Globalisation and Business Strategies

The assignment examines the concept of globalisation and its effects on business environments. It highlights different strategies that can help companies achieve success in new markets, while also discussing the challenges and benefits of globalisation. The research identifies various market research techniques, including sample market segment testing, to understand customer expectations and make corrective actions. It provides recommendations for businesses to formulate strategies for growth in emerging markets.

Research Project

TOPIC........................................................................................................................................................3
INTRODUCTION.....................................................................................................................................3
Research Aim.........................................................................................................................................3
Research Objective................................................................................................................................4
Research Question.................................................................................................................................4
Rationale of Research............................................................................................................................4
LITERATURE REVIEW.........................................................................................................................4
RESEACH METHODOLOGY................................................................................................................8
DATA ANALYSIS AND INTERPRETATION....................................................................................11
REFLECTION, RECOMMDATION AND ANALYSIS OF RESERCH...........................................15
CONCLUSION........................................................................................................................................16
REFERNCES...........................................................................................................................................17

TOPIC
“The different strategies employed by businesses to enter emerging markets” – Case
Study on H&M
INTRODUCTION
Globalisation is process by which the world is coming together at one platform where
there are no cultural, social, economic, political and life styles boundaries. It is making world a
global village by blurring geographical boundaries and barriers of cultural to an end. It is also
expanding communication and transportation in result of which distances are reduced
geographically. It has most important impact on economy of nation by making it strong and
competitive in global market. Hennes and Mauritz (H & M) is Swedish clothing retails
multinational company operating at international level. It has clothing range for kids, teenagers,
adults and senior individuals offering wide variety to meet consumer specifications. There are
many different strategies which provide opportunities to enter into new market. Some of them
are as exporting, licensing, franchising, joint venture and Greenfield. Organisation will prepare
detailed plan so that extensive research is carried out so that growth can be achieved. There is
market analysis which research on factors like feasibility study, risk management, resources,
competition and scope of growth. These strategies helps business to study all factors related to
operations and manage risk elements so that success can be achieved. The first and foremost step
in entering into new emerging markets is conducting extensive market research so that best
divisions can be chosen so that success is guaranteed. This research will examine different
concepts and factors of globalisation which will impact business and its operations. This research
will conduct study on identifying different strategies by which H & M and its operations can
process in international market. It will also analyse major challenges that will impact H & M at
the time of entering into international markets and aim at growth and developments for company.
In last it will include business strategies that will helps businesses to overcome challenges while
entering into new segments of international markets (Lebedev, Peng, Xie and Stevens, 2015).

Research Aim
“To evaluate different strategies employed by businesses to enter emerging markets. A
case study on H & M”.
Research Objective
 To determine the concept of globalisation.
 To identify different strategies by which H & M can lead international market.
 To analyse major challenges that will be faced by H & M at the time of global expansion.
Research Question
 What is the concept of globalisation?
 What are the different strategies by which H&M can lead international markets?
 Which are the major challenges that will be faced by H&M at the time of global
expansion?
Rationale of Research
This main purpose of selecting this research project is to improve academic knowledge
on Globalisation and identify its benefits so that businesses can take its advantage. This will also
improve communication and analytical skill of researcher that will help them in conducting more
effective and worthy research in future. This topic has been selected by researcher as they have
learnt about the same topic in some past course which has raised interest for it. This has
motivated them to choose topic on Globalisation. Further by conducting research on this topic,
H&M can gain knowledge about the key aspects associated with globalisation and easily enter
the emerging markets with lesser possibility of failure (Hohenthal, Johanson and Johanson,
2015).
LITERATURE REVIEW
Concept of globalization.
In the views of Tejvan Pettinger,2017, Globalisation is the process in which individuals,
trade and goods or services are spread widely throughout world, ensuring better interaction and
integration between world's governments, cultures and economy. There are different types of
globalisation like economic, political and cultural which connect different countries together and

