Impact of Global Integration on Business Organisation

This article discusses the implications of global integration on business organisations and the impact of international trade on domestic products and services. It explores the key differences between organisations working in different sectors and industries, as well as the responsibilities and strategies employed by organisations operating globally. The article also examines how the performance of national economies can affect business activities and the measures taken by governments to influence these activities.

Business Organisation

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
1.1 Key differences between organisation working in different sectors and industries.........1
1.2 Assessment of responsibilities of organisation working globally....................................2
1.3 Strategies employed by organisation operating globally .................................................3
TASK 2............................................................................................................................................4
2.1 Performance of national economy impacts on activities of business organisation..........4
2.2 Measures taken by government to affect activities of BO...............................................5
TASK 3............................................................................................................................................6
3.1 Implication of global integration on BO..........................................................................6
3.2 Effects of international trade on domestic products and services ...................................6
3.3 Global economy impact on business (review)..................................................................7
3.4 ICT technologies assessment............................................................................................8
TASK 4............................................................................................................................................8
4.1 Review of global environment of business operations.....................................................8
4.2 Strategies to solve issues impacting business...................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Globalization has made all business organisations to expand their business operations on
international scale. Primark is a retail fashion chain of the United Kingdom which sales clothing
products for men, women and children. The company was founded in 1962 and it has more than
300 stores in the country. The business organisation provides clothes and accessories at low
prices. Present report describes about differences between companies working in different
industries. Further more, strategies for organisations operating globally have been evaluated.
National economy's impact on businesses has been explained in the report. More
over,international trade impact on products have been illustrated. Assessment of ICT
technologies on globalization has been done. Strategies to resolve the issues impacting
operations of business have been explained.
TASK 1
1.1 Key differences between organisation working in different sectors and industries
Difference between various business organisations can be evaluated according to their
sectors in which these companies are working. Primark is one of the leading retail chain in
United kingdom (Kalman, 2014.). The business organisation is working in private sector of the
country. Sectors can be classified as public, private and NGOs. Private sectors are governedby
government and these rae not oriented to profits. Private sector of the country can be categorised
as follows:
Sole traders
Sole traders sector is the most popular type of business organisation in which work like
plumbing, cleaning, electricity work is done. In this sector generally personal services are given.
Starting a business in this industry requires low amount of money (Barron, Pereda and Stacey,
2017) . These businesses are owned by single person and do not posses large number of
employees . These businesses are non shareable and controlled by an individual. Profit
generated form these companies is very low.
Partnership
This type of business entities are held by two or more persons. Agreement is signed
between partners to define the roles and responsibilities of each one. These business
organisations are associated with accountants in which partnership is easy to be maintained.
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Features of this sector is profit sharing,specific responsibilities of partners, proper regulations
etc. Profit gained from these businesses is shared equally among all.
Companies
Companies are generally operated at large scale. Starting a business in this type of sector
requires large amount of capital. Primark is example of big business organisation which is
working at internation scale. Complies obtains large amount of revenue and profits.
Non profit organisation
Non profit organisations are voluntary business which do not work to gain profits. These
business are started for public welfare in terms of eduction, culture and various services for
public(De Massis and Kotlar, 2014) . Funding for this kind of businesses are provided by local
communities.
1.2 Assessment of responsibilities of organisation working globally
Primark is leading business entity of the UK. Th company is operating its business in
local market of UK. It is planning to expand its business in global market. There are some
responsibilities of organisation which are as follows:
Share holder's Responsibility
Share holders are pillars of any business enterprise. It is required that Primark should
focus on some responsibilities before expanding it business globally . The company should
consider shareholders responsibility in terms of how they want to control their business
activities.
Customer responsibilities
Customers constitutes main part of any business company. Primark when operating
globally have to consider neds and expectations of consumers. Company should give better
experience to customer for getting success. In order to gain customer loyalty organisation should
provides high quality of products.
Employees Responsibilities
Key strength of any business organisation are employees. Responsibility of the company
will increase while experting business globally. Primark have to hire other countries people after
expanding their business in global market. Equal opportunities should be provided by company
to all the employees. Fair payment should be given by organisation to all employees.
Suppliers responsibilities
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Operating business in new country, company will get new suppliers. Good relationship
with suppliers is must for company to get success in it business operations. This will help
company to gain more profit and revenue (De Massis and Kotlar, 2014).
