Inequality in the EU27 Countries: An Econometric Panel Data Approach

The provided content discusses various aspects of globalization, including economic inequality, foreign multinationals, responsible leadership, and the challenges faced by businesses. The papers explore how globalization affects countries, industries, and organizations, with a focus on the EU27 countries, China, and the UK. Key themes include the impact of globalization on income inequality, innovation, and human resource management.

Critical Issues in
Business Management

TABLE OF CONTENT
ASSESSMENT 2..................................................................................................................................3
INTRODUCTION................................................................................................................................3
1. Analysing the main drivers of globalisation................................................................................3
2) Critically evaluate the challenges of globalisation for a multinational company, in the areas
below:...............................................................................................................................................4
a. Leadership....................................................................................................................................4
b. Organisational Structure..............................................................................................................6
c. The workforce..............................................................................................................................6
d. Strategy development..................................................................................................................8
CONCLUSION....................................................................................................................................9
REFERENCES...................................................................................................................................10

ASSESSMENT 2
INTRODUCTION
Globalisation is referred to be one of the most requisite considerations of almost all
organisational bodies where it gives them a prior chance of growth and development to extend into
large sets of market. It is basically a providential tool to internationally expand the existing business
operations into the outer marketplaces (Asteriou, Dimelis and Moudatsou, 2014). It hereby
represents to be the most considerate tool for achieving an advantageous position in the market with
major economic benefits. It is together associated with some leading number of challenges that are
being faced by the businesses while getting involved in international transactions that are being
discussed in the below report. It is with a special context of a multinational organisation named
Coca Cola which is one of the renowned enterprise of UK in the industrial sector of retail.
1. Analysing the main drivers of globalisation
The world is coming closer with technological developments on a rise. This international
integration of world views, commodities and intellectuals is considered as globalisation. Right from
the onset of 20th century, there have been phenomenal changes which the world has witnessed. The
major cause of this process was business expansion. When convenience for transportation and
distribution of goods was acquired by companies, it became easier to export or transport the items
overseas. Following are the key drivers of globalisation:
 Technological drivers: Companies are completely dependent on technology and
machineries. Be it manufacturing sector or any other production house, technology has
completely transformed the scenario. The introduction of better transportation facilities,
internet trading and efficient communication channels has been enhanced with help of
technology (Stevenson, 2014). Businesses have developed largely because of technological
support and highly advanced devices.
 Political drivers: Trade that takes place between two or more countries is international. The
rise of such trading was facilitated when liberalisation on trading rules was experienced.
Many nations wanted to reach a stage where they won't need any sort of support from
external agents to stabilise economy. Hence, the foreign direct investment rules and
deregulation of markets took place. These factors became the political drivers of
globalisation. Various large scale enterprises sighted foreign direct investment as the sole
medium to earn more profits by expanding the business in different countries (Jones, 2013).
 Market drivers: Once a company establishes in a market, the opportunities for growth and
development are limited. This is because domestic markets are exposed to saturation. Hence,
a need was generated to recognise opportunities which can enhance trade and bring in more

