Impact of Globalisation on Corporate Structures of Multinationals.

This report investigates the impact of globalisation on the corporate structures of large multinational companies, with a specific focus on GlaxoSmithKline. The study explores the concept of globalisation in the context of multinational business organizations, the significance of corporate structure for effective operations, and the influence of globalisation on GlaxoSmithKline's structure. It also examines the challenges GlaxoSmithKline faces in implementing global business operations. The report includes an introduction, literature review, methodology, data analysis, discussion, and reflection, along with recommendations for alternative research methodologies and a conclusion. The literature review covers globalisation, corporate structure, and the challenges faced by multinational corporations. The research aims to determine how globalisation shapes corporate structures and the key challenges businesses encounter in the global market.

Table of Contents
TITLE .............................................................................................................................................1
Chapter 1: Introduction ...................................................................................................................1
Chapter 2: Literature Review ..........................................................................................................5
Chapter 3: Research Methodology ..................................................................................................9
Chapter 4: Data Analysis and Interpretation ................................................................................11
Chapter 5: Discussion ...................................................................................................................22
Chapter 6: Reflection & recommendation for alternative research methodology. ......................24
Conclusion ....................................................................................................................................25
References......................................................................................................................................26
Appendix .......................................................................................................................................28

TITLE
The impact of globalisation on the corporate structures of large multinational
companies and the major challenges they face.
Chapter 1: Introduction
Overview of the Research
Economic process is principally positioned for the outgrowth of a global system of
economic system. In its simplistic form, globalisation is determined to the widening, deepening
or speeding of global connectedness which promotes international trade among individuals,
businesses and governments (Beikkhakhian and et. al., 2015). Globalisation is mainly concern
over creating new request in the economic, political, and cultural features which a business must
take into consideration for wider expansion of business operations and attain growth.
Globalisation is a significant term which encompasses over providing opportunities to the
businesses to develop inside the world wide centre by the implementation of work in a planned
way. Globalisation promotes corporate structure of wide transnational businesses, therefore
businesses that are active in international business are known as multinational businesses.
Multinational businesses are mainly depending over one region but has enterprise functions in
several areas. However, for better execution of international trade it is important for the
businesses to conduct business operations within corporate structure in respect to suitable
execution if the operations. Thus, corporate structure performs huge function in systematic
implementation of organisational operations, that leads towards achievement of significant
position within commercial centre. In the present study area GlaxoSmithKline is the selected
business (Brambilla, 2015). It is a British transnational pharmaceutical business, which has its
global operations. The report is based on the analysis of the report supported to the evaluation of
the impinging of economic process on the artefact of business. For providing support to the
work aim and objectives are created that covers the major intention of an investigation.
Literature review is developed for administration of detailed evaluation over the selected
dependent area. Proper selection of methodologies is also made to support the activity in
potential manner. Along with this information evaluation will be interpreted through the support
of primary investigation and at the end recommendation has been provided over the outcome of
1

the work and reflection has also been taken place over the personal experience of the
investigator.
Background of the Research
Globalization mainly motivates businesses to internationalise and to considerably
develop the range and sort of cross-border operations in products, facilities and funds. Also, the
economic process assist to regular spreading and natural action of goods, technology and
knowledge in the globe, irrespective of the origin (Crane and Matten, 2016). Globalisation is
referring as a global drift, through that economies in the world lose their boundary line and
connect with all at global basis. GlaxoSmithKline is a seizable British international
pharmaceutical business with its base office is in Brentford, London. Company has started
operating from the year of 2000 by the integration of GlaxoWellcome and SmithKline Beecham.
The company is operating in pharmaceutical, vaccines, oral healthcare, nutritional products, over
the counter medicines. The revenue of the firm is around 30.821 billion which is attained through
its worldwide operations. The key motive of GlaxoSmithKline is to performing international
operations in accordance with the corporate structure for the intention of implementing well
planned operations of business. A proper corporate structure assists the firm in accomplishment
of organisational objectives through the proper classification of organisational operations.
Rational of the Research
The inquiry work into proper action is corroborated over influence of economic process
on the embodied structure of wide international businesses and the issues that they countenance.
This is a broad sphere of research area on that research execution is effectual in processing the
in-depth cognition related to the area of economic process and how it affects the corporate
structure of multinational business (Debicki and et. al., 2016). The major aim of administration
of an investigation based over the individual involvement or willingness, thus investigation on
the particular area is being conducted to developing the cognition and acquirement of the
research. This study is effective for individual learner, researcher and the students who are
curious towards the related section of investigation or wants to acquire their personal and
professional acquirement in respect to the domain of globalisation. This study is efficacious in
assisting a person in enhancing their individual and professional capability that leads towards
achievement of potential position. The major reason for choosing the study on the impact of
globalisation on the corporate structures of large multinational companies and the major
2

