How Globalisation Can Drive Business Success

This research project focuses on the impact of globalisation on business success, using BMW as a case study. It explores the concept of globalisation, evaluates strategies for business growth, and analyzes the role of globalisation in BMW's success. The research aims to understand the importance of globalisation and its impact on the growth and success of an organisation.

RESEARCH
PROJECT

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Title: How globalisation can drive business success.
INTRODUCTION
Overview of the Research
Globalisation in present time can be defined as a process, which help countries in
performing the foreign exchange, where they could effectively perform the transferring process
of products and services across the nations (Coker, 2014). Basically, there are ample number of
business firms that has kept their focus on expand their business among international business
environment (in all over the world). As the expectations of customers are increasing in much
effective and efficient manner, it has raised both risks along with the opportunities for companies
that are expecting to perform their operations among different nations. For stronger
sustainability, it has become vital for the business companies to bring modifications among
number of services along with the products as well as per the expectations that customers carries
(Findlay and et. al., 2012) (Frambach and et. al., 2012). On the other hand, researcher has
considered the company as BMW, for conducting the investigation and the reason behind this is
that, over the years Automotive industry is dealing with number of changes, which mainly
affected on the companies in both negative and in positive sense.
Background of the Research
In present day time, globalization has gotten one of the essential subject to read for
business associations (Davidson and et. al., 2012). Organizations that has just extended at
worldwide level or firms that are anticipating to develop themselves for market goes through
different range of problems and gets liable for society too. In this situation, researcher has
considered German worldwide car organization i.e. BMW. It was found in 1916 by Karl Rapp.
Organization essentially, produces auto-mobiles and bikes, and furthermore delivered air ship
motors until 1945. Here, If it is discussed then this association has kept on assuming liability for
nature, yet additionally for the individuals legitimately or in a particular way, where number of
actions could take place. Away with this, these number of activities performed at both domestic
and international level in regards to modifications has raised growing term for the company in
much effective and efficient manner (De Vos, 2012).
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Research Aim
“To analyse the importance of globalisation and its impact on the growth and success of an
organisation. A case study on BMW”.
Research Objectives
 To understand the concept of globalisation.
 To evaluate various strategies that can be used by BMW in its business growth.
 To determine the effective role of globalisation in business growth of BMW.
Research Questions
 Evaluate the concept of globalisation ?
 What are the various strategies that can be used by BMW in its business growth ?
 What can be considered as the effective role of globalisation in business growth of
BMW?
Rationale of the Research
Rationale towards administrating the investigation is that, European automotive industry
has started, facing decline among revenue and profit margins, which impacted negatively upon
businesses like BMW, Lotus Cars and so on. It has become vital for companies like BMW to
bring modifications among technology, which they have been using over the years. With the help
of this, they would effectively develop number of strategies to sustain within the market for a
longer period of time (Impact of Globalization of the Automotive Industry, 2018). Another
reason, why this investigation topic has been considered is the self interest of the researcher as it
will directly aid in enhancing the knowledge of the readers and investigator as well. Specifically,
this is said to be the reason behind why BMW's case that has been taken into consideration
within this report (Furlong, 2013).
LITERATURE REVIEW
Concept of globalisation:
Based on views of Hoffmann and Kumar, (2013), it has been identified that after Brexit, a
tug of war has created the policy threats for both national and multinational organisations to
operate business across country effectively. But with the help of globalisation, a new wave of
economical development has introduced, that removes obstacles in terms of tariffs to acquisition,
for companies to shift the operations from domestic to global market. Basically, concept of
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globalisation can effectively be considered as process to integrate different markets at same level
for development of economy at international level. This would help in increasing
interconnectedness of various markets like capital, money and credit, insurance and more, for
organisations to operate business significantly within and outside territorial boundaries
(Apăvăloaie, 2014). The pace of globalisation in auto-mobiles sectors, has increased due to a
number of factors, such as development in transport, IT and communication, that helps
automotive companies like BMW in shipping their vast quantities of products in entire world at
relatively low cost. With rise of social media, organisations can easily utilise micro-marketing as
new forms of communication, to target both domestic and international consumers. This would
enable the global shoppers also to get easy access for virtual market.
Strategies for business growth at global level:
According to the view point of David and Jeremy (2019), it has been ascertained that
