The Impact of Globalization on the Business (pdf)

UNIT 11

Table of Contents
INTRODUCTION...........................................................................................................................1
P3 Research Methodology...........................................................................................................2
P4 Data analysis...........................................................................................................................5
P5 ppt.........................................................................................................................................19
P6 Reflection on the effectiveness of the research methods applied.........................................19
P7 Alternative............................................................................................................................21
CONCLUSION .............................................................................................................................21
RECOMMENDATION.................................................................................................................21
REFERENCES..............................................................................................................................23

Topic: “To determine the role of globalisation is driving business success.
INTRODUCTION
Globalization is considered as one of the most beneficial process in which any businesses
will grow more and more. It is the procedure by which organization or another business develop
and improve international impact or stray operating into international level. Globalisation is
process of integrating and interaction among government of various country, people and
organizations, it is the procedure driven by global trade and investment by data technology. It
includes concept of delivering services, products, resources of nation from other capital, it is one
of the best way to expand any business from another country. With the help of globalisation
process any company can bring many opportunities as business growth which is beneficial for
them. In other words, globalisation is how nation are coming together in same platform as one
big economy, taking intraregional trade easier. Companies in UK adopt globalisation system for
the main purpose of improving their transport and making international travel easy. It offers huge
range of markets to large organization and also give them with resources of cheap lobar, from
strictly economics point of view, globalisation is the efficient form of allocation. It is very
important for business growth as it helps to drive businesses mores and more rather than before.
Globalisation is free action of services, goods and people across the world in integrated and
seamless manner. It leads to increase business competition, these competitions is related to
services and products price and cost, technological adaption, quick production by organization
etc. that impact on business. As globalisation it affects McDonald's company growth and profit
margin the most.
Overview of company-
McDonald's is American fast food firm which is founded in 1940 as the restaurant,
Richard and Maurice McDonald's is the founder of company. They both name their businesses as
the hamburger stand and after turned firm's into franchise with Golden arches trademark.
Organization is considers as the world's biggest restaurant chain by revenue, they serve over than
69 million consumers daily in over 100+ countries across 38,856 outlets. McDonald's is best
known for their cheeseburgers, hamburgers, French fries as well as they also include feature of
chicken products, soft drinks, milkshakes, breakfast items, different types of meals, desserts and
wraps. In outcome to negative backlash and changing customers tastes because of unhealthiness
of its food items, organization has included to their menu, fish, fruit, smoothies and salads.
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Aim:
To research about the concept of globalisation and its influences on business growth and
success.
Objective:
 To identify the meaning of globalisation.
 To determine the role played by globalization in taking the business successful in
marketplace or the world.
 To identify the various ways that helps in driving business success of McDonald's.
P3 Research Methodology
Research methodology is one of the process that has been used in research project to
gather data and information for the purpose of making project. Methodology include interviews,
publication research, surveys or another research techniques and methods that could additional
both historical and present information. Research method is defined as the guidelines or
measures that are followed by for bringing out research procedure in most fine manner.
Researcher will take present research effective methods which helps in appropriate assessment of
information related to globalization and its impact on McDonald's success. Descriptive, quasi
experimental, correlational and experimental are the four types of research methods that helps to
accomplish research project effectively.
Research philosophy: It is content about the term in which information about project or
research will be collect, used and analysed. In essence, including research philosophy in this
research project includes being aware and formulating researcher assumption and beliefs.
Effective adoption and setting up of research philosophy will contribute suitable carrying out and
planning of information assessment and evaluation system connected to investigating the
globalization role in driving McDonald's business growth and success. It helps in developing
affirmative knowledge and outlook which can be followed by investigator in order to achieve
suitable and desired output connected to investigation procedure carried out. Interpretivism,
realism and positivism are the three kinds of research philosophy. Interpretivism is lay emphasis
on appropriate interpretation of various components connected to research procedure.
Interpretivism research philosophy helps in developing or improving conscientiousness,
knowledge and meaning that the title or research procedure. It relays on qualitative analysis of
information and data and includes factors attendant to human interest. For the recent research
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project researcher used interpretivism research philosophy which helps a lot to accomplish this
research.
Research approach: It is the main technique or method of research procedure that will