Environmental responsibilities
Environmental situation is the big issue of concern for company before exploring its
business in new region. It is the foremost duty of the organisation that is should take care of
environment. Its business activities should not affect environment in any ways.
Ethical responsibilities
Company must ensure that its business operations should not affect ethical standards of
local area people. Defective products and overprices products should not be distributed by
organisation.
1.3 Strategies employed by organisation operating globally
Primark should make some strategies to operate itsbusiness globally. Rapidly increasing
globalisation require organisation requires organisation s to make some strategies to compete in
global market. Some strategies are as follows: Policy for human resource : Company should make strong human resource management
policies in order to maintain good relationship with customers. Effective human resource
will help organisation to build relationship with customers. Policy for Ethics: Ethical standards of the area should be analyse before starting
business operations in new country (Westwood, Jack and Frenkel, 2014). It is must for
company to identify ethics of the new place so that customer satisfaction could be
achieved. Information about customers taste : Business organisation need to collect information
about local are consumer of particular country. This information will support company to
make product according to the preferences of customers.
 Use of modern technologies: Company should make use of modern technologies to make
enhancements in products. Technologies will support organisation to get success in it
business.
Organisation can also use PESTLE analysis tool to identify the external factors of particular
country that can affect business operations (Bennett and Joyce,eds., 2013). This tool will assist
company to find out economical, political, environmental, legal, technological factors that can
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influence business of Primark pvt ltd. Organisation should make global strategies to get position
in global market. Some global strategies are as follows:
 Policies used by company in global market should be same as of local market.
 Business organisation should make use of marketing mix to make strategies (Marketing
mix. 2015.). Culture and national difference should be given preference while making
strategies.
 Design of new supply chin management for new place to distribute product efficiently.
Global strategies will help company in making clear objectives about expansion of business in
new country.
TASK 2
2.1 Performance of national economy impacts on activities of business organisation
Increased globalisation is making all the countries close to each other. Many countries are
taking steps to connect their businesses in order to improve economic conditions. Nation
economy of new country can affect the business activities of Primark retail. National economy
describes total economical state of the country (Bennett, and Joyce, eds., 2013). There are many
economical factors which impact business operations of the organisation. Some economic factors
are as follows: Monetary policy : This policy highly impacts the purchasing power of customers. It also
impact buying power of business organisation. Economical policies ,made by
government of country affects rates and price of raw materials. If price of goods are
according to business requirements then it will hep in growth of business. Fiscal policy of
particular region also impacts growth of business. Income of consumers: Income of consumers is also a major factor which affects the
business activities of the organisation. If income of people is low then they will not prefer
buying low priced products and vice versa. Productivity of the the organisation also gets
influence due to income of consumers. Demand : If the economy of country is strong and the people have enough income
sources then it creates demand. This affects production process of the company. It creates
load on organisation to produce according to the increasing demand. Company have to
make changes in its product according to the latest trends.
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 Manufacturing costs: Low Economy of the country create problem of manufacturing
cost. Employee demands payments which can not be given to them. This problem causes
failure of business operations (Ramadani, Rexhepi and Dana, 2014).
 Rate of interest , inflation rate and recession are also the factors that can influence
business activities of organisation.
2.2 Measures taken by government to affect activities of BO
Many polices made by government that can impact the business activates of Primark
retail company . Policies to reduce recession problem, inflation crisis, improvement in lifestyle
of people etc. Government of many countries are continuously taking step to provide
employment. Ito accomplish these goals government takes some action which can impact the
regular business activities of Primark. Some of the factors are listed below:
Policy for employment : Government of any country focuses on increasing employment.
Government of UK is trying to give employment to the unemployed people by providing them
training and eduction on business.
Policy for local community : Government helps in providing funding to people who are
suffering from unemployment. It also helps in solving social problems of people..
Policy for inflation control : Balance in the economy is must for any country. Government
always tries maintain that balance (Ramadani, Rexhepi and Dana, 2014). This balance is
maintained by tool like interest rates. If there is possibility that people can spend too much on on
product, government imposes taxes on these products. Due to this reason purchasing power of
customer decreases and this impact overall business activities of the company.
Policy for education and upbringing : Government make many polices regarding educating
people and making them advanced.
Policies for region : Many initiatives are taken by region authorities to rise the region which is
lacking in business activities. Sometimes competition also created by government in order to
identify the best company of the country.
Initiative programs : Government provides many initiatives to boost up business organisations
in country (Casson, ed., 2013). Various training sessions and programs are conducted by
government so that people can enhance their skills in business.
