GBS Sample 1Name_ID_GBS Task 1.pdf1 P a g e .docx

GBS Sample 1/Name_ID_GBS Task 1.pdf
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Global Business Strategy
Level 7 - Unit 7.2
International Business
Environment Analysis.
Report – Activity 1
Revised 18 Sept 2015
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Contents
Section Details Page
Activity 1
Introduction Company profile 4
1a International business environment Analysis Techniques 4 –
7
1b Analysis of the micro and macro of Marks & Spencer‟s PLC
7 – 8
1c The impact of international business environment on Marks
& Spencer‟s 8 – 9
1d What does globalization mean for Marks & Spencer‟s? 9 –
10
1a (2) What is the extent of globalization on organizations? 10

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1b (2) Operating structures different organizations in
international markets. 10 – 11
References 12
Introduction
Marks & Spencer PLC was founded in 1884.It has grown from a
single market stall to an
international multi-channel retailer. They sell stylish, high
quality value clothing and home
products as well as food, responsibly sourced from around 3,000
suppliers globally. Their
portfolio covers general merchandise, food, international and
multi-channel across 54
international territories with nearly 86,000 employees.(Marks

and Spencer, 2014).
International business environment Analysis Techniques
Business environment is the combination of internal and
external factors that influence a
company‟s operating situation and the overall business. It is
both Micro and Macro in nature.
Micro or internal factors are controllable and could include
management style, organizational
culture, mission and value statement. Whereas Macro or
external factors are uncontrollable these
http://www.businessdictionary.com/definition/combination.html
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factors are often both dynamic & complex. Business
environment factors can include new
policies, procedures, government changes, improvements in
technology, social and economic
trends(Nonaka, I., and Takeuchi, H, 1995).The reason for
analyzing the business environment is
to highlight opportunities and threats. Knowing the
opportunities and threats to the business
allows the company to set a strong business strategy and

understand better where to invest,
expand, diversify and downscale. There are a number of
different tools we can use to analyse
both the Micro & Marco factors within a business.
Micro can be analysed with Porters 5 forces model.Porter
identified that there are 5 key
forces that influence business that needed to be analysed in
order to develop a competitive
advantage (Porter, 1985). These forces are supplier power,
buyer power, competitive rivalry,
threat of substitution &threat of new entryand are used for
strategic industry analysis. The
positives of using this technique to analyze is that it looks at a
wider range of competitors and it
forces the business to look externally. However this is a
relatively old model that may not be
suitable for the modern organization, as it can be difficult to
come to a conclusion from the
results.
Mendelow‟s matrix or Mendelow‟s stakeholder analysis is a
tool that aids in mapping
stakeholders and their influence in certain areas on a business.

It covers connected stakeholders
that are close to the core of the business; such as customers,
suppliers and distributers. Internal
stakeholders such as staff, management and, finally, external
stakeholders including the local
community, media and government to name a few. The pro‟s of
this model is that it can work
well when trying to decide to take on a new project and it will
highlight all of the stakeholder‟s
interest and their level of power/influence on it, it will identify
possible risks and by knowing the
stakeholders better you‟re more likely to get their by in on new
projects. (Mendelow, A, 1991).
There are negatives of this model, you maynot be able to get all
of the stakeholders on the same
idea therefore risk focusing on a specific stakeholders.
A good tool to use to analysethe micro environment is Porters 4
corners. This tool helps
understand what motivates the competitor and predict a
competitor‟s course of action. It could
highlight likely changes to their strategy, their reaction to
change and different influences where
http://www.businessdictionary.com/definition/improvements.ht

ml
http://www.businessdictionary.com/definition/technology.html
http://www.businessdictionary.com/definition/economic-
trend.html
trend.html
trend.html
http://en.wikipedia.org/wiki/Motivate
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it be industry, governmental or environmental. The model is
split in to two side the “motivation”
which highlights the drivers and the “actions” highlighting the
company‟s current strategy . It
assesses the competitors and understands theirmarket stance and
satisfaction as well as
management assumptions so we can understand what the
competitor assumes about both itself
and the market. The second part is “actions”, highlighting the
company‟s current strategy and
how they are doing in the market. It shows if this strategy is
working and it gives an insight into
how they may do going forward. It shows their capabilities by
analyzing how the competitor

reacts to certain changes and external forces, highlighting their
strengths and weaknesses.
Positives of this model are by understanding the four
components under motivation and actions it
can help predict how a competitor may respond to a given
situation.Porter's four corners model
provides a framework that ties competitor's capabilities to their
assumptions of the competitive
environment and their underlying motivations.(Porter, M.E,
1998).
Just as with Micro factors, Macro factors can also by analyzed
in a number of different ways.
The Pestel model is a simple analysis of an organization‟s
Political, Economic, Social,
Technological, Environmental and Legal environments. For
example, Political factors could be if
it were a government organization or how politically stable to
company is. Economic factors
could include consumer confidence or economic policy.
Demographic changes and income
distribution could be considered Social factors. If you look at
Technological factors it may
include new development and inventions as well as changes in
IT. Employment laws and

competition regulations would fall under Legal factors. Finally
environmental regulations and
environmental protection could be considered in Environmental
factors. This analysis comes
with limitations and can sometimes be over simplified. This
type of analysis needs to be re-
looked at regularly and the data captured is often based on
assumptions. On the other hand it is
simple to use and makes you look outside the box, thereby
developing external thinking when it
comes to strategy. It can also highlight business opportunities.
Another tool we could use is Country risk analysis. This tool
assesses the risk of a particular
country based on different factors and risks, such as financial.
This would assess the financial
risk of the business economy in a particular country for instance
it would highlight if there is
there a currency risk or Inflation risk. Political risk is also a
factor that looks at how the company
http://en.wikipedia.org/wiki/Conceptual_framework
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would operate and the rules around it i.e. would the country
ultimately have power of the
company? Are there any regulations in this area? They would
look at disruptions in operations,
expropriation riskand possibly loss of intellectual property
rights. Country risk analysis can be
done internally or through private reports from companies such
as Control Risks Information
Services, Institutional Investor or Economist Intelligence
Unit,as well as think-tanks. Countries
where this type of analysis has taken place include Congo, Iraq,
Cuba, Australia, Romania and
Canada. The positives of this method is that we can understand
the area and see the risks and
limitations before making the move avoiding possible issues on
the other side it‟s not always 100
% accurate and some of the data will be used to predict what
may happen in an area in the future.
The final tool we would use would be Porter‟s diamond. The
diamond model is an economic
model developed by Michael Porter. The diamond model
suggests that when certain factors

interact with each other it creates conditions where
competitiveness occurs. There are six
conditions to consider. Factor conditions including HR,
Knowledge and Infrastructure. Demand
Conditions is how in demand the business is in the country of
origin and how that demand may
be translated internationally. Competitiveness coming from
related and supporting Industries,
whereby having local suppliers and helping the economy is
preferable. Firm Strategy, Structure
and Rivalryis the way in which companies are created, set
goals, are managed and the presence
of intense rivalry boosting innovation. Chance is a factor as
well asGovernment. Government
can influence business positively and negatively as they set the
rules and standards of sellers.
(Porter, M.E, 1990). The positives of this model is that is can
highlight why companies struggle
to penetrate certain markets, it involves the government and
therefore gets their buy in. on the
downside even if all of the areas are aligned it doesn‟t mean the
company will necessarily be
successful it still depends on the commercial capabilities of the
company and it doesn‟t

incorporate the online and alternative business areas.
Analysis of the micro and macro of Marks & Spencer PLC
To analyze the Micro &Marco (or internal and external)
environments of Marks &
Spencer PLC we will use different analysis tool. To analyse the
Micro we will use Porters 5
forces model to analyze supplier power, buyer power, and
competitive rivalry, threat of
http://en.wikipedia.org/wiki/Economic_model
http://en.wikipedia.org/wiki/Michael_Porter
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substitution and threat of new entry (Porter, 1985). To analyze
the Macro environment of Marks
& SpencerPLC we will use the Pestel model. It is a simple
analysis of an organization‟s Political,
Economic, Social, Technological, Environmental and Legal
environments (Johnson, G., Scholes,
K. and Whittington, R, 2008).

Micro Analysis
Macro Analysis
Element Analysis Details
Supplier Power High/
Opportunity
M&S has over 3,000 products, raw materials and service
suppliers with
current social compliance assessments covering many aspects of
human
rights listed on the Supplier Ethical Data Exchange (SEDEX).
Many
suppliers are from developing countries, which depend on
Western
companies for their contracts. (M&S, 2014).
Buyer Power High/
Threat
The high quantity of buyers means the buyers have the power to
dictate
how and where they shop. With 20 million people who shop at
M&S per
week (M&S, 2014).

