Globalisation and Rowlinson Knitwear Expansion

This assignment analyzes the impact of globalization on business profitability and productivity, using Rowlinson Knitwear as a case study. It examines various barriers to international expansion, including high costs, cultural differences, technological limitations, and political instability. The analysis emphasizes the need for strategic planning and effective decision-making to overcome these challenges and achieve success in global markets.

Global business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Analyse the factors of cost, market environment and competition which drive global trade
for Rawlinson Knitwear:........................................................................................................1
P2 Complexities of the strategic challenges needs to be faced by the Rawlinson Knitwear
Company while expanding the business:...............................................................................4
P3. Evaluate the impact that globalisation would have on your chosen organisation’s
governance and leadership, structure, culture and functions..................................................5
P4. Influence of Ethical and sustainable globalisation on Rowlinson Knitwear....................6
P5 Decision making and their effects in global contexts.......................................................8
P6: Various routes to internationalisation with key barriers..................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Nowadays, global trends in the last two to three decades have been rapidly changed which
ultimately sustained growth for doing global business. Markets have seen that there is global
organisation for the higher goods, various services and particularly for the financial instruments
of all kinds. However, global product trade has increased by more than 6 percent a year since
1950, which is higher than 50 percent faster than the growth of output which shows drastic
enhancement in the globalisation, which ultimately occurred in the financial markets (Werther,
and Chandler, 2010). However, each business is striving hard to expand business operations for
gaining the competitive advantages of the others. Rawlinson Knitwear is a small mid-sized
company which specially deals in the retail clothing segments. Although, this can be said that the
company is expanding their business operations in Africa, North America, and Asia. But before
going to expand the business, company is required to have detailed analysis of the potential
market where the company is planning to have their business operations. In this file, company’s
financial analysts and various top most analysts would decide about the potential markets where
the firm is going to have their business operations (Wild, Wild. and Han, 2014).
TASK 1
P1 Analyse the factors of cost, market environment and competition which drive global trade for
Rawlinson Knitwear:
There are four wide groups of industry international drivers- market, cost, government and
competition. These four sets of drivers include most critical industry situations which influence
the potential for international. Drivers are highly uncontrollable by the global firm. Each industry
has a level of international potential which is identified by these external drivers.
Market Drivers Cost/ Economic Drivers
 Convergence of lifestyles and taste
 Enhanced travel forming international
consumer
 Emergence of international and local
channels.
 Push to emerge international
 Regular push for economies of scale
 Increasing in foreign acquires of
corporation.
 Enhancement in transportation.
 Growing of NIC.
 Enhancing cost of product
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advertising.
 Comprising product life cycle
development.
Government Drivers Competitive advantages
 Limiting of tariff barriers
 Formulating of trading blocks
 Decrease in role of government
 Change in open market economies
 Enhancement in level of global trade
 Increasing in foreign acquires of
organisation
 Organisation becomes
internationalisation centred
 Internationalisation of financial
markets.
Globalisation refers to the global integration of global trade, investment, information
technology, and cultures (Wild, Wild and Han, 2014). This is determined by government policies
framed to open up the economies locally and globally in order to boost growth in the under
developed nations and enhance standards of living for their people. Global business includes
diverse kinds of business activities which crosses county’s borders. Although, this can be said
that the number of various business activities have crossed national boarder. International
business is elaborated as the firm which buys or sells goods and services throughout two or more
local boundaries. Globalisation is a kind of expanding the business operations around the globe
without having barriers. Although, Rawlinson company is striving hard for operating effective
expansion of their operations in diverse region. There are various factors of costs, market
environment and competition which ultimately affects the business in an effective manner.
There are various factors of costs which helps the company to have an expansion in the
emerging markets in a most effective manner. Some of the costs factors are mentioned
hereunder:
Cost globalisation drivers: Globalisation of customer requirement requires and
opportunities for scale and standardization. this would usually alter the economies of diverse
industries. Economies of scale and opportunity, experience effects and exploiting differences in
factor costs for the product development, production, and sourcing in diverse parts of the planet
would consider a significance as determinants of international strategy.
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National markets could not be more enough for a local business in order to attain entire
economies of scale and scope. Global organisation could expend and coordinate inner production
and operations in order to enhance its value via combination of production, lowering delivery
costs and economies of scale (Werther Jr and Chandler, 2010). The main aim is to approach
various markets and sell standardized products in various nations for enhancing their entire sales.
Henceforth, limiting cost per unit of growth, focusing selected value activities and shift
manufacturing in relation to exchange rate fluctuations.
