The benefits and drawbacks of a global business environment. A case study on Marks and Spencer

This research study analyzes the benefits and drawbacks of a global business environment, with a focus on a case study of Marks and Spencer. It explores the impact of globalisation, factors leading to global competition, and strategies to mitigate negative impacts. The study aims to provide insights for other retail companies and help them develop strategies for expanding into different markets.

Unit 11 – Research
Project

Table of Contents
LO 2.................................................................................................................................................1
P3 Conduct primary and secondary research by using appropriate methods..............................1
P4 Apply appropriate tools and analyse research findings and data...........................................7
LO 3...............................................................................................................................................17
P5 Communicate research outcomes for intended audience.....................................................17
Covered in PPT..........................................................................................................................17
LO 4...............................................................................................................................................17
P6 Reflect on the effectiveness of research methods applied....................................................17
P7 Consider alternative research methodologies.......................................................................18
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19

Title - The benefits and drawbacks of a global business environment. A case study on
Marks and Spencer
LO 2
P3 Conduct primary and secondary research by using appropriate methods
Introduction
The evolution of globalisation has transformed world economy and business
environment. It has provided a platform for companies to engage in global trade. Furthermore, it
has allowed them to integrate with each other and do business in different markets and offering
more variety of goods and services to people (Schroeder, 2016). They are able to identify needs
of people and enter in that market accordingly. By using technology enterprises are working in
common way. They have applied a single approach of doing trade globally. Also, globalisation
has eased the flow of business trade. By providing goods at large level, there is high rise in
revenues and profits. Alongside it, people are now getting variety of products to choose from.
So, due to this their taste and preference is changing with new products. In addition to it,
globalisation has impacted on organisations growth both in positive and negative manner.
Background
In present times, it is very essential for businesses to trade globally in order to sustain for
long time. Also, with this they collect information which is analysed to determine needs of
different people. There are been high rise in global competition due to use of technology. The
retail sector is emphasising on internet to offer goods and services to people. besides this,
organisations are acquiring with small companies to enter into market (Patra and Krishna, 2015).
This has enabled them to analyse market condition so that they can successfully operate there.
However, huge investments are been made to expand and advertise products at large level. It is
done to attract more people and compete with other. However, many organisations bring change
in market trends. So, this attracts other firms as well to operate in that specific market. It then
results in rise in competition.
Aims and objectives
Aim – To analyse the benefits and drawbacks of a global business environment. A case study on
Marks and Spencer
Objective-
 To evaluate impact of global business environment on Marks and Spencer.
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 To analyse factors that lead to rise in global competition
 To recommend strategies to minimise impact on growth
Research question
 What is the positive and negative impact of globalisation?
 What are the factors that leads to rise in competition at global level?
 How firms can mitigate negative impact in global trade?
Rationale of study
The aim of doing this research is to identify both benefits and drawbacks of globalisation
on Marks and Spencer. In addition to it, study will help in finding out how different countries are
benefited due to rise in global trade and what is its impact on economic growth.
Significance of research
The outcomes of this study can be used by other retail companies to analyse whether they
have been benefited due to globalisation or not. Also, it will be easy for other firms to develop
strategies that how they can expand in different markets.
Literature review
Impact of global business environment
As said by Deresky, 2017, in present times, companies are emerging in different
markets. It has resulted in rise in competition in the markets. Also, due to globalisation economic
growth of developing countries has improved. LPG is a concept which has revolutionised the
way of doing business. The overall operations and function of companies are modified.
Consequently, people are now able to get variety of products. There has been change in trends
and their needs. According to Lee and Gereffi, 2015, it has been difficult to identify whether
global business environment is been beneficial for companies or not. This is because some
businesses have grown rapidly whereas others growth has declined. There is rather a thriving
doubt that this concept may be good for some countries but not for others. The impact can not be
measured or evaluated. But it has been analysed large companies are dominating global
environment.
As elucidated by Najam, Runnalls and Halle, 2016, globalisation is a concept that has
transformed economies. It has opened gates for companies to increase their range of trading. It
has resulted in their growth and development. They are able to target and attract large number of
people worldwide. It has led to increase in sales and customer base.
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On contrary Andersson and et.al., 2017, due to rise in competition many small
businesses are not able to survive. Besides this, the quality of products is degraded as firms are
focusing on generating more revenue.
