The Impact of Globalisation on Corporate Structures of Multinational Companies - Case Study on Sainsbury's

Research Project

TOPIC
“The impact of globalisation on the corporate structures of large multinational
companies and the major challenges they face”- Case Study on Sainsbury's
INTRODUCTION
In the last few decades, the concept of globalisation has become the main factor in
business. Globalisation is a process of integration and cooperation of different economies,
companies and nation in worldwide. However, it influence positively and negatively over
organisation's productivity and profitability. The primal benefit which globalisation impose to
companies is that greater free trade in less cost as they can expand their market share or size in
any geographical region without any trade barriers. Along with this, establishment can acquire
highly talented and skilled personnel who makes an effort to contribute novel ideas to cope up
with current and emerging trend of marketplace for attaining sustainable proficiency ratio (Crane
and et. al., 2019). Additionally, for obtaining best position among competing marketplace global
business environment enable firm to make use of several innovative technologies that help them
to improve its overall performance in an amended way. In regard of this report, Sainsbury's has
been considered which is one of the well known and leading supermarket chain company within
UK market. In this project, it involves research aim, objective, review of literature, research
methodology, analysis of data with interpretation. Finally, rendering appropriate
recommendation for developing better outcome for project in market.
Research Aim
“To study the influence and challenges of globalisation on corporate structure of large
multinational company” – Case Study on Sainsbury's
Research Objective
 To understand the concept of globalisation on large multinational companies.
 To identify the benefits of globalisation which Sainsbury's come across during operating
its business function at global pace.
 To determine the challenges of global business environment which Sainsbury's
undergoes while functioning at international level.
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Research Question
 What is the concept of globalisation on large multinational companies?
 What are the benefits of globalisation which Sainsbury's come across during operating
its business function at global pace?
 What are the challenges of global business environment which Sainsbury's undergoes
while functioning at international level?
Rational of research
The foremost reason behind considering this topic is to investigate the importance of
globalisation over organisation during operating its functional areas at global level. In the current
scenario of marketplace, there is an intense level of competition which directly impact over
establishment decision making capability (Dwyer, 2015). By conducting this project, an
investigator is able to determine the market current or emerging trend and according to that
implement corrective course of action which benefit Sainsbury's to gain competitive advantage
in an improved mode. Another benefit which researcher acquire from this report is that improve
overall performance of study by gathering accurate and reliable information in order to bring
authentic project within market.
LITERATURE REVIEW
Concept of globalisation on large multinational companies.
According to C. Rangarajan (2019) it is not easy to trace the changes in
distribution of income within different countries that is globalization, which represents a brave
new world with no barriers. In other words, Globalisation comprises with the process of
integration and interaction between people, group of people, organization and different nations of
government in order to drive a business at international level (Concept of Globalisation, 2019).
To expand a business there is need various resources which helps to perform business activities
effectively. It is the integration of societies and economies that involves flows of information,
goods, services, ideas, technologies, capital, finance and people who works within organization
to achieve the business objectives. It is important for multinational companies to focus on
globalisation so that they can enhance their productivity and profitability. Connectivity is the
essence of globalisation which connects business with different countries. It is manifested in the
growth of world trade as proportion of input and outputs which helps to focus on different
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business activities. Globalization is connected with economic, political and cultural integration
which helps organization to run their their business in different countries after integrating. Such
as after Brexit the trade policies and government policy has been changes which impacted on
businesses or corporate structure negatively.
The researcher has analysed that organization should follows different policies and
standard of different countries in order to become a multinational company can helps to achieve
the business objectives effectively. In context to Sainsbury's , globalisation is the ability which
helps to communicate and move with other world so that it can expand its business by
maintaining relationship. To become a multinational at large scale it is important for organization
to create a good relation with other country and world that can attracts customers and
encourages them to buy a products. The researcher said that organization need to analysis the
needs of other country and then provide products and services accordingly, that can help to
become a large multinational company at global level (Epstein, 2018). All companies who wants
to become a multinational company by integrating with other need to focus on targets and make
efforts to attracts people that can help to complete objectives. Such concept has adopted by many
countries for the purpose of getting success and growth in competitive business environment.
