Globalisation and Business Analysis: Impact of Global Trends on Lush Cosmetics

This report analyses the impact of global trends on Lush Cosmetics, discussing key business activities and challenges faced by the company in its globalization plan. It covers concepts of globalisation, world economy, market integration, capitalism and consumerism.

Project1 Globalisation and
Business Analysis

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PART-A...........................................................................................................................................3
Terms and concepts......................................................................................................................3
Part-B...............................................................................................................................................5
Presenting the impact of global trends and its influence on the drivers that makes the
globalisation possible ..................................................................................................................5
PART-C...........................................................................................................................................6
Discussion of the key business activities of Lush Cosmetics......................................................6
PART-D...........................................................................................................................................7
Challenges faced by the company in its globalization plan........................................................7
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Globalisation refers to the process of communication and integration among the
organisation , companies and government at global level. The growth is seen since the 18th
century due to increase in the transportation and communication technology. It also refers to the
spread of technology and information across various nations(Almeida, and Chase-Dunn, 2018).
Through globalisation , companies can gain competitive advantage which enable the
organisation to reduce their operating costs by expanding its business in different countries. The
present report covers the various concepts of globalisation, world economy, market integration ,
capitalism and consumerism(Burlacu, Gutu, and Matei, 2018). The impact of global trends on
the drivers that results into globalisation . The study also reflects on the activities of the chosen
organisation and various challenges and issues faced by the organisation in the globalised world.
The chosen company is Lush cosmetics.
MAIN BODY
PART-A
Terms and concepts
Globalization: The term globalisation refers to the integration of the economy and is the
collection of various strategies that is associated to contribution in transforming the world
towards greater interdependence and integration. The main purpose of globalisation is to build
the links which helps in determining the barriers that is occurring at global level. It involves
technological , economic, political and cultural exchanges that have taken place with the helps
of advancement in the communication channels , transportation and infrastructure.
Globalisation is mainly concerned with the integration but integration can be positive
and negative. Positive integration refers to standardisation of the international economic policies
and regulations whereas on the other hand negative integration is defined as the breaking down
the trade barriers such as tariffs and quotas(Sforza, and Steininger, 2020). It has been observed
that people have gained various benefits from the geographical locations by migrating and by
making trade and business relations. Today also this process is being continued on the large scale
by introducing new free trade agreements and developments.

World economy: World economy refers to the global economy is the economy associated with
all the human of the world and is defined as the sum of all the activities that takes place within
the economy between different countries. Every country has different and have their own
industrial production , labour and financial market , resources and environment. With the helps
of globalisation has resulted into development of the international trade and migration of labour
force which help the countries to find effective ways to communicate with the other
countries(Wu, and et.al., 2018). One of the major impact of globalisation are drastic changes
that takes place in one country and influences the functioning of other country for example
Brexit. There re various tools to measure the economic activity of the country and the most
common is GDP.
Market integration: Market integration occurs when the prices among the different locations
follow the similar pattern over a period of time. In market orientation the group of goods move
proportionally to each other. It also acts as an indicator and explains how markets are connected
to each other(Frøyland, and et.al., 2019). In the market integration marketers plays major role of
an integrator as they collect the feedback and response from various channels and consumers
and find possible solutions to resolve the issues associated with the products and services of the
company. Market integration helps in enhancing the financial position and also increases the
economic efficiency which results in economic growth of the country.
Capitalism: Capitalism refers to the economic system in which the private business ad
companies own capital good. It is based on the enforcement of the private property rights that
provide incentives for the investment and use of the productive capital. The major
characteristics of capitalism is to generate profit. Capitalism is built on the following pillars i.e. it
is associated with the private property where people can own tangible assets such as land and
houses. Capitalism is generally connected with self- interest where an individual acts for their
won good without concerning for socio-political pressure. It is based on the market mechanisms
that determined the prices in a redistributed manner(Fraser, and Jaeggi, 2018). In capitalism
there is limited interference of the government in order to protect the rights of the private
individual and maintain favourable environment which also facilitates proper functioning of the
markets.
Consumerism: Consumerism refers to the social and economic order that motivates the
acquisition of the goods and services. It is a belief that personal well-being and happiness is