Market drivers: This refers to international market convergence, on the other hand,
enhancing same customer tastes and product preferences in the specific markets, as evidenced by
the popularity of international brands in a particular market.
This driver is based on the customer behaviour and layout of distribution networks. These
components are assessed hereunder:
General customer requirement: goods and technology are transferred by way of
communication via nations with the same needs. Few goods like Coca-Cola, McDonalds, KFC
and others are palatable to diverse nations.
Global customers: The needs of the customers in different countries does not same.
Henceforth, there is a strong need to have a detailed analysis of the customer needs and desire
where the company is going to operate its business in an effective manner.
Global market channels: Free trade, which was permitted by the local trade blocks like-
incorporating of EU and NAFTA, and failing trade related constraints which have incorporated
international enhancing channels which assist organisations to distribute products and render
services globally. For instance, Walmart have emerged international channels to disperse
products.
Lead nations: Few nations have incorporated in specific manufacturing industries. For
instance, Japan is the most renowned for the consumer electronics, while on other hand,
Switzerland is known for the watches and its advance banking system.
Transferable marketing and international branding: Nike, Adidas, Toyota, Samsung have
become regional brands under the global environment.
Global market convergence is calculated by the percentage of international sales
attributed to the standardised goods. There is a strong requirement of Nokia here, which
enhanced its Indian market stake from only 300,000 subscribers during 1996 to drastic
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enhancement in 2004 and reached to 55 million subscribers. Enhanced global brands are
introduced to life, along with percentage of global sales attributed to them consistently
enhancing.
Global Competitiveness:
In order to attain international competitive advantage, cost and revenue is required to be
managed at the same time; efficiency and creativity are highly crucial, as innovations could take
place in diverse parts of company, selective decisions are required to be incorporated rather than
centralising and decentralising assets (Trompenaars and Hampden-Turner, 2011).
Specific resources and ability are the best centralised throughout home nations operation,
not only to have scale of economies, but also to save core competencies and to render essential
checking of corporate management.
Few resources might be decentralised, on a regional basis, either as small potential
economies of scale as compared to advantages of differentiation or as of the need to form
flexibility and to limit exclusive reliance on a single facility.
P2 Complexities of the strategic challenges needs to be faced by the Rawlinson Knitwear
Company while expanding the business:
While expanding the business operations of Rawlinson company, various strategic issues
are required to faced. These are mentioned as under:
Diversity: This is the main problem which is required to face various problems while expanding
their business operations. Cited organisation requires to face complex issues which are
characterised by the diversity covering inner and outer part of the company. Within the company,
various managers and executives are requiring to handle and respond to higher diversity in the
HR pool; wide range management system; higher variation within the means and ranging from
easy financial objectives to a most comprehensive manner; and diverse business models for
diverse kinds of business units (Tarique and Schuler, 2010). On the other hand, outer part has
great diversity: different-different consumer need; diversified cultural values, various political,
economic and legal environments and so on. There are most of the organisations who are having
business operations in various countries, faces these kinds of issues while expending their
business operations in an effective manner.
Interdependence: This is the main tool which is faced by the company while expanding
operations in abroad. Interdependence is like when something is connected to the other thing. If
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things are not linked up with other substances, then in that the case the operations in other
country could not get succeed. For managing this, top level authorities and various management
tools make certain plans so that the inter-dependence must have an effective manner. as this can
be rightly said that the interdependence creates opportunities for the globalisation which would
ultimately help out to make sustainable development.
Communication and cultural differences: Diverse nations have different cultures due to which
organisation might address challenges for having interactions with people in a most effective
manner (Simic and Dimitrijevic, 2012). Henceforth, this is needed for the organisation to have
employees for forming strong communication skills and knowledge about diverse culture in
order to know the interest and buying behaviour of people. Manager must need to convene
research of market before going to have business activities which assist them for determining
cultural divergence through which they could frame strategies in an effective manner.
P3. Evaluate the impact that globalisation would have on your chosen organisation’s governance
and leadership, structure, culture and functions.
Globalisation made a huge impact on every type of organisation. Some support it because
they get benefited by it while others did not support it due to its unfavourable affects. Below is
the influence of globalisation on Rowlinson's governance, structure and function:
Governance and leadership – Every company has to follow some rules and process
because it assists them in moving correct direction and controlling also. Globalisation will
increase number of stakeholder of this organisation and this will ultimately bring more
complexity in business (Peng, 2016). In present scenario, this enterprise is limited number of
suppliers, competitors and customer but globalisation may enhance this number. Corporate
governance always focus on fulfilling needs of stakeholders and assuring will be difficult for
them if they enter in new economy or some new competitors enter in their business environment.