challenges they face is that it is a very crucial aspect in today's business environment. Therefore
this study is effectual for in providing suitable knowledge in regards to the element of
globalisation as it creates value for the individual who are having their future growth
professional in the same area. The study area is so wide and helps in exploring the knowledge
which could be effective for an individual in attempting their future goals in more effective
manner.
Research Aim
Research aim defines as the direct thought of the investigator is to create an intention on
that the general inquiry is dependent. This part of investigation is effectual in transfer out the
research operations in effective manner to creating potential results (Doppelt, 2017). The key
aim of this particular investigation is " To determine the impact of globalisation on the
corporate structures of large multinational companies and the major challenges they
face". A case study on GlaxoSmithKline.
Research Objectives
The key objectives of this particular investigation that covers the aim of the investigation
are associated as below:
 To understand the concept of globalisation in the context of multinational business
organisation.
 To identify the significance of corporate structure over the effective operations of
GlaxoSmithKline.
 To analyse the influence of globalisation on the corporate structure of GlaxoSmithKline. To study the challenges faced by GlaxoSmithKline in the implementation of global
business operations.
Research Question
The major research questions which support the literature of this specific investigation
are determined as underneath:
 What is the concept of globalisation in the context of multinational business
organisation?
 What are the significance of corporate structure over the effective operations of
GlaxoSmithKline?
 What is the influence of globalisation on the corporate structure of GlaxoSmithKline?
3

 What are the key challenges faced by GlaxoSmithKline in the implementation of global
business operations?
4

Chapter 2: Literature Review
This evaluated as the key part of an investigation area, thus, literature is effectual in
conducting detailed evaluation over the study area to developing the knowledge base (Flick,
2015). This part of investigation is encompassing over secondary sources as in this section
communication taken place through determining the views and perception of generator and
authors with the support of auxiliary origin like journals, books, published investigation article
etc. Literature review is effectual in processing conjectural possibility that aids the activity in
significant way.
The concept of globalisation in the context of multinational business organisation.
According to the opinion stated through, Didem Buhari Gulmez, 2017, globalisation has
reached at the continuous pace in the current decades. It consists as an improvement that has
significant implications for the control and regulation of multinational organisation and
investment portfolios. Globalisation is mainly referring as a central action and desegregation of
organisations or individual at worldwide basis. Globalization is usually applied cause in the
organisational script, Therefore, it recognised as a procedure of conjunctive to the globe by
distribution of an organisation, sentiment, application or workforce. Globalisation has included
wider receptiveness within the international economy, an integration of markets on a global basis
and a movement towards a borderless globe, all of that have aids to increases in the global flow
(Hanson and et. al., 2016). The term multinational enterprises are referring as a corporation or
enterprises which possess significant point and execute multiple enterprise functions with the
help of a network of brand that are placed in antithetical geographical areas and each division
form its organisational scheme that are depend on the assorted marketplace. In the context of
multinational corporations, globalisation is trenchant in developing chance for the businesses to
develop their business functions at worldwide level for the reason of reaching at the competitive
edge.
The significance of corporate structure over the effective operations of GlaxoSmithKline.
From the views stated through Brain Hill, 2019, business corporate structure is mention
to a business of various segments or an enterprises unite within a business. Organisational
structure is basically works as the foundation of an enterprise, which is effectual in rendering a
proper outline specification to the business operations that leads towards reaching at the potential
results and outcomes. GlaxoSmithKline is a famous and leading pharmaceutical company which
5

