This unit state that company is making plan to diversify into Chinese market before conducting strategy firm need to understand the path where the company wish to enter.
- Conduct analysis of business environment of Mark and Spencer
- Formulate analytical skill to analyse influence of structures to an individual company
- Provide understanding of marketing analysis within the market strategy.
In a economy, an organisation faces various changes and alteration in which diversify in new market influence directly on business procedure (Nakassis, 2013). For this manager and management of a business organisation, it is require to make effective and impactful strategy while diversified their operational and functional activities in market. Mark and Spencer is a British multinational retailer which was established in the year of 1884. This organisation provide their effective services in clothings, food and home products. Now they diversify their business into Chinese market. For them it is require to analyse business environment and macro-social structures thus affecting the Chinese market place on firm.
Political factors – Chinese political system provide their most important contribution in national stability and economic development. These factors are based on several policies and rules which are regulated by government of a country. For Mark and Spencer, it is require to implement both formal and informal rules in their business procedure that impact on country. Over the past few years, government of China Focused on development of E-commerce to maximise treading activities easily. China has less knowledge regarding framing of the e-commerce, digital signature, customer rights regulation and further electronic agreements. These activities can be beneficial for Mark and Spencer if they provide their own contribution with government of China to expend trading business through electronic medium. Recently, Governmental authorities has priorities local profits and benefits rather than considering toward advancement in whole country.
Economical factors – China is known as most diversified country in terms of economic growth. In this country, different small and medium enterprises are developed that provide their effective and valuable contribution in economy growth. Through this, they maximise customer's purchasing capacity (Ariely and Jones, 2012). These small ventures and each citizen adding more values to enhance level of society. For Mark and Spencer, it can be a claver move to diversify their business in Chinese market. In china labour cost is very low while as they have skilled and capable employees who can provide their own contribution in economy and business development. There can be some factor as high inflation and interest rate. Central bank of china provide a specific limit of funds to commercial banks on nine time higher interest rate. These kind of activities directly impacts on customer's purchasing behaviour and their requirement need.
Social factors – China has a different culture and social aspect that play a most important role in effective changes. These things build fluctuation in customer's demand and their need. For Mark and Spencer, it is require to analyse these factors as customer's demand, trends and changes in requirement. Through this they can easily make appropriate alteration in their products and services. Some others social factors can be customer's lifestyle, their capacity to afford specific cost and emigration. In china, government start new project to increase trading process through e-commerce. This online procedure provide volume in consumer's purchasing behaviour. These activities helps to provide appropriate contribution in economy development and growth. Through this Mark and Spencer easily expand their business in China and build strong connection with customers (Koopmann, 2017). These activities helps to provide them long term benefits and growth.
Technological factors – China is most developing country in the terms of advancement of technology. But they faces major difficulties in development of safe online transactions and business to customers promotional tools. For them it is required to implement effectiveness in their technological process for retail and further businesses. Through this Mark and Spencer can adopt digitalisation in their business procedure while diversify in Chinese market. Through this they can easily build direct connection with new and target customers to getting higher business advantages. These kind of advancement in technology maximise online transaction for safe banking payment. Technology of china is very effective that can implement easily in manufacturing, production and other business procedure (Stevenson and et. al., 2015). Imbalanced technological support can build conflicts between customers product supply and customer's demand in Chinese market.
Environmental factors – Government of china is proposed several initiatives for Nature and environmental protection activities. For this firm requires to provide ecofriendly products to their customers that should not impact negatively in environment of country. In this process firm requires to analyse rules and regulations of country to implement them properly in business firm. This process should have to be regarding disposal of waste material and ethical treatment of animal protection activities. Mark and Spencer requires to analyse environmental issues relevant to reality industry of china to implement them effectively in business procedure.
Legal factors – This factor determine laws and regulation of China that are relevant to the specific organisation and industry. Government of a country regulate different laws and regulations to build legal structure for specific company. For this, Mark and Spencer requires to analyse these factors and its impact to implement them properly in business organisation. China has some specific rules and legislation for organisations and labours, so for this Mark and Spencer requires to follow them to getting higher business advantages easily (Durkheim, 2014). For this firm requires to identify its positive and negative impacts that firm can bear in future. In addition, government requires to provide appropriate information to these business about changes in law and regulations and cost of regulatory compliances.
As per the above report it has been summarised that an organisation requires to analyse business environment and macro-social structures that can impact on business procedure. In a country government and higher authorities regulate different law and legislation