Impact of Globalisation on Business Growth and Success: H&M Case Study

This research proposal examines the impact of globalisation on the business success of H&M, a prominent retail company. The introduction defines globalisation and its significance in international trade, investment, and cultural exchange. The research aims to identify the impact of globalisation on H&M's growth, supported by specific objectives and research questions. The literature review covers the concept of globalisation, benefits like improved reputation and free trade, and challenges such as cultural and language barriers. It also explores strategies used by H&M for market entry, including direct exporting, franchising, joint ventures, and licensing. The methodology section outlines the research approach, emphasising data collection methods and the importance of qualitative and quantitative research. The proposal includes a timeline of research activities, expected conclusions, recommendations, and a reflection on the research process, along with a list of references.

Research Proposal

Table of Contents
INTRODUCTION...........................................................................................................................3
LITERATURE REVIEW................................................................................................................4
METHODOLOGY..........................................................................................................................7
TIMELINE OF RESERACH ACTIVTIES ..................................................................................24
CONCLUSION..............................................................................................................................27
RECOMMENDATION.................................................................................................................27
REFLECTION...............................................................................................................................28
REFRENCES.................................................................................................................................29

Title: “How globalisation can drive business success.”
INTRODUCTION
Globalization represents the world wide combination of international trade, investment,
information technology, cultures and so on (Brewster and Hegewisch, 2017). Government
policies are formed for opening economies domestically as well as internationally for developing
poor nations and also in raising living standards of people. In simple term it can be said that,
globalisation is the process through which an organisation can sell their goods and services at
worldwide level. This research project is based on H&M which is an retail sector organisation
founded in 1947 and its founder is Erling Persson. Headquarter of respective organisation is at
Stockholm, Sweden and they are severing at global level. H&M is dealing in clothes as well as
accessories of men's, women's and children's. Respective research project is going to explain
impact of globalisation on the growth and success of H&M (Costen and Salazar, 2011). While
expanding business at global level companies face several challenges which should have to be
keep in mind as well as implement proper strategies to overcome with these. Along with
challenges, there are several benefits also which result in growth and success of business.
Aim of research
Research aim is one of the crucial part of overall research project because there is not any
aim in which direction are processed and it is conducted. Aim of research generally explain an
issue through which organisation is going on for finding its solution. So, company can easily
achieve growth as well as profit in competitive business environment.
The aim of research project is "To identify the impact of globalisation on business growth and
success: A case study on H&M”.
Research Objectives
Objectives of research is important because on the basis of these pre-determined goals
can be achieved in better manner (Crane and Matten, 2016). These objective are mainly useful
for investigator because with the assistance of all they can easily evaluate entire research project
in effectual manner. Objectives of research have their strong connection within each other as
well as it will help researching person in conducting effective research process. Below given are
the designed objectives for respective research :-
1. To determine the concept of Globalisation
2. To evaluate benefits of globalisation for business growth

3. To identify the major challenges faced by globalisation
4. To identify the strategies used by H&M in order to enter in new market.
Research questions
In respective section, research questions is framed as well as developed by the
investigator by keeping in mind respective objectives which has been framed in advance.
Moreover, it has been determined that research questions is necessary part of the research
because through this investigator is able to understand as well as evaluate overall investigation in
accurate manner. Below mention are the research questions prepared for this project :-
1. What is the concept of Globalisation?
2. what are the benefits of globalisation for business growth?
3. How to identify the major challenges faced by globalisation?
4. What are the strategies used by H&M in order to enter in new market?
LITERATURE REVIEW
Concept of Globalisation
According to the point of view of Kolb (2014) Globalisation represent the all over world
integration of international trade, investment, information technology as well as culture. In
simple term it can be said that, globalisation is the process of business expansion at worldwide
level. It is the procedure through which transfer of knowledge, ideas as well as thoughts take
place in several nations for enhancing the level of profitability and makes standard goodwill in
the marketplace. Under globalisation process H&M sell their product and services all over the
world. This research is based on H&M which is retail sector company and serving their products
and services at worldwide level. While expanding business at worldwide level respective
organisation gone through several problems as well as gain various benefits also.
Benefits of globalisation for business growth
According to the point of view McGrath (2012) Globalisation is simply business
expansion at world wide level such practices result in several benefits for growth of H&M which
are as follows :-
 Improving company reputation - Business which can successfully go global as well as
market their product and services in another country who is totally different will enjoy
the prestigiousness of calling themselves an global organisation. H&M is serving at

