Globalization's Impact on Business Performance: Pret a Manger

This report examines the impact of globalization on business performance, with a specific focus on Pret a Manger. The study explores the rationale behind choosing this topic, highlighting how globalization influences business operations, productivity, and profitability. It delves into the factors affecting business performance, encompassing social, economic, and technological elements. A comprehensive literature review discusses the importance of globalization, its effects on Pret a Manger, and the interrelationship between business performance and global market entry strategies. The methodology section outlines the research philosophy, design, types, approach, data collection, analysis, and ethical considerations. The report also presents research results, stakeholder details, and conclusions with recommendations. It also includes a review of the methodology and personal reflections. The report analyzes globalization's role in market expansion, competition, and financial outcomes. It also covers the significance of technology, cultural adaptation, and customer preferences in the context of international business.

Analysing the impact of
globalization on Business
performance

EXECUTIVE SUMMARY
In this report it has been discussed that globalisation impact on business financial as well
as other performance and also provide many opportunities which enhance their productivity. But
on the other side it creates competitive environment in marketplace that put negative effect firm
and it’s all over functions. In this study it will discuss about the different types of modes enter
into international market that support to gain competitive advantages.

TABLE OF CONTENTS
CHAPTER 1- INTRODUCTION AND BACKGROUND.............................................................4
1.1 Rationale................................................................................................................................4
1.2 Factors affect business performance......................................................................................4
1.3 Focus on chosen topic............................................................................................................4
1.4 Background of company and details about topic...................................................................4
CHAPTER: 2 LITERATURE REVIEW ........................................................................................6
2.1 Importance of globalisation ..................................................................................................6
2.2 Impact of globalisation on Pret a manger..............................................................................7
2.3 Interrelationship between business performance and globalisation.......................................8
2.4 Modes of enter into international market ..............................................................................9
CHAPTER: 3 METHODOLOGY ................................................................................................11
3.0 Introduction..........................................................................................................................11
3.1 Research philosophy............................................................................................................11
3.2 Research design...................................................................................................................11
3.3 Research types.....................................................................................................................12
3.4 Research approach...............................................................................................................12
3.5 Data collection.....................................................................................................................12
3.6 Data analysis........................................................................................................................13
3.7 Sampling..............................................................................................................................13
3.8 Ethical considerations..........................................................................................................13
CHAPTER: 4 RESULTS OF RESEARCH ..................................................................................15
CHAPTER: 5 STAKEHOLDERS DETAILS...............................................................................25
CHAPTER: 6 CONCLUSION AND RECOMMENDATION ....................................................27
6.1 Conclusion...........................................................................................................................27
6.2 Recommendation-................................................................................................................27
CHAPTER: 7 REVIEW OF METHODOLOGY..........................................................................29
CHAPTER: 8 PERSONAL REFLECTIONS ...............................................................................30
REFERENCES..............................................................................................................................32
BIBLIOGRAPHY..........................................................................................................................35

Topic: Analysing the impact of globalization on business performance: A case on Pret a Manger.
CHAPTER 1- INTRODUCTION AND BACKGROUND
1.1 Rationale
The project is about the globalisation that effect on business or company's performance.
Researcher chose this topic to identify how globalization impact on entity and its financial
performance or other functions (Narwal and Jindal, 2015). It is important to understand how it
makes the world smaller by exchanging of services and goods, cultures and knowledge between
various countries. In recent time, there are many companies which drive towards globalisation
and expand their business at international market that is the main reason for choosing this topic
why they are doing so. Researcher wants to understand about globalisation, how it influences
productivity, profitability and other things.
1.2 Factors affect business performance
Business is impacted by various factors which collectively form business environment, it
includes social, economic, legal, political, technological and environmental factors. Business
environment consists of external and internal forces that impacts company and its business
operations. Employees working abilities and contribution, interest of shareholders, financial
performance, operational efficiency and other functions are the internal factors that impact Pret
A Manger and also influence its overall activities (Kumar, Singh and Shankar, 2015). All above
elements are considered as the most effective factors that can be impact on company as negative
or might be positive side.
1.3 Focus on chosen topic
Globalisation changes the world and whole industry structure, it gives new ways or
purpose of driving organizations towards capital expansion. Researcher focuses on this topic
because they identify globalisation in context of current business trend that help industry or
specific company to expand their business and increase profit margin. Researcher chose this
topic as impact of globalization on business performance to identify how it affects Pret a
Manager business and its financial performance.
1.4 Background of company and details about topic
Globalization drives business towards achieving their desired goals and objectives, due to
increased revenue and cost reductions globalisation generate increased profits for company and
shareholders as it impact positively. It increases competition in market place that impact on Pret

