Essay Marks and Spencers Expansion Into China - 4856 Words

FDA Business and Management level I Working in an International context Marks and Spencer’s Expansion into China Contents Page 1. Introduction 2. Main factors influencing MS to invest so heavily in china 3. Methods of FDI used by MS In China 4. Differences in Business Model from China and Europe 5. Cultural Organisational Risks 6. Future recommendation 7. Bibliography 8. Appendix 1. Introduction The following report will address the expansion options available to Marks and Spencer (MS) in China and Europe. The report will outline a recommended strategy plan for expansion in both areas, as well as give recommendations for future expansions in other countries. Marks and Spencer is one of the leading†¦show more content†¦On 2nd October 2008 MS opened their first store in mainland China, using a direct form of investment. The store in Shanghai is now one of many wholly owned subsidiaries in mainland china. A wholly owned store is when the company has full ownership as oppose to going into business with another investor or retailer abroad. Due to the fact their stores are wholly owned this draws up many advantages for MS such as keeping control of their stores, which is a big factor when abroad as foreign investors could go against your beliefs and damage your reputation however because of this it can be seen as a disadvantage as you may not be experienced in the market and the advice of a partner when doing business abroad could prove to be beneficial. Another major advantage is that profit is maximised as you do not have to split it with any one else. In MS case in China it comes as an added advantage that it is a very attractive country to do business in due to low wages and lower corporation tax if any. However a wholly owned entry strategy faces some disadvantages; MS will be making a significantly large investment this could lead to financial exposure. On top of this by rapidly expanding abroad they are involved in long term commitment and if something goes wrong within a country it can lead to huge losses. MS stores tend to only be wholly owned within the UK and Republic of Ireland, and it comes as a surprise as to whyShow MoreRelatedMarks Spencer s International Strategies2201 Words   |  9 Pagesto which Marks Spencer’s international strategies have succeeded or failed Student Name: Xin Fan Student Number: 200895952 Submission Date: 3rd September 2014 Tutor: Greg Watson Word count: 1940 Contents 1. Introduction 2 2. The history of Marks Spencer’s attempts at internationalization 2 3. The reasons of failure in the past 3 4. Recent international development of Marks Spencer 5 5. Evaluation 7 6. Conclusion 11 Reference 12 1. Introduction Marks SpencerRead MoreMarks Spencer: Competitive Advanteges and Future Stragegies2469 Words   |  10 PagesStrategy Management MARKS SPENCER: COMPETITIVE ADVANTEGES AND FUTURE STRAGEGIES 1 TABLE OF CONTECTS 1. EXECUTIVE SUMMARY†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..3 2. INTRODUCTION†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦3 3. DISCUSSION, ANALYSIS AND FINDINGS†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦...3 4. CONCLUSION†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.6 5. BIBLIOGRAPHY†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦....8 2 1. EXECUTIVE SUMMARY This report will outline Marks and Spencer’s current capabilities by examining the group’s internal environment and competitiveRead MoreCurrent Market Of Apple Company Essay1249 Words   |  5 Pagescompany s ongoing expansion into the consumer electronics market in addition to its traditional focus on personal computers. Apple has about 35,000 employees worldwide and had worldwide annual sales of US$32.48 billion in its fiscal year ending September 29, 2008. 2. Current market of share: Apple Continued to find success with its larger screened iPhone 6 Plus. It shipped a total of 47.5 million units, which is a 22.3% decline from 2015Q1. Much of this came out of Greater China as rapid 4G adoptionRead MoreBusiness Strategies for Marks and Spencer4137 Words   |  17 PagesBUSINESS STRATEGIES FOR MARKS AND SPENCER It is the world of huge competition where business needs to survive and exist. Actually Marks Spencer lies within top 10. It is UK’s premier clothing, food, financial services retailer having the position of top 6. In recent years, retailers have been confronted with intense competition from their counterparts and, a few of them have somehow lost momentum. Marks Spencer’s market share has dropped in 2004 to 11%, from 0.2% (Annual Report 2004). MostlyRead MoreSituation Analysis of International Marketing Environment (Marks and Spencer in Spain)3529 Words   |  15 Pages3.1 An analysis of the marketing environment for Spain 5 3.2 A SWOT analysis of Marks Spencer PLC for Spain 6 4. Recommendations 9 5. Appendices 11 6. Bibliography 20 1. 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He was particularly instructed in the study of nature and the fundamentals of science, neglectingRead MoreEssay about Marks and Spencer6659 Words   |  27 Pages..........37 7. Appendices †¦Ã¢â‚¬ ¦...†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦..40 Chapter 1: Introduction 1.1 Chosen Topic and Its Context: This research and analysis project, analyses the Financial and Business performance of Marks and Spencer Plc which is the holding company of Marks and Spencer group of companies, from the period of March 28th 2007 to March 29th 2009. This project has been carried out for the potential investor and shareholder prospective. 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