carrying out investigation process. Research approach is considered as process and plan that
consist of steps of wide assumption to detailed methods of data analysis, interpretation and
collection. Proper selection of research approach lead to placing up of suitable guidelines
affiliated to information assessment and evaluation method. Research approach play essential
role in execution of data evaluation and assessment process. Research process help in developing
suitable and effectual understanding related to growth measures that will support in maximizing
knowledge related to feasibility of development measures which has been carried out by
organization. Deductive approach is formulated as the bunch of hypothesis for this research
project that need to be rejected or confirmed during research procedures researcher would be
following the deductive approach. In present project researcher of this report has been chosen
inductive research approach as it helps a lot in it. Inductive approach is starts with theories and
observation that is proposed towards the end of research procedure as outcomes of observation.
Inductive approach is used to carried out the impact of globalization as they driving factor of
business success. Inductive approach is related to qualitative research based on analysing data
and measure its effectiveness within this research.
Data collection: It is the procedure of gathering information and collecting data related
to chosen topic. Data collection collect details from relevant topic to find out the best outcomes
to research issues, it also helps to evaluate results and test hypothesis. It can be divided into two
categories such as primary technique of data collection and secondary method of information
gather. In other words it considers as one of the most essential part of research process that
contribute to measure and gather data on targeted variables in the established program, which the
able one to answer relevant query and measure results. Secondary data is kind of data that is
already been published in newspaper, books, online website, magazines etc. on the other hand
primary data is one of the best data collection method that helps to collect information about
chosen topic deeply. For present research, researcher has been used primary data collection
technique, that is divided into two types qualitative and quantitative. Quantitative is based in
mathematical calculation in different formats and qualitative do not include mathematical or
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numbers calculation. It closely based on words, feeling, emotions, sounds, colours and another
factors that are non quantifiable.
Research types: Qualitative and quantitative are the two types of research that has been
very helpful in process of research. Quantitative research include four types of designs such as
descriptive, quasi experimental, correlational and experimental. In this research project
researcher chosen quantitative research that help in exploring data in detailed or effective
manner. Quantitative method express objectives measurements and mathematical, statistical and
numerical analysis of information collected through questionnaires, polls, manipulating pre
existing statistical information and surveys using computational process. It can be applied with
shorter duration of time compared to qualitative methods as it is cheaper to apply.
Sampling: Followed by selection of appropriate research philosophy and data assessment
approach, this must be said that decent planning of information evaluation will include sampling
procedure. The appropriate data sampling measures has been carried out by researcher to
measure extent of research procedure that is been determined by researcher. The effective data
sampling is needed to be select which helps in setting up of proper framework and allocation of
assets that is taken in consideration by quester. Sampling method will help in examining data in
effective manner and most suitable way. About 30 workers of McDonald's are chosen as
respondent to participial in research procedure as whole.
Ethical consideration: Ethical consideration is considered as one of the most important
part of this research project. It can be specified as the essential section of research, include
research participants must not be subjected to harm in any term what so ever. Ethical
consideration in investigation is critical, ethics is the standards or norms for conduct that
distinguish between wrong and write. It helps to evaluate difference between unacceptable and
acceptable behaviours. For present report researcher should consider all the ethical norms and
follow it as entire process of this research. They cannot share any information related to topic
and make privacy. They should not harm anyone during collecting data relevant to chosen topic,
researcher need to follow or adopt all the ethical principles which is essential for project
accomplishment. Investigator should respect for confidentiality and anonymity and also respect
for fidelity and dignity.
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P4 Data analysis
Data analysis is one of the most essential procedure in research which contribute in
cleaning, transforming and modelling information so that data and useful details for gathered
data can be extracted and discovered. For this research thematic investigation will be done and
used in order to get all the quantitative information of McDonald's. For analysis 30 Respondents
asked to fill the questionnaire, it is based on questionnaire analysis will be accomplish. All 30
respondents are worker/employes of McDonald's.
Statistics
Whydoyouthinkglobal
izationhasincreasedrec
ently
AsperyourthoughtWh
atistheadvantagesofgl
obalisation
Doyouthinkfollowing
arethechallengesofglo
balization
Doyouagreethatglobal
isationhasincreasedM
cDonaldsprofitability
businesswilldrivetowa
rdssuccesswiththehelp
ofglobalisation
N Valid 30 30 30 30 30
Missing 0 0 0 0 0
Mean 1.8000 1.8333 1.8000 1.3000 1.4667
Median 2.0000 2.0000 1.5000 1.0000 1.0000
Mode 1.00 1.00 1.00 1.00 1.00
Std. Deviation .80516 .79148 .88668 .46609 .50742
Variance .648 .626 .786 .217 .257
Minimum 1.00 1.00 1.00 1.00 1.00
Maximum 3.00 3.00 3.00 2.00 2.00
Statistics
globalisationofferopportu
nitiestoMcDonald
opportunitieshasbeenoffe
redbyglobalisationtoMcD
onald
globalisationimpactonUK
economygrowth
globalisationisessentialfo
rbusinessgrowthandsucce
ss
Doyouagreeconceptofglo
balisationisdifficulttoman
aged
N Valid 30 30 30 30 30
5