operates at global level. As a large multinational company the key focus of GlaxoSmithKline is
to work within corporate structure as to keep effective running of structure operations. However,
a corporate structure promotes systematic execution of business operations and reaction the
processes of issues and ambivalence. There is multiple importance of corporal structure on the
effectual function of GlaxoSmithKline, in which few are described as below:
Systematic operations: This is the key benefit which is mainly attained by GlaxoSmithKline, by
the appropriate performance of business operations within corporate structure. Thus corporate
structure is efficacious in rendering significant aid to the businesses to transfer out their
operations in suitable way (Jenkins and Williamson, 2015). As a pharmaceutical company, it is
quite essential for GlaxoSmithKline to implement a good corporate structure for the purpose of
implementing systematic operations.
Higher opportunities: This also refers as another key importance of corporate structure,
therefore, this is effectual for the firm in proper execution of business operations and proper
execution helps the firm in attaining higher opportunities within market. A proper corporate
structure is effective in decreasing the substance of mistakes and struggle and this could be
resulted for GlaxoSmithKline in attaining higher opportunity within the international market.
The influence of globalisation on the corporate structure of GlaxoSmithKline.
According to the opinion of Andrew Button, 2018, Multinational corporations are
referring as the agents of globalisation, thus the occurrence of transnational organisations are
based on globalisation. Therefore, organisations are focuses over using globalisation as their plan
of action source of exploring their business operations at wider level. Globalisation has immense
influence over the bodied artefact of international businesses. GlaxoSmithKline is the large
international medical specialty organisation, that has its global transaction (Kumar, 2019). As a
largest pharmaceutical brand it is quite necessary for the GlaxoSmithKline to apply all the
enterprise dealing within the embodied artefact in respect to implementing organisational
functions in a planned way. Globalisation have affirmative impinging on the business structure
of GlaxoSmithKline, thus economic process is hard-hitting in rendition chances to the
organisations to explore their functions at global scale and as a pharmaceutical brand company is
depend over the execution of business operations within the corporate structure in which suitable
implementation of the operations are made under the expertise guidance. Organisational
corporate structure is referring as a complex issue which is requires to be considered by the
6

multinational corporations for the betterment and systematic operations of the firm. Corporate
structure is providing an organised way to execute business operations which helps the firm in
decreasing the chances of problems and struggle and gain better output. Therefore, as perdetailed
analysis of the communication it can be found that economic process has affirmative causing on
the bodied construction of GlaxoSmithKline and the business has attained benefits in terms of
attaining significant maturation and development through the implementation of the business
operations within corporate structure.
The challenges faced by GlaxoSmithKline in the implementation of global business
operations.
As per the opinion stated by Katie Reynolds, 2017, In today's modern business scenario,
managing a global business has become increasingly complex, thus businesses are grappling
through rapid change by strengthening economic actions in emerging markets, to development of
economic nationalism to developing legislations that are suitable in implementation of
enterprises function in effective way. GlaxoSmithKline is a mainly deals in pharmaceutical
products and services as the firm is interested on enhancing the value of an enterprise within the
commercial market for the reason of attaining higher growth and competitive position within
market (Zajda, 2015). Global expansion is quite tedious for the business and GlaxoSmithKline
has faced multiple challenges in the carrying into action of global organisational functions, some
major issues are associated as below:
The strategy execution gap: This is the key periodical that is featured by businesses during the
process of global expansion, thus it is quite tedious to carry forward the existing implement
strategy of the firm. However, the implementation of the strategy is based on the market
situation, and the market condition is different in each area. It is complex for GlaxoSmithKline
to execute a suitable strategy for the execution of the business operations during the expansion
procedure in effective manner (Laszlo and Cescau, 2017).
Foreign laws and regulations: This also recognised as another key issue faced by
GlaxoSmithKline during global business expansion. The key motive of GlaxoSmithKline is to
become the global brand in pharmaceutical industry, for the sack of attaining sustainability and
growth within market. In different country or region, the government laws and legislations are
different, as it is quite complex for the GlaxoSmithKline to conduct business operations as per
the implemented legislations of the government. This affects the overall working of the firm.
7