Competitive
Rivalry
Medium/
Threat
M&S is a mix of both food & retail, meaning that they are
competing with
a larger variety of businesses, similar stores of mixed channels
as well as
the individual food & retailers. (Forbes, 2013).
Threat of
Substitution
High/
Threat
They are competing with newer and more competitively branded
companies as well as larger international companies.
Threat of New
Entry
Low/
Threat

The marketplace is already saturated and competitive with many
international companies competing for business. (Forbes, 2013).
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Conclusion
M&S is currently in an unattractive position. Based on the
analysis there are more threats to the
company than there are opportunities. This is due to a number
of factors including the economy
and the high level of competition with better branding and more
up to date current trends.
Although they have expanded internationally, as well as
invested heavily in E-commerce due to
the demand of online shopping, the end of year financial
statement shows a loss of 3.9%,
showing consumers haven‟t got their confidence back in the
company.
The impact of international business environment on Marks &
Spencer

Environmental Analysis Impact On The Organization
Political
Instability in some Middle East markets Threat to regional
operations requiring contingency
Instability in Russia Focus effort on marketing activities to
ASEAN countries
Economic
Sluggish growth in some UK Areas Managing closures is
required to reduce costs
Strong European growth, where sales rose by 3.9%. Build on
existing presence to capture share growth
Technological
Consumers habits are changing to digital platforms Invest in
developing better online service
Environmental
Element Analysis Details
Political Opportunity M&S are actively working to make their
products fair trade. Working with other
countries for both selling and for suppliers creates a good
political stance.
Economic Opportunity The UK economy is improving slowly
but people are still struggling from the

recession. The new demand for good quality affordable goods
will help M&S.
This has also seen a large increase in people moving from the
UK meaning higher
demand for home products overseas.
Social Threat The fast paced lives of today mean less people
have time to cook, with people
preferring to eat out. The fashion industries fast paced growth
and ever changing
styles M&S will struggle to keep up on such a large scale.
Technological Opportunity M&S are slowly revamping their
brand, including the introduction of
technology.Some 321 stores are equipped with 1,500 iPad and
40,000 store
employees have the skills to sell from the new website to
maximize selling
opportunities. (Mark &Spenser,2014).
Legal Threat M&S are a public company and under constant
scrutiny. Increasing human rights,
legal rules & regulations can oftenincrease cases against
companies.
Environmental Opportunity Introduction of Plan A in which
M&S highlighted five factors to achieve their

business goal that is climate change, waste, sustainable raw
material, fair
partnership and health. (Mark &Spenser, 2014).
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Increased pressure over waste Streamline supply chain
Increased consumer concern over the environment Monitor
waste use sustainable raw material
Social
Increased concern over CSR Implement new CSR
Community concern over those less fortunate New initiatives
such as clothes recycling
Legal
Public company and under constant scrutiny Must act cautiously
and have a risk plan
Increase in legislation Keep up to date and follow new
legislation
Industry rivalry
Competition is concentrated with large players Differentiation
is key to maintaining share and

performance
Increase in e-commerce means more competition for
market players
New initiative ideas and strategies needed
Threat of new entrants
Potential competition from companies using cheaper
labor and materials
Avoid price-based competition and focus on brand
building
High entry costs continue to constrain new entrants Maintain
production infrastructure in different regions
Threat of substitutes
Increased use of online shopping Increase online presence
Increased use of smaller convenience stores Keep up with
smaller quick stop convenience stores
Power of the supplier
Consumer understanding of Increased need to use local
and Fairtrade suppliers
Use suppliers from developing countries, which depend on

Western companies for their contracts
Power of the buyer
Consumers have increasing information and knowledge
Leverage knowledge as an asset to underline value added
Consumers have much more varied and evolving tastes Need to
keep up with fast changing trends
What does globalization mean for Marks & Spencer?
Globalisation or „Global Strategy‟ is a shortened term that
covers three areas: global,
multinational and international strategies. Essentially, these
three areas refer to those strategies
designed to enable an organisation to achieve its objective of
international expansion (Lynch.R,
2014).
Globalization will bring a mix of benefits, opportunities and
challenges to Marks &Spencer. The
pressure of globalization is beneficial to the company, creating
many opportunities. Emerging
markets and international growth in 2014 was up by 6.2% and
continuing to rise. New
technologies and adapting ecommerce means M&S can set up
flagship stores internationally that

are starting ahead of their UK counterparts. Product variety is a
key factor as there is increased
demand for western products worldwide. Alliances are able to
continue to grow with strong
relations worldwide and new stores and suppliers increasing this
partnership. It will also bring
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challenges. There is pressure in the current climate for
localization, focusing on homegrown
companies and productsusing local materials and suppliers.
Going international will raise
stakeholder expectations which may not be realistic. Increased
government regulation from
different countriescould mean increased safety and
environmental laws. More regulations could
mean possible trade barriers thus raising costs. Expanding in
mature markets where it is saturated
with local and other international companies will create more
competition. International
government may impose additional taxes.

What is the extent of globalization on organizations?
The overall extent of globalization on any company or
organization depends on a number
of factors. It depends on the company‟s mission and visionand
where they aim to be and what
they aim for. It depends on the values and objectives of the
company. The resources and/or
products will be taken in to account as it might not appeal
internationally. Financial and
operational capacity of the company will be a factor and legal
issues or regulations may take a
part or affect the extent of it. e.g. America and Iran. There
aredifferent ways to globalize by
adopting different strategies. The domestic strategy is where a
company would expand to
increase sales, they would not adapt to the local market but
focus on selling a domestic product
overseas i.e. a simple export and sell concept. Multi-domestic
Strategy is run from a head office
but only in principle, with each country appointing a manager
with the power to run and operate
as they see fit with no real input from the main company. A
Transnational Strategy adopts a mix

between global and domestic practices and tries to create a
standard operating model that is
adaptable to each region. Finally, Global Strategy is one of a
truly centralised company i.e. they
act as one. The full business cycle is monitored and centralized
and ensures maximum efficiency
and minimizes repeating issues.
Operating structures different organizations in international
markets.
There are many different structures in organizations and
different reasons they choose to
use a particular one. Each structure comes with its benefits as
well as pitfalls. Functional
structures group together people using similar skills. These
functional groups work side by side,
individually reporting to the Head office. This is good as it
means there are highly specialized
teams making most use of the resources but also means there is
a lack of communication
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between the departments. Divisional structures group together
people by products, customers or
locations. This type of structure can shorten development time
and is great for companies with
multiple divisions. However it is likely that the company will be
duplicating resources. Matrix
structures combine the functional and divisional structures. It
creates relationships between the
departments and divisions as well as more resources being
available to get to a certain outcome.
Team structures use both permanent and temporary teams. It is
good for projects as it means
people work closely with one another and feel supported by the
team but it can often delay
productivity as the whole team needs to agree on the final
outcome and the functionality of it
means they need to meet on a regular basis. Finally, Network
structures extensively use strategic
alliances.This is a great structure to use if the aim is to increase
core effectiveness, but
outsourcing it allows much more resources and flexibility at the
core. This does however leave
the company with less control over the overall operation.

Competitive Intelligence in Business (2013) website (online)
available from
http://intelligence2act.com/porters-four-corners-revisited.htm
accessed Dec 27th 2014
Hennessey. R (2013). British retailers struggle to do it all
(online) available from
http://www.forbes.com/ accessed Dec 27th 2014
Johnson, G., Scholes, K. and Whittington, R. (2008). Exploring
Corporate Strategy, (FT
Prentice-Hall, Ed. 8).
Lynch. R (2014) Golbal Strategy website (online) available
from http://www.global-
strategy.net/what-is-global-strategy/ accessed Dec 27th 2014
Marks and Spencer plc (2014) corporate website (online)
available from
http://corporate.marksandspencer.com/ accessed on Dec 22nd
2014
Marks and Spencer plc (2014) Investor: website (online)
available from

http://corporate.marksandspencer.com/investors/fe827a51c3574
257b5794bc754f6da56
Mendelow, A. (1991) „Stakeholder Mapping‟, Proceedings of
the 2nd International Conference
on Information Systems, Cambridge, MA (Cited in Scholes,
1998).
Nonaka, I., and Takeuchi, H.(1995). The Knowledge-Creating
Company (Oxford Univ. Press).
Porter, M.E. (1985) Competitive advantage: Creating and
sustaining superior performance. New
York: Free Press.
Porter M.E (2008) The Five Competitive Forces that shape
Strategy, Harvard Business
Porter, M.E. (2004). Competitive strategy: techniques for
analyzing industries andcompetitors.
New York; London: Free Press
Porter, M.E. (1998). Competitive advantage: creating and
sustaining superiorperformance. New
York; London: Free Press

Porter, M.E. The competitive advantage of nations. New York:
Free Press. (1990)
http://intelligence2act.com/porters-four-corners-revisited.htm
http://www.forbes.com/
http://www.global-strategy.net/what-is-global-strategy/
http://www.global-strategy.net/what-is-global-strategy/
http://corporate.marksandspencer.com/
http://corporate.marksandspencer.com/investors/fe827a51c3574
257b5794bc754f6da56
Corporate Social Responsibility
On Internationally Operating
Organizations
What is Corporate Social Responsibility?
Obligated socially to
look beyond only the objective of making profit
out-with the
immediate needs of staff, shareholders and or stakeholders

included business
strategies.
Moral and Ethical issues
areas, this could
include the laws, different regions cultures it can also cover
economic
development and political systems.
Obligations
Human Rights

basic human rights we live by are not by law enforced
or respected in
many countries
country where basic
human rights are trampled on?
Corruption
f the problem and
impact of
Corruption across the world. Even in todays society where we
have
regulations in place to prevent this it still occurs
though bribery
and back handed deals usually with government officials
fight corruption
to gain
business
Issues within the environment

al regulations are often enforced.
Environment, most of
the environment is public so who should be responsible for it?
of the commons occurs when a resource held in
common by all,
but owned by no one, is overused by individuals, resulting in its
degradation
Employment practices
equipment to do the work asked
Corporate Strategy & Social And Ethical
Responsibilities

-wide
decisions and actions
that can help an organization achieve its objectives. (Hill and
Jones, 2008). It
takes into account the environment through its structure of
resources and
competencies with the aim of achieving and exceeding the
expectations of
the stakeholder.
pany's moral obligation and
efforts that go
beyond what may be required by regulators or environmental
rules. Its what
companies should look at beyond profit making.
Conflicts between corporate strategy and
ethical and social responsibilities
Shareholder

the law
size
local nation
groups, staff, local population,
consumers
Shareholder v Stakeholder
Carroll’s Corporate Global Social
Responsibility Pyramid
Figure 1: Corporate Global Social Responsibility Pyramid
Pros & Cons
proved innovation, competitiveness

and market positioning
are more aware of the environment
and the full scope of the company
More robust accepted in the community
as it shows an ethical side giving a
“social license” to operate
you in society it makes for higher profit
There is no one directly responsible for
CSR as no one in the company is
accountable directly to society
Legislation and Guidance

These are regulations and obligations required by law that
companies
must implement and abide by.
Are what companies are influenced to do in order to go beyond
legal
requirements
Legislation and Guidance relating to
Environmental CSR
Environment Act 1995
Considering land use/biodiversity
Reducing packaging/improve
labeling
Marketplace CSR

Sale of Goods Act 1979
Consumer Protection 1987
Promoting diversity. For example, by
promoting positive role models
Engaging in cause-related marketing
Legislation and Guidance relating to
Community CSR
National Parks and Access to the
Countryside Act 1949
The Conservation of Habitats and
Species Regulations 2010
Loaning facilities and assets

Liaising with local communities
Workplace CSR
Employment Protection Act 1978
The National Minimum Wage Act, 1998
Respecting rights to free assembly and
collective bargaining
Listening to and involving employees
Characteristics of Socially Responsible
Companies
- don't mislead.
money to charities.