Benefits of globalisation
Mudambi and et.al., 2017, said that there are various benefits which firm has gained in
global environment. First is it has removed barriers of trade such as tax, tariffs, etc. Another is it
has boosted economic growth of poor nations by offering them goods at low prices. Also,
information is now exchanged more easily which has benefited in developing products and
transfer of technology. In addition, globalisation has created an open and free environment for
trade. Organisations are able to gather data and information and then produce products. Another
benefit is operations are carried out at large scale. This has resulted in reducing cost and
enhancing quality. Companies is able to hire more qualified and skilled workforce which has
enabled in developing a diversified culture. There are many international organisations formed
such as WTO, NAFTA, etc. which has allowed enterprises in free trading. By outsourcing goods
there is reduction in cost of production. Firms are getting more return on investment.
Drawbacks of globalisation
But on contrary Alon and et.al., 2016, argued that there are many drawbacks of
globalisation. It has impacted on growth of enterprises in negative way. Due to expansion of
firms, competition within market has increased, this is major drawback in business environment.
Due to it, there is high downfall in sales and profits. Thus, many firms are not able to survive for
long time. Moreover, products provided are of low quality as compared with other markets.
Many MNC are highly damaging and exploiting natural resources of nation.
Factors leading to rise in global competition
In the view of Bocken, Rana and Short, 2015, globalisation has been a boon to
businesses as well as consumers. It has influenced western economy as a whole. Many
companies have taken advantage of it to grab opportunities. The major impact of global business
is rise in competition. It has enforced firms to develop new strategies and plans to compete in the
market. There are some factors as well which has led to rise in global competition (Factors
contributed in globalization. 2018). They are described below :-
Use of technology – In era of technological advancement, businesses are using technology in
automating their operations. By using this they have expanded in different countries. This is the
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major factor due to which global competition has raised. It has enforced organisation to compete
with one another by improving quality of product (Andersson and et.al., 2017). Alongside it,
transfer or exchange of technology has enabled them to work with other companies. Therefore, it
has resulted in increase in global competition. Furthermore, they are able to communicate in
effective manner. Hence, data and information is gathered and market condition is analysed.
Economies of scale – The developing and emerging economies of countries has generated vast
opportunities for business to operate there. It has allowed country to transform their domestic
market into international one. Moreover, firms are able to find develop trade relation with local
companies. It has benefited them in analysing needs of people and offering products. Besides
this, MNC’s is focusing on economies that are struggling. Therefore, they have started operating
there.
Role of government – Another driver is role of government in global trade. The emerging
countries government has allowed foreign direct investment (FDI). It has enabled organisation to
enter through it. Also, policies related to trade tariff are been modified and formulated which has
ease way of trading with other countries (Mudambi and et.al., 2017). Furthermore, import export
licensing and foreign exchanges controls are gradually been made easier. So, it has opened
borders for companies to trade easily. Also, for social and economic welfare and growth
government is opening border for companies to enter into market.
Supply chain and logistics – This driver is playing significant role in increase in global
competition. Now, each country is highly and effectively connected with one another. So, it is
allowing companies to outsource their products easily. It has resulted in decrease in cost of
production. So, import and export of raw materials is done in effective way.
In the opinion of Aguilera and Crespi-Cladera, 2016, rise in global business environment
have empowered way of trade. It has removed tariffs and barriers between countries. In addition
to it, WTO has provided a framework through which global trade is done. There are several
guidelines and regulations which is followed by organisations. It has supported them in entering
into countries in a legal manner. However, if there occurs any issue between nation and company
it can be solved easily. So, WTO may be considered as another factor due to which global
competition has risen. It has eased the flow and structure of trade globally.
Research methodology
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Research philosophy – It contains a framework on which overall research is based. It describes
the way in about overall purpose of research. The scholar can use different philosophies like
realism, pragmatism, interpretivism, etc. (Katsirikou and Lin, 2017) In pragmatism study is
based on relevant concepts. Realism is based on scientific approach through which knowledge is
developed. Whereas interpretivism is applied to analyse quantitative data to access reality about
topic. In context to present study, scholar will use positivism research philosophy. It will help in
testing hypothesis related to benefit and drawback of globalisation.
Research approach – It refers to plan or procedure which states how data will be collected and
analysed. This is useful in conducting study in systematic manner and interpreting data as well.
Generally, deductive, inductive and abductive are common approaches used. In deductive
hypothesis is developed on basis of research questions. In inductive theories are concluded which
is based on observations. Abductive is not used commonly in study as it is based on empirical
phenomena. In present study, deductive approach will be used. it will help in testing whether
globalisation has benefited company or not.