worldwide level which result in increasing their reputation within market area because it
is not easy for every to do business at global level.
 Exposure to foreign investment opportunities- Expanding of business operations of
H&M at global level assist them in grabbing advantages of foreign investment (Laszlo
and Cescau, 2017). When respective organisation expand their business in other country
in competitive world then it is their foreign investment. Learning and adapting new culture – While doing business in other nation H&M
firstly adopt their culture as well as learn several things about them. This also assist
H&M in producing products as per the culture as well as taste and preferences of the
population so they can easily fulfil needs and wants of their existing as well as potential
customers (Moser, 2012). It also result in enhancing the level of productivity for the same
enterprise and can accomplish highest sales target. With the assistance of globalisation
H&M learn and adapt culture of different countries for making their customers satisfy by
fulfilling their needs and wants. Free trade- It is a process in which countries exchange goods and resources with each
other and provides wide variety of products to the consumers. In context to H&M it
removes all the trade barriers which helps the respective company to produce its products
in Asia and earn huge level of profits. It also creates bigger market of exports for
domestic manufactures and provides consumers with greater choice of goods. H&M
doesn't have to bear the cost of various taxes while expanding business and creates high
revenue for the business. Free movement of labour- Increase in the migration of labour gives benefit to both the
workers and the country. In Asia where the respective organisation is going to expand its
business operations will create high level of employment in Asia and can increase the
scale of productivity in concerned country and able to capture large number of potential
customers as well as attain bigger market share.
Major challenges faced by globalisation
According to the point of view Prajogo and Olhager (2012) H&M has gone through
several challenges also while they expand their business at global level. Some of them are as
follows :-

 Unfamiliar culture – Every nation have their own culture which is different from each
other and it became major issue for H&M while expanding their business at global level
(Detomasi, 2015). Because it is not necessary that offering same product and services in
every nation is like by existing or potential customers. Thus, H&M have to keep in mind
culture of every country while production of goods.
 Language Barriers – Every country have their own local language which became
problem for H&M in business expansion. To come out with this problem, respective
organisation have to hire employees who known different language and have capabilities
of explaining products features to customers. Legal issues – Every national have their own laws and regulation which have to be
followed by H&M for their easy and smooth running. This factor consider tariffs and
exports fees, minimum working hours of labour, wages to be paid, equality act and so
on. Thus, it is the major challenge faced by H&M while doing business at global level.
Thus, it is important for the company to work according to the regulations that are framed
by different countries in order to have long term benefits. Another important legal factor
is taxation (Eaton and Kilby, 2015). As every country have different taxation policies and
rates which ultimately affects the price of product. Thus, the managers of H&M should
practice affective price strategies by undertaking these factors in order to assure less
costing and more profit share from the market.
Strategies used by H&M in order to enter in new market
There are several ways through which companies can enter into new market (Strategies
to Enter a New Foreign Market,2018). H&M can use various strategies in order to entering in
new market some of them are as follows:- Direct Exporting – It is direct selling products and services into the chosen market with
the assistance of agent or distributor for representing them into further marketplace (Salas
and et. al., 2012). They two become the face of the organisation as well as crucial part is
that organisations choice of agents and distributors will handle things in better and same
manner like hired key staff persons. Franchising - It is the business expansion process in which one party grant another party
rights of using their trademark, trade name and several business system. For taking
franchise one time fees is paid along with this, some percent of sales revenue is paid as

