International Business and Globalisation- EDF

This presentation covers the concept of globalisation and its significance as well as impact on the chosen organisation. Moreover, it has also covered Pestle Analysis of EDF in context to internationalism.

Business and Globalisation

Table of contents
 INTRODUCTION
 Background of chosen company
 Globalisation
 Importance of globalisation
 Impact of global trade and globalisation
 Impact of globalisation on chosen company and UK economy
 Concepts, Analytical Tools and Theories of International Business
 Critical Analysis of PESTLE

Table of contents
 International Business Theories
 Critical Analysis of Comparative Advantage or any other International Trade Theory
 International Business Strategies
 Critical evaluation of International Business Strategies
 Entry Mode Strategy into International Business
 Recommendation
 CONCLUSION
 REFERENCES

INTRODUCTION
In business, the concept of globalisation is said to be the organisations conducting their business
operations internationally or at global level. This presentation is based on the different aspects of business
and globalisation and in order to demonstrate these different prospects, EDF is taken into consideration
which is the biggest generator of Zero Carbon Electricity in the Britain, UK (Chaniago and Efawati, 2022).

Background of chosen company
 Electricity de France (EDF) is taken into account which is a multinational electric
utility organisation of France and is also operating within the United Kingdom.
 The respective company was founded in the month of April in year 1946 by
Marcel Paul. EDF Energy provides the electricity as well as gas to 6 million
customer-base in the UK.
 The company is also generating energy from coal power stations, 8 nuclear plants
along with some of the renewable that are generating around 20% of the energy
of the United Kingdom (Cherunilam, 2020).

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 It is also engaged in the process of generating zero carbon electricity
from nuclear, wind along with the solar in order to facilitate in cutting
UK carbon emissions to nothing.
 Within the company, there are more than 10000 employees and it is
headquartered in London, England.
 The company is generating around 84.5 billion euros in the revenues
in the year 2021 and there was 22% increase in these revenues
comparative to previous year.

Globalisation
Globalisation has enabled the companies
to be specialised and to enhance the level of
research and development, innovation as well as
capital within their output
Importance of globalisation:
 Greater choice for consumers
 Employment opportunities

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Impact of global trade and globalisation
 Enhanced business opportunities: This puts
positive impact on company as it can enhance its
business at other locations also where they get
talented and skilled employees to perform business
operations, adopting of different tradition and culture
at workplace for effective outcomes (Feldmann and
Morgan, 2022).

Impact of globalisation on chosen company
and UK economy
While doing globalisation, there can be
favourable and unfavourable impact on EDF and
economy of the United Kingdom at time of achieving
business objectives. Competition is positive impact of
globalisation as it support the organisation in
improving its energy supply and services and their
quality due to increase in global competition (Levius,
Safa and Weeks, 2018).

Critical Analysis of PESTLE
 The tool of Pestle Analysis helps in analysing impact of macro
environmental factor that influences functioning of business (Sauvola
and et.al., 2021). There are 6 factors in Pestle analysis and impact of
different factors is described as below:
 Political factors: The guidelines of UK government regarding
pandemic situation of COVID-19 such as social distancing, economic
lockdown has greatly impacted business operations of EDF as at that
time there was reduction in sales of company.

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 Technological factors: EDF is using highly updated technologies
while performing business functions which saves time and cost of the
business and brings positive impact on it.
 Legal factors: EDF is working in an ethical environment by
following employment laws and regulations framed by UK
government which creates good brand image of company at market
place.

International Business Theories
Absolute Advantage theory is based on
notion of enhancing efficiencies in production
processes and was introduced by Adam Smith in
1776 who stated that manufacturing of a product
with great efficiency in comparison to other nations
at international level is highly advantageous
(Timothy, 2019).

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 The Heckscher-Ohlin theory is an economic theory
which states that nations export what they can most
plentifully and efficiently produce. This kind of
international business theory is used for evaluating trade
and specifically trade equilibrium between two nations
having different nationalities and natural resource

Critical Analysis of Comparative Advantage
or any other International Trade Theory
 Comparative Advantage is a theory of International business
that favours relative productivity (Wang and et.al., 2022). As per
this theory, a nation with maximum absolute advantage in
generating more than one product in comparison to another can
still trade with another nation with less efficient approaches for
creating such product which is readily available in first for
enhancing its productivity.

Critical evaluation of International
Business Strategies
International business strategy is concerned with planning and
concentrating on exporting products as well as services to foreign markets.
This also acts as a guide for business transactions which take place between
organisations in different nations. There are different international business
strategies such as multidomestic strategy, global strategy, transactional
strategy and international strategy. Multidomestic strategy is a marketing
approach used by MNCs where each company develops its own marketing
strategy on basis of differentiated needs of every nation

Entry Mode Strategy into International
Business
 There are various modes of entry into international business and some
of these are direct exporting, joint ventures, foreign direct investment,
licensing and many more.
 Direct Exporting: It includes exporting of products and services to
other international market for expansion of business.
 Foreign Direct Investment: Through this entry mode, organisation
can enter into overseas market by investing in another country and this
strategy is possible through merger as well as acquisition.

Recommendation
From above discussion, it is recommended to managers of EDF Plc that
the company should use entry mode of Foreign Direct Investment which will help
company in its business expansion at international level. The company is also
recommended to follow theories of international business which will help
company and economy of country in boosting its efficiency and productivity
within the workplace.

CONCLUSION
From the presentation, it has been concluded that globalisation has enabled the
companies to be specialised and to enhance the level of research and development, innovation
as well as capital within their output. This presentation has been covered the concept of
globalisation and its significance as well as impact on the chosen organisation. Moreover, it
has also covered Pestle Analysis of EDF in context to internationalism.

REFERENCES
 Chaniago, H. and Efawati, Y., 2022. The implementation of integrated marketing
communication on retail business: Moslem consumers' perceptions. International Journal of
Business and Globalisation, 30(2), pp.187-206.
 Cherunilam, F., 2020. International business. PHI Learning Pvt. Ltd..
 Dwyer, L. and Čavlek, N., 2019. Economic globalisation and tourism. In Handbook of
Globalisation and Tourism. Edward Elgar Publishing.