Impact of Technology and Social Media on Business and Globalisation on UK Economy

This report discusses the impact of technology and social media on business in the last ten to fifteen years and the impact of globalisation on the UK economy. It covers topics such as the influence of social media on customer loyalty, cost reduction through technology, improved communication and connectivity, expansion of business, increased competition, increased trade, availability of products, and more. It also highlights the negative effects of globalisation, such as increased competition, mass migration, global economic cycle, growing inequality, and impact on natural resources and the environment.

Business and
Management

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
SECTION- A...................................................................................................................................3
Evaluation of the way development or changes in technology and social media have impacted
business in last ten or fifteen years..............................................................................................3
SECTION-B....................................................................................................................................5
Impact of globalisation on specific country that is UK...............................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business refers to several activities that are undertaken by individual to exchange
products and services for earning sufficient amount of profit margin. Management is important
process or function that needs to be performed by company for making effective and optimum
utilisation of physical and human resources for achievement of pre set objectives of firm. There
are several changes and development in technologies that have impacted upon business operation
and strategy. This report covers answer of two main questions that is impact of development in
social media and technology on products and services and operation of business. Second is that
the way globalisation have impacted particular country that is UK.
MAIN BODY
SECTION- A
Evaluation of the way development or changes in technology and social media have impacted
business in last ten or fifteen years
It can be stated that there are several changes and development in technologies that have
makes life’s of people better and advanced by providing them ease and comfort to complete a
particular task. Social media is a platform that is used by millions of people several times in
order to searched information, have funs or entertainment. Smartphone is used by each
individual to gain access on social media such as Facebook, Twitter and instragram in order to
connect with different people that are staying away from each other or for any other purpose
(Lombardi, 2019). Therefore, use of social media by large number of individual have provided
opportunities to organisation to market or promote their products and services through such
medium as it saves time, cost and efforts.
Customers loyalty: It is one of the effective and quick method to influenced maximum or
diverse individual to select specific products and services of firm for satisfaction of their
respective requirements. Right social media strategy adopted by enterprise can contribute in
growth and success of enterprise and enhancing reputation of business. Due to digital
transformation business are able to show the way their products and services have changed life
of other people living in society. New customers are easily review feedback, comment, likes and
share of particular brand products and services thus able to make correct or right decision to
purchase for fulfilment of their basic requirements. New, innovative technologies have
contributed towards development and maintenance of strong relationship with diverse customers

as company can easily share its crucial information such as product launch or promotion offers
through social media platform or email marketing. Attractive content helps in grapping attention
of new as well as existing customer’s thus it impact huge on performance and profitability of
business (Eckert, 2017). Therefore, innovative technologies and social media is best platform
that helps in creating strong brand awareness, customers engagement and loyalty thus it can be
stated that impact of social media on performance of enterprise in immeasurable.
Reduce cost: Another impact of technology and social media platform is that it have reduced
overall cost of business such as all back office function can be performed by use of advance
technologies. Companies are using management information system to keeps record of their
overall operating expense, net sales volume and profit that they have earned during particular
year. Advancement technologies have contributed in maintenance of quality of products and
services by reduce amount of wastage production so that maximum valued can be delivered to
end users. Social media have reduce cost of advertisement of products and services as no
requirements of bill board, TV advertisement is required to induce people to select specific
products of firm. Therefore new technology and social media have cut overall cost of firm and
enhance profit margin of firm.
Improve communication or connectivity: Communication is most important process that is
required in firm to share relevant information internally or externally. Such as manager have to
share policies, rules and regulation or procedure of firm to employees so that they can performed
their task in most effective manner. There are other information that is profit and loss, market
share of firm and launch of new products which needed to be transmitted by firm to external
bodies such as customers, investors and government. Innovative technologies have contributed in
quick connection and communication of information from manager to employees, customers and
government for smooth operation of business (Assegaff, Kurniabudi and Hendri, 2016). Social
media is a cheapest technique that helps in sharing crucial data and information of firm through
its official websites, emails. Customers can also share their respect feedback regarding their
experienced of products and services of firm which helps company to know about key areas in
which it lack that needs to be improved for better performance of organisation.
Contribute in expansion of business: Companies are able to provide 24 hours services to
customers or people by use of social medium or its own official website. It has also offers
opportunities to consumer to select products and services as per their requirements while staying

at home. Thus, it has provided ease and comfort to large number of people as products are
delivered at their doorsteps within limited time frame and cost. Company by use of new
technologies is able to outsource its large number of work in order to reduce cost due to
availability of cheap labour and other resources. Innovation and social media platform have
motivated enterprise to expand their business operation internationally in order to earn more
profitability and market share (Solarin, 2018). It is not necessary for a company to have a
physical presence as innovative technology and social media have helped individual to run and
operated their business with limited amount of capital and resources. Thus now enterprise does
not have to maintained stock of large number of products or warehouse to meet customers’
needs. New technology such as social media have enhanced customers experienced and
satisfaction level thus enhanced overall sales volume and profitability of firm.
Increased level of competition: Development in technology have increased competition level
among business as each individual is coming up with new and innovative ideas to satisfy needs
of customers. Thus most of the companies in order to retain their market share have to adapted to
recent technologies and increased their presence in social sites so that customers can be aware of
brand reputation and products in which company deals.
There are tremendous changes and innovation in technology and social media platform
that have lead to increase in sales volume and profit margin of business.
SECTION-B
Impact of globalisation on specific country that is UK
Globalisation means more interdependency, integration between different countries of
world or interconnection among international market. It has provided opportunities to various
businesses to enter into new countries or economies for earning maximum profitability and
market share. Globalisation is policies of government that is made to encouraged import and
export of trade or exchange of products and services from one country to another for fulfilment
of requirements of several individual staying across globe (Cantwell, 2017). There is several
impact of globalisation on UK economy which can be illustrated as follows:
Increased trade: One of the advantages or positive effects of globalisation is that increased in
exports of specialised product such as financial services, nuclear power component and video
games to other countries. Thus, globalisation have provided opportunities to exchanges its excess

