According to the theory of Internal Business, for the purpose of external environment research numerous models are there which are found to be very effective. However, the analytical theory regarding the study of external environment is positive for some of the particular countries. This technique is adapted by those companies who aspire to internationalize or globalize their markets. In addition to this, it is very useful because, the concept illustrates the perfect locations in a foreign country with regard to the institutional suitability along with cultural aptness and prospective chances of accomplishment. Incisive knowledge of location selection is also an astute part which lies within this idea and various top organizations have chosen this concept as of now. .
Likewise, one of the most accepted concept which was structured by Michael porter in the year of 1990 and known as Diamond Model. This essay is an attempt to resolve the advantages and disadvantages correlated with the top notion explained by Porter. By this analysis, these factors can be used as an impressive tool in the study of assessment on the subject of home and host locations of the firm. The prime focus for the study of location decisions in this essay is characterized by two leading Multi-National Enterprises- French Carrefour and Marks & Spencer. French Carrefour is the giant enterprise famous for establishing itself as the preeminent high-street retailer. Likewise, Mark & Spencer is a London-based company famous for its position as a multinational retailer. "The competitiveness of a country is completely dependent on the competency of modernization, expansion and advancement of its industries."" This is what stated by Michael Porter in his Diamond Model. In accordance with his thought, the productivity of the nations is contingent upon the above mentioned theory. For high productivity, on the basis of quality and technology the national competitiveness depends on the home base facilities provided by the nation to internationalize an industry and thereby improving their products and services in every possible manner.
