Benefits and Drawbacks of Globalisation: Marks & Spencer Case Study

This report analyzes the impact of globalisation on the business environment, using Marks and Spencer as a case study. It begins with an introduction to globalisation, its increasing economic interdependence, and the role of ICT. The research aims to identify the benefits and drawbacks of globalis...Read More

Research Project

TITLE: “ To analyse the benefits and drawbacks of globalisation on business
environment”. A case study on Marks and Spencer.
CHAPTER 1: Introduction
Overview of research
Globalisation is referred as procedures where economies is increasing and is
interdependent and integrated with each other. In an economic process, national and local market
are connected together to provide services to people (Adekola and Sergi, 2016). The increase in
globalisation leads to rise in operations and activities of business. In order to run concern at
competitive market, it is essential to analyse globalisation for success and growth. The ICT
(Information and Communication Technology) has increased which happened due to increase in
globalisation at marketplace. The globalisation provides both positive and negative impact for
running activities and operation of business. All the enterprise run in market in order to earn
profits and gains. For gaining competitive advantage and economies of scale, globalisation plays
an effective role at market place. It is very significant for business to consider globalisation in
order to get sustainability, profitability and growth. For achievement of goals and objectives in
competitive market, organisation has to consider all factors of globalisation in an effective and
efficient manner.
Background of research
The chosen company for research project is Marks and Spencer which is considered as
British multinational retail organisation. This was incorporated in 1884 by Thomas Spencer and
Michael Marks headquarter at Westminster, London, United Kingdom. This is specialised in
merchandising high quality home, clothing and luxury products. There are 959 stores out of
which 615 are in UK selling only food products to their consumers. It is operating in 1463
number of locations at different places to serve their users in effectual manner. As per data of
2018, more than 80,787 people are working in respective enterprise. This is running business at
large level which consists of operations at different parts of world that impact globalisation in
positive and negative terms. It is very important for respective organisation to alter their
marketing and technology methods in order to provide goods and services to consumers. The
globalisation leads to rise in cost to enterprise that impact negatively. Also respective
organisation can easily connect with firms and people into single market for doing business. This

also assist in exporting and importing products and services for customers. Globalisation helps
Marks and Spencer for earning high profits, gains and benefits. Therefore, for knowing more
about globalisation, researcher has conduct research in effective and efficient manner.
Significance of study
The main purpose of research work is analysing benefits and drawbacks of globalisation
on environment of business. The economic process plays effective role in achievement of goals
and objectives of respective organisation. The study helps researcher to know more about
positive and negative impact of globalisation on business environment at global phase.
Therefore, with this research, they can make better decision for their business.
Research Aim
Aim: “ To analyse the benefits and drawbacks of globalisation on business environment”.
A case study on Marks and Spencer.
Research Objectives
 To study about the concept of globalisation
 To analyse positive impact of globalisation on business environment
 To determine drawbacks of globalisation which can impact on business activities
Research Questions
 What is globalisation?
 What are the positive impact of globalisation on business environment?
 What are drawbacks of globalisation which can impact on business activities?
CHAPTER 2: Literature Review
Concept of Globalisation
As per opinion of John Williamson, 2019 Globalisation is a term that define that whole of
the world is behaving as a part of single market with independent production and further
business activities (Globalization: The Concept, Causes, and Consequences, 2019). On the other,
globalisation assist in improving living standard of poor and less developed people by giving
them with modernisation along with creating employment opportunities and improving
transportation system for supplying of products and services. Therefore, globalisation has
benefited large business and people of people from different parts of world can work together for

