Benefits and Drawbacks of Global Business Environment on TESCO

This research study analyzes the benefits and drawbacks of the global business environment on TESCO, a British retailer. It explores the concept of globalisation, measures the impact on TESCO's performance, and recommends strategies to overcome drawbacks. The research methodology includes a literature review, data analysis, and recommendations.

Research Project

Table of Contents
Research Topic:...............................................................................................................................1
“To analyse benefits and drawbacks of global business environment”. A study conducted on
TESCO.............................................................................................................................................1
A) Introduction.................................................................................................................................1
A.1) Background of project....................................................................................................1
A.2) Rational for research......................................................................................................1
A.3) Aims and objective.........................................................................................................1
A.4) Research questions.........................................................................................................2
A.5) Research Ethics..............................................................................................................2
B) Literature Review........................................................................................................................2
B.1) To understand the concept of globalisation and global business environment..............3
B.2) To measure benefits and drawbacks of global business environment for TESCO........3
B.3) To ascertain impact of global operations on business performance of TESCO.............4
B.4) To recommend the ways through which TESCO can overcome drawbacks of global
business environment.............................................................................................................4
C) Research methodology................................................................................................................5
C.1) Research Philosophy......................................................................................................5
C.2) Research approach..........................................................................................................5
C.3) Research method............................................................................................................5
C.4) Activities and timeline....................................................................................................6
C.5) Source of data collection................................................................................................6
C.6) Sampling method and questionnaire..............................................................................7
D) Data analysis and Interpretations................................................................................................9
D.1) Interpretation of questionnaire.......................................................................................9
D.2) Interpretation of Interview questions...........................................................................14
E) Research outcomes....................................................................................................................15

Covered in PPT.....................................................................................................................15
F) Reflection and recommendations..............................................................................................15
F.1) Reflection......................................................................................................................15
F.2) Recommendations for alternative research methodology.............................................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

Research Topic:
“To analyse benefits and drawbacks of global business
environment”. A study conducted on TESCO.
A) Introduction
A.1) Background of project
Globalisation is a process that has increased integration and connection among nations and
economies at international level which has made transfer and exchange of goods, services,
information technology, employment, etc more easy across various locations of world. Thus, the
concept of globalisation or global business environment has created many benefits as well a
some drawbacks for an international organisation (Michie, 2019). TESCO is also an international
British groceries and general merchandise retailer having its headquarter in Hertfordshire,
England, UK. Tesco is having a large number of branches and stores across the world that
includes different locations of United Kingdom, Ireland, Malaysia, India, Thailand, Slovak
Republic, Czech Republic ,Hungary, Poland and many other countries. Thus, the following
research is conducted on Tesco Plc to evaluate the possible and expected benefits and drawbacks
lead by the global business environment on performance and business operation of an
international organisation.
A.2) Rational for research
The rationale and justification for selection of this research topic includes the fact that
globalisation has bringing significant level of changes and creating impact on business
operations and performance of an organisation. Thus, conducting research on benefits and
drawbacks facilitated by global business environment is important and helpful in enhancing
knowledge and understanding about this crucial concept. Further, the selection of this research
topic is viable and also suitable for academic and educational purpose of researcher and also
provides a base and framework for other investigation and scholars.
A.3) Aims and objective
The aim this research is, “To analyse benefits and drawbacks of global business
environment for business which mainly operates globally”.
Research objectives
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The main objectives and targets for accomplish and conducting this research on Tesco plc
is stated below:
 To understand the concept of globalisation and global business environment.
 To measure benefits and drawbacks of global business environment for TESCO.
 To ascertain impact of global operations on business performance of TESCO (Perraton,
2019).
 To recommend the ways through which TESCO can overcome drawbacks of global
business environment.
A.4) Research questions
 What is the concept of globalisation and global business environment?
 What are major benefits and drawbacks of global business environment for TESCO?
 What are impacts of global operations on business performance of TESCO?
 What are different ways by which TESCO can overtakes drawbacks of global business
environment?