end respective barriers so that there is free and fair businesses between nations. There are
different benefits of globalisation like Improved Living Standards which is main benefits of
globalization is sudden rise in living standards of individuals in developing and under developed
nation. Another one is increased Creativity and Innovation in international competition that can
enhance creativity and innovation, ensuring companies to have competitive advantage. This
benefits works toward quality and value is improved in products and keeping costs low as
possible. The free movement of employees and investment means that ideas from developing
countries can achieve innovation around world. There are many challenges of globalisation
which a company needs to overcome so that it impacts is minimum. One is, Loss of Cultural
Identity while globalization has ensures that foreign cultures is easier to access, it has also made
that cultures to meld together. The success of certain cultures reforms and lifestyle in the world
have caused other nations to adapt their lifestyles and cultures. When cultures begin to lose their
differentiated features, there is decrease in global diversity. Job Mobility is one of most common
challenges of global trade system is how it manage shipments of jobs especially in
manufacturing industry, from less developed nations to developing countries. Lower-skilled
workforce which loses their manufacturing jobs in developed regions faces difficulties in finding
new one, comparably compensated work. Language is one of the most effective barriers to
effectiveness of globalisations. The problem involves not only in trading with different countries
but of different languages in same country, it also involves linguistic and emotions, literacy rate,
idioms and dialects etc. Literacy for example, limits the populations of people in a country who
can be targeted through print media of advertising like newspapers, magazines, etc. Many
countries are multilingual such as Canada, Switzerland, etc. with different advertising media for
communicating in different languages (Costs and benefits of globalization, 2017). This language
pattern in nations grows serious problems in effective advertising communication. Despite in the
global there are some common languages which are as follows like Spanish, English, Arabic and
Chinese which is creating big hurdles for international trade and business. The way of
advertising message in promotional tools is perceived differently by individuals even if they
speak same language in common. Advertising is big key for international businesses to survive
and grow in markets so that they are competitive enough to sustain in global markets for longer
period of time.

There are different challenges and benefits of globalisation and there is need that organisations
conduct research so that they can survive and compete in new markets and grow further so that
globalisations creates positive impacts o operations. There are various strategies which will
assists businesses for entering into new emerging market due to globalisation process which is
making this world a global village.
Different strategies by which H & M can lead international market.
According to the view of Peter J. Buckley,1998, In current scenario of world, the concept of
emerging markets represent a significant portion and are growing at much faster rates. However,
Emerging markets have played a great role in exciting global economic growth, especially after
the 1997 currency crisis - which required a refurbishment of many emerging market economies
to become more erudite. Therefore emerging market is refer as economies of countries which are
in the advancement of becoming a developed country and typically are moving toward mixed or
free markets in order to acquire best brand position within competing marketplace (Analyzing
Foreign Market Entry Strategies: Extending the Internalization Approach, 1998). Henceforth
there are several methods to enter into an international market are licensing, exporting,
franchising, joint venture, partnership and son on which lead an organization to improve its
overall performance within competing market in an effective and efficient manner. Therefore,
taking corrective course of action enable an establishments to cope up with its current or
upcoming challenges in a better manner. Some of these are explained below”
Exporting: Under this phase, it is concern with exporting factor which is considered as
one of the ways to enter a new market. In this, concerned parties or companies set up an
export company or use a local distributor in order to trade their product or service from one
region to another. However, founding own export company as well as using a local
distributor are not mutually élite. Apart from this, agents and distributors work closely with
an aim of representing each other interests for attaining increased level of profitability in a
better manner. However, they become the face of an establishments and thus it is important
that the choice of agents and distributors is handled in much the same way as hire a key staff
person. In addition to this, exporting permits an H&M to enter many markets at the same
time without much capital investment that help firm to enlarge its market growth in an

