Global Factors Business Environment Assignment

RESEARCH PROJECT

TABLE OF CONTENTS
TOPIC:.............................................................................................................................................1
INTRODUCTION...........................................................................................................................1
Research Background.............................................................................................................1
Rationale.................................................................................................................................1
Aim and Objectives................................................................................................................2
LITERATURE REVIEW................................................................................................................2
Meaning and Concept of global business environment..........................................................2
Advantages of global business environment on the functions and operations of retail business.
................................................................................................................................................3
Risk faced by organisation in retail industry operating in global business environment.......3
RESEARCH METHODOLOGIES.................................................................................................4
Research Methods..................................................................................................................4
Research Approach.................................................................................................................4
Sampling.................................................................................................................................4
Data Collection.......................................................................................................................5
Data Analysis..........................................................................................................................5
FINDINGS AND RESULTS...........................................................................................................5
RECOMMENDATION.................................................................................................................11
ALTERNATIVE RESEARCH METHODOLOGIES .................................................................12
REFLECTION...............................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
APPENDIX....................................................................................................................................17

TOPIC:
“To identify the risk and benefits of global business environment on the functions and
operations aspect of business in retail sector. A study on Marks and Spencer.”
INTRODUCTION
Globalisation is a fact because of technology, because of an integrated global supply
chain, because of changes in transportation. Globalisation is the speed of light. It is the spread of
products, technology, information and jobs across the national borders and cultures. In addition
to this, global business environment is the environment in different sovereign nations with
factors exogenous to home environment of the company, affecting decision making on the
resources use as well as capabilities (Murray, Skene and Haynes, 2017). Legal, social, political,
technological, social and economic and all the global external factors which influence the
business in both positive and negative way. After globalisation, organisation had graphed many
opportunities to trade across the world as globalisation has also developed liberalisation policy.
Apart from the positive things, globalisation has also led to raise many risks in the operations
and functions of business such as trade imbalance, dominant global brands, rapid change in
technologies etc.
Thus, this present report will identify the risk and benefits of global business environment
on the functions and operations of business by using various techniques and methods.
Research Background
This present research study is based on identifying the risk and benefits of global
business environment on the functions and operations Marks and Spencer (M&S) is a major
British multinational retailers in United Kingdom. It is one of the recognised brand in clothing
and other luxury goods. Within increasing trade across the boarders, Marks and Spencer also
raise the production scale of the company for which they start selling their product across the
world (Dyllick and Muff, 2016). Further, the migration of labour across the nations is also
increased which is also one of the great advantage for company working in the global market.
Further, the risk factors is that if particular country do not have liberal policies than the
operations are badly affected.
Rationale
The reason behind choosing the topic globalisation is that it is one of the word which is
very popular in the context of business. It is fact that globalisation has bought many
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opportunities for businesses to grow and expand but it also leads many risk factors. In this
present research study, the impact of global business environment is on the operations and
functions of the company as it has been noticed that the country which do not provide liberal
policies of trade it will directly affect the operation and function of firm (Namada, 2018) .
Aim and Objectives
Aim:
“To identify the risk and benefits of global business environment on the functions and
operations aspect of business in retail sector. A study on Marks and Spencer.”
Objectives:
 To articulate the meaning and concept of global business environment.
 To identify the advantages of global business environment on the function and operations
of retail business.
 To determine the risk that organisation faces operating in global business environment.
 To provide recommendations to expand the business in global business environment by
taking advantages and overcoming the risk factors.
Research Questions:
1. What is the meaning and concept of global business environment?
2. What are the advantages of global business environment on the function and operations
of business?
3. What are the risk that organisation faces operating in global business environment?
4. What are the recommendations to expand the business in global business environment by
taking advantages and overcoming the risk factors?
LITERATURE REVIEW
Meaning and Concept of global business environment
As per the Kolk, (2016) global business environment is the environment in various
sovereign nations, with factors exogenous to home countries of the company affecting the
decision making resources use and capabilities. It is very important for organisation that to
understand the social environment of the host nation they are operating as there are thousands of
country that operate in many parts of the globe. These companies shave to acquaint themselves
with the language as well as culture of the nations where they are operating. All the policies and
strategies needs to be followed by the counties where they are operating and it may vary from
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nations to nations but still it is mandatory for all. As per my personal opinion, global business
environment creates so many opportunities and challenges for the companies in order to gain
competitive advantages.
