Globalization and Telecommunications Industry

The provided document is an analysis of the impact of globalization on the telecommunications industry. It includes a list of references from various research papers and studies, highlighting the different aspects of globalization's effect on the industry. The summary section provides details about each reference, including authors, publication years, and key findings related to the topic.

Contemporary Business Issues in a
Globalized Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
(1) Globalization ........................................................................................................................3
Political Factors: .........................................................................................................................6
Social Factors: ............................................................................................................................7
Technological Factors: ...............................................................................................................8
REFERENCES .............................................................................................................................10

INTRODUCTION
For operating businesses, company is facing many challenges and issues in the globalized
environment such as structures of company, laws and regulations, communication, cultures and
political risks. Globalization is the process by which businesses influence operating on
international scale. This report will be based on contemporary business issues in globalized
environment. For this purpose, British Telecommunication will be taken into action. BT is a
multinational telecommunication holding company in London, UK. It is the largest provider of
fixed line, mobile and broadband services. In this report, globalization and external environment
factors which are affecting business operations will be explained (Akanni, Oke and
Akpomiemie, 2015).
MAIN BODY
(1) Globalization
Globalization is the process of integration with trade, communication and transportation
of national and regional economic, societies and cultures which influencing the business
operations on international scale. It is focusing on the economic side such as trade, foreign direct
investment, capital flow, etc. On the other side, wider range of activities and areas such as
cultures, technology, political, media and other factors which affecting the business operations. It
is the process in which economics has increasingly integrated and inter- dependent. It is an
ongoing process that is connecting with people, cities, countries and regions with together.
Objectives of globalization are to understand the basic concepts, processes and trends to assess
the impacts and a broad range of reactions which caused around the world (Asongu and De
Moor, 2017).
It is growing due to advances in transportation and communication technology. It
involves economic resources of capital, goods and services as well as data of economy. The
characteristics of globalization are increasing trade in goods and services, developing global
brands serving market in lower, middle and higher income countries, increasing transfer of
capital including foreign direct investment, rising influence of wealth fund, higher level of labour
migration within and in between the countries, increasing capital investment, innovation and
structures which are spending across the world. Many emerging countries are increasing the

shares of world trade and their economies are growing faster (Bašić, Vlajčić and Novak, 2018).
There are many impacts of globalization which affect the business operations in economy. These
impacts might be positive and negative on the business activities. Some factors are like
technology, trade, competition, investment, capital flow, employment and culture as well as
organization structure. It is creating and expanding the foreign trade across world. Companies
handling their business activities at the global level imports and exports goods across the world.
It is influencing with trade rules, copyrights, policies on taxes, subsidies. This gives negative
impact on efficient market, increasing competition, stabilized security and more wealth equality
throughout the world (Telecom Industry & Globalization., 2012).
Market efficiency refers to balance in between buyers and sellers. This affects at the
local, national and global scale. At the national scale, controlled by finance, economics and
business. Globalization is the result of every aspect of existing life which is increase
international scale (Bašić, Vlajčić and Novak, 2018). Through improving technology,
companies and countries are expanding their international trade in global economy. For the
sharing of global identity, people are travelling to foreign countries for being exchanged more
cultures. On the local level, it is changing the nature of business. It is affecting the local culture
with replacing traditional customs and religions with popular cultures in the UK and US.
Impacts of globalization give negative effects on the business organisation directly or
indirectly. These include some factors such as job insecurity, prices moving, terrorism and
capital flow as well as currency fluctuations and other elements. Due to pricing fluctuations is to
increasing competitions in developed nations effecting by globalization. Therefore, countries are
forcing lowering down pricing of their products. There are other factors which include industry
economics and public policy relating to competition of telecom industry in globalization. In the
industry, economics involve cost trends for long distance and implications, local links of
particular of wire line and wireless, alternative way to security and reliability as well as
searching for stabilised position in value arrangement (Ghezzi, ortimiglia and Frank, 2015).
The impact of globalization on the telecom business structures and strategies involving
expanding of incentives operation across nations, risk diversification, communication industry
growth rates, political risks. The challenges of providing international services involving in
history of organization. Other strategies are considered as competition which include substitution