A.5) Research Ethics
It basically represents the principles and ethical values associated with a researcher in
order to maintain the viability and morale in investigation. All possible efforts are made by
researcher to fulfil its ethical consideration to ensure that none of the research activity should
hurt or harm any person neither physically nor emotionally. To ensure fulfilment of ethical
consideration an approval or consent is taken from all participants in written form through
signing a consent form. Further, all code of conduct and provision of data protection act is also
made to ensure confidentiality and safety of collected data.
B) Literature Review
It is that part of a research that includes discussion about selected research topic on the
basis of survey and review of various published and authorised articles, journal and other forms
of literature (Ball, Junemann and Santori, 2017). Literature reviews is basically a comprehensive
description or summary of various articles that are review to collect better understanding and
information about research topic thus, provide a base and support for further research work. The
current literature review is based on the topic of global business environment and its objective a
description of which is provided below:
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B.1) To understand the concept of globalisation and global business environment
According to the view point of Sammy Collins, 2019, Globalization is a concept that leads
to free movement of goods, services and people across the boundaries of domestic nation and
world in a more seamless and integrated manner. The concept of globalisation is also associated
with liberalisation of rules and procedures by various countries that has permitted the free flow
and smooth movement of people from country to another country. Further, globalization has also
resulted in freeing up and allowing the unproductive sectors of an economy to investment and
support the productive sectors so that the things produced in large quantity can be exported to
related activities resulting in a better situation for the economies of the world through enhancing
the interdependence and better connectivity. Thus, it can be evaluated that Globalisation is
mainly a concept which has lead to more integration, connection and interdependency among
different nations and economics of world thus, created better opportunity for business
organisation and companies to expand and operate their business operations at different nations
that are far beyond the boundaries of their domestic nation (Bayne, 2019). Further, it can also be
analysed that globalisation has enhanced the scope and widen the area of business environment
through facilitating an easy reach and connection with global environment that ultimately
increase the market share and customer base of an organisation.
B.2) To measure benefits and drawbacks of global business environment for TESCO
As per the opinion of Mike Collins, 2015, there are various pros and cons associated with
globalisation creating various benefits and drawbacks for an international organisation. The pros
or benefits of Globalisation or global business environment includes the fact the it lead to a
reduction in various trade barriers like, tariffs, taxes, etc that ensures better expansion
opportunity for an organisation to operate more successfully at global level. Further, an
integrated global business environment promotes better economy growth and also leads to
creation of creation of new jobs, assess to better technology and a wider market area for
companies. On the other hand, the cons or drawbacks of globalisation are associated with
increased level of competition and higher operating and administration cost to meet the expenses
of working at global level.
Thus, on the basis of above discussion it can be evaluated that globalisation has facilitates
both benefits and also created certain drawbacks and threats for Tesco company. The drawbacks
lead by global business environment are associated with the increase the number of competitors
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that has reduced the profit margin and success level of Tesco and created a pressure on this
organisation to come up with some new and more innovative ideas to face the competition that
lead to increase in operating cost (Bende-Nabende, 2017). The benefits lead by global business
environment in context of Tesco includes the fact that it has enhanced the market area and
customer base for Tesco through creating an opportunity for expansion of operation at larger
global market. Further, global business environment also provides assess and reach to new and
more innovative and advance technology use of which ensure more productivity and efficiency
in business operation of Tesco thus, facilitates improvement in overall profitability and
productivity of organisation.
B.3) To ascertain impact of global operations on business performance of TESCO.
According to the view point of Ravi Bhati, 2020, operating at global level create
significant impact on business performance of an organisation as it enhance its target market and
also improve the efficiency of its operation through providing access to better and more
innovative technology. The advent and concept of globalisation and global operation has
changed the way in which an organisation perform its day to day operation as it lead to change in
planning strategy, leadership strategy and also creed change in its structure. It becomes essential
for organisation to make use of more decentralised planning strategy to keep a control and
coordination among all branches located at several locations across world. Further use of
divisional stricture is also adopted by companies like Tesco to work more efficiently at global
level (Lawrence and Almas, 2018). Thus, global operations has created significant impact on
performance of Tesco through emphasising more on better communication channel to maintain a
balance on global environment. Further, it can be evaluated that many opportunities, like wider
market and better technology is also facilitated by global operation that has created a positive
impact on performance of Tesco through enhancing its productivity and market reach.