Local Competition: This is the key issue in business expansion, thus the organisations are
concern over implement effective operations for the purpose of providing higher competition to
their rivals. Expansion within a new place is tough for a business as the availability of
competition within market directly affects the operations of the firm. Therefore, this directly
affects the overall execution of the operations.
8

Chapter 3: Research Methodology
Type of Investigation: The key commitment of the investigator is to choose the most appropriate
kind of inquiry with the end goal of do the activity according to the proper assistance. This
segment of the investigation is for the most part includes more than two kinds for inquiry i.e.
qualitative and quantitative investigation (Mamic, 2017). In the existing enquiry, qualitative
investigation type is the most reasonable as it is viable on giving definite analysis over the result
of economic process over the business structures of enormous worldwide business and the
significant difficulties they face.
Research Design: This refers as the another major recognition of the investigator in the process
of research project, thus it is advert as a framework of different tools and methods which are
selected through the respondents to combine assorted components of the investigation in the
most reasonably logical manner to handle investigation issue. This part is mainly encompassing
over descriptive, exploratory and experimental investigation arrangement (Robertson and Dale,
2015). In the existing area of research work descriptive research design has been practically
implemented through the investigator, thus it is the most effectual tool in rendering elaborative
evaluation over the selected study area and this method is also effectual for qualitative study.
Research Philosophy: The best possible philosophical determination is required for an
examination to complete the work in right way to draw legitimate and solid result. Research
philosophy is predominantly founded on two sorts such as positivism and interpritivism
philosophy, consequently these two are viable in giving legitimate investigation over the selected
sphere of study. In the present investigation area, interpritivism philosophy has been taken into
legitimate thought through the investigator as it is about relevant source for qualitative research
and appropriate in offering help through building up a top to bottom hypothetical system with the
assessment investigation of writers and authors (Shim and Yang, 2016).
Research Approach: This segment of investigation assumes basic role in giving appropriate help
to the investigator to complete the activity as per systematic direction. Research approach is of
two kinds i.e. inductive and deductive research formulation as these two are successful in
rendering noteworthy help to the exploration work (Silverman, 2016). In the existing
exploration, inductive investigation formulation is used through the investigator as it is viable in
giving reasonable data the best possible help of hypothesis and theory. Accordingly, this
9

methodology is additionally most appropriate for examining qualitative research in successful
way.
Data Collection Tools: The key duty of an expert is to choose the suitable source of information
accumulation for the reason of drawing potential results that are in favour of the investigation.
The information collection in an investigation is based on primary and secondary origin of
information accumulation, thus both the origins are effectual in representation of accurate results.
In the existing investigation field both primary and secondary origins are utilised through the
researcher (Tan and Wong, 2015). However, primary investigation is effectual in gathering data
which is effective for the investigation and assembled for the identical basis, as in this
information is based on actual facts. In the primary investigation data has been gathered through
observation, survey, interview, checklist, case study etc. In this present exploration primary
information is gathered by executing an examination through the support of questionnaire. On
the other side, auxiliary investigation is executed to processing an abstractive exposure work
through accretion of data from books, published research articles, online sites, journals etc.
Data Sampling: Sampling can be referring as the procedure through, which respondents from a
large sphere of population are selected for the reason of gathering information just to achieving
positive results (Taylor, Bogdan and DeVault, 2015). This country is based on probabilistic and
non-probabilistic sort. therefore, in the present research work data has been gathered through
random sampling tool from the section of non-probabilistic sampling tools. The sample size of
40 respondents has been condemned into decorous state through the investigator.
Ethical Consideration: The essential thought of a researcher is to prosecute the investigation
ethics with the end goal of do the exploration activities in right way. While execution of a
inquiry work researcher has countenance multiple conclicts which are requires to be settled by
the analyst to moving forward in right way (Vom Brocke, Petry and Gonser, 2016). The key
obligation of investigator is to making sure their responsive in regards to the well-being and
safety of their personal data, Furthermore, this make an incentive in building trust. Time and cost
is additionally a significant issue for which analyst are executing a legitimate time scale in which
every one of the exercises are referenced according to the need and then again scientist needs to
set up a financial limit for the best possible administration of sources.
10