concept of globalisation can help organisation in rethinking their global footprint, by developing
a range of strategies. In context with automotive industry, this sector is characterised by
production and manufacturing of vehicles and auto-mobiles parts (Growth strategies for an
uncertain world, 2019). The majority of their resources like production parts, assembly and
more, occur in integrated regions, therefore, globalisation leads associated companies of this
sector, to access the source of raw materials that are available on fine qualities with cheap rates.
This would enable such firms at global level, too become cost competitive in overseas as well as
domestic market. With respect to BMW, as it has already expand its business in many countries
where market structure is being oligopolistic (Ciocoiu and et. al., 2013). Therefore, strategies to
run business in emergence market, some strategies are given below for respective firm -
Market penetration: Framing approached market penetration plan will lead BMW to
develop low cost entry strategy at emerging marketplace. This would help in boosting its
presence at international market and explore new opportunities as well, that helps in leveraging
the better benefits to sale vehicles with generating higher revenues. This plan include a detailed
report of barriers that may arise issues during business expansion, risk and competition, with
opportunities within automotive market space (Dachs, Stehrer and Zahradnik, 2014). Along with
this, devising such plan also aid management of BMW in aligning its business strategies to gain
actionable insights for higher growth of business.
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Product Diversification: For survival in automotive industry where demand for
investment in eco-friendly production is high, BMW needs to create diversification in its
products (Jean-Yves and Loïc, 2013). For this process, managing of spoilage of wastage,
minimisation of adverse impact of production on environment and producing electric or fuel
efficiency vehicles, aid respective firm in diversifying its products from other auto-mobiles
industry (Dima, Grabara and Vladutescu, 2014).
Merger & Acquisition: Merging business with domestic brands aid BMW in generating
money from emerging marketplace more easily. However, the share of domestic manufacturers
might be greater then this would help BMW in increasing its accessibility of business more
easily, in new market era (Dima, 2014).
Role of globalisation in business growth of BMW
According to the opinion of Lasserre, (2017), it has been analysed that globalisation
effectively played the important role for the business organisations especially for automotive
industry, where companies are basically manufactures bikes, fast cars and economical, in
accessing new market for sale its products (Mangra, Cotoc and Dumitru, 2014). In terms of long-
run, concept of globalisation has removed the barriers in trade and tariff, that allows global firms
to sell their products easily across nation. In context with BMW, the main role of globalisation
can be analysed in following way -
 Align Sales and Marketing: Globalisation aid BMW in penetrates a new way for
increasing accessibility of business, by aligning the sales and marketing techniques with
the application of internet and new technologies. The widespread usage of mobiles or
smartphones has reflected that global shoppers before purchasing any commodity, use
different applications to review the brand image. Therefore, for providing virtual access,
by using mobile apps.
 Expansion of offerings: Trade openness reduce barriers for companies in terms of tax
burdens, heavy excise duties and less regulations, that aid BMW in selling its products
with more cost efficiency.
 Focus on customer relationships: Interconnectedness with local and emergence market of
new countries, aid BMW in establishment of effective relationships with new customers.
This would help in easily influencing them towards business by offering products as per
their demand (Muscalu, 2014).
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METHODOLOGY
Research Methodology
Research methodology can be considered as a particular section within the research
where a detail description in regards to various techniques and tools are being utilised for
performing investigation are presented. The tools and technique are effectively being utilised
within the research, which would help in conducting it and some of these are described
underneath:
Research philosophy
In present time, research philosophy that every single researcher could utilise are
interpretivism and positivism. Under this investigation, researcher has considered interpretivism
philosophy as it directly will help him/her in evaluating the view point of human beings in more
effective manner and develop understanding regarding to the chosen topic i.e. To analyse the
importance of globalisation and its impact on the growth and success of BMW.
Research approach
In order to conduct the research, investigator would require to consider a research
approach, and at present there are two type of approach are being adopted by investigator such as
inductive and deductive (Shenkar, Luo and Chi, 2014). For this investigation, researcher has
taken into consideration of inductive approach so that to perform this investigation as it would
directly aid in analysing the overall aim in a much more broader concept. Along with this, it can
also be said that inductive approach is much more helpful to conduct the qualitative investigation
(ostelnicu and Dabija, 2015).
Research design
Exploratory, explanatory and descriptive are said to be the number of research designs,
that can effectively be utilised by researcher to perform the investigation in a rightful manner. In
context to present research, descriptive research design has been considered as it will offer the
theoretical framework in regards to chosen topic.