B.4) To recommend the ways through which TESCO can overcome drawbacks of global
business environment
It has been evaluated that various drawbacks and consequences are created by global
business environment like increase in competition level together with high operation and
administration cost. Thus, it become essential for organisation to look up for the ways and
strategies that are helpful in overcoming and encountering theses drawbacks of global business
environment. As per the opinion of Skip Prichard, 2016, the ways that can be adopted by an
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organisation to encounter drawback of global business environment includes improvement and
delivering better quality product which are unique and superior to the product offered by
competitors at international level. Further, to cope with the issue of high operating and
administration cost, use of more effective business technology and advancement can be made by
Tesco to improve the efficiency of its business and it also lead to reduction in wasteful activities
thus, improve the overall profit level of organisation. Beside this, use of more effective
communication channel and leadership style can also be made by Tesco to improve morale and
provide better guidance to its employees that makes them able to encounter and overcome the
issue of globalisation.
C) Research methodology
C.1) Research Philosophy
There are two main types of research philosophy which are explained below:
Positivism- This type of philosophy is associated with observing and predicating research
outcome and facilitates more scientific and practical philosophy for research.
Interpretivism- This reserch philosophy provides rich insight and more subjective data for
investigation (Psimmenos, 2018).
For current research work use of Positivism research philosophy is made as it provide a
highly structured and scientific method of conduction of a research in more effective manner.
C.2) Research approach
The two main type of research approach are as follows:
Deductive- It is associated with selecting and developing hypotheses for research theory
thus, mainly emphasis on testing a theory and analysing collected data on the basis of this theory
(Colander, 2017).
Inductive- This research approach is concerned with generation and creating a new theory
thus, it is more complex and time consuming.
For current investigation use if deductive research approach is made as it facilitates better
support firm theories and lead to a more specific and effective conclusion.
C.3) Research method
The two main type of research method or study that are used while conducting an
investigation are as follows:
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Qualitative- It is associated with collection of in-depth and more detailed information in
theoretical form that provide better insight about attitude and behaviour of respondents (Scrinzi,
2017).
Quantitative- This research method is associated with gathering data in form of numeric
term that can be easily presented in form of tables and charts and provide more specific and
attractive presentation of research findings.
Use of both qualitative and quantitative research method are made for current investigation
as qualitative provide better insight in perceptive of respondents while quantitative ensures
effective presentation of research findings. Use of questionnaire is made to gather information
from quantitative research method while interview is used for collection of qualitative data.
C.4) Activities and timeline
There are various activities associated with a research thus, use of Gantt chart is made for
current research that is providing information about various activities in a more systematic way.
Thus, use of Gantt chart ensures clarity and transparency in research work that lead to timely
completion of investigation without any chaos and confusion (von Furstenberg, 2017).
C.5) Source of data collection
There are two main sources of data collection i.e. primary and secondary. Use of both
sources of data collection is made for current research as primary sources provide first had data
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while secondary facilitates support for this data. Primary data is collected trough questionnaire
and interview while secondary data is gathered firm online article and journal.
C.6) Sampling method and questionnaire
Sampling is basically a process that is used by an investigator to enhance viability and
efficiency of its researcher work. This process of sampling involves selection of a pre determined
number of units and observations form a larger population for purpose of evaluation on the basis
of some features and characteristics (Michie, 2017). Thus, minimize the time and cost required
for analysis of vast population. For current research work a sample size of 20 respondents is
selected form the employees of Tesco through making use of random sampling that reduce the
chance of biasness and favouritism from research work thus, enhance viability and authenticity
of investigation.
