Benefits and Drawbacks of Global Business Environment: A Study on ASDA

RESEARCH
PROJECT

Table of Contents
CHAPTER 1: INTRODUCTION ...................................................................................................3
Overview of Research............................................................................................................3
Background of Research.........................................................................................................3
Rationale of Research.............................................................................................................3
Research Aim.........................................................................................................................3
Research Objectives...............................................................................................................4
Research Questions................................................................................................................4
CHAPTER 2: LITERATURE REVIEW.........................................................................................5
Benefits and drawbacks of globalisation on ASDA...............................................................5
Influence and impact of globalisation on ASDA...................................................................6
Different ways to overcome the challenges as well as to maximise the benefits of
globalisation for ASDA..........................................................................................................6
CHAPTER 3: RESEARCH METHODOLOGY.............................................................................8
Ethical considerations.............................................................................................................9
CHAPTER 4: DATA ANALYSIS AND INTERPRETATION ...................................................11
CHAPTER 5: DISCUSSION.........................................................................................................22
Benefits and challenges of globalisation on ASDA.............................................................22
Influence and impact of globalisation on ASDA.................................................................22
Different ways to overcome the challenges as well as to maximise the benefits of
globalisation for ASDA........................................................................................................23
CHAPTER 6: REFLECTION & RECOMMENDATION FOR ALTERNATIVE RESEARCH
METHODOLOGY........................................................................................................................24
Reflection.............................................................................................................................24
Alternative Research Methodology......................................................................................24
CONCLUSION..............................................................................................................................25
REFERENCES..............................................................................................................................26
APPENDICES...............................................................................................................................28

TOPIC: The benefits and drawbacks of a global business environment. A study on ASDA
in Leeds.
CHAPTER 1: INTRODUCTION
Overview of Research
Global business environment is explained as an environment in various independent
countries with the factors which endogenous to the home environment of company. It impacts on
the decision making on decision making on use of the resources and capabilities in an effective
manner. Global business environment is considered as sum total of all external factors which are
working on company as this goes about affairs in to domestic and foreign markets. Company
conduct its business globally because this gives the opportunities to company to expand in
international market and enhance profit level effectively (Alejandra Gonzalez-Perez, 2013).
Background of Research
Globalisation is a process by which company and other organisations can develop the
global influence to operate at the international scale. In this scenario, nations and countries
around world are interconnected for meeting needs lie internal and external. In addition to this,
global business environment develops the better opportunities for company in to less
industrialised countries to tap in large markets. ASDA is British multinational retailer and it was
founded in year 1949. Besides supermarkets, this company provides the some other services such
as mobile phone, financial services and many others (Axelrod and VanDeveer, 2014). At global
level, this company has large number of stores in 633 locations. This company believes in attain
competitive edge by hiring the well qualified or talented employees and treated them fairly.
Rationale of Research
Rationale behind conducting this research is to understand global business environment
concept in a detailed manner. It helps in enhancing the knowledge and the skill base of a learner
so that it can able to understand concepts and conduct activities of an investigation significantly.
In addition to this, investigator conduct research for its personal interest and also learn the ways
to conduct research effectively (Bailey and et al., 2018).

Research Aim
The present research is taken in to consideration on analyse benefits and drawbacks of
global business environment. It helps in provide the better understanding regarding advantages
and disadvantages of globalisation to a learner so that understanding can be enhanced.
Research Objectives
 To examine globalisation is associated with benefits and drawbacks of ASDA.
 To analyse the influence/impact of globalisation on ASDA.
 To recommend to overcome from the challenges and maximise the benefits of
globalisation for ASDA.
Research Questions
 How globalisation is associated with benefits and drawbacks of ASDA?
 What is the influence/impact of globalisation on ASDA?
 What are different ways to overcome from the challenges and maximise the benefits of
globalisation for ASDA?

