The Impact of Globalization and Digital Technology on Asda

Desklib provides past papers and solved assignments for students. This project analyzes Asda's response to globalization and digital technologies.

PART 1: IMPACT OF GLOBALISATION
PART 2: IMPACT OF DIGITAL TECHNOLOGY
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Executive Summary
The assignment is based on impact of globalisation and impact of digital technology on retail
industries. The research project has selected ASDA as retail industry. Asda is a British
supermarket retailer that is having headquarters in Leeds, West Yorkshire selling groceries to
home ware. This research has focused on conducting mixed method of research for collecting
data. Both primary and secondary modes of data collection have been performed. A detailed
discussion of the technology and globalisation has been done through collection of information
from secondary sources.
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Table of Contents
Introduction......................................................................................................................................5
Part 1: IMPACT OF GLOBALISATION.......................................................................................5
LO1: Examining appropriate research approaches and methodologies..........................................5
1. Introduction [P1]..........................................................................................................................5
Title..............................................................................................................................................5
Introduction..................................................................................................................................5
Overview......................................................................................................................................5
Main objectives............................................................................................................................6
Rationale......................................................................................................................................6
Significance..................................................................................................................................6
2. Literature Review [P1, D1]..........................................................................................................7
Concept of globalisation..............................................................................................................7
Importance of globalisation.........................................................................................................7
Effects of globalisation................................................................................................................7
Theories of globalisation..............................................................................................................8
Theory of Liberalism...................................................................................................................8
Theory of political realism...........................................................................................................9
Challenges of globalisation........................................................................................................10
LO2: Analysis of research relevant to business research project [P2, P3, P4, M1, D2]..............10
3. Methodology..............................................................................................................................10
Justification of the methods.......................................................................................................11
Proper methods for cost, ethical issues, and access...................................................................12
Research limitations and pitfalls................................................................................................12
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Application of analytical tools for analysing findings...............................................................12
Evaluation of the research methods...........................................................................................13
4. Timeline.....................................................................................................................................13
PART 2: IMPACT OF DIGITAL TECHNOLOGY.....................................................................15
LO1: Appropriate research approaches and methodologies..........................................................15
1. Introduction [P1]........................................................................................................................15
Research questions:....................................................................................................................15
Research hypothesis:..................................................................................................................15
2. Literature review [P1, D1].....................................................................................................15
3. Methodology [P2, M1]...........................................................................................................17
4. Timeline.....................................................................................................................................18
LO2: Conduct and analyse relevant research for the business project..........................................18
5. Data Analysis [P3, P4, M2, D1]................................................................................................18
Limitations of data collection:...................................................................................................20
LO3: Communicate research outcomes to stakeholders................................................................21
6. Conclusion and recommendation [P5, M3, D2]........................................................................21
LO4: Reflection on application of concepts and methodologies [P6, P7, M4, D3]......................21
Presentation of findings.................................................................................................................23
Conclusion.....................................................................................................................................23
References......................................................................................................................................24
Appendices....................................................................................................................................27
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Introduction
The developments in the technology have been considered as the driving force and primary
facilitator for most of the processes of globalisation. Technology has been defined as the
socialization knowledge of delivering services and goods. In this study, the effects of
globalisation and digital technology on Asda has been analysed through primary and secondary
method. Asda is a British supermarket retailer that is having headquarters in Leeds, West
Yorkshire selling groceries to homeware. A detailed discussion of the technology and
globalisation has been done through collection of information from secondary sources.
Part 1: IMPACT OF GLOBALISATION
LO1: Examining appropriate research approaches and methodologies
1. Introduction [P1]
Title
What are the effects of globalisation in Asda?
Introduction
Globalisation has been termed as the service and industrial activities that has helped in
emergence of global brands, FDI and greater off shoring and outsourcing of production. In this
study, the effects of globalisation in Asda will be evaluated through objectives and rationale. The
reason of choosing the topic and its importance in business has also been evaluated.
Overview
Asda is a British supermarket retailer that is having headquarters in Leeds, West Yorkshire. It is
the third largest supermarket chain in the UK after Sainsbury and Tesco. The company is
providing best products in affordable rates. It sells groceries, poultry products and clothings
(asda.com, 2018). It is having 165000 employees in the current year. Its regular earnings have
been up by 2.3% (theguardian.com, 2018). Its sales have increased to £22.2bn by 2.6%.
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However, the profits of the company have fallen to 10% due to tough competition and high
inflation rates. Globalisation has helped Asda to bring in innovative and good quality products to
its customers. It has more than 370 stores worldwide (corporate.asda.com, 2017).