According to Bendell, (2017) businesses operating in the global business environment,
they have to formulate many strategies for which they have to understand the factors such as
social, environmental, political, legal, economic and technological in order to understand the
global business environment. These factors affect the business functions and operations both
positively and negatively. There are variety of reasons why organisation go globe as they just
want to expand the business operations, generating more revenues, investment opportunities,
competing sales, recruiting new talent and reducing cost. As per the my views, technological
factors its one the leading factors in today's environment that leads to affect business operations
in both positive and negative way as if organisation do not implement technologies within
operations, the impact is highly negative.
Advantages of global business environment on the functions and operations of retail business.
Tallman, Luo and Buckley, (2018) stressed that, globalisation had brought many benefits
to the retail business in its operation's and function. As by taking the business to globe, retail
business has elaborated its customer base in the market. Once the product and services achieve
the success, company can raise the revenue. Operating in global business environment provides
ultimate opportunities to expand the business more at global level. Company can acquire low
cost of labours from any parts of the world. In addition to this, after the emergence of the concept
of Foreign Direct Investment (FDI), the government of countries has liberalised the
establishment procedures and trade policies in order to attract new investors to invest the nation.
Thus, this is also one of the benefits that organisation acquired after globalisation.
As my views, globalisation has benefited the organisation as it has open up all the
boundaries for organisation operations and functions which has ultimately raise the profitability
and sales of companies.
Burns, (2016) said that, global business environment also lead to increase the use of
outsourcing and offshoring of production. I phone is the classic example and its complex supply.
The product was conceived and designed in Silicon Valley in USA and the software by
engineering working India. Thus, after globalisation it has becomes very convenient to purchase
the products or raw material, or any other things from any part of the world. Further, the
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technological advancement is another benefits that organisation are getting by operating in the
global business world. The production capacity of the retail business increases with the
emergence of innovative machineries, tools and techniques. Globalisation has raised the
spending on capital investment, innovation and infrastructure across the world.
Risk faced by organisation in retail industry operating in global business environment.
Sadgrove, (2016) argued that, over the advantage's organisation has also faced many risks
operating in the global business environment. The very first risk that is faced by the organisation
in global business environment is that changes in trade and other policies. These changes directly
affect the operations of the company by which the revenue and profitability is largely influenced.
In addition to this, ethical business practices are another risk factors faced by the globalisation
like labour, product safety, corruption, regularity compliance and environmental stewardship etc.
For example, the case of Nike brand image was tremendously damaged by reports which it is
utilised low wage and sweatshops workers in emerging nations. So, it is very important for
company to practice ethically in order to protect the brand image and sustainable working
condition.
As per the views of opinion, cut-throat competition among the organisations is one of the
biggest challenge that is faced by organisations which has ultimately raise the cost of operations.
RESEARCH METHODOLOGIES
Research Methods
When the research study begins, it is very important to select the methods for conducting
the research. There are some tools and techniques which is used by the enumerator to collect the
data, analysis and interpret the information. Qualitative and Quantitative are two tools that is
used on which the entire study is based on. The information which is non-numeric like words,
feeling, experience etc. are called as Qualitative information (Esgin and et.al., 2018). While,
information or data which is based on the numerical figures is called as quantitative information.
In this present research, enumerator has applied qualitative methods to collect the information or
data. Therefore, researcher has successfully identified the risk and benefits of global business
environment on the functions and operations aspect of business in retail sector.
Research Approach
When enumerator select the techniques or methods for conducting the research,
enumerator have to think about the research approaches used to gather, analyse and interpret the
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information. Research approaches are the systematic plan and procedure used in the research
study for collection, analysis and interpretation of data. Inductive and Deductive approaches
mainly used in studying the research. In this present research, enumerator has applied inductive
approach as the outcomes of this approach is effective when the research study is based on
qualitative methods. So researcher has decided to use inductive research approach.
