analysis of M&S's past internationalization efforts and their outcomes; the identification of internal and external factors contributing to past failures; an examination of the current business climate and its implications for M&S; and the development of recommendations for a revised internationalization strategy for M&S, focusing on adapting to changing consumer preferences and market trends.
What is the report's objective?
The objective is to provide senior management at M&S with recommendations for future international expansion. This involves analyzing past failures to inform a more successful future strategy.
What specific aspects of M&S's internationalization are examined?
The report examines M&S's entry into various international markets (including Canada, Europe, and Asia), its subsequent withdrawal from some of these markets, and the reasons behind its success in some areas and failure in others. It also analyzes the company's strategic decisions and their consequences.
What are some of the causes of M&S's international failures identified in the report?
The report investigates both internal factors (such as organizational rigidity and inadequate management strategies) and external factors (such as changes in consumer preferences, economic cycles, and competition) that contributed to M&S's struggles in international markets. Relevant organizational theories, like the 'Life Cycle Theory' and 'Wheel of Retailing,' are applied to provide context and explanations.
What organizational theories are discussed in the report?
The report draws upon the 'Life Cycle Theory' and the 'Wheel of Retailing' to help explain M&S's experiences and offer potential reasons for its successes and failures.
What does the report include besides analysis of M&S's failures?
Besides analyzing past failures, the report also provides chapter summaries, a table of contents, and concludes with recommendations for a revised internationalization strategy for M&S, considering the current business climate and consumer preferences.
What is the significance of M&S's announcement in March 2001?
M&S's March 2001 announcement regarding the closure of several European outlets and the sale of its businesses in the US and Japan is a pivotal event analyzed in the report. It highlights a significant turning point in the company's international trajectory and the negative impact of its decisions on employees and its overall reputation.
What keywords are associated with this report?
Key words associated with this report include: Marks and Spencer, internationalization, retail failure, organizational strategy, market trends, consumer preferences, international business, business failure, management strategies, globalization, and competitive advantage.
Where can I find more detailed information about each chapter?
The report provides summaries of each chapter, including an introduction, background information on Marks & Spencer, a detailed look at internationalization and failure, an analysis of the causes and findings, a brief overview of current plans, and concluding recommendations.
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- alex mueni (Author), 2013, Internationalization strategy for Marks & Spencer, Munich, GRIN Verlag, https://www.grin.com/document/271485
