Impact of Globalization on Offshoring of Business: A Study on Tesco plc

This research project analyzes the impact of globalization on the offshoring of business, focusing on Tesco plc. It examines the importance of globalization, its impact on offshoring, challenges faced by the company, and recommendation strategies for improving productivity. The study uses qualitative research methods and thematic analysis to gather and analyze data.

Research Project

Contents
LO 1.......................................................................................................................................................4
Producing a research proposal...........................................................................................................4
LO 2.....................................................................................................................................................11
Primary and secondary research......................................................................................................11
LO 3.....................................................................................................................................................19
Research outcomes..........................................................................................................................19
LO 4.....................................................................................................................................................19
Reflection........................................................................................................................................19
CONCLUSION...................................................................................................................................20
RECOMMENDATION.......................................................................................................................20
REFERENCES....................................................................................................................................22

TOPIC: “To analyse the impact of globalization in relation with the offshoring
of business. A study on Tesco plc.”
LO 1
Producing a research proposal.
INTRODUCTION
Background
Globalization is referred to as an effective strategy which in turn helps in increasing
the performance which in turn leads to higher operational goals and objectives (Hirst,
Thompson and Bromley, 2015). This helps in increasing the trends which results in cross
border transaction which helps in providing goods and services to various national and
international boundaries (The impact of Globalization & Offshoring, 2009). Globalization is
useful in increasing the job opportunities by improving the level of labour migration between
countries. This report will determine the importance of globalisation. This study helps in
determining the impact of globalization in relation with the offshoring of business. This
report helps in evaluating the challenges faced by the company due to globalization.
Furthermore this study helps in effectively providing recommendation strategies to improve
the productivity of the business due to globalization.
Tesco plc. is a multinational retail company which was established in the year 1919
by Jack Cohen. This company is headquartered in Tesco House, Welwyn garden city,
Hertfordshire, England.
Aim and objectives
Aim
“To analyse the impact of globalization in relation with the offshoring of business. A
study on Tesco plc.”
Research objectives
 To analyse the importance of globalization.
 To determine the impact of globalization in relation with the offshoring of business.
 To critically evaluate the challenges faced by the company due to globalization.
 To evaluate effective recommendation strategies to improve the productivity of the

business due to globalization.
Research questions
 What is the importance of globalization?
 What is the impact of globalization in relation with the offshoring of business?
 What are the challenges faced by the company due to globalization?
 What are effective recommendation strategies to improve the productivity of the
business due to globalization?
Rationale
The main reason for choosing this research topic is because globalisation is a current
issue and the researcher wants to expand its knowledge on the particular subject matter. This
is a current issue because globalization leads to various economic issues such as different
rules and regulation of different countries, government corruption, etc. The researcher of this
study has chose this topic because of the academic interest. The researcher will effectively
address all these issues with the help of thematic analysis in order to gain better perspective
on the analyse the impact of globalization in relation with the offshoring of business.
LITERATURE REVIEW
To analyse the importance of globalization.
Beck, (2018) sought to analyse the fact that, Globalization refers to the connectivity of
people and businesses worldwide which leads to the integration of global culture, political
and economic. It has changed lives throughout the globe. Globalization can be defined as the
movement of goods, services and people across the world in an integrated manner. It has
made it easier for new entrepreneur to start contending with old incumbents. The main aim of
globalization is to benefit individual economies around the world by making markets more
efficient, increasing competition, limiting military conflicts, and spreading wealth more
equally. Eriksen, (2018) evaluated that, globalization has increased employments by
increasing export and import of goods. Inflation rates have been reduced because of
globalization. Three classic example of globalization are telephone, internet which helps in
the establishment of globalization across the world. Globalization has augmented the growth
which enhances the per capita income and serving the countries to attain higher economic
growth and trim down poverty. Hirst, Thompson and Bromley, (2015) argued that,
Globalization has lead to direct foreign investment which increases at a greater rate which

