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The Impact of Globalisation on the Corporate Structures of Large Multinational Companies

   

Added on  2021-02-21

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Research Project

Table of ContentsTOPIC .............................................................................................................................................1INTRODUCTION...........................................................................................................................1Research Aim ........................................................................................................................1Research Objective ................................................................................................................1Research Question .................................................................................................................2Rational of research ...............................................................................................................2LITERATURE REVIEW ...............................................................................................................2RESERACH METHODOLOGY ....................................................................................................5DATA ANALYSIS AND INTERPRETAIONS ............................................................................7REFELCTION & RECOMMENDATION FOR ALETRNATIVE RESRECHMETHODOLOGY .......................................................................................................................13Reflection ...........................................................................................................................13Recommendation for alternative research methodology .....................................................13CONCLUSION..............................................................................................................................13REFERENCES..............................................................................................................................14

TOPIC “The impact of globalisation on the corporate structures of large multinationalcompanies and the major challenges they face”- Case Study on Sainsbury INTRODUCTIONIn the last few decades, the concept of globalisation has become the main factor inbusiness. Globalisation is a process of integration and cooperation of different economies,companies and nation in worldwide. However, it influence positively and negatively overorganisation's productivity and profitability. The primal benefit which globalisation impose tocompanies is that greater free trade in less cost as they can expand their market share or size inany geographical region without any trade barriers. Along with this, establishment can acquirehighly talented and skilled personnel who makes an effort to contribute novel ideas to cope upwith current and emerging trend of marketplace for attaining sustainable proficiency ratio (Craneand et. al., 2019). Additionally, for obtaining best position among competing marketplace globalbusiness environment enable firm to make use of several innovative technologies that help themto improve its overall performance in an amended way. In regard of this report, Sainsbury hasbeen considered which is one of the well known and leading supermarket chain company withinUK market. In this project, it involves research aim, objective, review of literature, researchmethodology, analysis of data with interpretation. Finally, rendering appropriaterecommendation for developing better outcome for project in market. Research Aim “To study the influence and challenges of globalisation on corporate structure of largemultinational company” – Case Study on Sainsbury Research Objective To understand the concept of globalisation on large multinational companies. To identify the benefits of globalisation which Sainsbury come across during operatingits business function at global pace. To determine the challenges of global business environment which Sainsbury undergoeswhile functioning at international level. 1

Research Question What is the concept of globalisation on large multinational companies?What are the benefits of globalisation which Sainsbury come across during operating itsbusiness function at global pace? What are the challenges of global business environment which Sainsbury undergoeswhile functioning at international level? Rational of research The foremost reason behind considering this topic is to investigate the importance ofglobalisation over organisation during operating its functional areas at global level. In the currentscenario of marketplace, there is an intense level of competition which directly impact overestablishment decision making capability (Dwyer, 2015). By conducting this project, aninvestigator is able to determine the market current or emerging trend and according to thatimplement corrective course of action which benefit Sainsbury to gain competitive advantage inan improved mode. Another benefit which researcher acquire from this report is that improveoverall performance of study by gathering accurate and reliable information in order to bringauthentic project within market. LITERATURE REVIEW Concept of globalisation on large multinational companies. According to C. Rangarajan (2019) it is not easy to trace the changes indistribution of income within different countries that is globalization, which represents a bravenew world with no barriers. In other words, Globalisation comprises with the process ofintegration and interaction between people, group of people, organization and different nations ofgovernment in order to drive a business at international level (Concept of Globalisation, 2019).To expand a business there is need various resources which helps to perform business activitieseffectively. It is the integration of societies and economies that involves flows of information,goods, services, ideas, technologies, capital, finance and people who works within organizationto achieve the business objectives. It is important for multinational companies to focus onglobalisation so that they can enhance their productivity and profitability. Connectivity is theessence of globalisation which connects business with different countries. It is manifested in thegrowth of world trade as proportion of input and outputs which helps to focus on different2

business activities. Globalization is connected with economic, political and cultural integrationwhich helps organization to run their their business in different countries after integrating. Suchas after Brexit the trade policies and government policy has been changes which impacted onbusinesses or corporate structure negatively. The researcher has analysed that organization should follows different policies andstandard of different countries in order to become a multinational company can helps to achievethe business objectives effectively. In context to Sainsbury, globalisation is the ability whichhelps to communicate and move with other world so that it can expand its business bymaintaining relationship. To become a multinational at large scale it is important for organizationto create a good relation with other country and world that can attracts customers andencourages them to buy a products. The researcher said that organization need to analysis theneeds of other country and then provide products and services accordingly, that can help tobecome a large multinational company at global level (Epstein, 2018). All companies who wantsto become a multinational company by integrating with other need to focus on targets and makeefforts to attracts people that can help to complete objectives. Such concept has adopted by manycountries for the purpose of getting success and growth in competitive business environment. Benefits of globalisation which Sainsbury come across during operating its business function atglobal pace. As per opinion of Fredrik Erixon (2019), Globalisation is beneficial fororganization as well as countries which helps boost the output in western economy by increasingthe intensity of research and development. It become easy for new company to compete with oldorganization by providing better quality of products and services. The main benefits ofglobalisation is to increase the household income by reducing high inflation rates in othereconomy. It helps businesses and people to interconnect with sources like global finance,transportation, media and capital to set up a business in other country and gain higher growth.Globalisation provides different opportunities to business concern and countries by improvingthe quality of products which attarcts customers and sustain a business at higher level (Benefitsof globalisation, 2019). In regard to Sainsbury Globalisation helped such business organizationto gain higher growth and sustainable development by enhancing business activities in othercountries. Researcher said that globalisation is targeting Sainsbury's targeted new customers whoare curious towards its products and services. With the help of this customer get connected with3

