Effects of Globalization on Culture and Operations: A Case Study of Cafe Nero

This study focuses on the effects of globalization on the culture and operations of Cafe Nero. It examines the challenges faced by the organization and the influence of globalization on its business. The case study provides insights into the role of globalization within an organization, the challenges faced at a global level, and the impact on culture and operations. The chosen organization, Cafe Nero, is an Italian styled coffee house operating globally.

The Effects of globalization on culture and
operations of an organization The case
study of Cafe Nero

Table of Contents
Chapter 1: Introduction..............................................................................................................2
1.1 Background of a research topic........................................................................................2
1.2 Background of research organization...............................................................................2
1.3 Research rationale............................................................................................................3
1.4 Research questions...........................................................................................................3
1.5 Research aim and objectives............................................................................................3
Chapter 2: Literature Review.....................................................................................................4
2.1 Introduction......................................................................................................................4
2.2 Theme 1: Role of globalization within an organization’s operations..............................4
2.3 Theme 2: Challenges that Café Nero faces while operating at global level....................5
2.4 Theme 3: Analyze the influence that globalization brings on the culture and operation
of Café Nero...........................................................................................................................6
2.5 Conclusion........................................................................................................................7
Chapter 3: Research Methodology.............................................................................................9
3.1 Research process..............................................................................................................9
3.2 Research Approach..........................................................................................................9
3.3 Research Strategy...........................................................................................................10
3.5 Research instrument or tools..........................................................................................10
3.6 Sampling........................................................................................................................10
3.7 Ethical Implications.......................................................................................................10
REFERENCES.........................................................................................................................11

Chapter 1: Introduction
Globalization is the term which is used to describe how the trade and technology have
made the entire world into more connected and interdependent place. Therefore, it is stated in
economic terms that globalization describe an interdependence of nations around the globe
that helps to foster the free trade. In the same way, current study is also based upon the
globalization and it effect upon the culture and operation. The chosen firm for this report is
Café Nero who offer range of product to different culture people. Study shed a light on the
importance of globalization and the challenges that cause negative impact upon the
company’s growth and success.
1.1 Background of a research topic
Globalization is all about the process or a flow of information, technology and goods
among countries and consumers. With the help of globalization, company is also benefitted
the lower prices to their company and there is an increased global investment which are
consider as a benefit for the system. Not only this, it is also help to increase the
communication and improved transport which effectively reduce the barrier between
countries (Rowley, 2017). Thus, the study is also mainly focus on the impact of globalization
upon culture and operations of a business. Moreover, there are many advantages of using
globalization within a workplace such that it access to new culture and when a company start
involving within another country, then it start offering innovative products and there is a
spread of technology which definitely help to attract the range of customers towards it.
On the others side, there are some factor which affected by the globalization such that
culture and operations which are performed by them. That is why, it is stated that it have both
positive and negative aspect which in turn brings many changes, so company have to deal
with the same, the study provide a direction through which the challenges of globalization
may overcome easily without any error.
1.2 Background of research organization
The chosen firm for the study is Café Nero which is an Italian styled coffee house and its
headquarter is in London. Company also focus on the quality of the products and that is why,
it offer the range of product to customer by meet the demand of customers. Currently the
company have many restaurants and it is operating in more than thousands of location and
more than 5000 employees are working under this. Therefore, company also makes sure that

