Contemporary Business Issues

This essay examines the concept of globalization and its impact on businesses, specifically focusing on Tesco, a leading multinational retailer. It explores the benefits of globalization, including increased market access, lower costs, and technological advancements. The essay also analyzes the external environmental factors that influence Tesco's operations, such as legal, technological, and socio-cultural considerations. The essay concludes by highlighting the importance of adapting to these factors for successful globalization.

Contemporary Business Issues In a
Globalized Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Benefits of globalisation..............................................................................................................1
Arguments related to the external environmental factors which influence the individual as
well as company's main objectives..............................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Globalization is the process that helps in integrating people, organizations and
government that expand its business into different countries (Crane and Matten,2016). It is
related to advancement in the transportation and communication facilities that enhance growth in
different sector of the economy. Globalisation allows in expanding the business activities into the
international market and thus helps the organization in gaining the successful development and
sustainable growth of the firm. However, this Essay will also includes various problems which
will be often raised during the globalization of the goods and services into the international
market. Also, it will make a clear understanding about the different aspects that are considered
while introducing the goods and services to the other places of the world.
Present study will be based on Tesco company. It is a British multinational groceries and
general merchandise retailer. It is the third largest retailer in the world. It is diversified into
various areas such as books, clothing, furniture, petrol, software etc. This Report will include
globalisation and its benefits. It also includes external environmental factors that influence the
functioning of Tesco. In addition various, Various benefits associated with the expansion of
business and its goods and services in order to service in order to serve the people across the
world.
MAIN BODY
Benefits of globalisation
Globalisation refers to expansion of business, people, and government related to goods,
services and technology. It helps in increasing integration between countries that facilitate easy
import and export of goods. It involves increasing foreign direct investment from different
countries. Through this labour migrate from one place to another in searching for job.
Globalisation also helps in increasing investment in different sector by investing money in
innovation, infrastructure across various parts of the world. It is making economy more
connected with each other (Welford, 2016).After globalisation many companies market share is
rising in the world that helps in developing economy faster than other nations.
It helps in raising the standard of living among poor people and provide job opportunity
to less developed countries. It also leads to decrease opportunities in developed countries as the
production of goods is moving to different borders. Many corporations is getting competitive
advantage through globalization. It facilitates cheap product to customers by reducing tariff from
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goods and services. Most of the shopkeepers were getting access to new customers. Though this
interaction is increasing between various groups of people in the economy. It defines exchanging
ideas, values and culture among various people that facilitate different perspective of being
globalised. Country is considered to be the single culture after globalisation (Boda and Zsolnai,
2016). Globalisation helps in bringing attention towards intergovernmental organization such as
world trade organisation. International law is also come into existence after India becomes
globalised.
It allows countries to do business with other nations that will help in increasing
manufacturing, standard of living and expansion of country. However, outsourcing bring many
jobs and technology in developing countries that facilitate easy access to anywhere with the help
of technology. Trade barriers are removed by the government for easy trading with countries. It
also focused on human rights and provide social justice to people in the world. It provides
liberalize policies and procedures for permitting free flow of people from one place to another. It
results in investment in the unproductive sector and emphasize import and export for productive
sector.
Globalization is mainly divided into three categories such as economic, cultural and
political globalisation (Najam, Runnalls and Halle, 2016). All these categories affect the
functioning of economy. Economic globalisation includes capital, services, technology and
information. Cultural globalization refers to the transferring of ideas, values and norms. It helps
in increasing norms and knowledge that provide people collective cultural identities. Political
globalisation means growth in the political system that facilitate complexity in the business.
Globalization helps in increasing research and development, innovation and also helps in
achieving goal of the organization. After globalisation Tesco is also growing in its operation and
facilitate easy availability of raw material in the country. As in trading sector number of
employees are increased through import and export of goods and services. It also helps in
reducing inflation rate that provide customers to purchase goods and services from the market. It
has spreading new technology and provide economy green environment and productive. As it
gives opportunity to the women by reducing gender wage discrimination. It helps in improving
quality of management in the company.