Sampling
After the selection of research methods and approaches, it is very important for
enumerator to select the sample size. The sample size should be reflective to the research study.
Sampling is the small part of the population. Probabilistic and Non-Probabilistic are two
techniques which is used in the research. In this present study, enumerator has applied
Probabilistic sampling in which random sampling techniques is used. 25 operations manager of
Marks and Spencer has been chosen by the enumerator.
Data Collection
Once the sample size is selected, enumerator have to start looking for the methods which
is used to collect the data. This is most important phase of the research study because the entire
result of this research is based on the methods of data collection. Primary and Secondary are two
techniques which is used to gather the data. In this present research, enumerator has used
primary techniques to collect the data (Rosenthal, 2016). For primary techniques, research has
selected survey and prepare questionnaire.
Data Analysis
Once the gathering of data is completed, another task begins is to analysis the data so that
it brings meaning to the research. Data without its analysis is senseless. It is process to clean,
mould and Fortran the raw data. Qualitative and Quantitative are two methods used to analysis
the data. In this present research, enumerator has used qualitative methods in which thematic
analysis has been done (Kovach, 2015).
FINDINGS AND RESULTS
QUESTIONNAIRE
Name of organisation: Marks and Spencer
Age:
Gender:
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1. Did you think, global business environment provide opportunities to business for growth and
development.
 Yes
 No
 May be
2. Do you think, the operations of M&S is influenced by changing in global factors=?
 Highly Agree
 Agree
 Highly Disagree
 Disagree
 Neutral
3. According to you what is the impact of globalisation on the operations and functions of retail
business in UK?
 Positive
 Negative
 Neutral
4. What are the benefits your organisation has acquired after globalisation?
 Increasing Trade across the boarder
 Increase in revenue
 Increase in customer base
 All the above
5. What are the risk your organisation faced operating in global business environment?
 Dynamic policies and laws
 Rapid change in technologies
 Complex organisation structure
 All the above
6. Recommendations if any.......
Theme 1: Global business environment provide opportunities to business for growth and
development.
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Particulars Operation's Manager Percentage (%)
Yes 12 48
No 8
May Be 5
Interpretation: From the above questionnaire conducted from 25 operations manager of
M&S and it is identified that global business environment provides great opportunities to the
company for growth and development as said by 12 respondents. As it has been supported by
the views of author that, globalisation has open up all the boundaries for organisation operations
and functions which has ultimately raise the profitability and sales of companies. They said that
global business environment provides opportunities to expand the business more. Further, 5
7
Yes No May Be
0
2
4
6
8
10
12
Operation's Manager

operations manager are not supporting as they said that rapid changing in external factors is very
challenging for company to cope up. Rest of 3 were confused as they do not have appropriate
answer.
Theme 2: Operations of M&S is influenced by changing in global factor.
Particulars Operation's Manager
Highly Agree 9 45
Agree 6 30
Highly Disagree 5 25
Disagree 4 20
Neutral 3
8
Highly Agree
Agree
Highly Disagree
Disagree
Neutral
0 1 2 3 4 5 6 7 8 9
Operation's Manager

Interpretation: From the above questionnaire conducted from 25 operations manager of
M&S and it is identified that operation's of M&S is influenced by rapid changing in global
factors as 9 respondents are highly agreed. They said that changes in organisation structure,
policies influenced the operations of M&S. 6 respondents are also supporting with the same
reason. The views from literature has supported that, technological advancement is another
benefits that organisation are getting by operating in the global business world. On the other
hand, 5 participants are against of this, as they said that operations of M&S did not influence
changing global factors very largely, this is because they are aware of these factors. Rest of 3 do
not have any answer.
Theme 3: Positive impact of globalisation on the operations and functions of retail business in
UK.
Particulars Operation's Manager
Positive 17
Negative 5
Neutral 3
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Interpretation: From the above questionnaire conducted from 25 operations manager of
M&S and it is identified globalisation has lead to positive impact on the operations and functions
of retail business in United Kingdom as supported by 17 participants. They said that after
globalisation, the customer base of retail businesses tends to raise, wide range of goods and
services are available in the market, revenue is increase and many other advantages leads to
positive impact on the organisation. As the views in literature has supported that, Globalisation
has raised the spending on capital investment, innovation and infrastructure across the world. On
the other hand, 5 respondents said that globalisation has lead to negative impact on the
operations and functions of the company. They said that globalisation has lead to raise
competition among the companies which sometimes become challenging. Rest three do not have
specific answer as they are confused.