References
Three-Dimensional
Conceptual Model of Corporate Social Performance
Practice:
Strengthening implementation of corporate social responsibility
in global
supply chains
Hill &Jones,
South-Western College Publishing
al Business
Strategy. Lecture
conducted from Btec, Abu Dhabi.UAE
-Hill
Companies, Inc
http://www.amazon.com/s/ref=ntt_athr_dp_sr_1?_encoding=UT
F8&sort=relevancerank&search-alias=books&field-
author=Charles Hill

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Level 7 - Unit 7.2
By Xxx
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Evaluation of the International
Operations of Marks & Spencer PLC
Report
Revised : 18
th
Sept, 2015
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Contents
Details Page
Company profile 4
Strategic direction 4
Business strategy 4
Organizational structure 5
International operations 5
International performance 6
Future challenges 6
References 7

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Company profile
Marks & Spencer is now a multi-channel retailer. It was started
by Mark Marks and Thomas
Spencer. It started as a single stall in Kirkgate Market in Leeds
in 1884. Over the 130 years it has
been in operation is has grown in to multimillion GBP business
operating in 50 territories
worldwide with 86,000 employees. In 1926 Marks & Spencer
became a publicly listed
company. From here it has slowly started to diversify, adding a
food department in 1931. The
1930’s saw the introduction of cafés and the opening of their
own research lab. Marks & Spencer
went international with their first stores in Europe in 1975.
They continued to grow over the
coming years, opening up in Hong Kong in 1988 - the same year
they acquired several American
companies including Brooks Brothers & Kings Supermarkets.

Strategic direction
Marks & Spencer’s Strategic direction is expansion by market
development. Its aim is to expand
and open up in new locations and countries using the existing
products and services to increase
market share. Looking at new areas geographically, once set up
they will make changes to suit
the local market and consumers. Marks & Spencer has already
successfully expanded into India,
Russia, China, the Middle East and Western Europe. This type
of strategy is great for expanding,
growing market share and increasing competitive rivalry. It can
however sometimes lead to
alienation of current consumers.
Business strategy
Marks & Spencer has a mix of focused & differentiated business
strategy, concentrating on
product differentiation supplying a higher quality of product
that was produced locally so at a
higher cost. They have recently changed to a new low cost
strategy that they have named “Plan
A”. Plan A has highlighted five factors to achieve their business
goal they are climate change,

waste, sustainable raw material, fair partnership and health.
(Mark & Spenser, 2014). The plan
also highlights their aim to offer better quality products at a
competitive price. The introduction
of this strategy has already increased sales by 4.2 %. This low
cost strategy is one where the
company and its operations are run from a very well put
together corporate strategy; meaning
that the internal operations, functions, departments and business
units are running with the
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highest efficiency. Market development and procurement are a
constant in business strategy. To
achieve the best market knowledge and the lowest cost.
Organizational structure
Marks & Spencer have adopted a functional or flat organization
structure. This type of
structure works well for the company as it ensures specialized
groups of people in each area
making the most of the pool of resources. It has limited levels
of management so allows more

direct dialog between employees and management. It allows
each group to have control of their
area, having both responsibility and accountability. A flat
structure means the whole organization
work with ease and less resistance. This works well, however
due to Marks & Spencer’s plans to
expand and to continue to grow international this organizational
structure will need to be looked
at as it is not suitable. They need to look at a geographical
divisional structure which will allow
the company to adapt to the local needs of that area. It will
make expanding in to new
geographical areas easier.
International operations
Value chain
activity
Analysis Details
Primary:
Inbound
logistics
Strength Successfully launched the new national e-commerce

distribution center. This
continues to focus on the implementation of a single-tier
network anddistribution
center. This is reflected on international markets also.
Operations Strength Continue to develop innovative packaging
aimed at reducing their footprint.
Although not manufacturing the products themselves they are
ensuring the best
practice
Outbound
logistics
Strength They have built the foundations of a robust
infrastructure through new IT
systems and logistics developments. As they start to reshape the
distribution
network to a single-tier network.
Marketing and
Sales
Strength M&S have a strong marketing campaign. They have re-
branded and launched
Their marketing today is both interactive and multifaceted

Service Strength Increased number of retail staff has resulted in
improved customer service.
M&S actively prioritized core customers and monitor customer
service with
regular review of customer reaction to products, as well as in-
store and online
experience through focus groups and in-house Customer Insight
Units
Secondary:
Procurement Strength M&S has over 3,000 products, raw
material and service suppliers with current
social compliance assessments covering many aspects of human
rights listed on
the Supplier Ethical Data Exchange (SEDEX). Many suppliers
are from
developing countries, which depend on Western companies for
their contracts.
(M&S, 2014).
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International performance
Marks and Spencer have been successful internationally.
International sales rose in 2014 by
6.2% to £1.2bn, driven by strong growth in India, Russia,
China, the Middle East and Western
Europe. In Europe sales rose by 3.9%, with the Netherlands and
France being the focus areas.
Existing strategic relations continue to improve. Sales in the
Middle East grew by 2.6%, with
stores opening in Lebanon and Cairo. Some areas
internationally weren’t as successful, e.g.
China where they needed to refocus strategy on the main
flagship stores due to poor sales. In
Ireland the decision was made to close four stores. The
successful international growth comes
from all areas of the Marks and Spenser’s portfolio of Food,
Retail and general merchandise.
The international team is structured in a way as to give a better
understanding of the local
markets which enables to focus products depended on the area.
Future challenges
Main future challenges that Marks and Spencer will face include
the reduction in demand for

food. E-commerce and online shopping is growing significantly
with consumers preferring the
ease of this method. They will have to respond to the dynamic
environment within which they
operate and their strategy to become a truly international, multi-
channel retailer. Consumers are
more individual and fashion focused, meaning retail demand is
higher and they need to keep up
with these fast paced evolving market trends. Increased
competition from other competitive high
street retailers will always be a challage. There is always the
risk of global recession, so M&S
will need to have a strong risk strategy and contingency plan in
place.
Technology
development.
Strength M&S are slowly revamping their brand, including the
introduction of technology.
Some 321 stores are equipped with 1,500 iPad and 40,000 store
employees have
the skills to sell from the new website to maximize selling
opportunities. (Mark
& Spenser, 2014).

Human
resource
management
Strength M&S have restructured their organization to be more
flat and specialized. This
empowers employees and increases productivity
General
Administration
Strength Top management has recent restructured and it has put
in to place plans to grow
their staff with them through training & development. M&S are
Implementing
management training plans for all levels from graduate program
to onsite
training.
7 | P a g e
References

Marks and Spencer plc (2014) corporate website (online)
available from
http://corporate.marksandspencer.com/ accessed on Dec 22nd
2014
http://corporate.marksandspencer.com/
GBS Sample 2/Name - ID GBS Task 1.pdf
1
Statement and Confirmation of Own Work
StudentDeclaration
IhavereadandunderstoodATHE Assignment Submission
guidelines and AcademicDishonesty
andPlagiarism policies.
I canconfirmthefollowingdetails:
ID No:
Name:

Programme Title: ATHE Level 7 Diploma in Strategic
Management
Course Title: Global Business Strategy
Subject tutor:
Assignment No:
EnrolmentDate:
Due Date:
I declare that the work submitted is my own work
andthatIhavenotplagiarisedanypartofit.
Ihavealsonoted theassessment criteriaandpass mark
forassignments.
Signed:
2

ATHE Level 7 Diploma in Strategic Management
Submitted by: Xxx
3
Table of Contents
Section 1: Business Report – Analysis of International Business
Environment 1
1.1Introduction……………………………...................................
............................... 2
1.2Layers of Business
Environment………………………………………………… 2
1.3Techniques to Analyze International Business
Environment………………….. 3

1.3.1 Macro
Environment…………………………………………………………
…. 3
PESTEL
Analysis…………………………………………………………… 3
Porter’s
Diamond…………………………………………………………… 4
1.3.2Micro
Environment…………………………………………………………
… 4
Porter’s 5
Forces……………………………………………………………. 5
Mendelow’s Stakeholder
Analysis…………………………………………. 5
1.4Analysis of Micro & Macro Environment on
Nissan………………………….. 6
1.4.1PESTEL Analysis of
Nissan………………………………………………….. 6
1.4.2Porter’s 5 Forces Analysis of Nissan
………………………………………… 8
1.5Impact of International Business Environment on
Nissan……………………. 9
1.6Benefits, Opportunities and Challenges of Globalization on
Nissan………….. 11
1.7Extend of Globalization on

Organizations……………………………………… 12
1.7.1Domestic
Strategy……………………………………………………………..
12
1.7.2Multi- Domestic
Strategy……………………………………………………... 12
1.7.3Global
Strategy……………………………………………………………….
.. 13
1.7.4Transnational
Strategy………………………………………………………… 13
1.8Structures of Organizations Operating in International
Markets…………….. 13
1.8.1Functional
Structure…………………………………………………………...
14
1.8.2Divisional
Structure……………………………………………………………
14
1.8.3Product Divisional
Structure………………………………………………….. 14
1.8.4Geographic Divisional
Structure……………………………………………… 15
1.8.5Matrix
Structure………………………………………………………………
. 16