helps in boosting technology and growth in global companies. Direct foreign investment have
triggered the establishment of organisation such WTO, WIPO increasing economic practices
such as outsourcing. Having various positive outcomes, Lechner and Boli, (2020) said that,
globalizations have certain drawbacks which includes inequality, inflation and threat to
ecosystems. Reports by global organization conclude that strong demand for commodity
causes rise in prices. New technologies have been stimulated as a result of increased
competition because of globalization. Steger, (2017) determine the fact that, Globalization is
necessary to restore more voice to labour and its needs for job and income stability while
focusing attention globally on where the biggest economic gains can be made.
To determine the impact of globalization in relation with the offshoring of business.
Franko, (2019) evaluated that, Globalization in short means bringing the economy
close and making everything accessible to everyone. It means the movement of goods and
services, products, knowledge, each and everything across the world in an integrated manner.
As the trade between various countries started, globally movement of everything started
taking place, it gave birth to globalization. As we can see the world is developing and the
countries which were backward countries, have started developing and emerging in every
manner and all that has happened just because of the result of globalization and offshoring.
Papastergiadis, (2018) determine the fact that, globalization would not have happened, the
world would have been a different place all together. Due to globalization the investments in
other countries and the various avenues have been possible that have a good impact on the
overall economy as well. Crane, Kawashima and Kawasaki, (2016) argued that, Offshoring
has given a platform to all the underperforming sectors to grow as well. The sectors that were
not performing well and were not growing have also started performing and also given good
results because of the impact of globalization. Globalization is an unavoidable phenomenon
in the history which has made the world a smaller place to live in and work.
Eriksen, (2018) said that, Globalization is an unstoppable event that will continue to
be there till the time economy is growing. There can be no full stop that could be applied to
it. It is such an important and that powerful tool for the whole economy.
Offshoring gives us the proper use of resources. Now we know which technology is to be
used where and how to get access to the required thing. With globalization now we have
access to each and everything all round the world so we know that if we need anything from
where do we get it and how to acquire it.

Offshoring gives multiple choice for every country as not every country has everything so
now it is known that where would the resources be available at a cheaper rate or desired
quality. Wide variety is there in the whole now. Also because of globalization the inflow of
foreign currency has taken place which was not there before it. And because of this import
and export of goods is also happening now.
Franko, (2019) sought to analyse the fact that, employment has been created because
of globalization. As the people can easily move in and out of the country now the
employment ratio has increased as compared post globalization.
Government has also supported this by giving incentives in taxes, duties, etc.
Technology has also increased because of globalization now. Now every one has the
knowledge of each and everything if seen.
It is not only helpful for competition but also fruitful for profit maximization as well.
Also the losses that an individual face in the domestic market can be easily covered in the
international market.
To critically evaluate the challenges faced by the company due to globalization.
Lechner and Boli, (2020) sought to analyse the fact that, globalization leads to various
challenges which leads to lower operational growth and efficiency of the business. The
customers have a higher expectation from the market now. As he knows everything that is
there in the global market so he needs everything. Hirst, Thompson and Bromley, (2015)
evaluated that, the moral, cultural and ethical standards of every country are different and
every company works in its own way so it is difficult for the organization to work according
to the other company. Crane, Kawashima and Kawasaki, (2016) argued that, the standards
differ for every one of them which makes it a challenge for them. The cost if also increased
for the organization as when globalization has happened now the organization has to work as
per the whole economy at an international level as well which makes it even more costly than
before. Beck, (2018) determine the fact that, maintaining the international levels, the cost will
increase naturally.
Steger, (2017) said that, the cultural barriers are a challenge for the organization to
work in the international economy since every country has its own ways and cultures. Now
for every country to understand the other cultures and accepting them, then working
according to them is a big challenge. It is not an easy task to do for the organizations.
RESEARCH METHODOLOGY

Research methodology is referred to as an effective approach which helps in
effectively analysing the various information related with the particular research topic
(Mackey and Gass, 2015). This helps in filling the gaps on the subject matter by gaining valid
and reliable data.
Research methods: This helps in gathering relevant information associated with the
subject matter. This can be classified into quantitative and qualitative method. Qualitative
research method is useful in gaining logical insight on the subject matter with the help of
human knowledge, observation and experience (Kumar, 2019).
The researcher of the study will opt for qualitative research methods in order to
analyse the impact of globalization in relation with the offshoring of business.
Research philosophy: This is considered to be as an effective research methodology
which helps in determining the way to gather and analyse the particular information (Bresler
and Stake, 2017). This can be categorized into positivism and interpretivism approach.
Interpretivism approach helps in determining the patterns of the study effectively integrating
human interest into the research study.
The researcher of the study will opt for interpretivism approach in order to analyse the
importance of globalization.
Research approach: This is considered to be an organized procedure to carry out
particular research project. This can be categorized into inductive and deductive approach.
Inductive approach is useful in gaining specific conclusion.
The researcher of the study will opt for inductive research approach in order to
determine the impact of globalization in relation with the offshoring of business.
Research design: This approach is useful in integrating various components, elements
and variables of study which helps in resolving the research problem (Mackey and Gass,
2015). This can be categorized into exploratory and descriptive research design.
The researcher of the study will opt for descriptive research design to evaluate the
challenges faced by the company due to globalization.
Data collection: This method is useful in collecting relevant information in order to
bridge the gaps and gain valid and reliable data on the research topic. This can be categorized
into primary and secondary research approach.