respective company that helps to improve the economical standard of country as well as livingstandard of people. It also helped to increase the gender discrimination which was running indifferent countries. The employment opportunities has been created by integration of countriesthat helped Sainsbury to increase the business activities and continuous development. Moreover,it helps to improve the working condition, political system and quality management inSainsbury. The management are getting continuously advantages by running a business atinternational level and maintain the profitability (Halkias, Davvetas and Diamantopoulos, 2016).Globalisation is also benefited to achieve the business goals by using new technology that helpedSainsbury to face beat the competition in result operating business successfully at multinationallevel. Challenges of global business environment which Sainsbury undergoes while functioning atinternational level. According to Katie Reynolds (2017), Globalisation is not impact positively on businessorganization even it impacts negatively due to having some reasons. It become a challenges fororganisation as well as countries to adopt new trade policy and different taste of person in orderto run a multinational organization. In context to Sainsbury, the business of such company hasbeen impacted in which it has faced many challenges that are as explained: International company structure - The main aim of Sainsbury is to be competitiveglobally by having a effective team and well location to set a business. The structure of companyis depend on size, brand, nationality, industry and products which became a challenge forSainsbury to manage business activities at international level (Challenges of global businessenvironment, 2017). Foreign laws and regulation - This is another challenge for organization which needs tobe understand laws and regulation of that country in which organization is going to run abusiness. So it may be a challenge for Sainsbury to follow foreign laws and regulation in order toset a business at international level. International accounting - Accounting principle and standards are different in othercountries which is more crucial for organization to accept them. It can be a challenge formultinational businesses that who will be liable for corporation tax across the boundaries.Therefore, it can impacts negatively Sainsbury's businesses to minimize the revenues by payingtax liability (Hirst, Thompson and Bromley, 2015). 4

Communication difficulties and cultural difference - Proper and good communicationis the integral part of international business strategy that can be a real challenge for organization.There are different language and culture in other countries which is difficult to understand bySainsbury's management that creates problems. For instance, cultural and language difference inmany countries reduces the market demand for Sainsburty's products which can reduce sale ofbusiness organization. RESERACH METHODOLOGY Research method comprises a systematic plan which is conducted by researcher in orderto know and get information about particular search. It involves two approaches qualitative andquantitative which helps to gather the information. Quantitative research provides information infigures, counts, by creating statical model, and observing others. Where as qualitative method isprovides information by involving detailed description of observation, context of events andcircumstances. Moreover, qualitative research is concerned with human behaviour and reactionways that helps to make correct decisions. Research philosophy: It can be consider as beliefs in which data of particular topicshould be gather, used and analysed by researcher in order to run a business successfully. Thisphilosophy involves various information about a particular project and make efforts to completethen in effective manner. However, in context of this project, researcher utilises the same as ithelp them to acquire relevant and accurate information in order to produce authentic report in animproved way (Jabeen, Faisal And Katsioloudes, 2017). Research Choice: It is a relative term that is used by responsible researcher or businessconcern to collect the information by dedications. Such method make sure that all collectedinformation are according to choice and accurate which can help Sainsbury to increase itsbusiness activities by integrating with other countries. However, in context to such project,researcher make sure that research is according to choice and assessable which can help tocomplete targets. Data Collection: It is the process of gathering and measuring information on targetedvariables. The main object is to collect the information in order to enhance the business processthat can help to achieve goals. In other words, researcher gather information from variousrelevant sources and get the answer of research problems. Such method is divided in to twocategories that are as explained: 5

Primary data collection method - This means data is collected at first hand inoriginal nature. The researcher collect the information or fresh data in the case ofunique research. Such research is more effective which helps Sainsbury to set up abusiness in different countries by gathering information about interest of peopleand products. In regard of this report, an investigator applies the primary methodby preparing questionnaire which help them to get suitable information about theenhancement of Sainsbury. Secondary data collection method - When information is collected by some onefor their research work is consider as secondary data. It is not fresh data becauseresearcher has already passed through statical analysis which can help to completeobjects in less time (Kerzner, 2017). The main advantage of such method is lessexpensive and less time consuming research which can help to maintain abusiness. In context to this report, a researcher has adopted this method byobserving others that helped to get relevant information for the purpose ofcompleting research. Research Ethics - This is the set of principles world wide that involves interactionbetween researcher and other human in order to gather the professional and authenticinformation. It can help other companies to follow the governed principles and run a run abusiness successfully. The main object is to protect the human participants from unfair tradepractices. By applying this method researcher gather information about new principles aboutinternational business which helped Sainsbury to enhance their business globally. Data collection technique - Different techniques are used by research or organization inorder to collect the information. Techniques such as primary and secondary which helps businessconcern to collect correct information and make further business decisions. The explanation ofdata collection technique is defined as: Interviews - It is primary data collection technique which helps to get theinformation through a interview process. In this technique researcher asks manyquestion from respondents in order to collect fresh data. In context to this project,researcher has asked different question from public that helps to know about whatpeople wants and and how it can increase business at international level.Therefore, it is effective technique to collect the relevant and correct information. 6

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