profits and development. Customer needs and requirements are assessed by these companies
that are seeking expansion and then strategic plans are made. Currently global marketing
channels have been established which help in planning and implementing the
internationalisation.
 Competitive drivers: When functioning in the local markets, there are various competitors
and rivals that come up in the same functional structure. Competition helps in reducing
monopoly and dominance of one type of products and services (Rupert and Smith, 2016). As
businesses started developing in other countries, the level of competition increased. This
determines that globalisation process was stimulated and more firms wanted to gain global
recognition. This driver helped in gaining two-way trades with better FDI actions.
 Cultural drivers: The increase in locomotion of individuals from one place to another led to
rising diversity in different regions. This implies that cultural structure of particular
operational market changes simultaneously. Companies sighted this as an opportunity of
business development. Every organisation wanted to be a part of the national and
international trade based competition so that global recognition and brand reputation can be
acquired (Stevenson, 2014). Cultural drivers enhanced the globalisation process and gave a
new outlook to the industries working in this field.
2) Critically evaluate the challenges of globalisation for a multinational company, in the areas
below:
a. Leadership
Leadership is referred to be a foremost consideration in almost all sort of establishments
where their appointed set of leaders are directly responsible to handle the entire workforce by
together managing their work for a timely completion (Coker, 2014). It is with a similar reference to
it, the leaders are not only concerned with such single submission of work of a single employee or
of their own but are together required to manage a large team of individuals. It is with a special
context of the multinational businesses like Coca Cola who are operating in the entire globe with a
worldwide recognition of their business.
There are different types of leaderships which can exist in an organisation depending on the
choice of leader and acceptance of the organisation. The autocratic leadership style is quite
demanding and dominating because it doesn't allow other individuals to share their views and
thoughts during the organisational decision making. On the other hand, democratic leadership style
depends on the active participation of followers in the decision making. Coca Cola can function
appropriately when leadership is balanced with organisational requirements.
It is where the elected organisation is splendidly operating in about 12 different nations with

near around 7000 stores. As a result to which, the deputed managers and leaders are hereby required
to deal with a diversified team of individuals come from different socio- cultural background (Doh
and Quigley, 2014). This often refers to bring various external challenges for the leaders appointed
in Coca Cola and are handling its international business operations that is together referred to be a
need base consideration in today's globalised world. It is therefore with an analogous consent to it,
below are some major challenges that are being faced by the leaders to operate in a directional
manner-
 People Count- It is in context to a foremost need of organizations where they are hereby
required to have a passionate set of employees with a trustworthy and committed outlook
towards work. Apart from which, they must be both emotionally and intellectually
competent to further encourage the team to attain the most progressive vision. It is however
with a special context to the appointed leaders of Coca Cola where they should not only rely
on those set of individuals who are depicted to be the high fliers (Dwyer, 2015). However,
they must together focus upon the long stayers who duly abides by the formulated rules and
regulatory norms of the organization so as to logically contribute into the work. This is with
another fundamental concern of building a likely bridge among the diversified set of
cultures and geographies for obtaining optimum benefit of globalization. As a result to
which, Coca Cola should hereby refer to depute global leaders and managers rather than
appointing local administrative bodies. It is where they will be operating with a foremost
sense of reinforcing the mind-set of other individuals as well by knocking off the obstacles
that may arise due to a diversified workforce.
 A global set of skills- It is referred to be yet another leading challenge for Coca Cola where
referring to a global set of skills not only postulate their leaders to possess social etiquette
along with distinct language skills (Hirst, Thompson and Bromley, 2015). But it is far
beyond than this and exists with a simplified agenda of having a tolerant nature with a due
respect towards different socio-cultural perspective prevailing in different countries. It
together necessitates the appointed organizational bodies to adopt a changed style of
management to lead their diversified set of workers.
 Acknowledging the leaders- This depicts an imperative need of today's globalized set of
business where it is largely pressurizing the organizational bodies like Coca Cola to clearly
analyse any disparity in leadership (Scherer, Palazz and Matten, 2014). It is basically to raise
the tact of leadership from all possible levels by together providing a prompt opportunity to
the young and emerging leaders to identify any faulty or imprecise occurrence at the
workplace by taking accordant actions to level down the work in a likely manner.

