Impact of Globalization on UK SMEs: A Case Study Research Project

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RESEARCH PROJECT
Impact of Globalisation on Businesses:
A Case Study of SME’s in the UK
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CONTENTS
CHAPTER 1 INTRODUCTION 3
1.1 BACKGROUND 3
1.2 CURRENT SITUATION 3
1.3 RELATION OF SME’S AND GLOBALISATION BENEFITS 4
1.4 CONCLUSION 4
CHAPTER 2 LITERATURE REVIEW 6
2.1 INTRODUCTION 6
2.2 BENEFITS OF GLOBALISATION TO SME’S AND OTHER BUSINESSES IN UK 6
2.3 DRAWBACKS OF GLOBALISATION TO SME’S 7
2.4 PRESENT AND FUTURE OF SME’S 8
2.5 GLOBALISATION IN NEXT DECADES 8
CHAPTER 3 METHODOLOGY 10
CHAPTER 4 RESULTS AND FINDINGS 13
CHAPTER 5 DISCUSSION 15
CHAPTER 6 CONCLUSION 17
REFLECTION 19
REFERENCES 20
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CHAPTER 1 INTRODUCTION
1.1 BACKGROUND
Globalisation is a major driver which has influenced the sales and purchasing limit of every
business (Oladimeji et al., 2017). Small and Medium size enterprises play a significant role in the
global economy and direct the employment sector for the business. A range of the national
economies in case of small and medium enterprises are increased by providing the output as
increased employment. The policies that are enabled by the firm to survive and proposer in the
competitive global environment can be adopted by the SMEs.
The study aims to examine the possible causes of the UK and their positive or negative impact
on the ecological functioning of the SMEs. There are certain strategies which might be adopted
in order to overcome the adverse effects of the project in the free trade environment (Schmidt,
2012). The focus of the research is to identify the factors or elements which might have
contributed to the competitiveness of the SMEs in the UK. The research will also identify the
changes in the organizations that could emerge from a projected trade environment and the
inevitable increase in the competition. This can direct on the competitiveness.
The international business is a term which has described the commercial transaction that
occurred in two or more than two regions. The companies of the UK which are active in the
international business are termed as multinational companies or enterprises (Wang et al., 2012).
They can help other companies to perform various business activities through which a bunch of
inevitable services. This can help in satisfying the opinion that the multinational company can
structure with the business properly.
1.2 CURRENT SITUATION
Doubtlessly, a major strength for the SME in the UK is they are close to the customer contact.
Further, it can acknowledge their ability to maintain close customer relationships with no
strategic fit (Wang et al., 2012). However, with the advancement of the technology, the range of
the SMEs is failing to outreach the customer in person. It has a significant positive impact on the
growth of the business. The use of the technology has provided SMEs in the UK with access to
new and reliable technology.
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Since the mid- the 1970s, the UK is considered as the fastest growing country which has been
able to manage and develop a competitive advantage through which the exports to the industrial
way of dealing with the competitive advantage is manufactured (Wang et al., 2012). The main
reasons for the growing importance of international competitiveness are innovation and
technological advancement. This has increased the productivity through of the SMEs businesses
and insulated the economies from international trade and investment.
1.3 RELATION OF SME’S AND GLOBALISATION BENEFITS
The availability of the technology can be implemented through meeting the global objectives of
the corporate. This has raised the UK’s economic output with reference to other countries. The
Foreign Direct Investment (FDI) has introduced advanced technologies which might not get
access easily with the products that are offered by the SMEs (Hashi and Krasniqi, 2011). The
advancement of the technologies has provided the countries with limited access to which the
products can be easily introduced. On the other hand, the research can impact negatively with the
global economic reveal facts. This has been predicted that the possible destruction of the global
economic links can threaten the internationalization of the world due to their cultural practices.
The organization can set out the right kind of technology for the development of the SMEs in the
UK. It has its shortcomings with the goods produced with the similar kind with the developed
nations. The high standards of the SMEs have provided the full benefits of globalization in the
business. The development of SMEs in the UK has basic effective integration into the global
process. It is a stable and growing economy with the trained manpower (CentreForcities, 2018).
This can help in experiencing the economic progress and marginalization of the full benefit of
the globalization.
