Globalisation Impact on UK Economy: A Case Study of Morrisons

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Globalisation in the UK economic climate; a case study of
Morrisons
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Table of Contents
Part 1................................................................................................................................................3
Part 2..............................................................................................................................................13
Reference List................................................................................................................................34
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Part 1
1. Introduction
Title of the study
The concerned study is based on the impact of globalisation on the economic condition of UK
Background of the study
Globalisation is the process through which business organisations can expand their business
activities in the international market so that their profit margin can be enhanced. At the time of
expanding, the business activities in the market the management of the organisations need to
maintain the quality of the products. On the contrary, at times the management of the
organisations fail to analyse the taste and preference of the customers, which in turn affects their
market position of the organisations. In UK, the economic condition is improving largely
because of Globalisation 2.0. On the other hand, globalisation can pose challenges to the
economy because the rate of employment can get affected because work force is being affected
through installation of machines. As per the literary underpinnings of Hirst (2015), globalisation
helps to increases the integration and interdependence of the global economy. On the other hand
Hirst et al. (2015), has mentioned that globalisation may lead to tax evasion because the
multinational organisations have a tendency to avoid taxes so that their rate of profit remains
high. The multinational organisations charge high product price from the targeted customers in
order to create monopoly in the market. Thus, it can be said that globalisation has both positive
and negative impact of the economy.
Aim
The aim of the study is to analyse the impact of Globalisation on the economic climate of UK
Objectives
The objectives of the concerned study have been mentioned below:
● To analyse the present economic condition of UK
● To focus on the advantages and the challenges of globalisation on the economy of UK
● To analyse the impact of globalisation on the economic climate of UK
● To recommend the ways of mitigating economic challenges of UK
The questions
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The questions related to the study have been discussed below:
● What is the present economic condition of UK?
● What is the impact of globalisation on the economic scenario of UK?
● What are the challenges and advantages of globalisation on the economic condition of
UK?
● What are the ways of mitigating the challenges of globalisation on an economy?
Rationale
Presently, due to technological advancement, globalisation is playing a crucial role within the
economy. As opined by the scholar, globalisation is beneficial for an economy because, the
business organisations get a scope to expand their business activities in the international market.
In addition to that, the nationalised organisations get a chance to their employees form
international market so that competitive advantage can be uplifted. As per the viewpoint of
Giddens (2018), globalisation also increases the product variety produced by organisations so
that customer base can be enhanced. For instance, the market condition for financial institutions,
video gaming and Nuclear power is strong in UK. Thus, they can export their products to
international market in order to expand their business activities. Thus, it can be stated that
Globalisation is effective for the economy of UK because it helps to enhance the export income.
As argued by Giddens (2018), globalisation is increasing the employee turnover rate within
various organisations because the management prefers to replace work force by digitalisation so
that quality and quantity of products can be increased.
However, Daniels and VanHoose (2017), has mentioned that UK organisations face issues while
recruiting skilled employees therefore, in order to enhance the quality of the products UK
organisations can hire the employees from international market. Globalisation increases the price
of the products because of high demand in the market. For instance, the mid income group of UK
faces challenges due to the price hike of food items. For instance, in UK food price is increasing
at a rapid rate because food product is being imported from different countries. In Britain 30% of
the food are being imported from other EU countries and 20% are being imported from other
countries. As per the comment of Ghemawat (2017), globalisation creates inequality in UK
because the difference in the income. Thus, the present study has shed light on the impact of
Globalisation on the economic climate of UK.
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Figure 1: Import of food materials
(Source: Ghemawat, 2017)
Significance of the study
The present study is crucial because it helps to analyse the present economic condition of UK. In
addition to that, challenges that UK may face due to globalisation have also been discussed in the
study. Through this study, management of the organisations can understand the ways of
improving their business activities so that they can mitigate the challenges of globalisation.
Lastly, the study will also guide the future researchers conducting researches based on the same
topic.
2. Literature Review
Literature review plays an important role while conducting researches because it contains past
work of the researchers so that the study can be completed systematically. In the present study,
the present economic condition of UK has been analysed. In addition to that, the advantages of
challenges of globalisation have also been discussed here. Lastly, the ways of mitigating the
challenges of globalisation have also been discussed here.
