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(Doc) The benefits and drawbacks of a global business environment

   

Added on  2021-01-01

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Research Project

Table of ContentsTitle: The benefits and drawbacks of a global business environment ............................................2INTRODUCTION...........................................................................................................................2LITERATURE REVIEW................................................................................................................5RESEARCH METHODOLOGY....................................................................................................6DATA ANALYSIS .....................................................................................................................9CONCLUSION AND RECOMMENDATION............................................................................18REFERENCES..............................................................................................................................20APENDIX......................................................................................................................................21

Title: The benefits and drawbacks of a global business environment INTRODUCTIONOverview and Background of study - Globalisation is the process of integration ofindividual, companies, government, peoples interact with each other at global scale. This is theconcept for organisation of expanding the business at international level for gaining more profitsand to enhance the productivity. Globalisation has raised many opportunities for theorganisations to increase their profitability by approaching maximum number of customers(Baars and et. al., 2016) . Along with the lots of benefits of global business environment, theyalso have the drawbacks from which the organisations get affected. The present research is basedon the company ZARA, which is a Spanish fast fashion retailer company in Arteixo, Galicia. Thecompany was incorporated on 24 May, 1974 by the founder Amancio Ortega and Rosalia Mera.The purpose of this research is to examine the benefits and drawbacks of global businessenvironment along with expanding the business at global scale. This research will emphasizes onthe aims and objectives, along with the literature review in which the opinions of differentauthors regarding the title is included.Background of company - Zara is the main brand of their parent organisation Inditexgroup, which is the world's largest apparel retailer company. The company offers the latestfashion brands of high quality with affordable prices. The company has over 2200 stores in 93countries. Zara started their business from a very small store, and in the present time it is reachedas the world's largest retailer company. The success of ZARA has increased the goodwill of theirfounder Amancio Ortega, as the 4th richest man in the world (Benería, Berik and Floro, 2015) .The present case study is about examine benefits and drawbacks of global business environmentwhich influence the functions and operations of business. By the concept of globalisation, Zaracan expand their business in international market and gain the maximum profits.Rationale of Study - The main purpose of conducting this research is that why the globalbusiness environment is so important for an organisation. Zara has to promote their business atglobal scale by using different sources such as social media, advertisement, etc. They can expandtheir business by using the concept of globalisation and by knowing the benefits and drawbacksof global business environment.

Significance of research - To gain more profits and to attract large number of customers,ZARA want to expand their business at global scale, On the other hand the research is importantbecause from this the researcher get the knowledge and where they are getting issue incompleting this project (Briscoe, Tarique and Schuler, 2012) . So, it is crucial for the company tofollow the concept of globalisation to achieve higher profits.Aim :“To evaluate advantages and disadvantages of global business environment for improvingbusiness growth of large scale company” A case study on Zara.Research Objectives :To understand concept of globalisation.To identify advantages and disadvantages of global business environment whichcontributes in growth of Zara.To analyse the role of globalisation in business growth of Zara.Research Questions :What do you mean by globalisation?What are the major advantages and disadvantages of global business environment whichcontributes in growth of Zara?What is the role of globalisation in business growth of Zara?Gantt Chart - This is a type of chart which represents the schedule of the entire project.This chart can be used for any type of project. The project manager track the progress of thewhole project. This chart is the graphical representation which clearly shows the relationshipbetween the present status and action (Cavusgil and Knight, 2015) .

LITERATURE REVIEWThe Literature review of a research can be defined as the published information or data ofan specific topic. This part combine the section of both brief and summary and use the particularorganisational structure. In this part of the research different authors have hared their differentviews in respect of the title mentioned above. This is the secondary method which does notrecord original and new research work.Concept of globalisation According to Crane (2013), Globalisation refers with the process for describingeconomic, social and political communication and interrelation in all over the world. Theconcept of globalisation will help the company to sell their products and services and satisfy theneeds and preferences of their customers. In today's time, the increasing population has impactedthe economy in both positive and negative way. Government has removed the barriers of trade in

