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

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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