it offer the reward system for customers and also offer many loyalty schemes which in turn
attract the range of customers towards it. Moreover, having a brand image at international
level clearly shows that the company is offering the best variety of products but in the same
time, it also faces many challenges while dealing globally. So, by analyzing the factors that
affect the globalization will also make sure that how the company may overcome the factors
and easily expand the business sat global level too.
1.3 Research rationale
The rationale behind choosing the specific topic is such that research have their own
interest to study on the particular topic. Such that with the help of the study, scholar also gain
enough knowledge with regards to globalization. Also, it is stated that study on this particular
topic further assist to determine the challenges which a company face while operating at
global level. Moreover, another rationale for choosing this topic is such that it assist to
analyze the effect that a company has confronts to operate its business at global level. As the
entire study is based upon the globalization and that is why, with the help of the present
study, researcher determine the factor that affect the business at global level,
1.4 Research questions
 Describe about the major role that globalization plays within an organization
operations?
 What are the several challenged that Café Nero faces while operating at global level?
 Explain about the major influences that globalization bring on culture and operations
of Café Nero?
1.5 Research aim and objectives
Aim: “To investigate about the effect that globalization have on operations and culture of an
organization : A study on Cafe Nero”
Objectives:
 To identify the role of globalization within an organization’s operations
 To ascertain several challenges that Café Nero faces while operation at global level.
 To determine the influences that globalization bring on culture and operations of café
Nero.


Chapter 2: Literature Review
2.1 Introduction
Literature Review is the summary of a previous research on a specific topic and in
this scholarly articles, books and other sources are chosen for the particular area in order to
gain some knowledge. Also, in the current section, using opinion and views of author,
provide a description, summary and evaluation of each source so that it will help to get the
answer of research question as well. In the same way, this section will help to analyze the
importance of globalization and impact upon the business which may affect the overall
business. For that, specific books and articles are chosen which in turn assist to examine the
challenges that company face during globalization.
2.2 Theme 1: Role of globalization within an organization’s operations
In the view of Suki and et.al., (2020) globalization leads to increase the competition
and it is mainly related to the product and service which company offered to their customers.
Thus, it is stated that globalization creates both positive and negative impact upon the
business operations. Such that the company have to deal with diverse range of people and this
in turn help the business to increase the innovative skills which help a business to raise the
brand image at international level. On the other side, Song and Lee (2020) argued that with
every country have their own culture and ritual, but it is depend upon the company where it
wants to expand the business. That is why, fluctuation is prices is also cause negative impact
upon the business and its operation such that due to increase in competition, company have to
change or lower down the price of a firm and that is why, it cause opposite impact upon the
business. But it does not mean that the business may lower down the price of a product
because it further creates negative impact upon business. Like, it reduced the ability to sustain
the social welfare in their countries.
Also Toth, Rabek and Strapekova (2020) present their views that globalization also
lead to cause foreign investment which further creates positive impact upon business and its
operations. Like there are many companies who have invested in outer company which Café
Nero also done, but at that time, company should make sure that with the help of skilled labor
workforce, company may easily provide innovative product and services which in turn assist
to meet the demand of customers. While Asongu and Odhiambo (2020) critic that due to
instability in prizes, company also affect the overall business which creates adverse impact
upon the business operations too. Further, when the price of a company is lowered, then the

overall financial stability of the company also got affected. That is why, it can be stated that
company should develop strategies and to stay strong in the competitive market, there is a
need to improve the quality of offered product and services which do not cause any negative
impact upon business.
2.3 Theme 2: Challenges that Café Nero faces while operating at global level
According to Salnikova and Grunert (2020) there are many challenges which
company face while deal at global level such that language and cultural barrier is consider the
top and biggest factor which affect the business. As company who deal at global level faces
because every people have their own language and due to language barrier, most of the time
company do not understand what employees are tries to say and this in turn affect the results
in negative manner. For example, Café Nero is also operating at different country and that is
why, it also faces the same issue because every country have their own language that is why
company should recruit diverse employees which in turn assist to solve the problem up to
some level. Further, dealing at global level means let people understand about the new offers
made by company and for that advertisement is consider the best option but with a cultural
differences, these advertisement requires a more effective and accurate translation so that the
message is conveys to all.
On the other side, Mäkelä and et.al., (2020) stated that local competition is consider
another challenge which also affect the business operation while dealing at global level. As
there are many local street foods which offer the same product which Café Nero offers and
due to low prices, most of the time customer prefer to use the product. On the other side,
Starbuck is another strong competitor who also offer range of coffee to their customers and
also have a strong brand image at international level too. That is why, to deal with global
level, company should have USP which in turn assist to meet the define aim and objectives in
better manner. In addition to this, it is also analyzed by Vasyurenko and et.al., (2020) that
political and economic risk is another type of risk which also affect the business at global
level. Like, there must be political stability within a country otherwise it do affect the results
of business. For example, Café Nero wants to establish the business at China, but due to not
having an political stability within a country, then company is not operating successfully
which in turn affect the results of a company in negative manner. In the same way, if there is
an inflation rate or fluctuation in the currency then company must have to lower down the
price of a business which in turn affect the results and financial performance in opposite
manner.