Present economic condition of UK
The economic condition of UK may undergo a turmoil condition due to Brexit. On the contrary,
Stiglitz (2017) has mentioned that, UK has overcome the economic crisis. However, the growth
of the economy remains sluggish because the organisations fail to hire efficient employees. For
instance, in the third quarter 2018, the economic growth has witness a downfall by 0.6%. As per
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the report of financial times, the size of the economy has been increased by 9.7% because of
business extension. The rate of annual change of economic growth has been increased by 2.3%
(pwc.co.uk, 2019).
Figure 2: Present economic Trend
(Source: pwc.co.uk, 2019)
On the other hand, Steger (2015) has mentioned that globalisation has affected the employment
rate of UK. For instance, the unemployment rate of UK has been increased by 4.5%. On the
contrary, in 2016, the rate of unemployment has been increased by 4% (pwc.co.uk, 2019). As per
the comment of Steger (2015), globalisation enhances the rate of unemployment because the
management of the organisations want to exchange technology with labour so that the quality
and quantity of production can be enhanced.
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Figure 3: Rate of unemployment in UK
(Source: pearsoned.co.uk, 2019)
Globalisation affects the communities of UK because of income inequalities. On the other hand,
McCann (2016) has mentioned that due to globalisation inequalities among the poor and the
reach communities are broadened. Further, it has been noted that globalisation has lead to uneven
migration of employees along with less labour market flexibility. Thus, it can be mentioned that
through globalisation, some part of the economy is benefited and the other part is marginalised.
As per the employability research, more than 5.6 Billion of employees have been transferred to
international market and they are being forced to work at low salary. Thus, it can be mentioned
that globalisation affected the income of the individuals (pearsoned.co.uk, 2019).
Advantages of globalisation on the economic scenario of UK
The advantages of globalisation on the economy of UK have been discussed below:
Rate of employment
As per the comment of Colantone (2018), globalisation increases the employee rate the economy
because the labour force get a chance to display their talents in the international market. On the
contrary, Deese (2017), has mentioned that in international market the employees are forced to
work at low salary so that they can reduce the organisational expenditure. Thus, it can be
mentioned that globalisation can increase the rate of poverty. In the year 2010, more than 5.6
Million of British employees were forced to work in international market at low salary.
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However, in the year 2007, 4.5 Billion of employees were taken to international market for work
(london.gov.uk, 2019).
Figure 4: Rate of international employees
(Source: london.gov.uk, 2019)
As per the comment of Hirst (2015), due to globalisation more number of employability is being
created in the international market. On the other hand, as per the report presented by The Forbes,
due to international market, the rate of vacancy in the national market has been increased by
62%. In the year 2016, the rate of vacancy was 25%. Thus, it can be stated that globalisation has
a negative effect on the employment scenario of UK.
Economic productivity
As per the comment of Hirst (2015), globalisation is beneficial for global market because it helps
to enhance the growth rate of the economy. For instance, in the year 2018, the GDP rate of UK
has been increased by 1.3% (london.gov.uk, 2019). On the contrary, in the 2019, it is expected to
be increased by 1.6%. Since, the rate of GDP is increasing therefore; the rate of business
investment can also be updated. Further, Giddens (2016) has mentioned that, globalisation is
beneficial for the economy of UK because the organisations get a chance to expand their
business activities in the international market. On the contrary, Giddens (2016) mentioned that,
due to globalisation the government expenditure is increasing largely because the international
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organisations have a tendency to evade taxes so that the economic condition of the economy can
get affected.
Challenges of globalisation on the economic condition of UK
The challenges of Globalisation have been discussed below:
Rate of poverty
As per the comment of Giddens (2016), due to globalisation the rate of poverty can be increased
because the labours are forced to work in the international market at low salary. The
multinational companies have a tendency to replace employees with digital technologies so that
overall output of the organisations can be enhanced. Globalisation also creates a differentiation
among the various regions of UK due to income differentiation. Further, globalisation increases
the cultural and political tension within an economy. For instance, due to globalisation in UK,
the income distribution becomes unequal thus; people are forced to live poor standard of life.
As per the report presented by Department of Work and Pension, 21% of the overall population
of UK lives a poor stand of life. On the contrary, in the year 2015, the rate of poverty was 21.6%.
