Globalisation and its impact on corporate structures

Research Project

Table of Contents
TITLE:.............................................................................................................................................3
CHAPTER 1: INTRODUCTION ...................................................................................................3
Overview and background......................................................................................................3
Research Aim:........................................................................................................................3
Rationale of research..............................................................................................................4
Time scale:..............................................................................................................................4
CHAPTER 2: LITERATURE REVIEW.........................................................................................6
To investigate the usefulness of corporate strategy in the success of an organisation at global
level........................................................................................................................................6
Influence of global expansion on corporate structure of Enterprise......................................7
Major issues which arise in managing corporate structure at international level...................7
Research gap...........................................................................................................................8
CHAPTER 3: RESEARCH METHODOLOGY.............................................................................9
DATA ANALYSIS AND INTERPRETATION...........................................................................13
Data interpretation................................................................................................................14
RESEARCH OUTCOME..............................................................................................................24
REFLECTION AND RECOMMENDATIONS FOR ALTERNATIVE RESEARCH
METHODOLOGY........................................................................................................................24
Reflection.............................................................................................................................24
Recommendations................................................................................................................26
Research findings.................................................................................................................33
CONCLUSION..............................................................................................................................34
REFERENCES..............................................................................................................................35

TITLE:
Globalisation and its impact on corporate structures. A study on the TESCO superstore
branch situated in London.
CHAPTER 1: INTRODUCTION
Overview and background
Globalisation is considered as the collaboration of two or more businesses, government
and people beyond national boundaries. This is also seen as the process through which
international trade takes place effectively. The term globalisation has brought numerous of
benefits for the companies as with this they can easily enhance their performance at marketplace
and gain profitability (Arthurs, 2018). It also allows business operating their business at global
scale effectively by approaching maximum number of customers at marketplace. This brings
higher opportunities to them that also contributes in the high rise in profitability. Globalisation is
also placing higher impact over the corporate structure of company as they are required to make
modifications in their business operations as per different requirement of international
marketplace. The present report is based on TESCO PLC (Shire Park, Kestrel Way, Welwyn
Garden City, UK), a renown multinational retail company which offers its products across the
world. The company was incorporated in the year 1919 and has main headquarters in
Hertfordshire, England, United Kingdom. International operations of this company directly
places impact over its corporate structure because the respective company have to incorporate
various modifications in it accordingly. In order to deal with this, it is essential for the
management team of this company to maintain feeling of collaboration among employees so that
they can further align their efforts towards organisational goals in rightful manner. In this regard,
investigator have developed aim and objectives for the current research title. Both of them are
described as below:
Research Aim:
Aim of this study is:
To gather knowledge about globalisation and its impact on corporate structure of
organisation. A study on TESCO PLC (Shire Park, Kestrel Way, Welwyn Garden City, UK).
Research objectives

 To investigate the usefulness of corporate strategy in the success of an organisation at
global level.
 To determine the influence of global expansion on corporate structure of Enterprise.
 To study the major issues which arise in managing corporate structure at international
level.
Research questions
 What usefulness is lead by corporate strategy in the success of an organisation at global
level?
 How global expansion have influence on corporate structure of Enterprise ?
 What are the major issues which arise in managing corporate structure at international
level?
Rationale of research
The main reason behind conducting this research is to explore influence of globalisation
on corporate structure of multinational company dealing in retail sector. This also helps them in
developing their knowledge on the same so that it could be utilised in future. The present
investigation will also help researcher in developing their professional skills such as time
management, communication, analytical skill, researching, team working and coordination skill.
From the perspective of scholar, it can be said that this research will help individual in scoring
higher grades in their projects (Belal, Cooper and Khan, 2015). Higher grades will also support
scholar in developing chances of success in the future in terms of their professional life.
Time scale:
For conducting this investigation, researcher have to determine proper time allotted for
different activities. As there are many activities, so it is essential for researcher to determine time
required to complete it and it will be easy to delegate duties to other individuals. With providing
proper time, whole study will be completed within in specified time and aim, and objectives are
achieved.

