Globalization: Impact on Individuals, Organizations, and M&S Analysis

This report provides a comprehensive analysis of the impact of globalization on individuals and organizations, exploring its benefits and challenges. It delves into how globalization affects various aspects, including education, free trade, information flow, quality of goods and services, and cultural exchange. The report then focuses on Marks & Spencer as a case study, examining how socio-cultural, political, and technological factors in the external environment influence the company's operations and profitability. It highlights how these factors shape consumer behavior, market dynamics, and the company's strategic responses to remain competitive in a globalized market. The report also discusses the importance of adapting to these changes to capitalize on opportunities and mitigate risks.

Impact of Globalization

Table of Contents
INTRODUCTION...........................................................................................................................1
ASSESSMENT................................................................................................................................1
Globalization and Benefits of Globalization...............................................................................1
External Environmental Factors that affect the individual and Marks and Spencer...................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Globalization means interaction between people, organizations and governments globally. It is
the connection of the various parts across the world that result in the expansion of foreign
culture, political activities and economy. It includes the movement of people and goods across
different countries. Marks & Spencer is an British multinational company that is headquartered
in London. The company is specialised in producing and selling high quality clothing, food and
home products. M&S is listed on London Stock Exchange. The company was founded by
Michael Marks and Thomas Spencer in 1884 in Leeds. The report includes Globalization and its
influence on a individual and organization. Further the advantages of globalization is discussed
and some external factors that affect any person or firm(Baylis, Owens and Smith 2017).
ASSESSMENT
Globalization and Benefits of Globalization
It refers to complying with global standards in culture, education, economy, politics or
environment etc. It outlines the ways in which the people of different counties interact and
combine. Things have been globalized as individual start contacting each other. This is because
of economic globalization the countries are mixing up to form a big global economy and by
simplifying the international trade. Communication and technology has helped individuals to buy
and sell goods from across the world. It refers to the spread of technology, information, products
ans even jobs across borders. Globalization has raised the poor's standard of living in less
developed countries by offering jobs and improved access to goods and services. Globalization
has some motives that are ideal and opportunistic. Organizations gained competitive advantages
on multiple things. It has brought so many opportunities for the developing nations as well as for
developed nations. Exchanging culture, education and items that are presented only globally is
through globalization(Beck 2018).
Globalization has been beneficial in different areas for both an individual and an organization.
These are as follows:
EDUCATION : With increasing globalization, it is becoming very easy for any person to move
to another country or to any part of the world to gain better education and thus there is an
exchange of culture between the countries. Usually people from developing nations move to
countries that are developed to gain better knowledge. Many students from India travel countries
like UK or USA to pursue their higher education. This opened their perception for Indian as well
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as western culture. Globalization has increased opportunities for youngster for education or for
any thing they desire to have. Students can acquire their choice of courses that seeks their
benefit.
FREE TRADE : Increase in free trade has benefited the investors. Now investors can freely
invest in underdeveloped countries. Large organizations from developed countries are free to
operate in the underdeveloped countries. It is suppose to minimize the barriers like tariff, VAT,
subsidies and some other barriers among countries.
FLOW OF INFORMATION : Information spread from one part to the other part of the world
quickly, as a result of the countries being combined together. Important information can be
spread between individuals and organizations very quickly. It has also enhanced the ease of
transferring goods and people(Bourguignon, 2017).
QUALITY OF GOODS AND SERVICES : Due to globalization, people are getting high
quality of goods and services that too globally. Organization work to serve the customers with
best quality products and services and the consumers have the right to choose which product is
suitable to fulfil their needs and desires. This gives people advantage of enjoying things made in
UK and delivered to people in India.
REDUCTION IN PRICES OF PRODUCTS : As the outcome of globalization, the
competition has increased in the market, the producers have to set price according to the
competitors strategy in order to stay in the market. This is beneficial for the customers as they
got better quality goods at lower costs.
NO CULTURAL BARRIERS : As individuals travel from one country to other, cultural
barriers tend to reduce. This made individuals open to other culture. This enhances the
communication in between various culture and nations. This has also reduce the wars in today
time as compared to the previous times, because the people have kindness and beliefs in others
culture.
