Application of Social Science Concepts and Globalization Analysis

This report examines the multifaceted impact of globalization on business management, focusing on the Empire Company, a Canadian food retailer. It explores how globalization affects human resources, production, operations, R&D, and ethical conduct. The report utilizes PESTLE analysis to identify political, economic, social, technological, legal, and environmental factors influencing the company's opportunities and challenges in a globalized market. It highlights the importance of adapting to cultural diversity, technological advancements, and legal frameworks. Furthermore, the report provides recommendations for maximizing the benefits of globalization by addressing risks associated with political regulations, economic factors, and technological obsolescence, ultimately aiming for market sustainability and competitiveness. The analysis underscores the critical role of R&D and ethical practices in navigating the complexities of a globalized business environment.

Application of social science
concepts theories

Table of Contents
INTRODUCTION.....................................................................................................................................3
TASK 1....................................................................................................................................................3
Impact of globalization on many areas of business management.....................................................3
TASK 2....................................................................................................................................................5
The potential opportunities and challenges associated with globalization.......................................5
TASK 3....................................................................................................................................................6
Recommendations on how the benefits of globalization can be maximized.....................................6
CONCLUSION.........................................................................................................................................7
REFERENCES..........................................................................................................................................8

INTRODUCTION
Global business environment is defined as business environment of all nations in the
world which may affect the decision making process of a business. Global business
environment is required to be analysed so as to identify outer factors which may create either
risk or opportunity for the business. In global business environment social norms of the
country is required to be estimated and taken in decision making process so as to understand
culture of the country(Coleman, 2016). With the help of global business environment the
company is able to expose their capacities by using resources in optimum level and taking
their benefits thereon. The company taken in this report is Empire Company which is a
Canadian food company and having headquarter on Stellarton, Canada. They have 34637
employee in their organisation. This report includes impact of globalisation on various areas
of Imperial oil and PESTLE analysis so as to recognise market competencies and
opportunities.
TASK 1
Impact of globalization on many areas of business management
Globalisation is defined as integration of economies of every country in the world and
to remove trade barrier so as to expand business throughout the globe and to cater huge
customers. Globalisation is associated with having economic partnership with each other
countries with the view to become technology advanced and to remain update with market
trends. Business of Empire company ltd gets affected by emerging global trends, so impact
on various areas are explained as under:
Impact on human resource: As after integration of various economies new skills can
come into the business due to which cultural difference arises as employees are from
overseas. On the other hand when employees are required to be sent in overseas then trained
employees can be sent without any barrier (Oyevaar, Vazquez-Brust and Van Bommel,
2016). Further due to cultural diversity, productivity and employee engagement increases as
employee feel safe in the organisation. As in background of Empire Company, as due to
presence of employees from various countries this leads to create problem of enforceability
of employment laws. Every country is having their own laws and regulations so it is difficult
for employees to understand rules of other countries in which they are working. On the other
hand some countries are having cheap labour supply so it is beneficiary for Empire Company
to get employees from other countries with the use of globalisation (Crane and et. al, 2019).
Impact on production: With the help of global economy, all the trade barriers have
removed. As after globalisation, world economies has emerged into one so it is obvious that
companies will have to increase their capacity so as to cater worldwide. Furthermore as due
to merged economies, technological advancements are adopted by companies so as to
enhance efficiency of production and to produce quality product which has a global standard.