The researcher of the study will opt for both primary and secondary research approach
in order to evaluate the challenges faced by the company due to globalization and find
effective recommendation strategies to improve the productivity of the business due to
globalization.
Sampling: It is useful in selecting an appropriate sample size from large number of
population (Silverman, 2016). This can be categorized into probability and non probability
sampling method.
The researcher of the study will opt for random probability sampling method where
20 managers of Tesco plc will be selected to analyse the impact of globalization in relation
with the offshoring of business.
Data analysis: This tool is useful in analysing and interpreting the data collected. This
can be categorized into thematic analysis and SPSS tool. Thematic analysis is very useful in
closely examining the data and it also helps in interpreting the patterns to gain meaningful
results (Ledford and Gast, 2018).
The researcher of the study will opt for thematic analysis as it helps in analysing the
impact of globalization in relation with the offshoring of business.
Ethical consideration: The researcher of the study will carry out the research in
ethical and reliable manner. One of the ethical issue associated with the resaerch study is
associated with keeping the data confidential of the respondents. In order to resolve this issue,
the reasercher will respect the confidential data nad will take necessary measure to protect
such data. Also, another ethical issue faced by the company is compliance with legal laws
and standards. All the resources will be used with utmost efficiency and the researcher has
also complied with the data protection act (Quinlan and et.al., 2019). The researcher also
focuses on citing all the data from where the information has been collected. The data
collected is true and no misleading information will be included in the research.
LO 2
Primary and secondary research
QUESTIONNAIRE
1. For how long you have been working in this organization?
 0 to 5 years

 5 to 12 years
 12 to 18 years
 More than 20 years
2. Do you agree globalization has impact on the performance and productivity of the
business?
 Agreed
 Highly agreed
 Disagree
 Highly disagreed
 Neutral
3. According to you what is the most important factor of globalization?
 Attainment of economies of scale
 Technological change
 Effective growth and expansion strategy
4. According to you what is the impact of globalization in relation with the offshoring
of business?
 Helps in reduced risk
 Access to productive and talented staff
 Reduced risk and better control over the business
 Greater availability of the resources
5. Do you think globalization can drive business to success?
 Yes
 No
 Maybe
6. Do you agree, there is an interrelationship between the global politics and global
business?
 Agreed
 Highly agreed
 Disagreed
 Highly disagreed
 Neutral
7. According to you what are the challenges faced by the company due to
globalization?
 Complying with government rules and regulations

 Physical distance
 Unfamiliar culture and language barrier
 Choosing the right market or country for expansion
8. Do you think globalization helps in improving the economic condition and in turn
has several positive effects on business?
 Yes
 No
 Maybe
9. What according to you are the strategies implied by the multinational companies to
enter into emerging market?
10. According to you what are effective recommendation strategies to improve the
productivity of the business due to globalization?
Theme 1: Maximum number of managers have been working in this organization for more
than 20 years.
PARTICULARS NUMBER OF
RESPNDENTS
% OF RESPONSDENTS
0 to 5 years 3 15%
5 to 12 years 4 20%
12 to 18 years 5 25%
More than 20 years 8 40%
TOTAL 20 100%

0 to 5 years 5 to 12 years 12 to 18 years More than 20 years
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
15%
20%
25%
40%
% OF RESPONSDENTS
Theme 2: Highly agreed, globalization has impact on the performance and productivity of
the business.
PARTICULARS NUMBER OF
RESPNDENTS
% OF RESPONSDENTS
Agreed 4 20%
Highly agreed 6 30%
Disagree 3 15%
Highly disagreed 2 10%
Neutral 5 25%
TOTAL 20 100%
20%
30%
15%
10%
25%
% OF RESPONSDENTS
Agreed Highly agreed Disagree
Highly disagreed Neutral
Theme 3: Effective growth and expansion strategy, is considered to be the most important

factor of globalization.
PARTICULARS NUMBER OF
RESPNDENTS
% OF RESPONSDENTS
Attainment of economies
of scale
6 30%
Technological change 5 25%
Effective growth and
expansion
9 45%
TOTAL 20 100%
30%
25%
45%
% OF RESPONSDENTS
Attainment of economies of scale Technological change
Effective growth and expansion
Theme 4: Greater availability of the resources, is the impact of globalization in relation
with the offshoring of business.
PARTICULARS NUMBER OF
RESPNDENTS
% OF
RESPONSDENTS
Helps in reduced risk 3 15%
Access to productive and
talented staff
6 30%
Better control over the
business
4 20%
Greater availability of
the resources
7 35%

