Impact of Globalization on Firm Profitability | Axentin Limited

Running head: MANAGEMENT
Globalisation
Name of the student
Name of the university
Author Note:

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Table of Contents
TASK 1 PROPOSAL..................................................................................................................3
INTRODUCTION...........................................................................................................................3
RESEARCH AIM........................................................................................................................3
RESEARCH QUESTION...........................................................................................................4
RESEARCH OBJECTIVES........................................................................................................4
LITERATURE REVIEW............................................................................................................4
Globalization....................................................................................................................................5
Technologcial drivers:.................................................................................................................6
Pricing strategies:.........................................................................................................................8
Marketing activities:....................................................................................................................9
RESEARCH METHODOLOGY..............................................................................................10
ETHICAL CONSIDERATION.................................................................................................10
GANTS CHART...........................................................................................................................10
TASK 2 MAIN RESEARCH WORK...........................................................................................13
INTRODUCTION.........................................................................................................................13
RESEARCH AIM......................................................................................................................14
RESEARCH QUESTION.........................................................................................................14
RESEARCH OBJECTIVES......................................................................................................14
Marketing activities:..................................................................................................................18
Questionnaire:................................................................................................................................18
METHODOLOGY....................................................................................................................19
CONCLUSION..............................................................................................................................44
RECOMMENDATIONS...............................................................................................................45

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Task 4.............................................................................................................................................46
Personal reflection:........................................................................................................................46
Reflction on the project ouctomes:................................................................................................46
Effectiveness of the research method used:...................................................................................46
REFERENCES..............................................................................................................................48
Bibliography:.................................................................................................................................52

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TASK 1 PROPOSAL
INTRODUCTION
This research project will examinethe impact of globalization on firm profitability of
Axentin Limited in the UK, London. The intensity of competition of local companies is drawing
down the profitability and many local companies are looking for expanding these services abroad
with the purpose of increasing the profitability.This willencourage Axentin Limited to tape into
international environment.
Globalization has resulted in the growth of revenue and market share with creating
international goodwill for any business because it provides international consumer base, increase
the market share of the organization, growth of revenue and profit (Gopinath,
2018).Globalization is very important to global economy as it provides international consumer
base to increase the market share of the organizationresulting in growth of revenue as well as
profit (Gopinath, 2018).
According to Shodhanga (2012), profitability is an excess of amount made the company
as a result of business activities. Harward and Upton defined profitability as “the ability of given
investment to earn and return from its use”. Profitability refers to the percentage return of the
resources induced. Profits can be earned but having good profitability is a tough task.
Several articles and books have been written covering the topic of globalization but
research on globalization and profitability on AXENTIN LTD, London has never been
conducted before.AxentinLimited is a small-scale firm that was established in 2014 indulged in
financial services sector situated at Harrow, London. AxentinLimited provides accounting
services such as tax return filing, bookkeeping, tax savings and all kind of financial and
accounting services to its customers.
RESEARCH AIM

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The AIM of this research is to examine how globalization impact on firm’s profitability
of Axentin LTD in London
RESEARCH QUESTION
How globalization impact on firm’s profitability of Axentin LTD in London?
 How globalization impact on firm’s profitability of Axentin LTD in London?
 What impact does globalization have on Axentin LTD?
RESEARCH OBJECTIVES
1. To review and analyze the globalization and profitability
2. To measure the globalization and firm profitability
3. To draw the implication of research finding
LITERATURE REVIEW
This section of the research project will review globalization and firm profitability. The
section covers a brief account of history of globalization, definition, drivers, and theoretical
framework
Brief background of Globalization
Machlin Fink (2013), affirms that globalization has been a hotly debated issue throughout
recent years and gives no indications of leaving at any point in the near future. When and where
globalization began is an issue that is fervently challenged right up 'til the present
time.Numerous things added to the period of globalization we as of now live in. Huge numbers
of these were created sometime before the ongoing pattern of globalization and these
components have permitted it to turn into a main thrust of the cutting-edge worldwide economy.
In contrast Michael D Burdodeclared that the effect of globalization just can't be surveyed over a