Globalisation opens the option of expansion and thus it forces leaders to change their leadership
style according to the situation.
Structure – If Rowlinson will sell their goods in other nation or import from other
territories then they have make some changes in their organisational culture (Louhiala-Salminen
and Kankaanranta, 2011). They may have to switch the structure of company or expand the
current one. Although expansion in organisational structure will make things complicated but it
will be entail for them.
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Culture – In present scenario, role culture is followed in this company. Globalisation
may force them to adopt power culture because top level management of Rowlinson has to
depend on others for assuring that expansion of business do not derail their operations.
Function – This organisation is currently known for selling knitwear but globalisation
may enhance number of their competitors and force them to open more stores and increase more
units for marketing and production department. For increasing more offerings, they may have to
expand HR division and perform other significant functions.
Globalisation made a huge impact on every type of organisation. Some support it because they
get benefited by it while others did not support it due to its unfavourable affects (Laudon and
Laudon, 2015). Below is the influence of globalisation on Rowlinson's governance, structure and
function:
More efficient markets: - it is having an important impact to grab more efficient market
area at global level. This will render support to attain profits of an organisation. This sign will
establish where equilibrium will be achieved between buyers and their needs or desires for which
they are paying money.
Increased competition: - It is well known that if an organisation is surviving in global
market then they have large number of competitive firms along with strong competition
(Kasemsap, 2014). Then it is necessary to make effective business environment to run activities
of company to attain profits as expected. They firms have to make proper decisions for making
effective strategies for conducting several activities to survive in global scenario of market.
Stabilised security: - Global market requires to take appropriate steps toward security of
an organisation so that they become able to organise their desirable events successfully
(Hamilton and Webster, 2015). It will facilitate to enhance economy of nation as well as attain
growth of business along with it.
There are various kind of impacts of globalisation on productivity or profitability of an
organisation due to making decision of leadership, culture and functions of firm. Then they have
to maintain such factors by taking appropriate steps for attaining desired aspects in global
market.
P4. Influence of Ethical and sustainable globalisation on Rowlinson Knitwear
Rowlinson Knitwear is an apparel company of UK which is dealing in knitwear and other
products related to knitwear. Company's products are appraised all over UK and therefore it is
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planning to expand its business in some of the other continents like Asia, Africa and north
America. The aim of the company is to tap consumers of these countries and provide them its
products which is very conservatively priced, the company is also seeking to provide its various
products in which company has specialisation and according to company, it can gain a
considerable market share going forward (Gecevska and et. al., 2010). The particular countries in
which the company wants to expand are India, Bangladesh, China, Indonesia in Asia region and
South Africa, Nigeria, in Africa along USA in North America, the main aim of the company is to
increase its business in these countries as it contains consumers with high per capita income and
high discretionary spending. For the purpose of globalisation company have two options as far as
implementing this business strategy is concern, The first option includes opening their own
stores in these countries and sell products in its own brand names but this option would include
heavy expenditure and it may cost company to raise finance from various sources as it is a mid-
sized company and may lack necessary resources to do so neither company carries an effective
and famous brand that would help it in selling its franchisee to other corporates and businesses in
those countries. Hence, the only option left with company is to expand its business through
enhancing its Exports in these countries. The company should look for buyers in these countries
for this company can use online resources such as social media, websites etc. to tap consumers
with different needs and wants.
Due to stable condition of business company wants to expand its service in Asia. In order to
expand its service company, determine various factors which are related to expansion of business
in Asia. In scenario of business every organisation focuses on expanding them in order to attain
goals and objectives of company (Ferraro and Briody, 2017). So management of Rowlison
knitwear implement new and innovative methods in order to expand its business in different
market place of Asia. Due to globalisation every industries wants to compete its rivals in short
period of time. So management put its effort in order to enhance the performance of organisation
taking feedback from the customer. As this company deals with manufacturing of clothes so it
implements various types of designed which help to attract large number of customers.
These innovative design can have bought by the customer which help to enhance the level of
profit of company (De Jonge, 2011). This company provide various types of product to the
people of Asia according to their demand and choice. It helps to attain sustainable position in
marketplace of Asia. This company puts its effort in order to fulfil desire of customer. It
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communicates with customer to know desire of customer and take initiative steps in order to
fulfil desire of customers. In present scenario company tries to implement different types of
clothes and luxurious products which are of updated design and quality in order to capture large
market share in marketplace. It helps to achieve goals and objectives of company (K. T, 2010).
