Shams sherzad 279105 unit 5
External factors and cultural differences
Introduction
In this assignment I will be talking about one business by my choice. In this case I choose to
write about mark and Spencer.
Mark&spencer is a multinational British retail founded in 1884 by Michael marks and
Thomas Spencer in Leeds.
Mark and Spencer M&S have 80,000 employees and have 1463 stores across 57 countries.
M&S is one of the UKs leading retailer today.
Anyways I’m going to explain the external factors that influences mark and Spencer
considering trading internationally.
Then I will be moving in to explain how a business support systems enable mark and Spencer
to trade internationally.
Next I’m going to carry out a situational analysis on 2 countries that mark and Spencer may
consider trading in. For example Germany, which is a great country for mark and Spencer to
trade in. I will come to that later.
However after that I will have to recommend one of those two countries I choose for mark
and Spencer to target for international trade in.
After I’ve done that part I’m going to move on to the second part of the assigment which is
where I explore the cultural differences affecting international businesses.
And analyse how the cultural difference affect international business.
Lastly I will evaluate the impact of cultural differences on international business .
P5. Explain the external factors that influence a selected business considering
trading internationally.
Every business is always affected by something, it can be a business, people,
competitors, external factors, issues, countries etc.
The external factors have a big impact in the success or failure on the business.
, There are many ways factors can impact a business, for example the business
support systems which helps businesses to trade etc, the social media such as
internet have big impact on businesses to and the different type of payment
methods also.
PESTLE is one external that affects international businesse. Which also has an
affect in Mark and Spencer. These 6 factors affect the type of products and
service that mark and Spencer’s offers, their strategies, relationships with their
customers and suppliers and also of its market positioning.
Political factors— The two political factors that are affecting mark and
Spencer is free trade and Brexit. As mark and Spencer is gaining huge
benefits from free trade that has been established between various of
countries. This factor has a positive impact on mark and Spencer.
This factor let mark and Spencer to import foreign products in their
stores for a very good offer. Which is that they are allowed to import
overseas and have that foreign product in their stores for a cheaper price
than it’s usually. At the same time they have a stable profit margin.
Brexit on the other side can impact mark and Spencer as it’s a big
political factor. If the UK leave EU. Brexit will affect many thing such as
the trade regulations, tariffs, job, suppliers etc.
Why Brexit is a problem to mark and Spencer?
That because it they leave the UK it will lead to some numerous loss in
the free trade policies that they have with the EU suppliers and
countries.
It can lead to “higher product cost for end consumers”
There are of course more factors that affect mark and Spencer such as
changes in tax rates, policies, foreign trade regulations, the political
stability of country etc.
These factors affect the business way of operations in other countries.
It can make it harder for businesses to grow and expand overseas as it
will affect the policies and the actions of government. And they won’t be
able to do much about it.
Economic factors— Economic factors impact international businesses as
well. The economic condition of the countries is what the businesses is
impacted by. And depends in which country they also operates in.
External factors and cultural differences
Introduction
In this assignment I will be talking about one business by my choice. In this case I choose to
write about mark and Spencer.
Mark&spencer is a multinational British retail founded in 1884 by Michael marks and
Thomas Spencer in Leeds.
Mark and Spencer M&S have 80,000 employees and have 1463 stores across 57 countries.
M&S is one of the UKs leading retailer today.
Anyways I’m going to explain the external factors that influences mark and Spencer
considering trading internationally.
Then I will be moving in to explain how a business support systems enable mark and Spencer
to trade internationally.
Next I’m going to carry out a situational analysis on 2 countries that mark and Spencer may
consider trading in. For example Germany, which is a great country for mark and Spencer to
trade in. I will come to that later.
However after that I will have to recommend one of those two countries I choose for mark
and Spencer to target for international trade in.
After I’ve done that part I’m going to move on to the second part of the assigment which is
where I explore the cultural differences affecting international businesses.
And analyse how the cultural difference affect international business.
Lastly I will evaluate the impact of cultural differences on international business .
P5. Explain the external factors that influence a selected business considering
trading internationally.
Every business is always affected by something, it can be a business, people,
competitors, external factors, issues, countries etc.
The external factors have a big impact in the success or failure on the business.
, There are many ways factors can impact a business, for example the business
support systems which helps businesses to trade etc, the social media such as
internet have big impact on businesses to and the different type of payment
methods also.
PESTLE is one external that affects international businesse. Which also has an
affect in Mark and Spencer. These 6 factors affect the type of products and
service that mark and Spencer’s offers, their strategies, relationships with their
customers and suppliers and also of its market positioning.
Political factors— The two political factors that are affecting mark and
Spencer is free trade and Brexit. As mark and Spencer is gaining huge
benefits from free trade that has been established between various of
countries. This factor has a positive impact on mark and Spencer.
This factor let mark and Spencer to import foreign products in their
stores for a very good offer. Which is that they are allowed to import
overseas and have that foreign product in their stores for a cheaper price
than it’s usually. At the same time they have a stable profit margin.
Brexit on the other side can impact mark and Spencer as it’s a big
political factor. If the UK leave EU. Brexit will affect many thing such as
the trade regulations, tariffs, job, suppliers etc.
Why Brexit is a problem to mark and Spencer?
That because it they leave the UK it will lead to some numerous loss in
the free trade policies that they have with the EU suppliers and
countries.
It can lead to “higher product cost for end consumers”
There are of course more factors that affect mark and Spencer such as
changes in tax rates, policies, foreign trade regulations, the political
stability of country etc.
These factors affect the business way of operations in other countries.
It can make it harder for businesses to grow and expand overseas as it
will affect the policies and the actions of government. And they won’t be
able to do much about it.
Economic factors— Economic factors impact international businesses as
well. The economic condition of the countries is what the businesses is
impacted by. And depends in which country they also operates in.