Rybansky and Janos (2020) present their views that international compliance and
regulatory issues are also consider another challenge which the company faces while dealing
at global level such that learning at different tax codes and business regulation is consider a
challenging for the company and that is why, most of the company avoid establishing a unit
and chose to direct exporting. As every country have their own rules and regulation and that
is why when a company operate within new country, it is a responsibility of a firm that they
should understand the laws and culture of a firm so that they will easily manage and sustain
the brand image at global level. During this time, the responsibility of HR and a team is
affected because they should collect enough information with regards to other country and
also apply the rules and regulation as per needed which in turn leads to creates positive
impact upon business.
Hence, it is analyzed that there are many challenges which a company face while
operating a business at global level. That is why company should have to manage the things
and this in turn assist to lead a business at global level. In addition to this, Café Nero may
also make an effective planning in order to manage the things before entering into other
country so that it will not create any negative impact upon business and it successfully launch
into new country as well.
2.4 Theme 3: Analyze the influence that globalization brings on the culture and operation of
Café Nero
Globalization creates a direct impact upon the business culture and its operations and
it is also supported by Meyer (2017) that exposure to foreign cultural goods frequently brings
about the changes in local cultures and values, tradition. These changes are affect in negative
manner like, there is a disruption within a traditional producer and also many people also
believed that a people’s exposure to foreign culture can undermine their own cultural identity.
Therefore, it is stated that somehow globalization leads to loss the local culture and this in
turn also affect the overall operations. As it is clearly stated that language and cultural
nuisance is consider the biggest challenge for the system and that is why, when company
come from different country and establish in new business which means that the culture may
affected. But on the other side, there are some advantages as well, like company got a chance
to understand the culture of other people and this in turn assist to meet the define aim and
objectives.

Moreover, Moulton and van de Ven (2018) also stated that globalization means that
offering product and services to other countries and that is why, it further assist to examine
different religion and this in turn help the company to examine the culture of different people
and understand their language which in turn assist to minimize the clashes between different
people. Moreover, globalization also influences the operations of a business such that with
the help of an effective business operations company is able to meet the define aim (Lacal-
Arántegui, 2019). Like, Café Nero is also planning to expanding a business and that is why, it
has to recruit the people on the basis of many advance techniques and for that it will help to
provide innovative product and services which in turn assist to meet the define aim. Also, this
aid to creates positive impact upon the business operation like, people always prefer to use
best and innovative product and that is why, Café must present the services in such an
innovative way that helps to creates a positive impression upon business. On the other side,
Buckley, Doh and Benischke (2017) critic that there is a progressive reduction of barrier for
trade and foreign investment by the government and this further leads to opening new market
by an international companies which are exported them and this is also affect the business
operation in positive manner. It is due to business operations like Research and development
department start doing research on the demand of the customers and this in turn also help to
meet the demand which in turn assist to raise positive impact upon business.
In addition to this, Crane and et.al., (2019) provide their views and stated that though
globalization creates a positive impact upon the business by increasing competition and that
is why, it helps to meet the define aim and this in turn leads to enhance the business
operations as well. Moreover, it also creates an opportunities for the business to open in
market and also communicate with other partners and suppliers in order to manage the
network in efficient and effective manner. So this is clearly reflected that influence of
globalization upon the business operations is positive and even there are many chances where
company faces negative impact but it is also handle by the company by applying different
ways (Abyad, 2017). Hence, globalization also creates a new system of politics and it also
encourage the people to involve within it in order to get better chance. Also, globalization
may also affect the operations in opposite manner when the employees are not highly skilled
to handle the situation, otherwise it do not cause any negative impact upon business.
2.5 Conclusion
By summing up above section it has been concluded from the literature review that
globalization has its own disadvantage and advantage, but it is depend upon the company

