Analysing How Globalisation Impacts Business Success: A Study on H&M

This research report investigates the impact of globalisation on business success, focusing on the case of H&M. The report begins with an overview of globalisation, defining it as a process of increasing interaction and integration of economies worldwide. It then provides background information on H&M, highlighting its business model and expansion strategies. The research aims to determine the significance of globalisation in H&M's success, outlining objectives to identify globalisation concepts, benefits, and challenges faced by the company. Chapter 2 reviews literature on globalisation, its benefits such as economic expansion, technological advancements, and low labor costs, and challenges including organizational structure, cultural impacts, and environmental concerns. Chapter 3 outlines the research methodology, including the interpretivism research philosophy and inductive research approach, detailing the methods used for data collection and analysis. The report provides a comprehensive analysis of globalisation's impact on business success, offering valuable insights for understanding international business strategies.

Research Project

CHAPTER 1: INTRODUCTION
Topic: How globalisation can drive business success.
1.1 Overview of Research
Globalisation is consider as historical process that help in technological advancement as
well as human innovation. Generally, it refers to developing an interaction or integration of
economies across globe. In business, globalisation is change from firm that is related with single
country to the one that can operate in several other countries. With the help of globalisation,
organisation can conduct its business operations at international level and also get effective
opportunities (Crane and Matten, 2016). As multifaceted and complex phenomenon,
globalisation is regarded through some as capitalist expansion form that entails integration of
national and local economies in to global economy. The globalisation consists services, products
and economic resources of data and capital. It has developed because of advance in
communication and transportation technology. It enhanced the global interactions that comes to
the growth of culture, international trade etc.
1.2 Background of Research
Globalisation is an important concept a necessary role in growth as well as success of
firm at international level. The globalisation is regarded as wide term that applied to all the
commercial transaction. It is an economic procedure of integration and interaction that is related
with culture and social aspects. An expansion of the global market liberalise economic activities
of exchange of money along with products. In addition to this, globalisation represents global
integration of investment, information technology, culture and investment. The government
policies are mainly design to open economies internationally and domesticity to enhance growth
of poor countries along with rise their living standard. H&M is Swedish multinational clothing
firm and it is also known for fast fashion clothing for children, teenagers, women and men. The
concept of this firm is to provide fashionable and quality clothes at reasonable cost (Moghalu,
2014). Its main aim is to maximising and expanding its stores by 10 to 15% each year. In context
to globalisation, potential market of H&M is expanding and provides clothes according to
demand of customers.
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1.3 Rationale of Research
This research is based on How globalisation can drive business success. In this
globalisation is regarded as wide study area that plays a necessary role in developing functions of
business at international level. It include wide concept that gives better knowledge base in
context to globalisation (Fulgoni, 2015). This research is conduct for study purpose and the
particular knowledge area is helpful in developing knowledge base to achieve success sin future.
With the help of conducting this investigation, research skills as well as knowledge of an
investigator will be improved.
1.4 Research Aim
The main aim of this research is “To determine the significance of globalisation in
making business organization successful. A study on H&M.”
1.5 Research Objectives
 To identify the main concept of globalisation.
 To determine the benefits of globalisation on overall success of H&M.
 To evaluate the challenges faced by H&M at the time of expanding business activities at
global level.
1.6 Research Questions
 What is the main concept of globalisation?
 What are the benefits of globalisation on overall success of H&M?
 What are the challenges faced by H&M at the time of expanding business activities at
global level?
CHAPTER 2: LITERATURE REVIEW
Concept of globalisation
According to Soltes and Gavurova, (2015), Globalisation states that it is a process of
enlargement in economic, social, cultural, political relationship across the globe or international
boundaries. India's economy had gone through the significant policy shift in the year of 1990.
They introduced a new model concerning the world's economy i.e. (Liberalisation, Privatisation,
Globalisation)LPG. It has its own positive and negative affect on economy as it depend upon
each country. Current scenario of world is, developed economies has join with less developed
economies because smooth functioning of trade between markets and increase in migration. One
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of the main income source of globalisation process is generating through outsourcing i.e. work
can be done from any part of the world at low labour cost which impact the countries economy.
It established MNCs and increases the market potentiality. India has vast population which result
into increasing in purchasing power. It improved the picture of under developed countries in
adapting latest technology and introducing innovative products, increase in manpower,
employment opportunities. But MNCs encourages only literate people for employment compare
to illiterate manpower which leads to inequality. But still its importance is spreading in the
market because globalisation is a process for protecting or developing the countries economy
and make them to come together with common vision i.e. building a new world as a family.
