(PDF) Globalisation on Business Environment | Assignment
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Added on 2020-12-30
(PDF) Globalisation on Business Environment | Assignment
Added on 2020-12-30
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Research Project
TITLE: “ To analyse the benefits and drawbacks of globalisation on businessenvironment”. A case study on Marks and Spencer.CHAPTER 1: IntroductionOverview of researchGlobalisation is referred as procedures where economies is increasing and isinterdependent and integrated with each other. In an economic process, national and local marketare connected together to provide services to people (Adekola and Sergi, 2016). The increase inglobalisation leads to rise in operations and activities of business. In order to run concern atcompetitive market, it is essential to analyse globalisation for success and growth. The ICT(Information and Communication Technology) has increased which happened due to increase inglobalisation at marketplace. The globalisation provides both positive and negative impact forrunning activities and operation of business. All the enterprise run in market in order to earnprofits and gains. For gaining competitive advantage and economies of scale, globalisation playsan effective role at market place. It is very significant for business to consider globalisation inorder to get sustainability, profitability and growth. For achievement of goals and objectives incompetitive market, organisation has to consider all factors of globalisation in an effective andefficient manner.Background of researchThe chosen company for research project is Marks and Spencer which is considered asBritish multinational retail organisation. This was incorporated in 1884 by Thomas Spencer andMichael Marks headquarter at Westminster, London, United Kingdom. This is specialised inmerchandising high quality home, clothing and luxury products. There are 959 stores out ofwhich 615 are in UK selling only food products to their consumers. It is operating in 1463number of locations at different places to serve their users in effectual manner. As per data of2018, more than 80,787 people are working in respective enterprise. This is running business atlarge level which consists of operations at different parts of world that impact globalisation inpositive and negative terms. It is very important for respective organisation to alter theirmarketing and technology methods in order to provide goods and services to consumers. Theglobalisation leads to rise in cost to enterprise that impact negatively. Also respectiveorganisation 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 helpsMarks and Spencer for earning high profits, gains and benefits. Therefore, for knowing moreabout globalisation, researcher has conduct research in effective and efficient manner.Significance of studyThe main purpose of research work is analysing benefits and drawbacks of globalisationon environment of business. The economic process plays effective role in achievement of goalsand objectives of respective organisation. The study helps researcher to know more aboutpositive and negative impact of globalisation on business environment at global phase.Therefore, with this research, they can make better decision for their business.Research AimAim: “ To analyse the benefits and drawbacks of globalisation on business environment”.A case study on Marks and Spencer.Research ObjectivesTo study about the concept of globalisationTo analyse positive impact of globalisation on business environmentTo determine drawbacks of globalisation which can impact on business activitiesResearch QuestionsWhat 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 ReviewConcept of GlobalisationAs per opinion of John Williamson, 2019 Globalisation is a term that define that whole ofthe world is behaving as a part of single market with independent production and furtherbusiness activities (Globalization: The Concept, Causes, and Consequences, 2019). On the other,globalisation assist in improving living standard of poor and less developed people by givingthem with modernisation along with creating employment opportunities and improvingtransportation system for supplying of products and services. Therefore, globalisation hasbenefited 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 reducingoperating cost and buying raw materials at cheap rate for consumers. Globalisation is defined as integration of market at global economy for increasinginterconnectedness of national boundaries. The globalisation include different markets such ascapital, insurance, commodity, money and so on (Globalisation Online, 2019). There are severalreasons which leads to rise in globalisation such as introduction of new electronic paymentssystems like e-wallets, mobile pay and so on. The development in financial products leads toenable global credit market for growing rapidly at marketplace. Internet has connected people24*7 in order to provide information and data to people. Marks and Spencer is benefited fromglobalisation in terms of comparative advantages, economies of scale, cost competitive, inwardinvestment, creation of employment opportunities for people. It is very important for respectiveorganisation to use globalisation for better outcomes in an effective and efficient manner. On theother 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 environmentAccording to opinion of Hitesh Bhasin, 2019 Positive impact of globalisation has beenexperienced by different societal segments. Privatization industry owned maximum benefits bythe globalisation practices as business expansion, increasing consumer base and so on (What isglobalization? What are the positives and negatives of Globalization? 2019).The first discussionis about globalisation in western economy where it assists respective organisation in raisingcapital, innovation, research and development. It leads new business to compete with oldbusiness and increase exports and imports. The next is globalisation which has raised householdincome in terms of various aspects such as reduction of inflation rates, rises real wages throughlowering cost of consumption and making common to buy products which could be affordableby few. Last positive impact of globalisation is on creating new opportunity for people andraising economies of scale. The globalisation leads to increase new technology and assisting inmaking economies productive and greener. This has assist in reducing gender wagesdiscrimination and providing them with new opportunities. It has improved working condition ofindividuals at business and quality management for firms. It also assist in carrying businessactivities 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 theirbusiness. Therefore, this helps Marks and Spencer to achieve economies of scale through hugeproduction and enhancement of gains, profits and growth. Here, it is opportunity for small andmicro enterprise to do merger and joint ventures with big firms in order to gain maximum profitsthat is achievable only through globalisation. Drawbacks of globalisation which impact on business activitiesAccording to views of Hitesh Bhasin, 2019 Globalisation can also be a negative aspectfor a business organisation as it enforces fluctuation in prices, job insecurity and further aspectsin context of different aspects (What is globalization? What are the positives and negatives ofGlobalization? 2019). These disadvantages has impacted Marks and Spencer activities andoperations that are mentioned here:Inequality- The globalisation has made rich people more richer and non-rich poorer. Thisleads to inequalities in terms of income and wealth of people. Also there are many smallorganisation which cannot afford for using of high technology to run their business which leadsfor inequality. Globalisation provide benefits for investors, managers, owners but provideproblem for workers and nature of work. Trade Imbalances- With rise in globalisation, there is increase in business and trade butleads to trade imbalances that impact activities and operations. As globalisation makes free tradewhere barriers are eliminated but still they exist barriers that impact business. There are 161countries which has valued added taxes on importing of goods and services which is high inEurope that is 21.6% whereas US does not have any VAT. Here, less developed countries has toface issues in adopting new technology for business. Therefore, countries with trade surplusincrease profit and gain from than others.Unemployment- The rise in globalisation leads in creating problem for unemployment incountry. In this case, business always prefer those countries and places where they can easily getemployee or labour at low cost and achieve economies of scale (Globalisation - Benefits andDrawbacks, 2018). In this condition, business provide employment to those people who areready to work at low cost. Therefore, this leads skilled and experience people to loss their jobthat impact economic growth of country. Marks and Spencer is also impacted through rise inglobalisation in negative manner for achievement of goals and objectives.
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