1.8.6Network
Structure……………………………………………………………..
17
1.9Conclusion………………………………………………………
…………………. 17
4
Section 1
Report
Rev.1
Date 15 – Sept - 2015
Analysis of International Business
Environment

5
1.1 Introduction
International business has grown rapidly in the recent years
because of technological
advancements, cross border movements, liberal government
rules and policies etc. and
consists of all commercial transactions between two or more
countries.This report
analyses globalization and its impact on business environment.
Nissan Motor
Corporation, a multinational automobile company is selected to
carry on the study.
Nissan Motor Co. Ltd. was founded in 1933 in Yokohama City,
Japan. At present, around
the world, Nissan has its manufacturing units in 20 countries
including Japan and their
products and services are available in more than 160 countries
around the globe. Nissan
Motor Co. Ltd. has a portfolio of three brands- Nissan, Infiniti
and Datsun, which are

marketed in all major markets in the world. In 1989, in North
America, Nissan launched
Infiniti as anexceptional brand. In 2012, the new global
headquarters for Infiniti was
opened in Hong Kong with sales operations in over 50
countries. Datsun brand was re-
launched to the world in 2012 (Nissan Motor Corporation
Annual Report, 2014).
1.2 Layers of the business environment
Any business organization needs to operate in an environment.
A business environment
comprises of all the external and internal factors that effects an
organization’s operating
conditions like, competitors, suppliers, government entities,
owners, social, economic and
market trends etc. (Daniels, Radebaugh, Sullivan, 2009). In
order to analyze the
environment, we have to understand the different levels or
layers in which a firm
operates.
Figure (i): Layers of business environment (Johnson et al,2008)

6
The Macro-Environment consists of the external environmental
factors that impact an
organization’s activities.Industry consists of organizations
doing the same business.
Competitors and markets are the immediate layers surrounding
the organization. The
concept of strategic groups can help identify an organization’s
close and distant
competitors. Then there is the Organization itself. (Johnson,
Scholes, Whittington, 2008).
1.3 Techniques to analyze international business environment
For an organization to operate successfully, it needs to identify
and analyze its
environments and resources and devise a strategy accordingly.
There are two types of business environments namely Macro
environment or external
environment and Micro environment or internal environment.
1.3.1 Macro Environment
The macro environment represents forces that impact all firms
across all industries.Two

ways by which the Macro-Environment of a business can be
examined are by using the
PESTEL analysis technique and Porter’s Diamond analysis
technique.
The PESTEL analysis is a structure that classifies the Macro-
environmental influences
as Political, Economic, Social, Technological, Environmental
and Legal (Johnson et al,
2008).
The Organization
Political factors
o Attitude of government
authorities
o Political stability or
instability
Economic Factors
o Growth of the economy
o Monetary policies like

inflation, interest rates
etc.
Legal factors
o Employment laws
o Safety regulations
Social factors
o Changes in lifestyle
o Size and structure of
workforce
Environmental factors
o Environmental
regulations
o Environmental
contaminants
Technological factors
o Changes in information
technology

o New developments and
discoveries
Figure (ii): PESTEL
Analysis(Johnson et al,2008)
7
Advantages of PESTEL Analysis Disadvantages of PESTEL
Analysis
analysis
threats to the organization
egular basis
to ensure effectiveness
assumptions that proves to be
unsupported
Table (i): Advantages and disadvantages of PESTEL Analysis
Porter’s Diamond proposes that there are indispensable
explanationsas to why some

countriesare more competitive than other countries and why is
that a few industries in
these countries more competitive than others(Johnson, Scholes,
Whittington, 2005).
Factor conditions: includes skilled resources, capital resources
technology base etc.
Demand conditions: the more demanding local market is, the
more it hints to national
gain.
Related and supporting industries: when a firm depends on the
supporting competitive
local suppliers, it can enjoy more cost effective and advanced
inputs.
Firm strategy, structure and rivalry: these often differ among
nations. Domestic rivalry
brings in the best of a firm as they are under pressure to
improve and innovate, thus
customers benefitting from getting better quality products and
services at lower costs.
The role of the government comes in to influence these four
factor determinants
positively or negatively(Johnson et al, 2005)
Advantages of Porter’s Diamond Disadvantages of Porter’s

Diamond
extent to which they can build on
home based advantage
globally competitive position
location advantages of other nations
are limited
resources
Table (ii): Advantages and disadvantages of Porter’s Diamond
1.3.2 Micro Environment
The micro environment represents all the factors that have
direct influence on an
organization’s performance and decision making liberty and
these factors comprise of the
organization’s customers, suppliers, competitors, and the public
(Johnson et al, 2008).
8

Porter’s 5 forces analysis was developed for conducting
strategic industry analysis. In
this framework, one can analyze an organization’s competitive
structure by looking at the
5 forces of competition that influence profit potential(Johnson
et al, 2005).
Table (iii): Advantages and disadvantages of Porter’s 5 Forces
Mendelow’s Stakeholder Analysisis used to identify and
investigate the expectations or
interest and power of stakeholders, who are the individuals or
groups who has an
influence or is influenced by a business organization. (Johnson
et al, 2008)
Under Mendelow’s Stakeholder analysis, these stakeholders are
categorized into three.
Competetive
Rivalry
Threat of
new entry
into an
industry

Power of
buyers
Threat of
substitutes
to industry
products
and services
Power of
suppliers
Advantages of Porter’s 5 Forces Disadvantages of Porter’s 5
Forces
vides useful understanding
about the forces at work in the
organization
competitive advantage, better
productivity and faster time to
market
be different in each segments of the
same organization
suppliers and competitors never

interact with and influence each
other
Threat of new entry:
Competitive Rivalry:
ty differences
Power of suppliers:
Power of buyers:
Threat of substitution:
Figure (iii): Porter’s 5 Forces (Johnson et al, 2008)

9
Connected stakeholders,are the organization’s customers,
suppliers, and distributors etc.
who are closely related to the functions of the organization.
Employees and management
forms the internal stakeholders who work inside the
organization.External stakeholders
are the government entities, environment groups, media,
investors, and local communities
etc. who are indirectly affected by the organization (Johnson et
al, 2008).
Table (iv): Advantages and disadvantages of Mendelow’s
Stakeholder Analysis
1.4 Analysis of Micro and Macro Environments on Nissan
1.4.1PESTEL Analysis of Nissan
The PESTEL Analysis of Nissan below has identified certain
opportunities which Nissan

needs to capitalize in order to gain competitive advantage and
as a result increase the
market share. However, the threats that have been recognized
will have to be carefully
studied and appropriate strategies devised to mitigate the impact
of these threats.
The details of Nissan’s PESTEL Analysis are mentioned below:
Political
Analysis: Threat
Nissan has manufacturing units in 20 countries around the world
and therefore it needs to
deal with different political factors influencing its business
operations. Some of the
reasons why Nissan sees the political factors as a threat are:
local products. E.g.
Proton in Malaysia, Tata in India etc.
automobile industry as
a whole, like the increase in taxes.
Advantages of Mendelow’s Stakeholder

Analysis
Disadvantages of Mendelow’s
Stakeholder Analysis
all the stakeholders who are related
to the organization
new opportunities during
implementation of a project
regular basis or continuously since
the stakeholders may change
rapidly
stakeholder is missing
10
Economic
Analysis: Opportunity

The economic factors like global economic growth, business
setting in the industry etc.
are considered as opportunity for Nissan. Few of those
economic factors influencing
Nissan are:
vements in US markets
2.4% as matchedto
a 1.8% rise in the global market in Europe and Russia (Nissan
Annual Report
2014)
Social
Analysis: Threat
Social factors also have an impact on automobile industry.
These factors are considered a
threat for Nissan and they are:
outlook towards vehicles
has changed from car being seen as a status symbol to focusing
on features like
fuel efficiency, low emission cars etc.

vehicles
Technology
Nissan is constantly developing its technologies to make its
vehicles better, more
economical and reasonably priced for its customers. Nissan
considers technology as an
opportunity in its environment and below are few examples of
how far Nissan has
exceeded in technology and innovation.
First automakers to road-test autonomous drive vehicles.
-produced zero
emission vehicles and
the best-selling electric vehicle with 45% market share (Nissan
Annual Report,
2014).
Environment

11
Customers these days are very much aware of the environmental
effects of harmful
emissions from vehicles and this has put pressure on automobile
manufacturers to
produce vehicles which are eco-friendly and fuel efficient.
Controls on carbon emission,
eco-friendly and fuel efficient cars are the advantages of
Nissan. Theseenvironmental
factors are considered an opportunity by Nissan as customers
consider these as an
important feature while purchasing vehicles.
Legal
Analysis: Threat
Legal factors such as below are considered a threat to Nissan.
demand
1.4.2 Porters 5 Forces Analysis of Nissan

Porters 5 Forces helps to evaluate the attractiveness of
abusiness by examining various
threats like the treat of new entry, substitutes, buyers, suppliers
and degree of rivalry
between competitors (Johnson et al, 2008). The Porters 5 Forces
for Nissan mentioned
below analyses the level of threat for each factor.
Substitutes
Analysis: Low Threat
about fuel emissions
and thereby
encouraging to use public transport
Buyers
Analysis: Moderate Threat
increase in information
and knowledge about products in the same category
hing costs are decreasing because of intense
competition