Benefits of globalisation on overall success of H&M
According to Mutoko, (2014), Globalisation is a broad concept as it has its own pros and
cons, which affect the country's economy. It is a concept of interaction of markets, industries
across the globe and improves the efficiency of country's economy and enable them to be
flexible. Its main focus on gathering all markets into single platform to free flow of goods &
services without no trade barriers. It Some of the benefits of globalisation are as follows:
 Economy's expansion: Growth in per capita income, GDP and FDI (Foreign Direct
Investment). It increases the employment opportunity due to establishment of MNCs in
countries. This is the main reason that company can easily expand their business
activities at global level and also attain higher success.
 Technology: It enables the industry or markets to acquire technologies and manufacture
innovative products to satisfy customer's demand. It Rises the competition between
markets which develops the capability or efficiency of companies to stand firmly in an
industry.
 Low labour cost: Globalisation main outcome source is outsourcing which means
getting work done from other countries at low labour cost. It provides the employment
opportunities and improves the purchasing power of an individuals.
 Quality of products: Because of rises in competition among markets it gives more
challenges to companies to manufacture qualitative products in order to fulfilling the
demand of end users. This will directly contribute in enhancing the brand image of the
company and at the same time also aid in building strong customers base.
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 Economic indicators: Globalisation improves various economic index of LDC (less
developed countries) such as improvement in literacy rate, life expectancy, employment
etc. It directly contribute in increasing the profitability level of the company. The main
reason behind this is that if income level of the customers is best than they easily
consume company products and services.
 Flexibility: Globalisation mainly focus on trading across the boundaries which means
adapting the cultures of other countries. It makes them more flexible. This will help in
reducing the gap between two countries which provide huge opportunities to business
organization in operating activities successfully.
Challenges faced by H&M at the time of expanding business activities at global level
According to Blowfield and Murray, (2014), Globalisation is familiarised term in current
world, as it is considered as the foremost tool for the growth of company. It creates opportunity
and provide platforms to improve and identify the talents and skills of an organisation. In simple
terms it is the exchange of goods and services between countries with no trade hindrances. No
communities and societies can isolated themselves from the force of globalisation. It impacted
positively in many areas at the same time it created unfair practices between smaller and larger
companies. Some of the challenges of globalisation which markets are facing are as follows:
Organisational Structure: Each company has their own corporate structure which
manages and runs all the activities smoothly. But globalisation becomes a hurdle to H&M when
it come to the point of following globalised operations which affect the employee's work in order
to adapt the new system.
Leadership : It is another obstacle for company to get an effective leader who can mange
and handle the managerial functions in new region or geography. It may impact the employees of
H&M morale and relationships with managers.
Cultural Affect: While being globalised, companies have to consider culture, trend,
tradition of each countries. H&M face this kind of issues while expanding its business to another
countries in adapting their culture and traditions.
Polluting the environment: MNCs has established factories, industries which generate
harmful gases and it is adversely affecting the human health and ecosystem. In recent report
H&M has been blamed for producing harmful gas i.e. viscose (toxic gas)which is polluting the
environment and also a threat for human's health.
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CHAPTER 3: RESEARCH METHODOLOGY
Research methodology is one of the important section of whole research as it help
investigator at the time of collecting data and information by using different methods. In this,
researcher needs to select appropriate method to gather data in effective manner which can help
them in taking right decision towards the research objectives. With the assistance of this,
investigator can easily draw a valid conclusion (Haidt, 2016). In this context, there are some
effective methods that can be used by research maker with the aim of analysing as well as
evaluating the actual conclusion of research.
3.1 Research philosophy
This method is also play a significant role in which phenomenon data is collected in order
to analyse as well as evaluate effectively. Mainly, it includes views and opinion of different
authors who has experience in particular area. By this they can easily provide appropriate
information to researcher. It help in gathering accurate information towards the specific area and
topic as well. It includes two type of research philosophies such as Interpretivism and Positivism.
Interpretivism: It is an effective aspect of undertaking research which is based in the
human nature and how they behave in social environment. In this context, researcher use
qualitative methods to collect as well as analysis collected data in order to take right decision
within the research.
Positivism: This type of method used by investigator with the purpose of evaluating,
determining, measuring data in systematic way. As a results, it help research in providing
important information about the selected topic.
From these method, researcher use Interpretivism method as it help in providing relevant
data and discussion towards the research topic.
3.2 Research approaches
This section is one of the important in research which help investigator to analyse
accurate information towards the research topic. Mainly, it is based on the assumption related
with collection of data. Along with this, it is also provide better direction to researcher in order to
analyse the whole information towards the specified topic (Detomasi, 2015). By this, researcher
ca easily take right decision. Under this, there are two type of research approach such as
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inductive and deductive. Both are important for gathering accurate information about research
activities.
Inductive research approach: This type of method is related with the qualitative research
which provide direction to investigator to evaluating the overall scope of the research which
directly contribute in drawing valid conclusion (Taneja, Sewell and Odom, 2015). With the
assistance of this, entire research activities can be done in systematic manner.
