Analyzing the Impact of Globalization on Business Operations at RCS

This report delves into the multifaceted impact of globalization on business operations, using Ray C Smith (RCS), a UK-based family business, as a case study. The analysis explores the driving factors of globalization, including historical, economic, resource, production, and technological influences, highlighting their significance in shaping international business strategies. It examines strategic complexities in the global environment, such as political, economic, supply chain, legal, and environmental challenges, and their implications for organizations. The report also evaluates the influence of globalization on leadership, governance, organizational functions, and ethical considerations, including decision-making processes and internationalization strategies. It concludes with an overview of RCS's potential routes to internationalization and offers insights into navigating the complexities of the globalized business landscape.

Impact of
Globalization on
Business operations

Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
Analyzing the factors driving Globalization............................................................................................3
Strategic complexities associated with global environment.....................................................................5
Influence of Globalization on Organizations...........................................................................................6
Influence of Ethical and Sustainable Globalization on Organizational functions....................................7
Evaluation of ways in which decision making can be effective in Global context...................................8
Routes to Internationalization RCS can adopt.........................................................................................8
CONCLUSION.........................................................................................................................................10
REFERENCES..........................................................................................................................................11
Books and Journals................................................................................................................................11

INTRODUCTION
Globalization is the most significant development in entire world collectively that led to
many positive social and economical changes. The process has helped kin building up new
knowledge and capabilities in businesses as well. This has been facilitated by not only free
movement of goods and services across borders but also by movement of people, capital,
technology and knowledge. However, these positive benefits were not debarred of further
challenges this development have bought (Djelic and Quack, 2018).
.
In this report, it is attempted to discuss each and every aspect of relation between a
organization and process of globalization, and its impact as well. For this purpose report have
taken example of a renowned family business enterprise of United Kingdom, Ray C Smith
(RCS). RCS was a business originally had its boundaries to coal, but by the time expanded to
storage and transportation services as well.
MAIN BODY
Analyzing the factors driving Globalization
Though globalization is the subject matter that is concerned with spreading of business or
organization like RCS to widespread areas and hence achieving its organizational and business
objectives, attaining zenith and new heights to raise stature of business operations and standards
of its business competency. But, when it is seen in context of economics and economic factors,
globalization of a business organization is driven by several factors. These factors play their
respective roles and influence process of organization in the organization. Thus their mentions
and discussion about these factors lays effect over process of globalization and what stands the
relation between them becomes important (Meyer, 2017). Some of the factors and their influence
on globalization process is discussed in report.
Historical- Historical factors are not related with history of organization, RCS, or even not
related with history of country in which its business is situated. But, it is more related with
history of its business operations and the nature of work it does. For example, warehousing and
storages have been part of overall business activities in the world. They formed part of every
supply chain that reflects trade relations in history. Therefore, their significance in trading and
supply chain activities in global scale is of no doubt. The nature of such kind of business
activities is offering support to trade and it has from long been supporting the same. The fact is
that now this facilitation has become more formalized.
Economic- Economic factors are related with economics of business organization. This means
more precisely involves factor cost, cost of human capital and other factors that effects financial

health of organization. For example, when RCS, a company of warehousing and facilitating
services is looking forward of setting up and expanding its business over any new country, It is
required to look at various points such as cost of land, labor cost, cost of legal ,compliance,
taxations and many similar factors that are impactful on influencing RCS’s decision of this
expansion (Salles-Djelic and Quack, 2018). However, it must be noted that consideration of these
economic factors are totally restricted to organization itself and not at level of industry or nation
as a whole.
Resources- Resource that are studied in this context forms those natural or manmade resources
which are helpful in business operations and all sort of important functions of a business
organization. When any organization thinks of taking its business operations to any country or
region it make a considerable analysis or availability of different kinds of resources that supports
its production, distribution and other functions in best profitable manner. Talking of the RCS, the
company has no major production function, therefore the requirements of RCS regarding natural
resources are not that substantial and it goes on mainly focusing on economic factors rather
Natural resources.
Production- For a company involved in production and manufacturing of goods and services
production factors, its components and issues related to this business function most prominent
and substantial. Therefore, these organizations are widely concerned for carrying out these
functions without any hurdle (Aggarwal, 2018). Before making up any decision about setting
factory or production plant over any other region and country, manufacturing companies take
look over any necessary support needed for uninterrupted production of goods and services.
While, RCS is an organization engaged in providing services that are in support of a chain
between production of goods and their distribution to people in market. RCS is not needed to
much worry about production factors. It is just required to analyze what goods are produced in a
particular country where it is planning to expand its business and make necessary technological
and logistical arrangements according to it.
Technologies- Technologies and technological factors are most important factors in modern
times that are driving decisions related to globalization and expansion of businesses around the
world. As they say, technology is new age solution to every problem. It is most relevant and
applicable in context of business organizations. Technology forms not only solution for all type
of business operations but it is also required for their smooth and effective channelization as
well. RCS is most likely to be driven by this factor in case where it is thinking of expanding its
business over any other country. Providing efficient storage and distribution of goods have
become more challenging and complicated than manufacturing in modern world. Therefore
technological driving factors are immensely required in there, so that necessary storage or
hoarding can be made of goods, belonging to several features (perishable and non-perishable)
and also necessary protection of them can be made (Shaburishvili, 2017). Scaling and
measurement of qualities and quantities of bulk goods is also driven by technology and