NEW OPPORTUNITIES : Due to globalization, new technology has spread helping the
nations to become greener and comparatively more productive. This was given new ways to the
companies to work using such strategies that help the firms to manage work in such a way that
doesn't effect the environment. Globalization has provided new opportunities to women and has
helped reduce gender discrimination of every type(Boyden, 2015).
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FOREIGN DIRECT INVESTMENT : FDI has increased at a very high rate with the
increasing globalization. Helped in getting new technologies, industrial restructuring and growth
of companies. Foreign Direct Investment will help the underdeveloped countries, as the
developing nations invest in them as they have cheaper labour to work.
TECHNOLOGICAL INNOVATION : As the new technologies are coming according to
today's modern world, due to globalization countries are having that advantage to import these
technologies to their countries and organizations. And can put competitive pressure for other
companies. Organizations will get better and unique options to produce the product and help in
market the product.
SCALE OF ECONOMIES : Globalization help large scale organizations to acknowledge the
economies of scale that will minimize the prices, which supports the economic growth but can
effect the small scale businesses that try to compete domestically(Coleman, 2016.).
INCREASE AWARENESS : This has increased awareness in customers against climate
change and unequal income of consumers. Customers knows what they desire and what quality
is considerable. They will not be satisfied if something less appropriate is given.
External Environmental Factors that affect the individual and Marks and Spencer
SOCIO- CULTURAL FACTORS
Culture that society follows does affect the organizations culture. The beliefs and attitudes of the
people has a great impact on the marketers of Marks and Spencer. On the basis of this analysis
the marketers produce products and design them according to customers need. Globalization has
increased scope of this factor as now individuals have unique demands for products that has to be
satisfied by the firms. As consumer is the king pin of the market, firms manufacture such goods
and services that are desired by them. Now as a result of globalization, the consumers see
different cultures of various countries across nations, so that influence them to have those unique
demands. The attitude of individuals has change, they focus on healthy diet or are health
consciousness so this effect the supply of such products. Globalization has affected the choices
of products consumed by people. Due to the cultural change Marks and Spencer has to invest in
forecasting the demand of individuals on a whole new basis(Crane and et.al., 2019). People want
to have those clothes or patterns or such trends going in other countries, so now the company has
to fulfil those desires to survive in the market and increase their sales and productivity. Changes
in tastes and preferences or lifestyle of consumers showcase both the opportunities and threats
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for the company. So this is on them they tackle the change, whether they can take it as
opportunity and grow complying that change or fear from the change and be left for tough
survival. Some organizations resist change and they suffer from the prevailing competition.
Globalization influence individuals tastes as they can think about patterns prevailing globally.
They can adopt new cultures and different patterns that are from other western countries. To
implement these global changes companies can hire employees from different streams and
nations so that they can help to develop the market their. As they know the culture of their
respective regions that will help the firms to develop their market in those regions. Company
can expand their business in those areas where they think their business will enhance can the
consumers need change and are not getting actually what they want(Pieterse, 2019). Marks and
Spencer has increased their customers by following such strategies. And the company has
influenced by the change in social cultural factor. Analysing social cultural factors will help the
firm to make relevant changes and thus grow and compete in this organisation.
POLITICAL FACTORS
Political factors effect the company's profitability in the particular market. Marks and Spencer is
working in more than dozen countries in retail sector and has been affected by various type of
political environment and risks. Globalization bring political unstability in the countries. Due to
political unstability the company faced a really difficult time. Political changes like trade
regulations, laws, taxation etc. affect the firms operations. Legal framework of the companies
change that affect the contract made by the firm with other countries, this will affect the
operations of company at both the places. The contract enforcement becomes invalid once the
legal framework changes. It could be a possibility that the laws followed by the parent company
and that followed by the other countries don't match that is very obvious then it will effect the
operations of both the parties. And this will cause disputes among the countries, each one of
them will think on their part and let the other one suffer so this will disturb the whole process.
