FDA Business and Management level I
Working in an International context
Marks and Spencer’s Expansion into China
Contents Page
1. Introduction
2. Main factors influencing M&S to invest so heavily in china
3. Methods of FDI used by M&S In China
4. Differences in Business Model from China and Europe
5. Cultural & Organisational Risks
6. Future recommendation
7. Bibliography
8. Appendix
1. Introduction
The following report will address the expansion options available to Marks and Spencer (M&S) in China and Europe. The report will outline a recommended strategy plan for expansion in both areas, as well as give recommendations for future expansions in other countries.
Marks and Spencer is one of the leading
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On 2nd October 2008 M&S opened their first store in mainland China, using a direct form of investment. The store in Shanghai is now one of many wholly owned subsidiaries in mainland china. A wholly owned store is when the company has full ownership as oppose to going into business with another investor or retailer abroad. Due to the fact their stores are wholly owned this draws up many advantages for M&S such as keeping control of their stores, which is a big factor when abroad as foreign investors could go against your beliefs and damage your reputation however because of this it can be seen as a disadvantage as you may not be experienced in the market and the advice of a partner when doing business abroad could prove to be beneficial. Another major advantage is that profit is maximised as you do not have to split it with any one else. In M&S case in China it comes as an added advantage that it is a very attractive country to do business in due to low wages and lower corporation tax if any.
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