Main objectives
 To understand the concept underpinning globalisation
 To analyse the factors of globalisation in Asda
 To evaluate the challenges of globalisation in Asda
 To review that various strategies for overcoming challenges in Asda
Rationale
The rationale for choosing this topic is to highlight the effects of globalisation on Asda and the
ways it can improve its practices for sustainability. Profits have fallen to £712.6m from £791.7m
after the takeover by Walmart. Tough competition in the retail market has resulted in fallen of its
profits by 10% than Sainsbury. The company has been named as the worst retailer in treating of
its suppliers and use of scarce resources (theguardian.com, 2017). It has been alleged that the
partnership with Sainsbury's will result in increasing food wastage and carbon footprint. High
rate of inflation in the event of Brexit, rising transport prices and reduction in the household
expenditure has resulted in decreasing profits of Asda. Brexit has resulted in shortage of workers
due to new immigration laws and exit of employees from the UK. In addition, its partnership
with Sainsbury is going to cause food wastage and increasing carbon emissions.
Significance
This study will be significant in understanding the current problems of globalisation in the retail
sector. It will help the managers to assess the steps and strategies that can help in overcoming the
negative effects of globalisation. It will give an insight to the managers regarding the perceptions
of the employees while working in a globalised economy.
2. Literature Review [P1, D1]
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Concept of globalisation
Globalisation can be defined as the dispersion of services and industrial activities geographically
in the area of sourcing of factor inputs, cross border networking, joint ventures, sharing of assets
and distribution and production. Scott (2015) stated that it has resulted in increased competition
and an financial and economic shift to emerging economies from the developing ones. It helps in
promoting international cooperation, global interdependence and cultural awareness. The
multinational companies have been successful for implementing innovative business models for
staying ahead of competition.
Importance of globalisation
Globalisation helps in liberating the protocols of imports and welcoming the foreign investment
in those sectors that are most important for driving an economy. Končar and Leković (2016)
commented that it implies that the countries have the ability to liberalize their rules of visa so
that people and goods can move freely from one country to another. It gives a comparative
advantage as the countries that are effective in producing particular goods that can be exported
for earning good revenue. Globalisation has helped the firms to improve their revenue and sales
by exporting their products and services (Cernat and Mustilli, 2018). This in turn has helped in
the growth of the economy. Stiff competition in the economy is the result of globalisation as the
firms compete with one another for investing in best technology and giving high quality
products. In addition, globalisation implies that the countries have to abide by the guidelines of
World Trade Organisation (WTO).
Effects of globalisation
Globalisation helps in improving trade of services and goods across borders, emergence of
international brands, improving migration levels of labour among the countries, greater off
shoring and outsourcing of production and improvement in foreign direct investment. In the
words of Cernat and Mustilli (2018), the concentration of the firms in particular geographical
economies have resulted in investment in other countries where the level of competition is high.
Employees and workers rights have improved in this era of globalisation as the companies have
become more concerned of the globalised effect on legal ramifications. However, Durand and
Miroudot (2016) argued that globalisation has resulted in increasing environmental damage with
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the increased use of fossil fuels and carbon footprint. Due to increasing level of competition, the
prices have fluctuated. Jobs have become increasingly insecure due to globalisation as the
companies seek to hire migrant skilled and trained workers. Due to this, the people either are
losing jobs or are leaving them.
Theories of globalisation
Theory of Liberalism
Figure 1: Theory of Liberalism
(Source: Influenced by Hopper et al. 2016)
Liberalism perceives the globalisation process as the extension of the modernisation in the
market. In the initial level, it is regarded as the result of the desires of human for political liberty
and economic welfare. Hopper et al. (2016) stated that technological advancement enhances
globalisation as it helps the firms to improve their working conditions. Proper institutional and
legal arrangement enables market to develop as per the globalisation in order to meet the
emerging needs. It puts emphasis on the necessity of making an institutional infrastructure that
can support globalisation. This has resulted in technical standardisation, arrangement of
translation of languages, contract laws, property rights and harmonization in administration.
However, this theory has been criticized for its inability to consider the social forces that help in
globalisation.
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Theory of political realism
Figure 2: Theory of political realism
(Source: Learner)
This theory states that the states power and national interest drives the globalisation. Stability in
the world and international rules can help in reaping the benefits of globalisation. globalisation
calls for international order where the countries cam cooperate with one another for getting the
benefits of an integrated market. As described by Cernat and Mustilli (2018), Concentration on
the hegemon of states can help in minimising power struggles and class conflicts as all come
together for establishing the world order. Effective communication and construction helps in
getting desired and effective workforce for improving their legal and corporate structure.
However, this theory has been criticised for its stressing on the power and structure of the stera
and ignoring the interference of the humans in restoring the global order.
