Globalization and its Impacts on Business: A Case Study of Wesfarmers

This report explores the multifaceted impact of globalization on modern businesses, using Wesfarmers, an Australian conglomerate, as a case study. It delves into the ways globalization influences company growth, performance, and managerial practices. The report examines the challenges, opportunities, and problems associated with outsourcing and offshoring, highlighting the complexities of managing international business operations. Through a comprehensive analysis of Wesfarmers' experiences, the report provides insights into the strategic considerations and practical implications of globalization for businesses operating in a globalized world.

Managing across borders
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Table of Contents
Executive Summary:.............................................................................................................................3
Introduction...........................................................................................................................................4
Main body: Topic 1: Globalization and its impacts on today’s business...............................................6
Conclusion...........................................................................................................................................13
References...........................................................................................................................................14
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Executive Summary:
This report is going to discuss the globalization and global market. Introduction body
contains the main areas covers in the report. Impact of globalization on the company is
mentioned in the below-discussed report. International managers dealing with the
globalization is discussed in this report. Outsourcing and offshoring of the Wesfarmers are
discussed. This report deals with globalization concept and its uses by the company
Wesfarmers. The main aim of this report is to understand the practices and impacts of an
international market. All factors that surround with the global market are discussed in this
report.
The main aim of this report is to conduct research on the globalization process and its impact
on the company and what role manager plays in the international market. Outsourcing and
offshoring different phenomenon is mentioned.
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Introduction
This is an era of globalization where everything surrounds with the global market and its
effects. Here in this report discussion is made over how globalization impacts business today.
Globalisation is the processes through which any start-up and business can be developed at
the international market and spread it is at large scale. Globalisation provides perks any
business types and any organization and its effects its performance and growth in various
ways. Its impacts on today's business culture are discussed in this report. International market
and its use become very common nowadays. Without this concept, a company cannot achieve
its growth and cannot think about expansion and enhancement. Well said, globalization deals
with every corner of the world (Cavusgil.et.al, 2014).
It’s not easy to do business at the global level. It demands various skills and ability to deal
with hard to the hard situation. Company frames its different group of human resources to
work with the global market. Every area has to be a concern and covered with proper
attention. Globalisation includes sailing out product, marketing of the product, and expansion
of business by having a number of offices in many countries of the world. In this report
impacts and dos of international managers to win the race of competition among the rivals is
mentioned. Using the case study of Wesfarmers, This report is analysis, researched and
discussed.
This report shows that globalization impact over the company and its practices implications
exhibiting the outsourcing and offshoring of the company. Using case study of
Wesfarmers, Australia discussion is made. This report presents various challenges, problems,
opportunities which are faced by the company while doing international business. By
studying the scenario and case study of this company, one can understand the use of
globalization in the business world. All factors that lead the globalization is discussed in this
report in the context of discussion areas (Henderson, 2017). The company adapts various
changes to deal with the global or international market. The global market is very broad and
vast topic to be discussed. Further, this report laid emphasis on globalization and its impacts
on the company growth and performance. Later, this report shows how international
managers deal with the globalization is discussed by mention their important steps in the
global market. Last but not the least by taking the example of Wesfarmers outsourcing and
offshoring challenges, problems and opportunities are discussed in this report. Hence
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globalization enables us to understand the international business scenario and its impacts on
any company which is using this concept.
About Wesfarmers
Wesfarmers is an Australian conglomerate that has the headquarters in Perth, Australia. The
company operates its major business operations in the field of retail, fertilizers, chemicals,
and other safety products. The company manages its business across various countries such
as New Zealand, United Kingdom, Ireland, Bangladesh and Australia.
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Main body: Topic 1: Globalization and its impacts on today’s business.
Every business whether it is at large scale or small scale demands globalization for its growth
and future development. Globalisation predicts company’s status and current lieu of the
company. Globalisation is the very broad concept it deals with many impacts and its
consequences. Among all top companies in the world, one thing is common that is its
globalization standard and development.
Globalisation is the most important terms in business today (Cavusgil.et.al, 2014). It provides
rapid development of the company lieu. In this advanced century where technology plays a
crucial role, it can be said that technology is incomplete without globalization pace. In this
current marketing scenario, every company demands globalization and its process to deal
with. It drove the concept of success of the company and meets all the objectives of the
company. Not only has this globalization affected the company growth and its development
in many ways these are as given below:-
 Globalisation provides both interaction and integration of the company and its
mandatory also if one needs to enhance the company ( Noyes, et.al, 2012).
 Every factor like social, economic, political is all influenced and affected by the
globalization process and its practices.
 Trade practices get enhanced and chances of getting wider get increased.
 More human resources, more skilled employees come in contact with the company.
 Providing company services and its applications all over the world exhibits its zeal to
work with the outside world.
 Many methods of outsourcing and offshoring are adopted to deal with the
international market.
