Business Organization in a Global Context Report Analysis

This report provides a comprehensive analysis of business organizations within a global context, exploring the distinctions between public and private sectors and examining the influence of globalization on business operations. It delves into the responsibilities of organizations operating globall...Read More

Business Organization in a Global
Context

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
TASK 2............................................................................................................................................4
TASK 3............................................................................................................................................6
TASK 4............................................................................................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
Appendix........................................................................................................................................14

INTRODUCTION
This project discusses about growth and development of organisation because of
globalisation. Public sector focus on satisfying needs and requirement of customers whereas
private sector focus on maximising profits. Primary, secondary and territory industries are three
type on industry in economy (Bendell, 2017). Globalisation help in removing international
barriers of trade. Marks and Spencer is the fastest growing organization that establish their
business across the world. In this report, it will develop the business in “Malta”.
TASK 1
1.1 Analysing the difference between organization working in different sectors and industry
Public sector organisation is controlled and managed by public. This sector provides
various goods and services for sale. Marks and Spencer work in this sector gets funds through
taxation.
Private sector organisation consists of major part in the economy. These are owned and
controlled by private individual and groups (Amran and et.al., 2016). Main motive of this M&S
is to earn profit.
Differentiate between public and private sectors are as follows: Their goals are fundamentally different: Public sector organisation focus on satisfying
needs of public. Main motive of private sector organisation is to earn profit. They focus
on creating brand image in market. Owners of private sectors are answerable to
stakeholders and customers. Difference in the way employees are hired: Managers of private sectors hire employees
quickly depending upon requirement in business cycle. Public sector organisation follows
a systematic process in hiring employees (Belal, 2016). Employees are terminated from
M&S because of bureaucratic, red tape, etc. termination process is very complex and time
consuming.
 Procurement process is drawn out in public sector: Public sector organisation is
generally owned and managed by government. Public organisation does not have direct
control on their procurement process (Piekkari, Welch, and Welch, 2017).
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Difference between industry primary, secondary and tertiary industry
 Primary industry extracts and collects raw materials from natural process. This industry
converts raw materials into finished products. Primary industry covers large part of
economy.
 Secondary industry produces finished products that are utilised in construction. They
sale exported products to domestic consumer. This industry is divided into heavy and
light sector. Secondary industry consumes large quantity of resources.
 Tertiary industry provide service to business or consumers. Services are intangible in
nature, it includes experience, advice etc. This focus on interacting with people and
customers, in order to satisfy their demands (Duffield, 2014).
1.2 Analysing responsibility of organisation that operate globally
M&S communicate about their products and services all over the market of Malta.
Globalisation help in removing barriers of communication. People can easily deliver their
products globally. As per scenario of business expansion, it has been successfully implementing
the strategy to achieve their responsibility towards customers and stakeholder.
 Responsibility of shareholder: Investors play a major role in commencing any retail
business, which provide investment for operation of different activities related to
business. If a M&S wish to extend globally, they have to focus on needs of shareholders. Responsibility of Customers: Success of organisation depends upon customer’s
satisfaction. Globalisation focuses on providing quality services to customers. In Malta,
M&S has unavoidable responsibility towards their customers (Malik and Pereira, 2016).
 Responsibility of Employees: Marks and Spencer must assure proper care and safety of
their employees. Positive working environment boost morale of employees. If employees
get suitable support from organisation, they can enhance their performance. Ethical responsibility: Globalisation is giving rise to unethical scandals. Organisation
focus on maximising profit. They charge high amount of price from customers and
supply them defected products. Political economy |: Government make policy for acquisition company to establish
trading relation with other country. They provide guideline for evaluation of business law
before new establishment (Moxen, and Strachan, 2017).
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 Competition: Global organisation compete with local business of host country. People
addicted to local products. Organisation produce special and unique products in order to
attract buyers of local market.
1.3 Evaluating strategy employed by organisation operating globally
Globalisation plays major role in the growth and development of human civilization.
Being a manager in successful organization, Marks and Spencer has been followed the follows
various strategies where some of them are evaluated as follows: Human resource's policy: Organisation operating globally needs to draft strong human
resource management policies. This helps in improving the communication skills with
customers. For example: Marks and Spencer has built effective policies and strategies
related to human resource. Ethics policy: The main motive of business is to satisfy requirement of customers.
Organisation adopts different ethical policies in order to make customers happy (Aopnina
and Blewitt, 2018). For example: Marks and Spencer offers quality products and services
to customers. Technology: internet play major role in maintaining relation with other countries of
world. Advancement in technology help in providing better and fast services to
customers. For example Marks and Spencer effectively use technology in order to satisfy
customers.
