Globalization's Impact on Business Success: A Research Project

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Research Project
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Table of Contents
Chapter 1: Introduction....................................................................................................................4
1.1 Introduction............................................................................................................................4
1.2 Research Aim.........................................................................................................................4
1.3 Research objectives...............................................................................................................4
1.4 Research Questions................................................................................................................5
1.5 Rationale of the study............................................................................................................5
1.6 Background of the Topic.......................................................................................................5
1.7 Summary................................................................................................................................6
Chapter 2: Literature review............................................................................................................6
2.1 Introduction............................................................................................................................6
2.2 Role of globalization to achieve business success of the organizations................................6
2.3 Benefits of globalization for large Multinational companies................................................7
2.4 Advantages and Disadvantages of the Global Business Environment..................................7
2.5 The impact of the globalization for achieving the organizational success............................8
2.6 Analysis of the different techniques adopted by the business to enter in the emerging
market........................................................................................................................................10
2.7 Literature Gap......................................................................................................................12
2.8 Summary..............................................................................................................................12
Chapter 3: Research Methodology................................................................................................14
3.1 Introduction..............................................................................................................................14
3.2 Research Outline..................................................................................................................14
3.3 Research Philosophy............................................................................................................14
3.3.1 Justification for Selected Research Philosophy............................................................15
3.4 Research Approach..............................................................................................................15
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3.4.1 Justification for chosen research approach...................................................................15
3.5 Research Design..................................................................................................................16
3.5.1 Justification for chosen research design.......................................................................16
3.6 Research Strategy................................................................................................................16
3.6.1 Justification for selected research strategy...................................................................16
3.7 Data Collection....................................................................................................................17
3.8 Sample Technique and Size.................................................................................................17
3.9 Reliability and Validity........................................................................................................17
3.10 Ethical Consideration.........................................................................................................17
3.11 Time Horizon.....................................................................................................................18
3.12 Research Limitation...........................................................................................................19
3.13 Summary............................................................................................................................19
Part 4: Reflective...........................................................................................................................19
References......................................................................................................................................21
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Chapter 1: Introduction
1.1 Introduction
Globalization has significant impacts on the business environment. International business can be
defined as the businesses that involve transaction of economic services like finance, insurance
and capital across the nations. Globalization has many benefits and drawbacks in the global
business environment. The different strategies adopted by the multinational companies helps in
identifying the needs of the organizations. The processes of globalization has helped in reducing
the monopoly profits of the organizations and adopt innovative technologies to boost the revenue
of the business. Moreover, it has helped the organizations to improve the per capita income
because of higher economic growth in various nations. The local companies create various
survival strategies to improve their business processes. There are some drawbacks of the process
of globalization on business. Globalization has led to the generation of inequality in income
across various countries and as a result, it has generated various social and political tensions.
That is why it has resulted in the creation of many hurdles for the organizations.
1.2 Research Aim
The aim of this research is to analyze various benefits and drawbacks of global business and in
what ways Globalization helps to achieve the business success.
1.3 Research objectives
The objectives of this research are as follows-
 To analyze the advantages and disadvantages of the Global business environment
 To analyze the impacts of the globalization for achieving the organizational success
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 To understand the different techniques adopted by the business to enter in the emerging
market
 To analyze the impact of globalization on large management companies
1.4 Research Questions
The important research questions are as follows-
 How Globalization can help to achieve the business success in large multinational
companies?
 What is the interrelationship between global business and global politics?
 What are the advantages and disadvantages of a Global business environment?
 What are the advantages and disadvantages of off shoring and outsourcing?
1.5 Rationale of the study
Globalization is significantly affecting the business process of the organizations. Previous
researches were conducted on the impacts of globalization on the emerging market and the risks
of the globalization in the global business environment. This research focuses on different
survival strategies adopted by the local companies in the business market and the challenges that
re faced by the companies in the Global market. Globalization has created many challenges in
the business process of Multinational companies. This research focuses on the strategies that are
taken into consideration by the multinational companies for solving the different problems that
they face because of globalization.
1.6 Background of the Topic
Globalization has many significant impacts on the business process of an organization.
Globalization in the business process can be defined as merging of the national markets into a
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global market and create many advantages as well as disadvantages in the business process of
the organizations.
1.7 Summary
This part of the chapter will play the most influential role on the part of initial stage that will
guide the researcher to put emphasis on the significant aim that will be associating with the
study. The primary chapter will develop the presence of the study through the means of prime
aim and objectives of the study.
Chapter 2: Literature review
2.1 Introduction
An essential part in a study is formed by the chapter based on the literature review. Literature
review is significant for enabling researchers in getting a detailed insight into other important
pieces of literature relevant to the research topic. It helps the researcher in analyzing the
viewpoints of the other researchers who have worked on the research topic previously. This in
turn will assist the researcher in developing the topic through the analysis of the previous pieces
of literature. The researcher will be taking resort to several authentic journals, books as well as
online sources to develop the study effectively.