achievement of goal and objectives. It has helped in gaining competitive advantages by reducing
operating cost and buying raw materials at cheap rate for consumers.
Globalisation is defined as integration of market at global economy for increasing
interconnectedness of national boundaries. The globalisation include different markets such as
capital, insurance, commodity, money and so on (Globalisation Online, 2019). There are several
reasons which leads to rise in globalisation such as introduction of new electronic payments
systems like e-wallets, mobile pay and so on. The development in financial products leads to
enable global credit market for growing rapidly at marketplace. Internet has connected people
24*7 in order to provide information and data to people. Marks and Spencer is benefited from
globalisation in terms of comparative advantages, economies of scale, cost competitive, inward
investment, creation of employment opportunities for people. It is very important for respective
organisation to use globalisation for better outcomes in an effective and efficient manner. On the
other hand, there are some disadvantages of globalisation in terms of barriers to entry,
diseconomies of scale, unfair trade and practices, structural unemployment and so on. Therefore,
this is the concept of globalisation in current market.
Positive impact of globalisation on business environment
According to opinion of Hitesh Bhasin, 2019 Positive impact of globalisation has been
experienced by different societal segments. Privatization industry owned maximum benefits by
the globalisation practices as business expansion, increasing consumer base and so on (What is
globalization? What are the positives and negatives of Globalization? 2019). The first discussion
is about globalisation in western economy where it assists respective organisation in raising
capital, innovation, research and development. It leads new business to compete with old
business and increase exports and imports. The next is globalisation which has raised household
income in terms of various aspects such as reduction of inflation rates, rises real wages through
lowering cost of consumption and making common to buy products which could be affordable
by few. Last positive impact of globalisation is on creating new opportunity for people and
raising economies of scale. The globalisation leads to increase new technology and assisting in
making economies productive and greener. This has assist in reducing gender wages
discrimination and providing them with new opportunities. It has improved working condition of
individuals at business and quality management for firms. It also assist in carrying business
activities and operations at global market without any problems. The economic process leads to

rise in competition where global investors can easily enter into other market in order to run their
business. Therefore, this helps Marks and Spencer to achieve economies of scale through huge
production and enhancement of gains, profits and growth. Here, it is opportunity for small and
micro enterprise to do merger and joint ventures with big firms in order to gain maximum profits
that is achievable only through globalisation.
Drawbacks of globalisation which impact on business activities
According to views of Hitesh Bhasin, 2019 Globalisation can also be a negative aspect
for a business organisation as it enforces fluctuation in prices, job insecurity and further aspects
in context of different aspects (What is globalization? What are the positives and negatives of
Globalization? 2019). These disadvantages has impacted Marks and Spencer activities and
operations that are mentioned here:
Inequality- The globalisation has made rich people more richer and non-rich poorer. This
leads to inequalities in terms of income and wealth of people. Also there are many small
organisation which cannot afford for using of high technology to run their business which leads
for inequality. Globalisation provide benefits for investors, managers, owners but provide
problem for workers and nature of work.
Trade Imbalances- With rise in globalisation, there is increase in business and trade but
leads to trade imbalances that impact activities and operations. As globalisation makes free trade
where barriers are eliminated but still they exist barriers that impact business. There are 161
countries which has valued added taxes on importing of goods and services which is high in
Europe that is 21.6% whereas US does not have any VAT. Here, less developed countries has to
face issues in adopting new technology for business. Therefore, countries with trade surplus
increase profit and gain from than others.
Unemployment- The rise in globalisation leads in creating problem for unemployment in
country. In this case, business always prefer those countries and places where they can easily get
employee or labour at low cost and achieve economies of scale (Globalisation - Benefits and
Drawbacks, 2018). In this condition, business provide employment to those people who are
ready to work at low cost. Therefore, this leads skilled and experience people to loss their job
that impact economic growth of country. Marks and Spencer is also impacted through rise in
globalisation in negative manner for achievement of goals and objectives.

Ethical Business Practices- The rise in globalisation creates problems and challenges for
business to face ethical practices in terms of regulatory compliance, laws, regulation, product
safety, corruption and many more. Therefore, it is essential for Marks and Spencer for using
ethical business practices in order to operate and expand business in other places. In case of
unfollowing ethical practices leads failure of business at competitive market and vice-versa.
Threats to Global Commons- Globalisation damages land degradation, loss of bio
diversity, deforestation, shortage of water afflict and other which creates problems for natural
human beings and business to run their activities and operations at global market.
Therefore, all these drawbacks impact on business activities and operations for
accomplishment of goal and objectives in effective and efficient manner.
CHAPTER 3: Research Methodology
Types of research
These are various tools and techniques to collect data and information for given research
work. It is very important for researcher to use those methods and tools which provide uncovered
information in order to understand given topic. Here, research methodology means processes,
strategies and techniques that are used for collecting data and information. These types of
methodology are used in order to conduct archival research, survey and observational research.
This assist in answering all those questions which has to be investigated. The various types of
research methodology are qualitative, quantitative, primary and secondary research for analysing
and gathering data and information. They are described below:
Qualitative research
It is primary exploratory research which is used for gaining and understanding of
underlying opinions, reasons and motivations. This helps in providing insight into issues or
problems in order to develop hypothesis or ideas. It assist in providing opinion and thoughts and
in depth knowledge about particular topic. Such methodologies are acceptable since they provide
in-depth understanding of subject matter when factual data are needed. Furthermore, this sort of
research is much more linked with human activities and how to respond. (Child and Marinova,
2014). This not only reacts to ' what ' but also to ' why ' throughout research As just a
consequence, more detailed information could be generated and conclusions are drawn
conveniently on the based on facts and logic. Techniques for qualitative research gather data