royalty as well as gains. H&M is using franchising market strategy for expanding their
business at global level. Apart from this, there is no requirement of any business
experience for running franchise because franchisor provide training which is required
for operating business (Phillips and Phillips, 2016). Compare to starting up business at
global level franchises have higher rate of success as well as result in better business
expansion. Joint Venture – It is a form of partnership which involves creation of third independently
managed organisation. In simple term it can be said that, joint venture is 1+1=3
procedure as well as in this two organisations get agree to work together in a specific
market area, product and form third enterprise for their undertaking. Moreover, risk and
profit are shared equally within every partner. As well another major benefit of joint
venture is its flexibility for instance, a joint venture can have a limited time period and
only cover part of what an individual is doing, thus limiting the commitment for both
parties and the business' exposure.
 Licensing – It is the written agreement through which owner of one organisation give
permission of utilising their property to another party (Buckley and Ghauri, 2015). In
simple term it can be said that, licensing is an legal agreement in which licensor gives
right to license for production and selling goods by apply brand name or trademark as
well as use patented technology owned by the licensor. Moreover, in the licensing
process the licensee have to submits written document related to the conditions regarding
the use of the licensor's property as well as agrees to make payments which is known as
royalties.
Thus, franchising is the strategy using by H&M for entering to the new market at global
level. Because respective strategy of business expansion is easy as well as less risky.
METHODOLOGY
Research methodology - It is the important part in research because it help in doing
overall research in proper manner. Research methodology is the procedure through which
information and data is gathered with the motive of further decision making (Shultz and
Adams,2012). Data and information collection can be done in different ways such as interviews,
survey, publication research and so on. As well research can be conducted in two ways i.e.,
qualitative and quantitative. The research is conducted with the motive of describing, explaining

as well as estimating the overall process of work in efficacious way. Moreover, It is explain as
the study of performing where an investigator acquire actual knowledge about the topic.
Research methodology is necessary part of research project because it involve all the important
factors which assist in getting better outcomes (Hammer, 2015). In this section, problems which
may be occur in conducting research is shorted in effective manner. For achieving desired goals
and objectives its important for researching person to con duct all the activities as well as
functions within given time period. Qualitative Research – It is market research method which focus on collecting data
through open-ended as well as conversational communication method. There are several
qualitative research method which utilise frequently such as one-on-one interview, focus
group, Ethnographic research, record keeping, observation etc.. Qualitative data
collection allow data which is not numerical and assist in exploring how judgement are
taken and provide us with detailed perception.
 Quantitative Research – It is form of systematic investigation method in which data is
collected in numerical form by performing statistically, mathematically or may be by
computational techniques (Stiglitz, 2017). In this information is gathered from existing
and potential customers with the assistance of different methods such as online survey,
online polls, questionnaires and so on. In this research investigator is using quantitative
method for gathering data as well as information.
Data collection - It is the procedure in which information is gathered and there are
mainly two method i.e., primary and secondary (Pollock, Wick and Jefferson, 2015). Major
motive of gathering information and data is to find out solution of the research problem.
Explanation of these are as follows :- Primary Method – By using primary method, research collect data which was never used
before or not even published in any article, books and so on. In respective research
investigator is using primary method of data collection. Their are several sources through
which information can be gathered such as interviews, feedbacks, questionnaire and so
on. Thus, Questionnaire will be utilise by the researcher person for gaining data and
information.