Theme 4: Customer base is increases after globalisation.
Particulars Operation's Manager
Increasing Trade across the boarder 4
Increase in revenue 5
Increase in customer base 10
All the above 6
10
Positive
Negative
Neutral

Interpretation: From the above questionnaire conducted from 25 operations manager of
M&S and it is identified customer base is increases after globalisation as said by 10 respondents.
They said after globalisation, M&S has started selling its goods and services in all over the
world, as well as they have set the infrastructure in other nations which in turn raise the customer
base of the company. The views from author has supported that As by taking the business to
globe, retail business has elaborated its customer base in the market. 4 Participants are
supporting with first option which is that globalisation has raised the trade across the boarders. 5
said that revenue of there company is enhanced. In addition to this, 6 are supporting al the above
options.
Theme 5: Dynamic policies and laws is the risk that organisation faced operating in global
business environment.
Particulars Operation's Manager
Dynamic policies and laws 10
Rapid change in technologies 7
Complex organisation structure 5
All the above 3
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Increasing Trade across
the boarder
Increase in revenue
Increase in customer
base
All the above

Interpretation: From the above questionnaire conducted from 25 operations manager of
M&S and it is identified organisation faced the biggest challenge faced by company operating in
global business environment is dynamic policies and laws. Organisation have to follow the
dynamic laws and policies of different counties and make changes accordingly in the operations
and function as sad by 10 participants. It has been supported by the views in literature that, rapid
changes in technologies due to globalisation has negatively affect the organisation operations as
it has raise the cost of operations. 7 respondents said that rapid change in technologies is another
challenges which organisation face after globalisation which raise the cost of production of
company. 5 respondents argued that firm is facing issues in managing complex organisation
structure in all counties where they have operations. On the other hand, 3 are supporting all the
above options.
RECOMMENDATION
From the above analysis conducted by the researcher where enumerators have identified
various recommendation for Marks and Spencer to expand the business in global business
environment by taking opportunities and overcoming the risk factors.
Here are the following recommendation which are as follows-
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Dynamic policies and laws
Rapid change in technologies
Complex organisation structure
All the above
0
2
4
6
8
10
Operation's Manager

Marks and Spencer should use to evaluate the external factors by using Pestle analysis,
STEEPLE analysis and other models so that the impact of external. Business environment can be
traced and further improvement can also be made accordingly.
Marks and Spencer should focus on innovation strategy to win the global market. It is
because, innovation attracts the customers towards the products and services. Innovation is one
of the best way to grasp large customer base in international as well as domestic market too
(Wilson and Wilson, 2017).
Researcher also suggested that company should also organise a risk management team so
that they can manage the risk of working in global business environment.
Scholar are advised that organisation should use the best business strategies like cost
leadership when they open there new business in any other country so that they can grasp more
market share and expand the business at global level.
In addition to this, researcher also recommend that Marks and Spencer should use
navigating new legislation as different organisation have different legislation and jurisdiction in
place that all renders a difficult backdrop form conducting business (Laudon and Laudon, 2016).
Thus, it is better to look for regional legal advisors when internationalising the business.
ALTERNATIVE RESEARCH METHODOLOGIES
Research Methodologies Alternative Justification
Research Methods used
Qualitative
(Qualitative and Quantitative)
Quantitative The reason for choosing this
methods is that in qualitative
methods the outcomes is
totally reliable and authentic as
compare to qualitative. The
possibility of cross questioning
is zero in quantitative methods.
Research Approach used
Inductive
(Deductive and Inductive)
Deductive The reason for choosing this
approach is that it bring more
authentic outcomes when
research is based on
quantitative method.
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Sampling used probabilistic
sampling technique.
(Probabilistic and Non-
probabilistic)
Non-probabilistic sampling The reaosn for choosing this
techniques as it create a
hypothesis when limited to no
prior information is available.