Missing 0 0 0 0 0
Mean 1.4000 1.8000 1.4667 1.4333 1.4333
Median 1.0000 2.0000 1.0000 1.0000 1.0000
Mode 1.00 1.00 1.00 1.00 1.00
Std. Deviation .49827 .76112 .50742 .50401 .50401
Variance .248 .579 .257 .254 .254
Minimum 1.00 1.00 1.00 1.00 1.00
Maximum 2.00 3.00 2.00 2.00 2.00
Theme 1: Globalization increase recently
Why do you think globalization has increased recently
Freq
uenc
y
Perce
nt
Valid
Percent
Cumulative Percent
Vali
d
Developments in
ICT 13 43.3 43.3 43.3
Rise of new
electronic 10 33.3 33.3 76.7
Development of
complex financial
products
7 23.3 23.3 100.0
Total 30 100.0 100
Interpretation: Firms access to large markets and they may experience higher need for
its products as well as profit from economies of scale which leads to reduce in average
production prices. Because of price duction and maximize revenue globalisation can increase
profitability for shareholders. 13 workers think that globalisation is has been increased recently
due to development in ICT which is quite beneficial for business growth and success.
Information and communications technologies is the reason behind increasing globalisation
according to 13 respondents. On the other hand 10 employees think that globalisation get
increased recently due to rise of new electronic which is quite beneficial for business as increase
6

profitability as well as market share. Moreover, 7 workers feet that development of complex
financial products and services is considered as one of the reason that maximize globalisation
process currently.
Theme 2: Advantages of globalization
As per your thought What is the advantages of globalisation
Freque
ncy
Perc
ent
Valid
Percent
Cumulative Percent
Vali
d
Comparative
advantage 12 40.0 40.0 40.0
Cost
competitive 11 36.7 36.7 76.7
Benefits of
open trade 7 23.3 23.3 100.0
7

Total 30 100.
0 100.0
Interpretation: Globalisation is very beneficial for business as it helps to expand
businesses in some another nation. In developing and emerging countries, there are many factors
which influence financial globalisation on UK economy growth and volatility. According to the
above table 12 respondents thought that globalisation give McDonald's comparative advantage in
which organization will be able to bring positive outcomes and make specific products more than
others. It give firm ability to sell its services and goods at lower cost than its business
competitors and realize their stronger sales margins. 11 workers feel that with the help of
globalisation company garb cost competitive advantages, on the other hand 7 employees think
globalisation process provide benefits to McDonald's as open trade that helps to increase its
profitability more than before.
8