TOTAL 20 100%
Helps in reduced risk Access to productive
and talented staff
Better control over
the business
Greater availability
of the resources
0%
5%
10%
15%
20%
25%
30%
35%
40%
15%
30%
20%
35%
% OF RESPONSDENTS
Theme 5: Yes, globalization can drive business to success.
PARTICULARS NUMBER OF
RESPNDENTS
% OF RESPONSDENTS
Yes 12 60%
No 3 15%
Maybe 5 25%
TOTAL 20 100%
60%
15%
25%
% OF RESPONSDENTS
Yes No Maybe
Theme 6: Highly agreed, there is an interrelationship between the global politics and

global business.
PARTICULARS NUMBER OF
RESPNDENTS
% OF RESPONSDENTS
Agreed 5 25%
Highly agreed 7 35%
Disagree 2 10%
Highly disagreed 1 5%
Neutral 5 25%
TOTAL 20 100%
Agreed Highly agreed Disagree Highly disagreed Neutral
0%
5%
10%
15%
20%
25%
30%
35%
40%
25%
35%
10%
5%
25%
% OF RESPONSDENTS
Theme 7: Unfamiliar culture and language barrier, is the major challenge faced by the
company due to globalization.
PARTICULARS NUMBER OF
RESPNDENTS
% OF RESPONSDENTS
Complying with
government rules and
regulations
6 30%
Physical distance 3 15%
Unfamiliar culture and
language barrier
7 35%
Choosing the right
market or country for
4 20%

expansion
TOTAL 20 100%
30%
15%35%
20%
% OF RESPONSDENTS
Complying with government rules and regulations
Physical distance
Unfamiliar culture and language barrier
Choosing the right market or country for expansion
Theme 8: Yes, globalization helps in improving the economic condition and in turn has
several positive effects on business.
PARTICULARS NUMBER OF
RESPNDENTS
% OF RESPONSDENTS
Yes 14 70%
No 2 10%
Maybe 4 20%
TOTAL 20 100%
70%
% OF RESPONSDENTS
Yes No Maybe
Theme 9: The strategies implied by the multinational companies to enter into emerging

market.
Theme 10: Effective recommendation strategies to improve the productivity of the business
due to globalization.
LO 3
Research outcomes
COVERED IN PPT
LO 4
Reflection
Globalization looks like a simple and easy process that is used by different business
organization in order to expand their business on the international level. As I have learned
from this research, it is one of the most complex process for organization. It is not that east as
it looks like. This process includes different complex functions that help the organization to
take its business to the international level. There are different benefits of the globalization for
an organization which is conducting their operation from one country, in my opinion there
are many benefits of moving a business from local level to the international level. It allows
the business organization to serve more people at one time. It helps them to increase their
consumer base which is important to generate higher revenue. This process is also good for
the talent management in the organization. On the international level organization will be
able to find best suitable candidate from large range of options. Globalization create higher
chances of innovation and creativity. Globalization also increase the knowledge of the
company related to culture and society. The challenges on the international level also help the
organization to develop and implement new technology in process to get better performance
in global market. It also allows the company to learn international business trends that
provide better opportunities to company. I have also learned that there is huge impact of
globalization process on the business activities of the company. When organization conduct
the business from one country, it causes them extra expenses that increases the cost of their
product in international market. This is not good for their business. This problem can be
solved by the concept of globalization. By this process organization also get the opportunity
to learn the foreign culture that help them to perform business success fully in the other
countries also.
According to me by conducting business form different location minimize the chances

of complete failure. It prevent the financial and operational crisis in company which is
important to maintain continuity in business operations. The operations of company with
geographical diversity helps the company to arrange the resources on low cost which allows
that to earn high marginal profit. I have also evaluated that there are many challenges are
associated with the globalization process. For example job mobility is typical in the
globalization process. In globalization process organization also loses their cultural identity
and also they get deviated from their main objectives. To perform globalization, organization
need huge capital to make the process successful without any other consequences.
CONCLUSION
From the above study it has been summarized that, globalization helps in movement
of goods and services, products, knowledge, each and everything across the world in an
integrated manner. This study includes research methodology, questionnaire and reflection to
carry out particular subject matter. This study concludes that, globalization tends to have a
positiove influence on the growth and productivity of the business. Globalization is an
effectve factor which in turn drives business to the success. Offshoring of business results in
establishment of bsuiness in various market or countries. It has been concluded that, there is a
high degree of interrelationship between gloabl business and global politics.
RECOMMENDATION
From the above conduicted study it has been recommended that, company must
focus on effectively understanding the various culture and belief of the employees within
the organization before establishing business into the new market. Furthermore, it has been
recommended that, the company should carry out market reaserch in order to select the
right market for sustainably carrying out business in the future. Furthermore, it has been
recommended that, the company should comply with various set of government rules and
regulations of the country within which they are planning to expand their business. This
results in smooth functioning of the orgabnization in a legalized manner.

REFERENCES
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Online
The impact of Globalization & Offshoring. 2009. [ONLINE]. Available through:<

https://www.bridge-global.com/blog/impact-globalization-offshoring/ >