and specialised products at higher prices to other countries in order to enhance their profit
margin or economy growth.
Availability of products: Globalisation has provided opportunity to UK to import products or
good that are limited in country to satisfied needs of people (Perraton, 2019). Therefore people
have wide varieties of choice to select best possible option for fulfilment of their respective
requirements.
Helps in reducing cost of enterprise: Another positive impact of globalisation is that it helps in
reducing overall cost of firms that are operating in UK as they can easily outsources their work
to countries where labour are available at low cost so that maximum valued can be delivered to
end customers. Most of the companies of UK have outsources some of their work to different
countries in order to reduce their actual cost and enhanced their profitability.
Migration: People can easily move from one country to another because of globalisation thus
several skills gaps within enterprise have been filled by migrates. There are several industries in
UK that is NHS and fruit packaging that are facing shortage of labour so free movement of
people from one country to another contributed in filling vacancy and effective operation of
business.
Contributed in economic growth: It can be stated that globalisation have lead to economic
growth as number of export of products and services have increased that contributed in adding
value to GDP of country. People of UK are able to learn about foreign culture and tradition thus
it helps in enhancing their living standard (Wang, Li and Suomi, 2016). Lot of employment
opportunities have also be generated due to globalisation due to increased in demand of products
and services to export in international market for earning maximum profitability.
Increased awareness among people: Most of the people in UK have become aware of
ineffective utilisation of resources because of globalisation. So, they have taken several steps to
conserve resources and environment so that existing as well as future generation can have better
lifestyles. It has promoted sustainable use of resources and new technologies to manufacture
products so that no harm or danger can be caused to people. Thus, globalisation have contributed
in initiating several steps by firm, government and local residents to protect natural resources and
environment of UK.
Despites so many positive impact of globalisation there are certain areas which have been
negatively impacted on UK economy that are illustrated below:

Increased level of competition: Due to globalisation local companies have to suffered a lot of
competition in order to sustain its business operation. Customers are forcing local companies to
reduce their prices as they have alternative option or others firms that are offering qualitative
products and services at reasonable rates. Thus, many local companies in UK are facing situation
of less sales and profit margin because of globalisation.
Mass Migration: Large number of people from different countries due to free movement of
people migrating to UK for search of job that have created shortage of employment opportunities
for local residents. Increasing number of migrant have also impacted on price of House as due to
increase migrant prices of house are increasing on continuous basis thus local communities are
not able to get home at affordable prices (Young, McLeod and Brady, 2018). Therefore, mass
migration has resulted in decreased in overall income, availability of employment opportunities
within economy.
Global economic cycle: It can be stated that global economic cycle has adversely impacted UK
economy such as UK mostly trade with EU and US thus deep recession in these country lead to
decreased in overall export of country or reduce value of GDP. UK is affected by financial
crunches faced by other countries so it has damaging impact on growth and sustainability of
economy.
Growing inequality: Increasing migration of people and globalisation has increased inequality
and poverty within economy as only 1% of people are gainer of higher income share. Thus, it
can be illustrated that due to globalisation local people disposable income have decreased to
most extend.
Impact on natural resources and environment: It is another negative impact of globalisation
on UK is that ineffective utilisation of limited resources in environment. Global warming is
increasing at rapid stage due to growth and expansion of enterprise for achievement of their
respective goals. It has created threat on availability of resources for future generation and better
health of person living in UK (Kollarova, 2020). Most of the firms in order to maximise their
profit are exploiting natural resources or emission of carbon that are harmful for health and
welfare of individual. Therefore globalisation have lead to misuse of resources and use of
harmful chemical that are dangerous for environment as well as human being.
CONCLUSION
It can be concluded from above analysed that technologies and social media have helped

enterprise to expand their operation and profit margin by satisfying needs of customers in best
possible manner. The above report also illustrated that companies by making effective utilisation
of such technology and social media can reduce their cost and enhances their brand reputation in
mind and heart of customers. At last it can be concluded that globalisation have impacted
positively and negatively on UK economy.

REFERENCES
Books and Journals
Assegaff, S., Kurniabudi, K. and Hendri, H., 2016. Social media success for knowledge sharing:
Instrument content validation. International Journal of Electrical and Computer
Engineering, 6(5). p.2447.
Cantwell, J., 2017. Innovation and international business. Industry and Innovation, 24(1). pp.41-
60.
Eckert, R., 2017. Business Innovation Management. Geschäftsmodellinnovationen und.
Kollarova, D., 2020. Globalisation and its impact on the creation of sustainable points of
purchase. In SHS Web of Conferences (Vol. 74, p. 04011). EDP Sciences.
Lombardi, R., 2019. Knowledge transfer and organizational performance and business process:
past, present and future researches. Business Process Management Journal.
Perraton, J., 2019. The scope and implications of globalisation. In The Handbook of
Globalisation, Third Edition. Edward Elgar Publishing.
Solarin, S. A., 2018. Determinants of military expenditure and the role of globalisation in a
cross-country analysis. Defence and Peace Economics, 29(7). pp.853-870.
Wang, P., Li, H. and Suomi, R., 2016, June. Value Co-Creation in Business via Social Media: a
Technology Affordance Approach. In PACIS (p. 355).
Young, J. A., McLeod, D. A. and Brady, S. R., 2018. The ethics challenge: 21st century social
work education, social media, and digital literacies. The Journal of Social Work Values
and Ethics, 15(1). pp.13-22.