order to encourage and motivate various companies in expanding their business at global scale.By the help of globalisation the company can gain the profitability and productivity of theirbusiness (Crane and et. al., 2014) . Drawbacks and benefits of global business environment which contributes in growth of Zara.According to Dr. Cairo, Globalisation is a complex web where the peoples areinterconnect with each other to expand the business at global scale, because there are manyvarious peoples with different culture. This will make easier of Zara to expand their business atglobal scale. There are some drawbacks and benefits, which are as follows -Benefits of Globalisation1.Better utilization of resources : By expanding the business company can gain maximumprofit and can buy the best resources and utilize it in an effective manner. Therefore, theorganisation gets benefits of large scale production, improvement in efficiency ofworkers and reduction in cost.2.Achievement of objective of profit – If a company expand their business in internationalmarket then they can gain more and more profit objectives. The global scale marketprovides the higher profits (Laszlo and Cescau, 2017) .3.Incentives from the government – Expansion of business in international market by Zaracan enhance the employment opportunity, thus government wants that more job for thepeoples so they provide incentives to those companies who expand their business atglobal scale. The incentives provided to Zara in a way of reduction in taxes, pre and postshipment finance, concession in custom duties, duties, duty withdrawal, etc. Drawbacks of globalisation1.Customer Needs – Zara have to analyse the needs and requirements of customers ofdifferent culture from various countries while expanding their business at global scale, sothis analysation creates difficulty in developing the products and services (Li and Zhou,2017) . 2.Competition – The major drawback of globalisation in the growth of Zara is that there aremany competitors who competes with Zara in the international market, so thiscompetition and these rivals can create many issues or problems for the organisation toexpand their business at global scale.

3.Unfair Trade – To exploiting the workers in underdeveloped countries can leads topunfair trade in their working condition. When the cost of products get reduces thencompany is providing the unhealthy working environment to the employees, which canbe dangerous towards the health of the staff members (Madhok and Keyhani, 2012) .Role of globalisation in business growth of Zara.The role of global business environment is to increase the growth of the business byincreasing their market share, Zara can enhance their business growth by producing the good incheap rate and selling their products at low cost. As customers have lots of substitute so they cango to another option if the prices are high of the products of Zara, and this will impact thebehaviours of the company as all customers want to buy goods which can be acquire quickly andin more efficient way (Rossati, 2017) . TheRole of Globalizationin Economic Development isthe increased interconnectedness among countries. As it is known that the international groupaction of national economies has such a profound effect,globalizationplays a important role indetermining the future of the world and success for the large companies by expanding theirbusiness in international market. RESEARCH METHODOLOGYResearch Methodology is the method that can be used for identifying, selecting andexamining the entire data related to the topic. In this part, the readers are permitted to examinethe validity and reliability of the research. This part is one of the most important section of thisresearch which studies of methods and techniques by exploiting the effective skill andknowledge in an effective manner (Schnall, Dobson and Landsbergis, 2016) . With this sectionmany problems related to research are sorted out in the better manner. This section of theresearch contain many parts such as approaches and philosophy of the research, data collectionand type of investigation. This part of the researcher helps the investigator to set the guidelineswhich help in managing the business functions and operations effectively.Research Philosophy - This is the belief which is used in collecting and gathering therelevant information and data for completing the project. There are two philosophy of researchnamed as interpretivism and positivism (Shahbaz and et. al., 2016) . In which positivism isdefined as the reality which is stable and determine from the objective point of view without anyinterference, this has the objectivity meaning and quantitative data. Apart from this,interpretivism is opposite of positivism, in which reality is constructed with the meanings created

by the individuals and their actions are the result of their own meaning and the interference isthat which can be understandable (Shenkar, Luo and Chi, 2014). There are some advantages ofpositivism research philosophy such as it cover wide range of situations as well as can be fastand economical. Along with this, disadvantages of same is that respective method tends to beflexible and artificial. It is not much assistive in generating theories. On the other hand,interpretivism also have several advantages such as numerous areas like cross-cultural, issues ofethics and so on can be studied in depth. Along with this, major disadvantages of interpretivismis related to its subjective nature. Research Approach - Research approach is the process which include the steps alongwith broad reasoning to talk about the methods of data collection, interpretation and analysis ofthe research. This includes two approaches which are named as inductive and deductive.Inductive approach is based on various types of theories which are applied and based on variousassumptions and models according to outcomes, in an inductive inference which is known aspremises are used to produce untested conclusions. On the other hand, in deductive approachwhen the premises are true then the conclusion should also be true, this approach includesnumerical facts which are evaluated on the basis of observation (Sheth, 2017) . In the following research, deductive approach is used as this is executed for gathering andcollecting relevant information and data. Along with this, it will help in explaining casualrelationship within concept and variables. Deductive approach also help in generating researchfindings to a certain extent. Type of investigation - The type of investigation part required the relevant informationand data for specific research so that the investigator can easily implement the methods fromwhich they can gain the advantages related to the process of research. The two types of researchmethods are as follows which named as qualitative and quantitative. In qualitative research,researcher gives preferences to human perception, their thoughts at the time of evaluatingentire research. This methods includes interviews, focus groups and observation in order toreach result (Stahl and et. al., 2012) . On the other hand, In Qualitative research, theinformation is examine on the basis of mathematical algorithm, numerical formulas, andcomputational techniques. This method gather the information by conducting opencommunication with the targeted audiences. In this present research report, qualitative research

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