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A study on Procter & Gamble
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Added on 2021-02-22
A study on Procter & Gamble
Added on 2021-02-22
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RESEARCH PROJECT
Table of ContentsTASK 1.................................................................................................................................................3Research Proposal.............................................................................................................................3Research ethics form.........................................................................................................................3TASK 2.................................................................................................................................................3Introduction & background................................................................................................................3Literature review...............................................................................................................................4Research methodology......................................................................................................................6Time scale.........................................................................................................................................9Data analysis & interpretation...........................................................................................................9Research Outcomes & Recommendations.......................................................................................15Reflection........................................................................................................................................16Conclusion.......................................................................................................................................17REFERENCES....................................................................................................................................18APPENDIX.........................................................................................................................................20
TASK 1Research ProposalResearch ethics form (Enclosed in appendix)TASK 2Introduction & backgroundGlobalisation: Globalisation is a term which can best described as the integration and interaction ofbusiness, corporations, governments and people around the world. In simpler language, it isthe integration of economies of the world. The rise of globalisation concept has impacted thetrade, business and commerce tremendously throughout the globe in the form of large market,more number of customers, higher profitability (Berend, 2016). However, the evolvement ofthis phenomenon has led to rapid decline in the scarce resources of the communities andbusinesses and has unnecessarily increased cut throat competition in international market. Research Overview: The research project will focus on Procter and Gamble which is a consumer goodsAmerican multinational company headquartered in Cincinnati. It will include how theopening up of the economies of world has benefited the business of P&G and how it hasadversely impacted the operations and growth of this corporation. The research will includesecondary research and primary research in which a questionnaire will be prepared where 20employees of Procter & Gamble would be asked questions relating to impact of globalisationon their organisation.Aim: “ To understand the benefits and drawbacks of global business environment – A studyon Procter & Gamble”Research objective: To assess the global factors impacting the corporationTo analyse the benefits of global business environmentTo understand challenges or drawbacks faced by global companies
To recommend the means and strategies through P &G can overcome the challengesimposed by globalisationRationale:The topic of assessing the benefits and drawbacks of global business environment isselected because the study will examine the factors which are affecting the business ofP&G, how the company is benefitting from the increased globalisation and whatchallenges it faces due to integration of worlds’ economies. It will help in understandingthe concept of global business environment and how the company operates in such adynamic environment. Also, undertaking this study would help in finding out thestrategies and means through which the organisation can face the challenges posed by theglobal business environment more effectively so that it maintains its position of marketleader at global level.Literature reviewTheme: Assessment of global factors impacting the corporationsAs per the view of Meyer (2017), globalisation has impacted all kinds oforganizations around the world in some way or the other. There are many factors that havehad its effects on Procter and Gamble. The author says that technological factor such asevolvement of internet, more enhanced communication and transport infrastructure havechanged the way organisations are conducting their business. Artificial Intelligence is one ofthe technological revolutions that has completely revolutionised the functioning of P & G interms of its customer support system, new innovative products and services, internal controlsystem etc. Other factors have also been highlighted by the author such as reduced nationalprotectism policies of countries around the world, economies of scale etc., have impacted thecompany in expanding its business in every corner of the world. However, Hamilton and Webster (2018) have argued that technological evolvementhas not on so fruitful impacts on the company. The very first thing argued by the author wasthat increased use of technology in the business operations has reduced the requirement ofworkers in the company. They are basically increasing the rate of unemployment globally.Moreover, there is a high risk of fluctuations in the currency exchange which makes the
economies of scale factor in cheaper and less developed countries a less impact factor thatcan contribute significantly to the profitability of P & G with minimum risk.Theme: Benefits of global business environment on P&GAccording toWei (2018), globalisation has benefitted the organisation in number ofways. The very first advantage that P&G has taken is large market share. Opening of globaleconomies has led the companies to sell its products and services to large number of peoplein different countries. Global business environment has facilitated the company with ampleopportunities related to its growth and expansion in the most emerging countries of the world.All these factors have direct impact on the sales and profitability of the firm. This hasresulted into the decrease in the dependency of P&G on the national and domestic economies.This decreased dependency provides the benefit of diversification to the businessorganisation. Business risk is reduced because of such diversification in which company hasspread its operations in different parts of the world. The author also highlighted the point thatcompany is also able to get highly specialised talent which is called as the biggest asset ofany organisation. P &G because of globalisation could also establish a competitive advantageover its rivals. The foremost reason of going international of any firm is to take the initialadvantage of the markets where its rivals are not yet operating. Foreign direct investments areanother benefit of global business environment which has provided great opportunities for thecompany to grow and nurture in international markets.Bozyk (2019) claims that global business environment has created number ofcomplexities for the business enterprise. The author said that various trade and commerceregulations of the different nations are posing challenge for the P & G to operate and expandfreely in the global market. For example, restrictive trade laws such as high tariff rates forforeign brand, high rates of corporate taxes etc., results in the reduced profitability of thecompany. The author also argued that global business environment has increased the rate ofinflation. For example due to greater demand for products and services, it has resulted in risein the prices of the commodities throughout the world. This scenario from macro level ishighly unhealthy for the world economy. Also, globalisation has made customers to changetheir preferences more frequently. Coping up with such rapid changes in customerpreferences is posing difficulties for P&G. Theme: Challenges faced by organisation due to global business environment
Najam, Runnalls and Halle (2016) articulated that global business has served thebusiness organisations with various challenges. One of the challenges which the company isfacing is stiff competition from big brands around the world. Unnecessary competition in theinternational market has disturbed the harmony of business and trade around the world. Thisforces companies to indulge in unfair trade practises which eventually harm the customers interms of high prices, low quality and high dissatisfaction. An unfamiliar culture of differentnations is another challenge which the company has to deal with for being successful in theinternational market. Taxation policies and high fluctuations in foreign exchange are someother challenges which P&G is facing lately. Risks associated with the labour exploitation,political risks are some major challenges while working in the global business environment.Political stability has large impact on the profitability of the business enterprise. For example,highly emerging countries although provides ample business opportunities but it also posessome serious challenges in the form of unstable political conditions, high corrupt practises,interest rates and policies relating to foreign direct investment. If all these things areunfavourable then it can prove a matter of destruction of business of P&G in the internationalmarkets.However, Lasserre (2017) has argued that challenges which are posed by globalbusiness environment could be overcome. The author says that these challenges might provedetrimental to the success and growth of company but the benefits it provides to corporationis way higher than the risk of conducting business in international market. For example, dueto globalisation company gets new and unexplored foreign markets which provides largecustomer base through which company can increase its sales and profitability. Also, abusiness enterprise gets the chance of producing its products and services at large scale in thecountries where the labour and raw materials rates are cheaper than its own company. Thiswould result into low cost of production which would in turn assist the organisation in sellingthe goods at the most competitive prices in the market. This attracts the customers at globallevel and producing cost effective goods also serves as a competitive advantage which furtherhelps in accelerating the growth and expansion objective of the business entity.Research methodologyResearch Philosophy: This term refers to the way or manner in which the data about the impact ofglobalization has to be gathered, analyzed and used in order to interpret meaningfulinformation for assisting research. There are two types of research philosophies that are
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