Thus, it can be mentioned that in the present year he rate of poverty has been reduced by 0.6%
(ig.ft.com, 2019).
Inflation
As per the comment of Hirst (2018), globalisation increases the flow of goods so that the
organisations can earn high rate of profit in the market. Further, Daniels (2017) has mentioned
that due to high production level the demand of the products in the market also increases which
further enhances the price of the products. On the contrary, Giddens (2018) has mentioned that,
due to price hike of the products all the customers cannot afford same quality products. Thus,
level of inequality increases.
The impact of globalisation on the economic condition of UK
The impact of globalisation on the economic condition of UK has been discussed below:
Increases Trade activities
Globalisation helps to increase the trade activities within the economy so that profit margin can
be improved. The competitive advantage of UK is high regarding financial service, video gaming
and nuclear components thus; by exporting the products in the international market, the income
of the domestic market can be increased.
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Figure 5: Impact of globalisation
(Source: Ghemawat, 2017)
3. Methodology
Methodology is a process through which data of the study are being collected analysed so that
the outcome of the study can be systematic and authentic. In this section, research design,
approach, philosophy has been discussed along with data collection method and analysis.
Research process
In this study positivism philosophy will used because, data have been collected through
interview and survey. In addition to that, deductive approach will be used because the findings
of the study have been critically analysed with the help of theories of globalisation. Further,
descriptive design will be used because the impact of globalisation on the economy of UK has
been analysed by considering the present Economic trend of globalisation, its advantages and
challenges.
On the contrary, at the time of conducting secondary analysis Boolean search strategy will be
used. In Boolean search strategy, the key words are combined with the operators such as AND,
NOT and OR so that authentic articles can be found to complete the study in an effective
manner. For instance, in this study the following keywords have been used:
“Globalisation and Economic productivity”
Data collection and data analysis
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In this study, both primary and secondary data will be collected so that the outcome of the study
can become effective. At the time of collecting primary data, interview and survey will be
conducted among the employees and managers of Morrison’s. At the time of conducting the
survey, close-ended questions will be set up. On the other hand, at the time of conducting the
interview open-ended questions will be set. Both the interview and the survey will be conducted
through online media so that the respondents can answer the questions as per their own
convenience level. The primary data will be analysed by using quantitative and qualitative
analysis. Lastly, secondary analysis will also be conducted in the study.
Sampling Size and techniques
In this study, 80 employees of Morrison’s will be considered along with two managers. At the
time of conducting the survey probability sampling will be used so that all the employees can get
a scope to take part in the study. On the other hand, purposive sampling will be used while
selecting the managers.
Limitation of the study
In this study, not all the articles will be accessed because they are paid versions. In addition to
that, some of the government websites will also not be consulted. On the other hand, some of the
survey questionnaires will be altered and not fully answered. Lastly while conducting the
thematic analysis some of the articles will be rejected because they contained repetitive
information.
Ethical consideration
While conducting the study academic journals will be used so that authenticity can be
maintained. No respondents will be forced to take part in the study. Lastly, as per data protection
act, the information of the respondents will not be used for official purpose.
4. Timeline
Activity Start date Duration End date
Planning and selecting research topic 2/11/2019 1 2/12/2019
Setting aims and objectives 2/12/2019 1 2/13/2019
conducting the literature review 2/13/2019 7 2/20/2019
preparing questionnaires for survey and interview 2/20/2019 3 2/23/2019
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collecting data 2/23/2019 12 3/7/2019
selecting journals and articles 3/7/2019 5 3/12/2019
reviewing the secondary data 3/12/2019 5 3/17/2019
analysis of the collected data 3/17/2019 4 3/21/2019
documentation 3/21/2019 2 3/23/2019
final draft 3/23/2019 1 3/24/2019
Table 1: Timeline of project
(Source: Created by learner)
Gantt chart
Planning and selecting research topic
Setting aims and objectives
conducting the literature review
preparing questionaires for survey and interview
collecting data
selecting journals and articles
reviewing the secondary data
analysis of the collected data
documentation
final draft
2/11 2/21 3/3 3/13 3/23 4/2
Figure 6: Gantt chart
(Source: Created by Learner)
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