Benefits and Drawbacks of a Global Business Environment

RESEARCH
PROJECT

Table of Contents
TITLE: “The benefits and drawbacks of a global business environment”......................................3
CHAPTER 1: INTRODUCTION....................................................................................................3
Overview of research..............................................................................................................3
Background of company.........................................................................................................3
Rationale of study...................................................................................................................4
Significance of research.........................................................................................................4
Gantt Chart.............................................................................................................................4
CHAPTER 2: LITERATURE REVIEW.........................................................................................6
Concept of globalisation.........................................................................................................6
Benefits and drawbacks of globalisation for increasing business growth..............................6
Issues and challenges faced by ALDI while expanding business operations.........................8
CHAPTER 3: RESEARCH METHODOLOGY.............................................................................9
Type of investigation..............................................................................................................9
Research Philosophy..............................................................................................................9
Research Approach...............................................................................................................10
Data collection......................................................................................................................10
Sampling method..................................................................................................................11
Ethics consideration..............................................................................................................11
CHAPTER 4: DATA ANALYSIS ............................................................................................13
Research Outcomes........................................................................................................................22
Covered in PPT.....................................................................................................................22
CHAPTER 5: CONCLUSION AND RECOMMENDATION.....................................................22
Reflection.............................................................................................................................22
Recommendation..................................................................................................................23
Conclusion............................................................................................................................24
REFERENCES..............................................................................................................................25

TITLE: “The benefits and drawbacks of a global business environment”
CHAPTER 1: INTRODUCTION
Overview of research
Global business environment refers as the environment in different independent nations,
along with factors exogenous to the domestic environment of the company. The global business
environment can be divided into two factors such as external and internal environment. The
external environment involves political, social, economic and more which directly impact on
business operations and its functions (Briscoe Tarique and Schuler, 2012). The report is based on
ALDI which is one of the leading supermarket chains with over 10,000 stores in around 20
countries and they are offer different type of goods and services to the people. The main purpose
of this research project is to analyse benefits and drawbacks of global business environment
while expanding business in another nation. It involves aims, objectives and research questions
which assist in evaluating and understanding whole topic. Along with this, literature review help
in examining different authors view points and reviews regarding specific research theme.
Background of company
ALDI is the common brand of German company which is large supermarket chain and
they are offer variety of goods and services to their customers. It has over 10,000 stores in 20

countries and an estimated turnover of more than 50 billion euro. It is established by brothers
Karl and Theo Albrecht in 1946 when they took over their mother's stores in Essen. ALDI's
operate and regulate around 2500 stores in the country. It is commonly sell grocery products and
household items which attract large number of customers. They are offer best quality based
goods and services to their buyers at reasonable rate (Cavusgil and Knight, 2015). The present
case study is based on analysing benefits and drawbacks of global business environment which
directly affect on business operations and its functions. In current time period, most of the
companies are adopt globalisation concept which help them in easily expand business functions
in another country. With the help of globalisation, it is required for ALDI company is to promote
goods and services in other nation in order to gain maximum profitability and income.
Rationale of study
The main reason behind conducting this research is that investigator required to
understand about how globalisation concept is important for an organisation while expansion of
business operations. It is important for ALDI is to promote their products and services by using
different sources and methods such as social media, Facebook, Instagram and YouTube. For this,
they can easily expand their business functions and activities in emerging market place.
Significance of research
For gaining higher growth, ALDI is required to expand their business operations and its
functions at international level. The research is important because this will help investigator in
finding out major issues and challenges which are faced by them while completing the project. It
is necessary for firm to use globalisation concept which help them in gaining higher income and
profitability in proper manner.
Aim: “To analyse the benefits and drawbacks of global business environment for
enhancing growth of an organisation”. A study on ALDI.
Research Objectives:
 To understand the concept of globalisation.
 To ascertain the benefits and drawbacks of globalisation for increasing business growth.
 To identify major issues and challenges faced by ALDI while expanding their business
operations.
Research Questions:
 What is the concept of globalisation?

 What are the major benefits and drawbacks of globalisation for increasing business
growth?
 What are the issues and challenges faced by ALDI while expanding business operations?
Gantt Chart
Gantt chart is the graphical representative which describe project schedule that clearly
shows relationship between current status and actions. It demonstrate vertical axis where list of
all tasks to be performed and horizontal axis represents time intervals. Along with this, it indicate
start and finish dates of terminal element of the projects.