how it uses the opportunities. Also from the above, it is also concluded that the role of
globalization is effective upon the business operations like it provide an innovative product to
their customers and also lead to sustain the brand image at international level. Even through
there are many challenges which a company faces while dealing at global level such that
cultural and language nuisance and legal laws and regulation, local competition etc. While on
the other side, it has been concluded that globalization also influence the business operations
and culture in negative as well as positive manner. Like Café Nero also operate in many
countries but it also have to face many challenges in order to sustain the brand image at
international level but having a diverse workforce, company is able to manage the challenges
and creates positive impact upon its operations as well.

Chapter 3: Research Methodology
3.1 Research process
In the current study, researcher conduct the entire study in step by step and that is
why, firstly, researcher select the area in which the research is conduct which is globalization.
Next, aim, objectives, research questions are formulated which help to conduct the research
step by step. In third stage, literature review is conducted in which opinion of different
authors is taken which in turn assist the meet the research question and it is also known as
secondary research as well. Further, selection methods of data collection is done and for the
current study researcher chooses both data collection methods which help to meet the define
aim and objectives in better manner (Kumar, 2019). Further, for primary research prepare the
questionnaire and forward it to the selected sample size in order to meet the define aim and
objectives as well.
In next stage, collected data is analyzed in order to clearly interpret the results in order
to meet the define aim. Further, at last stage, the entire study is concluded in proper manner
so that researcher summarize the overall study in better way i.e. to determine the impact of
globalization upon the culture and operations of a business.
3.2 Research Approach
It is the plan and procedure of a research where researcher span the steps from a broad
assumption into a detailed method of data collection, analysis and interpretation. Through
research approach, scholar extract the best possible outcome from many. Under this method,
there are three main research approach i.e. Inductive which is start from the observation and
theories which are proposed towards an end of a research, another type is deductive which is
concerned with a developing a hypothesis which is based upon the existing theory (Mohajan,
2018). Through this researcher take the research particular to general. Last is Abductive
research approach which develop to minimize the weakness of deductive and inductive.
Among all, Deductive research has been opted by the researcher in which possible
outcomes are extracted out of many in order to determine the exact answer of a research
question. Further, it is also analyzed that by using this study, scholar may also analyze the
effect that globalization have on the operations and culture of a firm. So, this in turn also
meet the define aim and conduct the entire study in precise manner as well.

3.3 Research Strategy
A research strategy is an overall plan for conducting a research strategy in better
manner. Through an effective research approach, scholar guide a researcher in planning,
executing and monitoring the study. Though there are different types of research strategy
which are used within a study such that interview, questionnaire or statistical methods.
Among all, researcher chooses survey method under quantitative method in which
questionnaire is designed which in turn help to meet the define aim. Also with the help of
survey method, proper information is collected from the sample size in order to examine the
results or interpret the results in better manner (Fletcher, 2017). Also, in questionnaire
relevant questions are asked from the respondents which in turn help to meet the define aim
and conduct the overall research in effective manner as well.
3.4 Research Methodology
Research methodology plays an important role in the success of an entire study such
that it is critically evaluate the entire research and conduct the plan in better manner as well.
Also, it is a procedure and techniques which is used to determine the exact information about
a topic.
3.5 Research instrument or tools
3.6 Sampling
3.7 Ethical Implications

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