a Manger and other companies. The competition is related to services or products price, quality,
cost, manufacturing etc. that affect overall business activities and functions.
Pret a Manger is the international sandwich shop chain based in UK, founded in 1983 and
has over 450 shops in nine nations. The first Pret a Manger is founded by Jeffrey Hyman in
Hampstead, London. The firm is serving the best food or sandwiches to customer which helps to
grab the attention and retain them for longer with company. They serve quality products to
people which makes positive image among group of people or in marketplace. Pret a Manger
shops are located in UK, Dubai, US, Hong Kong, Singapore, Netherlands, Denmark, China and
Germany. They run its business with the help of skilled and talented people with them. Firm
employed 1400 employees of whom 60% were from another European Union countries and 19%
were from UK. Organization organizational structure is divided between their main offices and
stores.
Globalisation impact on Pret a Manger and its shops in many countries, globalisation is
the procedure of integration and international arise from interchange of the world views, ideas,
products and aspects of culture. It affecting the overall functions and activities of company
within different market place.
Aim-
To analyse the effect of globalization on business performance: A case on Pret a Manger.
Objectives-
 To determine the importance of globalisation to business.
 To analyse impact of globalisation on business performance of Pret a manager
 To evaluate relationship between globalisation and business performance
 To identify the modes of entry into international market.
 Research questions-
 Why globalisation is important for business?
 What is impact of globalisation on business performance?
 What is relationship between globalisation and business performance?
 What is the best ways or modes to enter into international marketplace?

CHAPTER: 2 LITERATURE REVIEW
2.1 Importance of globalisation
Globalisation leads to increase competition, which is related to service and product price
and cost, technological adaption, target market, quick manufacture by company and quick
response. Discussed by Payonk, Lyashenko and Kvilinskyi, (2015) globalisation is very essential
for business as it helps to increase productivity and profitability. It is defined as integration of
organizations and government from perspectives of business, one impact of globalisation is that
is markets expansion. It helps company that previously sold their products only at domestic level,
as now start selling goods at international level effectively. With the help of globalisation
process, they able to expand their venture and increase profit margin. It is important for business
as to give opportunity for direct invest in foreign market that support to improve their financial
performance as well as operational efficiency. With the help of business expansion process the
company is able to increase customer base and grab the attention of people via developing
marketing plan in other nation. Wetherly and Otter, (2014) elucidated that globalisation is very
important for business as it supports to raise position in marketplace which is beneficial for them.
Boost technology, restructuring industry, progress of global organizations and enhancement of
productivity are the several benefits of globalisation for firm that leverage its reputation and
financial budgets. It is essential for company as to build strong relationship with customers and
build its positive image in market. With the help of expansion of products or services they can be
capable to beat competitors and generate revenue. Imran and Tanveer, (2015) stated that firm
need to make effective plan related to foreign investment and exchange process of goods that
help to enlarge its business all over the world and increase financial budgets or sales more.
Globalisation is worldwide movement towards financial, economic, integration, trade and
communication (De Jong and van Houten, 2014). It implies starting of local and nationalistic
perspectives to the broader outlook of the interdependent and interconnected world with free
transfer of services, capital and goods across national borders. It helps two or more countries
coming together as one large global economy and make international trade easier. Globalisation
grown due to advances in communication and transportation technology. With maximized global
interactions, it brings progress of international trade, culture and ideas. There are different key
elements which influenced procedure of globalisation: development and improvement in
transportation. As per view of Bayraktar and Oly Ndubisi, (2014) Transport improvements mean

that people and products travel more rapidly it is the main causes for globalisation. Progress of
global media, increased mobility of labour and reduction in tariff barriers is the other
consequences and causes of globalisation that affect business actions. In simple words,
globalisation refers to the integration of regional and national societies, economies and cultural
through communication, transportation and global network of trade. According to Quatraro and
Vivarelli, (2014) Globalisation aim is development of all person of the world and to secure socio
economic integration through the free flow of information, people and products all around the
world.
2.2 Impact of globalisation on Pret a manger
According to Cania, (2014), international trade and investment and advancement in
technology is the key drivers that drives company towards business expansion in context of
products or services. If company manufacture products with less cost and sells in new market
place at cheaper price make entity able to increase their market share. Globalisation put negative
and positive impact on firm as well as its business performance.
Positive impacts of globalisation on organization include the range of factors which is
trade technology, capital flows and investments, culture and organizational structure,
competition etc.
Reijonen and et.al., (2015) argued that due to changes in government trade policy, it
impacts on entity business performance in which they have to deal with many problems. Lower
taxation policies give benefits to company as trade successfully, but change in this international
regulation or rule taxation policy get changed which affect business. If company pay taxes
according to rules it has resulted in higher profitability and increase spending in development
and research.
Advancement in technology brings many benefits for organization as they can easily
expand their business across the border and able to communicate with their existing and new
customers effectively with the use of technologies. It impacts negatively on business
performance and its financial budgets. If they cannot implement new technology within
organizational structure they do not be able to manage their business in several nations and
understand customer preferences. But with current technologies they serve its best and conduct
more research based on competitors and clients perspectives. According to Crane and Matten,
(2016) investment in technology brings higher chances of building the self-sustaining ecosystem