improved way. On the contrary, its downside, however, is that it limits the control over local
market on which firm decided for exporting to – as they wholly depend on distributors and
local buyers.
Licensing: Licensing is a relatively another productive arrangement in which firm
handovers the rights to the use of a product or service to another well-founded. Moreover, it
is a particularly useful strategy if the purchaser of the license has a moderately large market
share in the industry in which a particular company desires or want to enter. Furthermore,
Licenses can be for marketing or production functional areas that impose a huge impact
product or service in an improved way. Although one of the profligate and most profitable
ways to expand a business to foreign markets is to use licensing market entry strategy, it also
has its risks. For example, if a specific establishment brand image might be damaged when
superior don’t have a strict control over the company that purchased the license. However,
with a prudently prepared license agreement, licensing can be a pronounced method for
bigger companies to enlarge their markets. Especially for companies with stronger brands or
for businesses with a unique technology that local players need access to.
Franchising: Franchising is a typical North American process for hasty market
expansion but it is gaining traction in other parts of the world. Franchising works well for
firms that have a repeatable business model (eg. food outlets) that can be easily relocated into
other markets for obtaining maximization of profit with an optimal utilization of resources in
an improved mode. Two caveats are required when considering using the franchise model.
The paramount is that business model should either be very unique or have strong brand
recognition which can be utilized internationally and secondly generate future competition in
particular franchisee for acquiring best position within competitive marketplace. Henceforth,
Franchising is considered as one of the element of business strategy that aid another party to
control a business under brand name. For example, if the franchiser grants franchisee the
right to use brand name and operating system and also they are allowed to use the same
marketing campaigns as well. In addition to this, Franchising is also a good way for bigger
brands to expand, although it demands slightly more investment than licensing. However, it
is still less capital-demanding than setting up a new legal entity.

Joint venture: In this component, Joint ventures are a precise form of partnership that
comprises the conception of a third independently managed company. The another benefit in
this are both the authorized companies or parties agrees to share roles, responsibilities and
many more that help them to maintain an impressive style of coordination or collaboration
among companies as well as help them to achieve its pre-determined goal. Furthermore, not
only responsibilities but in joint venture companies share its profit and loss ratio in an equal
manner which strengthen the relationship of each individual and also it lead them to gain
targeted objectives within stipulated period of time-frame.
Therefore, implication of appropriate strategies enable an organization to obtain profit
maximization and can also expand their market in an impressive and productive style without
any hindrances.
Challenges that will be faced by H & M at the time of global expansion.
As per the views of Pierre De Senarclens,2008, In this present scenario of industry, the
term globalization plays a vital role as it relate with integration and interaction of companies,
governments, economies across the globe. Although, it impose various benefits over organization
yet there are some challenges which H&M faces while operating their function at international
level. The foremost threat which it render is that language barrier and then cultural hurdle which
directly impact negatively over company’s ability in decision making procedure. This is because,
each geographical region has its own beliefs, language, culture that create a possibility of arising
misconception and miscommunication among team member (International Organisations and
the Challenges of Globalisation, 2008). Apart from this, the issue which globalization provides
to organization is that acquiring highly skilled personnel for accomplishing business goal or
objective in a better way. However, less potential or capable individuals brings various problems
within H&M functional areas as they will be less cooperative in terms of adopting novel ideas or
innovative technologies that decreases the firm’s productivity. Additionally, there are several
others which influence company’s decision making process in a negative manner. However,
implementing best strategies help H&M to cope up with all current or emerging trend in an
innovative and creative style within prescribed time limit.

RESEACH METHODOLOGY
Research Philosophy: There are basically two types of research philosophies used in
conducting research (Chittoor, Kale and Puranam, P., 2015). One is pragmatist research
philosophy is based on rationale facts but constructed on social responsibilities which can yield
better results. Another one is Interpretivist research philosophy which is also known as positive
research philosophy focused on identifying solutions of issues using theories and concepts. In
this research Interpretivist research philosophy will be used so that solutions can be find out and
objectives of research can be address. This philosophy used different philosophies to conduct
which fits the requirements of research study and achieve its objectives effectively.
Research Approach: The research approaches are majorly of two types which assist in research
philosophy. First one is deductive research approach which provides complete understanding of
issues with the help of empirical data. Another one is inductive research approach is based on
objectivity in assessing observations by evaluating so that results can be supported. To conduct
this research inductive research approach because it relies on evaluating and observations so that
objectives of research are achieved (Vellas, 2016). This will also helps in assessment of
observations which provides understanding in addressing research issues effectively.
Research Strategy: this is approach to understand the case and issues of research aims so that
objectives can be achieved. For this structured questionnaire will be used so that it focus on
research and put efforts to address issues and its impacts on organisation. Questionnaire will
provides stronger and relevant applications of results on overall research aim. The strategy
behind using questionnaire for survey is to have general approach as there is no specific case for
organisation. This will also assist in researching about case and focus on how observations can
be relates to organisations settings and current situations. This is more generalised approach than
any other research strategy.
Time Horizon: This refers to span of time within which research is intended to complete. There
are two types of time horizons in conducting research. First is cross-sectional time horizon where
there is a pre determined time set to collect data. Another one is longitudinal time horizon stating
that data collection is extended over period of time. In this research cross-sectional time horizon
is used to that focus in on current situations so that objectives can be achieved. This will ensure

