Contemporary Business Issues in a Globalized Environment - Assignment

Contemporary Business Issues
In a Globalized Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Globalisation involves the basic communication that may be related to business,
information, statistical data between the companies, government and people across the cross
border countries (Beck, 2018). It is basically an economic-financial process that is associates
with the socio- cultural business prospects. This report covers the evaluations of the global issue
of the business organisation that may impact to a firm and personnel. This report of the
globalisation is consider the benefit of the cross border trades that help to the in the growing
internationally. TESCO company is selected for this report to analysis the business situation
regarding the external factors that may influence to the management of the entity.
Globalisation
The term globalisation means interchange of information, deals, interaction between
firms, institution, international markets at two or more countries or across the global world. It is
also elaborated as transfer the data, technology, economic and financial resources and the
business related terms like goods and services around the world (Gruzinski, 2013). TESCO firm
is a retail sector manufacturing chain of the groceries item that sell its goods across the world.
These are the basic deal with across border countries that may enhance the international trade,
social culture, standard and overall growth of the country in term of advancement of the
transportion and communication technology. Whereas it may arise the diplomacy and conflicts
at large scale in the modern era of business around the world. It directly means to liberalise the
business financial activities that are based on the interchanging the goods and services. It is more
feasible for those business that wants to remove the barrier form the global markets by
manufacture the goods at higher level to supply the global demand.
Impact of the globalisation on the business management can positive and negative on
firm in order to process the cross border business deal and information. It may creates many
negative impact to the business like unemployment, trade tariff rates, spread of western culture.
The process of the globalisation provides a better chances to those who are unemployment in the
particular region. It may lead to eradicated the poverty world wide by increasing the good
opportunity around the world (Hawkesworth, 2018). TESCO firm is providing the international
opportunity to those who are capable to work but not find the way or job opportunities in
different countries. Management of the company may find a way at global platform by
increasing the capacity of their productivity to sell in various country. Technological factors may
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creates a positive impact to TESCO by promoting the retail goods and brands via electronic
media and social sites by increasing the general awareness in the people internationally.
Globalisation may impact in the business organisation to raising the production level in the long
run. It may creates new business opportunity in new areas of world. It is also create opportunity
regarding the foreign trade investment at global level by contributing the economical growth.
International trade of the goods and services of consumer products like groceries and artificial
item are really provides the competitive advantage to the business in terms of brand recognition
across the world and high revenue generation by company. Negative impact in the global trades
includes legal barrier, governmental effects, fluctuation in global prices, social cultural issues,
cut throat competition at global level. All the negative point may impact to any of the business
that is trading the goods and services at global level. TESCO is dealing in the goods
manufacturing activities at international border of the country. Negative effects of the
globalisation in the business are considered by the management of the company in order to
control the basic business operations that are taken places in the international trading system of
the business. Along with these impact to business, it is required a flow of the basic capital among
the countries to operating the business function at the countries. It may leads the unfair flow of
the income in the individual at different countries.
Benefit of globalisation
Globalisation creates broad opportunities in the business environment in less industrial
countries to grow in larger economy of a country around the globe (Hirst, Thompson and
Bromley 2015). The business organisation that are situated in the developing countries has better
chances to access the capital growth, import, export, technology, production and increase the
economical growth in the markets. Globalisation enables the business of TESCO in order to
grow in the international production and supply chain management that are main business of
trading. It may have positive outlook regarding the cash flow of the an organisation, growth in
per capita income of the country and governmental foreign direct investment all the factor of the
growth of a country are increase the net effects of the globalisation.
Foreign direct investment may impact on a countries growth rate in the developed
countries and increases the trade and investment. Direct and portfolio investment of a country
generates higher revenue from taxes of a government by lower degree of the globalisation. It
may create a positive impact on a country's development by generating more indirect revenue as
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interest (Nayak 2016). TESCO company may boost technology in term of industrial
infrastructure at different countries in order to grow in the global companies.
Benefit of the globalisation includes free trade across the world and open the door for the
potential customer to invest their money in the international companies. Big companies like
TESCO can be free by switching the globalisation model. By increasing the trade across the
world can be yield more revenue as per productivity level. TESCO is dealing in the free trade of
the goods regarding its products and services across the world in Asia and Europe.
It can be benefited for TESCO company to access the real time flow of the information
from the all different countries where are situated the business unit. Management of the company
can access the good flow of the data regarding the business operating activities and operation
that resulted to being tied together about the centralised data. Essential data can be shared by
corporations at just in time. It become easy to facilitated transporting system of the product and
goods and labour too.
It is benefit for the organisation like TESCO to provides the good quality of the goods
and services as per their business standards. As a result of the globalisation, consumer can
access the superior quality of products and services across the world. TESCO have to provide
improved quality services to the consumer and customer are free to choose the required goods
that appropriate for their needs and demands. This enables a customer in India to purchase
clothes from japan or watching a cricket match that is happening in the India on a mobile made
in china.
