Analyzing the Impact of MNCs on a Business Environment

This report investigates the impact of multinational companies (MNCs) on the business environment of host destinations, using Sainsbury as a case study. The project begins with an introduction to the business environment and explores the positive impacts of MNCs, such as improved balance of payments, employment opportunities, and technology transfer, while also considering negative impacts like environmental concerns and increased competition. The project includes a project management plan covering cost, scope, time, quality, and communication risks, along with a work breakdown structure and a Gantt chart for project visualization. The research employs both qualitative and quantitative methods, including questionnaires administered to Sainsbury employees, to gather data on the perceived impacts of globalization. The analysis of this data leads to recommendations for mitigating negative impacts and enhancing success in the host country. The report concludes with a reflection on the undertakings and attainment of objectives.

MANAGING A
SUCCESSFUL BUSINESS
PROJECT

Table of Contents
TOPIC .............................................................................................................................................1
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Project aim and objectives.....................................................................................................1
P2 Project management plan with cost aspects, scope, time, quality and communication risk..2
P3 Work breakdown structure and a Gantt chart........................................................................3
..........................................................................................................................................................4
..........................................................................................................................................................4
TASK 2............................................................................................................................................5
P4 Small scale research by implementation qualitative and quantitative research.....................5
TASK 3............................................................................................................................................7
P5 Evaluation research and data using appropriate tools and techniques...................................7
P6 Appropriate recommendation as a result of data and research analysis..............................12
TASK 4..........................................................................................................................................12
P7 Reflection upon undertakings to attain objectives...............................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

