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.
Table of Contents
1. Introduction
2. Background of Marks and Spencer
3. Internationalisation and Failure
4. Causes and Findings
5. Current Plans
6. Conclusion and Recommendations
Objectives and Themes
The report aims to evaluate the internationalization strategy of the British retail giant Marks and Spencer (M&S), analyzing the causes of its past failures in overseas markets and providing strategic recommendations for future sustainable growth.
- Historical analysis of M&S international expansion and contraction.
- Evaluation of internal and external factors contributing to organizational decline.
- Assessment of current management strategies and restructuring plans.
- Strategic recommendations for adapting to global consumer demands and market dynamics.
Excerpt from the Book
Causes and Findings
What factors could cause such a dramatic change in the business climate of M&S? A company that ‘has been widely recognized as one of the best managed…as far as management excellence of the firm is concerned, the consensus is almost total in trade, as in government and specialist circles’ (Tse 1985, P.1), seemed to have fallen into a crisis for survival since 1998 (Beven 2001). According to Anheier, 1999; Lawler and Galbraith, 1994 and Miller, 1990, the ‘phenomenon of highly successful companies’ facing bankruptcy was not uncommon. Research and business analysis points towards certain causes for such a situation that M&S found itself nearing the turn of the twenty first century. External factors in the organizational environment of the company could be a plausible reason. In other words, organizational failure due to external factors, not necessarily attributed to managerial inefficiency could well likely be a cause of this phenomenon (Jovanovic and Lach, 1989; Lippman and Rumelt, 1982).
Several other extraneous factors like changes in preferences and tastes of buyers, switching of brands to experiment another, economic cycle of demand, competition from existing companies and new entrants into the market, (Baun and Singh, 1994; frank, 1986; Jovanovic andLach, 1989; Sheppard, 1995), all go a long way to impact a company’s market status. Similarly, organizational density and the natural selection process (Aldrich, 1979; Aldrich and Pfeffer, 1976); technological, process and product innovations (slater and Narver, 1994) and unexpectedly strong ‘environmental jolts’ (Meyer, 1988) are additional factors that influence changes in the existing market trends. The ‘Life Cycle Theory’ further points to “inexorable and irreversible movement toward death” (Boulding, 1950, p 38). This implies that individuals and or institutions all come under the same ‘grim law.’
Summary of Chapters
1. Introduction: Defines the concept of internationalization and contextualizes the historical expansion attempts of Marks and Spencer.
2. Background of Marks and Spencer: Outlines the origins of the company and the significant challenges faced during its international withdrawal in 2001.
3. Internationalisation and Failure: Reviews the chronological expansion of M&S into various international markets and its subsequent decline in performance.
4. Causes and Findings: Analyzes the theoretical reasons behind the organizational failure, including external environmental factors and the 'Wheel of Retailing' theory.
5. Current Plans: Discusses the necessity of moving toward a new, non-British management structure to regain corporate excellence.
6. Conclusion and Recommendations: Provides actionable advice on shifting towards global perspectives, adapting to local cultures, and embracing continuous innovation.
Keywords
Internationalisation, Marks and Spencer, Retail Strategy, Organizational Failure, Market Expansion, Consumer Loyalty, Management Excellence, Strategic Planning, Global Business, Economic Climate, Competitive Advantage, Organizational Decline, Corporate Restructuring.
Frequently Asked Questions
What is the primary focus of this report?
The report examines the failed internationalization efforts of Marks and Spencer and suggests strategic improvements for the company's future growth.
What are the core themes addressed in the text?
The core themes include international business strategy, organizational behavior, reasons for corporate failure, and the importance of adapting to changing consumer markets.
What is the main research question?
The central question is how M&S should proceed with its internationalization efforts and what recommendations can be made to senior management to regain its status as a market leader.
Which scientific methodology is applied?
The analysis utilizes organizational theories, such as the 'Life Cycle Theory' and the 'Wheel of Retailing', to interpret historical data and business performance.
What topics are covered in the main section?
The main sections cover the company's historical background, the specific timeline of its international expansion and contraction, causes for its business downturn, and strategies for recovery.
Which terms best characterize this work?
The work is characterized by terms such as retail management, international business, organizational change, and strategic adaptation.
Why did M&S face such severe criticism in Europe in 2001?
The company faced criticism and legal penalties because it announced massive closures without prior consultation with employees, which was deemed by French authorities to be brutal and unacceptable behavior.
How does the 'Wheel of Retailing' explain the failure of M&S?
The theory suggests that organizations fail when their management strategies cease to match the evolving needs of consumers or changing market trends, leading to a loss of relevance.
What recommendation is given regarding the organizational culture?
The report recommends that M&S must shift away from 'cautious conservatism and arrogant disdain', learn to think in global terms, and adapt to the social and economic conditions of the specific countries where it operates.
- Arbeit zitieren
- alex mueni (Autor:in), 2013, Internationalization strategy for Marks & Spencer, München, GRIN Verlag, https://www.grin.com/document/271485