As in context of Empire Company they are food retailer so production capacity supposed to
be enhanced so as to supply their product in global countries. On the other hand this
expansion needs to have large capital investments which may cost capital loss if expansion
does not render profits (Georgiadis and Mehl, 2016).
Impact on operations: When global economies are emerged then changes are seen in
operation of a company. Company is required to adopt benchmarked techniques and
technologies in order to their production process which gives them market competitive edge.
On the contrary when technology used is obsolete then it is hard for the business to have
market position and market sustainability which may give them losses in business. As in
reference of Empire Company, they are expanding their business outside Canada, so they are
required to adopt some new technology which is prevailing in the market so as to enhance
their operations and to manufacture and sell high quality products so as to have market
sustainability and brand recall in the marketplace. So with the help of globalisation, process
of operations can be enhanced due to which any problem in process can be identified in early
time and solved as well.
Stock prices of Empire Company in recent years
Ethics: Ethics are set of rules and regulations which are followed by every individual.
The inner ethics are known as personal ethics and organisational rules and regulations are
known as organisational ethics. Ethics are those rules and conducts which are tracked by all
employees in the business and all stakeholders so as to operate the business as per ethical
conduct. Ethical conduct aid the business to have high market sustainability and high
productiveness inside their organisation. As in framework of Empire Company, they have
various rule and conduct which are followed by every personnel throughout the global
irrespective of the place of operation. That means the business is outside Canada then also the
ethics will be same which help the business to get global identity in global market due to
which it is easy for them to maintain high goodwill and earn profit by mixing all the
economies (Gozgor and Ranjan, 2017).

Impact on R&D: R&D department of every business is having vital role in the
organisation as they are responsible to gather all the market information and then accordingly
suggest any change or upgrade to the production department in the product or services
offered by the company. When global economies are emerged then it is beneficial for the
R&D department as now they can analyse overall demands of customer and take decision
about any changes in their product or services. As in support of Empire Company, the R&D
department is liable to conduct market surveys and then figure out the customers’
requirement and products of company so as to bridge the gap between those needs and
products. So it can be said that R&D department of Empire Company is influenced by global
economy as their sample size has increased now and it is hard for them to take decision
because every customer is having their own need (Psimmenos, 2018).
Income graph of Empire Company in past years
TASK 2
The potential opportunities and challenges associated with globalization
In order to identify potential challenges and opportunities, PESTLE analysis is
adopted. This analysis is undertaken so as to recognise impact of each factor which is

prevailing in the market and which is helpful in taking out market opportunities. PESTLE
analysis for Canada is shown as under:
Political factors: These factors includes political stability of a country, corruption rate and
government interventions in businesses. So in respect of Canada, it is a political stable and
democratic country along with a parliamentary system. They have constitutional monarchy
and carry very good relationship with other countries of world. This country is having lowest
rate of corruptions and crimes which make them one of the safest country on the globe
(Hanson and et. al., 2016).
Opportunity: As in respect of political factors, Empire Company can trade safely
with another country as this country is having sound relationships with other countries.
Further Canada is a political stable country which provides high power to their domestic
country so as to ensure that no political uncertainty is going to arise in near future.
Threat: Threat for the company may have as they have rigid rules and regulations
which are required to be enforced by each citizen and each domestic and international
company who are willing to trade in Canada. So for Empire Company this factor may create
threat as they have so many rules and regulation of the country.
Economic factors: These factors are associated with GDP arte, inflation rate, foreign
currency fluctuations etc. Canada is having mixed economy and they have huge market in
computers, cars, etc.
Opportunities: As due to mixed economy it is helpful for Empire company so that to
expand their business in any economy without any obstacle.
Threats: Threat with this factor may be faced by Empire Company is that Canada do
not have big market in food industry so this may keep them backward as compared to other
countries.
Social factors: These factors are associated with income power, taste and preferences of
customer, diversity, immigration system of the country and many more.
Opportunity: As due to diversified country this may giver power to Empire
Company so as to get new and skilled workforce (Ho, 2017).
Threats: As due to shortage of skilled worker, Canada do not have skilled labours in
their country and their flexible immigration system lead them to lose their skilled candidates
from their country.
Technological factors: These factors are associated with adaption of new technology in the
country which may affect the business operations of their domestic companies.
Opportunities: Canada is highly advanced in technology adaption country as they
have highly advanced IT professionals. So by adopting new technology in business, Empire
Company may have high market competitive edge in the global economy(Levine, 2016).

