How Globalisation Can Drive Business Success

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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