that research has more in depth evaluations of results so that it can relate to present issues in
organisation (Marquis and Raynard, 2015).
Research Design: It is defined as framework of techniques which are selected by researcher so
that different components so that research issues are effectively handled. There are broadly two
types of research design that are qualitative research and quantitative research. Qualitative
research design is concerned with addressing issues relating to why. On the other hand
Quantitative research is concerned with statistical tool to have perspective of decisions. In this
quantitative research design is used so that researcher has effective conclusions reached after
analysing numbers so that research objectives are achieved effectively. Another research design
that will be used is descriptive which is responsible in describing situations or case of research
study.
Data Collection: The main aspects in conducting research and achieving objectives depends on
collecting relevant data through apt techniques and processes. There are two ways by which data
can be collected, primary and secondary data. Primary data is that information which is collected
for first time with the help of questionnaire, personal interview, observations, etc. secondary
source of data collection is that information which is already collected by researcher and
published. In this research both sources are used so that objectives can be achieved with the help
of questionnaire so that valid data is collected and secondary data for difficult topics to assist in
research completion (Manikandan and Ramachandran, 2015).
Research sampling: this is the way of selecting respondents for primary data collection by
recording their responses in questionnaire. There are two types of sampling Probable and non-
probable sampling. Probable sampling is technique which uses various methods to select
respondents based on probability. Non-probable sampling is most convenient way of doing
sampling without any method. In this research Random Probable Sampling is used so that is
equal chances for every respondents to get selected in sample. This creates fair chances of each
individual from population to be in sampling.
Research Ethics: As this research study involves primary collection of data so that observations
are relevant. The ethics and principles of research includes that respondents should be informed
about study and have consent to participate. Another is anonymity which states that personal
details of respondents will not be disclosed and linked in outcomes. Last is confidentiality which

states that research results are shares only with those who are interested and stakeholders (Story,
Boso and Cadogan, 2015).
.
Research limitations: The main limitation of research is time given for completing study and
ability to include larger sample size in data collection (Marano, Tashman and Kostova, 2017).
DATA ANALYSIS AND INTERPRETATION
Q1) Are you aware about the concept of globalization?
a) Yes
b) No
Q2) What are the various benefits of globalization which help H&M to operate its business
function at international level?
a)
b)
c)
Q3) What are the different strategies which H&M can imply within its functional areas in
order to enter into emerging market?
a)
b)
c)
Q4) What are the various challenges of globalization which H&M undergoes while enlarging
its market size at global level?
a)
b)
c)
Q5) What are the various ways to overcome the challenges of international business in terms
of global expansion?
a)
b)
c)

Q6) In your opinion, Is the idea of emerging market helpful for H&M in terms of increasing its
productivity ratio?
a) Agree
b) Disagree
Q7) Provide suitable recommendation for H&M in enhancing its market share at international
level?
Theme 1: Concept of globalization
Q1) Are you aware about the concept of globalization? Frequency
a) Yes 15
b) No 5
Interpretation: The above drawn graph is wholly based upon awareness among population about
the aspect of globalization. However, it has been analyzed that out of 20 respondents, 15
personnel says that adopting the aspect of globalization help H&M to improve its overall
performance n an improved manner. On the other hand, remaining 5 people refuses the same that
influence organization decision making ability in terms of accomplishing the global objective
within stipulated period of time.
Theme 2: Benefits of globalization
Q2) What are the various benefits of globalization which help H&M to
operate its business function at international level?
Frequency
a) Free international trade 8
b) Acquire talented workforce 8
c) Market expansion 4
Interpretation: The above depicted graph states the advantages of globalization over
establishment in operating the functions at global pace in an amended way. Hence, out of 20
population, 8 individuals believes that with an adoption of global business environment enable
H&M to gain free international trade without any barriers. With the help of such formulation, it