There can be a possibility that one countries laws are against the law and regulation of other
country so it will let one suffer and bring conflict between them. The tax apply in one country
can be different from another country. The tax rates can be more or less on some products in the
country, will influence the firms working(Stearns, 2016). The minimum wages criteria come
under the political factors that can impact the the organization adding to it the employee benefits
can be different related to the capacity of the firm and prevailing condition in the country.
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Political factors include the industrial safety measures that are mandatory to be followed by all
organizations. AS today's employees need to work in a comfortable and flexible environment,
and they need all the benefits that they tend to obtain. Ans with globalization, certain norms has
changed for the employees as well, for their welfare and growth so the company has to comply
and imply them. If this doesn't happen the employees know what they actually deserve and what
they are getting so they can fill a case against the company for not complying with the rules and
regulations and for not getting the benefits that they actually deserve. In the retail industries the
product labelling should be analysed properly so that the product can market easily and help the
company survive in the competitive market(Steger, 2017).
TECHNOLOGICAL FACTOR
Technology is changing at a fast pace in the modern world. Technological advancements are
improving many things and with it the economy is also developing with fast pace. With the new
technology, operations of the business are becoming much easier. Recent changes in the current
technology will improve the working that will reduce the cost of operations of Marks and
Spencer. This change is needed by the company to increase the sales and thus increasing the
profits of the firm. Due to globalization, new technologies came into countries by which
companies can change their patterns of working. New technology impact the product offerings of
the company. Now the product will be more competitive and new as compared to old one. The
product now offered will be more satisfying for the consumers. But it can influence the
organizations that in the developed countries, they can get the new technologies easily, they can
invest on the same and opposite to them are underdeveloped countries the cannot afford to invest
in the new technologies and so lack behind from the developed nations. So this basically affects
the firms of developing countries that make them less competitive. This makes them suffer in the
competition and make hard to survive for them. Technological Advancements impact the cost
structure of the company as now the technology will improve the cost of operations that will
change the structure. Development in technology will let the company have an upper hand on the
other firms. The new technology can bring resistance in the people as it can happen that the old
people can not work on the new machines and this will effect the operations of the company. The
new technology can bring changes like the company can provide online services to the
customers. This will improve the companies sales and increase the profits(Yúdice, 2018). As
individuals use online shopping apps this will benefit Marks and Spencer in selling the products
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through those apps. So it can be concluded that individual can be affected by this as the
employees can resist the change to work on new technologies and can affect the organizations by
improving the operations or if they cannot afford the new technologies will suffer and at a point
will leave the market.
CONCLUSION
From the above study it is concluded that globalisation has effected the individual and
organizations. Globalisation has its benefits likes it brought new opportunities for everyone.
Quality of the goods has increased. In the last the report discussed about the socio-cultural,
political and technological factors that affect the individuals and organization.
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REFERENCES
Books and Journals
Baylis, J., Owens, P. and Smith, S. eds., 2017. The globalization of world politics: an
introduction to international relations. Oxford University Press.
Beck, U., 2018. What is globalization?. John Wiley & Sons.
Bourguignon, F., 2017. The globalization of inequality. Princeton University Press.
Boyden, J., 2015. Childhood and the policy makers: A comparative perspective on the
globalization of childhood. In Constructing and reconstructing childhood (pp. 167-201).
Routledge.
Coleman, W.D., 2016. Financial services, globalization and domestic policy change. Springer.
Crane, A., and et.al., 2019. Business ethics: Managing corporate citizenship and sustainability in
the age of globalization. Oxford University Press.
Pieterse, J.N., 2019. Globalization and culture: Global mélange. Rowman & Littlefield
Publishers.
Stearns, P.N., 2016. Globalization in world history. Routledge.
Steger, M.B., 2017. Globalization: A very short introduction(Vol. 86). Oxford University Press.
Yúdice, G., 2018. The globalization of culture and the new civil society. In Cultures of Politics
Politics of Cultures: Re-Visioning Latin American Social Movements (pp. 353-379). Taylor and
Francis.
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