2.2 Role of globalization to achieve business success of the organizations
Globalization has significant impacts in the process of achieving the business objectives of the
organizations. As per the opinion of Freund and Moran (2017), globalization helps in improving
the economic conditions of the countries and as a result, it has helps in increasing the per capita
income in the countries. As a result, it helps the organization to achieve specific objectives.
Globalization has resulted in many economic, social and political changes in the countries.
According to Awan (2016), globalization has resulted in sharing the ideas and skills of the
employees of the organization in a national level. The process of globalization helps in
connecting the organizations and implement business activities in different parts of the world. As
stated by Ndikumana (2015), the globalization has resulted in the merging of various National
markets of different countries into a Global market. Globalization has mainly two main aspects
namely globalization related to market and globalization related to production. As per the
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opinion of Awan (2016), the globalization related to production helped the organizations to
improve the cost of the products and find suppliers of raw materials for preparation of goods and
services across parts of the earth.
2.3 Benefits of globalization for large Multinational companies
Globalization has significant impacts on the market strategy of large Multinational companies.
As per the opinion of Santos and Williamson (2015), the process of globalization helps the
multinational companies to implement various innovative technologies in the business processes.
The process of globalization helps the multinational companies to sell their products across
different parts of the earth. Moreover, it also helps in the process of expansion of the business of
the companies and reduces the costs for manufacturing of the new products. As influenced by
Awan (2016), it also helps to reduce the cost of labor for manufacturing of the products in the
Multinational companies and focus on horizontal expansion of the newly created market.
Another significant positive impact of the Globalization in International companies is it helps in
improvement of the process of governance and labor protection for the organizations.
Thus, it helps in the movement of labor of the organizations across various nations and creates a
proper business environment for the organizations. As started by Ndikumana (2015), the process
of globalization has resulted in resolving the challenges that the organizations faces in the
business process. The level of income has been increasing in many countries because of
globalization and as a result, globalization helps in the process of affording goods and services to
the people at a easy way. Creation of capital market has occurred because of Globalization and
as a result, it helped in the process of deeper division of labor within the organizations. However,
it has resulted in the process of creation of competitive environment for the multinational
companies. For competing with the multinational companies, the local markets have created
survival strategies for improving their business activities in the emerging markets.
2.4 Advantages and Disadvantages of the Global Business Environment
As opined by Odoom et al., (2017) increasing influence of globalization has led to an increase in
the growth of international business. Andrade, (2016) has said that globalization has enabled
businesses in experiencing several profits. For instance- the processes of globalization have
helped in the reduction of the monopoly profits of the organizations and in the adoption of
innovative technologies to boost the revenue of the business. Moreover, it has helped the
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organizations to improve the per capita income because of higher economic growth in various
nations. However, Globalization has led to the generation of inequality in income across various
countries and as a result, it has generated various social and political tensions. That is why it has
resulted in the creation of many hurdles for the organizations. As stated by Odoom et al., (2017)
multinational business organizations operate in global business environment, which consists of
several advantage as well as disadvantages. According to Gaspar et al., (2017) one of the
important advantages of global business environment is that imported goods, can be consumed
by those countries, which cannot be produced there. Secondly, in accordance with Messmer,
(2018) the productive resources are utilized by countries, which are not able to utilize them.
Highest return is expected from the resources in every country, which leads to decreasing price
as well as better goods, which can be consumed.
Odoom et al., (2017) have said that global business environment controls heavy fluctuations in
price. Global business environment leads to increasing imports, which will be beneficial for
countries suffering from famine as well as scarcity of resources. Moreover, this will also lead to
development of businesses in economically backward countries.
As opined by Odoom et al., (2017) global business environment consists of few drawbacks as
well including destruction of home as well as cottage industries. Besides, according to de
Andrade, (2016) difficulties are created in hours of needs by depending on foreign business.
Global business environment further has the drawback related to the failure of improvement of
the economy of a country due to increasing unrest as well as discontent.
2.5 The impact of the globalization for achieving the organizational success
The impact of globalization has various effects on the emerging of success in an organization.
Globalization as key factor directs the company’s fate and affects the global economy and
competitive advantage of the organization (Reader, 2017). The overall impact of globalization in
a company affects the company business culture along with economic and social environment in
the company. The technological advancements in the company are also highly influenced by the
globalization and internationalization of an organization. These prominent changes are direct
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impact of globalization that occurs mainly due to a better clarity in terms of communication and
technological support.