1.4 CONCLUSION
In spite of certain drawbacks, the position of the SMEs in global helps in improving physical
communication, transport costs along with the advanced computing techniques. The
Globalisation has brought companies under SMEs together through widening the technological
innovation and market demands. This has raised the level of competition with e-business and e-
commerce measures. The products that are put forward are world class and ultimately altered
with the aimed business activities. This can also help in presenting the work of the systems in the
entire study. The major threat of the internationalisation can direct on the inferior cultures which
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are affecting the large masses of the UK. Furthermore, the literature in the study contributes to
incorporate the globalization as the independent variables in meeting with the whole small and
medium enterprises development (Gupta et al., 2014). Globalisation has added value to the
business ethics and corporate their structure with small and medium enterprises in the UK.
The traditional and sophisticated systems are the procedures that are aimed with streamlining the
business through the activities and practices in the large, small and medium enterprises. The
innovation of the business such as e-business and e-commerce through the World Wide Web has
been directed examples for the SMEs of the UK (Gupta et al., 2014). The cases of the UK have
resulted in the globalisation of the different business sector with the sale of the product and
services around the world. The economies of the UK are enhanced with the run of the business.
This can lead to the development of beneficial relationships internationally. The globalisation
also helps in providing the cheap labour resources and meeting the world around the services that
invest in the global economy. This may risk in the insecure and creating reliable employment
services for the individual working in the SMEs of the UK (Hutchinson and Persyn, 2012).
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CHAPTER 2 LITERATURE REVIEW
2.1 INTRODUCTION
In the same case, it can be said that the role of globalisation can be more positive for the business
units as it gave them the best opportunity of exploring their businesses and hence make some
additional and huge profits. Especially, the small businesses and medium-size operational units
have the highest benefits for their business and the people relate to them. It’s been a fashion to
suggest and promote individuals and small businesses by the governments and authoritative
bodies in the developing countries like India, China and Brazil etc. which is basically to support
their economy. According to Michie (2011), the most influential and potential platform to
support the businesses is through globalisation and emerging solutions for the businesses. The
globalisation rather is defined or interpreted as the result of technological innovation or any other
operational advancement that has fuelled the international industrialisation or globalisation in a
location. The rate of globalisation and its impact can be determined through several areas like
analysing the global and national change in the economy (between two or more trading
countries), transnational corporations, labour standards and governance. According to the study
of Hirst and Thompson (2011) on ‘The future of globalisation' and depicted that the phenomenon
will be very helpful in future for the small and medium-size companies who are especially more
potent and deliverable with innovative technologies and ideas.
2.2 BENEFITS OF GLOBALISATION TO SME’S AND OTHER BUSINESSES IN
UK
Globalisation has played a very vital role in recent past in integrating the business operation to
international dimensions and facilitates several other benefits. The globalisation encourages the
producers and the consumers to get the benefits to form the deeper division of labour in the
markets and hence enhance the economies of the scale to the company. At the same time, the
globalisation reduces the monopoly from the markets and hence profits for all especially for the
businesses who seek innovative and cost-effective innovations. Another study of Cramer (2017)
depicts that the globalisation has helped in increasing the per capita income which led the
poorest and developing countries and to achieve faster growth and hence reduce the poverty from
the world. Moreover, it can also be said that the globalisation has also helped in the free
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movement of labour among different countries and increases the sharing of the ideas, skills and
technologies which are essential for an organisation to grow in today's dynamic markets.
The list of benefits from globalisation extends as enhanced facilities and areas for the domestic
or international fund or resource borrowing that reduces the savings gap. Added to this,
globalisation gave the consumers knowledge about the diverse range of goods and services and
hence enhances their awareness and value in the markets. The research by Sifianou (2013)
results that, globalisation also reduces the competitive pressure by prompting the improved
governance and better labour protection or other regulation laws. In contrast to this, there are
some studies or researches that have found the drawbacks of the globalisation to the small
businesses. Inequality is one of the major factors that are linked with increasing globalisation in
terms of wealth and income. This has evidence from the increasing global urban divide in
countries like India, China, and UK etc.