CHAPTER 2: LITERATURE REVIEW
A literature review describe about published data and information in particular topic area.
It is a simple summary of sources and it is generally use specific organisational structure and also
combined both summary and brief concepts. In this section, there are different authors and
scholars are give their view point and perception regarding project theme. Literature review is
the secondary method and it does not record new and original inquiry of work.
Concept of globalisation
As per the view point of Crane, Matten and Spence (2013) Globalisation is the process
which can be used for describing social, economic and political communication and interrelation
across the boundaries. This will assist an organisation in selling variety of goods and services to
their customers in different countries and also satisfy their need and requirements. Along with
this, globalisation is the free movement of products, services and people in all over the world in
effective manner. In current time period, it can be analysed that due to enhancing in people
movement so it has majorly impact on global economy in both positive as well as negative
manner. Sometime, government has removed certain trade barriers in order to motivate and
encourage organisation for expansion of business operations at international level. It helps in
gaining huge number of income and profitability by satisfying or fulfilling all customers’ needs
and wants. With the help of globalisation, firm can easily conduct export and import activities at
large level and reach with high profitability in better manner. In addition to this, globalisation is
the processes which assist businesses in expanding their business operations and its functions at
global level. For ALDI, it will help in gaining high income and revenue by providing new
services and products to their customers.
Benefits and drawbacks of globalisation for increasing business growth
According to the view of Crane (2014) Globalisation is the term which is used to describe
how countries, people and businesses regulate in all over the world that are being more
interconnected with technology, transportation, media and global finance. This will make easier
for products, services, ideas and people related to traditional boundaries. There are various
benefits and drawbacks while expanding business operations at international level.
Benefits of globalisation:

 With the help of globalisation, ALDI can easily expand their business operations and its
functions at global level and also they are share effective ideas and technologies that help
them in making new products.
 Globalisation assist ALDI for adopting social and cultural factors while expanding
business at another nation due to this they are capable for providing different types of
goods to their customers.
 With the assistance of globalisation, respective company can attract huge number of
buyers towards unique products and services. It will help them in growing business
operations and its functions at international level.
 At the time of globalisation, there are different organisations try to expand their business
operations and its functions in another nation. Therefore, it will enhancing in job
opportunities in which people can get desired job position in the ALDI Company.
Drawbacks of globalisation:
 When ALDI shift their production to miserable and underdeveloped nations so there will
be trade deficit as the cost of the country’s import can be exceed value of its exporting
activities.
 While organisation expand their business operations and its functions so they have to
analyse customers need and demand who are belong to different countries that make an
effective production procedure and it create complexity in developing goods and services.
 The main drawbacks of globalisation are that there are number of competitors that will
create major issue and problem for an organisation at the time of enter in the new market
place.
 It can lead towards unfair trade working condition by exploiting labours and workers in
underdeveloped countries (Laszlo and Cescau, 2017). When company cut down the cost
of products so respective firm provides unhealthy working conditions and situations
which can lead towards dangerous health hazards.
 In this, the main drawback of globalisation is that there are large number of rivals that
can create major issues and problems for an organisation while entering in new market
place.

Issues and challenges faced by ALDI while expanding business operations
As per the perception of Madhok and Keyhani (2012) there are different issues and
challenges arise which are faced by ALDI so that they need to make proper changes and
alterations in existing strategies and policies effectively. An organisation operate and regulate
their business in international market place, they may encounter various important issues and
challenges that are described as under:
 Leadership – It is required for firm manager is to lead their organisational performance
towards right direction to reach with desired goals. On the other hand, it is complex for
respective organisation is to identify best leadership method with accurate skills and
knowledge that is suitable on the basis of geographic market in successful manner. There
are different environment in country different forms of leadership are required that are
effectively coordinate with language, management style and culture. This will assist in
attracting effective leadership along with various qualities which is very critical in
managing and handling customers. In addition to this, it will create difficulty in
expanding business operations and its functions. It can be analysed that it is one of the
major issue which are faced by an organisation where some of the problems occurs in
leading business functions and operations at the time of expanding firm.
 Legal and regulative structure – Every company have different rules and regulations
which required to be followed by ALDI in order to smoothly run of business operations
and its functions. Sometime, it will create major issue and a problem for company is to
follow various rules and laws while producing products and goods.
 Technology – The level of technological development of nation which directly affect on
attractiveness of ALDI in doing business. Respective organisation may face various
technological challenges for conducting business in developed countries such as training
employees for using techniques which required effective training to develop reliable
workers to access internet and other technology to carry out business operations
(Shenkar, Luo and Chi, 2014). It is necessary for firm is to update their technology that
will help them in acquiring higher income and profitability effectively. Such are major
issues and challenges which are faced by ALDI in order to expand business operations
and its functions.