Research Report: Global Business Environment for Holiday Inn

This research project examines the global business environment, focusing on the benefits and drawbacks for multinational organizations, using Holiday Inn as a case study. The report includes an introduction outlining the research aim, objectives, and rationale. It then reviews the literature on the role of the global business environment in international operations, exploring both the advantages and disadvantages. The methodology section details the research approach, methods, and data collection techniques. The findings are presented, followed by recommendations and conclusions. The report also includes a reflection on the research process and an annex with supporting details. The research highlights the importance of understanding global market dynamics, competition, and cultural factors for successful international expansion. It emphasizes the need for strategic planning to mitigate risks and capitalize on opportunities like access to new markets, technologies, and skilled labor. The study underscores the significance of adapting to local market conditions, managing competition, and leveraging technological advancements for sustained competitive advantage.

Research Project
(Globalization )

Table of Contents
TITLE: ............................................................................................................................................4
INTRODUCTION...........................................................................................................................4
1.1 Aim of the Research.........................................................................................................4
1.2 Objectives of the Research...............................................................................................4
1.3 Rationale of the Study......................................................................................................4
Overview of Company...........................................................................................................4
Overview of the Research......................................................................................................5
CHAPTER 2: LITERATURE REVIEW.........................................................................................5
2.1 Role of Global Business Environment in Running Organisation at International Level. 5
2.2 The Benefits that Holiday Inn can have by Studying the Elements of Global Business
Environment...........................................................................................................................7
2.3 Challenges to Holiday Inn from Elements of Global Business Environment..................9
CHAPTER 3: METHODOLOGY JUSTIFICATION...................................................................11
CHAPTER 4: METHODOLOGY EXPLANATION....................................................................12
Research Approach...............................................................................................................12
Research Methods................................................................................................................12
Data Collection Techniques.................................................................................................13
Research Sampling...............................................................................................................15
Ethical Consideration...........................................................................................................15
CHAPTER 5: RESULTS...............................................................................................................15
CHAPTER 6: RECOMMENDATIONS AND CONCLUSIONS.................................................21
6.1 Recommendations..........................................................................................................21
6.2 Conclusions....................................................................................................................22
CHAPTER 7: REFLECTION........................................................................................................22
REFERENCES..............................................................................................................................24
Annex 1 .........................................................................................................................................26
Section 1: Basic Details........................................................................................................26
Section 2: Project Summary.................................................................................................26
Section 3: Participants..........................................................................................................26

Section 4: Data Storage and Security...................................................................................27
Section 5: Ethical Issues ......................................................................................................28

TITLE:
Benefits and Drawbacks of Global Business Environment for Multinational
Organisations.
INTRODUCTION
1.1 Aim of the Research
“To identify the Benefits and Drawbacks of Global Business Environment for
Multinational Organisations. A case study on Holiday Inn.”
1.2 Objectives of the Research
 To analyse the role of global business environment in running the organisation at
international level.
 To identify the benefits that Holiday Inn can have by studying the elements of global
business environment.
 To determine challenges that Holiday Inn can face by incorporating the changes as per
global business environment into its operational activities.
1.3 Rationale of the Study
The reason behind conducting this research is to increase the knowledge about the
positive and negative impacts of globalisation on the working of Holiday Inn. The following
Hotel organisation is operating their work at international level and the study is important
because there are different issues which are faced by an organisation at the time of making their
operations at the international level. In addition to this, there are also many benefits which an
organisation could have at the time of making their operations at the international level so that
the companies could eradicate those challenges from the working of the company and provide
better services to their customers with high quality and satisfaction level.
Overview of Company
The company chosen for the completion of this assignment is Holiday Inn, which was
founded in the year, 1952, Denham, Buckinghamshire, United Kingdom. The company is
serving worldwide and is providing various facilities to their customers such as food services,
lodging, conventions, meetings, etc. The reason behind choosing this company for the
completion of this assignment is related to the global business presence of the company and deep

information about the quality of services of the company and the impacts that the organisation is
having at the time of making their operations at global level will be known.
Overview of the Research
In the following research, it will make its focus on the global business environment and
the positive and negative outcomes which the business will receive from making their operations
to be done at the global level (Ballesteros and Mata-Benito, 2018). The research will also
provide about the discussion of literature reviews and will also focus on the discussion to be
made about the Research Methodology which the researcher is going to be used in the following
research. Globalisation is defined as the process of the integration of different economies of the
world, and to increase the interconnection of businesses, economies, government and people of
different people in the world.
CHAPTER 2: LITERATURE REVIEW
Literature Review is described as providing summary of the views presented by any
author in their book, article or journal, etc. It provides theoretical information about the research
topic and helps in determining the nature of the research.
2.1 Role of Global Business Environment in Running Organisation at International Level
According to Theodore Levitt, 2019, global business environment plays an important role
in making the business operations successful. It is because it provides organisation with many
benefits and many drawbacks at the time when organisation is operating across different
countries at global level. With the help of global business environment, the organisation comes
into contact with different countries, their culture, nature, people, organisations, competitions,
rules and regulations, government and many more factors which enhances the knowledge of an
individual and the organisation as well working for the achievement of the goals and objectives
of the organisation.
These are the factors of the global business environment in which the organisation is
dealing with and it also provides the company with many good and bad experiences which helps
the organisation to learn many new things about the market and customers. When a company
conquers in its home country, next division to explore is trading in global market i.e.
internationally. Global market is very difficult in nature to process and manage all factors.
Stability is the prime factor which influences sales in any market, it provides revenues, plus

helps in promoting business at global level. It enhances the knowledge of an organisation and
provide with the ways to deal with bad situations as the solution will be find out when there is
some problem (Berg and et. al., 2018). In the absence of any problem it will not be easy for the
companies to find any solution and to develop the way of their working. It is also related to the
use of technologies and up-gradation in different countries. So the global business environment
will also help the company in making improvement in their ways of working so that it could be
possible for the companies to increase their profits and profitability of the company. In case, the
company is not making suitable policies for dealing with the critical situations in the
organisation, in this case the organisation will have to face the negative impact of global business
environment on the working of the company.
Threats will be affecting more to business and it is not able to cope with competition at
global level. Many companies can not survive in international markets because they lack
experience and capabilities to turn threats into opportunities. Competition is one of the strongest
effecting elements in success or failure of any business in global markets as its creates both
advantage or disadvantages for companies. Exploring in business is the first formal criteria for
expansion of organisation (Bridge and et. al., 2018). When expanding on global level,one of the
prime risk to any new organisation are the political matters, member's should accumulate risk
levels, and make strategies accordingly. In the context of international exchange, its supreme
issue is to en-roll business on ground basis and then in depth of global division. The possibility
also increases to the shutting down situation for the business as well. So, very important role has
been played by Global Business Environment in making the running of an organisation to be
successful in the market at international level.
Summary: All international organisations are very important aspects of society as they
provide several advantages and disadvantages for national business like, Holiday Inn to develop
and entertain exchange of service and money on global market. Plus point for each organisation
which expands on global level is to come in contact and experience different cultures, rituals
religions and living standards of people. Supreme standards to match is to perform and excel in
various departments which are new to their levels of doing business. Working in different market
increases the knowledge about different sections of business according to which planning new
schemes are required. Holiday inn is not the only company in the provided country which gives
it a bunch of competitors in which some are originally from there, this serves to be as the major

disadvantage for company since it will take a procedure to complete and make plans related to
such developments to attract consumers who have been loyal to certain companies. The
organizational structure influences the evolution of interstate cooperation and adapts itself to
specific circumstances. Most organizations perform functions to support cooperation between
conferences dealing with very important issues, as well as implementing a set of regulations to
provide ground rules for Holiday Inn to perform well. The prior issue is to set-up a new company
at different land, consists change in legislations and probability of such company shutting down
is too much because of excess competition inside market. Plus adjusting and making space in a
already crowded place, makes it more difficult to emerge within country, which will ultimately
leads to failure of business for Holiday Inn (Broucker and et. al., 2018).
2.2 The Benefits that Holiday Inn can have by Studying the Elements of Global Business
Environment
According to Jan-Emile van Rossum, 2017, there are many benefits which an
organisation could have at the time of working and expanding their operations to the business
level. As such it increases the opportunities for the businesses to make the expansion of their
businesses at the global level such as the access to new markets and customers where the
company could make the sales of their products and services and this will impact positively on
the working of organisations and will result in the increase in the sales and profits of the
organisation. In addition to this, there are also several other opportunities for Holiday Inn as well
such as the diversification.
The company could also provide different types of products and services for their
customers in the new markets as in today's world, companies should produce those goods and
services for the customers which the customers are willing to buy not the sellers are wishing to
sell (Davies and Healey, 2019). There are possibilities that the organisation may also have access
to new talents in their organisation which they are not getting in their home country as well.
Working internationally brings pool of talented candidates, cheaper labour, skilled employees,
liberal entry or exit laws, opportunity of outsourcing operations, higher demands, increase
profitability, bigger market share, etc. So this will increase the chances of their growth and
development of the organisation in the marketplace and will be able to achieve their goals and
objectives easily in the new business environment as well.

As related to the competition, Holiday Inn will have the benefit of first mover advantage
as the company is the first who is making the expansion of their business to global level and this
will make an increase in the sales and profits of the services of the company. So the company is
having competitive advantage over their competitors. The another reason of this is because with
the help of global expansion, the company could have access to new technologies as well which
will make an increment in their operations and will also provide benefits over their competitors
and to sustain competitive advantage in industry. Mergers and acquisitions also helps business to
expand and capture large share of market globally. Goodwill of Holiday Inn will also helps
business to build relationships with customer in different markets and enjoy leadership in
industry through customer loyalty. So the new systems of working which Holiday Inn had got
from the new country can also be applied in their home country as well in order to make
improvement in the working of the organisations (Davydov, Shapoval and Weber, 2018). This
will creates Holiday Inn is also provided with many other opportunities with the help of which it
will be possible for the company to increase their awareness in the market such as the Foreign
Investment Opportunities, this will make possible for the company to increase in their revenues
and profits and make the development of the organisation to be possible. In this way, there will
many benefits that an organisation could have by making their operations at global level.
Summary: The positive aspects of settling for any new place, outspokenly includes
expansion of business which is ultimate aim of all organisations. The biggest plus point for
Holiday Inn is in becoming first shifter in that zone which gives a boost to sales and revenue.
This will impact, the goodwill and stability ratio of company in its home country and accelerate
bookings at Holiday Inn. Relatively in the global environment, problems and issues received
excels the complication, risk and non-stability, because companies don’t have to deal with a well
known, national space, but rather with an international environment with geographical changes.
The basic purpose to expand in different countries is exploring different attributes which were
not present in home country (Driscoll and Grealy, 2019). Globally working brings many
incentives to Holiday Inn like cheap labour, various talents and many employees of same country
so that its easy to blend in their environment. This will uplift, revenues in market and global
international reputation of holiday inn which later, will allow smooth access to markets with
stable growth rates. The most essential and crucial challenge will be to provide multiple products
as according to population demand and needs which if conquered, will provide hike in giving

early benefits. The best part of expanding business is access to new technologies and using
updated software's, learning new things and implementing at headquarters of Holiday Inn. The
main aim in international market is to pitch for better investors in holiday inn, and this will
symbolise as development of the organisation.
2.3 Challenges to Holiday Inn from Elements of Global Business Environment
According to Katie Reynolds, 2017, while operating at the international level there are
different challenges that Holiday Inn could come across. These issues may arise in case the
company is not dealing good with the environment and not able to adopt the conditions of the
working environment in the new country. With the help of this, it will be possible for Holiday
Inn to face different threats and negative consequences of their actions impacting negatively on
the working of the organisation (Dunleavy, Noble and Andrews, 2019). The challenges are
related to the market analysis which is one of the most important element which could impact
negatively on the working of the organisation. In case, the company have wrong analysis or
research of the market than in this case, it will provide wrong information about the market to
company and it will also lead to negative consequences to be faced by the company in dealing
with the situations. To be competitive globally, structure of organisation, locations of workforce
and coordination between teams across different time zones are some fundamental challenges for
Holiday Inn.
Company should consider price to be competitive still earning profits, can be seen as
challenge when running business overseas and should be consider in making strategies.
Fluctuation in currency rate will increase inflation rate that will effect cash flow, cost of raw
material and because of all this changes Holiday Inn will suffer losses. Effective communication
is key factor in international business strategy however, communicating beyond various culture
can be a real challenge because language is not only barrier even non-verbal communication may
break deals sometimes. As Holiday Inn will expands its services across geographies, it is more
challenging to have constant access on performance that will put management decisions at risk.
Maintaining financial control over processes especially when company is operating in
international market is another challenge. Working at international level makes business to
consider different aspects in which country it is dealing to research about every factor regarding
rules and regulation, political policies, population, income distribution, labour market,
demographics conditions, industry laws, etc.

Global environment is dynamic in nature, businesses can not predict it with efficiently or
effectively, studying past trends or factors affecting it will help in forecasting and make plans
accordingly, many times fail miserably due to unpredictable changes of environment. In addition
to this, there are also some other elements such as the rules and regulations of government, faiths
and beliefs of customers, economic conditions which could also impact negatively on the
working of Holiday Inn. Many successful companies are effective in turning its threats into
opportunities and leading in sustainable competitive advantage in industry. Holiday Inn should
ensure pricing, financial, research, structure, performance strategies to be effective to overcome
every hurdle and become sustainable and avoid threats in global market (Erne, 2018). So in order
to get positive outcome from these elements it is important for them to focus on these elements
to get the best positive outcome and the least negative impact on the working of the company.
Summary: Managing organisation globally is a complex function as Holiday Inn is
facing constant change in external environment in emerging international markets. The areas
where companies lack to compete in global market is market analysis, rules or regulations,
demographics differences, financial control, cross-culture, etc. Organisation finds it difficult to
create balance between their functions and global objectives that brings disparity in
organisational goals. In depth knowledge of every factor that will affect business functions of
organisation is required to overcome challenges in global markets. There are many factors that
will affect Holiday Inn and its operations globally such as – political, social, environmental,
technological, economic and legal. There impacts various to degree in which region company is
entering or providing services, some may affects more or less based on market it is operating. It
is therefore, necessary for Holiday Inn to frame strategies according to that extend to which
factor will effect its operations (Fielke and et. al., 2018). Holiday Inn policies should be effective
enough to overcome such hurdle through well established standard processes and goodwill it
enjoys in UK. It need to transform threats of external environment into opportunities to gain
competitive advantage over others and sustain in global markets. Challenges can not be avoided,
turning it into positive outcome or results depends majorly on business research and
development to exploit market and ensures profitability. Holiday Inn growths in home market is
significant and markable and thus this will serves as base to compete in global marketplace as
well.

CHAPTER 3: METHODOLOGY JUSTIFICATION
The definition of Research Methodology can be provided as the collection of systematic
tools and techniques which are used for the purpose of conducting the research in an effective
manner (Kumar, 2019). The descriptive of the tools and techniques are provided as under:
Data Collection Methods: It can be defined as the way with the help of which the data for the
completion of research is acquired. The types of data collection methods are provided as below:
Primary Method: It is defined as the first hand collection of data which is collected with the
help of questionnaire, surveys, etc. For the completion of this research, the use of Questionnaire
has been done (Ledford and Gast, 2018).
Secondary Method: It is defined as the second hand collection of data which is collected with
the help of books, journals, articles, online, etc.
In the completion of this research, the use of both the types of data is done in order to
increase the reliability and validity of the research and to provide more deep knowledge about
the research topic.
Research Methods: The definition can be provided as the strategies, processes and techniques
which are utilised in the collection of data or evidence to provide some information to the
readers. There are mainly two types of method described as under:
Qualitative Methods: In the following method, qualitative information in the form of theoretical
data is provided in the research for the completion of the research.
Quantitative Methods: These are defined as those methods which makes use of statistical data
and figures for the completion of the research project provided.
In conducting the following research, the use of qualitative data has been done in order to
have a deep analysis of the data and to look out different aspects of the information provided in
the research (Quinlan and et. al., 2019).
Sampling: It can be defined as the process with the help of which some samples has been chosen
which can be general public, employees of an organisation, customers or any other from a large
number of population for the completion of the research and to reach to an end conclusion. For
the completion of this research, the use of Random Sampling has been done to make the research
free from biasness. The sample size for this research is 30.

CHAPTER 4: METHODOLOGY EXPLANATION
Research Methodology is an important part in which the major description about the tools
and techniques used in the completion of the research are provided. These tool and techniques
are used in order to make the successful completion of the research project in an effective and
efficient manner. It provides the researcher to make use of a systematic way in order to make the
completion of the research in a successful way. With the help of different tools and techniques, it
will be possible for the researcher to have proper knowledge and idea about the way in which the
research is needed to be conducted. In addition to this, there are also some ethics, norms, rules
and regulations are present which the researcher is needed to follow at the time of conducting the
research so that the research could provide the needful results for which it has been conducted.
The detailed explanation of the tools and techniques that has been used by the researcher in
conducting the following research are provided as under:
Research Approach
The following is the plan and procedure which provides the researcher with the step by
step information about the methods with the help of which the researcher will collect the data in
order to complete the research. Not only in the collection of data, the following approach is also
used at the time of analysing and interpreting the data as well. There are two types of research
approach which are Inductive and Deductive Approach. In order to make the completion of this
research project, the use of Inductive approach has been done because with the help of this
approach it will be possible for the researcher to focus on the small things as well as to take into
consideration the large things also. In addition to this, with the help of this approach, it will be
possible for the researcher to further explore knowledge about the benefits and drawbacks of
globalisation for the businesses.
Research Methods
The following term is defined as the method with the help of which the researcher has
performed different methods with the help of which the research has been made complete. With
the help of research method, it will be easy for the researcher to conduct the research in a
systematic way. Mainly, there are two types of research methods which are qualitative and
quantitative methods.