 Legal: Government implement various policies to protect interaction in the international
trade. It assures that exported goods are up to benchmark or standard. Marks and Spencer
follow all government policies to manufacture goods (Davies, 2016). Environmental: globalisation assist sustainable growth and development of organisation.
They plant tree in surrounding of organisation. Marks and Spencer look after
environment, they recycle waste generated in manufacturing process.
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TASK 2
2.1 Analysing performance of national economy and there impacts on various activities of
business organisation
Globalisation is significant for growth of organisation. It helps in continuous
development in every field of business. Because of global village, people are living much closer.
Globalisation contribute to growth of national economy. There are various external factors that
has impact on the economy of country (Mendenhall, 2017).
Social factors : these factors are related to change in social structure of economy. Social factors
refer to change in taste and preferences of customers. Buying power of customers are generally
influenced by these factors. Marks and Spencer consider social and cultural differences before
designing business strategies. Culture differences vary from country to country.
Legal factors : these factors are related to change in government rules and regulations Marks and
Spencer company are aware of change in law. They follow every rule and regulation like
consumer protection legislation, environmental legislation, etc.
Economic factors : this deals with changes that take place in global economy. Increase in
demand of products would ultimately lead to rise in living standards of people. This provide
business opportunity to maximise profit. Fluctuations in economy affects demand of particular
products. Reduction in demand can decrease price of products and vice versa. (Greasley, 2017).
Political factors : this refers changes in government policies. Political factors affect various
activities of business. Marks and Spencer has adopted rules and regulation created by the
government of UK. In order to maintain stability organisation must consider political
environment.
Technological factors: these factors have great influence on business strategies. Technological
factor provides various opportunities to organisation.
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2.2 Explaining measures adopted by government that influence activities of business
Following initiatives are taken by government to facilitates growth and development of
organisation
 Fiscal policies: this play major role in collection of tax and planning expenditure related
to economy. Change in taxation policy influence demands of products. This policy help
in making economy stable (Wellin, 2016). Monetary policies: in this process monetary authority like central banks has control over
short term borrowings (Moratis and Cochius, 2017). This policy mainly deals with
inflation rate. Monetary policy plays major role in maintaining stability of gross domestic
product. Regional policies: this policy play major role in improving economic condition of
country. Government organise business activities in backwards areas in order to boost up
economy.
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TASK 3
3.1 Explaining implication of global integration on business organisation
The implication of global integration on the business organization which facilitates
international trading of business.
 Innovation in technology has removed international communication barriers. Concept on
integration help in developing skills of employees. Development of this skills help in
potential growth and development of organisation.
 Globalisation help organisation to gain competitive advantage in market world.
Organisation need to adopt unique culture because they are competing against lots of
countries. Adapting new culture may slow down growth of company (Bendell, 2017).
 Communication of ideas has made marketing process easier. Growth of global
organisation depend upon the effectiveness of business activities. Globalisation has
provided firm with different threats and opportunity.
 On the other hand, Environmental degradation has been resulted due to over utilisation of
resources. Many multinational companies has acquire local companies of market. This
acquisition has negatively affected economy of country. (Amran and et.al., 2016).
3.2 Effect of international trade on domestic services and products
There are different ways of international trade influences productivity and profitability of
Marks and Spencer are described below:
 Role of Trade- The Employee of Marks and Spencer has different skill which is required
for the business activities. Therefore, Trade is playing important role in the organization.
Marks and Spencer will provide the variety of product in market (Pope and Meyer, 2015).
 The Economy and Trade- This is the major element of Domestic product and services
such as enterprises investment, personal consumption and government spending etc.
Marks and Spencer are export their product in Marketplace and it will generate a positive
effect on the Growth development program.
 Loss of Job- This is the most common factor which affect the international trade because
they mainly concern about this topic. Marks and Spencer is foreign based organization to
increase their price of product and their quality becoming lower.
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3.3 The impact of the global economy on businesses
There are different ways to impact on the globalization to the Marks and Spencer as
following: Access the Global market- Access to the global market is directly impact On the
business process and economy of country. Marks and Spencer will use internet
connection to provide the information of product with the help of website. This is
important element which affect the entire business process.
 Remote Staffing- Remote Staffing is another globalization impact on the Marks and
Spencer because Low availability of remote staff is affecting the business operations and
functions. It is important for Marks and Spencer to hire those employees who has
capability and physical strong to manage the business activities in effective
ways(Spremic and Bajgoric, 2018).