technological equipments. Hence, RCS shall be making an efficient analysis of these factors
while making any considerable decision of globalization and business expansion.
Strategic complexities associated with global environment
Strategy can be defined as adopting, cultivating and inculcating necessary changes in
organization which are required by needs of modern times in business environment. These
changes are made in order to support long-term goals and achievements in organizations.
However, these changes that are required to bring in organization are not debarred of challenges
and complexities, which any organization faces before making any suitable and necessary
changes for gaining favorable advantages from such changes. Looking more specifically into it,
business environment today have expanded its wings across seas, in global wide. Hence,
complexities and challenges associated to this environment also lie in global context and not
restricted to any local market or any industry specific. Some of these common challenges are
discussed in report.
Political complexities- Any business organization is necessarily operating in a land and where it
has to be part of society that exists in that land. Lands are regulated by governance. Governance
carried on by administration and chosen political representatives. In a democracy, politics is
driven by ideologies and beliefs. And, as ideas and beliefs are psychological elements, they are
bound to be dynamics and changeable (Lucas, 2021). This dynamism forms political
complexities, to which organizations can fall vulnerable to. However, not all sort of political
beliefs are seen affecting businesses bur what affects them are mostly related to business
sentiments of ruling government. Now, since business environment have drifted from traditional
approach and became global in nature, complexities are also lying in global nature. For example,
when RCS is planning to operate in a country in which government has capitalistic business
sentiments, then circumstances for its business are favorable. But when, it tends on operating in a
country where sentiments are communist, business circumstances can be unfavorable. Similarly,
a hyper nationalistic wave that is seen across the world now, especially after Coronavirus
pandemic is detrimental to businesses like RCS which are global players and forms part of
essential supply chains.
Economic complexities- Like political complexities, economic complexities are also way much
dynamic and unpredictable. It seen that economics is also driven by beliefs and sentiments
around, that exists and also get distracted under influence of such beliefs. For example, looking
at Brexit. The deal, ever since conception of its idea, is seen influencing a lot of business
sentiments regarding future economic status of United Kingdom. When no concrete strategy was
developed in United Kingdom, and even when proven results of Brexit were not seen in market
of UK. Business persons, organizations, investors and many other similar stakeholders had
already developed a mindset that this was a failed decision of United Kingdom. As a result, they
were seen divesting their investments and even some organizations had decided to quit market of
United Kingdom. Therefore, it is evident that economic sentiments around the world too have

many complexities (Ceniga and Sukalova, 2020). And, RCS, operating in global value chain
becomes prone to such complexities.
Complexities of Global supply chain- Global supply chain is a term that refers to a process of
travelling of goods and services from different steps and through participation of various
business organizations located at different part of the world, before these goods reaches to their
final consumers. Many big corporate, Multi-national corporations like RCS, essentially operate
in different parts of the world. In these parts their various business operations are divided in
accordance with availability of resources, knowledge, cost of factors and other strategic
requirements of businesses, in that country or region. For example, operations related to
Research and Innovations are undertaken in advanced countries and operations related to cheap
production and assembling are undertaken where factor cost and labor costs are cheap. When
these organizations operate in such large scale in different parts of the world, sometimes it gets
difficult to manage and coordinate between operations themselves, which are essential for
meeting a common organizational goal (Flew, 2020). Resultantly, it is seen organizational
efficiency and competency gets negatively affected. Therefore, Global supply chains are part of
strategic complexities.
Legal and Environmental complexities- Firstly, talking about legal complexities. Legal
compliances are associated with laws and rule of land, prevailing in that country where a
business organization has its entire business, a part of business or any other business interests as
well. These legalities are formed by government in consideration of interests of society, people,
social justice and their rights. Since business organization is aiming at its strategic advantage and
profits only, it is but obvious that interest of people and interests of business will collide with
each other, and one will supersede the other at times. Hence, there comes a need to establish a
right balance between these two but establishment of that balance is a complicated task. RCS and
other similar organizations are bound to fulfill legal requirements (Berglöf and Cable, 2018).
Any sort of non-compliance will for sure affect interests of organization adversely or even can
bring organization to closure entirely. But, at the same time they are needed to make profits for
continuation of their business as well. Therefore, in this legalities too have strategic complexities
in global business environment.
Influence of Globalization on Organizations
Globalization, or global connectivity and integrity have levied impact on RCS in many
ways. However, its most impacts are considerably positive, establishing a win-win situation for
everyone. But the complexities and intricacies involved in the process cannot be spared apart
from any discussion and analysis. In this section, the report has attempted to discuss influence of
globalization in an organization, RCS, in different contexts.
Influence on leadership and governance- After globalization role of leadership and efficient
management have increased significantly in an organization. For the first instance, leadership
have become more prominent in RCS because now the scale market have expanded globally. For