from wide observations, in-depth inquiries, papers, etc. This study is helpful in data exploration
and interpretation and helps allow researchers to develop an understanding about complex
concepts.
Quantitative research
This research approach is characterized by the collection of quantifiable figure and data
as systematic evaluation of anomalies. Some approaches prioritize objective measures and
review of data, arithmetic and numerics. Data obtained in such a sort of research are gathered by
means of interviews, questionnaires, polls and especially pre existing statistical figures and data
(Ghobakhloo and Hong Tang, 2013). The outcomes of this poll were focused on the bigger
sample representing the whole population. Designs for quantitative research can be either
informative or foetid. Variables are correlated with the descriptive analysis, while the
observational study determines causal relationships. These research methodology allow wider
analysis by incorporating more subject matter and improving results generalisation.
Throughout this research, different qualitative research techniques have been used for
data collection activities since a large amount of data could be obtained potentially via this
researcher. This will also interpret information from various sources in order to develop best
possible outcomes.
Primary research
Scientific method applied by researcher to gather the data explicitly, instead of relying on
an already accessible information from other sources. The Primary data collection methods
include surveys, polls, questionnaire forms, focus groups, analysis, etc. Researcher collects data
explicitly in this methodology and is also the holder of data which gathered. This assists with the
collection of data that is needed to meet distinct and unique needs. Two fundamental types of
basic research are descriptive and exploratory. Exploratory work is mainly open ended and is
therefore not directed at specific outcomes or data. Predetermined work, however, is quite
focused and then used to resolve issues.
Secondary research
If research is carried out by utilizing information already assembled, collected, arranged
and previously released, this analysis is classified as secondary research. (Hoffmann and Kumar,
2013). This covers federal agency studies and surveys, commercial publications, online
publications, journals, and links to libraries. The information that this work gathers are not

accurate, and it might or might not be as necessary. Research performance thus depends to a
higher degree on reliability of data collected. This research is fast process and data that has
already been thoroughly tested. As several data are already accessible, use of secondary data or
figures is cheap.
Researchers opt with primary data collecting approach for this study since they can
effectively evaluate individual opinions and perspectives based on their personal experiences.
Primary method could be more accurate with regard to secondary since fresh details on particular
topics is provided at the front of the researcher. Secondary sources of information have been
used in the Literature review section in which data and information has been collected by
analysing views and opinions of author.
Research Philosophy
There have been two kinds of research philosophy eg interpretivism and positivism,
which are applied by different researcher to produce consistent results or tests. Research
philosophy of positivism doesn't give a credible study conclusion. Furthermore, philoophy of
interpretivism is applied to better conclude the study function. Scientists have thus used the
theory of interpretation because it offers clear and relevant proof of the research work or task
subject in consideration.
Research Approach
There are different methods accessible for performing a research such as inductive or
deductive, from which an individual can more effectively address specific concerns. Here, for
understanding a subject matter, inductive research is extremely concerned with generating new
principle or concept. Although deductive methodology is aimed at evaluating past theories to
answer current research goals. Hence, deductive method primarily continues with a hypothesis
whereby inductive approach continues with description of research context. Researchers have
therefore followed the principle of inductive approach throughout this research to derive valid
conclusions on specify concerns in present study.
Research Strategy
This is major research segment which involves interviews, conducting surveys, research
papers. To capture valuable information and facts, all of these are applied for research purposes.
From point of view of researcher, interviewing is considered to be the most appropriate research