based on level of consumption of an individual through purchasing of goods and services. It is
also observed that public spending contributes in the economic growth of the country. In other
words, it can be said that consumerism is the protest by the consumers against the unfair trade
practices and business injustice(Boobalan,and et.al., 2021). Basically it is designed for the
protection of the consumer’s interest at the workplace. It can also be stated that consumerism is
the process of through which customers can seek justice for the dissatisfaction they suffer.
Various laws have been implemented by the governments to protect the rights of the customers
and provide justice.
Part-B
Presenting the impact of global trends and its influence on the drivers that makes the
globalisation possible
In the present time globalisation is considered as the one of latest trends in the changing
economy. It is facilitated by various factors which includes the liberalisation of foreign trade and
also financial markets. The major role of financial markets is that is profitability and wealth
maximisation of the shareholders also contributed towards globalisation. It has been observed
that globalisation has increased the pace of technology and cross border technological transfer
has not only contributed towards increasing the domestic productivity levels in developed as well
as developing countries(Kharlamova, and et.al., 2018). The emergence of new technologies is
changing the statues of the growth in various developing countries and also the nature of
international trade.
It has been observed that with the advancement of technology there has been increase in
inequality. Technology plays very major role in the income and financial inequality. It can be
considered as the driver for economic growth which helps in improvements in the productivity
and also contributes in the economic growth of both developed and developing countries.
From the studies it has been observed that with the rise in technology, the wages of the labour
are being affected which has resulted into rise in the inequality. With the increase in the
technology, there has been increase in the wage rate of the labour which resulted in boost in the
income of the employees(Zucman, 2019). With the advancement of new technology, it requires
more skilled and trained employees which also result into increasing the income gap among the
employees. Routine task can be performed with the help of new machines and equipment as
skilled employees can focus on other core task, but it becomes difficult of the low skilled

workers who perform the routine task and due to technological advancement it gives rise to the
inequality.
The emergence of new and advanced technology had negative impact on the drive r and resulted
in to increase in inequality. The rising income inequality due to advancements of the technology
is the major factor in the developed and developing countries. The government is also making its
contribution in reducing the inequality which has also affected the growth of the economy.
But it can also be observed that technologies can also help in reducing inequality and it
depends upon the capabilities of the people to access and use the technologies which also help in
finding solutions to their problem(Coccia, 2018). Various measures have to be taken in order to
reduce the income inequality through technological advancements in the phase of globalisation.
Policies should be introduced in order to ensure economic gains. On the other hand, it is
necessary to maintain favourable working environment and ton access to the opportunities and
technological changes which helps in enhancing the capabilities to adjust to the new challenges
which give rise to income inequality.
PART-C
Discussion of the key business activities of Lush Cosmetics
Lush cosmetics is the one of the British cosmetic retailer headquartered in United
Kingdom. The company was founded in 1995 by trichologist Mark Constantine. The company
has expanded its operations in various countries and currently having 951 stores globally. The
company offers the products that is 85% vegan cosmetic products. The company operates at
global level but most of its locations is located in the US. The company deals with the
production and retail of handmade cosmetics . The company deals in variety of products body
and skin care products and is made of natural products such as honey and vegetable oils. The
products also includes the lotions and shampoos(Redmond, 2020). The company is known for
manufacturing handmade products and has secured its position as a natural brand and also
provide fresh products without any chemicals and preservatives.
The company selling all the natural and handmade products have adopted the premium
pricing strategy but in order to compete in the market and to attract customers , the management
has kept the cost of the packaging at minimal cost. The company in order to maintain its position
in the market has adopted various promotional as marketing strategy through both the online and
offline means. The marketing strategy of the company focus on long-term plans in order to

