Sample Contemporary Business Issues in a Globalized Environment Assignment

Contemporary
Business Issues in a
Globalized
Environment

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY ..................................................................................................................................1
How Globalisation impact an organisation ................................................................................1
CONCLUSION ...............................................................................................................................5
REFERNCES ..................................................................................................................................6
.........................................................................................................................................................6

INTRODUCTION
In today's competitive world, globalisation has become an expression of common usage
which empowers an organisation to accomplish profit maximisation with an optimum utilisation
of resources. However, it refer as a process of integration or interaction of economies and
societies through cross country flow of information, ideas, technologies, goods, services, capital,
finance and people (Capello and Perucca, 2015). Moreover, the essence of globalisation is
connected with each other as they contain several dimension like cultural, social, political, and
economic. Therefore, the term is most frequently used in reference to creating an coordinated
global economy marked by free trade, free flow of capital and corporate use of foreign labour
markets to maximise returns. For this report, Asda is considered which is one of the reputed and
branded retailer which is commenced in the year of 1949. Its headquartered at UK and it serves
its operation across the globe in an effective and efficient manner. This report is based upon
essay on the topic of Influence of globalisation on organisation along with various external
environment factors is also mentioned here.
MAIN BODY
How Globalisation impact an organisation
Globalisation
It is the process by which the whole world becomes a single market. This means that
goods and services, capital, manpower are traded on worldwide basis, as well as information and
results of research flow readily between countries. However, today's world is becoming more
challenging and competitive which threat companies to survive as well as to acquire sustainable
profitability ratio (Cornuel and et.al., 2015). Hence, the concept of globalisation plays a vital
role in an enhancement of market share as it helps in stimulating new technologies and also to
grasp all possible opportunities in order to gain competitive advantage in an impressive and
productive manner. It generates positive and negative outcome for which firm should takes an
initiative to examine current or emerging trend of business environment that leads them to
acquire best positioning within an industry.
Benefits of globalisation
It is the procedure of combining or integrating various companies or industry together
with an aim of improving the life standard of individuals as well as enlarge company's growth
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and productivity. However, it benefits an Asda in many ways and some of them are discussed
below briefly:
Improves living standard : One of the main advantage which globalisation render to
Asda is that it the massive rise in living standard of developing nation as it generate enormous
job opportunities that improves each individuals life style in an impressive way. With fewer
barriers to import/export market, the cost of producing goods or offering services would decline
without affecting the profit margin of companies ( Gozgor, 2017). Moreover, consumer get
benefits from lower price, consume more, create additional employment platforms across the
globe. However, by generating an environment where free trade encouragement readily exist,
more innovation, creativity and engagement occurs at every level of society that enhance their
living standard in an effective way.
Enlarger creativity and innovation: In this modern era of industry, novel ideas or
techniques contains an integral component for acquiring best positioning within competitive
market share and also global competition assist creativity and innovation among companies.
Moreover, the free movement of labour and capital means that ideas from developing nation
drive innovation around the world. Along with this, globalisation encourage Asda to examine
present or emerging market trend and based on that they adopt latest technologies into business
operation in order to gain competitive advantage in an innovative and creative style. In addition,
globalisation drive Asda towards quality and price which modify products and keeps its costs
low that add value to consumers as well as over brand image.
Incorporate free market economic system: Due to foreign trade agreements and their
economic policies, it enable international financial opportunities and industrialisation. Along
with this, the concept of globalisation removes every kind of trade barriers which help
organisation to integrate or interact their trade process across the globe as well as assist them to
give their best contribution for an enhancement of GDP rate within prescribed time limit (Liang,
Ren and Sun, 2015).
Better interconnectedness: Globalisation provide its effort in social and culture business
environment as it is regarded as the procedure of integration and interrelatedness for an
attainment of profit margin. In aspect of social, it render population around the world better
coordination. Culturally, it promotes the increase in exchange of values and ideas and also it
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boost political activities of nations toward a global level through coordination with
intergovernmental organisation.
However, the above discussed advantages of globalisation states that for acquiring
sustainable profitability ratio, it enable Asda to make use of all potential platform which leads
them to enrich their proficiency and volume of sales in an effective and efficient manner
(Reinecke and Ansari, 2016).
Business management is the act of getting people together to achieve pre determined
goals and objective and globalisation is the effort towards making the world global community
as one market. Moreover, it is truly a complex phenomena which encompasses a great variety of
tendencies and trends in economic, social and culture spheres. In addition, globalisation leads to
global competition, and in long run, to local competition, ensuring the improvement of creative
abilities and innovative capabilities. But as much as globalisation holds a lot of opportunities, it
has numerous negative effect which influence Asda's decision making as well as profitability
ratio. A global economy opens new markets for both buying and selling as such, the way Asda
carries business, and the manner consumers interact with organisation must change. These
modification are internal and external factor of globalisation which directly impact over firm
decision making capability. However, internal aspect of globalisation involves how firm alters its
practices to compete on worldwide scale. Production, development, customer service and
marketing strategies are some of the example of internal environment. Whereas, external factor
includes new market environment to which firm must become accustomed and it get effect by
political, economic, social, technology, culture basis. However, a list of external factors which