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year, 10 years, or even two decades. Michael D Burdo things that globalization starts in the
interwar years when the world moved pointedly away from receptiveness and toward
independent autarky, with extended exchange security all over the place, expanded obstructions
to work and capital versatility, and broad money related and monetary brokenness.
Globalization
Gloabisation is one the most important market contexts which alone is responsible for
bringing about immemnse changes in ways in which business organisations operate. Hirst and
Thompson(2019) define that globalization as the interconnectedness of between the countries,
companies, consumers and other groups of stakeholders like invesrtors and suppliers. They
mention that owing to globalization, these companies, countries and consmers today exchange
knowledge on continuous basis at really high speed. Pettifor(2018) explores the aspects of
globalization from a financial aspect and points out that globalization has led to flow of financial
capital from one part of the world to another. Asongu, Koomsonand Tchamyou (2017)supporting
the previous authors point out that globalization enables flow of financial capital from one
country to another. This enables the developed nations invest in the underdeveloped nations, thus
leading to the economic development in the latter. Thus, in short the term globalization refers to
the flow of capital, goods and information from one country to another. Hopper, Lassou and
Soobaroyen(2017) contradict the opinion of the previous authors and put forward globalization
has resulted in creation of several economic issues like umemployment, deregularisation of
markets, replacement of welfare states to profit making states and erosion of values. For
example, owing to globalization the governments of most of the nations have adopted policies
deregulations or loosening their control on the movement of goods and services within the
markets of the countries under their respective jurisdictions. This means that the goods including
fake goods can also reach the consumers. This in turn means that globalization to certain extent
has led to erosion of values and ethics. Thus, it can be construed from the discussion that
globalization has no fixed definition. It can be defined as free movement of financial capital from
one country to another. It can also can refer to the situation in which goods and services can flow
from one country to another with reduced control of governments.

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According to Krugman (2017), globalization is the main key that created global
availability of international products and services. Chilisa (2019), Globalization has provided
business community a wide choice of markets and countries to trade in while keeping a fair
percentage of profit and expand their business while creating reputation in the global market.
Globalization has provided lot of benefits to even business organizations as well as consumers
too.From the business point of view, providing a wide choice of market to business organizations
as before globalization there was a particular market with limited number of consumers and
business prospects. After globalization business organizations have unlimited base of consumers
and growing demand from all over the world (Chilisa, 2019).
Technologcial drivers:
Technology is one of key drivers of globalisation. Emmanuel(2017) while shedding light
on the importance of technology mentions that, ‘Technology allows for automation of routine
processes, such as production, distribution, sales, after-sales service and inventory
management.’ Technolgy enables business organistions to mass produce goods and services
which initiates the flow of these towards the consumers. Technolgy enables the firms not only to
produce goods but also distribute them in the market. Bukova et al. (2018) takes the discussion to
the next level by pointing out that logistics, which is very much based on technology enables the
produces move the goods manufactured down the supply chain which ends with the end
customers. In fact, companies today manage and monitor these distribution of finished goods
using advanced technology like block chain technology and big data. Gorjón(2018) strengthens
the discussion by pointing out the the next stage after distribution of goods-receiving of
payments, again where technology plays a very crucial role. Business organisations today receive
a considerable amount of their revenue on the financial technology platforms. Jagtiani and John
(2018) point out that even individual consumers today prefer using fintech platfroms for making
payments for purchase of goods. Thus, substance draw from the two pervious sets of authors can
be synthesized to point out that technology has made the entire process of selling and receiving
of payments extremely fast. In fact, companies can update their sales record and their inventory
records on real time basis on receiving payments online. This reduces the need to adjust
inventory records manually. Thus, one can point from this discussion that technology has

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integrated the different aspects of business right from production of goods to selling them. Kalar,
and Antoncic (2016) highlighting the importance of technology point out that today acquisition,
mamagement and sharing of technology as well as technical knowledge have become so
important that firms consider them as intangible capital.Hacker and Petkova(2017) point out that
technology has become so crucial that hackers and unauthorized groups often target
technological knowledge of firms as well as their consumers. This threat to technology has made
firms protect their technological assets using IPRs.
Innovation is one of the main factors which has transformed almost every aspect of
business operations right from production of goods to financicl management. Hong, et al. (2016)
point out that innovation enables firms to bring about transformations in their products to make
them more suitable to the needs of the consumers.In fact, successful innovations enable firms to
gain ‘dominant market position’. Visnjic, Wiengarten and Neely(2016) point out that
companies bring about innovations in their products to make them more useful to consumers,
thus creating value for them. Huang(2017) point out that firms use the ecommerce platforms to
sell goods and receive payments even from distant markets which in itself is an innovation.
Ecommerce platforms enable customers to make payments on purchase using different modes of
payments like debit cards, online fund transfer and even cash on delivery. This innovation in
terms of making payments for purchases has enabled firms receive payments more easily. Thus,
innovation has strengthened the financial management in firms as well.
Globalisation has enabled the business organisations to expand into markets far beyond
their home markets. They today obtain raw materials from all across the world to fuel their
manufacturing processes. This enables them to obtain raw materials at economic rates. Similarly,
they sell products before a vast customer base spread across several countries(Alla et al.,
2017).This enables them to diversify their operational costs over an immense base of revenue.
Thus, in other words cost advantages are one of the main drivers of globalization.
Consumers today are prefer using different types of products to suit their needs (Sousa,
Nobre and Farhangmehr 2018). Ecommerce platfroms enable them to purchase wide ranges of
products which may not be available in local markets (Huang 2017). These growing demands
among consumers in the society for different types of goods and services have encouraged firms