assist them to enlarge its market share or size in an impressive or productive style. On the
contrary, other 8 manpower signifies that globalization render highly talented workforce who put
their best contribution for an accomplishment of firm’s business goal or objective in an effective
way without any hindrances and also it enhance its proficiency ratio. The remaining 4 people
agrees that the foremost benefit which globalization give is that it assist H&M to enlarge its
market which means help firm to open its division in any geographical region without any
difficulties. Due to this, it empower company to acquire best position within competing
marketplace.
Theme 3: Strategies of globalization
Interpretation: The preceding shown graph highlights the several strategies that help an
establishment to expand its profit margin in a better way. Therefore, it has been analyzed from
those graph that out of 20 respondents 9 individuals says that lice censing is one of the well -
known tool which lead H&M to expand its market at global pace. Due to licensing tool, it help
H&M to make use of innovative technologies order to gain competitive advantage over rivals
On the other hand, 6 personnel says that joint venture is an effective instruments as it aid
company to implement best strategic decision for an attainment of high level of productivity.
Hence, rest of the 5 individuals agrees that franchising is the growth tool which assist H&M to
enhance its proficiency ratio.
Theme 4: Challenges of globalization
Q4) What are the various challenges of globalization which H&M
undergoes which enlarging its market size at global level?
Frequency
a) Talented manpower 12
Q3) What are the different strategies which H&M can imply within its
functional areas in order to enter into emerging market?
Frequency
a) Licensing 9
b) Franchising 5
c) Joint Venture 6

b) Linguistic barrier 4
c) Cultural differences 4
Interpretation: From the above shown graph, several challenges has been examined that directly
influence over company’s brand image. However, out of 20 individuals 12 people states that
acquiring highly skilled or potentiality personnel threat H&M in terms of improve its overall
performance as well as to enrich its proficiency ratio in an amended manner. On the other hand,
4 people says that language difficulty also generate huge conflicts among team members in the
form of miscommunication and misconception that totally hampers the working cycle of firm
and also negatively impact over its brand image among existing industry. The rest of the 4
respondents says that another biggest issue which H&M undergoes while funxtioning its
functional areas at global level i.e. cultural diversity. This is because each geographical region
has its own beliefs, values, norms and many more in order to survive within existing.
Q5) What are the various ways to overcome the challenges of
international business in terms of global expansion?
Frequency
a) Innovative hiring strategies 8
b) Training and development program 5
c) Diverse working culture 7
Theme 4: Ways to overcome globalization issues
Interpretation: From the preceding presented graph, it has been identified tat out of 20 personnel
8 persons agrees that one of the primal tool which assist H&M to tackle over the issue of
globalization i.e. acquiring innovative recruitment strategies. Due to this, it help company to
strengthen its profitability ratio by capturing the attention of wide range of population and also
empower manger to delegate each individuals to appropriate place that reflects in obtaining
profit maximization. Moreover, 7 individuals training and development enable says that
adopting diversity within present workplace help organization to strengthen its sales performance
as well as improves the value of brand. Along with this, 5 people believes that rendering

effacious training and development program enrich H&M growth and proficiency. Along with
this, implication of such kind of activities within establishment working culture help them to
enhance its business operation and functional areas by entering into emerging market in an
innovative and creative style.
Theme 6: Impact of globalization
Q6) In your opinion, Is the idea of emerging market helpful for
H&M in terms of increasing its productivity ratio?
Frequency
a) Agree 15
b) Disagree 5
Interpretation: It has been examined from the above shown graph is that out of 20 personnel,
majority of an individual i.e. 15 agrees with the statement as they thinks that adoption of
international business help H&M to enlarge its profit margin rate in an improved way. On the
contrary, 5 person denies the same as they think that it impose wide range of challenges for
organization that hamper entire process as well as reduces the potentiality of accomplishing
H&M pre- determined goal in an deter manner.
REFLECTION, RECOMMDATION AND ANALYSIS OF RESERCH
Reflection:
I have learned that globalisation is process of integrating different world and its markets together
so that international trade is increased. This process allows companies to enter into new markets
and grow its operations to earn higher profits. In conducting this research I faced difficulties as
there is less secondary data available for different strategies used by companies to enter into new
segments of markets. While collecting primary data in experienced that respondents are not
willing to give feedback which makes it difficult to collect data. I have gained complete
understanding about strategies that provides assistance to business for entering into new markets
and achieve organisational objectives. There are many challenges and difficulties that
respondents agree that globalisation has impacted on businesses and its operations. They also
totally agree with the fact that globalisation has changed businesses and its processes and made
more effective so that they can beat increased competition in respective industry. With the use of