TOPIC
“How do multinational companies impact the business environment of the host
destination e.g. a country, region, city.
INTRODUCTION
Business environment is related to the internal and external factors for the business which
also impact its performance. It also include employees of the organisation, their clients, owners,
suppliers and government (Primary source and secondary source, 2018). Business can not sustain
without resources like finance, ethics, social norms , human resource etc. because these factors
impact the business organisations lot. It help the company in identifying its strength and
opportunities which they can tap for increasing the growth of the organisation and to increase the
profitability. The concept of business environment is explained with the help of Sainsbury
organisation it is an UK based supermarket chain which was founded in 1869. it is one of the
biggest grocery store of UK, its head quarter is in London and it is serving as a hypermarket, or
supermarket store. Further in this report, impact of multinational companies on the business
environment of host destination has been explained.
TASK 1
P1 Project aim and objectives
Background of the study:
There are number of big and large organisations that are working globally, they are
providing benefits to other countries also or host country in which it is working. They are
following their ethical code of conduct to exploit the demand of that market. It is important for
multinational organisation to calculate their investment and what government incentives,
subsidies & tax break they will get. Some of the good factors that host country faces are-:
• Improving balance of payment- Host country in which multinational organisation is
working will provide balance of payment to the former because of their investment
which act as the flow of capital in that country. Other than this host country's export
promotion will also get increased because globally working companies are using its
production facility.
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Providing employment: Another impact which multinational organisations give to host countries
are that it provide employment opportunities to that region by locally recruiting people (Ullah
and Lai, 2013)
. This also give some benefits to the government of host country as it will increase their GDP
(Spender, 2014)
• . Not only this, but it also facilitate balanced regional development and improved
standard of living. It increase the morale of the citizens and reduces the migration of
talent from the country.
• Technology transfer- Multinational companies bring advanced and new technology
with them to the host country. It impact the region positively and help them in
developing their country. Technological development attract more tourist as well as it
increases the organisation's export.
Aim: Main aim of this project is, To identify the impact of multinational company on business
environment of the host destination (Morocco). A study on Sainsbury.
Objectives:
 To study about the concept of business environment.
 To analysis the positive and negative impact of multinational organisation on business
environment of Morocco. To identify the different ways through which negative impact can be reduced.
Questions:
 What are the concept of business environment?
 What are the positive and negative impact of multinational organisation on business
environment of Morocco?
 What are the different ways through which negative impact can be reduced?
P2 Project management plan with cost aspects, scope, time, quality and communication risk
Company Name: British Telecom
Cost Cost is needed for each and every organization at the time
of globalizing their business activity in intentional level.
This activity includes Human resource, Marketing etc. For
example, hiring of employees, up-gradation of
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technology, purchase of new equipment etc. It needs help
from administration to set up a appropriate budget which
lead workers to invest accordingly with proper utilisation
of resources. The management of Sainsbury UK has
forecasted to raise approximately 560000 pound in order to
enlarge its business operations and activities at
international level(Reich, Gemino and Sauer, 2014).
Scope Scope is mainly connected with the chances for
organization to accomplish advantages after
enlarging their business activity internationally.
Due to giving better telecommunication activities
in most of the country, Sainsbury UK have large
scope in each market they enter. It will support
them in increasing large market share which guide
to high market share and profitability.
Time Time is essential factor which is needed by each
organization to identify time period for completion
of each activity of project. It maximize the business
cost as well if the planned activities are not dead
within allotted time duration. Therefore, it is
important for the administration to set time
duration for its workers with a hope of acquiring
speedy and better outputs from them during its
enlargement of organization. The administration
has forecasted that globalizing its business activity
will take about six months.
Quality Quality is must for Sainsbury to work in
international market because it is working in other
country and to attract their citizens they need to
provide them with the good quality of products. It
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will increase the satisfaction level of people and
also increases the company's sales. Quality is also
very important for maintaining a good brand image
in every country because without is customer base
will never get increased. Globalisation is not
working in other countries but it is also related to
satisfying customers need by providing them
quality goods. Organisation will not be allowed to
work if they does not give what people wants.
Communication Communication is another aspect which is very
much important for the Sainsburry to work globally
and that is good communication in the company
with government, people, and with its different
units working in other countries. Communication is
important to eliminating any confusions and delay
is activities. On the other hand communication
between company and people is important for
influencing them to buy the products.
Communication with government and organisation
is also very 9important so that company get
subsidies and tax relaxation.
Risk Risk is another factor that every organisation need
to face. Working globally in different country is
full of risk and Sainsburry need to take risk if they
want to earn profits. Risks which companies faces
while working internationally are currency risk,
import- export risk, government related risk,
payment risk, sale, production,turnover , climate,
weather etc.
P3 Work breakdown structure and a Gantt chart
Gantt Chart:
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It is a bar chart of project management which was invented by engineer Henry L(Pryke
and Smyth, 2012). Gantt and founded into 1910. the concept of Gang chart help the
organisations in determining the start date as well as finishing date of the project. It also shows
the dependency among the activities of the company(Pekuri, and et. al., 2014). It is used in
project management and give a graphical representation of the project to help in planning,
coordinating, and to track the tasks.
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Work break down structure:
work breakdown structure is used in project management or system engineering. This
model help in breaking down the larger projects into into smaller one, it shows the scope of work
that an entire team can perform to achieve the objective . Elements of work breakdown structure
are products, services and data, this also provide guidance in estimation of cost and methods of
controlling it)( Nicholas and Steyn, 2017)
. Its main purpose is to make a complex task into the simple task some of the other reasons
behind using WBS are accuracy and readable project organisation, it indicate the project hurdles,
help in estimating costs, explain project scope.
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TASK 2
P4 Small scale research by implementation qualitative and quantitative research
Qualitative and quantitative research: This are two types of research methods used by
researcher to collect accurate information about the topic. In case of qualitative research,
information are gathered in form of quality whereas under quantitative research, information or
data are collected in form of numbers, facts and figures. Both are used by researcher to
accumulate proper information about the study.
Research methodology: It is considered as an essential techniques applied to determine,
choose, process and analyses information regarding to the research topic. It support an enterprise
to critically evaluate the reliability and validity of otputs obtained during research study
Data collection: For collecting accurate information about the topic, there are two types
of data collection sources such as primary and secondary. In case of primary resource,
questionnaire will be applied by researcher to collect reliable and valid data about the topic. On
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the other side, under secondary source, books, journals etc are used to accumulate in-depth
information about the study (Morris and Geraldi, 2011
.
Questionnaire: It is an essential instrument used by researcher to gather reliable and
valid data about the topic. In this, different number of questions will be made which will help an
investigator to gather accurate data from respondents.
Sample size: The investigator has taken 40 respondents as sample size under the actual
research which represents the suggestions and views of all population. These respondents are
employees of Sainsbury.
Questionnaire
Q1) Do you have knowledge about the term “Globalisation”?
a) Yes
b) No
Q2) What are the positive impact of multinational organisation on business environment of
Morocco.
a) Improving balance of payments
b) Providing employment
c) Technology transfer
d) Increasing choice
Q3) What are the negative impact of multinational organisation on business environment of
Morocco.
a) Environmental impact
b) Access to natural resources
c) Low-skilled employment
d) Increased competition
Q4) What are the different ways through which negative impact can be reduced.
a) Hire skilled employees
b) Optimum utilisation of resources
Q5) Provide the expected benefits Sainsbury received due to globalising their business?
a) Huge expansion in customer and market share
b) Increment in sales and revenue
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c) Staff retention
Q6) Recommend different ways through which Sainsbury can easily enhance their success in
Morocco.
Q1) Do you have knowledge about the term “Globalisation”? Frequency
a) Yes 37
b) No 13
Q2) What are the positive impact of multinational organisation
on business environment of Morocco.
Frequency
a) Improving balance of payments 15
b) Providing employment 15
c) Technology transfer 10
d) Increasing choice 10
Q3) What are the negative impact of multinational organisation
on business environment of Morocco.
Frequency
a) Environmental impact 10
b) Access to natural resources 15
c) Low-skilled employment 10
d) Increased competition 15
Q4) What are the different ways through which negative impact
can be reduced.
Frequency
a) Hire skilled employees 25
b) Optimum utilisation of resources 25
Q5) Provide the expected benefits Sainsbury received due to
globalising their business?
Frequency
a) Huge expansion in customer and market share 15
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