Suppliers
Analysis: High Threat
12
they choose the right
suppliers and right costs
Competitors
Analysis: Moderate Threat
features, luxury etc.
Ducati in bike
manufacturing proves to be very competitive
New Entry
Analysis: Low Threat

vehicles like the hybrid
cars. Although Nissan has developed in the same category,
Toyota’s “PRIUS”
hybrid cars holds a good share in the market
1.5 Impact of International Business Environment on Nissan
Like any organization functioning in an international
environment, Nissan too faces both
opportunities and threats due to the nature of its operations
globally.
Environment
-emission technology is an
advantage for Nissan to
focus on low CO2 emissions and fuel efficient vehicles e.g.
Nissan’s LEAF, e-
NV200
Competitors
jointly decided to set up
electric vehicle charging infrastructure in Japan

electric vehicles.
Buyers
13
ensure suitable models
for each territory or segment are offered.
China where the
company believes its most important market is currently and an
opportunity for
Nissan to increase sales in these regions.
Suppliers
manufacturing their products
tial process in selecting suppliers
and influences

supplier’s profits and businesses directly
Technology
-emission technology
-test autonomous drive vehicles
Political
Analysis: Threat
Government awareness and development of rules and
regulations to use public
transport in developing countries
Nissan’s sales in
China were obstructed by the islands clash (Nissan Annual
Report 2014)
Economic
Analysis: Threat
vehicles

in consumers opting
out of buying cars or buy cheaper substitutes
New Entrants
Analysis: Threat
vehicles poses a
threat to Nissan
14
Substitutes
Analysis: Threat
s on using public transport awareness
1.6 Benefits, Opportunities and Challenges of Globalization on
Nissan
“Globalization refers to the broadening set of interdependent

relationships among people
from different parts if the works that happens to be divided into
nations, sometimes
referred to the integration of world economies through the
reduction of barriers to the
movement of trade, capital, technology and people”. (Daniels et
al, 2009:48)
Globalization has a great impact on automobile industry. Nissan
has set a good model of
showing the world what globalization can get to an
organization.
In 1990s, Nissan was almost at the edge of bankruptcy, when in
1999; Renault came up
with the take-over offer to Nissan. The current CEO of Nissan,
Carlos Ghosn was sent to
Nissan by the Chairman of Renault to reorganize the company
and make it profitable
again. Within one year into Carlo’s change plan, Nissan was
back profitable. He brought
in noticeable modifications like changing the senior
management of Nissan, closing down
5 of Nissan’s plants, laying off people from the manufacturing
units and instead brought

small units in South and North America were labor was cheap.
He diversified the staff to
bring in people with various backgrounds in culture, nationality,
gender and education.
Benefits of globalization on Nissan
Diversification- ensures to meet the diverse needs of
customers
- design anywhere, make anywhere, sell
anaywhere
- invest in R&D. e.g. development of Nissan’s
LEAF electrical vehicle
15
Opportunities of globalization on Nissan

vehicles
ssociations
electric vehicles
Challenges of globalization on Nissan
wing consumer demands
electric vehicles less
attractive to customers
1.7 Extend of Globalization on Organizations
The extend of globalization of an organization depends on the
organization’s mission,
objectives or values, resources used, the end products, rules and
regulations governing

the organization etc.
Businesses whether big or small can have different strategies in
place. Four basic
strategies that organizations follow to decide on how to run
their operations thus attaining
their objectives and dealing with challenges are mentioned
below:
1.7.1 Domestic Strategy
The organization pursuing domestic strategy assesses
international businesses distinct
from its domestic business.
market and not to be
traded in foreign markets
1.7.2 Multi-domestic Strategy
The multi-domestic strategy alters its products, services and
business activities to suit the
needs of the local region or country. (Daniels et al,2009)

16
conditions
the local standing of the
company
Some companies that followed a multi-domestic strategy are
Johnson & Johnson and
Proctor & Gamble. The technology invented by the R&D unit in
P&G’s Japan subsidiary
to reduce thickness of infant’s diapers without loss of any
sponginess created high value
for P&G in Japan initially and later worldwide. (Daniels et al,
2009).
1.7.3 Global Strategy
A company adapting global strategy chooses to maximize
integration. This strategy
forces businesses to manufacture goods for a whole market and
presume that there are no
differences between countries regarding consumer tastes or
preferences and assume that
consumers will sacrifice these to get their high standard
products (Daniels et al, 2009)
ee the world as one market

marketing tools
Examples of companies pursuing global strategy are Google,
Nokia, American Express.
1.7.4 Transnational Strategy
A transnational strategy concurrently uses location economies,
influences core
competencies and attends to local responsiveness (Daniels et al,
2009).
GE, Philips, Acer are companies that has transnational strategy.
-
domestic and global
strategies
required
1.8 Structures of Organizations Operating in International
Markets
In order for an organization to carry out its strategy for an
organization, there needs to be
a formal plan of relationships, roles and responsibilities within
an organization. This
formal agreement or plan is what is known as an organization

structure. (Daniels et al,
2009).
Determining the appropriate structure for an organization to
ensure maximum efficiency
with distinct line of authority is a crucial operational decision.
Factors like the
organization’s objective, values, the impact of international
operations on the company
performance etc. often determine the type of organization
structure.
17
1.8.1 Functional Structure
Figure (iv): Functional Structure (Daniel et al, 2009)
Functional Structure is the way how work is organized when an
organization’s products
share a mutual technology and competitiveness for global
strategy. This structure is more
popular among companies manufacturing narrow range of
products. E.g. companies such

as Total or British petroleum have this structure.
Advantages Disadvantages
ize scale economies
environmental changes
departments
Table (v): Advantages and disadvantages of Functional
Structure
1.8.2 Divisional Structures
Organization uses divisional structure format to lay down roles
and responsibilities
between departments according to outputs.
1.8.3 Product Divisional Structure
Most of the companies around the world have Product
Divisional Structure as these
businesses include variety of assorted products. E.g. Moet
Hennessy and Louis Vuitton
two of the world’s famous brands merged to be one group
known as LVMH. Since these

two companies had different products, the managers split them
into 5 divisions each
division concentrating on a sole product. (Daniel et al, 2009).
for a global strategy as both the
domestic and international
divisions
CEO
Production
Asia
Production
Europe
Production
Marketing
Asia
Marketing
Europe
Marketing

18
operation of a product report to the
same manager
assessment of manager performance
product division can learn from
other divisions experience
Figure (v): Product Divisional Structure (Daniel et al, 2009)
1.8.4 Geographic Divisional Structure
When organizations have large foreign operations that are not
controlled by a single
country, they tend to use geographic division structure.
e.g. Nestle organization has a geographic divisional structure. It
has more than 500
factories in nearly 90 countries selling 8000 brands worldwide.
The drawback of this
structure is mainly duplication of work. In case of Nestle, their
factories in US were

paying more than 20 different prices for vanilla to the same
suppliers because of the lack
of coordination (Daniel et al, 2009). Nissan is another example
of an organization
following the geographic divisional structure.
than on global market
to adapt to local conditions
CEO
Corporate
Managers
Divison A
R&D Marketing Finance
Division B
Division C

Table (vi): Advantages and disadvantages of Product Divisional
Structure
Table (vii): Advantages and disadvantages of Geographic
Divisional Structure
19
Figure (vi): Geographic Divisional Structure (Daniel et al,
2009)
1.8.5 Matrix Structure
Matrix structure gets the benefits simultaneously from both
functional and divisional
structures.
ABB, Citibank, Dow Chemicals are organizations that adapted
Matrix structure and soon
realized the drawbacks of the structure as they didn’t know who
would handle
responsibility in a team and returned to structures that specified
roles and responsibilities
(Daniel et al, 2009).

rages each group to exchange
information without restrictions
single line of command
like financial and divisional
structures thus leading to problems
in operations
res that group compete with
each other for resources, rewards or
risks
CEO
Europe
Diviosn
Asia
Division
CEO
Group A Group B Group C Group D

Country X Country Y
Figure (vii): Matrix Structure( Daniel et al, 2009)
Table (viii): Advantages and disadvantages of Matrix
Structure
20
1.8.6 Network Structure
An organization with a network structure outsources value
activities to other firms.
(Daniels et al, 2009)
For example, companies like Nike, emphasize on their design
skills and hires other
companies like Sanmina to make their products. Similarly, many
banks, hotels, credit
card companies found that they can create more value by
outsourcing call center
functions to those who has competency in that activity (Daniel
et al, 2009).

activities
to develop control systems
sources to outsource for the
organization’s operations to run
successfully
Table (ix): Advantages and disadvantages of Network Structure
1.9 Conclusion
Further to the micro and macro environmental analysis, a
number of factors which could
affect the running of Nissan both positively and negatively were
identified.
Consequently, the opportunities presented will have to be
maximum benefited, while on
the other hand, the challenges has to be carefully tackled, with
effective strategies,
making use of Nissan’s internal strengths and resources.
Therefore, the effective strategy

for Nissan will be to orient the operations towards the
environmental analysis results, by
effectively utilizing its unique resources and core competencies.
Company
Producers
Distributiors
Designers
Suppliers
Figure (viii): Network Structure (Daniel et al, 2009)
GBS Sample 2/Name - ID GBS Task 2 handouts.pdf
Activity 2
a) An analysis of the moral and ethical issues faced by
organizations operating
in an international environment
A lot of changes have taken place in the way business is
conducted in today‟s world.
These changes can be seen in all the areas and functions of any
business, starting from

the nature and style of management to the motive behind
operating a business.
The growing concerns against the negligent behavior of the
businesses have resulted in
several changes being introduced in the last fifty years. Apart
from making profits, the
businesses were expected to follow certain socially acceptable
practices as well as they
were expected to be held morally responsible and accountable
for their actions with
respect to the society, environment in which they operate and
the overall well-being of all
those involved with the business. This growing concern has
resulted in what is known as
business ethics in today‟s business world.
Since the last three decades, businesses have addressed business
ethics in different forms,
like introduction of compliance programs and managers,
development of codes of
conducts and also by providing training on behavioral issues.
However, despite all these
efforts, the issue of ethics in business is still a matter of heavy
debate and lots of studies