 Secondary Method – In this method data is not collected primarily, it includes existing
information which is already published in any magazines, newspaper, journal and so on.
Second method of data collection is less expensive as well as not time consuming.
Sample Size – It is the count of individual samples or observation in any statistical setting
such as a scientific experiment or public opinion survey. For conducting respective research
investigator has decided to take 30 respondents. So that proper information can be gathered
within required time period in effective manner.
Sampling Method – It is the process in which members are selected for continuing
research from a population. There are mainly three type of sampling method such as random,
stratified and cluster (Colander, 2017). Hence, In the respective research project investigator is
using random sampling method for collecting information as well data.
Ethics Consideration - The ethical consideration is important and should have to be
implemented while conducting research because it include laws and regulation. With the
assistance of ethical consideration investigator analyse as well as explore the actual regulations
for identifying which is right or wrong. Moreover, It has been assumed that ethical consideration
is crucial part because it is utilise for securing collected or gathered data and information.
Through this investigators can take proper decision by choosing right and wrong as well as also
by not sharing gathered information of respondents with others. Apart from this, Data collected
through questionnaire in this research is safe and secure. Most important is that it will not going
to be discussed with third party. So, respondent need not to fear that their information will be
disclosed in front of others.
Procedures – Interview process must be accurate as well as relevant according to the
requirement and demand of organisation. Most important thing interviewer should have to
involve is to select those respondents who is capable for describing related to innovation of
products and services. Researcher person start interview process through general questions for
analysing attitude as well as behaviour of their customers in relation to particular products as
well as offerings. Apart from this, interview process is reliable and assist in gathering actual data
and information in accurate manner (Haidt, 2016). Investigator tell respondents to give answer
real as well as actual because it will assist them in identifying taste and preferences of customers
related to offerings. In this interview process there is almost 12-14 questions framed which help
in evaluating and understanding attitude of respondents for organisations offerings.

QUESTIONNAIRE
Q.1. Are you aware about the concept of globalisation ?
 Agree
 Disagree
Q.2. Does globalisation help company in expanding business operations and functions at
international level ?
 Yes
 No
Q.3. What are the benefits of globalisation for H&M organisation ?
 Increase income
 Enhancement in market share
 Acquire competitive benefits
Q.4. Do you think globalisation assist in maintaining position in other nation ?
 Agree
 Disagree
Q.5. What are the issues and challenges faced by H&M while expanding business
operations at global level ?
 Political Intervention
 Economic Crises
 Social and Ethical influence
Q.6. Does H&M offers required services and products to their customers ?
 Agree
 Disagree
Q.7. Can organisation operate and regulate their business functions in global market
area ?
 Yes
 No
Q.8. What are different ways through which company can easily gain huge income and
profitability at global market place ?
 Enhance customer base

 Provide innovative products
Q.9. Do you think globalisation directly impact on business operations and its activities ?
 Agree
 Disagree
Q.10. Is globalisation helpful for enhancing business reputation and goodwill at
international level ?
 Yes
 No
Q.11. Elaborate various ways through which H&M can easily overcome with arising
barriers and issues ?
 Develop strong strategies
 Follow political regulations
 Give more employment to local riders
Q.12. Do you think that the concept of globalisation is beneficial for H&M in order to
maintain customer relations properly ?
 Yes
 No
Q.13. What can be the major required need for H&M while implementing concept of
globalisation ?
 Managing financial resources
 Management of resources
 All of the above
Q.14. Is there requirement of conducting training and development sessions for employees
?
 Yes
 No
Q.15. Do you have any suggestions regarding how globalisation impact on H&M
organisation operations and functions effectively.
Theme 1: Awareness about the concept of globalisation
Q.1. Are you aware about the concept of Frequency

globalisation ?
 Agree 15
 Disagree 15
Interpretation :- Above graph is showing data related to the awareness of people about
globalisation. Thus, from this it has been analysed that out of 30 respondents 15 are aware about
the concept of globalisation. Whereas, remaining 15 people don't have knowledge about
globalisation. Moreover, H&M have to provide information related to global business level to
their customers as well as employees. So they can get aware about globalisation process along
with its benefits to company.
Theme 2: Globalisation help company in expanding business operations and functions at
international level
Q.2. Does globalisation help company in
expanding business operations and
functions at international level ?
Frequency
 Yes 20
 No 10
Interpretation – In globalisation company expand their business at worldwide which result in
also enlarging their operations as well as function at international level. This is analysed through
above mention graph because out of 30 respondent, 20 people are saying yes that globalisation
expand operation as well as function of business at global level. Whereas, remaining 10 are not
15 15 Agree
Disagree