CHAPTER 2: LITERATURE REVIEW
Benefits and drawbacks of globalisation on ASDA
According to the view point of Jim Woodruff (2018), Vibrant global trade environment
provides the advantages to all the participating parties. Under this, countries with the high level
of international trade have better economic system and have high level of living standards.
ASDA is an organisation which will conduct the business at global level as well as they gain
ample number of opportunities along with various issues. Some of the major benefits &
drawbacks of globalisation are going to be discussed as follows:
Benefits
Create jobs opportunities- ASDA enhance their exports in order to hire large number of
individuals for handling more and more workload. With the assistance of conducting the
business functions at global level, an organisation will be able to provide more and more job
opportunities to the individuals in order to enhance their standard of living. It can lead to demand
for the other goods and also maximise sales (Carneiro and Brenes, 2014).
Improving goodwill and reputation of the company- The business go worldwide in a
successful way and also market its offerings to various people which will enjoy prestige of
calling an international organisation. ASDA give the quality offerings in some another country
then it attracts people and they will be satisfied from the services of ASDA. It helps in enhance
reputation of company.
Drawbacks or issues
Issues related to marketing- As ASDA will conduct the business in to the other country
so it is not aware regarding other country marketing culture. This creates issue in conducting the
business globally. It can not able to establish the business and not target the new people for
enhancing its sales as well as profit level (Cohen and Kietzmann, 2014).
Currency rates- When setting the cost and also payment methods, fluctuation in currency
is more challenging to the problems related to global business to be navigate. The currency
fluctuation can impact on balance of the business profit and expenses.
Cultural as well as communication issues- According to this, better communication is
quite effective as well as beneficial in the international business strategy. Communicating across
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various culture is quite challenging for ASDA. In addition to this, developing the communication
and cross- cultural skills are main focus to conducting business globally (Cooke, 2012).
Influence and impact of globalisation on ASDA
According to the view point of David Sarokin (2019) global business is explained trade
of services, goods, technology and the capital at global level. The global business environment
consist of multinational elements such as political risk, exchange risk, taxation issues & cultural
differences. It has been identified that the impact of globalisation is both positive as well as
negative. Positive influence as well as impact of globalisation is that it creates ample number of
job opportunities which help them in enhancing the standard of living of individuals. Along with
this, it has also been said that one of the impact is that company can perform their business
functions in various countries which help them in order to gain profitability as well as goodwill
of the company. This will assist them in order to remain at the competitive marketplace for a
longer period of time. But on the other hand, it has been said that negative impact of
globalisation is that it requires huge amount of investment in order to conduct market research
before doing business functions. This might affect the overall profitability of the company at the
competitive marketplace. Influence and impact of globalisation might affect the overall image as
well as goodwill of the company. For expanding business at global level, multinational
organisations require to bridge the separate national marketing into single global marketplace.
International business environment is multidimensional that consisting political risks, exchanges
risks and taxation related issues. So, this is essential for company to consider all factors while
expanding the business globally.
Different ways to overcome the challenges as well as to maximise the benefits of globalisation
for ASDA
According to the point of view of Angel Gurría (2019) it has been identified that
conducting business functions at global market is quite challenging for the company as it is
unfamiliar with the external environment and might face some serious issues. In order to
overcome such issues, there is a requirement for ASDA in order to find effective ways (Crane
and Matten, 2016). Some different ways to overcome from global business environment
challenges mention below:
Conduct investigation on a regular basis- It is one of the better way to determine the
culture of other country, language barriers, people demand, needs, existing products and
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competitors. Mainly, these all factors impact on the business activities at international level. So,
from conducting research, ASDA can able to expand its business and focus on satisfying needs
of consumers for gaining the competitive benefits in an effective manner.
Mastering in the marketing function- Under this, learning is a better way for ASDA to
reach at consumers (Hitt, Ireland and Hoskisson, 2012). It will helps in establish consumer base
which is necessary to making business successful globally. In addition to this, transcreation helps
in adopt marketing content to foreign market.
Cultural Training sessions- When ASDA perform its business activities at the
international level, it face issue related to different culture. The employees of this company are
unaware about the culture of foreign country. So, there is a need to management to provide the
training to employees which are going to perform business in other countries. From the cultural
awareness, they can provide conduct the operations of business and deal with clients at global
level.
Aware about legal policies and legislations- In this, legislation of each country is differ
from other and from this an organisation face some issues. There is a need to management of
ASDA to focus on give knowledge to employees about the different legislations which are
adopted by the foreign country. Through applying these legislations in business, company can
conduct its operations effectively and gain competitive benefits at international level (Huhtala
and et. al., 2014).
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CHAPTER 3: RESEARCH METHODOLOGY
Research Methodology is explained as procedures which are used in order to know,
select, analyse relevant information about the chosen topic of the research. There are many
considerations regarding the research topic which are made (Kolk, 2016). The description of the
different techniques which are covered under research methodology is been provided as under:
Types of Investigation:
In this technique, the focus is made on systematic gathering of data for the completion of
the research project provided. So the methods of investigations are also further divided as such
Quantitative and Qualitative Investigation Method. In the following investigation, use of
Qualitative Method will be done as research will make its focus on providing the readers with
theoretical data and aspects of the research to provide them with better understanding and
knowledge.
Research Philosophy:
It refers to the technique with the help of which different types of data are gathered in
order to completion of research project effectively and this will also help in presenting better
results and accurate outcome in front of the readers as well. The philosophy which have been
applied in the research is Pragmatist through which an investigator can deep analysis of
information provided in the research could be done and along with this reasons will also be
provided to them for the statements provided in research (Mahmood and Hanafi, 2013).
Research Approach:
This term refers to the plan and process adopted through an investigator to carry out
research in the marketplace. There are many philosophical assumptions which are made by the
researcher in the research as to provide the research with right path and conduct research in
significant way. To complete this research, an investigator has made use of Inductive approach
as with major focus of an investigation is on qualitative method and the following approach is
also related with qualitative research.
Data Sampling:
Sampling refers to the process with the help of which some participants which are chosen
from more population in order to take the research to some end conclusion or result (Savrul,
Incekara and Sener, 2014). Various method of sampling but in the following research, the use of
Non Probabilistic Random Sampling has been done. In the following method of sampling,
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