PUSAT PENDIDIKAN PROFESIONAL DAN LANJUTAN

PROGRAM PENDIDIKAN JARAK JAUH (PJJ)

KAMPUS KUALA LUMPUR

SEMESTER JULAI 2016/2017

KAJIAN KES

MARK & SPENCER

BPMM 3053

PEMASARAN ANTARABANGSA

DISEDIAKAN UNTUK

DR AHMAD ZAINAL ABIDIN

DISEDIAKAN OLEH:

NAMA : SITI NUR MURNI BINTI MOKHTAR

NO MATRIK : S225151
PUSAT : UUM, KUALA LUMPUR
1. What are the factors which led M&S to internationalize?

Internationalization of the company was mostly due to the domestic factors

Internally, the company started to feel that it has saturated to domestic market and the
expansion will have to come from overseas.

Externally, some Labor Party members were suggesting nationalizing the leading
domestic retailers.

Internationalization was, therefore, seen as a tool of diversification

2. What is the sequence of country entry and why was that sequence selected?

Sequence of country entry is:

i. Canada (1973)

ii. European Market (1975)

France

Belgium

Spain

Germany

iii. United States (1988)

iv. Far East

Japan

Hong Kong
 This sequence was selected because M&S saw these countries as a developed economy
like their own country. They started with Canada and then with European countries
because people living in these countries having high incomes, good infrastructure and use
of English language. So they thought to expand through these countries.

3. What are the modes of entry used in the various countries and why?

There are many modes of entries used in the various countries are;

i. Exporting and Franchising: These are less risky modes of entry in markets
where market and political risk are high.

ii. Sole-ownership and Acquisition: When there is less knowledge about the culture
and political climate of a country

iii. Joint venture: When there is less knowledge about the culture and political
climate of a country

4. Which host country factors M&S seems to value and which do they dont?

i. M&S seems to value the factors of France as they adopt the store to French life
styles. The French stores offered snugger fit clothing, a wide selection of French
wines, and less British imports.

ii. They also valued the factors of US after buying Brooks Brothers they did not
change the name of the US chain, probably because of their loyal customer base.

iii. They dont value the factors of Canada because they thought that the economy
and infrastructure of Canada is somewhat like UK, which will lead to the closing
down of the stores in Canada.
5. Describe and explain the adaptations to M&S business model in different
countries.

i. Canada: M&S enters in Canada through acquisition of Canadian peoples

Department stores (budget retailer), DiAllairds (older women store), and
Walkers store (modeled after British M&S format).

M&S perceived little cultural distance: they transferred their business formula
almost unchanged from the UK to Canada. They quickly found that even Canada
requires some modifications.

ii. United States: There also they entered through similar strategy they used in
Canada, acquisition. M&S bought Brook Brothers a department store, to market
their clothes. But they did not change the name of the US chain because of their
loyal customer base.

iii. France: M&S entered their in 1975; they decided to adopt the store to French
lifestyles. The French stores offered snugger fit clothing, a wide selection of
French wines, and less British imports.

6. Is M&S multinational or global retailer? Explain and defend your answer.

M&S is a multinational retailer because they are having different strategy for different
countries.

i. In Canada, they customize the products according to the needs of the people.

ii. In France, M&S decided to adopt the store to French lifestyles.

iii. In United States, they did not change the name of the acquired department store
because of their loyal customer base. M&S invested in a new warehouse
management system to increase efficiency.
7. Where is M&S on the internationalization life cycle? Explain how you
formed your answer.

i. M&S is on the maturity stage of internationalization lifecycle in case of European

countries and United States because they are dealing in international market since
1973 and they are having their outlets in most of the European countries.

ii. M&S is on the growing stage of internationalization lifecycle in case of Asian

countries because they are having less number of stores in Asian countries.

8. Should the company standardize more of their international operations?

Compare Europe and Asia.

No, the company should standardize some of their international operations because there
is a difference in the market conditions in Europe and Asia. Most of the European
countries are developed so that the purchasing power of the people is high, good
infrastructure is there. In Asian country, most of the countries are developing so that the
purchasing power of the people is less.

Most of the sourcing of products done by M&S is from UK, so that the price range of
those products will be higher. These products are easily saleable in European countries
because of higher purchasing power of the people. It is necessary for M&S that they will
manufacture or acquire products from the local vendors of an Asian country so the cost of
the product remains low and people will prefer to buy their products in Asian countries.

9. What should be the future strategy of the firm?

i. M&S should acquire top management personnel from the host country. So that
M&S will have better knowledge about the countries scenario.

ii. M&S should increase advertisements, which will help them to be recognized by
the people of a country.
 iii. Decentralization of authority to the employees.

iv. M&S should buy their clothes from the domestic manufacturer so that the cost of
the product decreases or lower down, and new innovations and ideas took place.

10. Evaluate top managements response to the crisis?

i. Job cuts: Company announced to cut 15% of its 1900 managers jobs. Senior
management numbers were cut by 25%. The board has been reduced from 22 to 7.

ii. Price cuts: Many of the clothing lines are discounted by as much as 15%. The
prices of a third af all merchandise have been cut by 2%-3%

iii. Reorganization: M&S was reorganized into three profit centers;

UK retailing

Overseas retailing

Financial services

iv. New marketing department was set up to help create improved

Competitive analysis

Information gathering

Proactive communication

Advertising clarity

Customer targeting

v. The company will attempt to develop a more balanced sourcing policy to its
domestic and international outlets and will review global logistics to streamline
distribution and lower costs.
11. Evaluate M&S cross-cultural skills?

M&S cross-cultural skills are very much correct as they are able to enter in different
countries and able to survive in different situations.

i. Like the case of France, they adopt the store to French lifestyles.

ii. In US, they acquire a department store but they did not change the name of that
store because of its loyal customer base.

iii. In Canada, they customize the product according to the needs of the customers at
later stage but they are not able to survive over there.

iv. The company will attempt to develop a more balanced sourcing policy to its
domestic and international outlets and will review global logistics to streamline
distribution and lower costs.