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TASK 3
3.1 Implication of global integration on BO
Global integration is defined as combing various business activities across the world so
that same business methods can be used . Global integration continuously raising demand for
best quality product in the world. This integration can highly influence the business activities of
Primark. Global integration is necessary now a days because of rising competition in the market.
Some implications of the integration is as follows:
 Global integration helps in supply of goods and rough material. It also supports in
supplying good worldwide.
 It support in managing system of the business enterprise.
 Employees training and development programs are managed easily through global
integration.
 It also help in finding new customers to buy products . Revenue of the company increase
through it. Organisations find new buyer through integration and it helps in gaining profit
for the company.
 Integration of businesses decreases labour cost. In the global market company can get
low cost labour which helps company in getting more profit.
 Testing of new product will become easy for Primark organisation while operating in
global integrated market (Watson, 2017).
 Import and export of good and services become easy for the business organisation.
 Threat of new entrants and barriers in trade reduces due to integration of business.
 Global integration helps in maintaining quality and standards of services which are
provided by companies of other countries.
However, integration of businesses have some negative impacts also. Business companies
provides high quality goods in international market where as low quality product are provided to
local people.
3.2 Effects of international trade on domestic products and services
International trading of goods and services has been increased in previous years. Export
and import business of various regions have been increasing rapidly. This trading of goods and
services have both positive an negative impact on Primark (Dicken, 2013). Some of the impacts
on domestic products and services are as follows:
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 Increase in import business increase the options for people to choose the best quality of
product. Consumers get various alternatives so that can compare each product and choose
the best one.
 Import of good have negative impact on domestic product. If people find foreign product
are less expensive than the domestic ones then they will not buy domestic products. Due
to this reason domestic products will loose their place in the market (Percy and Shortland,
2013).
 Competition will also increase in market due to high availability of imported and
domestic products. Quality of domestic product will increase due to international trade.
Local area businesses will make enhancements in their products in order to compete in
the market.
 Higher export rate will make unavailability of good for the local population. Company
will not be able to fulfil the needs of local consumers.
 Popular brands would take the place of local brands due to which domestic products will
loose their importance.
3.3 Global economy impact on business (review)
Rapidly increasing globalization is connecting all the population of world. Production
methods and interaction ways have changed drastically. Global economy can impact Primark
enormously. It can affect the business activities of company in many ways. Every day increasing
technology is helping people to find out information about new product in the market. Global
economy impacts international trade of products among countries. It increases competition
among business entities worldwide (Follett, 2013). Due to increased global economy companies
are trying to provide best services and product than others.
Organisations try to make product unique and different for others. Globalization has
made people to look for hundreds of brands to buy a single product. Globalization increase
demand of product due to which sometime companies sometimes unable to provides product in
market. Rapidly increasing economy is helping companies in making huge profits. Internation
trade is supporting businesses to make strong bond with their consumers. However, risk is also
increasing due to speedily increasing global economy. Global economy is also raising demand
of innovation in each product. Primark is continuously making innovation in its products to gain
more customer attraction. Globalisation is also increasing market share of each company.
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3.4 ICT technologies assessment
Information and communication technology plays vital role in promotings globalisation.
It helps in building strong networks among companies by providing them communication
platform. Use of technology in making products helps Primark in convincing it customers.
Technologies helps organisation in monitoring workers from distance. Rise in use of internet has
made organisations in analysing current trends in market (Fernie and Sparks, 2014). ICT
supports businesses in finding new innovative ideas to grow up their productivity. Companies
can easily connect with its customers due to information and communication technology. It also
helps in building strong connections with other business parties. ICT is supporting globalization
in following ways:
 Strong networks of communication is speeding up the global economy.
 Managing of business globally has become easier. Process of businesses are speeding up.
 It has provided shorter processes to do business in internation market.
 Virtual business organisations have been created by ICT.
TASK 4
4.1 Review of global environment of business operations
Primark is currently operating in United kingdom which is one of the leading market in
the world. Global environment of the country is business friendly. Domestic market of the
country is very constructive. There is strong competition among brands of the country but this
competition does not affect business activities of the company. Researches have concludes that
many foreign companies wants to grow their business in UK. Many foreign organisations have
established their businesses in the country (Casson, ed., 2013). Domestic business of the country
are trying to help local area people's demand. Impact of political factors is also very high on
Primark. New technologies are supporting local as well s global businesses of the region.