Theme 3: Challenges of globalisation
Do you think following are the challenges of globalization
Frequenc
y
Percen
t
Valid
Percent
Cumulative Percent
Vali
d
Barriers to
entry 15 50.0 50.0 50.0
Increase power
of
multinationals
6 20.0 20.0 70.0
Structural
unemployment 9 30.0 30.0 100.0
Total 30 100.0 100.0
Interpretation: Globalisation poses many challenges that will have impact on
McDonald's business the most. 15 respondent feel that globalisation process makes barriers to
entry as they bring many challenges that is related to trade procedure. Businesses with
globalisation face difficulties to enter into new marketplace. 6 workers feel that globalisation
increase power of multinationals which directly affects on company financial budgets and market
shares. On the another hand 9 respondents think that globalisation will change the whole
structure and culture of business which bring difficulties for workers to set themselves within it,
that is one of the biggest reason behind high employee turnover. Many people left job and try to
find out the place which is quite comfortable for them.
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Theme 4: Globalisation increase McDonald's profitability
Do you agree that globalisation has increased McDonalds profitability
Frequenc
y
Percen
t
Valid Percent Cumulative Percent
Valid Agre
e 21 70.0 70.0 70.0
disag
ree 9 30.0 30.0 100.0
Total 30 100.0 100.0
Interpretation: 21 respondents get agreed that globalisation will increase profitability of
McDonald's. With the help to globalisation company can expand its business and sell their
products and services in new market, through that they increase profit more than before. On the
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other hand 9 workers feel that globalisation cannot increase much profit because it is a longer
process which bring many difficulties that also influence on their market share and profit margin
as whole.
Theme 5: Globalisation drive business towards success
Business will drive toward success with the help of globalisation
Freque
ncy
Perce
nt
Valid
Percent
Cumulative Percent
Valid Agre
e 16 53.3 53.3 53.3
disag
ree 14 46.7 46.7 100.0
Total 30 100.
0 100.0
11

Interpretation: 16 respondent think that globalisation is one of the best term or method
that helps businesses to grow more towards success. 14 people feel that globalisation is bring
difficulties more than opportunities.
Theme 6: Globalisation offer advantages to McDonald's
Globalisation offer opportunities to McDonald
Freque
ncy
Perce
nt
Valid
Percent
Cumulative Percent
Valid yes 18 60.0 60.0 60.0
no 12 40.0 40.0 100.0
Total 30 100.
0 100.0
12

Interpretation: 18 Respondents feel that globalisation is offering as the best
opportunities to organization and on the another hand 12 workers think that it is not as much as
appropriate for company as opportunity.
Theme 7: Opportunities offer by Globalisation to Organization
Opportunities has been offered by globalisation to McDonald
Freque
ncy
Perc
ent
Valid
Percent
Cumulative Percent
Vali
d Increase profit 12 40.0 40.0 40.0
Large markets 12 40.0 40.0 80.0
13

Build strong
trade relation 6 20.0 20.0 100.0
Total 30 100.
0 100.0
Interpretation: 12 respondent feels that globalisation offer many opportunities to
McDonald's which help in making its reputation in market higher than another fast food
companies. On the other hand 6 workers think that globalisation build strong trade relationship
of company with another nations which is quite beneficial for them. 12 respondents think that
globalisation give organization to large markets and serve its best services or products.
Theme 8: Globalisation impact on economy growth in UK
Globalisation impact on UK economy growth
14

Freque
ncy
Perce
nt
Valid
Percent
Cumulative Percent
Valid yes 16 53.3 53.3 53.3
no 14 46.7 46.7 100.0
Total 30 100.
0 100.0
Interpretation: 16 workers think that globalisation affect economy growth within UK,
business will increase profit due to globalisation which helps to increase employment
opportunities for people who need jobs as for career growth. 14 people feel that globalisation
cannot affect positively on economy growth for longer because globalisation bring challenges for
company in which some times they are not been able to work according to it that influence to
economy growth the most as lack of employment.
15