Lower costs of goods and services facilitate in providing better product and services to
the customers. The world trade system also facilitate lower price of cost that bring new
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technology in the country (Smith, El-Anis and Farrands, 2017). Labour are moved from one
country to another. It brings innovation and creativity that helps in beating competition in the
market. Nowadays there is more competition in the market so companies have to adopt
technology based on the market trend. It will become easy for doing foreign trade through
globalization and access information regarding them.
Globalization is increasing at a fast pace in present scenario that facilitate easy working
of the companies. New technology helps in bringing innovation and that will help in growth for
future. Without technology company can't operate its business successfully. All the work of
company is depending on internet that helps in providing advantage for them. Globalization
brings employment opportunities for the people that help in increasing employment rate and
poverty will be reduced from the country. Economically country grows at a fast pace after
globalization comes in India it helps in increasing foreign direct investment through which
foreign companies also get connected and enhancing growth for country. Market share of the
companies in increasing day by day that provides many facilities in the future(Furlan, 2016).
Research and development sector is also been improved as new technology is being used for
doing research. Infrastructure is also developed as buildings are transforming into flats and
provides all the facilities to customers.
Poor countries gets developed and gain many opportunities for future course of action.
Technological development enhances more opportunities for companies in providing better
services to the customers. Continuous development helps in growth for future for longer period.
Open trade also provide many facilities in transferring goods from one place to another. This will
also help in facilitating more opportunities that create sustainability for future course of action.
Open trade helps in providing more opportunities that will facilitate easy import and export from
foreign countries (Alcácer, Cantwell and Piscitello, 2016). If suppliers are more from foreign
then there will not be shortage of material in the company easy production will be there that
provide the best quality to customers on time. Globalization helps in easy cash inflow and
outflow from other countries through which cash flow will be proper in the country and there are
no chances of solvency.
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Arguments related to the external environmental factors which influence the individual as well
as company's main objectives
External environment consists of all the outside factors that or influences which impact
the operations of the business. In order to keep up the effective flow of operations within the
organization, managers of the Tesco need to timely react act upon such factors of the business
environment. External factors are those elements which cannot be controlled by the Tesco
organization. These factors may often includes the threat of the new entrants and rapidly
changing trends and customer requirements. These factors impact upon the ability of the business
or investment to achieve the main strategic goals and objectives of the business (Nayak,
2016).This may includes the social, legal and technological changes along with the economic
and political environment. The External environment can be classified into two types micro and
the macro business environment
Legal
As the globalisation of the Tesco leads to the its international market so there are various
different types of legal procedure associated with the company. Legal procedures are considered
as the rules and policies which are made by the government of the country in order to protect the
consumer as well as nature of the business. These legal procedure may includes the
Organizational security, employment contract, commercial, immigration, consumer protection,
tax and industry specific laws and regulations. Along with the expansion of the business within
the different areas of the world, there are various factors which need to be considered in order to
sustain the business for long term (Papastergiadis, 2018). Such as different regions of the
business have varied laws and regulations such as employment law which may effects the
companies profits and main objectives. Different countries is having different laws so before
setting up a business at international market provides proper law and order that will be adopted
by Tesco. These factors allow to follow the rules and regulations of the country. If rules and
regulation is not maintained properly then Tesco may have to pay penalty for it according their
legislations that will prohibit particular use of thing in the country. Following laws plays an
important part for every company to sustain in particular country.
Technological
As per the rapidly growing technology within the world which is aimed at modernising
the world very efficiently. So in this situation the companies such as Tesco which are expanding
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their operation and business activities need to come up with the new solutions to deliver the
effective and efficient productivity as per the demands of the people. So technology plays the
very important role in helping the organization in order to become more consumer oriented.