that moves innovation. With the help of advanced technology company conduct market research
and manufacture creative products that grab the attention of new and existing customers.
Every economy or society has different culture and beliefs that might be put negative
impact on business performance and its capital expansion procedure. People with different norms
and culture avoid to except thing which is not appropriate for them as belongs to their culture, if
business will sell products and its cannot match with existing economy culture it directly impacts
on financial performance and profit margin. Zouaghi and Sánchez, (2016) argued that if business
adopt the culture of different country as to expand their venture they can be able to provide
goods to people meet with their needs. It is beneficial for them and clients at international market
attract more towards purchasing things and cannot avoid it.
Customer preferences are changed according to current trends and health concern that
impact on organization manufacture process of goods. People want satisfaction if they purchase
products that are suitable for them and accordant to their lifestyle. According to Falahat and
Migin, (2017) When company manufacture goods and consider customer requirements they can
be able to drive people towards buying and increase clients base in new market.
If company wants to trade international market they must be consider climate or weather
change which impact on business trading process. As discussed by Santoro, Vrontis and Pastore,
(2017) if supply chain is not flexible or adjustable it leads to bottlenecks, if shipments of
products from on part of world is delayed because of sudden changes in weather or climate shift
it directly impacts on profitability and company financial budgets which is not appropriate for
overall business performance. Entity must give its contribution to CSR in new market that gives
many opportunities to them as to run their business successfully within international market.
2.3 Interrelationship between business performance and globalisation
The relationship between organization performance and globalisation is based on foreign
trade benefits and increasing productivity and profitability. Globalisation provides platform or
opportunities to company as expand their business in different nations. It changes the whole
structure of business and its working structure that makes it as leading brand upon competitors. It
is beneficial for economy, company will help to decrease rate of unemployment and poverty in
country via expanding their business and provide the best employment opportunities to local and
residential people. As per view of Kumar and et.al., (2017) it makes trade easier and provide
access to the variety of goods from nation and make easier for company to acquire another ones.

It provides the better opportunity to business to understand or learn different customs, languages,
traditions, etc. that is beneficial and effectual for them and help to deal with several companies.
Due to reduction in trade obstruction, business will trade their services or goods to other country
more easily. Free flow of technology from one nation to other, free movement of labour among
nations and creation of the environment for investment and flow of capital among countries is
the three advantages or benefits of globalisation for business.
Globalisation creates employment opportunities, as it increases more and more
organization is setting up their business in other nation. With the help of business expansion
procedure people get jobs without having to drive to other country in context of better jobs
opportunity. In current decade international organizations such as Pret a Manger, Google, etc
operate in UK and many people work for these firms in UK. Without globalisation, European
people could not have the opportunity to work or perform for firms in country. With
globalisation, it becomes easier for company to move across borders to various parts of the world
to expand their business and acquire better knowledge as to deal at international market. Hall and
Lee, (2014) stated that globalisation is also beneficial for people who wants to acquire better
education. As outcomes of globalisation, customer has access to the best quality of services or
goods through world. Organization strives to offer or deliver quality products to people and they
have liberty of choosing products consumer thinks is suited for their needs and requirement.
2.4 Modes of enter into international market
According to Wheelen and et.al., (2017) if company expand its business and they have to
make the best strategies which help to accomplish task or business objective. But with these
plans or strategies they need to consider the most appropriate modes of entering into
international market. Organization starts as local business and adopt several modes to enter into
international market. Company grow within its domestic markets and emphasis to expand their
venture at global level and also try to replicate their success in overseas markets. As per view of
Kalkan, Bozkurt and Arman, (2014) licensing and franchising, foreign direct investment, Joint
Ventures, Strategic business acquisitions are the various modes of entry within international
marketplace or expand business in different country.
Firms wants to established the best presence in overseas market with minimal risk,
franchising and licensing strategy or mode allows business assume risk on behalf of
organization. Discussed by Shenkar, Luo and Chi, (2014) franchising is best mode of entry for

