The paper "Marks and Spencer Group Recent Performance and Development in the International Market" is a good example of a business case study. This report discusses how Marks and Spencer Group recent performance and development in the international market in terms of sales have been affected the recent changes in the international political, economic, legal and the financial environment. It also analyses how these changes affect the company’ s future performance in terms of the sale as well as the interaction with its political, legal, economic as well as the financial environment. The political environment involves the decisions that are made by the government that affects the business operation within the country as well as the international market of the business.
It shall also focus on the effects of the currency risk on the Marks and Spencer Group operation in the market and the strategies that the company intends or rather it uses to mitigate the currency risk (Hughes & O'Neill, 2008). The report further analyses the financial performance of the Mark and Spencer Group in terms of profitability, efficiency as well as liquidity in the current as compared to the previous trading year.
The report shall critically analyse the figures that appear in the financial report of the current year, and compare it to the previous year and give a report about the performance of the company. It shall also compare the company’ s earnings per share as well as the gearing ratios of its competitor. Part one a. The international political environment has greatly influenced the Marks and Spencer Group performance, by allowing the company, to be able to open different stores in countries in Europe.
The European Union declaration of lowering the operation taxes, to the countries that are members have allowed the company to be able to expand its operation in other European countries. These have allowed the company to increase its customer base beyond its local boundaries. This has enabled the company to be able to increase its revenue. The international economic environment has positively impacted on the company performance. The economic stability of the European Union countries in the recent past have allowed or rather enabled the company to be able to expand its operation as well as to increase its revenue.
Due to this economic stability, the company have been able to remain competitive in its operations as well as be able to increase its revenue. The declaration of the European Union of supporting the countries which are in a recession or which are undergoing economic meltdown such as Ukraine, Portugal, Greece as well as Spain, by offering them loans. This has enabled the economy to remain stable and hence to increase its revenue and be able to expand its operation (Mark & Spencer Group, 2013). The company has been able to set up a new structure by separating the business into three major regions that are the Middle East, Asia as well as Europe.
This international strategy is greatly supported by the embracement of the right business model for each and every market that the company is involved in. it is also based on the clear geographical focus where the company is trading in. The company have also appointed different directors to head each region so as to ensure that there is growth in the market.
The company have also ensured that the customers get or have a chance to experience a more consistent brand in all these regions where the company is located. The company is also doing everything so as to ensure that it has integrated its international marketing by using the local country knowledge and expertise as well as the local sourcing. The company has also been able to exploit the opportunities in the existing territories such as Russia, India, China as well as the Middle East so as to have a clear growth in its market.
The company have also been able to concentrate on the region of Shanghai mainly because; these regions have been able to perform very strongly. The company is working with different partners in these regions whereby it has been able to open up seven stores in China as well as twenty-five stores in India. The company has also engaged in the franchise operation as its plan in the international market. It has, therefore, been able to open up new twenty-four stores internationally in partnership with its franchise partners.
These comprise of eight new stores in Russia which are located in key locations such as new cities like Kazan as well as Moscow, five stores in the Middle East in areas such as Cairo in Egypt as well as UAE (Mark & Spencer Group, 2013).
Hughes, O., 2003, Public Management and Administration. Palgrave Macmillan: New York.
Hughes, O., & O'Neill, D., 2008, Globalization and Internationalization. In "Business, Government and Globalization". Palgrave Macmillan: New York.
Mark & Spencer Group, 2013, Annual Report, Royle Print: London.
TESCO PLC, 2013, Annual Report, Salter Baxter Publishers: Oxford.
Tung, L., 2007, International Expansion of Emerging Market Enterprise: A Springboard Perspective. 38 (4), 481-498. doi: 10. 1057/8400275.