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

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