are being conducted on the various issues associated with ethics
in business.
Understanding business ethics can be a difficult task. The field
is very diverse and covers
a lot of issues like corporate governance, morality, reputation
management, fair
laborpractices etc. In fact, business ethics addresses the entire
scope of responsibilities
that a company has to each of its stakeholders, and it is also
about the process of
management, the relationships between managers and the
relationships between
managers and other employees (Harrison, 2005:12). Further, the
concept of business
ethics incorporates the issues like corporate responsibility,
social responsibility, corporate
compliance etc.
The ethical issues in international business are:
- Employment: work conditions of a company might be different
in the host
country than what is in their home country. Company then needs
to decide on

which work conditions they would like to implement- host
country, home country
or something in between.
- Corruption: government officials are often paid bribes by
companies to gain
business. The US Foreign Corrupt Practices Act was passes to
fight corruption.
But what is considered ethical in one country cannot be treated
as same in another. E.g. in
developing countries like India, China etc. it is common
practice to bribe officials,
however this cannot be tolerated in other countries and
businesses will have to face
severe consequences if they indulge in such practices.
- Human Rights: basic human rights are not accepted in many
countries and are
taken for granted in many places which are not universally
acceptable.
- Environmental regulations or pollution: when environmental
regulations in the
host country is inferior to that in the home country, ethical
issues arise in form of

high levels of pollution, overuse of common resources etc.
- Moral Obligations: companies are not free from fulfilling
moral obligations.
Laws are one of the ways to make companies behave morally by
returning
something beneficial back to the society.
Additional moral and ethical issues faced by companies in
international business:
- Doing business transparently
- Abstaining from tax avoidance procedures
- Fighting against corruption and bribery
Triple Bottom Line
Organizations often think about how to serve their customers
and society, but their focus
on business have always been on the „bottom line‟. Lately, a
new observation to the
bottom line has emerged to what is known as Triple Bottom
Line.
If organizations want to achieve success, they should consider
the Triple Bottom Line:
economic, environmental and social which is also known as 3
Ps: Profit, Planet and

People.
An effective CSR must reflect the configuration of these with
the organization‟s business
strategy, values and sustainability.
Ways to improve moral and ethical issues faced by
organizations operating in an
international environment:
- Avoid any deliberate harm to the environment and society
- Follow the government regulations in the host country and
cooperate with their
government
- Pay fair share of taxes in line with the tax regulations
- Respect the host country‟s cultural beliefs and norms
- Make contributions to the development of the host country
- Respect human rights of the company‟s employees
b) An analysis of the conflicts between corporate strategy and
ethical and social
responsibilities

“Corporate Social Responsibility (CSR) refers to good
citizenship by the firm- i.e., its
obligations to society, particularly when society is affected by
the firms strategies and
practices” (Verbeke,2009:383)
CSR assist businesses to be like good citizens, i.e. to contribute
to society in a beneficial
way, by avoiding any harm and ethically relating to their
stakeholders, employees,
suppliers and the entire community.
Carroll’s CSR Pyramid
The components of Carroll‟s CSR pyramid are:
Economic Responsibilities
- Consistent performance with maximum earnings per share
- Maintaining a strong competitive position
- Maintaining a high level of operating competence
Legal Responsibilities
- Consistent performance with meeting expectations of law and
government
- Complying with various legal authorities
- Being a law enduring corporate citizen

Ethical Responsibilities
- Consistent performance with meeting expectations of social
and ethical norms
- Respecting the new and evolving ethical norms ibn the society
- Preventing ethical norms from being compromised
Philanthropic Responsibilities
- Consistentperformance with philanthropic expectations of
society
- Importance of manager to participate in charitable activities
- Providing assistance to educational institutes
Roles of business in society
The Shareholder Model
As a business flourishes in a society, it needs to maintain a
good relationship with its
stakeholders. Employees, customers and suppliers are the most
influential stakeholdersof
a business with media, local residents, trade unions, government
authorities having

extensive range of impact on business. Analysis of a society
from a stakeholder point of
view often helps business to determine risk and future
opportunities.
The Shareholder Model
This model focuses on the idea that the main purpose of a
business is to make profit for
its owners thereby increasing the wealth of the shareholders.
This model believes that excessive legal regulations are not
necessary while doing
business in a society and that their attempt to maximize wealth,
the society at large will
also be befitted.
Advantages and Disadvantages of CSR
The incorporation of CSR in businesses is generally viewed as a
positive object in many
companies. Apart from the benefits of increase in company
transparency, a positive
consumer image of being a good corporate citizen, there are
also certain disadvantages to
CSR.
Advantages:

- Better reputation
- Increased customer loyalty
- Greater worker productivity
Disadvantages:
- Difficulty in getting return on investments from social and
environmental
programs
- Hesitance from shareholders to put in money in business for
serving CSR
programs
- Expensive requirements on companies to focus on CSR
c) Identification of the legislation/ regulation and guidance
relating to corporate
social responsibility for organizations
CSR activities differ among countries. What is seencommon
CSR activity in one country

will not be seen as important and common in another country.
The most common CSR
activities that companies indulge in are:
Leadership
- Involving relevant stakeholders especially employees in
determining what success
will be and what their part would be in achieving it.
- Determining policies and procedures on specific concern areas
like complaints,
environment, human rights etc.
- Providing essential training to employees to help them take
the necessary action
including training on CSR and ethics.
- Fighting corruption and bribery especially if the business is
operating in areas
prone to these.
Marketplace
- Providing clear and decent product information with regards to
product quality,
safety etc.
- Ensuring that the products and services are safe to human

health as well as the
environment
- Promoting environmentally friendly products
- Guaranteeing fair prices to all consumers
Workplace
- Attending the employees and including them in
communication between
managers and staff
- Providing provisions for training and development
opportunities for employees
- Encouraging a diverse workforce through training, providing
equal opportunity
workshops etc.
- Ensuring equal benefits for all employees
- Providing flexible working hours
- Encouraging and promoting health and safety in the workplace
Community

- Helping charities and community organizations by giving gifts
of cash or other
forms
- Sponsoring events, sports club etc. keeping brand promotion
in mind
- Allowing employees time to do social work
Environmental
- Using green or more efficient technologies
- Reusing and recycling materials
- Minimizing packaging to decrease the amount of consumer
waste
- Efficient use of transportation of goods and logistics
2.1 An analysis of the moral and ethical issues faced by
organizations operating in an international
environment
International businesses may face many ethical issues that rise
from differences in political systems,
economic development, government laws and regulations and

also from cultural differences between
nations.
Ethical Issues in International Business
• Employment
Often when business start operating internationally, the legal
employment requirements and working
environment might be different from home market.
• Corruption
Corruption is an ongoing problem in the society. If the company
makes payments to secure business in a
market, means it is encouraging corruption through unethical
manner.
• Human Rights
It is important for the organizations to choose to survive in a
community that respects basic human rights
such as freedom of speech, freedom of association etc.
• Environmental Regulations or Pollution
It is not essential that all foreign countries have regulations on
environment. It is possible that companies
may emit harmful materials into the environment to reduce their
costs of getting costly anti-pollution
measures.
• Moral Obligations
Moral obligations or social responsibility refers to the idea that
businesses should consider giving back
something beneficial to the society to enable them to flourish.
2.2 An analysis of the conflicts between corporate strategy and

ethical and social
responsibilities
Governance Structures
The governing body of any organization is basically a Board of
Directors. The main responsibility
of the board is to ensure that an organization fulfills the wishes
of the primary stakeholders. These
stakeholders could be the shareholders in some private
companies, while it could be some funding
body in a public sector company. These differences has led to
how organizations operate and hoe
strategies are developed and also the composition of the boards.
The two most general governance structures are:
The Shareholder Model The Stakeholder Model
This model focuses on
maximizing profits for the
owners while minimizing the
importance of the firm’s
interaction with other groups
and its role in the society
This model recognizes the
importance of making profit
and at the same time
identifies the importance of
the firm’s relationship with
other groups- shareholders,

employees, customers,
suppliers and the society as a
whole
Corporate Strategy
Corporate Strategy is the direction and scope of an
organization’s by which it creates value across different
businesses with the aim of achieving specific goals
(Verbeke,2009).
Corporate Responsibility
Often referred to as Corporate Social Responsibility (CSR),
Corporate Responsibility is the commitment of
the business to contribute to the society in which it operates by
behaving ethically thereby improving the
quality of life of their employees and families as well as the
society as a whole (Verbeke,2009).
Figure b.1: Carroll’s Corporate Social Responsibility Pyramid
(Carroll, 1991)
Advantages of CSR Disadvantages of CSR
• Improves company profitability and
value
• Increases company transparency
with investors, media,
shareholders, society etc.
• Attracted by consumers for being
corporate citizen

• Resistance from investors
• Disproportional costs on small
businesses- not all business have
funds for implementing CSR
strategies in their organizations
• Greenwashing- those managers
who forsakes social benefits to
company profits have the risk of
losing their jobs as shareholders
see the responsibility of the
managers to maximize profits for
the company
Advantages and Disadvantages of Corporate Social
Responsibility
The incorporation of CSR in businesses is generally viewed as a
positive object in
many companies. Apart from the benefits of increase in
company transparency, a
positive consumer image of being a good corporate citizen,
there are also certain
disadvantages to CSR.
2.3 Identification of the legislation/regulation and guidance
relating to corporate social responsibility for
organizations
Legislation: the responsibilities of a company that are required
to be implemented by the law
Guidance: the options taken by the companies to go past the

legal requirements of law
Main CSR Activities in :
Leadership:
Legislation
- UK Corporate Governance Code
- Companies Act 2006
Guidance:
- Incorporating CSR into corporate governance
- Fighting bribery and corruption
Marketplace:
Legislation
- Consumer Protection Act 1987
- The Enterprise Act 2002
Guidance:
- Avoiding confusing advertisements
- Responding to customer complaints
Workplace:
Legislation
- Health and Safety at Work Act 1974
- Employment Rights Act 1996
Guidance:
- Listening to employees and involving them
- Fighting bullying at workplace
Community:
Legislation

