Impact of Globalisation on Trade of Vodafone PLC

Research
Project

Table of Contents
CHAPTER 1: INTRODUCTION....................................................................................................1
CHAPTER 2: LITERATURE REVIEW ........................................................................................3
CHAPTER 3: RESEARCH METHODOLOGY ............................................................................7
CHAPTER 3 DATA ANALYSIS AND INTERPRETATION ....................................................10
DISCUSSION ...............................................................................................................................20
CHAPTER: 5 CONCLUSION AND RECOMMENDATIONS...................................................22
REFERENCES .............................................................................................................................24
APPENDIX ...................................................................................................................................25

CHAPTER 1: INTRODUCTION
Globalisation refers to the process under which individuals, company or organisations,
trade groups or association work in more then one country. There is improvement in trade
because of increment in number of consumers. It is essential to understand changes which are
taking place in external environment through which they can outshine at global level (Cohen and
Kietzmann, 2014). These days, there is more trends of increasing operations which gives positive
impact on sales, profitability and productivity of association. This research is based on Vodafone
PLC which is British telecommunication organisation having head quarter in London, UK. This
association has operations in many countries because they provide better services and launches
new services.
When operations are performed at international level, then consumer base gets improved
and at the same time, managers of Vodafone PLC has to consider changes taking place in
external environment. Role of workforce is also important while operating in more team one
country because they are representative of association. There is requirement of proper
communication technique through which they are able to communicate about change in trends,
consumer query, etc. This makes quick and fast resolution of consumer demand and make them
satisfy (Costinot and Rodríguez-Clare, 2014). Technological changes at international level is
much more then national level, so in this case managers of Vodafone PLC has to implement
changes and provide training to employees to work under it.
Reason behind selecting this topic is this is vast and interesting, so it is easy for collecting
information. If researcher wants to expand business at international level, then they have
knowledge about issues which arise and strategies through which it can be resolved. Reader is
also able to gain impact of globalisation on sales and profits and role of management in getting
positive impact.
Research Aim
To understand the impact of globalisation on increment of trade across borders of
goods and services of an organisation. A study of Vodafone PLC.
Research Objectives
 To understand the concept of globalisation.
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 To evaluated the impact of globalisation on trade of Vodafone PLC.
 To analyse the issues which arise while operating at global level. Recommend the ways through which barriers of globalisation can be resolved.
Research Questions
 Do you understand the concept of globalisation?
 What is the impact of globalisation on trade of Vodafone PLC?
 What are the issues which arise while operating at global level?
 What are the ways through which barriers of globalisation can be resolved?
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CHAPTER 2: LITERATURE REVIEW
Concept of globalisation
According to Williamson. J., (2019) globalisation refers to integration of market in global
economy. There is integration of financial resources such as capital, credit assistance, insurance,
commodity, etc. With working at global level, there is difference in working style which is
specific and relevant in context of payment systems, mobile pay apps, etc. There is advantage of
competition because many international brand are available at global level. There is advantage of
economies of scale which maintains ratio between cost and profit in order to understand changes
in better and effective manner. With globalisation of business operations, there is positive as well
as negative aspects to country as well as company. Vodafone PLC is the organisation which
deals in telecommunication services, with globalisation of business operations there is increment
of sales and profits (Croucher, 2018).
With the help of globalisation of business, sales and revenues of Vodafone PLC gets
enhanced because of enhanced consumer base. Therea re amny changes taking aplce in external
market, hence managers of Vodafone PLC has to accept changes to take good brand image.
Employees are the main sources through which business can expand business and perform
operations smoothly. With expanding business, product and services also have to be up to the
mark because there are many competitors in industry. It is important to analyse policies of
competitors so consumers may not get attracted towards them. Managers of Vodafone PLC has
to analyse complete knowledge about legal laws and regulations so they can expand in
geographical region.
Impact of globalisation on trade of Vodafone PLC
With performing activities on international level, there is positive impact on operations of
organisation because of change in trend, consumer preferences, etc. But there are possibilities of
negative impact as well, if managers of Vodafone PLC does not give importance to current
market change. As per view of Arpita Sharma (2018) there will change in investment pattern,
acquisition of raw material, etc. It is important to plan about taxes and other important duties
through which they can successful launch their operations. With expanding business in more
than one country, there is improvement in profits because consumer base gets improved. It is
essential to analyse suppliers through which telecommunication services can be provided to
consumers. As there is launching of 4 G services by competitor, then managers of Vodafone
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PLC has to plan through which they can also launch new and innovative services. At
international level, there is more competition, so it is essential to improve marketing activities
through which consumers are aware about new arrivals. There is positive impact on revenues and
sales of Vodafone PLC with understanding demand of consumers. There is requirement of
different discounts, offers, combo offers for consumers through which consumers are ready to
avail services from them. But with change in geographical region, there is requirement of
different offers as per type of consumers such as corporate consumer have different demand as
per college going students. So in order to enhance consumer base and revenue managers of
Vodafone PLC has to analyse it.
Issues which arise while operating at global level
It is not easy to expand at international level, because there is difference in preference of
consumers as per change in geographical region. According to Reynolds, K., (2018) there are
some issues such as political risk, currency change, cost calculation and pricing strategies, etc.
which affects performance of organisation if not taken in consideration. Some challenges are
discussed as under-
International accounting- There is difference in accounting policies of countries, as per
change in geographical region. As Vodafone PLC operating in more than one country, so
accounting system of different countries has to be considered. With the help of accounting
system, financial position of country is shown to shareholders. Sometimes, there is issue in
publishing overall performance of Vodafone PLC because of change in accounting policies.
Foreign laws and regulations- There are some laws and regulations which are related to
establishing business such as employees protection act, minimum basic pay, etc. There is
difference in laws and regulations, so due to lack of knowledge about these laws there is issue in
successful running of business (Docquier and Rapoport, 2012).
POLITICAL RISK- There is crucial role of political parties in country to operate in
international land, so in this case if there is change in political policies, issue is faced by
managers of Vodafone PLC regarding it. Due to frequent change in political policies, managers
can not focus on core operations due to which their success rate might get affected.
With considering these issues, performance of Vodafone PLC is able to expand in
international market and provide services to consumers as per their preferences. Managers have
complete knowledge about legal terms and conditions, taxes, etc. so they can perform actions in
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