2.3 DRAWBACKS OF GLOBALISATION TO SME’S
This might have led to the global tension and financial constraints for the growth of the
economies. There are several results that depict that the growth of the globalising companies has
been diminished by the already established giants of the market. The markets are facing strong
demand for the food and energy that has resulted in a steep rise in the local commodity prices
and increased the inflation rate for the local people which steps back the small companies. In
terms of small companies, the possibilities regarding the vulnerability to the external economic
shock increases that have risks to them (Wijen, et al., 2012). In addition to this, the threats to the
global commons like irreversible damage to the environment, land degradation, biodiversity and
deforestation etc. with the scarcity of the water in the world. Trade imbalances in global trade
operations might benefit some particular countries and their businesses rather than all in the
world. With the increase in the access to the global resources and opportunities with the
advanced technologies, the rate of the employment at all the locations has seen an increase and
resulted in drastic employment issues.
The major impacts of the globalisation can be seen majorly on the accessibility to the global
markets. The role of globalisation has made tremendous effects if seen from either side of the
businesses. The small and medium-size businesses pose a significant role in the global economy
and pose a big impact on the incomes and outputs. However, there are many reductions has been
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experienced with respect to the demands of the products and services together because of the
recent financial crisis in the world. According to the Economic Forum (2018) the globalisation
has created a main challenge for the business in terms of fragility and flexibility of the
businesses.
2.4 PRESENT AND FUTURE OF SME’S
Nowadays, the majority of businesses is composed of small and medium-sized firms, in
countries like the UK the percentage of SMEs is almost 99% of the total businesses in the UK.
Even with the constraint list of globalisation, the number of small businesses has been drastically
increased and hence helped in the economic development of the country. There are
technological, agricultural, outsourcing and many other business units. Another research
depicted that there has to be more focus on the training and development of the staff members
for the companies who are willing to move global markets. this can also be an effective way of
fulfilling the skill shortage and overcoming from most of the challenges of globalisation. The
fact that global economy is become successful by the abilities of their people (Cherunilam,
2010).
The SMEs provide 59.1% of the overall private sector in the UK and is responsible for around
49% of turnover. According to the current economic downturn situations, growth is most likely
to come from SMEs. They have to become stronger through deleveraging and diversification
rather than just focusing on the operational resilient and better prepared to manage economic
challenges and the new risk landscape (The Economist Intelligent Unit, 2012). At the same time,
the SMEs management had become cautious and risky for the owners and people. In terms of
becoming specialist, with the globalisation effects, it’s quite difficult to keep the pace of
economic growth for the company and country. However, the SME’s are emerging as more
optimistic and dynamic with the growing rate of globalisation in the markets.
2.5 GLOBALISATION IN NEXT DECADES
It can be depicted from the research and several studies that the globalization will going to keep
the same or even large pace in its growth especially with the growing SME’s and innovative
businesses and they have a unique opportunities in the markets on global platforms to serve
people. The role of globalization in SME’s can be seen as the most potent force that has affected
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them more towards positivity and hence has helped them to gain a competitive advantage in the
markets.
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CHAPTER 3 METHODOLOGY
The research design used to gather the information or data from a sample of SMEs in the UK
with the help of the qualitative analysis. The developing of a research strategy can be viewed
with the help of the research stages in detailed (Gunasekaran et al., 2011). The progression of the
case studies technique in order to stratify the instrument in the study. The philosophy requires
effective definition through which appropriate research approach is elected. This can help in
meeting the time horizon and research strategy. The representation of the research through
variant stages of data collection methodology is identified with the creation of the
methodological study.
The research philosophy can differ on the goals through which the goals of the study might be
used in the best way. The interpretivism philosophy can consistently direct between subjects i.e.
real cases of SMEs in the UK. The implementation of the research approach of inductive can
characterise the specific move through looking for the data. This approach can collectively focus
on data which is gathered from the Cases in the UK (Moncada-Paternò-Castello et al., 2011).
Although, this may be seen as the point at which the theories are generated can direct on the
qualitative research. This research process can benefit by reducing the potential researcher bias
in the data collection. Further, the secondary data collection is concerned with the specific
phenomena of the negative and positive impact of the Globalisation. This may direct on the
significant pattern of the information that can be used for the generation of results.