across establishing network technologies, development of new local competitors, importance of
innovation and services. It includes global policy challenges such as setting up the new
regulatory body for telecom sector in many countries. Changes of technology and increasing e-
commerce in telecom sector (Intriligator, 2017).
The impacts on telecom industry is to traditional differentiation between local and long
distance telephone services. Internet is moving to one third of world population. Comparable to
changes in telecom usage and communication are taking place on international area between
local, national and global. For expanding the operations, many telecom providers are providing
strong incentives to their employees. The demand of global customers are incorporated with
technical and customers services attributes. There are other opportunities for exploring telephone
services with low comparison of telephone penetration rates in some countries. For achieving
potential growth, is to decreasing risks in any particular country. Another effects of globalization
are to rebirth of local industry of small businesses (Iosifidis, 2016). The localization happening is
to increasing consumer awareness and creating demand for products. It includes competitions
tends which creates better quality products. The benefits of globalization are increasing in
products variety, lower prices and improving quality of products. Internet is one of the driving
unit of globalization. For finding out desire products, consumer are passing by local merchant
and searching.
The positive effects to increasing level of standards of living in each country due to
globalization. It is increasing global salaries of managers and professional providing increasing
of market for international positions. On the contrary, greater economic instability and multiple
financial crisis will give negative impacts on consumers. It gives to customers for getting the best
products on best prices. Customers are approaching available income is increasing demand for
technological progress of new and improved goods. The needs of customers is to getting better
quality products by spending lower money. Some customers are expressing concern on the
overseas worker’s conditions.
Globalisation is the process which integrates the transportations and communication on
international scale. It is increasing with growth of international trade, ideas and cultures. It is
economic process of interaction with social and cultures aspects. The advantages of globalisation
to rising of internet and mobile phones which shows development in telecom infrastructures
(Ogara, Koh and Prybutok, 2014). All the improvements are generating further interdependence

of economic and cultures activities around the world. Some environment challenges like water
pollution, air and global warming link with globalization. This process affects business,
organization, socio-culture resources, economics. It is process of interaction between peoples,
companies and organization. The conflicts of process are large parts of history and modern
globalisation.
The largest problem is to making decision relating to policies and requiring detailed
implementing regulation in telecom sector. The telecom policy is base on simple, transparent,
accountable and responsive to globally. The major challenges of implementing and translating of
outcomes and findings of policies. Another challenge facing by telecom sector that is analysing
experience and learning to focus by regulatory bodies. The globalization of telecom industry for
requiring to developing international schemes for companies are coming in foreign markets
(Smith, 2018).
(2) External Environment Factor
There are many external factors which are affecting the British Telecommunication
industry. Such as
Political Factors:
The regulation and policies relating to telecoms are coming up frequently. These factors
include changes in currency rates, inflations rates, improvement of policies and procedures.
Customers are wish for that government is to acknowledge the internet as a human rights. There
are many changes in policies and procedures which are affecting on operations' telecom sector.
Such as regulations on quality of services, interconnection usage, deciding pricing of 3 G scope,
proposal of licensee fee in rural areas. Consumers are believed in internet and data should be
treated by service providers and government. Consumers are using services for applying to job
online and going to company websites and uploading their resume. It includes degree of
intervention in economy (Stathis, 2015).
Political decision are impacting on essential part for business, health of nation, quality of
infrastructures of economy, it means the involvement of government policies and procedures,
regulations are affecting the economy. The laws and regulation relating to telecom industry,
modification of policies and procedures, changing in inflations rates, currency rates and other
changes affecting on business operation. Every new technology is to checking to government