Theme 9: Globalisation is important for growth of business
Globalisation is essential for business growth and success
Freque
ncy
Perce
nt
Valid
Percent
Cumulative Percent
Valid yes 17 56.7 56.7 56.7
no 13 43.3 43.3 100.0
Total 30 100.
0 100.0
Interpretation: 17 respondents think that globalisation is very essential for business
success and growth in marketplace. It contributes to enlarge businesses functions and activities
into new place where company will be able to grow more and more. But on the other side 13
workers feel that globalisation does not help in business success as much.
16

Theme 10: Globalisation is difficult to managed
Do you agree concept of globalisation is difficult to managed
Freque
ncy
Perce
nt
Valid
Percent
Cumulative Percent
Valid Agre
e 17 56.7 56.7 56.7
disag
ree 13 43.3 43.3 100.0
Total 30 100.
0 100.0
Interpretation: 17 workers is agreed that globalisation process is very difficult to
managed or organized. In globalisation McDonald's need to make effective plans and strategies
that is longer term process and need more time. On the other hand it effect employee working
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structure as whole and they feel unconformable within new environment. 13 respondents think
that globalisation is not as much as difficult to managed if management make good planning and
take appropriate decision based on capitalist expansion from one nation to another country.
P5 ppt
P6 Reflection on the effectiveness of the research methods applied
As a researcher, I conducted various research on the globalization through various
research methods. Through this research, I get to know more about the globalization and its
impact. By adopting globalization strategy, McDonald's has become successful. As Company did
expand its business globally, its revenue also increased with the expansion which make the
company successful in the world by revenue. Globalisation has really made a positive as well as
negative impact on the globalisation.
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By using research, I got to know about the various positive impact of the globalisation on
the McDonald's. These impact are as follows -
By conducting research, I got to know that McDonald's is the most successful business in
restaurant industry. Reasons behind this success, their knowledge about cultural awareness
which is different in countries. I also find out through research that McDonald's makes local
adaptations in their menus which attract the customers most.
I got to know that with the expansion of its business, McDonald's revenue has increased
and financial position become strong. Today McDonald's is the 6th position in the worldwide by
revenue. It helps McDonald's to realize economies of scale that reduce the costs of production
and increase the demand of products.
I observed during research that Globalisation has helped McDonald's to create the tough
competition for another companies such as KFC, Dominos etc. As McDonald's successfully
adopts the local and cultural tastes in their menus which attract the customers. Today in
restaurant industry, McDonald's has high market share due to its successful globalisation
strategy.
I also observed that Globalisation also has technical impact on the McDonald's. When
company expand its business in various countries, where revenue generation are huge for the
company. Through this revenue, McDonald's innovate the new technologies which produce high
quality goods at lower price.
During research, by using various kind of research methods, I also get to know about the
negative impact of globalisation on McDonald's which are as follows -
McDonald's are facing so many legal and political issues due to rapidly changes in
political and legal structure of the countries which is not clearly understand by McDonald's. This
lead company to face a lot of controversies and legal issues and fines which lead the negative
impact on company's brand image.
McDonald's also has to face fluctuations in tax rate and exchange rate which impact the
profitability of the company. This also impact the imports and exports of the raw materials of the
company which cause to fluctuations in the price of food products which impact the customers
base of the company.
Thus, these research methods which is being used by me for the research are effectively
as it helps me to gain knowledge on the impact of globalisation on McDonald's and the impact of
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its globalisation strategy. There are a lot of negative impact of globalisation strategy on
McDonald's but still today's McDonald's is considered to be most successful company in the
world and its globalisation strategy is considered to be successful strategy.
P7 Alternative
In this report researcher used primary data collection methods, while they can use
secondary data collection methods which is quite beneficial to get the best outcomes. Secondary
information gathering is refers to someone who is another person that user can connect for the
purpose of collecting information based on chosen topic.
CONCLUSION
The current research project disuses about the concept of Globalisation as it helps to drive
business towards success in marketplace or whole world. Globalisation is one of the best ways
which has been considered in entire report, it contributes to increase profitability and
productivity of business more and more rather than before. It has been concluded that
globalization concept define as the procedure of integration between states or nations which is
created through interchange of international view, products, ideas or another components present
in culture. Progress and growth of local market is very essential so that globalisation is one of the
main reason behind it which helps a lot as well as support in forming interaction and relationship
between many countries via globe spanning network of communication as well as trade. In this
research it has been concluded that globalisation play effective role in making businesses more
successful rather than before. It brings up downside and upside both factors in front of company
which has to be faced by them. But with positive factors organization will grow and success in
process of market enlargement, global stability and marketing equalization. Globalisation offers
many opportunities to business which has been discussed in this research report. It provides
ventures the best advantage for maximizing their consumer base by operations expanding at
several geographical field that support in gaining high profit margin and brand recognition. It
includes that globalisation contribute to develop and improve working culture of various nations
it is quite beneficial. With the help of globalisation process organization build strong relationship
with other country and also helps in economy growth and development within UK. Furthermore,
it discussed that globalisation is support McDonald's in different ways or terms in driving
business towards growth and success which is quite beneficial for them and contribute to beat its
competitors in marketplace. It helps company to build strong brand presence and provide an
20

