Globalisation Assignment Sample (Doc)

Globalisation

Table of Contents
TASK 2............................................................................................................................................3
Chapter 1 Introduction................................................................................................................3
Chapter 2 Literature review .......................................................................................................4
Chapter 3 Methodology ..............................................................................................................5
Chapter 4 Results.......................................................................................................................9
Chapter 5 Conclusion and recommendations...........................................................................17
Chapter 6. Reflection................................................................................................................18
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20
REFERENCES..............................................................................................................................21

TASK 2
Chapter 1 Introduction
Background of the study
Globalisation can be defined as tendency of companies to expand their business at
international level. It can also be referred to as procedure of increasing integration of markets
worldwide. Globalisation has significant effect on the way different activities are performed by
firm. It is the factor which has significant influence on marketing activities of an enterprise. By
expanding global scale, an enterprise can gain various benefits, But at the same time there are
different types of risks is associated with expansion of business at global scale. Increase in profit
margin 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 business
growth (Taylor, Bogdan and DeVault, 2015.). But there is high chances of business failure as
well 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. It
is required by management in firm to conduct through market analysis before expansion of
business in other country, as this tactic will help management in addressing those factors which
might create hindrance in launch of new product in the global market.
Nature of problem
The problem is qualitative in nature. The issue is related to the risks which is faced by
organization while entering into UK market. Other issue which is faced by management in an
enterprise is related to selection of suitable ways for entering into UK market. The small medium
enterprise is searching for different strategies which can be applied for reducing the chances of
risks in international market.
Importance of the study
Present investigation has great importance as it will help an enterprise in identification of
suitable ways for entering into global market. In addition to this, current research has great
significance as it will help management of Stevia in determining whether decision related to
launch Stevia as a healthy product which can replace the sugar in the cakes, into the UK market
is 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 replace
the sugar in the cakes, into the UK market. Result drawn from investigation will assist
management in making suitable decision related to introduction of particular product in new
market.
Rationale foe selecting specific topic.
One of the important reason because of which investigator has selected specific topic for
investigation is that researcher has interest in particular field. Other reason is continuous launch
of new product in international market by retail organizations. It is the factor which has
positively influenced researcher to identify the benefit which is gained by organization by
introducing their goods into new market. In addition to this, by performing the investigation on
specific topic investigator intend to address the motive of launching of new product by firm in
international market especially UK. Due to academic purpose researcher wants to develop the
understanding about the risk related to launch of product in UK market.
Aim and objective of study
Aim : To assess the risk as well as benefit for organization based in USA associated with
promotion 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 markets
 To develop the understanding about reason of Stevia expanding business in UK market.
 To suggest the techniques using which Stevia can reducer the risks associated with
entering into UK market.
 To provide recommendations to “Steviva Brand, Inc” Company based on analysis
Chapter 2 Literature review

Methods for Business Organization to Enter Into UK Markets
Globalization is one of the best way to expand the business of organization to gain
increased marginal profit and growth in market. In process of globalization different ways are
used by various companies. Selection process of a particular method is based on what kind of
business company is performing. This is important for the organization to select right method
cause performance of business and growth of company is depended on selection of particular
method. As per view of Najam, Runnalls and Halle, (2016) company can use different methods
to enter a new market. Each type of method have advantages and limitations. These advantages
and limitation lead the future of business in new market place. Most time companies use
licensing, franchising, partnership, direct exporting, joint venture and buying a company. It is
also depended on the size and product of organization. For selection of right method for global
expansion company use different research work to find the best suitable way to move on
international level with no added loss. In the process of direct exporting company prefers to
export their product in international market to earn profit. This method is good for the
organization that are in business of products for one time use because company will not be able
to provide them with after sells service.
According to Hitt, Ireland and Hoskisson, (2016) Licensing is also a good way to expand
the business and in this process company provide rights to other local company to perform
business on behalf of them. Franchising method is used by moistly restaurant chains but not by
core product manufacturers. Partnership is also considered as one of the best way to perform in
new market with high efficiency because the local partner are aware of local market and
customers. In joint venture company perform the business by forming a third company to
perform respective business. For he larger companies who do not want to spend too much on
infrastructure in at new place use this method to take over another company to conduct business
activities. For all different method the strategy is decided by the company to full fill terms,
condition and requirement of collaboration.
Risks of Entering New Market
In business expansion there are various types of risks that are faced by the organization to
conduct business practices. AS per the view of Hirst, Thompson and Bromley, (2015) most risks
faced by the business organization are not related to finance and processed of company but the
factors 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 current
standards of company according to new location. Legal and political factors and policies are
different in other countries this can affect the business management of organization. This is most
difficult for organization to face new competitors in new market and plan strategy according to
condition and market share of competitors. High competition can lead to business and financial
failure. Company also need to spend high capital to gain market share in target market. In
international market organization is highly dependent on relations between nations and their
foreign policies. A small change in the foreign policy can cause large damage to the
organization. These are some risks that are faced by the organization in process of globalization.
Reason of globalization for business organization
Baylis, Smith and Owens, (2017) has analysed that globalization can help different
organization to improve their business profits. These advantages of globalization attract various
companies to expand business of company in international market. These drivers of globalization
are larger option to get talent, improve communication access process of company, reduce the
issues related to tax issues, help in growth of company, reduce currency manipulation problems
and encourage the companied to free trade. When an organization go for globalization they get
better chances to select highly skilled and qualified employees from different areas. For different
operations company requires labour with different skills. These skills are essential for
organization to meet company targets. On global platform organization get large number of
option in selection of skilled and this selection choice help the particular company to gather
skilled workers for organizational tasks.
AS per the view of Hirst, Thompson and Bromley, (2015) Normally companies face different
troubles in communication while they are conducting business outside the nation. Globalization
allows them to get aware of new language to communicate with other people and organization in
order to improve the productivity and performance of organization in international market
conditions. When a company conducts international level business they need to pay different
taxes to both countries. If company open ups a branch of company in other country then it will
save 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 profit
from the operation of company. By working in different areas company gains high experience to