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For
example, Microsoft was slow to realise the opportunities created by the internet
whilst Marks and Spencer had to close many of its stores it had opened abroad.
What do you think are the main reasons for big businesses making bad
decisions? Justify your answer with reference to Microsoft and Marks and Spencer
and/or other businesses that you know.
PLAN
Point 1:
Not enough MR- Tesco moving into America; Fresh & Easy, spent
millions on MR but had to pull out as they did not research how Americans
shopped.
M&S pulled out of Europe because they were not modern enough.
Didnt do extensive MR. Downfall in profits- loss of stores and loss of
jobs. Bad CSR for the shop in Europe.
MR is fundamental in any businesses esp when moving abroad. Without
MR, a company has no chance of survival. However, Coca cola thought
when they changed coke they had done enough but they pulled
through it well and handles it well therefore it was not too big of a loss.
Point 2:
Poor leadership Tesco Dave Lewis (got out while he could) Before
Tesco went into
Turmoil. Was he the reason? He was aware of Tesco bullying
suppliers, why didnt he stop it? Did he know about their accounting antics?
-
Point 3:
profits. Many UK company have made mistakes, many pull out better than
others eg, Starbucks, Primark.
Conclusion: