Business and Globalisation: EDF and UK Economy Analysis

This presentation provides a comprehensive analysis of EDF, a major player in the UK energy market, within the context of globalisation. It begins with an introduction to EDF, detailing its background, operations, and financial performance. The presentation then delves into the concept of globalisation, its importance, and its impact on both global trade and EDF's business operations. It explores the implications of globalisation on the UK economy and examines the company using a PESTLE analysis to assess the macro-environmental factors influencing its performance. The presentation further discusses international business theories such as absolute and comparative advantage, followed by an evaluation of international business strategies. It concludes with a recommendation for EDF regarding its entry mode strategy into international business, advocating for foreign direct investment. The presentation uses the provided references to support its analysis and conclusions.

Business and Globalisation

Table of contents
 INTRODUCTION
 Background of chosen company
 Globalisation
 Importance of globalisation
 Impact of global trade and globalisation
 Impact of globalisation on chosen company and UK economy
 Concepts, Analytical Tools and Theories of International Business
 Critical Analysis of PESTLE

Table of contents
 International Business Theories
 Critical Analysis of Comparative Advantage or any other International Trade Theory
 International Business Strategies
 Critical evaluation of International Business Strategies
 Entry Mode Strategy into International Business
 Recommendation
 CONCLUSION
 REFERENCES

INTRODUCTION
In business, the concept of globalisation is said to be the organisations conducting their business
operations internationally or at global level. This presentation is based on the different aspects of business
and globalisation and in order to demonstrate these different prospects, EDF is taken into consideration
which is the biggest generator of Zero Carbon Electricity in the Britain, UK (Chaniago and Efawati, 2022).

Background of chosen company
 Electricity de France (EDF) is taken into account which is a multinational electric
utility organisation of France and is also operating within the United Kingdom.
 The respective company was founded in the month of April in year 1946 by
Marcel Paul. EDF Energy provides the electricity as well as gas to 6 million
customer-base in the UK.
 The company is also generating energy from coal power stations, 8 nuclear plants
along with some of the renewable that are generating around 20% of the energy
of the United Kingdom (Cherunilam, 2020).

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 It is also engaged in the process of generating zero carbon electricity
from nuclear, wind along with the solar in order to facilitate in cutting
UK carbon emissions to nothing.
 Within the company, there are more than 10000 employees and it is
headquartered in London, England.
 The company is generating around 84.5 billion euros in the revenues
in the year 2021 and there was 22% increase in these revenues
comparative to previous year.

Globalisation
Globalisation has enabled the companies
to be specialised and to enhance the level of
research and development, innovation as well as
capital within their output
Importance of globalisation:
 Greater choice for consumers
 Employment opportunities

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Impact of global trade and globalisation
 Enhanced business opportunities: This puts
positive impact on company as it can enhance its
business at other locations also where they get
talented and skilled employees to perform business
operations, adopting of different tradition and culture
at workplace for effective outcomes (Feldmann and
Morgan, 2022).

Impact of globalisation on chosen company
and UK economy
While doing globalisation, there can be
favourable and unfavourable impact on EDF and
economy of the United Kingdom at time of achieving
business objectives. Competition is positive impact of
globalisation as it support the organisation in
improving its energy supply and services and their
quality due to increase in global competition (Levius,
Safa and Weeks, 2018).

Critical Analysis of PESTLE
 The tool of Pestle Analysis helps in analysing impact of macro
environmental factor that influences functioning of business (Sauvola
and et.al., 2021). There are 6 factors in Pestle analysis and impact of
different factors is described as below:
 Political factors: The guidelines of UK government regarding
pandemic situation of COVID-19 such as social distancing, economic
lockdown has greatly impacted business operations of EDF as at that
time there was reduction in sales of company.

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 Technological factors: EDF is using highly updated technologies
while performing business functions which saves time and cost of the
business and brings positive impact on it.
 Legal factors: EDF is working in an ethical environment by
following employment laws and regulations framed by UK
government which creates good brand image of company at market
place.

International Business Theories
Absolute Advantage theory is based on
notion of enhancing efficiencies in production
processes and was introduced by Adam Smith in
1776 who stated that manufacturing of a product
with great efficiency in comparison to other nations
at international level is highly advantageous
(Timothy, 2019).