food and beverage sector that help to offer food products to customers. It permits business for
expansion process in one or multiple nations with lower investment. With the help of franchising
or licensing company can be able to build their positive image in new market and gain
knowledge about local market.
Direct exporting include directly exportation process of products to other overseas
market, it is the quickest mode of entering into international market. Product owner in UK can be
able to go out to reach its target consumers through direct sales. Via online and direct selling
process is successfully accomplished which help to increase profit margin and financial budgets.
Chen, Tang and Feldmann (2015) elucidated that direct sales build good reputation of company
in new market place as they deliver quality goods to them and meet with their needs. Advantage
of direct exporting is that company utilize direct product exporting strategy to test their
effectiveness of goods in new place or other country before making the wider investment in
overseas market. But this strategy would put negative effect business as well as its financial
performance because direct sales via online is really high cost plan.

CHAPTER: 3 METHODOLOGY
3.0 Introduction
Methodology is defined as the model which researcher employ for design,
implementation, planning and achievement of specific project objectives. This section of project
details how research methods are used, research is conducted and reason for selecting several
methods includes within research methodology. Research methodology is technique that
studying how researcher done research or accomplish it successfully. It is the best way to
systematically conduct research and solve any issues by logically adopting different steps. It
defines the methods in which data is gathered in research project or report. It is the justification
for using the specific investigation tools or techniques. Types of methodologies such as:
3.1 Research philosophy
Research philosophy is the belief about method in which information about the
phenomenon must be collected, used and analysed. Epistemology as opposed to doxology
encompasses different philosophies of research approach. Every stage of research project is
founded on assumption in context of nature and sources of knowledge. Research philosophy is
divided into four categories: Pragmatism, Positivism, Interpretivism and Realism. Researcher use
Interpretivism research philosophy in this project that support to get better outcomes.
Interpretivism is known as interpretivism include researcher to understand elements of report
thus it integrates human interest into the project. This approach is based on naturalistic technique
of information gathering such as observations and interviews.
3.2 Research design
Research design is the choice between quantitative and qualitative research techniques,
and also refers to specific method of data analysis and data collection. It is divided into two parts
conclusive and exploratory. Researcher in this study used exploratory research design that helps
to explore particular aspects of investigation area. It cannot provide conclusive and final answer
to research questions. Researcher change direction of report to certain extent not fundamentally,
accordant to different evidence achieved during its research procedure about chosen topic.
Researcher will use this design typically to identify issues that do not clearly defined or mention
yet. It is conducted in order to identify nature of issue, not intended to offer conclusive
information. Exploratory research design help to provide better understanding of project and
problem. Researcher conducting exploratory research design to change directions.

3.3 Research types
Research types are divided into two categories qualitative and quantitative. Qualitative
type of research is based on feeling, sounds, words and emotions elements. Data is considered as
qualitative in way if it does not analyse by mathematical methods. In this project researcher will
use qualitative type of research that help to gain insights and also support to deeply understand
the importance of chosen topic. Researcher will choose some real life situations and people to
gather relevant information about selected topic that is very helpful to get the better results.
Researcher will use forms, images in different media as well as spoken words in these methods
to gather information and relevant data.
3.4 Research approach
Research approach is procedure and plan that consists of several steps of broad
assumptions to detailed technique of data analysis, collection and interpretation. It is divided into
three types such as deductive research approach, abductive and inductive research approach.
Deductive research approach is tests the validity of hypothesis or assumptions. On the other
hand, abductive approach begins with puzzles or surprising facts and research procedure is
devoted its explanation. In this report researcher adopt Inductive research approach. Thus,
when adopting the inductive research approach, starting with chosen topic as the impact of
globalisation on business performance, the researcher tends to create empirical generalizations
and determine preliminary connection as they progress through research.
3.5 Data collection
Data collection is the best procedure of gathering information from all the accurate or
relevant sources to get answer to research issues, evaluate outcomes and test hypothesis. Data
collection process is divided into two categories: primary method of data collection and
secondary technique of data assembled. Secondary data collection is types of data gathering, in
this types of methods information is already been published in newspaper, journals, magazines,
online portals and in books. On the other hand primary data collection methods are quite
different from secondary. Research use primary data collection method in which they use
several tools such as survey questionnaires, experiments, observation and interviews in order to
get accurate results in ending of research process. Primary information gathering is taken
statistical or quantitative form for example, graphs, tables, charts and diagrams.