Globalization's Impact on Business Success: A Thomas Cook Case Study

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HOW GLOBALISATION CAN DRIVE BUSINESS SUCCESS
A case study on Thomas Cook
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Table of Contents
Chapter 1: Introduction....................................................................................................................3
Chapter 2: Literature Review...........................................................................................................5
Chapter 3: Methodology..................................................................................................................9
Chapter 4: Data Findings analysis................................................................................................12
Chapter 5: Conclusion and Recommendation...............................................................................23
Reference List................................................................................................................................25
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Research Proposal
Chapter 1: Introduction
Globalisation is a process through which the business ventures can expand their business
activities in the international market so that profit margin can be enhanced. At the time of
expanding the business activities, the management of the organisation need to enhance the
quality of the products so that customer’s retention rate can be enhanced. Globalisation brings
business success because the organisations get a chance to expand their business activities in the
international market. Moreover, the rate of employment can also be increased. However, due to
globalisation, the organisations have a tendency to launch modern technology within the
organisations so that overall productivity can be increased. This also increases the employee
turnover rate of the organisations. In the present study, an overview of globalisation has been
mentioned. In addition to that, the impact of globalisation on business success have also been
critically analysed here. Further, the aim, objectives and questions of the study have also been
discussed.
1.1 Rationale
In the present study, globalisation has been chosen because it affects the business productivity in
an effective manner. Further, globalisation helps the organisations to expand the business
activities in the international market so that competitive position can be enhanced. As per the
comment of Charles et al. (2017), globalisation provides an opportunity to hire efficient
employees within the organisations so that overall productivity can be enhanced. On the contrary
Colander (2017), has mentioned that due to globalisation, the management of the organisations
preferred to use modern technology instead of work force so that the speed of production can get
be boosted. Thus, it has been proved that globalisation can increase the employee turnover rate.
Further, it has been noted that globalisation affects the privacy level of the organisations because
the competitors have a tendency to hack organisation’s information. The rate of employee
retention has been reduced because not all the employees have equal competence level to handle
modern technologies. Therefore, it is suggested that the management of organisations need to
provide effective training to the employees so that their skill can be boosted. As opined by Hong
(2015), globalisation creates digital divide among the employees that further affects the
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employee motivation. Further, it has been noted that globalisation motivates the management to
adapt modern technology within the organisations, which in turn increases the overall
expenditure of the organisations. Thus, it can be mentioned that globalisation has positive as well
as negative effect on the organisation. Lastly, the present study has shed light on the ways
through which globalisation can bring business success.
1.2 Significance of Research
This study is beneficial for the management of Thomas Cook because it will help them to earn
profit. In addition to that, from this study, the management of Thomas Cook can understand the
techniques that are needed to be used within the organisation. Through this study, the researcher
can understand the advantages and disadvantages of globalisation. On the other hand, the
management of Thomas Cook can also analyse the impact of globalisation on their organisation.
Through this study, the management of Thomas Cook can also improve their business profit in
the market. Lastly, this study is beneficial for the future researchers conducting research based
on the same topic.
1.3 Aim
The aim of the study is to analyse the ways through which globalisation can bring business
success.
1.4 Objectives
The objectives of the concerned study have been mentioned below:
● To analyse the importance of globalisation within a business organisation
● To focus on the advantages of globalisation on the business activities
● To analyse the challenges of globalisation related to business activities
● To surface the impact of globalisation on the business activities
1.5 Research Question(s) or Hypothesis
The questions of the study have been discussed below:
● What is the importance of globalisation related to business activities?
● What are the advantages of globalisation?
● What are the challenges of globalisation faced by the management of business
organisations?
● What are the impacts of globalisation related on a business organisation?
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Chapter 2: Literature Review
2.1 Introduction
As per the literary Underpinnings of Kim (2016), literature review is a technique through which
past works of the authors can be critically analysed so that the study can be completed
systematically. In this chapter, importance of globalisation has been critically analysed. In
addition to that, the advantages and challenges of globalisation have also been discussed.
Further, the theories of globalisation have also been mentioned here. Lastly, the impact of
globalisation on business profitability has also been discussed.
2.2 Body
Importance of globalisation within a business organisation
As asserted by Mukherjee (2016), globalisation is beneficial for business organisations because
they can expand their business activities in the international market. For instance, Titan travels
have expanded their business activities in the international market because they have established
effective communication with the international clients so that they can get motivated to invest on
their organisation. However, Tamásy (2016) has mentioned that organisations fail to analyse the
international market trends because the taste and preference of the international customers keeps
of changing. Thus, the profit of the organisation gets affected. Thus, it has been surfaced that
globalisation has both positive and negative effect on the business.
As per the comment of Wirtz (2016), globalisation influences the recruitment process of the
organisations so that skilled employees can be a part of the business. For instance, due to
globalisation people from various castes, creed and religion get a chance to communicate with
each other thus; cultural diversity can also be boosted within the organisation. Thus, through
globalisation employees from various section of the society can be hired in order to maintain
organisational diversity.