The organizational success of a company is highly dependent on its global acclamation in the
market sphere (Arogyaswamy and Hunter, 2018). The main impact of globalization for achieving
organizational success pertains to increased rate of competition in the market. The quality of
product and services has a higher rate of improvement along with adaptation of higher strategies
to attain those. Therefore, competition in the business sphere across all borders helps an
organization to gain greater competitive advantage. The impact of globalization in terms of
competition also affects the market consumers as they more drawn towards those products which
have higher quality and lower cost. The companies therefore, need to attain to these market
requirements in order to process their business with ease and profit. Increased competition in the
market results in a greater opportunity for the organization to fulfill the demands that occur out
of globalization.
Another major impact of globalization for enriching the business organization is exchange of
human efforts in place of technological equipment handling. The organizations can implement
their market strategies skillfully with the introduction of highly advanced technologies in to the
work sphere (Claessens and Van Horen, 2015). This impact equally helps the organization to
provide greater benefit to the market requirements and helps in advocating greater rate of
communication among the people in the organization. This huge impact of globalization has
resulted in a wide expansion of the e-commerce market for the organizations.
Another huge impact of globalization that occurs is a greater and faster transfer of information
(Sharma and Joshi, 2019). This is a huge leap of success for the organizations in the market that
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helps them to provide a vast output in the market. The market organizations are benefitted due to
this impact that facilitates transfer of significant transaction information along with faster rate of
sales and marketing that is highly influenced due to introduction of technology in the companies.
This also impacts the company success in providing greater rate of market expansion that helps
them in further globalization of the company as a whole.
2.6 Analysis of the different techniques adopted by the business to enter in the emerging
market
There are several techniques, which can be considered as very beneficial to adopt for a business
in order to enter in the emerging market. In this regard, this can be seen that these techniques can
be very advantageous to begin and operate the business in the emerging market.
Risk of the research country
As per the opinion of Rahman et al. (2017), for an organization, it can be seen that in order to
enter in a new market the organization need to be researched on the risks, which can be possible
to rise during business in that nation. In this regard, it can be revealed that there are two main
risks, which can be possible to rise for an organization during the time of entering in a new
market.
Economic risks
Economic risks can be considered as one of the prime risk, which can be taken place during the
time of entering in the emerging market. As stated by Surdu et al. (2018), This risk is also known
as financial risk. This covers the issues like nonpayment by a client, rapid change in the value of
the foreign currency and breached contracts.
Political risks
Political risks can be considered as one of the main risks as well and this can be also raised
during the time of entering in the new business. In this case, the main risks are regulatory or the
legal changes, which can be possible, impact on the business for this issue is very high (Kotabe
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and Kothari, 2016). Apart from that this can be seen that currency controls along with import
restrictions, which shop from the bringing money.
Create a risk management program
There are several aspects, which can be considered as very significant for the risk management
program. This program will give below.
 Make the identification of the risks, which can be possible to come up during the time of
entering in the new market.
 Make the specification of the actions, which one can take along with that which can be
very beneficial in order to overcome all of the issues.
 Be updated regularly for making sure that one is prepared for any sort of eventuality
Consider the insurance for overcoming the risks
Credit insurance along with the other insurance products like insurance of the political risk can
allow for considering the target market. Insurance can be considered as very helpful to obtain the
additional working capital.
Take time in order to develop trusted relationship
In various nations, this can be found that developing a long term relationship is very crucial for
the project in order to get off the ground along with succeed. In order to develop understanding
along with trust, an organization needs to take time. In this regard, this can be revealed that right
partners can break and make the export venture.
Solution for all the cultural barriers
In case of entering in the emerging market, an organization needs to be focused on the barriers,
which can be taken place because of cultural. In this regard, this can be seen that language is one
of the main reasons, which can create barriers for the organization to enter in the new market.
Organizations need to be prioritized on this issue and they must solve this issue.
2.7 Analysis of the impact of globalization on large management companies
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There are several effects of the globalization on the business of the large management companies
and those are given below.
Risk in the competition
Competition among the organization is increasing every day and this can be seen that
globalization is one of the prime reasons for this. Increasing competition is very much harmful
for any organization.
Technology development
Technology develop is one of the most significant impact of globalization (Narwal and Jindal,
2015). In this regard, this can be seen that updated technology is very useful for an organization
to develop their business along with revenue.
Increasing level of investment
Large management organizations are obtained the benefit of increasing their level one
investment because of globalization.
2.7 Literature Gap
This study facilitates various discussions on the impact, merits and demerits of globalization on
the success of organizations. However, the literature gap in this regard presents that there is a
limitation regarding the discussion of different possibilities and strategies that can be
implemented. The vast reach of multinational companies provides a higher rate of globalization
process but the relative strategies are extremely essential in defining the merits of the companies
in a clear way. The demerits of globalization on organizational success is also not clearly
addresses as there are many other issues and challenges that cause problem for the whole
organization.
2.8 Summary
After the entire discussion, this can be concluded that credit insurance along with the other
insurance products like insurance of the political risk can be possible to allow for considering the
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