This method helps with
immediate return of data and
helps to build a base for any
further research.
Data Collection has used
primary (Questionnaire)
(primary and secondary)
Secondary Methods It saves the time of researcher
and it is readily available in
internet.
Data Analysis has used
Qualitative methods
(Qualitative and Quantitative)
Quantitative methods It establish cause and effective
relations and this methods is
completely free from personal
interest and bias.
REFLECTION
The entire research paper was very interesting and amazing for me as I truly enjoyed the
entire process of investigation. I have learned so many things from this research as I have gain
the deep knowledge of the global business environment and its factors affecting the operations
and function in retail business. I am type of person who always take initiatives to learn and aspire
new things. In this research, I have formulated the aim keeping in mind about globalisation. At
the beginning, I have faced some issues because globalisation is very broad topic and I have to
narrow down my research so that I can achieve the actual problem of the research. I have
prepared the aims and objectives by selecting the risk and benefits of global business
environment. On the other hand, I have learned various research methodologies as it is very
important aspect of the research as it requires proper selection of the techniques for collecting,
analysing and interpreting the data (Ciravegna and Brenes, 2016). I have selected operations
manager as sample which is best and suitable in answering the research questions. Afterwards, I
have en joyed the process of data collection where I gave met operations manager of Marks and
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Spencer and understand there perspectives about globalisation. Lastly, my entire experience was
very nice as I have learned so many things which will be valuable and worth for me and my
career.
CONCLUSION
The above research paper, summarized that, globalisation leads to positive impact on the
functions and operations of the company. It has bee identified from the research that there are
various risk and benefits of operating in global business environment that influence the function
and operation of the firm. Operating in global business environment provides ultimate
opportunities to expand the business more at global level. On the other hand, changes directly
affect the operations of the company by which the revenue and profitability is largely influenced.
Retail business has elaborated its customer base in the market. Further, report also concluded
that, once the product and services achieve the success, company can raise the revenue.
Operating in global business environment provides ultimate opportunities to expand the business
more at global level. Moreover, research paper also concluded the research risk that organisation
has faced after globalisation in which rapid change in technology and dynamic policies and laws
were on top rank.
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REFERENCES
Books and Journals:
Bendell, J., 2017. Terms for endearment: Business, NGOs and sustainable development.
Routledge.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Ciravegna, L. and Brenes, E.R., 2016. Learning to become a high reliability organization in the
food retail business. Journal of Business Research, 69(10), pp.4499-4506.
Dyllick, T. and Muff, K., 2016. Clarifying the meaning of sustainable business: Introducing a
typology from business-as-usual to true business sustainability. Organization &
Environment, 29(2), pp.156-174.
Esgin, T., Hersh, D., Rowley, K., Gilroy, J. and Newton, R.U., 2018. Indigenous research
methodologies: decolonizing the Australian sports sciences. Health Promot Int.
Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business, 51(1),
pp.23-34.
Kovach, M., 2015. Emerging from the margins: Indigenous methodologies. Research as
resistance: revisiting critical, Indigenous, and anti-oppressive approaches, pp.43-64.
Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education
India.
Murray, A., Skene, K. and Haynes, K., 2017. The circular economy: An interdisciplinary
exploration of the concept and application in a global context. Journal of Business
Ethics, 140(3), pp.369-380.
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Namada, J.M., 2018. Organizational learning and competitive advantage. In Handbook of
Research on Knowledge Management for Contemporary Business Environments (pp. 86-
104). IGI Global.
Rosenthal, M., 2016. Qualitative research methods: Why, when, and how to conduct interviews
and focus groups in pharmacy research. Currents in pharmacy teaching and learning, 8(4),
pp.509-516.
Sadgrove, K., 2016. The complete guide to business risk management. Routledge.
Tallman, S., Luo, Y. and Buckley, P.J., 2018. Business models in global competition. Global
Strategy Journal, 8(4), pp.517-535.
Wilson, C. and Wilson, P., 2017. Make poverty business: increase profits and reduce risks by
engaging with the poor. Routledge.
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APPENDIX
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Illustration 1: Time Scale