Research type- It is the base of study which is related to collection of data. The information
gathered by scholar is useful in producing relevant results. Research type gives description about
which type of data will be collected. Basically, qualitative and quantitative are two research
types. Qualitative is entirely based on theoretical concept as no numerical. whereas in
quantitative statistical data is produced.
The present study will be based on qualitative type.
Data collection- It is a way or process of collecting data. It is most important element in
methodology because overall results are based on this (Rix and et.al., 2019). The data needs to be
gathered from authentic and reliable sources and then analysed. Primary and secondary are two
data collection techniques. In primary new data is gathered from survey, interview, etc. while in
secondary information is gathered from previous study, articles, etc. Here, researcher will collect
data through both primary and secondary methods. The primary will be gathered through
questionnaire and secondary from sources like journals, articles, etc. it will be easy to identify
impact on M&S by gathering fresh data.
Sampling – In order to collect data, scholar needs to select participants by dividing population
into categories. This process is known is sampling. For this there are different data sampling
techniques available which helps in doing so. Usually, probability and non probability are
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common techniques. They are further divided into many like random, stratified, cluster, etc. In
current research, the researcher will use random sampling method and sample size will be 20
employees. Random method is taken because it helps in easy selection and requires less time.
Data analysis- It refers to interpreting data into relevant information so that aims and objectives
are attained. The data must be analysed in proper manner so that results generated are accurate
and precise (Lourie and Rata, 2017). Also, researcher should know about various tools and
which will be appropriate in interpretation. For present research, data analysis will be done by
using thematic analysis method.
Ethics – The researcher must follow certain ethics while conducting study. They should not be
neglected. In this, first of all dignity of participants will be maintained. Also, confidentiality and
privacy of data will be ensured, it will not be shared with third party or person. Moreover,
consent of respondents will be taken prior so that open and transparent communication takes
place. At last they will be asked to leave any question if they wish not to answer that.
Cost – For conducting study, capital is required. It is necessary that researcher gives estimation
of funds that is required. For present research total cost required is approx. $1250.
Access – In this researcher must have the access for collecting and analysing data. For present
study researcher will follow a systematic way for this. It will help in getting specific and precise
results.
Time- It is also a factor that can affect the research. The researcher must develop timescale so
that activities are completed on time (Reilly and Jones 2017). If there is any delay in conducting
research it will result in increase in time as well as cost.
Activity 1 to 2
Week
3. to
4
Week
5 to
6
Week
7 to 8
Week
9 to
10
Week
11 to
12
Week
13 to
14
Week
15 to
16
Week
17 to
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Week
19 to
20
Week
Identify
research topic
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Review of
Literature
Drafting
Methodologies
Complete
Proposal
Designing
questionnaire
Collection of
data
Analysing data
and
interpretation
Discussion and
Conclusion
Submission
P4 Apply appropriate tools and analyse research findings and data
Questionnaire
Name:
Contact number:
Email:
1) Do you think that globalisation has benefited in growth of M&S?
 Yes
 No
 Not sure
2) What strategies has been implemented in expansion of company in other countries?
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 Market expansion
 Diversification
 Acquisition
3) Do you think technology has helped in growth of M&S at global level?
 Yes
 No
 Not sure
4) Has globalisation negatively impacted on competitive advantage of M&S in different
countries?
 Yes
 No
 Not sure
5) Does there is decline sales and profits of M&S due to global business environment?
 Yes
 No
 Not sure
6) Is M&S able to compete with other big brands in retail sector?
 Yes
 No
 Not sure
7) Does data and information collected benefited in identifying needs of customers and
producing new products?
 Yes
 No
 Not sure
8) What are the drivers that has led to rise in global competition?
 Technological advancement
 Economies of scale
 Growth in MNC’s
9) Is M&S able to attract and gain more customers due to rise in global business?
 Yes
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 No
 Not sure
Theme 1 Globalisation benefited in growth of M&S
Q-1 Do you think that globalisation has benefited in growth of M&S? Frequency
Yes 15
No 3
Not sure 2
Total 20
Interpretation – The researcher conducted study at M&S to analyse benefit and drawbacks of
global business environment. For this questionnaire method was used and data of 20 employees
were collected. By interpreting data, it was identified that 15 said globalisation has benefited in
growth of company, 3 said no and 2 was not sure about it. Thus, it can be stated that M&S is
trading at global level. They are able to generate more sales and profits.
