Globalization and Business Strategy

This assignment examines the influence of globalization on business strategies. It explores how companies adapt their production methods, marketing approaches, and overall competitive strategies to navigate the complexities of a globalized marketplace. Key concepts such as international product differences, cultural considerations, and legal regulations are discussed in relation to maintaining quality and standards across diverse markets.

Spring 17
Effectiveness in the Business World
(EBWO3001)
Week Contents Page Learning
outcomes
Week 1-2 Compare a UK-based charity and one of the
organisations above in terms of:
 The type of business (e.g. sole trader or not
3 LO2
Assessed Learning Outcomes:
1. Demonstrate an understanding of the concept of the organisation and the
environment in which it operates, including determining the competitive
advantage for an organisation.
2. Identify and analyse organisational operations, responsibilities
3. Discuss the needs of the consumer and people who work in a business.
4. Recognise a range of issues related to business and how they interlink.
5.

for profit corporation)
 Purpose and Ownership
 Size and Scale
and highlight any differences between the two
businesses.
Week 3-4 What does Pestle stand for and why is it used?
 Describe how Political, Legal and Social factors
may impact the business activities of one
organisation
4 LO1
Week 5-6 Choose a product or service you believe has a high
consumer demand and explain how these affect the
demand for the product or service chosen.
Internal Influences External Influences
• Perceptions Reference Groups
• Motivations Culture &
Subculture Social Class.
5 LO3
Week 7-8 Explain the ethical issues a business needs to
consider in its operational activities. Focus on a
current organisation.
 Highlight the effects for the business and
stakeholders for this business operating
ethically.
 Describe the social effects of business ethics
facing this business in different areas of
activities.
6 LO4
Week 9-10 List three drivers of globalization and explain how
they influenced the events of a current business news
story.
7 LO4
Total word limit:1500 words(+/- 10%)
This Portfolio is a working document that MUST be completed over the 11-week course. For some of the tasks, you
are required to apply concepts and theories discussed during lectures to business news stories.
By the end of the 10 week course, you should have completed 5 tasks. You will also be required to work on your
Portfolio during your weekly tutorial session.
EBWO3001 |Effectiveness in Business World1

Below are some companies you may choose to discuss and news sources that can be used to find information about
them.
Possible Companies to Discuss:
Possible News Sources:
EBWO3001 |Effectiveness in Business World2

ASSESSMENT - PORTFOLIO
Week Task 1 Word
Count
Mark
Week
1-2
LO2
Compare a UK-based charity and one of the organisations
above in terms of:
 The type of business (e.g. sole trader or Not for
profit corporation)
 Purpose and Ownership
 Size and Scale
and highlight any differences between the two businesses
300
Words
20
Marks
Business/Charity:
The comparison between different organisations contributes to the ability of a person to identify
distinct performance strategies of different organisations. The charitable organisation named as
“Save the Children.”, is a non profit organisation in United States. It runs more than 185 million
children in around 120 countries. They work on the children’s health, education and protection on
the desire of the children. They give opportunities to the children to learn and develop the critical
skill. This organisation was established on 1919 and the owner of the organisation Eglantyne Jebb
and Dorothy Buxton. The purpose of the organisation is to feed the hungry, proper nursing to the
backward children. Hong and Lu, (2016, p55), stated by, not only that child must receive relief
times of distress and earn livelihood to protect against exploitation. On the other hand, Toyota is a
world's second automobile private Ltd. Company founded by Kiichiro Toyoda. It was established
in 1937 in Aichi. It has worldwide production over 10.084 million (8.929 million for Toyota and
Lexus Brand 2015). In public organisation their main aim to earn maximum profit and revenue
which in turn distribute dividends and profit to the shareholder. The benefits are not only for the
company it also plays an important role for the society which considers the environment policies.
The major differences between a profit and non-profit organisation, a non profit organisation do
not pay any tax as they work for the welfare of the society and reinvest on the surplus of the
business. In profit corporation no legal duty or obligation on welfare of the society or itself.
Therefore, they are not exempted from tax. Whereas, both the organisation need a proper decision
making structure which will get the society as well as the firm's extra benefit and extra
responsibility on the members of the organisation.
EBWO3001 |Effectiveness in Business World3