 Using globalization predicts the company growth and demands of the consumers and
users (Beck, et.al, 2015).
Hence it can be said that globalization affects the company in many ways.
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Globalisation has become one of the major factors for success of the companies in the
international market. In order to gain the competitive advantage and to hold a superior
position in the market as compared to the competitors, companies adopt marketing strategies
that operate on a global platform. Globalisation helps the organisations to exchange
technology at the wider level that enhances the productivity as well as the performance of the
organisation. Effectiveness in the quality of products and efficiency in the managerial
operations can be attained through seeking opportunities from globalization.
Role of International managers and techniques used by them to win the race
Globalisation and international management is a synchronization process. Managers of the
company are using this concept and win the race of competition at the international market.
To have a franchise of the company across the world exhibits its globalization or international
scale of the company. International manager’s looks over the current demand of the users and
consumers and in this way they deal with the global market. Without knowing the protocols
of the international market one can never do the business at globalization level because it has
its some pros and cons which need to understand to some extent. Managers of the company
handle this type of business practices, in fact now a day’s companies hiring special resources
who have more knowledge and more skilled in this filed. They can easily handle and deals
with the international practices (Henderson, 2017).
Dealing with such type of practices is not as much easy, it requires decision making power,
correct prediction, and future consequences. International managers need to be considering
every factor which affects the growth and development of the company and its objectives.
There are many ways in which international manager’s works. They predict they think they
make decisions in regards to seeing the global market. Now here below discussion is made
over that what methods and techniques international managers adapt to meets the requirement
of their users and meet the company objectives and goals (Deresky, 2017).
o Global managers and its decision process
Managers should deal with globalization then it’s obvious that all their decision is according
to that international position.
o Before going global get through all the process
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Doing business at globalization level is a topic of concern, it means before doing business at
this level all valid information must be gathered.
o Understand the company’s budget and its current objective
Global market demands capital fulfillment. So it’s up to the company and its managers that in
what ways they deal with the global market.
o Time management
Which service and which product is at current demand, according to those priorities are set
and time is managed.
o Which practices lead better and accurate result
There are various methods for managers to deal with the global market but in limited time
and in the defined budget which practices leads them to their result is the matter of concern.
For this only managers who deal with globalization can perform it.
o Adapt changes
At very minute global trends get changed, so it’s not easy to lay on old one. Adapt every
trend and every change that is burning in the international market is the main step for
international managers (Goetsch and Davis, 2014).
o How to manage human resource management
Working at the global level requires human resources for which specialist and skilled hired.
One more work added to the list of international dealing managers of the company. They
need to look for skilled and capable employees to handle their international market of the
company.
o All services are available at the website of the company
For the international business special website of the company should be prepared so that
people from all over the world come to know about the company services and products.
Website information makes the people know about the company value and its services.
o Conduct research to identify the current demand
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Following the current trend is not enough company should know what seasonal is going on
and this can be possible only by doing the research over it. Research provides a particular
platform to follow (Czinkota and Ronkainen, 2013)
o Marketing of product and services that company expanding at the global level
After doing research company get to know about the current trend and demands. After it, the
company can do the marketing of that product and services. Marketing of product and
services at global level enriches its evaluability across the worldwide.
o Hire a good lawyer, banking and accountancy dealer and special of transport
Dealing at international level, it very clear that company requires lawyers, accountant, and
specialist .All such activities are done by the managers to handle all such affairs.
o Make valid proof documentation and details about the company services and
product.
Managers need to notice that all important and valid documentation of the company should
be proper and complete. In casein type of legal action can be undertaken while doing business
at globalization standard (Deresky, 2017).
o Explore cross-border alliances and partnerships
Doing business at this level demands lots of things. Merely expanding business at cross-
border is not enough. Developing relations and having partnership put a cherry on the cake.
Partnerships enhance the relations of the company and strengthen the global market of the
company.
o Trust the process
Whatever managers are doing in the context of this they need to be confident and
deterministic otherwise business can’t be done at such level (Noyes, et.al, 2012).
Above mentioned point describes how international managers oversee the company
performance at the global level. All foreign matters are attended by the international
managers of the company. Managers can adopt the above-mentioned point to win the race
and remain ahead international market or global market. They faced many challenges but
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doing above discussed practices they can be faced all the challenges. The global manager is
able to plan, control, organize and lead with the global market. In ahead of this race global or
international managers must take care of the culture of the company and its reputation. All
monetary and sales related problems must be handled carefully; otherwise, the big dilemma
can occur.