Theme 2 Strategies implemented in expansion of company in other countries
Q- 2 What strategies has been implemented in expansion of company
in other countries?? Frequency
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Market expansion 8
Diversification 7
Acquisition 5
Total 20
Interpretation – In order to answer research questions, study was conducted in M&S. The topic
was to examine benefit and drawback of global business environment. The data was collected
through questionnaire method and 20 employees were selected. By interpreting data, it was
evaluated that 8 employees said M&S implemented market expansion strategy, 7 said
diversification was applied and 5 said acquisition was used. Therefore, it can be analysed that
different strategies are been implemented according to market condition.
Theme 3 Technology helpful in growth of organisation at global level
Q-3 Do you think technology is helpful in growth of organisation at
global level? Frequency
Yes 12
No 4
Not sure 4
Total 20
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Interpretation – : A study was conducted at M&S to analyse the benefits and drawbacks of a
global business environment. For this 20 employee were selected and data was gathered through
questionnaire. By interpreting data, it was identified that out of 20, 12 employees said
technology is useful in expansion of company at global level, 4 said no and 4 did not gave any
answer. From this it can be stated that technology plays a vital role in entering into other
markets.
Theme 4 Globalisation negatively impacted on competitive advantage of company in different
countries
Q- 4 Has globalisation negatively impacted on competitive advantage
of company in different countries? Frequency
Yes 10
No 4
Not sure 6
Total 20
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Interpretation - An investigation was carried out in M&S to study the benefits and drawbacks of
a globalisation. The primary data was gathered through questionnaire and 20 employees were
selected via random sampling. By analysing data from questionnaire, 10 employees said that
global environment has negatively impacted on competitive advantage of firm, 4 said no and 6
was not sure. Hence, it can be concluded that due to global trade there is negative impact on
growth and development of company.
Theme 5 Decline in sales and profits of M&S due to global business environment
Q-5 Does there is decline sales and profits of M&S due to global
business environment? Frequency
Yes 9
No 4
Not sure 7
Total 20
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Interpretation – The researcher conducted an investigation at M&S to analyse benefit and
drawbacks of global business environment. Data was gathered by using questionnaire method.
Also, 20 employees were selected for the same. By evaluating data, it is stated that out of 20, 9
said sales and profits has declined. 4 said no and 7 did not gave any answer. From this it can be
stated that in some countries sales of M&S is reduced. This is because of rise in global business.
Theme 6 M&S compete with other big brands in retail sector
Q-6 Is M&S able to compete with other big brands in retail sector? Frequency
Yes 13
No 5
Not sure 2
Total 20
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Interpretation – In order to attain aims and objectives, an investigation was done in M&S to
examine pros and cons of global business. For this 20 employees were taken as sample and data
was gathered by questionnaire. By interpreting data, it was identified that 13 respondents said
that M&S is competing with other big brands in retail sector, 5 said no and 2 was not sure. Thus,
globalisation has increased competition in market. It has been difficult for companies to sustain.
Theme 7 Data and information collected benefited in identifying needs of customers and
producing new products
Q-7 Does data and information collected benefited in identifying
needs of customers and producing new products? Frequency
Yes 15
No 2
Not sure 3
Total 20
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Interpretation – The researcher conducted study at M&S to analyse benefit and drawbacks of
global business environment. For this questionnaire method was used and data of 20 employees
were collected. The data was analysed and it was observed that 15 respondents said that data
gathered is used in developing new products, 2 said no and 3 was not sure. Therefore, global
business has enables in providing a lot of useful information for companies to develop new
products. With this they are able to attract more customers.
Theme 8 Drivers that has led to rise in global competition
Q-8 What are the drivers that has led to rise in global competition? Frequency
Technological advancement 8
Economies of scale 6
Growth in MNC’s 6
Total 20
15

Interpretation - An investigation was carried out in M&S to study the benefits and drawbacks of
a globalisation. The primary data was gathered through questionnaire and 20 employees were
selected via random sampling. From interpreting data, it was identified that 8 participants said
due to technological advancement global competition is rising, 6 were in favour of economies of
scale and 6 in growth of MNC’ s. So, it is evaluated that retail organisations are using technology
to sell products. It has enabled in offering variety of options for people to choose from.