Week Task 2 Word
Count
Mark
Week
3-4
LO1
What does Pestle stand for?
Describe how Political, Legal and Social factors may impact
the business activities of one organisation.
300
Words
20
Marks
Business:
PESTEL analysis is a tool which is used by the marketers to analyse the external environment of
the market. PESTLE stands for political, economical, social, technological, ecological and legal
factors of the business. Toyota Motor Corporation is one of the reputed automobile companies. For
identifying the threats in this organisation various external factors influence.
Political factors: The analysis model identifies the policies of the government rules on the firms
and industry. There are also some other political factors in the macro environment:
 It is an opportunity to the political stability in the major market to increase the minimal
tension from political.
 Eco Friendly product is also a good opportunities for the company to improve the service
which is supported by the government.
Economic factors: According to Sun et al. (2014, p305), the effects on economic situation or
changes take place in the organisation are due to economic factors.
 There is an opportunity for the organisation to improve the currency issues Yen Vs US
Dollar.
 Business growth in US which will make an opportunity to the organisation to become the
second largest after Japan.
Social factors: The social factors which influence are:
 Increase in hybrid cars to satisfy the customers and the interest on the product.
 The company consider the wider gap of wealth which becomes a threat for the organisation
and cause declining the middle class.
Technological factors: The most notable external factors in the company:
 Using of e-commerce is an opportunity to the organisation to exploit the service for sale
and the products.
 Apart from this cybercrime is a threat for the company where cyber-espionage of corporate
EBWO3001 |Effectiveness in Business World4

must be addressed the company.
Ecological factors:
 Climatic changes which affect the ecological factors by providing environmental products.
 The organisation increases its sustainability by improving and giving more emphasis on the
business process.
Legal factors:
 According to Rachet (2014, p23), the organisation has a scope to improve the quality of the
product which will satisfy as well as fulfil the requirement of the environment.
 Satisfy the consumer law by improving the company can exploit the opportunity for
offering safe product and services.
Week Task 3 Word
Count
Mark
Week
5-6
LO3
Choose a product or service you believe has a high consumer
demand and explain how these affect the demand for the
product or service chosen.
Internal Influences External Influences
• Perceptions Reference Groups
• Motivations Culture & Subculture
Social Class
300
Words
20
Marks
Product/Service:
Today Apple iphone has a high consumer demand on the market. There are many factors which
affect the demand of the product. Basically demand refers to quality of goods and services where
the customers willing to buy the product in different level of product. Whereas the supply of
different level of prices and the specific period of time.
Customer’s preference and taste affect the demand of iphone because of personal preferences and
advertisement. Increase in popularity of such brand with increase in demand for the smart phone.
As stated Metzger (2014, p44), different advertising campaign by apple is successful which cause
EBWO3001 |Effectiveness in Business World5

rise the demand of the product. Apart from this consumers taste also get change which also cause
high demand of such product. Hence, this cause demand curve shift to right which result shortage
of the product and the price goes upward. As such, the qualities of the product also get increased.
On the other hand, change in income level also affects the demand of the product. For example in
Singapore people are getting rich to improve their economic condition therefore the demand for the
iphone will also increase. This will cause increase in income level, on the demand for the normal
good.
According to Greenwood, (2016, p99), cost of production affect the supply of the product which
manages to reduce its cost of production through innovative techniques and increase in supply of
the product. Here, the supply curve shifts to right, resulting in surplus and pushing the market price
down.
In reality, the supply of the product increase more than the demand. The competitors have already
started to catch up and establish a strong market in the smart phone. Both demand and supply
reinforced the market quality.
Week Task 4 Word
Count
Mark
Week
7-8
LO4
Describe three ethical issues a business needs to consider in
its operational activities in relation to a) its employees and b)
society in general. Focus on a current organisation.
Comment briefly on the advantages and disadvantages of
operating ethically in each case.
300
Words
20
Marks
Organisation:
Managers and the supervision want to create an ethical environment to encourage and discourage
them to practice unethical behaviour. Ethical issues on operational activities in relation to the
employees are to identify the ideas of conducting the business work in honest way. Treating every
customer fairly with a commitment to fulfil and understanding their wants. Ethical decision making
process should be maintained for protecting employees and the customer's rights. A business
expectation is to uphold the society values by maintaining proper principles or values. As stated by
Knežević and Wach (2014, p22), obligation, moral ideas, and ethical dilemma with the automobile
EBWO3001 |Effectiveness in Business World6