Management of company implement different types of strategies which help to increase the rate
of sales of clothes and other products which launch in the Asian countries.
P5 Decision making and their effects in global contexts
Decision making is a crucial aspect for expansion of business in new destinations. A
good decision making will aid organisation to expand profoundly in market and make profit. The
company is a small scale organisation which want to expand in south Asian region so their
decision making must involve people of that region (Cantwell, Dunning and Lundan, 2010). The
organisation has made several decisions and planning in in context to expansion of business
which has some major effects. Some of decisions and their effects are mentioned below:
External sector
Market analysis – The top level management has decided to do several research in market
which includes type of customer, people, attitude and behaviour and cost of capital of that
market. This will help them in making better planning and adopt right approach.
Customer demand – The market analysis must be customer based. To increase
productivity organisation must understand behaviour of customer in market. The company must
understand need and want of people in given market so that they can earn better profit
Competitors – Before investing in new market organisation must analyse different
competitor exist in business market. The management must compare potential of competitive
organisation e.g. their potential, sustaining capability, financial ability, market policy and profit.
Analysing these factors will help organisation tom make better planning for their business
practices.
Internal factor -
Workforce – before expanding their business in global structure the organisation must
make sure that they have a strong internal workforce which includes skills, knowledge, altitudes,
and their resonance with goals and planning of the enterprise.
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Manufacturing units – The decision making must also involve decision making related to
inventory and machinery. Advance and automated tools and machinery will help company to
increase their productivity and sustaining capability
Structure of organisation – Organisation must have a well-defined structure of their
company so that they can easily guide their employees
Skilled and knowledgeable nature – Decision making before assigning their employees to
the new venture must ensure that they have adequate skill set and efficiency tackle different
challenges in business market.
Rewards and appraisal- it is prominent and critical thing for both employee and employer
hence it's significance are spread all over the enterprise. They both provide help for enhancing
the level of performance and bring loyalty in workers. other side, rewards aid to firm as if they
are offers appraisal to their employee them firm's goodwill will be enhanced in the outer world.
P6: Various routes to internationalisation with key barriers
Globalisation is considered as an effective process through which an organisation can
perform business activities at huge level. Through such methodology, the company can able to
earn revenue. It enables them to attain strong position in competitive market world and assist to
get advantages which help them in competing with their rivals. As Rowlinson Knitwear decide to
expand its business in different countries such as Australia, India etc. then they need to focus on
merging with existing organisation with the help of taking support from them, the company can
easily attain stable position in new market in different country. But due to some barrier they find
difficulties in reaching their business to different countries (Colfax, Rivera and Perez,). Such
barriers are explained as below:
 The main barriers for an organisation is globalisation cost as expanding business to
different countries required huge amount of money thus it is essentially requiring for
management of company to first analyse the nations where they can invest easily and
achieve profitable result. Therefore, the manager of Rowlinson Knitwear should focus on
such countries where the interest rate of FDI are less. Thus, cost is major aspect which
restrict company to expand their business and need to require to overcome such barriers
through adopting an effective way.
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Another barrier that restrict company to expand business is culture which are different in
different countries. This will make huge impact on the growth and development of an
organisation along with their profits as well (Cavusgil and et. al., 2014). Thus it is important for
manager to determine all such aspects while taking decision so that they can attain strong
position in market for longer duration. The company need to focus on adopting cultures and
accordingly manufacturing clothes which represent their cultures as well.
 Technology is also one of the barriers which restrict company in getting success and
development of an organisation. Thus it is important for an organisation to focus on
adopting advanced technologies and methods so that they can produce good quality
products to the customers. It brings efficiency and motivation among workers regarding
their work.
 Political stability is also factor which stop company in reaching their business to
worldwide. As due to changes in rules and policies of country, it becomes difficult for
company to conduct business operation in an effective manner. Therefore, it is the
responsibility of the cited company to effectively analyse the political stability so that it
can’t affect business operations in negative way.
CONCLUSION
The above assignment had concluded that business environment al global level has an
essential as well as greater impacts on profitability and productivity of an organisation. Then
it is necessary to prepare various kind of strategies and policies by making effective or
efficient decisions. This will facilitate to carrying out different activities and procedures
which are essential to complete specific projects in appropriate manner. The enterprises need
to maintain comfortable business environment if they want to enhance their organisation
worldwide. This can be done through establishment of an effective management to so that
employees become able to work properly for attaining success.
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REFERENCES
Books and Journals:
 politicalIcomneeds
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