technique that allows to gather random sample data. Researchers may use questionnaire methods
throughout this research to successfully execute by specific information. This method will also
be organized between huge populations where the participant will be tested spontaneously. For
this study, there will also be 30 respondents who could help in giving specific subject
knowledge.
Work Breakdown Structure
Work Breakdown Structure is defined as structure in which different works and activities
are divided into hierarchical form. In order to execute WBS, team members helped each other for
accomplishment of work. This is called method which segregate large and complex work into
smaller and tiny parts and divisions that helps to deal with those problems of given project work.
The researcher use such method in order to achieve goal and objectives of work very easily. It
provide framework for guidance, anticipating cost estimation and helps from others to control
and develop given project work. It is used by engineer, project manager while doing research or
project work assigned to them in proper manner.
Gantt Chart
This is referred as bar charts which elaborate project schedule. It is the tool which was
developed by Henry L Gantt in 1917. Gantt chart is graphical illustration which helps in

coordinating, planning and tracking particular tasks of given project. It helps in viewing
relationship and dependency between work status and current activities. There are two axis such
as vertical which means number of work that should be performed and horizontal that represents
time interval. When activities are planned in proper sequence then Gantt chart is used for
completing within stipulated time period. This was mainly formed for completion of task within
given time period. Here, Marks and Spencer has made Gantt Chart to complete aim and
objectives of project work in given time period.

Sampling
It is defined as process which is used in analysing statistical in which no. of selected
observations are chosen through large population (Falola, Osibanjo and Ojo, 2014). There are
two kinds of samplings e.g. random and systematic. Here, random sampling is taken for the
purpose of collecting data in an effectively and efficient ways.
Sample Size
It relates to way of choosing no. of respondents for including in statistical sample
(Hashemi, Karimi and Tavana, 2015). The sample size taken for collecting data and information
for research purpose is 30.
Questionnaire
It is crucial research instrument that contain series of different questions with aims to
collecting data from participants. The questionnaire is as described below:
Questionnaire
Participants Name:
Age(years):
Phone/Contact Number:
Sex/Gender:
Q1. Are you aware of the concept of globalisation?
a. Yes
b. No
Q2. What are the ways through which awareness of globalisation can be done?
a. Social media
b. Use of internet

c. Published article
d. All of the above
Q3. What are crucial impacts of globalisation on dynamic business environment of Marks
and Spencer?
a. Positive impact
b. Negative impact
c. Both of them
Q4. What are positive impacts of globalisation on Marks and Spencer?
a. Increase in profits availability
b. Rise in customer base
c. Employment opportunities
d. All of the above
Q5. What are the negative impact of globalisation on Marks and Spencer?
a. Increase in market competition
b. Culture difference
c. Rise in expenses
d. All of the above
Q6. Do you think Marks and Spencer has to face challenges while expanding their
business in global market?
a. Yes
b. No
c. Can't say
Q7. What are the manners by which Marks and Spencer can make expansion in their
business activities in different countries?
a. Joint Venture
b. Franchising
c. Strategic Alliance
d. All of the above
Q8. Does Marks and Spencer requires to alter their strategies and policies for the
successful expansion of their business?
a. Yes

b. No
Q9. How does business expansion helps an organisation to attain desire success?
Q10. Any recommendation would you like to provide for improvement.........
CHAPTER 4: Data Finding, Analysis and Discussion
Theme 1: Aware of the concept of globalisation
Q1. Are you aware of the concept of globalisation? Frequency
a. Yes 24
b. No 6
Interpretation
Globalisation term is also recognised as economic process which relates to specific
procedure and set of activities of integrating and interacting different companies, authorities of
government and people at international level. From above displayed diagram, it could be said
that mostly people were aware about concept of globalisation. The number of people who were
already aware about globalisation were 24 out of 30 and remaining 6 were not having any
awareness about such concept. They were provide help to make aware about concept which is
essential for them to know current market scenario.
Theme 2: Ways through which awareness of globalisation can be done
Q2. What are the ways through which awareness of globalisation can be done? Frequency
a. Social media 10
b. Use of internet 8
c. Published article 5
d. All of the above 7
24
6
a. Yes
b. No