Challenges of globalisation
Mobility of the jobs in one of the challenge of globalisation as the organisations may find it
difficult to get the required trained and skilled workers. As per the view of Potrafke (2015), the
most important challenge of the globalisation is the disturbance in one state can hamper the
stability of other. As for example, the decision of the UK to exit from EU has resulted in market
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ConfrontationCooperationInteraction

uncertainties all over the world. Multinational companies are facing the problems of shortage of
skilled staff due to their leaving of the UK. New immigration rules have created uncertainties
among the employees and the firms. In another instance, the increasing oil prices has resulted in
the increasing inflation rate which has resulted in decreasing household expenditure. The most
affected sector due to this is the retail as it faces a drastic decrease in sales. Globalisation comes
with a challenge of right technological implementation and corporate structure that can help in
driving sustainability.
LO2: Analysis of research relevant to business research project [P2, P3, P4, M1, D2]
3. Methodology
Figure 3: Onion
(Source: Saunders et al. 2012)
Research methodology helps in analysing the tools and technologies through which information
and data can be collected for meeting research objectives. In this study, both primary and
secondary research methods will be used for gathering raw data and information along with
collection of information from secondary sources. The post positivism philosophy will be used
for analysing the data through reason or logic. Gray (2009) stated that post positivism philosophy
helps in accepting the theories, values, knowledge and background for understanding their
influence on the observations. This philosophy will help in analysing the effects of globalization
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through unchallengeable and rock solid knowledge of human beings rather than on conjectures.
In addition, the deductive approach will be used for deducing the effects of globalisation from a
wide arena.
Costley et al. (2010) stated that deductive approach helps in explaining the causal relationships
between variables and concepts for measuring the concepts quantitatively. In this context, the
deductive approach will help in focusing on the challenges of globalisation and the various
strategies that can be employed by the businesses to overcome the negative effects. Descriptive
design will be used for gaining more information regarding the effects of globalisation on Asda
through the selection of a sample. Flick (2011) are of the view that descriptive design is used for
observing, documenting and describing a phenomenon that happen in its natural setting without
any kind of control or manipulation. In this context, descriptive design will be used for
describing the behaviour of the subjects regarding effects of globalisation in retail segment
without influencing in any way.
Justification of the methods
The post positivism philosophy will be used as it helps in analysing the effects of globalisation
on Asda through interpretation of information that has been derived from logic and reason. In
this context, objectivism and interpretivism have not been used as it does not help in gathering
information through rational judgements. These two philosophies will not help in describing the
phenomena that the people experience. On the other hand, the inductive approach will not be
used as it generates a new theory based on the given data. Deductive approach will be used as it
helps in concluding the facts from a wide area of study unlike inductive approach. Descriptive
design will be used, as it is effective understanding the perceptions of the employees regarding
positive and negative effects of globalisation on their company. However, the other two designs,
the exploratory and explanatory designs will not be considered, as they are not able to yield
results in a completely unchanged and natural environment. Descriptive research design is
considered to be the valid method for researching particular subjects.
Proper methods for cost, ethical issues, and access
This study will use both primary and secondary data collection method in order to collective
effective knowledge regarding globalisation in Asda. Survey and interview along with thematic
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analysis will be considered. Survey will be done on the 25 employees of Asda for understanding
their perceptions regarding globalisation. The employees will be given ethical consent form
online for getting their consent of participation in survey. The survey will be conducted online
through a list of 10 close-ended questionnaire. In addition, the interview of 3 managers will be
conducted through open ended questions. It will help in getting a wide view of the effects of
globalisation in the retail sector. The managers will be given 3 questions and telephonic
interview will be conducted. The total costs of these methods will be approximately £15000. For
the secondary method, the researcher will consider the information from the secondary sources
like articles, journals, books and websites. The inclusion and exclusion criteria will help in
considering those secondary sources that are relevant to the topic. The researcher will have to
abide by ethical guidelines while doing this research.
Refer to appendix 1
Research limitations and pitfalls
The researcher can face time and budget constraints while doing this research. The researcher
may not get access to genuine secondary sources like journals, as paid versions are available. In
addition, more time can be required for gathering of primary data as primary method is time
consuming. The participants can withdraw from the survey at any time. The secondary data may
not be accurate as per the topic and the researcher may find it difficult to connect theories, ideas
and data for yielding desired outcomes.
Application of analytical tools for analysing findings
Both the secondary and primary method will be used for analysing the effects of globalisation on
Asda, UK. The data will be gathered through qualitative and quantitative techniques for
assessing the relevance of globalisation in Asda. Application of survey will help in analysing the
importance of globalisation among the employees. In this context, probability random sampling
technique will be used for analysing the strategies that can help the multinational companies like
Asda to compete with the local companies in the global market. According to Saunders et al.
(2012), probability-sampling technique is a method of random selection from a large population
that is having a equal opportunities of being chosen for analysing the topic of study. In this
context, non-probability sampling technique will help in understanding the effects of
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