International Business Strategies - Essay Example

International business strategies A Strategy refers to a desired plan of action intended to accomplish a mission or vision. Marks and Spencer strategies and plans became put in place to achieve the company’s objective of increasing value of shareholders investment and cementing a lead position in its marketplace (Verbeke 2009, p.10). Marks and Spencer first strategy involved getting the right team for leadership and organization. The company replaced and hired new executives to lead the company forward in its aim to achieve business growth.

The company also hired new heads of teams in different stores and departments who would work to achieve the recovery plan (Bevan 2007, p. 101). The new staff together with the existing staff will complement each other to attain success for the company. After putting in place a new executive team, the company drew a strategic review that gets composed of 3 parts namely: focusing on their business in UK, selling and or closing loss making business, and changing its capital structure. The company’s first strategic plan is to focus their business on the UK; the company intends to begin by transforming its fortunes at their home before making forward strides in the international market.

The company intends to maximize its UK business by selling unique brands attributed to its standards and operate in sectors it’s familiar to and controls a large market. By focusing on the UK, the company seeks to regain its supply chain in order to assist in supplying only what their customers’ want from their suppliers (Bevan 2007, p. 141). The company’s second strategic plan is to get rid off loss making businesses it runs. This allows the company to focus on its UK business and assist in reducing costs incurred in running loss making business.

The third strategic plan employed by Marks and Spencer was to change its capital structure with a view on improving its return on equity. The company undertakes this since shareholders base investment decisions on return of equity. The company intends to implement this by realizing a few assets and offering the shareholders with money in which they can invest again (Craig 2003, p.132). The company’s strategic plan addresses three factors that matter most to customers which are product, people and stores.

The company intends to provide customers with unique, high quality products to customers’ satisfaction (Bevan 2007, p.62). The second matter the plan addresses is the company’s stores, which get refurbished to attract customers and meet their shopping needs. The plan also addresses the company’s staff or people. In appointing new leaders together with the already existing staff, the company hopes the staff will be able to deliver what the customers need. Key factors likely to impact on future prospects A decrease in total sales due to closure of businesses and customers thinking a few businesses were undergoing closure.

This reduces total profitability. Time: For the company to achieve its plan, it will require time. Time becomes required for the implementation of the plan and achievement of goals. For all the necessary changes to be attained and results obtained, the company may need a longer time frame. Attitudes: the company gets crowded with negative comments from the press which may affect the attitudes of employees, customers and investors. Negative comments may keep off customers and investors and also make employees to be unmotivated.

Overcoming problems The company has employed a strong leadership team which will ensure that the implementation of the plan gets achieved, and results obtained by increasing the value of ownership. This team should oversee a rise in total sales and profits of the organization. The company seeks support from its shareholders to maintain a positive attitude which deflects the negative comments pointed towards the organization (Spulber 2007, p.93). Support from employees and customers are also crucial in ensuring the organizations strategic plan succeeds.

The company also seeks for patience from its shareholders to allow for adequate time between implementing the plan and observance of a rise in income. References Bevan, J. ,2007. The rise and fall of Marks & Spencer: and how it rose again. London: Profile. Craig, P. S. ,2003. Strategic management. London: Kogan Page Publishers. Pearl, M. ,2011. Grow Globally. New York: John Wiley & Sons. Spulber, D. F. ,2007. Global competitive strategy. Cambridge: Cambridge University Press. Verbeke, A. ,2009. International Business Strategy.

Cambridge: Cambridge University Press.