acquire and retaining both old and new customer . The company has not only focused on
increasing its customer base or market position but also focused on protecting and preserving the
environment by making natural and handmade products. The management of the company
receives feedback form the employees about the performance of their products and focus on
improving its core areas and that will helps in improving their sales as well(Fortunati,
Martiniello, and Morea, 2020). The most attractive feature about this company is that they are
against animal testing that proves that the company is complying with all the ethical values that
organisation should incorporate in its business. Rather than testing the products on animal they
test their product on humans. In order to promote its products the company sues digital
marketing strategy and use various social media platforms such as Instagram, Facebook. By
considering various changes in the market, Lush cosmetics rather than investing on social media
platform they considered investing in improving their owned platforms such as Lush.com,
Labs.lush.com etc. Every faces major threat that can have negative impact on its business i.e.
competitors present in the market. The major competitor of the company is The body shop. With
the changing business environment and relevant factors it is necessary for the company to make
required changes in order to sustain in the market and also to maintain its postilion as
manufacturing natural handmade products(Zhivkova, 2022). In order to make substantial sales
and increase the product awareness , it is necessary for the company to adopt various marketing
strategies in order to communicate with the customer and they their preferences and
requirements about the particular product that will helps to improve the progress of the company.
The other strategy they can adopt to attract the customers through advertisement media and the
main reason to choose television as marketing strategy is to to capture target target audience.
PART-D
Challenges faced by the company in its globalization plan
Every company faces various challenges which can affect its functions and can affects its
overall business. IT is necessary for the company to adopt the changes and implement strategies
accordingly which help the company to maintain its position in the market. Various challenges
faced by company are:
 Expansion outside UK: Due to Brexit , the company is threatened to expand its business
outside UK. Due to Brexit there has been various changes in policies and procedures of
UK. The company also suffered from lack of staff during Covid-19 situation as many of

the staff was shifted to Germany(Toropova, and et.al, 2021). The company also faced
various issues post Brexit which force the company to make various modifications in its
management systems and plan new strategies in order to balance the loss and antinomian
its position in the market.
 Poor working conditions: The major issue faced by the company was that when workers
claimed about the unhealthy and poor working conditions as they suffered various
physical injuries and also developed breathing difficulties while working in the
factory,With the help of further study it was observed that workers started developing
health related issues and no proper equipment was provided to the workers for lifting
heavy items. The company did not complied with the provisions regarding the health and
safety of the employees and was not provided proper protection during the Covid-19
crisis.
 Discrimination challenges: Various rules and regulations have been introduced ion order
to provide safety and protection to the employees and workers working in the factory or
company . Furthermore employers are responsible for providing all the necessary
equipments in order to security to the workers. From the studies it has been reported that
the workers faced discrimination and bullying which is illegal and as completely ignored
by the management of the company(de Ávila, and Valadares, 2019). Apart from this the
workers want the management of the company to provide with safety equipments and
focus on the health problems and find possible solutions in order to eliminate such acts
and resolves the issues by listening to the parties affected .
After facing such challenges the company observed decrease in sales and profitability of its
products which was a great concern for the company to expand its business global level. The
company is required to make modification in its plans and strategies and find ways to address the
issues. It is suggested to the company to comply with the provisions regarding the health and
safety of the workers and provide with necessary equipments and safety kits to avoid health
problems. Anti discrimination laws should be introduced and teach every employee to work in
harmony and avoid such issues as it affects the company's overall productivity.

CONCLUSION
From the above report it can be concluded that globalisation has become a great concern
of the people on development and regarding developmental policies in the government. It has
been observed that globalisation has become an important part in the modern world. With the
globalisation it has helped the companies to access and understand about different cultures and
also enable to deliver the products and services accordingly in the market in which the company
operates its business. With the helps of technological advancements the company can make
various innovation sin its products and services. The report summarize the various concepts of
globalisation, world economy , market integration , capitalism and consumerism. In addition to
this the report also reflects on the global trend that the technology evolution and its impact in
increasing social and financial inequality . It has been observed that technological
advancements had negative impact and also suggested the ways to reduce the income inequality.
Lastly, the study covers the discussion on the selected company i.e. Lush cosmetics which deals
in handmade products such as lotion , soaps , shampoos etc. The company sues various
marketing strategies to promote its products through social media and other means . Apart form
this the company also faced various challenges which affected their operations and is required to
follow the respective provisions that is associated with the health and safety of the workers.

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