Wesfarmers Outsourcing and Offshoring globalization
Globalisation is the prime demand of any business if one needs to enhance the productivity
and growth of the company (Anwar, et.al, 2013). Wesfarmers is an Australian company and
supply chemicals, energy and fertilizers, industrial and safety products and coal. It is a very
well maintained its brand names and broad its network to enhance the services of the
company. Outsourcing means a non-core function of the company. It includes payroll
processing, call center support, facilities management. If company deals at globalization level
it’s not easy to maintain such thing at such level. Outsourcing is the contract working process
for another country to take advantage of skilled people. Labour cost and work efficiency.
This requires huge chain and efficiency to work. Here the discussion is done by Wesfarmers
Company serving different products all over the world. Which challenges, opportunities, and
problems occurred while at outsourcing globalization (Huws, 2012).
Wesfarmers have many offices all over the world. To maintain and unite all work together is
like shifting mountain. Such big company often faced challenges in one of its time. Similarly
happens with this company. According to the recent report it has been come to know that
Wesfarmers will be going to face many challenges that are listed below:-
 Impact of short-term GST
 Less retail chain distribution
 High fragment market
 Raw material prices disturbances
 Poor segmentation at rural part of the countries.
This all will happen due to less facility management of the company. In this was outsourcing
globalization affects the company growth and performance.
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According to 2013 report, Wesfarmers ranked at the platinum position among the top
companies in the world. This all happened because of its continuous performance and
opportunities it had dealt out. Doing outsourcing business opens many opportunities for the
company. It increases revenues, relation, and position of the company (Massini and Miozzo,
2012). It is very obvious that Larger the chain larger the profit. In every corner of the world,
Wesfarmers has its office. This means at every step, it deals with the new thing, human
resources, and opportunities. Every company demands that core country of that company
should get satisfied first. Some few years ago in a race of outsourcing globalization,
Wesfarmers leave space for their country. Doing this its lay less emphasis in Australia due to
which its consumer’s chain gets a break. It takes a year to come back in form. Globalisation
is the current demands but keeping in core country global business should be done. Its chief
executive said one of its reports that company focusing on Australia’s market. Hence it can
be said that in outsourcing globalization Wesfarmers faced many challenges, problems, and
opportunities.
Offshoring means relocation of the business of the company from one country to another. It
includes manufacturing process and supported function of the company. Offshoring is
different from outsourcing because in this company does not take a contract, in fact, does
work in that country. It is more typical than outsourcing because people often consider that
working or shifting to another country is more difficult than outsourcing. Here below are
some challenges, problems, and opportunities faced by Wesfarmers while working as
offshoring globalization.
There are several challenges faced by the company in offshoring business because in
practical phenomenon it’s very complex to manage. Wesfarmers is having their franchises in
different nations also which sometimes leads it to some problems which stand out as
challenges (Pederson, et.al, 2013). Some challenges that Wesfarmers faced while doing
offshoring business are listed below:-
 Less cost than expectations from offshoring globalization
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 Thinking logistically and practically depicts that it’s huge and huge to manage the
things at such level.
 The team, division, and work regularity.
 Work discipline is not properly synchronized.
It is very obvious that it opens many doors for the company like Wesfarmers which is dealing
worldwide level. Offshoring means getting work done in the different country for this
different body or governing body is required to be work with which means it act as the
separate business in the different country. The company can enhance its productivity with
low cost through the use of offshoring applications. Like working in different country enables
the company to produce a different kind of products which is in the current trend of that
country increases the volubility and productivity of the company and contribute to its growth.
Problems always occurred when works with offshoring business because dealing out with
offshoring business is like dealing out with thousand works at a time. Problems like attending
phone calls, maintain call centers properly, fixing out errors in software programmes. Means
a single error and a single problem can disturb the whole channel and interrupts the working
of the company ( Carty, 2012 ).Hence after discussing outsourcing and offshoring business of
Wesfarmers showing that both are different from each other and both face problems,
challenges, and opportunities in globalization business.
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Conclusion
After this report, it can be concluded that about globalization and its implication affects the
company and its growth. There are several areas that deal with globalization in any company.
Globalisation impacts the company by distributing its channels, its function and all. Managers
adopted above-mentioned techniques to remain ahead of the game indicate the success in the
globalization of the company. Company Wesfarmers exhibiting that outsourcing and
offshoring globalization deals with many challenges and problems in their processes.
Opportunities also strike in the path. Hence globalization opens many doors for the company
with many challenges. Every company wants to grow and become popular thorough
worldwide with their brand names. After this report, it can be easily concluded that
maintaining company’s brand name is not as easier. Globalisation has helped the company to
gain various benefits in the form of gaining an edge over competition, exchange of new and
advanced technology as well as transfer of expert knowledge that enhances organizational
performance in international market.
In this report, the glimpse of globalization depicts its importance and its functions. One
conclusion can also be drawn from this report is that dealing with globalization increases the
company's productivity and provide it many platforms as Wesfarmers are its great example.
Now, globalization or international market is very vital in terms of business areas. It always
proves fruitful for the company and its success.
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References
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