Government is also giving full support to business organisations. Many policies have been made
by government in order to maintain business friendly environment. Training and seminars are
also conducted by government to provide high skilled workers. Though country has suffered
from economic recession yet it has given support to business organisations. Free trad is also
provided by authorities to make international trade process smoother.
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4.2 Strategies to solve issues impacting business
Many factor are affecting business activities of Primark in the country. UK is one of the
best place for business organisations. Effective strategies are required for any business venture to
survive in competition of market. Primark can follow some strategies which are listed below:
 Primark should focus on making innovative product . This can be done by implementing
innovation in its production process (Watson, 2017). Company should concentrate on
creativity in products.
 Technology is an important factor now a days. Every business organisation is using
automated processes to improve their productivity. Technology saves time and helps in
increasing productivity. So organisation should use techno,logical tools to enhance its
business operations (Follett, 2013).
 Company should expand it business in other markets too. Expansion will help
organisation to create new products which in turn increase consumer base.
 New product should be launcher by company in order to satisfy consumer needs.
CONCLUSION
From the above report it has been concluded that business organisation works with
various outcomes and results. In this context, present report is includes differences in working of
different sector businesses within the industrial context. Furthermore, it summarizes about
strategies that employed by the firm to operate functions and operations in global market.
Therefore, the chosen firm has opportunity to enhance profitability and revenue at workplace.
Moreover, it evaluated about measures that are taken by government and influence to activities
of company in successful manner. In addition to this, there are certain implications also implied
that includes for integrate global outcomes within the organisation. Hereafter, the organisation
can easily assess impact of global economy on the enterprise performances. At last, report
carried review of global environment in which current business is operating there functions and
operations. Hence, strategies also adopted that taken for address issues which affect to activities.
REFERENCES
Books and Journals
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Kalman, Y. M., 2014. A race to the bottom: MOOCs and higher education business models.
Open Learning: The Journal of Open, Distance and e-Learning. 29(1). pp.5-14.
Barron, A., Pereda, A. and Stacey, S., 2017. Exploring the performance of government affairs
subsidiaries: A study of organisation design and the social capital of European
government affairs managers at Toyota Motor Europe and Hyundai Motor Company in
Brussels. Journal of World Business. 52(2). pp.184-196.
De Massis, A. and Kotlar, J., 2014. The case study method in family business research:
Guidelines for qualitative scholarship. Journal of Family Business Strategy. 5(1). pp.15-
29.
Westwood, R., Jack, G. and Frenkel, M., 2014. Situating core-peripheral knowledge in
management and organisation studies. In Core-Periphery Relations and Organisation
Studies (pp. 1-32). Palgrave Macmillan UK.
Bennett, T. and Joyce, P. eds., 2013. Material powers: Cultural studies, history and the material
turn. Routledge.
Ramadani, V., Rexhepi, G. and Dana, L. P., 2014. Ethnic entrepreneurship in Macedonia: the
case of Albanian entrepreneurs. International Journal of Entrepreneurship and Small
Business. 23(3). pp.313-335.
Casson, M. ed., 2013. The Growth of International Business (RLE International Business).
Routledge.
Watson, T., 2017. Sociology, work and organisation. Taylor & Francis.
Dicken, P., 2013. The geography of enterprise. de Smidt, Marc and We ver, Edgar (eds), The
Corporate Firm in a Changing World Economy. pp.234-44.
Percy, S. and Shortland, A., 2013. The business of piracy in Somalia. Journal of Strategic
Studies. 36(4). pp.541-578.
Follett, M. P., 2013. Freedom and co-ordination (RLE: Organizations): lectures in business
organization (Vol. 15). Routledge.
Fernie, J. and Sparks, L., 2014. Logistics and retail management: emerging issues and new
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<http://www.cheapassignmenthelp.co.uk/various-elements-of-the-marketing-process/>.
[Accessed on 17th June, 2016].
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APPENDIX
Primark is a retail fashion chain of the United Kingdom which sales clothing products for men,
women and children. It is an international company which subsidiary firm of AB foods.
Headquarter of the organisation is I n Dublin. It was founded in 1962 . Products of the company
are:
 Cloths for women
 Cloths for children and new born
 Cloth for men
 Home decoration products
 Accessories and footwear
PESTLE : It is a tool which can be used by Primark to identify he external factors of particular
country that can affect business operations. It can help in determining political factors, social
factors, economical factors, legal factors, and technological and environmental factors.
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