 Managing both intrinsic stakeholders and politics- This is referred to be yet another
challenging prospect of an effective leader to handle a large set of stakeholders by together
negotiating the external politics of an international marketplace (Ulrich and Dulebohn,
2015). It is thereby referred to be a difficult task for the leaders and managers to balance
among their previously adopted practices and settle down with the newer ones. This is
mainly due to a fundamental fact where politics in an international set of market largely
differs from that to the domestic marketplaces.
b. Organisational Structure
Globalisation being a vital opportunity for the organisations like Coca Cola to grow and
expand into some leading number of markets together exhibits some major challenges impacting
upon their adopted organisational structure. It is in context to different organisational structures that
are in turn referred to govern the culture of the organisation by directly impacting upon the
behaviour of the employees (Walker, 2015). Wherein, the culture is always positioned at the top
most level with an interrelated context to the other vital considerations of culture and employee's
behaviour, etc. It is hereby with reference to the elected organisation Coca Cola where they may
refer to employ a particular organisational structure in its domestic marketplace. However, there
international market may reflect a distinct requisition of operating with a dissimilar composition of
work that is required to be opted for supporting different market conditions of their foreign markets.
However, it together tends to create some major number of challenges for the organisations like
Coca Cola that are as described below-
 Complexity and specialization- This is mainly in context to an adopted organisational
structure of Coca Cola in their domestic marketplaces where it may not support their
international marketplaces. It in turn may postulate them to undertake an accordant structure
that incorporates with the cultural facets of those markets by positively overriding the
behaviour of their local workforce (Sellar and Lingard, 2013). It is where an organisational
culture is duly being governed by their structure where both these amalgamated factors in
turn govern the individual’s behaviour at the workplace. A challenging concern over here is
a prime requisition of a specialist who can accurately stipulate a pertinent organisational
structure of Coca Cola in its global sets of market. It is because a same organisational
structure as adopted by them in their domestic marketplaces with a non-collaborative
outlook may create a perplexed state of work.
 Need for consolidation- It is referred to be yet another major consideration while referring
to a distinct organisational structure in the international marketplace that in turn needs a
proper alliance with the concentrated goals and objectives of Coca Cola (Pinheiro and

Stensaker, 2014). It is where a deficit union among both its domestic and international set of
markets may directly challenge their targeted aims of the business with an increased failure
to successfully position them in the newer marketplace.
c. The workforce
This is in order to define those challenges of globalisation that are often being faced by the
human resource management (HRM) of Coca Cola to handle a diversified workforce (Dunning,
2014). It is where a major number of academic scholars have together contributed their views for a
need base administration of diversified workforce by motivating them in an effective manner.
However, to do so, they are hereby required to go through some leading challenges that are as
referred below-
 Miscommunication within the organization- It is a foremost challenging concern in a
globalised organisation like Coca Cola where cultural barrier duly lead to the state of
miscommunication among the workers. It is mainly due to a distinct perception of
employees coming from different backgrounds that may not match with one other and as a
result to which, it may create poor interaction among the individuals (Cavusgil and et. al.,
2014). Operating with some active measures of communication is however referred to be a
need base agenda of almost all sort of organisations. It is with a prime accountability of their
HRM to integrate with some non-hindering guidelines that in turn build a sense of
corporation in employees.
 Interpretation of messages that can vary from one person to another since none of them
having identical experience of events- It is yet another perplexing state of affair for Coca
Cola in case they fails to transmit a clear message to their employees where there domestic
personnel’s may not have an identical experience like their international set of workers
(Kokemuller, 2017). This in turn oblige them to precisely communicate the factual messages
to both their workforce’s to help them to make a better understanding to further incorporate
it as required. However, in case the HR personnel’s of Coca Cola fails to do so, then it will
impact on their overall business aims by not achieving them on time.
 Cultural prejudice including partiality and discrimination- This is referred to be one of the
most concerning factor of a globalised firm where cultural barriers often leads to create a
discerning environment at work. It is where a large number of employers in Coca Cola may
together refer to have a biased outlook towards those who do not belong to their own
cultural identity. In context to which, those who are from different socio- cultural
backgrounds are more likely to deal with a lesser developmental scope and simply become