The research strategy is intended to carry out the desired work of the impact of the globalisation
on the business. This refers to the various examples in form of the case study research (Lindlof
and Taylor, 2017). However, this can be used in all areas of the research with the considerate
range of a limited number of factors. For the purpose of this study, the research adopts the cases
study information as the qualitative data can help them to achieve the research objectives. This
can variably meet with the descriptive design (Bernard, 2017). Thus, the source of data refers to
the sources of the relevant information through which the tapped objectives of the study have
been directed. The secondary data collected for the study has involved the SMEs of the UK from
different areas of the UK which were elevated through journals, reports and web sources
(Sekaran and Bougie, 2016).
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The case study research is directive to the single unit in order to establish the features of the
globalisation and establishing the key strategic interventions for the business. There is specific
nature of the single unit in order to establish the importance of culture and context of difference
in the cases. The Choices can outline the research with the qualitative study through which the
wider selection of the methods can be used (Bell et al., 2018). There is a difference between the
social characteristics are managed with the study that can help in managing the constituents of
the unit of analysis.
The number of the criteria for deciding the research information can be access to lots of literature
about the problem through a theoretical model with the defined. This is suitable to use the
inductive approach in order to limit the information of the existing literature. It may be more
appropriate (Neuman, 2013). The qualitative investigation of the study can provide the
conducted a series of in-depth interviews that explore the attitudinal dimensions of the cases of
the SMEs in the UK. The time horizon is the framework through which the intended information
with the cross-sectional study is already established. This can electively meet with the data
collected at a certain point (Fowler Jr, 2013). The empirical testing and validation of the study
with reference to the cases can help in meeting the cases. The working style and issues that are
present in the business expansion have been discussed in the study.
The thematic analysis will contribute to directing the theme of the impact of globalisation in the
SMEs in the UK. This can help in finding the better results with which the qualitative analysis
can be projected. The research can be related to the topic that is involved in the study. The cross-
sectional studies can refer to the collection of the data with the repeatedly over an extended
period. This can direct the important factor of the research as examining the change (Freeman et
al., 2012). The control of the specific research can benefit from being used to change the
development of the work with the establishment of the specific research. The data collection and
analysis process can help in meeting the methodological approach with the research contribute
with the significant study that meets with the reliability and validity to regardless of the approach
used to the project (Silverman, 2010).
The secondary data can help in working with the opinion of the research by constituting
secondary data with the processed methods. The extent to the data constitutes the inherent nature.
This can newspaper may provide the information with the crime present in the UK. The thematic
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analysis can explicit the themes of globalisation. This text can range from the single word
response to an open-ended case or complex as a body of thousand pages (Narula and Simon,
2010). This can bring qualitative researchers to analyze the transcribed the in-depth case study in
lengths. It can considerably set the complexity of the study in the different data. Also, it should
be taken into consideration that complexities are varying with the data types.
The ethical considerations that are specified with the most research are doomed to failure with
the part of missing it. The case study for the research is subjected to not harm with anyways
whatsoever. The dignity of the research is maintained as the information that is prioritised in the
study can be directed. The adequate level of confidentiality of research data can be ensured with
the anonymity (Myers, 2013). The individuals and organizations cases involved in the study
must be ensured. The privacy and maintenance of the highest level of the objectivity in
discussion direct on the study of the UK. The adherence to data protection act 1998 meets with
studying in the UK.
On the other hand, the limitations of the research can critically meet with the striving measures
of the research. The range of the scope can provide the acknowledgement to the research
limitations and clarify the cases involved in the study (Mir et al., 2014). The formulation of the
research is too broad as the study can be increased with the level of the focus on the aims and
objectives. There are extensive experiences gained with the secondary data with the case studies
(Khan, 2011). This can exemplify with their dependency on the nature of the research. The set
data can help in meeting the qualitative studies through the range of sources such as journals,
articles, newspaper and other web sources for the case studies. Thus, this dependency on the
literature review for the qualitative study can project on findings of the research. The research is
built on the objectives which are involved in the contemporary topics for the study (Hutchinson
and Persyn, 2012). The scholar paper addressing the research problem i.e. negative impact of the
globalisation on the SMEs in the UK has been identified effectively in the study.
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