Questionnaire- It is basically a written document used for collection of data through survey
method that consists a set of questions to evaluate and analysis the perspective and behaviour of
respondents (Apel, 2017). Use of below stated questionnaire is made to collect data from 40
respondents selected form employees of Tesco on the topic of globalisation and global business
environment.
Questionnaire
Q1) Do you having any perspective or knowledge about the concept of globalisation and
global business environment?
a) Yes
b) No
Q2) What are major benefits and advantages that are lead by global business environment
for TESCO?
a) Enhance productivity
b) Wider target market and expansion opportunity
c) Reach to efficient technology
d) Availability of cheap labour
Q3) What are major drawbacks that are associated with global business environment for
TESCO?
a) Larger number of competitors
b) Enhancement in operation cost
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c) More complex communication
Q4) What overall implications is lead by operating in global business environment and
globalisation on the performance and success level of Tesco?
a) Positive
b) Negative
c) Neutral
Q5) Do you agree with the fact that leadership and management plays crucial role in
managing and coordinating various activities and staff of an organisation while operating
at global level?
a) Agree
b) Disagree
Q6) What are different ways by which TESCO can overtakes and encounter the drawbacks
of global business environment?
a) Providing unique and better quality product
b) Effective communication
c) Use of more advanced and efficient technology
d) Effective management and leadership approach
Q7) Are you having any further recommendations and suggestions for Tesco to work more
effectively at global and to overcome its drawback?
Interview- It is basically a method of data collection that is used under qualitative method to
collect more in-depth and better perspective of respondents on a particular topic. Interview is a
form of two way communication where the researcher or other interview asks questions directly
from respondents to collect information from them (Scholte, 2018). A sample size of 5
respondents is selected from managers of Tesco to collect information by making use of
following questions.
Interview questions
Q1) What are the possible impacts of global operations on the business performance of TESCO?
Q2) How leaders and mangers of Tesco plays crucial role in coordinating and organising various
business activities and workforce of Tesco at global level?
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D) Data analysis and Interpretations
D.1) Interpretation of questionnaire
Theme 1: Knowledge about the concept of globalisation and global business environment
Q1) Do you having any perspective or knowledge about the concept
of globalisation and global business environment?
Frequency
a) Yes 18
b) No 2
Interpretation
Maximum number of employees of Tesco are having perception or knowledge about the
concept of globalisation and global business environment as 18 out of 20 are having awareness
about this while only 2 individuals are there who are not aware with this.
Theme 2: Major benefits and advantages that are lead by global business environment
Q2) What are major benefits and advantages that are lead by global
business environment for TESCO?
Frequency
a) Enhance productivity 4
b) Wider target market and expansion opportunity 8
c) Reach to efficient technology 5
d) Availability of cheap labour 3
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Interpretation
Many advantages are lead by globalisation and operating at global business environment as
the above diagram is depicting that 4 respondents believe that enhancement in productivity is
lead by globalisation while 8 participants are in favour of wider target market and expansion
opportunity as its benefit. Further, 5 participants believes that reach to efficient technology is a
positive outcome of operating at global business environment while 3 supports availability of
cheap labour as the biggest benefit of globalisation.
Theme 3: Major drawbacks that are associated with global business environment
Q3) What are major drawbacks that are associated with global
business environment for TESCO?
Frequency
a) Larger number of competitors 9
b) Enhancement in operation cost 5
c) More complex communication 6
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Interpretation
The above pie chart is depicting information about the drawbacks and negative implication
of global business environment. It can be evaluated that 9 participants’ believes that larger
number of competitors is a major drawback of globalisation, while 5 are having a view point that
enhancement in operation cost is a major issue lead by operating at global environment. Beside
this, 6 participants are also there who are in support of more complex communication as one of
the most major drawback associated with global business environment.
Theme 4: Implications lead by operating in global business environment and globalisation
on the performance and success
Q4) What overall implications is lead by operating in global business
environment and globalisation on the performance and success level
of Tesco?
Frequency
a) Positive 11
b) Negative 4
c) Neutral 5
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Interpretation
In accordance with the above picture it can be analysed that 11 respondents believes that
positive implications is lead by operating in global business environment and globalisation on
the performance and success level of Tesco while 4 are in favour of its negative implications.