As the Cut throat competition in the global market, It may increased due to speedy
globalization of the business organisation (Ram, 2013). Manufacturer of the goods and product
have the right to decide the price of the related goods but it may changes as per demand and
requirement of the customer. TESCO produced the quality goods as per business standard with
cheaper prices to increase the market share of the company at global representation. Groceries
business in the India are very limited but after the arrival of TESCO in India it may increased at
certain level and goods related to this item, people of the India can access at cheaper rate with
newly arrival in the market.
As people and business organisation switched from one economy to another, It may arise
the socio cultural barriers like language, culture, political etc. But the globalisation of a firm
open the door to trade around the new customer, new culture. It is facilitated communication
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between various cultures and economy in the global market. TESCO company is providing the
business goods in the more than ten customised region of the world.
Political factor factor is related to external business environment that is influences by the
regulatory authorities of a nation. This factor may implement by the legal bodies of international
trade as new changes in terms and condition of the trading limit of a country (Rugman, 2012) .
This factor may impact in the business activities by any changes in the current environment of a
particular country where business is operated. It is comprised changes in the business political
climate or may be in governmental policies. It can be included some other factors such as
changes in the interest rates, tax rates, import export laws, tariffs and other aspects that are
impact negative in the business organisation. It is difficult to minimizes the risk regarding the
external factors that are foreseen in the current business scenario. This factor may impact to
TESCO by implementation of new rule and regulation of the governmental bodies. This may
result the operational activities of the business in the long run stability. This factor may include
labour law trade limitation, taxation system, corruption. External factor must be address by
assessing the potential market state to run the smooth business action.
Financial factor of the international market may impact to the business environment.
Basically the external factors of a business scenario includes banking and financial aspects, sales
volume, disposal of the income (Smith, 2017). The financial crises in the international market
may be the reason to failure of the business at global level. Any modification in the economic
system of a country may impacts demand and supply of a firm's products and goods. Sometimes,
it has a positive impact too, when gross domestic product (GDP) of a nation increases more than
expected, it automatically increases the revenue of a nation. But economic forces can hurt
TESCO's financial position such as dropping the customer confidants related to goods and
prospective customers spend less money on the product and save more. Economical factor may
includes the global market condition like if market booms in the developed countries the prices
of the goods and services than it automatically increases in the other nation. Economic risk leads
to sudden changes in the overcast market condition that may consists the unexpected loss in the
market revenue. This factor includes economic growth, governmental expenditure, exchange
rate, income of the consumer, interest rate. TESCO's management are required to assessed the
economical component as per international market so they can restructure the new variable in the
content to increase its net profit and sales revenue.
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Technological Factor
Advancement in the technology play a important role in the business firm that may
impact to business that may impact to leading the business situation across the world
(Stromquist, Monkman, 2014). TESCO has a powerful tech-based business model to handle the
business deals. So that It can take competitive advantage in the business by anticipating the new
or innovative goods and product. TESCO is able to deliver the goods and services across the
world by selling the goods on online portal. It may increases the sales revenue and profit of the
organisation.
CONCLUSION
As per the above report of globalisation of the business model, It may impact to business
in positive and negative manner to the business. Some of the benefit that are discussed above in
the report are really useful to organisation. As the business can grow globally in terms of profit
and sales volume. But the real aspect is factors of external business environment that are
influenced the business deeply. The organization like TESCO is required to take a mark on the
issue of globalisation. By considering all the factors that are mention above business can be
reach at new height and increase the market ratio.
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REFERENCES
Books and Journals:
Beck, U., 2018. What is globalization?. John Wiley & Sons.
Gruzinski, S., 2013. The mestizo mind: The intellectual dynamics of colonization and
globalization. Routledge.
Hawkesworth, M.E., 2018. Globalization and feminist activism. Rowman & Littlefield.
Hirst, P., Thompson, G. and Bromley, S., 2015. Globalization in question. John Wiley & Sons.
Nayak, A., 2016. Race, place and globalization: Youth cultures in a changing world.
Bloomsbury Publishing.
Ram, U., 2013. The Globalization of Israel: McWorld in Tel Aviv, Jihad in Jerusalem.
Routledge.
Rugman, A., 2012. The end of globalization. Random House.
Smith, N., 2017. The satanic geographies of globalization: uneven development in the 1990s.
In Development. (pp. 383-403). Routledge.
Stromquist, N. P. and Monkman, K., 2014. Defining globalization and assessing its implications
for knowledge and education, revisited. Globalization and education: Integration and
contestation across cultures. 1 pp.1-21.
Zimmerman, A., 2012. Alabama in Africa: Booker T. Washington, the German empire, and the
globalization of the New South. Princeton University Press.
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