Research Strategy
There are number of methods or techniques used to gathered information such as
questionnaire, case study, interview, survey etc. In order to conduct this investigation effectively
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questionnaire will be used as it help in gathering the larger amount of data from a group of
people at a time and is also cost efficient (Steger, 2017).
Time frame
Including this, there are number of elements that time frame of a research stays enclosed
with. In present investigation, researcher has utilised Gantt chart as the tool, which will aid in
performing the pictorial representation of number of tasks, through which researcher would
become able to perform the investigation in rightful manner and in specified time frame.
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Access and Ethical Issues
The accomplishment of research depends on the sources or sort of data being utilized by
the examination just as moral thought that are being pursued. For conducting this examination
analyst will consider moral standards like educated assent, privacy and so forth so as to perform
investigate in both moral and in ethical way (Surugiu and Surugiu, 2013).
Sample Selection
In order to perform primary investigation sampling will be performed with the help of
probabilistic method as it provide equal change of being selected under random sampling method
which help in avoiding the bias behaviour in selection of sample.
Data Collection and Data Analysis Techniques
It is essential part in research methodology section. There are two methods of sampling
such as probability and non-probability. Both sampling methods are essential for researcher to
select sample size. According to this research, simple random sampling as an useful method of
probability sampling is applied. Investigator within the present research has considered random
sampling method where, sample size that has been considered are 40 respondents and these will
be the customers of this business organisation.
DATA ANALYSIS AND INTERPRETATIONS
Questionnaire
Q1) Do you have any knowledge about the impact of globalisation?
a) Yes
b) No
Q2) According to you what type of impact that process of globalisation have over business
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success and growth of BMW?
a) Positive
b) Negative
c) Neutral
Q3) What are the main drivers of globalisation that impact on business growth and success
internationally?
a) Technological Advancement
b) International Investment
c) International Trade
Q4) What are the factors affecting on business success and growth of BMW?
a) Political
b) Economical
c) Social
d) Technological
e) Legal
f) Environmental
Q5) What are the main positive impact that an organisation acquire after globalisation its
business activities?
a) Achieving competitive benefit
b) Increased in profitability
c) Increase in customer number
Q6) What are the drawbacks of globalisation that an enterprise get after globalisation its
business in new market?
a) Higher competition
b) Legal issues
c) Change in customer demand
Q7) What kind of role that process of globalisation plays in promoting business development
and growth of an organisation?
a) Easy access to market
b) Greater reach of market
c) Better option of investment
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Q8) What are the effective ways or strategies by which BMW can easily reduce negative effect
of globalisation?
a) Market research in proper manner
b) Suitable strategic steps
c) Proper study about government's rules and regulations
Q9) As per your opinion, globalisation is beneficial for an organisation in driving of its success
and growth in new market?
a) Strongly Agree
b) Agree
c) Disagree
d) Strongly Disagree
Q10) Recommend different ways via which company can enhance its business practice at
international level.
Frequency Table
Q1) Do you have any knowledge about the impact of globalisation? Frequency
a) Yes 30
b) No 10
Q2) According to you what type of impact that process of globalisation
have over business success and growth of BMW?
Frequency
a) Positive 25
b) Negative 5
c) Neutral 10
Q3) What are the main drivers of globalisation that impact on business
growth and success internationally?
Frequency
a) Technological Advancement 10
b) International Investment 16
c) International Trade 14
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Q4) What are the factors affecting on business success and growth of
BMW?
Frequency
a) Political 8
b) Economical 7
c) Social 6
d) Technological 9
e) Legal 10
f) Environmental 10
Q5) What are the main positive impact that an organisation acquire after
globalisation its business activities?
Frequency
a) Achieving competitive benefit 16
b) Increased in profitability 14
c) Increase in customer number 10
Q6) What are the drawbacks of globalisation that an enterprise get after
globalisation its business in new market?
Frequency
a) Higher competition 14
b) Legal issues 10
c) Change in customer demand 16
Q7) What kind of role that process of globalisation plays in promoting
business development and growth of an organisation?
Frequency
a) Easy access to market 15
b) Greater reach of market 13
c) Better option of investment 12
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Q8) What are the effective ways or strategies by which BMW can easily
reduce negative effect of globalisation?
Frequency
a) Market research in proper manner 12
b) Suitable strategic steps 13
c) Proper study about government's rules and regulations 15
Q9) As per your opinion, globalisation is beneficial for an organisation in
driving of its success and growth in new market?
Frequency
a) Strongly Agree 15
b) Agree 20
c) Disagree 3
d) Strongly Disagree 2
Data Interpretation (Thematic Analysis)
Theme 1: Knowledge about the impact of globalisation
Q1) Do you have any knowledge about the impact of globalisation? Frequency
a) Yes 30
b) No 10
13