Theme 9 M&S attracted and gained more customers due to rise in global business
Q-9 Is M&S able to attract and gain more customers due to rise in
global business? Frequency
Yes 16
No 2
Not sure 2
Total 20
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Interpretation – In order to attain aims and objectives, an investigation was done in M&S to
examine pros and cons of global business. For this 20 employees were taken as sample and data
was gathered by questionnaire. It was observed that 16 respondents said yes more customers are
gained by firm, 2 said no and 2 was not sure. Therefore, it is said that global trade has enabled
retail companies to attract more customer by entering into various markets.
LO 3
P5 Communicate research outcomes for intended audience
Covered in PPT
LO 4
P6 Reflect on the effectiveness of research methods applied
By conducting study, I learned various research skills and knowledge. I got an overview
about how overall research is been conducted and what methods are been used in it. Also, I was
able to identify different data collection methods and sampling techniques used. Moreover, I
learned how digital technology has benefited small business. What tools and equipment’s are
used and what are their features. The problem which I faced was to interpret data as I was not
having any experience in it. due to this my performance was affected. So, in order to overcome
this problem, I took help of my friend who have done research projects. Also, I searched on
internet about various methods on how to analyse data.
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P7 Consider alternative research methodologies
There were many other research methods which can be used. In this pragmatism
philosophy could have been used. It would help in focusing only on single view point. Apart
from this, inductive approach can be used in study. It would have helped in answering research
question. Moreover, secondary data collection method can be used. Through this, it would have
been easy in analysing what other authors have said and studied. Then, research could have
conducted. In selecting sample, cluster sampling can be used. It will be easy in developing
clusters and then selecting random samples from it. Also, particular area can be specified in it.
This would help in including managers, directors, etc. as well.
CONCLUSION
From research it can be concluded that globalisation has allowed business to enter in
different markets. Also, it has generated vast number of opportunities to grow and develop. The
internet has become a common platform for every retail company to do business there. With help
of it, they are able to gather lot of information about people. Global business has removed tariff
and trade barriers of doing business. Thus, they are able to generate more profits. But due to rise
in competition quality of products is degraded.
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REFERENCES
Books and journals
Aguilera, R.V. and Crespi-Cladera, R., 2016. Global corporate governance: On the relevance of
firms’ ownership structure. Journal of World Business. 51(1). pp.50-57.
Alon, I. and et.al., 2016. Global marketing: contemporary theory, practice, and cases.
Routledge.
Andersson, U. and et.al., 2017. Technology, innovation and knowledge: The importance of ideas
and international connectivity. Journal of World Business. 51(1). pp.153-162.
Bocken, N.M.P., Rana, P. and Short, S.W., 2015. Value mapping for sustainable business
thinking. Journal of Industrial and Production Engineering. 32(1). pp.67-81.
Deresky, H., 2017. International management: Managing across borders and cultures. Pearson
Education India.
Katsirikou, A. and Lin, C.S., 2017. Revealing the “essence” of things: Using phenomenology in
LIS research. Qualitative and Quantitative Methods in Libraries. 2(4) pp.469-478.
Lee, J. and Gereffi, G., 2015. Global value chains, rising power firms and economic and social
upgrading. Critical perspectives on international business. 11(3/4). pp.319-339.
Lourie, M. and Rata, E., 2017. Using a realist research methodology in policy
analysis. Educational Philosophy and Theory. 49(1). pp.17-30.
Mudambi, R. and et.al., 2017. Global connectivity and the evolution of industrial clusters: From
tires to polymers in Northeast Ohio. Industrial marketing management. 61. pp.20-29.
Najam, A., Runnalls, D. and Halle, M., 2016. Environment and Globalization: Five Propositions
(2010). The Globalization and Environment Reader, p.94.
Patra, S. and Krishna, V., 2015. Globalization of R&D and open innovation: linkages of foreign
R&D centers in India. Journal of Open Innovation: Technology, Market, and
Complexity, 1(1), p.7.
Reilly, T.M. and Jones III, R., 2017. Mixed methodology in family business research: Past
accomplishments and perspectives for the future. Journal of family business
strategy. 8(3). pp.185-195
Rix, E.F. and et.al., 2019. Indigenist and decolonizing research methodology. Handbook of
Research Methods in Health Social Sciences, pp.253-267.
Schroeder, R., 2016. Big data business models: Challenges and opportunities. Cogent Social
Sciences, 2(1), p.1166924.
Online
Factors contributed in globalization. 2018. [online] Available through : <
https://www.tutor2u.net/business/reference/factors-that-have-contributed-to-globalisation>
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