Globalisation also improves the implementation of digitalisation within the organisations so that
the speed of production can be enhanced. For instance, the management of Titan Travel have
launched mobile application so that the customers can book their rooms as per their own
convenience. Application of digitalisation also reduces the rush of the customers so that timely
service can be provided to the customers. As argued by Wirtz (2016), globalisation also increases
employee turnover rate because not all the employees can use technology with same efficiency
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level. Moreover, Kim (2016) has mentioned that the management of the organisations need to
train the employees so that technical lack backs can be mitigated. For instance, the management
of Titan Travels have launched training institution for the newly recruited employees so that
training can be provided to them. Further, they have also launched apprentice program for the
students pursuing hospitality management. As per the comment of Kim (2016), digitalisation
also create digital divide among the employees. Globalisation also improves the quality of
products because the management of the organisations have a scope to export raw materials from
the international market. However, at times the quality of the raw materials fails which in turn
affects the final output. Lastly, it has been noted that globalisation increases the quantity of
production because the demand of domestic and international customers increases.
Advantages and challenges of globalisation faced by the organisations
The advantages of globalisation have been discussed below:
The skill of the employees
As per the comment of Tamásy (2017), globalisation helps to increase the profit of the
organisations because increased skill level of the employees help to increase the quality and
quantity of production so that more amount of gods can be exported in the international market,
which in turn will increase the profit margin of the organisation. On the other hand, the
organisations prefer to use automated production machines so that large quantity of products can
be increased.
Moreover, through globalisation the rate of employment also get enhanced because the
organisations have a tendency to hire employees from international market. However, Kim
(2016), has mentioned that due to globalisation the relation between the employees can get
affected because of difference in the viewpoint. Hence, it has been noted that globalisation
influences the working atmosphere of the organisations. However, the challenges of
globalisation have also been discussed below:
Inflation
Globalisation improves the relation between the domestic and international market because in
turn increases the demand of the products. As per the comment of Tamásy (2017), the price of
the products increases if the demand among customers increases. However, due to price rise, not
all the customers can afford to purchase the products. Hence, it can be deduced that globalisation
affects the customers’ purchasing power. However, in order to trap the international business the
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management of Titan Travels launch personalised travel packages as per the earning of the
customers. Furthermost, they also provide summer and winter discounts so that customers from
different income group can afford their services.
Theories of globalisation
Theory of Liberalism
As per the comment of Tamásy (2017), theory of liberalism states, that globalisation has been
implemented within the market due to technological advancement. Further, the theory has
mentioned that technological advancement helps to increase the productivity of the organisation
so that their competitive advantage can be boosted. For instance, the management of Titan
Travels have launched mobile application so that timely service can be provided to the
customers. In UK, the digital penetration rate has been increased by 46% due t globalisation.
However, Mukherjee (2016), as mentioned that productivity of the organisation can get affected
due to technological glitches.
Impact of globalisation on business activities
The impact of globalisation on the profitability of the organisations has been discussed below:
Increases the competition
As per the comment of Mallick (2015), globalisation helps to increase the competition among the
international and domestic organisations. Further Kim (2016), has mentioned that due to
globalisation the foreign and domestic organisations have a tendency to produce same products
so that they can attract large number of customers. For instance, the foreign organisations have a
tendency to produce products as per the taste and preference of the domestic customers so that
their market share can be enhanced. For instance, after launching customised tour programs, the
market share of the organisation has been increased by 2%.
Large number of employees
After expanding the business activities in the international market, the domestic organisations
have a chance to hire employees from them so that their working atmosphere can be improved.
However, hiring employees from international market can create conflict among the employees
due to different viewpoints. Moreover, due to communication gap the conflict among the
employees also is boosted. On the contrary, Kim (2016), the management of the organisation
need to celebrate various occasions within the organisations so that cultural diversity can be
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increased. For instance, the management of titan travels hire international employees through
their websites and consultancy.
2.3 Conclusion
After completing the concerned chapter, the importance of globalisation has been analysed. It
has been noted that globalisation increases the competition level among the organisations of
international and domestic market so that large number of customers can be attracted. In addition
to that, globalisation also improves employment rate within the organisation because
international employees are being hired by the domestic organisations. However, it also affects
the working atmosphere of the organisations because of cultural and communication gap.
Globalisation also creates inflation because due to high demand price of the products increases
so that not all the customers can afford to purchase the products.
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Research Project
Chapter 3: Methodology
Introduction
For conducting a research project, it is essential to collect data and information regarding the
chosen topic, and therefore, the necessary part of every research project is its methodology
section where research methods and techniques are discussed to present own idea and
application. This research project is based on the positive and negative outcome of globalization
and its impact on global business, in this case, Thomas Cook. For this research, it has been
realized that it is essential to make use of Positivism research philosophy because it is an
independent research and is devoid of any external effects. The facts have been observed after
carrying out the research. In this project, a descriptive research design has been used to explain
the phenomenon. The Boolean search strategy has been used to extract authentic journals on the
impact of globalization from the websites. The research instruments used here is the survey
questionnaire method and interviews conducted on employees and managers of Thomas Cook.