a) Yes b) No
0
5
10
15
20
25
30
30
10
Frequency
Interpretation: Above shown table given the information in regards to the majority of
respondents that consists with the knowledge of how globalisation impacts on a company. 30
respondents have knowledge and on the other hand, rest of 10 respondents don't have particular
idea in regards to what globalisation is.
Theme 2: Type of impact that process of globalisation
Q2) According to you what type of impact that process of globalisation
have over business success and growth of BMW?
Frequency
a) Positive 25
b) Negative 5
c) Neutral 10
14

a) Positive b) Negative c) Neutral
0
5
10
15
20
25
25
5
10 Frequency
Interpretation: Above mentioned graph which is being presented has concluded impact
of globalisation process over business growth and success of BMW. 25 (out of 40 respondents)
has knowledge and idea in regards to globalisation positively impact on a company through
increasing its sales and revenue. 5 respondents said as globalisation has negative affect over
success and grouwth of business through enhancing the competition which turn to reduce sales of
an organisation. Remaining 10 associates are having globalisation positively and in negative
manner as well, where the impact on operations through providing growth opportunities and
decreasing sales.
Theme 3: Main drivers of globalisation
Q3) What are the main drivers of globalisation that impact on business
growth and success internationally?
Frequency
a) Technological Advancement 10
b) International Investment 16
c) International Trade 14
15

a) Technological Advancement
b) International Investment
c) International Trade
0
2
4
6
8
10
12
14
16
10
16
14
Frequency
Interpretation: This graph has been communicated main drivers of globalisation that
have direct affect over operations and on success as well at international market. Majority of
associates has idea as international investment is main drive of globalisation. As it support
business to improve their growth opportunities internationally. 10 respondents have knowledge
as technological advancement is main drive and remaining 14 respondents said international
trade is effective driver of globalisation. Therefore these are essential drivers in enhancing both
growth and success as well of BMW.
Theme 4: Factors affecting on business success
Q4) What are the factors affecting on business success and growth of
BMW?
Frequency
a) Political 8
b) Economical 7
c) Social 6
d) Technological 9
e) Legal 10
f) Environmental 10
16

a) Political
b) Economical
c) Social
d) Technological
e) Legal
f) Environmental
0
1
2
3
4
5
6
7
8
9
10
8
7
6
9
10 10
Frequency
Interpretation: This table has been interpreted different factors of globalisation that
impact over business development of BMW. Legal and environmental are two vital elements
which factor that have direct impacts over operations and on success as well. Remaining factors
of globalisation also have direct affect over success and on growth of business by providing
support of government.
Theme 5: Main positive impact that an organisation acquire
Q5) What are the main positive impact that an organisation acquire after
globalisation its business activities?
Frequency
a) Achieving competitive benefit 16
b) Increased in profitability 14
c) Increase in customer number 10
17

a) Achieving competitive benefit
b) Increased in profitability
c) Increase in customer number
0
2
4
6
8
10
12
14
16
16
14
10
Frequency
Interpretation: Considering the information presented within the table has been
interpreted positive impact of globalisation that get by BMW. 16 out of 40 associates have view
as globalisation helps an organisation to achieve competitive benefits. 14 respondents have
opinion as process of globalisation beneficial for BMW by increasing its profitability ratio.
Remaining 10 respondents have idea as globalisation support an organisation in increment of
customer base. Therefore, these are main benefits which assist company in development f its
growth and success globally.
Theme 6: Drawbacks of globalisation
Q6) What are the drawbacks of globalisation that an enterprise get after
globalisation its business in new market?
Frequency
a) Higher competition 14
b) Legal issues 10
c) Change in customer demand 16
18

a) Higher competition
b) Legal issues
c) Change in customer demand
0
2
4
6
8
10
12
14
16 14
10
16
Frequency
Interpretation: Above given table has been interpreted drawbacks faced by BMW when
they enter into new market. 14 respondents have idea as higher competition is main drawback
which negatively effects on business operations of BMW. 10 respondents have idea as legal
issue is main drawback because it s not possible for company to systematically follow rules and
regulations of each country where they expand their business. 16 respondents have knowledge as
change in customer demand is main drawback of globalisation which have unfavourable impact
over business performance.
Theme 7: Role that process of globalisation
Q7) What kind of role that process of globalisation plays in promoting
business development and growth of an organisation?
Frequency
a) Easy access to market 15
b) Greater reach of market 13
c) Better option of investment 12
19