Interpretation
It is very crucial for organisation to develop awareness related to globalisation in
different people. There are various ways through which awareness can be done such as social
media, use of internet, published article. From the presented picture, it can be concluded that out
of 30 respondents, 10 prefer social media, 8 said use of internet, 5 favours for published article
and remaining 7 favours all of the above methods. There are large number of people who uses
social media for keeping themselves update about current affairs. So therefore, social media is
mostly used for creation of awareness.
Theme 3: Impacts of globalisation on business environment
Q3. What are the key impacts of globalisation on business environment of
Marks and Spencer?
Frequency
a. Positive impact 15
b. Negative impact 10
c. Both of them 5
Interpretation
Globalisation has impacted on business environment of respective organisation. The
impact can be positive as well as negative. The displayed diagram presnets that out of 30
selected participants 15 said it create positive impact, 10 favours for negative impact and
remaining 5 favours for both of them. As more number of respondents favour for positive impact
15
10
5
a. Positive
impact
b. Negative
impact
c. Both of them

which helps in achievement of targets and aim in efficient manner. Therefore, globalisation is
very essential for business concern to sustain growth and success at competitive market.
Theme 4: Positive impacts of globalisation on Marks and Spencer
Q4. What are positive impacts of globalisation on Marks and Spencer? Frequency
a. Increase in profits availability 8
b. Rise in customer base 7
c. Employment opportunities 10
d. All of the above 5
Interpretation
The globalisation is very essential for business in current scenario as it provide various
positive impacts in terms of increase in profits availability, rise in customer base and job
opportunities. As per presented diagram, it has been articulated that out of 30 selected
respondents 8 said it helps in increase profits availability, 7 favours for rise in customer base, 10
said for employment opportunities and remaining 5 favours for all of the above elements. In case
of positive impact, it provide more employment opportunities for their people.
Theme 5: Negative impact of globalisation on Marks and Spencer
Q5. What are the negative impact of globalisation on Marks and Spencer? Frequency
a. Increase in market competition 6
0
4
8
12 8 7
10
5
Column B

b. Culture difference 12
c. Rise in expenses 8
d. All of the above 4
Interpretation
There are various negative impacts of Marks and Spencer's globalisation in terms of
increase in market competition, culture difference and rise in expenses. From presented diagram,
it has been founded that from selected 30 respondents 6 said it has impacted in increasing market
competition, 12 said culture difference, 8 favours for rise in expenses and remaining 4 said all of
them has impact in negative way to respective organisation. Here, more number of participants
said, culture difference is the main negative impact of globalisation to business.
Theme 6: Challenges while expanding their business in global market
Q6. Do you think Marks and Spencer has to face challenges while expanding
their business in global market?
Frequency
a. Yes 15
b. No 10
c. Can't say 5
0
4
8
12 6
12
8
4
Column B

Interpretation
When any organisation expand their business in global market then it has to face
challenges. From the above diagram, it has been summarised that out of 30 respondents 15 said
they face challenges, 10 did not favour same and remaining 5 are not clear about their
perspective. There are various sorts of challenges which has to be handled by Marks and Spencer
while expanding business at other place. All of them should be evaluated properly so that better
results can be achieved.
Theme 7: Ways through which Marks and Spencer can expand their business activities in
different countries
Q7. What are the ways through which Marks and Spencer can expand their
business activities in different countries?
Frequency
a. Joint Venture 8
b. Franchising 5
c. Strategic Alliance 6
d. All of the above 11
15
10
5
a. Yes
b. No
c. Can't say

Interpretation
Business expansion is very essential for organisation to enhance profits and gains
efficiently. There are miscellaneous ways which Marks and Spencer can use to easily expand
their business activities in different countries which includes joint venture, franchising, strategic
alliance. The diagram presented indicates that out of selected 30 respondents only 8 prefer for
joint venture, 5 favours for franchising, 6 prefer strategic alliance and remaining 11 said all of
the above ways are important for business expansion. The easiest method is joint venture where
two organisation combine together for achievement of goal and objectives.
Theme 8: Marks and Spencer requires to alter their strategies and policies for the successful
expansion of their business
Q8. Does Marks and Spencer requires to alter their strategies and policies for
the successful expansion of their business?
Frequency
a. Yes 19
b. No 11
a. Joint Venture
b. Franchising
c. Strategic Alliance
d. All of the above
0
2
4
6
8
10
12
8
5 6
11
Column B
19
11
a. Yes
b. No