The sampling technique chosen here are random sampling and purposive sampling. In the data
analysis and interpretation section, it has been appropriate to make use of qualitative and
quantitative data analysis methods. Lastly, certain ethical considerations have been given as well
to ensure authentic data collection.
3.1 Research Methods and techniques.
Philosophy- The research philosophy is an approach based on which the entire research can be
conducted (Berger, 2013). In this project, Positivism research philosophy has been used since it
is appropriate to conduct the research independently. It has not been affected by any external
factors. Moreover, in quantitative analysis, it is essential to quantify data, and therefore critical
evidence can be taken only by making use of Positivism philosophy.
 Approach- Research approach is almost like a plan that contains detailed steps and
approach that will be useful in analyzing or interpreting the data (Flick, 2011).In this
project, the Deductive research approach has been used to test the hypothesis of the
research. Further, research questions have been developed for quantitative analysis of
data.
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 Design- The research design also involves procedures and methods while collecting and
analyzing data based on the research problem (Lewis, 2015). Descriptive research design
has been appropriate to study the positive and negative impact of globalization on the
chosen global business in order to describe the opinions of the chosen sample (Gray et
al., 2019). Moreover, the survey method has been chosen for this study, and therefore
descriptive design has been useful.
 Boolean search strategy- A search strategy is essential to employ while researching
because secondary research requires the use of electronic citation databases and for a
researcher, it would be effective to find relevant sources quicker by maintaining
boundaries regarding what is required in the search (Hook, 2016). Hence, the Boolean
search strategy has been adopted for the research purpose as it allows the user to combine
two operators like AND and OR. By making use of these two operators, it has been easier
to search for information on the topic, and the search results narrowed down resulting in
better time management.
3.2 Research Instruments
Research instruments can be defined as tools used by researchers to achieve the already decided
objectives of the study (Bryman, 2016). The instruments would help collect the data while
conducting the research. Usually, primary and secondary data collection methods are employed,
and in case of this project, both the methods have been used. Questionnaires have been designed
to collect data from employees and managers of Thomas Cook. For managers, interviews have
been conducted to know their opinions about the impact of globalization. Moreover, secondary
sources of data such as books, authentic journals and scholarly articles have been used for the
research purpose.
3.3 Sampling
A sampling technique can be useful and quite practical in getting results because it is impossible
for a researcher to research a large population (Etikan et al., 2016). The technique helps the
researcher to survey the chosen population and then infer the results. Random sampling
technique is useful because every member of the population has an equal chance of being
selected. On the other hand, purposive sampling is used to choose participants on purpose for
meeting the objectives of the project. For the purpose of this project, the random sampling
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technique has been employed and 50 employees of Thomas Cook have been selected. To
interview the managers of the company, the purposive sampling technique has been used.
3.4 Ethical Issues
This study can be conducted by maintaining the ethics. At the time of conducting the study, no
respondents have been forced to take part in the study so that it can be completed in an effective
manner. Further, academic articles have been used so that the research can gather authentic
information. On the contrary, it has been noted that all the questionnaires were not been filled by
the respondents. However, the data present on the questionnaire were not been altered to
maintain the authenticity. As per the provision of Data Protection Act, 2018, the information of
the respondents should be used for the purpose of the project. Further, the researcher has not
used the personal information of the respondents for the company purpose. Thus, it can be
mentioned that, the researchers have abide the provisions of Data protection Act (gov.uk, 2019)
3.5 Data Analysis and Interpretation
In this study, both primary and secondary data have been collected by conducting interview and
survey. Therefore, both qualitative and quantitative analysis has been used. The survey answers
have been analyzed by conducting quantitative analysis. However, the answers of the interview
can be analyzed by using qualitative analysis. After completing the analysis, the results have
been represented through graphs and charts so that the researcher can understand them
efficiently. The researcher has used thematic analysis in order to describe the findings of the
articles.
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Chapter 4: Data Findings analysis
Quantitative Data Analysis
1. What is your age?
Options Percentage of
Responses (%)
Number of
Responses
Total Number of
Responses
20-30 years 28 14 50
30-40 years 34 17 50
40-50 years 20 10 50
50 years and above 18 9 50
Table 1: Age of Respondents
28%
34%
20%
18%
20-30 years
30-40 years
40-50 years
50 years and above
Figure 1: Age of Respondents
Analysis:
From the above-cited graph, it can be analyzed that most of the respondents belong from the age
category of 30-40. Most of the respondents who take active part in this survey are experienced
employees of Thomas Cook.
2. What is your gender?
Options Percentage of
Responses (%)
Number of
Responses
Total Number of
Responses
Female 48 24 50
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