Benefits of globalisation which Sainsbury's come across during operating its business function
at global pace.
As per opinion of Fredrik Erixon (2019), Globalisation is beneficial for
organization as well as countries which helps boost the output in western economy by increasing
the intensity of research and development. It become easy for new company to compete with old
organization by providing better quality of products and services. The main benefits of
globalisation is to increase the household income by reducing high inflation rates in other
economy. It helps businesses and people to interconnect with sources like global finance,
transportation, media and capital to set up a business in other country and gain higher growth.
Globalisation provides different opportunities to business concern and countries by improving
the quality of products which attarcts customers and sustain a business at higher level (Benefits
of globalisation, 2019). In regard to Sainsbury's Globalisation helped such business organization
to gain higher growth and sustainable development by enhancing business activities in other
countries. Researcher said that globalisation is targeting Sainsbury's 's targeted new customers
who are curious towards its products and services. With the help of this customer get connected
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with respective company that helps to improve the economical standard of country as well as
living standard of people. It also helped to increase the gender discrimination which was running
in different countries. The employment opportunities has been created by integration of countries
that helped Sainsbury's to increase the business activities and continuous development.
Moreover, it helps to improve the working condition, political system and quality management in
Sainsbury's . The management are getting continuously advantages by running a business at
international level and maintain the profitability (Halkias, Davvetas and Diamantopoulos, 2016).
Globalisation is also benefited to achieve the business goals by using new technology that helped
Sainsbury's to face beat the competition in result operating business successfully at
multinational level.
Challenges of global business environment which Sainsbury's undergoes while functioning at
international level.
According to Katie Reynolds (2017), Globalisation is not impact positively on business
organization even it impacts negatively due to having some reasons. It become a challenges for
organisation as well as countries to adopt new trade policy and different taste of person in order
to run a multinational organization. In context to Sainsbury's , the business of such company has
been impacted in which it has faced many challenges that are as explained:
International company structure - The main aim of Sainsbury's is to be competitive
globally by having a effective team and well location to set a business. The structure of company
is depend on size, brand, nationality, industry and products which became a challenge for
Sainsbury's to manage business activities at international level (Challenges of global business
environment, 2017).
Foreign laws and regulation - This is another challenge for organization which needs to
be understand laws and regulation of that country in which organization is going to run a
business. So it may be a challenge for Sainsbury's to follow foreign laws and regulation in order
to set a business at international level.
International accounting - Accounting principle and standards are different in other
countries which is more crucial for organization to accept them. It can be a challenge for
multinational businesses that who will be liable for corporation tax across the boundaries.
Therefore, it can impacts negatively Sainsbury's 's businesses to minimize the revenues by
paying tax liability (Hirst, Thompson and Bromley, 2015).
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Communication difficulties and cultural difference - Proper and good communication
is the integral part of international business strategy that can be a real challenge for organization.
There are different language and culture in other countries which is difficult to understand by
Sainsbury's 's management that creates problems. For instance, cultural and language difference
in many countries reduces the market demand for Sainsburty's products which can reduce sale of
business organization.
RESERACH METHODOLOGY
Research method comprises a systematic plan which is conducted by researcher in order
to know and get information about particular search. It involves two approaches qualitative and
quantitative which helps to gather the information. Quantitative research provides information in
figures, counts, by creating statical model, and observing others. Where as qualitative method is
provides information by involving detailed description of observation, context of events and
circumstances. Moreover, qualitative research is concerned with human behaviour and reaction
ways that helps to make correct decisions.
Research philosophy: It can be consider as beliefs in which data of particular topic
should be gather, used and analysed by researcher in order to run a business successfully. This
philosophy involves various information about a particular project and make efforts to complete
then in effective manner. However, in context of this project, researcher utilises the same as it
help them to acquire relevant and accurate information in order to produce authentic report in an
improved way (Jabeen, Faisal And Katsioloudes, 2017).