the part of a discriminated work environ (What’s next future global trends affecting your
organisation, 2017). This in turn also tends to demotivate them to a greater extent with no
willing approach to work in such partial surrounding merely for being from a different
background. They often losses big opportunities despite of having a prospective future
ahead for their proficient qualification. The HR bodies of Coca Cola should hereby refer to
create stricter policies to oversee any such deceitful act at the workplace by together taking
severe actions against the offender who breaks those norms.
d. Strategy development
It is in context to yet another major consideration of Coca Cola to develop effective business
strategies as a way of succeeding into the newer set of markets. Although, developing strategies is
also a dependent tact where it largely relies on the prevalent trends of a marketplace. It is therefore
important for the organisations like Coca Cola to conduct a primary analysis of their market with a
special concern of discovering the existent needs and demands of the users in the new targeted
market (Jones and Sherwood, 2014). Beside this, competitor analysis is together referred to be an
important consideration to address the adopted strategies of the rivals as a way of proposing some
distinct offers to draw in the attention of numerous customers. However, development of prompt
strategies is referred to be a tactful consideration for such large scale businesses that in turn creates
some major number of challenges as stated below- Contradictory moralistic standards- An undertaken approach of globalisation not only
necessities Coca Cola to operate with a cooperative marketplaces that tends to encompass
several nations. However, it together advises the business to bring onto a uniformed
business to attain a guiding orientation (Hao, Wei and Dittmer, 2015). It is with a major
context of UK based organisations where they are hereby dealing with a principal challenge
to uphold their ethical standards in the domestic markets by together lacking the same in
their international set of markets. Where they together lack to adhere by the standardised
norms of their international markets. This in turn directly impacts the espoused structure of
the organisations like Coca Cola by negatively affecting the collaborative sense of
employees. Costs- It is referred to be one of the most impactful measures that generally rise with the
acceptance of globalisation. It is referred to be correct even if Coca Cola tends to reach out
its global audience via Internet. Exploring each of the international marketplaces by setting
up physical stores and undertaking machinery infrastructure along with employing capable
workers are some mandatory tactics required to undertake by Coca Cola (Dunning, 2014).
Beside this, they are together required to use interpreters for making internal

communication with the local set of employees to advertise globally and transporting goods
are also reflected to be some common costs allied with a globalized business. Few of these
are sometimes mitigated by the companies like Coca Cola with the help of competent
worldwide delivery systems and by supplier’s cooperation with effective investigation and
planning.
 Cultural gap- It is with reference to a diversified workforce in the international marketplace
of Coca Cola were cultural barrier possess an enormous threat to their worldwide business.
This together makes it difficult for the organizational bodies to clearly interpret the factual
needs and demands of the customers where the Asian consumers of Coca Cola may not
have a similar choice like the American ones. However, to analyse such distinct preferences
of users in a discrete set of market, most of the enterprises like Coca Cola are often referred
to appoint local staff members as marketers by together deputing local suppliers to make a
better interaction with the clients (Crescenzi, Gagliardi and Iammarino, 2015). It is due to
another factual cause where branding by together communicating the product benefits
together gets challenging for the companies like This is together referred to be a
challenging perception where the local workers often find it tough to adjust into an
intercontinental venture with different cultural norms. It is where different market cultures
differently uses the commodities and will not tend to respond towards similar marketing
communications that Coca Cola used to make in its domestic market. This in turn
intensifies the cost of marketing by pessimistically impacting upon the entire organisational
structure.
CONCLUSION
The above report has summarised some pivotal facts of globalisation where being a
preferable mean of growth, it is together composed of several challenging components that directly
impacts upon the undertaken decisions of a business. It is hence with a correspondent outlook of
globalisation, the above report has firstly demonstrated about some key drivers of globalisation. It is
along with yet another vital section that has outlined some principal challenges that are often being
dealt by the multinational ventures like Coca Cola while getting into international trading of goods
and services. This particular unit is further segregated into well-defined portions with a foremost
consideration of identifying those challenges of globalisation that directly affects the leadership
with another set to address the challenges that are being faced in enforcing a pertinent
organisational structure. Lastly, such challenges of globalisation are being discovered that impacts
upon the workforce and strategy development.

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