RCS, now entire world is a market. In this manner, RCS and its management therein is required
to establish effective and efficient coordination between all business operations in different parts
of world and distribution of goods and services to customers have to be also very efficient (Shih,
2020). Thus role of leadership gets more important. Similarly, after Globalization RCS is now
recruiting employees from different parts of the world. Therefore, entire workforce of employees
in organization has become differentiated in terms of religion, race, language, color, beliefs and
psychology. Thus, leadership plays a very efficient role in integration of these employees with
other workforce and organizational culture and goals. Also, leaders play important role in
understanding grievances of these employees and help resolving them. Motivation of migrated
employees is also a very challenging task and need very compatible leadership skills to deal with
this. However, it must be noted that Leadership is not a onetime task but it is a continue process.
Similarly, it is required to exist at every level in RCS and in each department, and should not be
solely performed by topmost authorities and managers.
Influence on Organizational structure- Globalization have made RCS and many other similar
multi-national corporations to move away from traditional business operation styles and adopt
new ways meet new needs of changing times (Kovács and Kot, 2017). In context of
organizational structure, the foremost influence was seen in the vision and missions itself. In its
vision RCS have become global, looking at entire world as one market and destination. It is
seeking to expand all across the globe, together with meeting needs of all sorts of consumers
across the world. Similarly, in the structure new departments have been added, after the company
went global. For example, as many units of RCS is working in different countries, to establish
coordination among all of them a separate department is made which have absolute authority and
total responsibility in this context. Also, this department has many divisions in it, divided in
accordance to regional and continental segregations.
Influence on organizational culture- Culture in an organization can be regarded as intangible
and invisible force in an organization, which makes employees and other elements of
organization to act in accordance with goals and objective of organization. It is the cause that
motivates people to act and at the same time helps ensuring their continuous engagement. In the
effect of globalization on culture of RCS it can be said that globalization have added many new
substantial values in culture of organization. It is seen becoming much social and integrated.
Discrimination and conservative attitudes are neither reflective in employees nor in authorities
nor senior managers. Even, policies and frameworks are not reflective of this belief at all.
Influence of Ethical and Sustainable Globalization on Organizational functions
Ethics
Ethics in organization is basically related with social responsibility that an organization
have towards society and people. For example, along with seeking to make profits for itself and
for providing goods and services, RCS must look at some agendas which are important in
elevating social status of people and eradicating evils from society (Barber, 2005). It should aim