a) Easy access to market
b) Greater reach of market
c) Better option of investment
0
2
4
6
8
10
12
14
16 15
13
12
Frequency
Interpretation: From the above mentioned data, it has been interpreted role of
globalisation played in context of business. 15 respondents have knowledge as easy access to
market is major role of globalisation because it support company in development of its success.
13 respondents have opinion as greater reach of market is one of the main role which support
company to increase customer base. Remaining 12 respondents have opinion as better option of
investment is essential role as it support business by increasing its sales and profitability.
Theme 8: Effective ways or strategies by which BMW can easily reduce negative effect of
globalisation
Q8) What are the effective ways or strategies by which BMW can easily
reduce negative effect of globalisation?
Frequency
a) Market research in proper manner 12
b) Suitable strategic steps 13
c) Proper study about government's rules and regulations 15
20

0
4
8
12
16 12 13 15
Frequency
Interpretation: It has been concluded different strategies used by BMW to reduce
negative effect of globalisation over their business success. 12 out of 40 respondents have view
as market research is most effective way which support BMW to reduce impact of changes in
customer demand. 13 respondents have view as suitable strategic step will also support business
to reduce impact of high competition. Remaining 15 respondents have opinion as proper study
about government rules and regulations will also assist BMW in reduction of legal issues.
Theme 9: Effectiveness of globalisation
Q9) As per your opinion, globalisation is beneficial for an organisation in
driving of its success and growth in new market?
Frequency
a) Strongly Agree 15
b) Agree 20
c) Disagree 3
d) Strongly Disagree 2
21

a) Strongly Agree b) Agree c) Disagree d) Strongly Disagree
0
2
4
6
8
10
12
14
16
18
20
15
20
3
2
Frequency
Interpretation: Above given table has been interpreted opinion of respondents about the
benefits of globalisation. Majority of respondents are agreed as globalisation support BMW in
driving its growth and success at new marketplace. 15 respondents are strongly agreed as
globalisation support business by improving its success at international market. 3 respondents are
disagreed and remaining 2 are strongly disagreed. They said globalisation require maximum
resources and skilled workforce which consume more time and money of an enterprise.
CONCLUSION AND RECOMMENDATIONS
Reflection
Working on the present project which is based on such as widespread concept i.e.
Globalisation, has given me opportunity to analyse how companies gain benefits by operating
business at global level. However, I have done various researches before, so, I know how to
make strategies how completing the same in set period of time. But in context with present
research, I have faced various issues for obtaining higher outcomes due to less collaboration
among team members. Therefore, for this process, I have worked on my leadership and
managerial skills first that helps in developing an effective team. It has helped in earning equal
contribution of group for completion of research on globalisation successfully.
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Alternative research methodology
Interview is an effective and important part of alternative research methodology. As it assist
investigator to use this alternative method and collect accurate amount of data for future study. In
this research, questionnaire is used because it helps in collection of accurate data. But if
researcher get another chance for doing any research, they could use interview. In this method,
some open-ended questions will be prepare which support researcher to accurately analyses
response of respondents about the study. Main reason for selecting this instrument of primary
data collection as it support researcher in accumulation of information in systematic and accurate
manner (Turker and Altuntas, 2014).
CONCLUSION
It has been concluded from this research that globalisation has played an effective role for
organisations in increasing their footprints in international market. It has reduced trade barriers,
minimise regulations and establish effective international business structure for multinational
companies. In context with automotive industry, with aspects of globalisation, companies that
dealing in this sector get access to larger market. So, this would help in getting raw materials on
cheap rates which leads to minimise the average production cost. Along with this, shipping
products with less tariff rates and new ways of transportation, also leads to gain cost efficiency
for such organisations. With less strict rules, global sourcing and effective relationship with local
and international customers, generate higher profitability for stakeholders of organisations.
RECOMMENDATIONS
Considering the above mentioned information, it is being recommended to BMW is to
bring modifications among technology and start focusing on manufacturing the electronic cars so
that to sustain within the market for a longer period of time (Surugiu, and Surugiu, 2015).
Including this, it is also recommended that company would require to look into number of
strategies that their rivals has developed to sustain within the market. Through this, company
would sustain within the market for a longer period of time.
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Online
Growth strategies for an uncertain world. 2019. [Online] Available
Through:<https://www.strategy-business.com/article/Growth-strategies-for-an-
uncertain-world?gko=6710e>.
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