Deductive research approach: It is also an important approach which is related to
formulating a hypothesis that based on existing theories in order to draw an accurate conclusion.
Mainly, this type of approach is used with the purpose of design research accurate and best as
well. This will help in gathering relevant information. It is based on the quantitative approach
through which research maker can evaluate logical conclusion that directly contribute in making
successful research.
For current research, investigator will use inductive research approach because it provide
better direction to investigator to carry out research activities in systematic manner.
3.3 Types of investigation
It is an exploratory method which used by investigator with the aim of taking research in
appropriate and right direction that aid in improving the chances of gathering relevant data
towards the research topic. In this context, there are two type of investigation such as qualitative
and quantitative research. Both methods are play a vital role in developing as well as analysing
the information in order to draw a valid conclusion.
Qualitative method: It is one of the effective way of gathering data about the research
topic. In this information are measured on the basis of theoretical way which provide support to
researcher to take right decision. With the use of this method, investigator gather in-depth
information towards the selected topic.
Quantitative method: This is also play a significant role in research while gathering
relevant data. Mainly, it is related with positivist paradigm which used by researcher for
converting information in numerical form (Kowalski, 2014). By this investigator can easily
evaluate the end outcomes and also increase the chances of attaining positive results.
For carry out the research activities, investigator will use qualitative research methods
because it give theoretical framework to the investigator towards the particular topic. With the
help of this, researcher maker can easily increase knowledge about the research topic.
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3.4 Data collection
This section is one of the significant part of research methodology in which researcher
collect data from various resources with the aim of drawing a valid conclusion. Mainly, it
incudes two type data collection such as primary and secondary method (Letaifa, 2015). By this
investigator easily conduct an effective research which help in collecting relevant and accurate
information about the selected research area.
Primary data: It is one of the effective process which generally used by researcher with
the aim of gathering new and fresh information that can not be used before. In this investigator
use various ways such as questionnaire, observation, survey and many more. All these are help in
collecting accurate information towards the research area.
Secondary data: This method is an effective process which help researcher in collecting
data about the research topic. These type of information is already available in various sources
such as books, journals, articles, magazine and many more. All these are help in gathering
relevant information. Along with this, it is reliable method which is less time and cost
consuming.
From this, investigator use both primary and secondary method of data collection which
support in gathering data from different sources in order to take right decision.
3.5 Sampling
It is an important process of selecting a part of the whole population in which researcher
gather data from them in order to draw a valid conclusion. In this investigator use random
sampling method to select respondents so that they can easily gather relevant information. For
this research, investigator select 40 respondent who give their views and opinion towards the
research topic.
3.6 Timeline
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Every research activities are based on the stipulate time frame as it help investigator to
effectively done it systematic manner. If entire activities of research being completed in right
time then it provide positive outcomes (Yu, Wang and Brouthers, 2015). Along with this, all the
activities of research is divided on the basis of set time period which help in reducing the
chances of arising any kind of risk activities within the study. In this Gantt Chart will be used
through which investigator easily execute entire task in systematic manner.
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CHAPTER 4: DATA ANALYSIS AND INTERTATIONS
Data analysis play as an important role which used by researcher with the aim of
evaluating as well as interpreting collected data in effective manner. Along with this, it is also
help researcher in taking right decision within the research (Kovacs and Kot, 2016).
Furthermore, researcher is also formulate some questions that can be open ended and also
provide option in order to gather relevant information. By this, investigator easily improve the
chances of attaining positive outcomes.
Questionnaire
Name:
Age:
Contact No.
Email address:
Q1) Are you understand about the concept of globalisation?
a) Yes
b) No
Q2) Is concept of globalisation provide benefits to H&M?
a) Yes
b) No
Q3) What is the impact of globalisation on overall performance of H&M?
a) Positive
b) Negative
Q4) What are the main resources that are important for H&M while operating business at
global level?
a) Human resource
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b) Innovative tools and techniques
c) Enough financial resources
Q5) What are the benefits of globalisation for H&M in attaining success at global market?
a) Increase overall sales
b) Increase competition level
c) Increase in quality of good and services
Q6) What challenges faced by H&M while operating their business activities at
international market?
a) Public relations
b) Finance related
c) Culture differences
Q7) What are the effective ways used by H&M for overcoming from challenges related
with globalisation?
a) Skilled workforce
b) Innovative tools and technology
c) Knowledge about different culture
Q8) What kind of factors provided by globalisation to H&M for increasing brand image
at international level?
a) Provide competitive benefits
b) Aid in developing positive relation
c) Increase revenue of the company
Q9) Is concept of globalisation provide support to H&M in attaining higher success at
global market?
a) Yes
b) No
Q10) Recommended ways by which H&M improve their performance level at
international market?
Questionnaire
Q1) Are you understand about the concept of globalisation? Frequency
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