The benefits and drawbacks of a global business environment

Research Project on
the Theme of
Globalisation

Table of Contents
TITLE: “The benefits and drawbacks of a global business environment”. ...................................1
INTRODUCTION...........................................................................................................................1
Research Overview.....................................................................................................................1
Background of business concern.................................................................................................1
Rationale of study.......................................................................................................................2
Aim of Research..........................................................................................................................2
Objectives of Research ...............................................................................................................2
Investigation Questions...............................................................................................................2
LITERATURE REVIEW................................................................................................................2
RESEARCH METHODOLOGY.....................................................................................................6
Research Philosophy...................................................................................................................6
Research Approach.....................................................................................................................7
Research Choice..........................................................................................................................7
Time horizon...............................................................................................................................7
Data sources................................................................................................................................8
Research sampling......................................................................................................................8
Research Ethics...........................................................................................................................8
Research limitations....................................................................................................................8
Research reliability and validity..................................................................................................9
Research Budget.........................................................................................................................9
DATA ANALYSIS AND INTERPRETATIONS...........................................................................9
CONCLUSION, REFLECTION & RECOMMENDATION........................................................22
Conclusion & Recommendation...............................................................................................22
Recommendation......................................................................................................................23
Reflection..................................................................................................................................24
REFERENCES..............................................................................................................................25

TITLE: “The benefits and drawbacks of a global business environment”.
INTRODUCTION
Research Overview
Global business environment is explained as surroundings within various sovereign
countries. It is divided within two i.e., external and internal out of which external environment
comprises of social, public perceptions, political, tax, socio cultural, competition, legal,
economic, regulation addition to many more. On the other hand, Internal business environment
involve elements those are within the organisations such as management, current employees and
so on. When an organisation expand their business at global level it is important for them to
analyse overall environment is effective manner by utilising several tools (Gutierrez, Boukrami
and Lumsden, 2015). Because there are benefits and drawback for an business firm which they
face while expanding business globally. Thus, this research will help in identifying benefits
together with disadvantages associated with global business environment along with their
consequence on company who expand business.
Background of business concern
H&M is a swedish organisation who are operating this organisation all over the world
this organisation is having online and offline clothing stores and they provide clothes for men,
woman and children . H&M associated with 82 counties in world wide and they are operating
almost 4500 stores and around 132000 employees are working for this company .H&M
providing online services through mobile app and website and 33 counties can access this
website and application online. A biggest achievement for company is that they are 2 largest
retailer in all over the world.
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Rationale of study
Importance behind conducting this investigation is to understand the thought of global
business environment. In addition to this everything have their several benefits addition to
drawback same as global business environment also have. This research will help in identifying
some major benefits along with shortfalls that global business environment posses on the
activities and operation of H&M. Although, benefits and disadvantage which company will face
within global business environment going to be discuss within it.
Aim of Research
RESEARCH AIm To identify the benefits and drawbacks of global business environment on
business success of multinational organisation. A case study on H&M.
Objectives of Research
 To develop basic idea about the Phenomena of global business environment.
 To determine the role of global business environment in operation of H&M.
 To identify major benefits and drawbacks of global business environment on business
success of H&M.
Investigation Questions
 What are the ways to develop basic idea about the Phenomena of global business
environment?
 What are the role of global business environment in operation of H&M?
 What are the major benefits and drawbacks of global business environment on business
success of H&M?
LITERATURE REVIEW
Literature review is considered as crucial portion of research because it helps the research
worker to analysis information in accurate manner. Main purpose of this section is to identifying
gap and conflict in previous study. Herein, each objectives or questions of research will be
address by the researcher.
To develop basic idea in context to Phenomena of global business environment.
As per the opinion of Shawn Grimsley, 2018, business environment is said to the
aggregation of intrinsic as well as extrinsic factors directly effecting organisational performance.
For instance, regulation of health together with safety is classified as an extrinsic component
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whose outcomes are analysed on influencing internal environment of business activities as well
as operations. In addition, business environment introduces as the combination of factors
pertaining in inside and outside boundaries having influence on operating situations of an
administrative system. Certain factors associated with business environment includes clients,
suppliers, legislation and government activities, social and economic trends etc.
According to the (Crane, Matten and Spence, 2019) global business environment is
explained as the surroundings in different countries, with contrary number of factors that
exogenous to the domestic company environment. This externally influence decision making
process of employees while identifying resource use addition to capabilities. Along with this,
global business environment is characterised into the internal environment together with external
environment. In addition, factors with external environment are the legal, cultural, tax, political,
economic, technological as well as social environments. Along with this, internal environment
introduces as a company specific and includes employees, owners, materials, machines etc. All
these are main factors that directly influence on business operations of an organisation at internal
level.
To determine the role global business environment have on H&M operation
From the view point of Jim Woodruff, 2018, global business environment played more
effective role in improvement of business operations of H&M. Global business environment
helps H&M by easier cash-flow management, increasing its revenues, benefiting from currency
exchange, benefiting from currency exchange, decreasing competitions, longer commodity
lifespan, better risk management, disposal of surplus goods, access to export financing,
enhancing reputation etc. All these are main roles played by global business environment. As
these are support Swedish multinational clothing-retail company (H&M) by improving its
operations in the production of goods or service at international level. Along with this, the
procedures concerned with global business environment plays essential role in H&M as well as
improving its business operations together with attaining better outputs within given time
duration. Other than this, lean production is a method that is primarily designed for minimising
material wastages together with managing labours efforts so to maintain production levels. It also
plays important role on operations of H&M as it improves production efficiency, product quality,
reduces wastages addition to enhancing quantities of production level. The managers of the
business concern applied the concept from developing ideas to distributing final manufactured
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product. Such concept helps in cutting various costs addition to making practices efficient
together with responsive towards fulfilling market needs. If managers of H&M adopts the
approach of lean manufacturing then they will experience benefits in improving employee
efficiencies, satisfying personnels, better adaptability of innovations, effectively responding
demand fluctuations, fewer delays together with total productivity improvements.
As per the thoughts of Carol Woods, he described globalisation as certain global
changes where an entity have to perform their key function within the self contained national
boundaries so to move towards practising at international level. In other words, when there is
liberal movement of commodities, services addition to people so to access people receding in
other nations is termed as globalisation. This is very important as it will benefit managers of
H&M company to accomplish huge financial gains addition to profitability by enhancing shares
of market by practising at international level. H&M Firm has main goal to capture local addition
to international customers globally.
To identify major benefits with short falls of global business environment on business success of
H&M.
According to the (Quarshie, Salmi and Leuschner, 2016) certain advantages related to
global business environment comprises identification of threats, assist in accomplishing
objectives, happenings in the marketplace, threats inherent in any opportunity, increased sales
opportunities and hence forth. The described ones are consider biggest advantages in context to
global business environment and assist an organisation to achieve better results within given time
duration. In contrary, there are some drawbacks related to global business environment such as
lack of forewarning of unforeseen events, no Assurance as to Organization Effectiveness,
absence of strategic approach, no fully reliability and so forth. The mentioned ones are main
limitations pertaining with global business environment and negatively impact on success of
H&M. In addition, the concept helps an organisation by improving its brand image together with
goodwill in competitive market as well as in mindset of targetted customer. It will further
support the firm to maximise customers base and also support them to achieve competitive
benefits within set duration. Apart from this, global business environment is mainly
recommended on towards rising capital which implies integration of domestic together with
national economic system towards international level. Moreover, It is said as combination of
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