opportunity to introduce their products and services in new market which help to grab the
attention of new customers. It has been discussed that globalisation and McDonald's relationship
is based on success and profit increase, as it support to achieve organization desired objectives
and business goals.
RECOMMENDATION
Globalization process is the best way to build business more powerful and successful in
market world as globalisation it provides many opportunities to McDonald's for consistent
capitalist expansion. Thus, globalization affect organization business negative in way which
directly impact on its profit margin and financial budgets the most. To overcome with these
negative influence on business, McDonald's must make effective and appropriate plan or
strategies of globalisation which helps to decrease negativity and increase profitability within
company. High employee turnover is can be considered as negative affect due to globalization on
organization. Thus, to improve the situation and decrease employee turnover, firm must provide
training to its workers that helps to build capability among them to gain advantages of
globalisation. As it changes the whole environment of company which is quite difficult to
managed for staff, thus to make workers comfortable in new environment around workplace
management of organization should try to communicate with them and understand their
situations. It is one of the best way to minimize the employee turnover and retain talented
workers with them for longer term period. Competitive environment in market place is higher
and higher rather than before to beat competitors and garb the attention of consumers. To gain
the advantages of business growth, McDonald's must take actions and efforts to make their
globalisation process more effective which helps to raise their position in marketplace.
Organization with globalisation should create their image higher than the another in UK and
achieve their desired goals as capital expansion.
To remove the barrier in process of globalisation, company should build effective team
who helps to face business difficulties as well as contribute to gain competitive advantages the
most. With the help to following all the accurate procedure of globalisation and talented
workforce organization should increase profitability and run its business effectively in entire
world.
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Questionnaire
1. Why do you think globalization has increased recently?
◦ Developments in ICT
◦ Rise of new electronic
◦ Development of complex financial products
2. As per your thought What is the advantages of globalisation?
◦ Comparative advantage
◦ Cost competitive
◦ Benefits of open trade
3. Do you think following are the challenges of globalization?
◦ Barriers to entry
◦ Increase power of multinationals
◦ Structural unemployment
4. Do you agree that globalisation has increased McDonald's profitability?
◦ Agree
◦ Disagree
5. Do you think that business will drive towards success with the help of globalisation
◦ Agree
◦ Disagree
6. Do you think that globalisation offer opportunities to McDonald's
◦ Yes
◦ No
7. As per your opinion what opportunities has been offered by globalisation to McDonald's?
◦ Increase profit
◦ Large markets
◦ Build strong trade relation
8. Do you think that globalisation impact on UK economy growth
◦ Yes
◦ No
9. Do you think globalisation is essential for business growth and success?
◦ Yes
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◦ No
10. Do you agree concept of globalisation is difficult to managed?
◦ Agree
◦ Disagree
23