at taking steps towards promotion of essential services of education, health etc. among
underprivileged regions of the world and also for generating large scale employment
opportunities for every section in global society. When RCS will be aiming at fulfilling such
agendas on global scale, unbiased for any specific regional identity. This can be regarded as
Ethical influence of globalization. RCS is doing this by forming a separate department which has
authority and responsibility of considering such duties in organization. Also, a consistent annual
provision for these noble causes is made by RCS out of its total profits.
Sustainability
Sustainability is one of the main areas of focus of RCS. Sustainability means using
natural and other resources, required for business operations, in such manner where they can be
better sustained for usage of future generations as well. This way,, RCS do not aim at only
catering and understandings needs of present time, but also of future generations. RCS have
made due compliance with sustainable approach towards business operations at every unit and
every sub-unit of its organization. Also, it have a mechanism for regular monitoring of these
units so that they do not engage in any over exploitation of resources or any unjust use or
procurement of them. This is for avoiding any such practice that can be harmful to people,
upcoming generations and reputation of RCS itself.
Evaluation of ways in which decision making can be effective in Global context
Globalization has increased the role of leaders and leadership in the organizations and the
styles of their functioning and hence it is needed that these leaders must play an effective role in
channelizing decision making process in organizations. The role of decision making should be
best imparted to senior manager and leaders because of their promising experience in business
and management world and also because of the vision and perception they have developed as a
result of many years of their tenure, where they have encountered many challenges and resolved
them with utmost efficiency.
Also, the leaders in this context are required to have broader mindset and outlook towards
problems existing in a business environment in modern times. This argument have a simple
reason behind that,, traditionally in a business influence of outer world was constant. But in
modern times, organizations like RCS, operating at global scale are very much under the
influence of external factors (Dussel and Ibarra-Colado, 2006). Their strategy and policies are
directly and indirectly affected by external factors. Also, looking at nature of business of RCS,
the company is involved in offering services of storing and warehousing of products of different
companies together with ensuring safe distribution of products till consumers, so this sort of
business is a part of global supply chain directly. Therefore, its relation with factors in global
environment and factors are also directly. These points requires an understanding that senior
managers and leaders with best use of available skills in RCS, technology along with their
personal knowledge and experience can frame appropriate decisions and strategies which are

helpful for RCS in not only meeting needs of present times but also future requirements of
organization.
Routes to Internationalization RCS can adopt
Internationalization is the process going cross borders and overseas in terms of business
operations and scales of conduct. It is not necessary that only big corporate like RCS can
undertake process of internalization, small businesses too can also have business operations
across borders with right strategy and approach. But the process itself has its own challenges and
barriers, and to these barriers neither big corporate nor small businesses are spared. Each
category of business faces these barriers in some way or other. The report has discussed some of
these barriers and ways in which they can be overcame so that internationalization of business, in
every sense remains supportive business growth and prosperity (Metcalfe, Rees and Rees, 2010).
Financial barriers- Financial barriers are one of the most foremost and obvious barriers in the
process of internationalization. The requirement of capital to invest is needed to expand one
business and setup a business unit in overseas market, along with investments in research and
innovation; marketing and obtaining governmental clearance are huge. Not every business is
capable of meeting this. Even if an organization decides to borrow the money for meeting this
need, amount of interests and risks involved are very substantial. Therefore, for RCS it is best
suggested to draw financial needs for this purpose from internal sources itself. The internal
balances for RCS are also good and suitable appropriations can be made in due regards of
internationalization and globalization and expansion of business.
Knowledge barriers- Knowledge barriers are related with lack of information and knowledge of
markets that an organization is willing to target. When an organization thinks of expanding its
business to any foreign market, it is supposed to acquire sufficient about various matters there in
country. For example, about market and consumer preferences, about stability in business as well
as socio-economic environment, legalities, norms and regulations and many more factors.
Therefore, RCS is required to invest a good amount in marketing and other areas of research
pertaining to targeted market. And, make best possible evaluation of potential success and
failures (Petras, 1999).
Managerial barriers- These barriers are consisted of wide range of limitations in an
organization that are related with managerial functions and lack of skills in the same. Managers
perform a range of functions in an organization from planning, organizing of resources,
establishing coordination among departments and motivation of employees as well. Their roles
are most important and sometimes can be regarded as direct key to success of organization. Any
deficiency in their performance directly impacts success rate. Therefore, it is best suitable for
RCS to recruit mostly native staff of any particular country over managerial and sub-managerial
posts in units established in that country. Also, an extensive research about markets can be
supported by human resources of that region, as they have best knowledge of markets there.

CONCLUSION
From the above discussion in the report, it can be concluded that Globalization has many
significant and diversified impact over business operations of an organization. Whether, its
impacts are good or bad, this question is debatable and varies between organization to
organization as well. This differentiation between organizations, about impacts of globalization
is seen because of efficiency of senior managers and leader in respective organizations.
Globalization has increased role of leaders and managerial leaderships and their efficiency is
direct key of success for any business. This is mostly attributed to the fact of complexities and
difficulties posed by expansion of businesses, which require right, efficient and sufficient ways
to deal with situations.

REFERENCES
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Aggarwal, R., 2018. The Laws of Globalization and Business Applications.
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globalization. Globalization & Business.
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Dussel, E. and Ibarra-Colado, E., 2006. Globalization, organization and the ethics of
liberation. Organization. 13(4). pp.489-508.
Metcalfe, B. D., Rees, C. J. and Rees, C. J., 2010. Gender, globalization and organization:
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Petras, J., 1999. Globalization: A critical analysis. Journal of Contemporary Asia. 29(1). pp.3-
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