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Submission of
research
proposal
Complete
background
information for
research project
Collect secondary
sources of
information for
research project
Complete research
methodology and collect
primary and secondary
sources of information
Complete
collecting data for
study and
present the result
Determining
Budget
Data
Interpretation and
analysis
Evaluating results
and findings

Complete the
report and submit
the final report
CHAPTER 2: LITERATURE REVIEW
Literature Review refers to the process of evaluation of ideas and search which are
available in the given subject or area of topic. The available information is synthesized into a
summary. Along with this, the critical analysis is also been made possible by knowing about the
gaps in the current knowledge, showing the limitations, theories and point of views and
formulating areas for further research to the subject or topic about which the individual is writing
about.
To investigate the usefulness of corporate strategy in the success of an organisation at global
level
Corporate structure of an organisation basically represent the way and framework that is
used by an organisation to achieve and accomplish its objective and goals thus, palys a cruical
role in success of an organisation at global level. As per the opinion of Alejandro Cremades,
2018, the corporate structure of an organisation determines the ownership, authority and control
and represent as three groups in the organisation which includes its shareholders, directors and
other officers. In the corporate structure of every organisation the ownership is hold by
shareholders and the control and right of management is in the hands of directors who works on
behalf of shareholders. Beside this, the right and authority of managing and conducting day to
day operations is vested with the managers and offerers. It is necessary for all organisation of
have an efficient and proper corporate structure as it facilitates segmentation of financial
reporting, risk management and better regulatory compliance within an organisation through
providing an detailed information about the organisational chart, job titles and role together with
reporting relationship and hierarchy to have a clarity in flow of authority and responsibility.
Thus, an effective corporate strategy provide clarity and transparency in operations and
accountability and responsibility of an organisation which yield better coordination among the
activities of company which is essential to work effectively at global level therefore facilitate
success for an organisation while operating at international level. A proper framework and
structure is lead by corporate strategy which clearly emphasis the role and duty of all employees

thus, lead to enhancement in performance and efficiency of employees through reducing chances
for confusion and chaos therefore brings success for an organisation at global level.
Influence of global expansion on corporate structure of Enterprise
Global expansion basically refers to the process of globalisation or operating the business
at international level within the different nations of across the world. In global expansion,
organisation run globally by launching its business in diverse countries by manufacturing goods
and services as per customers’ requirements. Corporate structure of the company indicates to the
framework by which the organisation operate and manage its business activities and practices. It
consist several divisions that assist a firm to accomplish the business activities through its
business activities. In Tesco, the corporeal structure of the company influence by global
expansion because when the company operate globally then it affect by different things like
culture, values, legislations, politics and others. According to Patrick Gleenson, 2019, there are
several impacts create upon the firm like change in the functions and management operations
due to formulation of the new plans and strategies as per the internationalisation or the culture
and business environment of a specific nation.
When the respective company run its business concern internationally then it make
change in its exiting organisational structure. For instant, in current era, the firm use hierarchical
organisational structure but when it make global expansion then it can follow divisional
structure. Because, in this kind of framework, the departments of the company segmented in
divisions and each division involve all the required resources and functions within it to support
that product line, finance, information technology and marketing departments (Bretos and
Marcuello, 2017). According to Rob Wengrzyn, 2019, due to transnational business, the
management of the company also make change in the business activities, rules, regulations and
formulate new strategies according to the government policies of that nation and country in
which it operate. Another impact can be created by the rivals which can be created when the
organisation manufacture similar products like competitors so minimise this threat the company
also design new plan of actions against it.
Major issues which arise in managing corporate structure at international level
When a company operate its business internally then there are several challenges and
issues which are faced by it like language barriers, cultural issues, technological problems,
competition, business environment, rules and legislation of the national authorities etc. In Tesco,

to manage these all challenges and issues, the company also form some rules and regulation but
when they are not aligned with that then issues are creating in management. According to Judit
Kozenknow, 2019, when the company operate globally then to deal with the problem of
legislation and rule so the government, the company conduct decision making activity but when
there is not skilled and knowledgeable people then effective and appropriate decision cannot be
taken which create issues in managing corporate structure of the company globally.
Another issues arise due to unskilled employees because when the company make
production by using technology as the needs of host country but the employees not aware with
the technology and have not also basic information about it then problems are generating in the
management of the organisation's structure at international level. Apart from it, issues are arising
in the administration of the corporate structure of the respective company due to cultural
difference and the company hire local people to make their contribution in running the business
that nation. But language barrier create conflicts because they use their local language in term of
making communication. So due to which employee engagement affect negatively when they are
working in team regarding the completion of a task but due to ineffective flow of information
influence unfavourably and the requirements if the work does not fulfil effectively (Child, 2015).
Research gap
This investigation is done to evaluate impact of corporate structure of the organisation,
when association is working in better and effective manner. There are some issues in completing
the study, so researcher is not able to get answer of ways through which corporate structure will
in specified format and it is easy for employees to complete their assigned task. While talking
about strategies, there is difference in views of individuals and this creates confusion in
presenting information.