Report on EDF: Business, Globalisation, and International Trade

This report provides an overview of business and globalisation, focusing on Electricity de France (EDF) as a case study. It examines the significance and impact of global trade and globalisation on businesses, along with international business strategies. The report includes a critical PESTLE analysis of EDF, highlighting the political, economic, social, technological, legal, and environmental factors affecting its performance. It also discusses international business theories such as Absolute Advantage, Heckscher-Ohlin, and Comparative Advantage, alongside various international business strategies and entry mode strategies. The report concludes with a recommendation for EDF to use Foreign Direct Investment (FDI) as an entry mode to enhance efficiency and productivity through international expansion. Desklib offers a wide array of similar solved assignments and past papers for students.

Business and
Globalisation

Table of Contents
INTRODUCTION...........................................................................................................................3
Background of company..................................................................................................................3
Globalisation....................................................................................................................................3
Critical Analysis of Pestle................................................................................................................4
International Business Theories.......................................................................................................4
Recommendation.............................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Globalisation in business is said to be a process that is concerned with operating business
activities at global level. This report covers different aspects of globalisation such as its
significance, impact of global trade and globalisation, international business strategies and many
more (Cherunilam, 2020). Edf is taken into account which is a UK-based electricity generating
company and will demonstrate these various aspects.
Background of company
Electricity de France (EDF) is considered as a multinational electric utility company of
France and is also operating in United Kingdom which is founded in year 1946 by Marcel Paul.
It is providing electricity as well as gas and is also engaged in generating energy from coal
power stations, etc. The company is also involved in developing sustainable solar and wind
power solutions to customers.
Globalisation
This process has provided access to organizations to be specialized and enhance research
and development, capital and innovation in outcomes. The importance of globalization is that it
helps in generating more employment opportunities for people and leads to reducing
unemployment rates. If EDF wants to expand business globally then globalization process will
help it in creating more job opportunities (Geodecki, 2020). It has also become a greater choice
for market share to buy products and services under globalization concept as this process helps
company like EDF to focus on bringing multiple options for specific energy supply and services
from different locaions.
Impact of global trade and globalization
Globalisation and global trade has both positive and negative impact on the businesses and
UK economy as it has extended business at other places also where they get skilled as well as
effective manpower for performing business activities, adopting varied cultures for better results
of business like EDF and brings positive impact on country as well as organization. Global trade
leads to creation of dual economies that develops exporting sector while keeping other nation’s
economy backward. In such way it has bring negative impact on country and company like EDF
to enhance business in competitive markets. Respective company is engaged in energy supply

and services for gaining competitive edge that facilitates it in maximizing profits and brings
positive impact on country’s economy as well as oragnisation.
Critical Analysis of Pestle
Pestle Analysis includes political, economic, social, technological, legal and environmental
factors that have impact on business performance of an industry (Li, 2019). In context to EDF,
political factor of government guidelines during COVID-19 has negatively impacted business
operations and also economic factors like increase in currency rate and interest rate adversely
influence its business operations. Social factors such as increasing employment rate bring
positive impact on organization and also help it in creating good brand value in market. EDF is
using highly upgraded technologies which bring positive impact on business operations of
company as it helps in saving cost and time. Organizational is working in an ethical environment
and adhere laws and legislations of country which results in creation of good brand value. It is
also supplying solar energy that creates less pollution to environment and brings positive impact
on company.
International Business Theories
Absolute Advantage theory helps in enhancing efficiencies production process and if UK
has an absolute advantage over other country then it concentrates on all its resources that are
involved in creating such product or service that benefits whole world. The Heckscher-Ohlin
theory focuses on export of products and services which require production factors that a country
like UK has in abundance (Rugman, 2019). It is used to evaluate trade and trade equilibrium
between two countries having different nationalities and resources. Comparative advantage
theory introduces opportunity cost for analysing to choose between different opinions for
production.
International Business Strategies
There are different international business strategies and these are multidomestic strategy,
transactional strategy, global strategy as well as international strategy. These strategies are
concerned with planning and focus on exporting products and services to foreign markets.
Entry Mode Strategy into International Business
There are different types of entry modes for conducting international business and these
strategies include direct exporting, licensing and franchising, joint venture, foreign direct

investment and many more. Such strategies help an organization such as EDF in enhancing its
business at global level in a legal form.
Recommendation
It is recommended to EDF to use entry mode of FDI that will organization and country’s
economy in enhancing its efficiency and productivity through extending its business operations
in international markets.
CONCLUSION
It has been concluded that globalisation helps in extending business at global level that helps
company in gaining competitive advantage. Different theories of international business and
strategies of entry mode have been explained in this report for business expansion.

REFERENCES
Books and Journals
Cherunilam, F., 2020. International business. PHI Learning Pvt. Ltd..
Geodecki, T., 2020. 2 Globalisation trends in the service industries. Outsourcing in European
Emerging Economies: Territorial Embeddedness and Global Business Services, p.12.
Li, L., 2019. International business development in China-a study of globalisation and
performance. International Journal of Business Performance Management. 20(2).
pp.164-176.
Rugman, A. M., 2019. From globalisation to regionalism: The foreign direct investment
dimension of international finance. In Shaping a new international financial system (pp.
203-219). Routledge.