Interpretation
For making expansion in business successfully at globally market, it is key task for
Marks and Spencer to alter their strategies and policies in proper manner so that best outcomes
can be achieved. From the mentioned pie chart, it has been concluded that out of 30 respondents
19 said they require to alter their strategies and policies in proper manner and remaining that is
11 said, it is not essential to alter plans and policies. In real world, changes has to be made by
organisation to achieve desired goal and objectives.
Theme 9: How does business expansion helps an organisation to attain desire success?
Interpretation
While expanding business, firms often try to bring something unique within their product
list as per the market of country in which they are about to render their services. This service will
provide them with an opportunity to captivate a huge market share via attracting more number of
customers towards them. Along with this, management of organisation ensures that they have
the latest equipments through which services can be delivered quickly and accordingly they have
the appropriate skill set which makes them liable for rendering their services on time & high
quality. Along with this, they have studied the market before entering within the market and
formulated their strategies as well as policies accordingly. This will make them more competitive
within the market & attain the success as well as profitability as per their expectations.
Theme 12: Any recommendation would you like to provide for improvement
Interpretation
It has been suggested that, firms have the wide options for expanding themselves within
different countries but it doesn't implies that they should move to any country without looking
for their economy. If any specified nation do not have impelling economy then it will not lead
firm to attain the success rather it will lead them to the failure. Therefore, it is necessary that firm
must analyse each and every aspect about the country before planning to go their. This will lead
them to have impelling profit but they also need to take into consideration environmental policies
so that knowingly or unknowingly they do not create a negative impact on it. Improvisation
can be made with respect to ways in which data is being collected and and analysed.

CHAPTER 5: Conclusion, Recommendations and Anticipated Limitations
Reflection
Research is wide aspect that assist in defining a topic properly by identifying each and
every aspect of information and sources. By conducting this research, I gain my knowledge by
analysing different sources of information. Major issue that arise in front of me while conducting
this research is related to availability of funds, response of individual and adequacy of different
resources. In order to analysing maximum information, I conduct primary research in which
questionnaire method of data collection assist me in analysing views of individual. Major aspect
of this research has been identified through secondary source of information. These kind of
practices assist in gathering information by analysing historical views. Major benefit of this
research is that it enhances my knowledge in regard global business practices.
Recommendation
Considering above information, it has been recommended that globalisation creates a
huge impact on organisation both in affirmative & pessimistic manner (in case if there activities
do not goes right). It is suggested that to have impelling benefits from globalisation firm can
further opt for expanding themselves in different countries to enhance their profitability.
Furthermore, to eliminate the drawbacks associated with expansion they also need to take into
consideration environment for this they need to make sure that plastic is not utilised within
packaging of their services as it is not decomposable and will create negative impact.
In addition to this, given firm need to modify their existent policies & strategies by which
they can meet the needs of new market. They must make use of latest techniques & equipments
so that the services can be produced in an effective manner. Therefore, expansion along with
organic resources and upgraded devices will lead them to have increased benefits.
Limitation
The major drawback was lack of effective resources from which data can be collected as
through questionnaire, sometimes people are not willing to give accurate answer which hamper
the quality of research. This also leads to mis-management of time as data cannot be gathered as
per the formulated strategies. Furthermore, when objective questionnaire is being used then also
respondents do not have the option for giving their opinions exactly but still they have the option
at last to give recommendations, if they like to make some.

Conclusion
From above, it has been concluded that globalisation refers to the process associated with
integration along with interaction in between firms, people and government worldwide. This
provides the firms with both affirmative & pessimistic impact on the ways in which operations
are being delivered by them. Along with this, firm as well as country in which services are being
provided can have enhancement within their economies. This leads the firms to have free trade,
enhanced movement of labour, amplified capital flows, growth within multi-national firms,
improvised integration with respect to global trade cycle and various others. There are certain
drawbacks associated with this, free trade might lead to harm the developing economies and
labour drain. Furthermore, the impact that is created on environment is not effective as there has
been enhanced utilisation of non-renewable resources. This leads to global warming as well as
enhanced pollution. But if the firms ensure that services are being delivered in an appropriate
manner then these drawbacks can be eliminated. Like through the utilisation of latest
technologies & equipments they can deliver the services with high preciseness as well as no
negative impact will be created on the way services are furnished.