 Increase the competition- The globalization is increase in the marketplace so that more
new businesses are entered in the international market. Marks and Spencer is selling the
product in market but The competition level is very high because most of the
organization is selling the same product in marketplace.
3.4 How ICT has facilitated globalization
ICT facilities the globalization by implementing new innovative idea will increase the
growth rate in Malta. This concept is also used the Marks and Spencer to increase their sales and
productivity in marketplace(Tung, 2016).
 Communication- Communication is the vital role to interact with the customer and
employee with the help of internet connections. In Marks and Spencer, they are using
Email to send the information from one place to another.
 Data Management- Data management is an essential part of Marks Spencer to secure the
data in the form of documentation. The organization will use digital documentation on
the device and server.
 Customer relationship Management- Marks and Spencer is using information
technology to maintain the relationship between customers. It provides the customer
services to attain the call to solve the issue and problem regarding the product and
services.
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 Inventory management- Marks and Spencer will manage the inventory management
system which is helpful for maintaining the stock market to meet all the demand of the
customers (Volberda and Lewin, 2017).
TASK 4
4.1 Global environment in which businesses are currently operating in Malta
Global environment is the coordinating with the rules and regulation of organization to
provide the protection of environment (vom Brocke and Schmiedel, 2016). International market
operates the entire business process. Marks and Spencer are facing many challenging issues for
operating the business activities in the economy. Global Environment is impact on the Business
activities of marks and Spencer as following:
 Domestic Market- Malta is one of small European union that has fastest growing sector
in the world. The estimated population is 0.434 million in 2016 and reach up to 0.441
Million in 2022. The real domestic market was around 8.798 billion and its purchasing
power depend on the capital GDP. Malta is based on the natural hub for organizations,
which are seeking to do business in retail sectors.
 Domestic Politics- The domestic politics of Malta take place within specific framework
of the parliamentary that can representative democratic republic. It is based on the
elections where chosen by people. The turnout was higher with 86% and labour party
received 50%, independent candidates only 0.2%.
 Government policies-In context of policies, it is significantly gained more demand in
global world. With the help of economic government policies, it helps the marks and
spencer to establish the business. The growth rate was extremely very strong and also
minimize the unemployment rate. This type of policies always improved the employment
rate among women.
4.2 Various strategies affecting the business activities in Marks and Spencer Of Malta
Business strategy is planning for organization to achieve their goals and objectives.
Marks and Spencer will be entering in the global market and want to establish their business in
Malta. So that it will implement the strategies that affect on the business activities of Marks and
Spencer. There are common strategies affecting the business activities of Marks and Spencer in
Malta.
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Porter’s Five Forces
It is used frequently to determine the overall structure of corporate strategy so that
porter’s model can apply to the segment of economy to search attractiveness and profitability.
Threat of New entrants:
The new entrants in Malta bring new capacity that desire to gain the market share. It is
mainly depending on the barriers during enter in marketplace. The threat of new entrants in the
Marks and Spencer can be considered as low to medium in Malta because it requires quite some
investment to start the company. Competition level is also another threat of marks and spencer in
market of Malta because there are already new business enter in market and establish their
branches.
Bargaining power of supplier:
The force must be analysed that how much power and control of marks and spencer
supplier. It has over the potential to increase the cost and reduce the quality of services, which in
turn would lower a retailer industry profitability. Source of supplier power always include the
switching price of companies in Malta.
Bargaining power of buyer:
It may describe the bargaining power of buyer as per market outputs in Malta. The
consumer has a power and also choose another option to buy products. in this way, it easy for
marks and spencer to maintain their position in Malta. Customer also compared the prices of
product through online and get the information of products.
Threat of substitute products:
The existence of products outside the realm is the most common boundaries that increase
the customer propensity to switch towards another alternatives. In this way, Marks and Spencer
should provide another alternative for consumer. In this way, customers willing to move another
product and feel that increase cost too much.
Rivalry among existing competitors:
It examines that how the current competitive situation of Malta where it can be identified
that there are large number of existing competitors which are capable of doing. Rivalry is very
high because of competitors that perform different task. In this way, marks and spencer is
growing the business is slowly in Malta.
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Competitive analysis:
Strength:
 High quality management facilities and
services.
Weaknesses:
 Need to change the strategy and
approaches.
 Price rate is higher than other nation.
Opportunities:
 Business growth is higher in the Malta.
Threats:
 To many political forces.
 Competition level is high.