rules. In the telecom industry, goods and services are made available should fit privacy and
safety of government regulations.
In government laws, always putting restrictions on phones and duties, so that telecom
companies are easily producing. The changes in taxes rates, duties, changing in prices, rapid
changes in regulation which are affecting on telecom industry (Thompson, 2015). This indicates
positive impact on telecom sector. In the political factors which involving health and safety
regulation, policies and procedure of license issuing. The government is regulating some policies
and procedures of telecom industry. The government is moving to open markets to globalization
which creates opportunity for business growth, increasing infrastructures' development and
increasing for free public Wi-Fi hotspots for expanding and promoting wireless services.
These factors are affecting the business in both positive and negative manners. Thus,
political external factors are creating opportunities for growth and expansion in industry
environment. This indicates negative impact on telecom sector.
Social Factors:
In these factors includes customers needs and wants, trends. Consumers are buying
internet, mobile and television packages. They are using package for communicating with
friends, searching for jobs, buying online products and finding stable careers. In the telecom
industry, creating opportunities for increasing of adoption of mobile devices, increasing usage of
online mobile services, increasing demand for high quality in products (Wang and et.al., 2016).
Consumers are using mobile for conferences calls, emailing, video calls and instant messaging,
so that companies are producing new technology in their products.
The social factors are associating with telecom industry for all about career, attitude and
safety. The BT is company which are providing mobile services and broadband services.
Therefore, they are affecting with social factors. They are providing services according to recent
trends, customers needs and wants, cultures etc. Because nowadays every person is using mobile
phones and buying internet packages for studies, searching jobs, communication and other ways.
It is difficult to expanding of telecom business in rural areas. There are major opportunities for
growth and expansion of business (Frue, 2016).
Telecom is becoming a vastly important aspects of daily life of average person. The
usage of telecom services are rapidly growing in the economy. They are creating opportunities
for increasing wireless services and contributing of increasing demand. Telecom companies are

providing better quality products and services for growth and development in the economy. They
are producing better quality mobile devices according to customers needs and wants. Today
world, every one using mobile phones, laptop and computers for different reasons. In the social
factor includes natures of society, number of users, customers taste and preferences, demand,
needs and wants, different cultures, customers buying behaviour and purchasing power of
customers (Stathis, 2015).
These elements effect company's selling, profits and revenues for contributing in the
economy and also effects growth and development. These factors affecting the business in both
positive and negative manners. Therefore, company should make efforts on produce to products
and services which satisfying of customers needs and wants, demand, buying behaviour and
purchasing power of customers. Companies are providing better quality products and services for
completion of customers needs and wants, taste and preferences, cultures etc.
Technological Factors:
The entire telecom industry is based on technology so that change in technology is
deeply influenced. In the telecom industry, advance technology is most important requirement
and needs. Companies are using advance technology in their products and services. BT is the
company who is providing mobiles services and broadband services, so that they are using and
adopting new and advance technology in their products and services. They are providing mobile
services with basic needs like voice mails, caller ID and messaging are covered (Ogara, Koh and
Prybutok, 2014). The company needs more investment for development in laptops, computers
and smartphones. This factors create opportunities for widely spreading development of
information and communication networks around the world. It creates threats relating to security
via using network or information technologies. It creates opportunities and threats for rapid
advancement of information and communications technologies.
There are opportunities for global businesses' growth and expansion based on
technological factors. Peoples needs to going for internet access. Companies are producing new
phones and communication on the daily basis and clarifying or focusing on new technologies in
the market. This factor affects company growth, expansion and development in the economy.
Thus, it is most crucial factors which affects sales, cost and pricing of products and services
which are providing by British Telecommunication. For expanding of business, companies needs
to more investment.

Information technology is rapidly changes, so that it includes business and productivity.
The telecom sector standing to gain the most technological trends. Smartphone and tablets sales
are growing faster and fast connecting with each other. Nowadays, 5 G is coming up in market
and rising the lot of excitement. In the smartphones, adopting advance technology like
biometrics, video calling, emailing and other features. Advance technology is giving and creating
opportunities for telecom providers. 5 G network is expecting to taking by reducing costs for
providers and speeding up connection many times. Through technology, cars, home and business
connecting with core. Thus, technological forces are most crucial affecting the whole telecom
industry (Smith, 2018).
Technological factors are affecting the business in both positive and negative manner. It
increases profits and sales by providing better quality products and services by using advance
technology and innovation. This indicates a positive impact on the business, whereas, it will
affect the firm negatively in terms of investment where BT will require spending large amount of
cost for adopting inventive practices. Companies are adopting more technologies like
conferences call, video calling with international clients. Therefore, company is adopting new
technologies and innovation in their products and services for customer expectation and
satisfaction.
CONCLUSION
In this report, it can conclude that different issues and challenges like business structures,
laws and regulations which are facing by companies in globalized environment and different
contemporary issues which affects in businesses operations of British telecommunication. It can
conclude that various external factors such as social, political and technological factors which
affects businesses environment. In social factors includes cultures, customers tastes and
preferences which affects on telecom sectors. These factors are affecting on business in both
positive and negative manner. Laws and regulations, policies and procedures, taxes and rates are
including in political factors which affects on business operations. In the technological factors
includes new technology and innovation which affects on telecom sector.

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