different secondary sources I identified those globalisations challenges can be overcome by
employing strategies and methods. There was time limit which constrained me to include larger
sample size while collecting primary data with questionnaire which may put negative impacts on
results.
Alternative
There are other alternatives also of conducting this research as personal interview are more
suitable methods of collecting data for this type of business objectives. Questionnaire are
sometimes biased as responses can be changes and influenced by respondents. Interpretation of
structured questionnaire is difficult as researcher biased behaviour can also influence.
Recommendations
 It is recommended from above analysis that business needs to conduct extensive market
research before entering into new markets.
 It is advised that business plan is prepared so that all factors present in macro
environment of market can be analysed so that risk can be minimised.
 There should be a sample market segment to test the product or services so that customer
expectations can be identified and corrective actions can be taken to achieve business
objectives.
CONCLUSION
Globalisation is concept that remains effective but regularly be tested by changing
business environment. That is an inevitable aspect of business environment that requires
economics profession to find out value of liberalized world trade. While revenues from trade is
high while associated costs can is significant and will require greater attention if globalization is
to work for all countries and regions. This research will identifies different strategies that will
assist companies in achieving success in emerging into new markets. This study has identifies
different challenges and benefits of globalisation on business and its operations while entering
into new market. This also includes strategies to overcome or minimised challenges and impacts
of globalisation which can make emerging strategies more effective in achieving organisational

objectives. This research will give recommendations so that business strategies are formulated so
that growth can be achieved.

REFERNCES
Books and journals
Lebedev, S., Peng, M. W., Xie, E. and Stevens, C. E., 2015. Mergers and acquisitions in and out
of emerging economies. Journal of World Business. 50(4). pp.651-662.
Hohenthal, J., Johanson, J. and Johanson, M., 2015. Network knowledge and business-
relationship value in the foreign market. In Knowledge, Networks and Power (pp. 187-
224). Palgrave Macmillan, London.
Chittoor, R., Kale, P. and Puranam, P., 2015. Business groups in developing capital markets:
Towards a complementarity perspective. Strategic Management Journal. 36(9).
pp.1277-1296.
Marquis, C. and Raynard, M., 2015. Institutional strategies in emerging markets. The Academy
of Management Annals. 9(1). pp.291-335.
Manikandan, K. S. and Ramachandran, J., 2015. Beyond institutional voids: Business groups,
incomplete markets, and organizational form. Strategic Management Journal. 36(4).
pp.598-617.
Story, V. M., Boso, N. and Cadogan, J. W., 2015. The form of relationship between firm‐level
product innovativeness and new product performance in developed and emerging
markets. Journal of Product Innovation Management. 32(1). pp.45-64.
Vellas, F., 2016. The international marketing of travel and tourism: A strategic approach.
Macmillan International Higher Education.
Marano, V., Tashman, P. and Kostova, T., 2017. Escaping the iron cage: Liabilities of origin and
CSR reporting of emerging market multinational enterprises. Journal of International
Business Studies. 48(3). pp.386-408.
Online
International Organisations and the Challenges of Globalisation, 2008.[Online]. Available
Through;< https://onlinelibrary.wiley.com/doi/abs/10.1111/1468-2451.00341>
Analyzing Foreign Market Entry Strategies: Extending the Internalization Approach, 1998.
[Online]. Available Through;< https://onlinelibrary.wiley.com/doi/abs/10.1111/1468-
2451.00341>
Costs and benefits of globalization, 2017, [Online]. Available Through;<
https://onlinelibrary.wiley.com/doi/abs/10.1111/1468-2451.00341>