Beside this, 5 respondents are also there who are in support of neutral implications of global
business environment and globalisation on the performance and success level of Tesco.
Theme 5: Leadership and management plays crucial role in managing and coordinating
various activities and staff of an organisation while operating at global level
Q5) Do you agree with the fact that leadership and management
plays crucial role in managing and coordinating various activities
and staff of an organisation while operating at global level?
Frequency
a) Agree 15
b) Disagree 5
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Interpretation
15 respondents has support the fact and agreed with the statement that leadership and
management plays crucial role in managing and coordinating various activities and staff of an
organisation while operating at global level where as 5 respondents are also there who disagreed
with above stated them.
Theme 6: Different ways by which TESCO can overtakes and encounter the drawbacks of
global business environment
Q6) What are different ways by which TESCO can overtakes and
encounter the drawbacks of global business environment?
Frequency
a) Providing unique and better quality product 7
b) Effective communication 4
c) Use of more advanced and efficient technology 5
d) Effective management and leadership approach 4
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Interpretation
There are various ways to effectively operate at global level and to overcome the drawbacks
of globalisation. 7 participants has supported providing unique and better quality product as an
effective ways by which TESCO can overtakes and encounter the drawbacks of global business
environment while 4 are in support if effective communication. Further, 5 respondents are in
favour of use of more advanced and efficient technology as an effective way by which TESCO
can overtakes and encounter the drawbacks of global business environment where as 4
individuals are in support of effective management and leaderships approach to overcome the
issue of globalisation.
D.2) Interpretation of Interview questions
Theme 1: Possible impacts of global operations on the business performance of TESCO
Interpretation
In accordance with the view point of maximum number of mangers of Tesco it can be evaluated
that the possible impacts of global operations on business performance of Tesco includes wider
customer base that enhance its productivity and also lead to more profits. Further, a shift to use
of more efficient and better technology is also lead by globalisation that has improved the
efficiency and business performance of Tesco.
Theme 2: Crucial role of leaders and mangers of Tesco in coordinating and organising various
business activities and workforce of Tesco at global level
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Interpretation
It has been evaluated from the evaluation of perspective of managers of Tesco that leaders and
mangers plays a crucial role in coordinating and organising various business activities and
workforce of Tesco at global level through providing regular training and motivation to staff
which lead to enhancement in their performance and efficiency.
E) Research outcomes
Covered in PPT
F) Reflection and recommendations
F.1) Reflection
The current research work is very informative and useful for me as it enhanced my
knowledge and understanding about various aspects of globalisation and conducting an
investigation. Use of both primary and secondary source of data collection was made by me that
has enhanced my communication skills and information about global business environment,
Further, use of both qualitative and quantitative research method are made to ensure proper and
timely completion of work. Many issues associated with ethical consideration and management
of time and resources are made by me which were timely identified and resolved. To solve the
issue of lack of time and resources use of Gantt chart was made by me. To fulfil ethical
considerations proper consent was also obtained by me from all respondents. Thus, this research
has lead to development of my overall skills and competencies therefore, facilitated enhanced
opportunities for me in future.
F.2) Recommendations for alternative research methodology
The alternative methods that can be recommended for conducting a research and
investigation includes use of Interpretivism philosophy and inductive approach that ensures
more insight and detailed investigation but use of these research philosophy and approach are
more complex and time consuming. Further, use of work breakdown structure is also
recommended as it ensures better division and bifurcation of work among team members.
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CONCLUSION
It can be concluded from above research work that globalisation is a crucial concept that
facilitates both benefits and drawback for an organisation. The benefits and positive impact
created by global business environment include increase in productivity through wider target
market and better expansion opportunity. Beside this, enhancement in competition level and
higher administration and operation cost are the main disadvantages lead by globalisation. At last
it can be summarised that use of participative leadership and management along with improved
quality product facilitates an effective way to overcome drawback of globalisation along with
implication of effective communication and more efficient use of technology.
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