Manager of the Tesco need to understand the varied circumstances requirements and marketing
trend of the people during the Globalisation of the Tesco within the different parts of the world.
So Manager need to adopt the advanced and updated technology which allows the business to
understand the tastes and preferences of the consumer within the different market and therefore
the marketing conditions can be easily understood with the help of employing technology
(Pieterse, 2015). Thus, this supports the Tesco in building the developing the company in an
international market. Technology is rapidly changing in the growing scenario of the world which
leads to the growing competition within the world. So in order to sustain the globalised business
in the market, manger need to update the technological aspects of the company. It helps in
enhancing the customer approach and also helps in understanding according to such demands of
the customer various strategies need to be formulated which is supported by the technology
improvement within the organization.
Socio-cultural
This factor is concerned with the tastes and preferences of the people living at different
regions of the world. People living at different areas may consider different cultural beliefs and
values so their needs may be varied according to their perceptions and living environment. These
factors include social norms, attitude, belief and culture (Pros and cons of globalization, 2019).
Globalization also affect the social factors in the company as different company is having
different culture that will help in enhancing more opportunities for them. Tesco manager have to
look upon the norms that is being followed in the company since many years so it will not get
disturbed. As this factor may includes various legal procedures so government of the different
regions of the world may have decided different employment rate so therefore globalisation of
the business have various threats in order to enter into the new market which may vary according
to the legal procedures. However, high wage rate may influence the Tesco company's actual
profitability which impact on the overall business performance. If the company cannot adopt the
legal procedures within the different regions of the world, then it may be resulted in the huge
failure as Globalisation is concerned with different types of situations which need to be adopted
carefully (Crane and Matten, 2016).
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CONCLUSION
From the above study it can be concluded that globalization is the base of providing
changes in the country. Free trade is one of the opportunity under globalization to do business
from foreign market. It facilitates new technology and automation that provide variety of
products with the best quality. After globalization many countries come together doing trade
with each other through which their relations are improved. It also provides job opportunity to
the people who are going out for searching job in other country. There are several external
factors that influence working of the companies such as political, social, economical, cultural etc.
Through this living of standard of people is increasing day by day. This is have a greater impact
on younger generation people as they bring new trend from outside country and that will help in
development of the country. From the above study it can be observed that globalization helps in
development of the country by providing many opportunities to the people in their future. If all
the people get job then there is no unemployment in the country and it will become developed in
the future.
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REFERENCES
Books and Journal
Alcácer, J., Cantwell, J. and Piscitello, L., 2016. Internationalization in the information age: A
new era for places, firms, and international business networks?.
Boda, Z. and Zsolnai, L., 2016. The failure of business ethics. Society and Business
Review, 11(1), pp.93-104.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Crane, D., Kawashima, N. and Kawasaki, K.I., 2016. Culture and globalization theoretical
models and emerging trends. In Global culture (pp. 11-36). Routledge.
Furlan, R., 2016. Modern and vernacular settlements in Doha: An urban planning strategy to
pursue modernity and consolidate cultural identity.
Najam, A., Runnalls, D. and Halle, M., 2016. Environment and Globalization: Five Propositions
(2010). The Globalization and Environment Reader, p.94.
Nayak, A., 2016. Race, place and globalization: Youth cultures in a changing world.
Bloomsbury Publishing.
Papastergiadis, N., 2018. The turbulence of migration: Globalization, deterritorialization and
hybridity. John Wiley & Sons.
Pieterse, J.N., 2015. Globalization and culture: Global mélange. Rowman & Littlefield.
Smith, R., El-Anis, I. and Farrands, C., 2017. International political economy in the 21st
century: Contemporary issues and analyses. Routledge.
Welford, R., 2016. Corporate environmental management 3: Towards sustainable development.
Routledge.
Online
Pros and cons of globalization.2019.[Online].Available
through<https://www.forbes.com/sites/mikecollins/2015/05/06/the-pros-and-cons-of-
globalization/#31c0e9b8ccce>
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