Research approach: This aspect is classified two types i.e. inductive and deductive
which enable researcher to acquire detailed information and also lead them to maintain high
quality for developing particular topic in prescribed time limit. Hence, in context of this report,
inductive approach has been utilised that lead them acquire reliable information regarding topic
and also lead them to develop better results for upcoming research.
Research Choice: It is a relative term that is used by responsible researcher or business
concern to collect the information by dedications. Such method make sure that all collected
information are according to choice and accurate which can help Sainsbury's to increase its
business activities by integrating with other countries. However, in context to such project,
researcher make sure that research is according to choice and assessable which can help to
complete targets.
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Time horizon: This determinant is relate with those aspect which empower investigator
to allocate various research activity into different segments and also help them to prepare a
starting and ending time frame. However, for current research report researcher utilise Gantt
Chart that assist them to assign each activity in different time period in the format of graphical
presentation . Due to which, it generate high level of coordination or collaboration among team
members in an improved way.
Research design: This element is classified into three main types such as descriptive,
exploratory and experimental which drive researcher to prepare an effective procedure for
completing the report and also to organise or govern each research activity in an amended way.
IN relation to this research, investigator applied descriptive research which motive researcher to
demonstrates a proper profile of manpower and events. Additionally, it also lead them to gain
deeper understanding and evaluation of variables of targeted population.
Sources of data : It is the process of gathering and measuring information on targeted
variables. The main object is to collect the information in order to enhance the business process
that can help to achieve goals. In other words, researcher gather information from various
relevant sources and get the answer of research problems. Such method is divided in to two
categories that are as explained:
 Primary data collection method - This means data is collected at first hand in
original nature. The researcher collect the information or fresh data in the case of
unique research. Such research is more effective which helps Sainsbury's to set
up a business in different countries by gathering information about interest of
people and products. In regard of this report, an investigator applies the primary
method by preparing questionnaire which help them to get suitable information
about the enhancement of Sainsbury's .
 Secondary data collection method - When information is collected by some one
for their research work is consider as secondary data. It is not fresh data because
researcher has already passed through statical analysis which can help to complete
objects in less time (Kerzner, 2017). The main advantage of such method is less
expensive and less time consuming research which can help to maintain a
business. In context to this report, a researcher has adopted this method by
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observing others that helped to get relevant information for the purpose of
completing research.
Data collection technique - Different techniques are used by research or organization in
order to collect the information. Techniques such as primary and secondary which helps business
concern to collect correct information and make further business decisions. The explanation of
data collection technique is defined as:
 Interviews - It is primary data collection technique which helps to get the
information through a interview process. In this technique researcher asks many
question from respondents in order to collect fresh data. In context to this project,
researcher has asked different question from public that helps to know about what
people wants and and how it can increase business at international level.
Therefore, it is effective technique to collect the relevant and correct information.
 Survey and Questionnaire - This is another method of data collection in which
researcher collect information about specific study and achieve targets. By using
this method, different questions are asked by researcher for the purpose of
knowing about success or interest of people. In context to this project, researcher
ensures that such research is appropriate which has provided relevant information.
 Observation - Observation is consider in secondary technique of data collection
which helps to complete targets in less time and less cost. In other words, it is the
way of data collection which can help Sainsbury's to increase business globally
by observing other organization and own business performance.
Sampling size: It is a process of choosing respondents from the larger group of
population. However, in regard of this project, researcher select 20 respondents from Sainsbury's
company who are employing within its functional areas.
Data presentation techniques: The current resrech report is presented in an accurate,
clear and transparent manner with the usage of various data presentation tools. Some of the tools
which has been utilised for report is that pie chart, bar graphs, tables and many more that aid
them to convey the gathered information to respondents in an amended mode.
Data analysis techniques: This determinant is categorised into three kinds such as
deductive analysis, inductive, regression. However, for present research report, investigator
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