- Countryside and Rights of Way Act
2000
- Planning Act 1990
Guidance:
- Investing in social activities
- Coordinating with local
communities
Environmental:
Legislation
- Environment Act 1995
Guidance:
- Treating emissions
- Decreasing goods transport
1
Statement and Confirmation of Own Work
StudentDeclaration
IhavereadandunderstoodATHE Assignment Submission
guidelines and AcademicDishonesty

andPlagiarism policies.
I canconfirmthefollowingdetails:
ID No:
Name:
Programme Title: ATHE Level 7 Diploma in Strategic
Management
Subject tutor:
Assignment No:
EnrolmentDate:
Due Date:
I declare that the work submitted is my own work
andthatIhavenotplagiarisedanypartofit.
Ihavealsonoted theassessment criteriaandpass mark
forassignments.
Signed:

2
ATHE Level 7 Diploma in Strategic Management
Submitted by: Xxx Xxx
3
Table of Contents

3.1 Company Profile
...............................................................................................
............ 5
3.2 Strategic Direction
..................................................................................... ..........
......... 5
3.3 Business Strategy
...............................................................................................
........... 5
3.4 Organizational Structure
...............................................................................................
5
3.5 International
Operations...............................................................................
................. 6
3.6 Value Chain Analysis
...............................................................................................
.... 6
Value Chain Primary Activities
.......................................................................................... 7
Value Chain Secondary Activities
...................................................................................... 8
Summary of Value
Chain......................................................................................
.............. 8
Strengths and Weaknesses of Nissan’s International Operations
....................................... 9

3.7 International Performance
...........................................................................................
10
3.8 Future Challenges
...............................................................................................
........ 10
3.9 Conclusion
...............................................................................................
................... 11
4
Section 3
Report
Rev.1
15-sept 2015

Evaluation of International Operations of
Nissan
5
3.1 Company Profile
Nissan Motor Co. Ltd. was founded in 1933 in Yokohama City,
Japan. At present, around
the world, Nissan has its manufacturing units in 20 countries
including Japan and their
products and services are available in more than 160 countries
around the globe. Nissan
Motor Co. Ltd. has a portfolio of three brands- Nissan, Infiniti
and Datsun, which are
marketed in all major markets in the world. In 1989, in North
America, Nissan launched
Infiniti as an exceptional brand. In 2012, the new global
headquarters for Infiniti was
opened in Hong Kong with sales operations in over 50
countries. Datsun brand was re-

launched to the world in 2012 (Nissan Motor Corporation
Annual Report, 2014).
3.2 Strategic Direction
In 2011, Nissan proclaimed their new mid-term plan called
“Nissan Power 88” which is a
business plan for 6 years that will help elevate the growth of the
company through new
sections for fiscal years (FY) 2011-2016. In Nissan’s strategic
direction, in 6 years, they
plan to deliver a new vehicle every 6 weeks, continue to
emphasize on sustainable
mobility, introduce new technologies, and increase investments
in brands (Nissan Annual
Report 2014).
3.3 Business Strategy
One of Nissan’s strategy is to directly involve with their
customers and build a strong
relationship with every car owner of theirs. Their sales plans are
focused on conquering
their customer’srequirements in every market and enhance their
product excellence. For
FY 2016, the goal of Nissan is hit the market share by 8%.So
far, Nissan’s been fruitful
in cutting down costs annually by 5%, by evaluating their
purchasing, logistics and in-

house costs (Nissan Annual Report 2014).
3.4 Organizational Structure
Nissan follows a geographic divisional organizational structure
as they have large foreign
operations. They do also have the other divisional structures,
according to their
customers, product and services. These structures ensure
enhanced coordination with one
another and helps meet the challenges of their geographic
location. Often these structures
6
are useful when managers can gain economies of scale in
production in a specific market.
One of the disadvantages could be duplication of work in some
areas but Nissan has set a
solution to reduce duplication. Nissan- Renault alliance is
converging R&D,
manufacturing, purchasing and HR functions below a sole
leader. This provides more
competence in R&D, flexibility in sourcing and benefits from
vehicle architecture

(Nissan Annual Report, 2014).
3.5 International Operations
The Nissan- Renault alliance established in 1999 is considered
the most successful
alliance in automotive industry. The benefits of sharing the
marketing strategies, plants
and car platforms are added advantages for both the companies.
Nissan’s ongoing plans
to develop alliance partnerships with Daimler, in producing
joint engine development,
small cars with Mitsubishi, viablecars with Ashok Leyland and
in the Russian market
with AvtoVAZ are carried out in parallel by Nissan.
These strategic partnerships, brand reputation, strong financial
performance and
innovation of new products and services are the key strengths of
Nissan.
“Technically, a core competency is a special knowledge, skill,
capability or technology
that creates unique value for the firm by creating an
acknowledged thread that runs
through all the firm’s value activities”(Daniels et al,2009:465).

A core competency can be developed from various sources like
product development,
employee productivity, manufacturing expertise, marketing
imagination and executive
leadership.
3.6 Value Chain Analysis
“The cooperative action that takes place as a product moves
from raw materials through
production to the final distribution is what is known as value
chain” (Daniels et al,
2009:871)
A dependable value chain helps an organization to concentrate
on its centralcapabilities
which are the distinctive set of talents or information that
makes it superior than its
opponents(Daniels et al, 2009).
7
General Administration
Human Resource Management

Technology Development
Procurement
Inbound
logistics
Operations
Outbound
logistics
Marketing
& Sales
Service
Figure (ix): Porters Value Chain (Johnson et al, 2008)
Value Chain Primary Activities
Inbound Logistics- Strength (Distinctive competency)

Operations- Strength (Distinctive competency)
Outbound Logistics- Strength (Core competency)
a and US markets
Marketing & Sales- Strength (Core competency)
Service- Strength (Core competency)
Sec
ond
ary
acti

viti
es
Primary activities
8
Value Chain Secondary Activities
General Administration- Strength (Core competency)
vision and values
te culture
Human Resource Management- Weakness (Needs improvement)
Nissan reorganized its organization structure by replacing 3
regions organization
structure with a 6 region organization structure to have more
managerial concentration on
each segment. In the previous structure, the segments comprised
of different regions that

were over seen by managers who were preoccupied with other
responsibilities. Under the
new 6 regions structure, each regional chairman was responsible
for multiple functions in
their geographies. As per Trevor Mann, Chief Performance
Officer, Nissan Motors, in
this new structure there still exists tensions between regions
especially related to pricing
and market shares. Therefore, there is a need for greater
standardization and adoption of
best practices throughout all the 6v regions (Nissan Annual
Report 2014).
Technology Development- Strength (Distinctive competency)
tments in new futuristic technologies like hybrid,
electric etc.
Procurement- Strength (Distinctive competency)
with focus to cut costs
Summary of Value Chain
Nissan’s competencies are its advanced engineering and
technologies, innovative product

and styling and their global brand. Nissan is deeply committed
to technological
innovation and Nissan’s autonomous driving technology is an
example to this. Nissan has
positioned themselves as an affordable, durable and stylish
brand in the automobile
industry as Nissan is well aware of its customers’ demands for
variouskinds of vehicles.
9
Nissan ensures to offer models pertinent to each region or
product sector. Technology is
the biggest opportunity and distinctive competency of Nissan
and it can lead to the
possibility of using this competence in innovation and effective
manufacturing
capabilities to meeting the global customer expectations.
Strengths and Weaknesses of Nissan’s International Operations
Strengths:
- mix of luxury models and competitive prices

-emission cars- Nissan LEAF is the best-
selling electric vehicle
in history
–from a 4.6% market
share in 1999, Nissan
achieved a record share of 5.8% in 2010 and aims at attaining
8% market share in
2016
Japanese automaker to use
autonomous drive vehicles. Nissan lately publicized that by
2020,it would be
ready with numerous, commercially feasible Autonomous Drive
vehicles by
2020.
(Nissan Annual Report 2014)
Weaknesses:
- e.g. Nissan North America recalled certain
models of Nissan
Rogue vehicles that experienced an electrical short in the
harness connector due to
a mixer of water and salt seeping through the carpet on the

driver side door near
the harness connector which could cause a vehicle fire.
Similarly, some of the
Nissan GTR and Infiniti models were recalled recently because
of a steering
column issue. Although Nissan recalls are lower than that of
their competitors,
this ruins brand reputation and causes negative influence on
customer loyalty
(Joseph, 2015).
10
3.7International Performance
Global demand in FY 2013 reached 83.11 million vehicles, up
to 4.8% from FY 2012.
Nissan’s global sales volume increased 5.6% to 5.188 million
vehicles and global market
share was 6.2%. Net sales increased 1,805.2 billion yen for the
year to reach 11,434.8
billion yen. Operating profit was 605.7 billion yen, for a profit
margin of 5.3%. The

growing demand for environmentally friendly vehicles, increase
in fuel prices and the
growth that Nissan attained from the partnerships were all
opportunities that Nissan
grabbed to perform well in the market (Nissan Annual Report
2014).
3.8Future Challenges
Nissan expects constant sales development in the coming years,
profiting from new
product introductions, which includes 10 new vehicles, the new
Murano, the new Pulsar
in Europe, the new zero-emissions e-NV200 in Europe and
Japan, several Datsuns, new
Infiniti models in China, and one ton pick-up trucks. Expansion
in areas of light weight
vehicles, zero emissions will be continued by Nissan as usual
(Nissan Annual Report
2014).
Political, economic, and social changes are challenges that
should be tackled by any
organization. Nissan sees improvements in their US
performance. Nissan’s US sales
increased to 11% in 2014 as compared to 5.9% growth in the