makers which are determined while doing business. Apart from this poor ethical and moral
practices on business can create loss of resources. Loss of trust and loyalty can influence the
customers to move towards the competitors. The unethical practices reduce customer loyalty which
involves activities which is associated with corporate social responsibility (CSR). It includes
responsibility of the environment, investment in local community and relationship with the
stakeholders.
Business ethics offers advantage to the competitors. Trust and loyalty with the customers is with
the ethical brands during difficult time. According to Rock (2014, p12), best selling product always
attract the customers confidences instead of contamination scare .Whereas, ethical business
recognize their social responsibility for the society.
Hence, sometime ethical business can reduce the freedom to earn maximum profit. Poor health,
child labour and low wages are also not accepted by the ethical company. However, this would
make the company to argue restriction on the freedom to wider society. Therefore, the ethical
practices have two phrases with advantage and disadvantage on business.
As a result, unethical behaviour can be easy for the short run benefits but for long run this practices
will make it worth .This will be create a loss and paid by the company profits, investors and
customers.
Week Task 5 Word
Count
Mark
Week
9-10
LO4
List three drivers of globalization and explain how they
influenced the events of a current business news story
(published in 2016/2017).
300
Words
20
Marks
News Story:
The media on globalizations and international organisation talks about different drivers of the
globalisation but three main drives that affect today's business are as follows:
Technological Innovation: The most important to develop the global communication by optical
fibres, developing high power satellites to develop their processors. The latest technology and
EBWO3001 |Effectiveness in Business World7

microprocessors enable highly effective computing and communication at a cheap rate. Today this
rapid growth of internet is the latest technological drivers which create global e-commerce.
Marketing globalisation: Nowadays, domestic market is more saturated and their opportunities for
such growth are very limited. Therefore, the organisation in this global expansion chooses this to
overcome from this situation. As stated Schotle (2015, p55), certain product have high purchasing
power and infrastructure is well furnished. This make the product effectual, still the other product
may have fare price but less sophisticated.
Globalization of Production: Merging national market with huge global market place is
globalisation. According to Georgi (2017, p30), running the long run organisation it offers a
standard of product and the quality to maintain the standard of product. The main difference
between the national and international product is their taste and size of the product, cultural and
legal regulation of the product. This difference required marketing strategies in order to maintain
the standard and quality of the product. Globalisation measures the trade openness to develop a
good market.
Therefore, globalization is the one of the wide term used in recent time to cross border movement
of the goods and services. It also defines as increasing national economic across the world through
technology and capital. It is also varies from the operating domestic and primarily to maintain the
infrastructure of the organisation. Developing and development is two different key in the process
of globalisation.
References:
Anton, R., (2015). Leeds: An Integrated Strategy Framework (ISF) for Combining Porter's 5-
Forces, Diamond, PESTEL, and SWOT Analysis.
Georgi, D., Wirtz, J., Xiao, P. and Tang, C., (2017). Effectiveness of Customer Referral Reward
Programs: The Mediating Role of Metaperception. In The Customer is NOT Always Right?
Marketing Orientationsin a Dynamic Business World (pp. 723-723). New York: Springer, Cham.
Greenwood, J. ed., (2016). The effectiveness of EU business associations. New York: Springer.
Hong, J. and Lu, J., (2016). Assessing the effectiveness of business incubators in fostering SMEs:
evidence from China.: International Journal of Entrepreneurship and Innovation
Management, 20(1-2), pp.45-60.
Knežević, B. and Wach, K. eds., (2014). International Business from the Central European
Perspective. Zagreb: University of Zagreb, Faculty of Economics and Business.
Lee, K. and Eckhardt, J., (2017). The globalisation strategies of five Asian tobacco companies: A
EBWO3001 |Effectiveness in Business World8

comparative analysis and implications for global health governance. Global Public Health, 12(3),
pp.367-379.
Metzger, K., (2014). Tesco: Business analysis of UK supermarket industry.
Rachet, B., (2014). Glasgow: PESTEL analysis and Porters Five Forces For Innocent Drinks
Company. Docs. school Publications.
Rachet, B., (2014). PESTEL analysis and Porters Five Forces For Innocent Drinks
Company. Docs. school Publications.
Rock, D., (2014). Quiet leadership. New York: HarperCollins e-books.
Schotle, J.A., (2015). Globalisation, governance and corporate citizenship. MacIntosh, M.(2015).
Business, Capitalism and Corporate Citizenship: A Collection of Seminal Essays. Greenleaf
Publishing in association with GSE Research, pp.43-53.
Sun, Y., Guo, P., Ma, Z., Li, T. and Dang, S., (2014), November. UK-based external business
environment analysis of outdoor adventure clothing using the PESTEL tool and its future outlook.
In Information Technology Systems and Innovation (ICITSI), 2014 International Conference
on (pp. 306-309).New York: IEEE.
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