Introduction to Globalisation

Added on - 17 Feb 2021

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Globalisation
Table of ContentsTASK 2............................................................................................................................................3Chapter 1 Introduction................................................................................................................3Chapter 2 Literature review.......................................................................................................4Chapter 3 Methodology..............................................................................................................5Chapter 4 Results.......................................................................................................................9Chapter 5 Conclusion and recommendations...........................................................................17Chapter 6. Reflection................................................................................................................18CONCLUSION..............................................................................................................................19REFERENCES..............................................................................................................................20REFERENCES..............................................................................................................................21
TASK 2Chapter 1 IntroductionBackground of the studyGlobalisation can be defined as tendency of companies to expand their business atinternational level. It can also be referred to as procedure of increasing integration of marketsworldwide. Globalisation has significant effect on the way different activities are performed byfirm. It is the factor which has significant influence on marketing activities of an enterprise. Byexpanding global scale, an enterprise can gain various benefits, But at the same time there aredifferent types of risks is associated with expansion of business at global scale. Increase in profitmargin and revenue is the main benefit that an enterprise can gain through internalization.Globalization also provides firm an opportunity to increase its market share and foster businessgrowth (Taylor, Bogdan and DeVault, 2015.). But there is high chances of business failure aswell as decline in sales of specific product which is associated with globalization of business.But an enterprise can achieve success planning if it expands business through proper planning. Itis required by management in firm to conduct through market analysis before expansion ofbusiness in other country, as this tactic will help management in addressing those factors whichmight create hindrance in launch of new product in the global market.Nature of problemThe problem is qualitative in nature. The issue is related to the risks which is faced byorganization while entering into UK market. Other issue which is faced by management in anenterprise is related to selection of suitable ways for entering into UK market. The small mediumenterprise is searching for different strategies which can be applied for reducing the chances ofrisks in international market.Importance of the studyPresent investigation has great importance as it will help an enterprise in identification ofsuitable ways for entering into global market. In addition to this, current research has greatsignificance as it will help management of Stevia in determining whether decision related tolaunchStevia as a healthy product which can replace the sugar in the cakes, into the UK marketis effective or not. The information collected through investigation will support manager in
addressing the risk as well as benefit of launching Stevia as a healthy product which can replacethe sugar in the cakes, into the UK market. Result drawn from investigation will assistmanagement in making suitable decision related to introduction of particular product in newmarket.Rationale foe selecting specific topic.One of the important reason because of which investigator has selected specific topic forinvestigation is that researcher has interest in particular field. Other reason is continuous launchof new product in international market by retail organizations. It is the factor which haspositively influenced researcher to identify the benefit which is gained by organization byintroducing their goods into new market. In addition to this, by performing the investigation onspecific topic investigator intend to address the motive of launching of new product by firm ininternational market especially UK. Due to academic purpose researcher wants to develop theunderstanding about the risk related to launch of product in UK market.Aim and objective of studyAim: To assess the risk as well as benefit for organization based in USA associated withpromotion of Stevia as healthy product in UK market.Objectives :To evaluate ways through which an enterprise can enter into market in UK.To explore the business risks involved in entering into UK market.To analyse the benefits of a business entering UK marketsTo develop the understanding about reason of Stevia expanding business in UK market.To suggest the techniques using which Stevia can reducer the risks associated withentering into UK market.To provide recommendations to “Steviva Brand, Inc” Company based on analysisChapter 2 Literature review
Methods for Business Organization to Enter Into UK MarketsGlobalization is one of the best way to expand the business of organization to gainincreased marginal profit and growth in market. In process of globalization different ways areused by various companies. Selection process of a particular method is based on what kind ofbusiness company is performing. This is important for the organization to select right methodcause performance of business and growth of company is depended on selection of particularmethod. As per view ofNajam, Runnalls and Halle, (2016)company can use different methodsto enter a new market. Each type of method have advantages and limitations. These advantagesand limitation lead the future of business in new market place. Most time companies uselicensing, franchising, partnership, direct exporting, joint venture and buying a company. It isalso depended on the size and product of organization. For selection of right method for globalexpansion company use different research work to find the best suitable way to move oninternational level with no added loss. In the process of direct exporting company prefers toexport their product in international market to earn profit. This method is good for theorganization that are in business of products for one time use because company will not be ableto provide them with after sells service.According toHitt, Ireland and Hoskisson, (2016)Licensing is also a good way to expandthe business and in this process company provide rights to other local company to performbusiness on behalf of them. Franchising method is used by moistly restaurant chains but not bycore product manufacturers. Partnership is also considered as one of the best way to perform innew market with high efficiency because the local partner are aware of local market andcustomers. In joint venture company perform the business by forming a third company toperform respective business. For he larger companies who do not want to spend too much oninfrastructure in at new place use this method to take over another company to conduct businessactivities. For all different method the strategy is decided by the company to full fill terms,condition and requirement of collaboration.Risks of Entering New MarketIn business expansion there are various types of risks that are faced by the organization toconduct business practices. AS per the view ofHirst, Thompson and Bromley, (2015)most risksfaced by the business organization are not related to finance and processed of company but thefactors that affect the business are related to new market and competition, local economy,
different standards, employees, language and communication gap, uncontrolled money flow.Main issue faced by the organization are related to the communication and to change the currentstandards of company according to new location. Legal and political factors and policies aredifferent in other countries this can affect the business management of organization. This is mostdifficult for organization to face new competitors in new market and plan strategy according tocondition and market share of competitors. High competition can lead to business and financialfailure. Company also need to spend high capital to gain market share in target market. Ininternational market organization is highly dependent on relations between nations and theirforeign policies. A small change in the foreign policy can cause large damage to theorganization. These are some risks that are faced by the organization in process of globalization.Reason of globalization for business organizationBaylis, Smith and Owens, (2017)has analysed that globalization can help differentorganization to improve their business profits. These advantages of globalization attract variouscompanies to expand business of company in international market. These drivers of globalizationare larger option to get talent, improve communication access process of company, reduce theissues related to tax issues, help in growth of company, reduce currency manipulation problemsand encourage the companied to free trade. When an organization go for globalization they getbetter chances to select highly skilled and qualified employees from different areas. For differentoperations company requires labour with different skills. These skills are essential fororganization to meet company targets. On global platform organization get large number ofoption in selection of skilled and this selection choice help the particular company to gatherskilled workers for organizational tasks.AS per the view ofHirst, Thompson and Bromley, (2015)Normally companies face differenttroubles in communication while they are conducting business outside the nation. Globalizationallows them to get aware of new language to communicate with other people and organization inorder to improve the productivity and performance of organization in international marketconditions. When a company conducts international level business they need to pay differenttaxes to both countries. If company open ups a branch of company in other country then it willsave a lot of cost for the company cause this will amount of tax they have to pay to two nations.Main purpose of internationalization is to improve growth of company and earn larger profitfrom the operation of company. By working in different areas company gains high experience to
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