Blue ocean model:
In additional, for analysis the market growth of Marks and Spencer in Malta so that it can be
used the Blue ocean model that help for making a strategy where pursuit of low cost and
differentiation. It helping to open the new market space in Malta. Marks and Spencer is used the
model for planning the strategy to attract the customers towards the products and services. The
blue ocean strategy will help for decreasing the risk of threats when M&S enter in the
international market (Malta) but it will create the high competition level so that it will develop
the strategy to reduce the competition in market.
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CONCLUSION
This report is discussed about the various type of organization and working in different
industries and sectors. There are many responsibilities of organization to operating the business
in global market. This assignment is also discussed the strategies which is helpful for operating
the business activities. This report is described the strategies which affect the business operation
of Marks and Spencer in Malta. It is very helpful for operating the business process in the global
environment.
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REFERENCES
Books and Journals:
Amran, A and et.al., 2016. Business strategy for climate change: An ASEAN perspective
Corporate Social Responsibility and Environmental Management. 23(4). pp.213-227.
Belal, A.R., 2016. Corporate social responsibility reporting in developing countries: The case of
Bangladesh. Routledge.
Bendell, J., 2017. The corporate responsibility movement: five years of global corporate
responsibility analysis from Lifeworth, 2001-2005. Routledge.
Davies, P.W., 2016. Current issues in business ethics. Routledge.
Duffield, M., 2014. Global governance and the new wars: the merging of development and
security. Zed Books Ltd..
Greasley, A., 2017. Simulation modelling for business. Routledge.
Kopnina, H. and Blewitt, J., 2018. Sustainable business: Key issues. Routledge.
Mendenhall, M.E. and et.al., 2017. Global leadership: Research, practice, and development.
Routledge.
Moxen, J. and Strachan, P., 2017. Managing green teams: environmental change in
organisations and networks. Routledge.
Murray, A., Skene, K. and Haynes, K., 2017. The circular economy: An interdisciplinary
exploration of the concept and application in a global context. Journal of Business
Ethics. 140(3). pp.369-380.
Piekkari, R., Welch, D. and Welch, L.S., 2014. Language in international business: The
multilingual reality of global business expansion. Edward Elgar Publishing.
Pope, S. and Meyer, J.W., 2015. The global corporate organization. Management and
Organization Review. 11(2). pp.173-177.
Spremic, M., Turulja, L. and Bajgoric, N., 2018. Two Approaches in Assessing Business
Continuity Management Attitudes in the Organizational Context. In Always-On Enterprise
Information Systems for Modern Organizations (pp. 159-183). IGI Global.
Tung, R.L., 2016. New perspectives on human resource management in a global context. Journal
of World Business. 51(1). pp.142-152.
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Volberda, H., Mihalache. and Lewin, A.Y., 2017. Management and Organization Review
Special Issue ‘Business Model Innovation in Transforming Economies’. Management and
Organization Review. 13(3). pp.689-692.
Wellin, M., 2016. Managing the psychological contract: Using the personal deal to increase
business performance. Routledge.
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Appendix
Pestle analysis
 Political Factor- In Malta, the government always commitment to roll out the better
service to the people while it will increase the political allies because employee
corruption activities occur. Economic Factor- In Malta, it has limited propensity to invest only 18% in the global
FDI. It also predicted the rate from 2012 to 2013.
The economy of Malta is one of most dynamic economic and public finance have
significantly consolidate with falling the ration from 70% to 50%.
 Technology Factor - Communication is the medium to send the information from one
system to another. Marks and Spencer face this issue because they can use centralised
system to communicate with the one source.
 Social Factor- Nowadays, it is continuing growth in the retail business where marks and
Spencer will use digital technology to connect with the people of Malta citizens. In this
way, many consumers are attracted towards the online channels that provide an accurate
information about product and services in global world.
 Legal Factor- The government of Malta has a made policies to manage the enterprises
legislation. In this ways, Marks and Spencer apply equal rights, discrimination and data
protection directive which help for securing the sensitive information about consumers.
 Environmental Factor - In Marks and Spencer, it will conserve the environment also
reserve the impact of global warming. Malta generally use different rules and regulation
problem like green packaging, consumption of energy etc. For planning to open a new
branch so that it is required for planning the bets design and building and creating an
environment friendly working culture and office.
Threat: Competition level is a type of threat of marks and spencer in market of Malta.
Situation: the situation is that when new successful competitors are established their business in
Malta which affects on the growth rate of marks and spencer.
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Growth strategy
 It will create the uncontested market space so as Marks and spencer enter in the
marketplace. It is an essential to build strong position and space in Malta.
 It also creates and capture the new demand of consumer so that M&S provide the
services as per requirements.
 It makes an effective strategy to break the value cost in which maintain the price of good
and services.
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