overall US market. That
made the US Nissan’s largest market, with sales of 1.39 million
vehicles (Kubota, 2015).
Europe, showing signs of recovery are positive. Nissan’s sales
rose to 4.1% as compared
to 3.9% in 2013 (Nissan Annual Report 2014). As per Financial
Times 2015, in
December 2011, Nissan announced that it would not take orders
for some cars in Russia
due to the country’s financial troubles. Automobile
manufacturers couldn’t adjust prices
to compensate that savings in Russian currency. However,
Nissan increased its prices
between 5-8% for half its models sold in Russia to compensate
the drop in value of sales
in Russian currency. So, Nissan is positive about the Russian
market. A healthy sales
forecast is predicted in China market where Nissan’s fourth
plant is opening in Dalian
(Nissan Annual Report, 2014). Collectively with all these
trends, Nissan expects that this
11

would help balance any influencearising from the increase in
sales tax in Japan, that
would reduce customer demand.
Another factor to be considered as a challenge will be the
decline in fuel prices. A recent
study estimates that each 10¢ drop in fuel prices associates to
1% decline in customers
considering alternate fuel vehicles (Tuttle, 2015). This would
cause less attraction to the
hybrid or electric cars as consumers would become cost
conscious. Not to forget, the
competition from other automotive companies and increase in
the price of raw materials
are all challenges that Nissan anticipates.
3.9Conclusion
Nissan is making satisfactory progress and believes to be
moving in the right direction, as
reflected in the financial statements.
Nissan is an example of how business can benefit from
globalization. With excellent
strategies in place, Nissan was brought back from verge of
closure to profitability and

growth by capitalizing on the benefits and opportunities of
globalization. Globalization
has been a critical success factor for Nissan also due to the
opportunities made available
from the alliance with Renault.
Nissan is committed to going beyond customer, supplier,
employees and shareholder
expectations by utilizing all the growth opportunities,
continuing to focus on sales power,
innovation and sustainability globally.
Important Notes:
1. You must familiarise yourself with the Academic Dishonesty
and Plagiarism
Policy of LQA and ensure that you acknowledge all the sources
which you use in
your work.

2. You must complete the ‘Statement and Confirmation of Own
Work’.
3. Please make a note of the recommended word count. You
could lose marks if
you write 10% more or less than this.
4. You must submit a paper copy and digital copy (on disk or
similarly
acceptable medium). Media containing viruses, or media which
cannot be run
directly, will result in a fail grade being awarded for this
module.
5. All electronic media will be checked for plagiarism.
Marker's comments:
Moderator's comments:
Mark: Moderated
Final
Mark: Mark:
January 2015
Assignment

Unit:
Unit 7.2 Global Business Strategy
Level 7 15 Credits
Scenario
You have been appointed as a market analyst in a small
investment bank, which manages the wealth
of many clients.
One of your first tasks is to choose an organisation that operates
internationally. This may be an
investment opportunity for your employer, but you can choose a
non-profit making organisation. In
your role as a market analyst you will also need to understand
the impact of globalisation on business
organisations in general.
Activity 1
Your line manager has asked you to analyse the international
business environment for your
chosen organisation and produce a report for him which
includes.
a) a review of the techniques to analyse the environment and an
assessment of their suitability.
b) an analysis of the micro and macro environments of the
business using techniques reviewed
in the first part of your report
c) an analysis of how the international business environment
impacts on your chosen

organisation.
d) an assessment of the benefits, opportunities and challenges of
globalisation on your chosen
organisation
As you are nearing completion of this report, you receive a
memo from your line manager which asks
for further sections to be included in the report. These
additional sections must analyse
a) the extent of globalisation on organisations.
b) structures of different organisations operating in
international markets
.
Assessment Criteria 1.1/1.2/1.3/1.4, 2.1/2.2/2.3.
Activity 2
You are now required to give a presentation to a group of
managers on the importance and nature of
Corporate Social Responsibility to organisations operating
internationally.
Your presentation must cover the following topics:
s faced by operating
in an international environment
ethical and social responsibilities
relating to corporate social
responsibility for organisations

You will need to produce your notes for the presentation and
have appropriate hand-outs for the
group detailing the topics covered.
Assessment Criteria 3.1/3.2/3.3
Activity 3
The group of managers who attended the presentation have
requested a paper which critically
evaluates the international operations of your chosen
organisation.
AC 2.4.
Guidelines for assessors
The assignments submitted by students must achieve the
learning outcomes and
meet the standards specified by the assessment criteria for the
unit. The suggested
evidence listed below is how students can demonstrate that they
have met the
required standards.
Activity
number
ACs Suggested evidence
1 1.1/1.2/1.3/1.4,
2.1/2.2/2.3/

The report must identify a range of techniques for analysing the
international operating environment. These techniques must be
thoroughly reviewed and assessments made based on sound
judgements. The analysis should be detailed and cover the micro
and macro environment of the chosen business and clearly
demonstrate how the international business environment impacts
on the chosen organisation.
The report must also show that the learner understands the
impact of globalisation on business through careful analysis
which
covers the extent of globalisation and the structures of different
organisation operating globally. The assessment must be
balanced and cover all the different aspects stated in the task.
The report should be in an appropriate business format.
2 3.1/3.2/3.3 The presentation should cover all the main topics
stated in the
task , show analysis and identify relevant legislation, regulation
and guidance facing organisations.operating internationally. The
notes produced by the learner must show understanding of the
importance and nature of CSR to organisations. The handouts
prepared by the learner must be detailed with appropriate style
and content for the identified audience.
3 2.4 The paper produced by the learner must provide accurate,
and
detailed information for the chosen organisation, The evaluation
needs to be balanced and provide reasoned judgements.
Coversheet.pdf (p.1)5 Global Business Strategy.pdf (p.2-3)
7.2 Global Business Strategy

Aims To explore the strategic responses of organisations to the
rapidly
changing global business environment. To understand the
strategies and processes used to manage international businesses
in differing geographical and cultural situations. To understand
the
importance of managing within a framework of corporate social
responsibility.
Unit Level 7
Unit Code R/503/5094
GLH 60
Credit Value 15
Unit Grading Structure Pass
Assessment Guidance Assignments in accordance with awarding
organisation guidance
Learning Outcomes.
The learner will:
Assessment Criteria.
The learner can:
1. Be able to analyse the international
business environment
1.1 Review and assess suitable techniques to
analyse the business environment
1.2 Analyse the micro-environment of a business
1.3 Analyse the macro-environment of a

business
1.4 Analyse how the international business
environment impacts on an organisation
2. Understand the impact of globalisation
on business organisations
2.1 Analyse the extent of globalisation on
organisations
2.2 Assess the benefits, opportunities and
challenges of globalisation for an
organisation
2.3 Analyse the structures of different
organisations operating in international
markets
2.4 Critically evaluate the international
operations of an organisation
3. Understand the importance and nature
of Corporate Social Responsibility
3.1 Analyse the moral and ethical questions
facing organisations in an international
environment
3.2 Analyse the conflicts between corporate
strategy and ethical and social
responsibilities
3.3 Identify legislation, regulation and guidance
relating to corporate social responsibility

Level 7 Management Specification May 2014 1
Indicative Content
1. Be able to analyse the international business environment
Analysis techniques
ental analysis and diagnostics, environmental audit,
Porter’s diamond (The
Competitive Advantage of Nations - Porter), PESTLE, ‘five
forces’ analysis
Micro-environment
intermediaries
Macro-environment
(national and
international), cultural environment, resources (capital, people
and natural),
technology
International business environment, culture, CSR, politics,
environmental issues,
globalisation

2. Understand the impact of globalisation on business
organisations
History
-western cultures,
maritime European
empires, industrialisation, trade and empire, Bretton Woods,
development of
communications, information technology
Extent of globalisation
development and exchange,
capital
Effects of globalisation
nd
outsourcing, cultural
dominance, natural resources, conflict; debates: benefits and
challenges of
globalisation, advocates and critics
Structures
chain management,
business structures, outsourcing, international communications
Operations

markets, international brand
development, protection of IP, trade partnerships, politics and
regulation, security,
ethics
3. Understand the importance and nature of corporate social
responsibility
Moral and ethical questions
responsibility, social
responsibility, corporate accountability, corporate governance,
cultural conflict (eg.
nature of bribes and rewards), different economic models,
different ethical
frameworks (theories: deontological and utilitarianism),
Hofestede, Hall (monochronic
and polychronic cultures)
Conflicts
include: climate change
and environmentalism, anti-globalisation and social
responsibility, ‘Peak oil’, greater
insecurity, relationships with government, technological change
and privacy

concerns, social media, intellectual property issues
Legislation
guidance; global agreements
on carbon; legislation on pollution; agreements on issues
affecting specific industries
e.g. fishing agreements; institutions; codes of practice and
guidelines from
international (e.g. OECD, ISGN), and industry (e.g. ISAR)
bodies, reporting
mechanisms (audit standards)
Unit 7.2 Global Business Strategy
Level 7 15 Credits
Suggested Resources
Text
Exploring strategy
Authors: Johnson, Gerry; Whittington, Richard; Scholes, Kevan
Pearson Education 2011

9780273732020 773p
Illustrates issues and techniques of strategy using real
organisations
Contemporary strategy analysis
Grant, Robert M
Chichester; John Wiley, 2010
9780470747100 499p
Good and well respected general text on strategy analysis
including globalisation
issues.
Understanding global strategy
Segal-Horn, Susan; Faulkner, David
Andover; Cengage Learning EMEA, 2010
9781844801497 504p
Text book on global strategy with real world examples and
relevant case studies.
Strategic thinking
Wootton, Simon; Horne, Terry
London; Kogan Page, 2010
9780749460778 150p
Text on developing global strategy which gives an insight into
some of the analysis
techniques and how they can be used.
Business strategy
Kourdi, Jeremy
London; Economist in association with Profile Books, 2009
9781846681240 250p

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