Explanation of complexities faced by the business of multinationals.
- Researching key challenges faced by international business.
- Explanation of ways in which resources are being utilised by businesses operating at a multinational level.
- Demonstration of reflection of own skills.
Every organisation that operated their business operation in competitive market has their own strengths and weaknesses which affect their stability among their rivals as well. The management of an organisation are thus held liable to identify their actual strengths and weaknesses so to improve them through making an effective decisions and strategies. The present study is based on Marks & Spencer, one of the largest retailer company which deals in providing expensive clothing, home and food products to the people of United kingdom and across worldwide. The present study includes strengths and weaknesses of M&S company along with the strategies that will be formulated to gain competitive advantage. Strategic process model has also been discussed under this study (Cairns and et. al., 2010).
Evaluating the internal and external strengths and weaknesses of M&S
M&S company is a multinational UK company which deals in offering clothing, home and food products across worldwide due to which they attain strong brand image in competitive market environment. Therefore, in order to maintain their exist brand image the management are liable to analyse the internal and external strengths and weaknesses so that they are able to take corrective measures in order to improve them so as to achieve competitive advantage as well. Fro this, the management of M&S need to conduct SWOT analyses which are as follows:
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Human resource: As M&S is multinational retailer company who operated their business operation across worldwide. Therefore, to operate business functions in different countries the company has attained large number of employees. According to the international report, it has been observed that the company has attained more than 84,939 employees in 2017 which contribute more efforts in achieving growth and success of an organisation (Charles, Bustard and Black, 2011).
Financial resources: M&S deals in multiple products such as clothing, home and food products due to which they have generate huge revenues every year. According to the report, M&S becomes the first British Retailer who made pre-tax profit of over £1 billion in 1998. The company has generated 9.536.6 million profit during every financial period.
Company's image: M&S is one of largest retailer and responsible business has been easily recognised by the customers of different countries. The company has also been awarded as Top retailer company in the year 2006 which increases their brand image in competitive market.
Poor management: M&S have an ineffective management ho sometimes failed to recognise the changing market trends due to which their sales may affected. As the taste and preferences of customers changes frequently which need to be identified on regular basis and provide quality products and services accordingly. If failed then it will make negative impact on company's customer strengths.
Focused on brand rather than products itself: M&S attained strong brand image in competitive market on the basis of which they provide products and services. Thus, they are not focused on enhancing their quality of their products due to which customers may show less interest in purchasing their products (Docherty and et. a