Threats: Due to emerging needs of customer, technologies are getting obsolete very
fast. So this may create threat to Empire Company because this incurred high cost when any
technology is accepted by a business.
Legal factors: These factors are associated with all the legislative laws which are
enforced in the country such as discrimination laws, employment laws etc.
Opportunities: Rights of employees are protected in Canada due to which this
provides safeguards the employees of Empire Company that help them to give most of their
efficiency in the business.
Threats: Due to strictness of enforceability of laws this may create a threat to Empire
Company as company has to pay high penalty on non-following these laws.
Environmental factors: These factors are associated with scarcity of resources in a
country, changes in climate and environmental laws within Canada.
Opportunities: Canada is having high nature beauty in their country, this attract so
many tourist so this is an opportunity for Empire Company to expand their business.
Threats: Due to increasing level of pollution and high usage of plastic this hampers
the environment in an adverse manner. As Empire Company is a food retailer and they have
high usage of plastics so this is a threat for the company and decrease their CSR level.
Revenues of Empire Company in recent years:

TASK 3
Recommendations on how the benefits of globalization can be maximized
With the help of globalisation the companies are able to get high benefits and lower
their risks. As in political factors due to rigid rules and regulation Empire Company is
required to frame flexible strategies so as to tackle their risk factors. In the context of
economic factors presence of mixed economy may lead the company to get global market
access and global market sustainability (Mann and Graham, 2016). With reference to social
factors the risk of losing skilled workforce can be eliminated by providing opportunities to
employees in order to have high career growth and high value of job. In case of technological
factor the risk of having obsolete technology can be eliminated by having efficient R&D team
so that to get to know about the best technology which is cost efficient. Further legal laws
create opportunity to get maximised benefits over legal laws as with the enforceability of
legal laws the business of Empire Company may have high market sustainability. At last by
following environmental laws in an appropriate manner the company may have a portion in
the global economy so has to have high market competencies and market sustainability
(Zimmermann and et. al., 2016).
CONCLUSION
From the above report it can be summarised that globalisation is playing an essential
role in providing high market edge to the business. Globalisation is having impact on every
aspect of business and they provide opportunity to grow in the global market so as to become
market leader. Further with the help of PESTLE analysis market competencies can be
identifies so as to eliminate risk and work on opportunities (Martell, 2016).

REFERENCES
Books and journals
Coleman, W.D., 2016. Financial services, globalization and domestic policy change.
Springer.
Crane, A., Matten, D., Glozer, S. and Spence, L., 2019. Business ethics: Managing corporate
citizenship and sustainability in the age of globalization. Oxford University Press,
USA.
Georgiadis, G. and Mehl, A., 2016. Financial globalisation and monetary policy
effectiveness. Journal of International Economics, 103, pp.200-212.
Gozgor, G. and Ranjan, P., 2017. Globalisation, inequality and redistribution: Theory and
evidence. The World Economy. 40(12). pp.2704-2751.
Hanson and et. al., 2016. Strategic management: Competitiveness and globalisation. Cengage
AU.
Ho, W.H., 2017. Financial market globalization and growth with interdependent
countries. Journal of Mathematical Economics, 69, pp.12-21.
Levine, N., 2016. Canada made me. Biblioasis.
Mann, L. and Graham, M., 2016. The domestic turn: Business process outsourcing and the
growing automation of Kenyan organisations. The Journal of Development
Studies. 52(4). pp.530-548.
Martell, L., 2016. The sociology of globalization. John Wiley & Sons.

Oyevaar, M., Vazquez-Brust, D. and Van Bommel, H., 2016. Globalization and sustainable
development: a business perspective. Macmillan International Higher Education.
Psimmenos, I., 2018. Globalisation and employee participation. Routledge.
Zimmerman and et. al., 2016. The influence of supply chain on the innovation process: a
systematic literature review. Supply Chain Management: An International Journal.