effect Asda's business operation by globalisation that is explained below:
Political: Under this factor, it is concern with government policies, regulation, economic
stability which has great effect over organisation's productivity and profitability ratio. However,
in regard of Asda, it is one of the multinational retailing company which operates its service
across the globe (Schneider, 2014). Moreover, globalisation mainly aims to expand market share
and size in a productive manner. But each country or regions contains their own regulations and
rules which gives huge impact over Asda business operation. In aspect of positive side,
globalisation enable Asda to access to a larger market in order to gain competitive advantage.
Moreover, it assist them to acquire novel ideas or views as well as up to date with technological
advancement which leads them to obtain best positioning within marketplace and also add value
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for their brand image. IN aspect of negative side, each regions has distinguished with regulatory
bodies which becomes a major threat for Asda and also the core element is political stability
which has direct link with organisation efficiency. Furthermore, gaining culture, norms, believes,
manpower gives a challenging outcome for which Asda makes a corrective course of action for
accomplishing their objective in a better manner. However, company takes an initiative to follow
all government policies and also attempts to identify customer taste and preference in order to
attain high level of productivity as well as sustainable profitability ratio (Warwick, 2014).
Social – cultural: It is one of the important factor, which refer to the study of taste, need
and preference, customs and tradition of customers. However, the commination of increasingly
advanced technology and complex social structure which were sustained by the ideas of change
as desirable progress accelerated social change bring one of the major spheres of impact of
globalisation. Along with this, it provide enormous employment platforms for all individual at
national, international and regional level which improves their living standard in an impressive
way. Through this, people from different countries are provided with employment opportunity
within the global as it has created the concept of outsourcing. Furthermore, it has given an
opportunity to Asda to invest in emerging market and tap up the talent which is available there.
In UK, there is often lack of capital which hinders the growth of domestic companies and hence
employment. In such cases, due to global nature of business, people of developing countries too
is able to obtain gainful occupation opportunities. On the other hand, it becomes a challenging
for people as it generates jobs insecurity because developed nation have outsourced
manufacturing and white collar work which means less jobs for their personnel. Along with this,
there is an issue of linguistic and adopting different values, norms, culture among Asda
employees which leads to conflict of interest and disputes that effect company's brand image.
Technological: This factor is concern with advancement of technologies, innovation,
creativity which influence organisation proficiency and effectiveness (Wetherly, 2014). As
today's marketplace is becoming more competitive and challenging and in globalisation digital
improvement plays a vital role that lead company to expand their market share or size in an
impressive or productive manner. In regard of Asda, there is a huge demand among UK
population regarding digital mode of delivering the product which saves time, money, cost as
well as it creates positive attitude among customer towards firm brand and this influence Asda
decision making or productivity. However, in order to cope up with these impact, Asda takes an
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initiative to introduce superfast broadband connection and also develops mobile apps which help
them to capture the attention of wide range of population towards their product and it reflect in
increase in their volume of sales in a productive way. But at the same time, globalisation effect
negatively over Asda business operation in terms of technological factor because advancement
or innovation requires talented or skilled manpower who can put their full contribution for an
attainment of high level of productivity and proficiency (Yashkova and et.al., 2016). But it
needs huge amount of cost to acquire impressive or productive personnel as well as in providing
proper training programs for enriching their performance and capabilities in order to obtain profit
maximisation with an optimum utilisation of resources.
Henceforth, the term globalisation plays an integral role in Asda growth and development
as it render several business opportunity which improves teir overall performance in an
innovative and creative style. But, it impact positively and negatively over business function or
operation which assist them to make best strategic decision in order to gain competitive
advantage as well as acquire increased level of profit margin (Ying, Chang and Lee, 2014).
CONCLUSION
It has been stated from the above discussed essay that globalisation is a term which is
used to describe increasing social, economic and legal interconnection and interrelation across
political and cultural boundaries. Along with this, it effect positively and negatively over
company's productivity and profitability ratio. Thus, firm must make use of all available business
opportunities which leads them to expand their market share or size in an innovative and creative
manner. Moreover, it improves country's economy by providing enormous platforms for
employment as well as enlarge firm potentiality in attaining increased level of profit margin.
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REFERNCES
Books and journals
Capello, R. and Perucca, G., 2015. Openness to globalization and regional growth patterns in
CEE countries: from the EU accession to the economic crisis. JCMS: Journal of Common
Market Studies. 53(2). pp.218-236.
Cornuel, E and et.al., 2015. The business case and barriers for responsible management
education in business schools. Journal of Management Development.
Gozgor, G., 2017. The impact of globalization on the structural unemployment: an empirical
reappraisal. International Economic Journal. 31(4). pp.471-489.
Liang, H., Ren, B. and Sun, S. L., 2015. An anatomy of state control in the globalization of state-
owned enterprises. Journal of International Business Studies. 46(2). pp.223-240.
Reinecke, J. and Ansari, S., 2016. Taming wicked problems: The role of framing in the
construction of corporate social responsibility. Journal of Management Studies. 53(3).
pp.299-329.
Schneider, G., 2014. Peace through globalization and capitalism? Prospects of two liberal
propositions. Journal of Peace Research. 51(2). pp.173-183.
Warwick, P., 2014. The international business of higher education–A managerial perspective on
the internationalisation of UK universities. The International Journal of Management
Education. 12(2). pp.91-103.
Wetherly, P., 2014. The business environment: themes and issues in a globalizing world. Oxford
University Press.
Yashkova, E. V and et.al., 2016. Development of Innovative Business Model of Modern
Manager's Qualities. International Journal of Environmental and Science Education.
11(11). pp.4650-4659.
Ying, Y. H., Chang, K. and Lee, C. H., 2014. The impact of globalization on economic growth.
Romanian Journal of Economic Forecasting. 17(2). pp.25-34.
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