Dissertation: Analyzing Globalization and Localization in Business

This dissertation explores the concepts of globalization and localization, examining their significance for businesses and societies. It delves into the merits and demerits of each strategy, utilizing an inductive approach and qualitative strategy to systematically analyze the subject matter. The study outlines the importance of these strategies, analyzes factors influencing their adoption, and provides real-world examples of companies operating globally. The dissertation also assesses the impact of globalization and localization on the operations and success of small enterprises. The research investigates the benefits of globalization for business development and social improvement, while also considering the influence of localization strategies on brand value and consumer loyalty. The dissertation includes a literature review, research methodology, data analysis, discussion, and conclusions with recommendations for future research.

DISSERTATION
(Globalization and Localization)

ABSTRACT
The paper deals with concept of globalisation and localisation. It describes both these
terms as well as their merits and demerits. Present study takes support of inductive approach and
qualitative strategy. This helps in conducting entire dissertation in a systematic manner. It
discusses the importance of globalisation and localisation strategies for business and for societies
as well. Furthermore, factors that influence the adoption of globalisation and localisation are
involved in research paper. Thesis highlights impact of these strategies on operations and success
of other small enterprise. It is found that globalisation is a great strategy that can support in the
development of business and it is beneficial for improving social condition as well.

ACKNOWLEDGEMENT
I would like to thank my family members for their full support. This study would never
be completed without guidance of my professor so special thanks to Dr. S. John. I also want to
thank to my friends who were always with me and have developed my confidence.

TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION....................................................................................................1
Background of the study..............................................................................................................1
Aim and Objectives.....................................................................................................................2
Rationale......................................................................................................................................2
Significance.................................................................................................................................3
Research specification.................................................................................................................3
Dissertation structure...................................................................................................................4
CHAPTER 2: LITERATURE REVIEW.........................................................................................5
Importance of globalization and localization strategies..............................................................5
Factors that influence the adoption of globalisation and localisation..........................................6
Real examples of companies that operates globally....................................................................8
Impact of globalization and localization strategies on operations and success of other small
enterprises....................................................................................................................................9
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................11
Introduction................................................................................................................................11
Research Philosophy..................................................................................................................11
Research Design........................................................................................................................12
Research Approach....................................................................................................................12
Research Strategy......................................................................................................................13
Data collection...........................................................................................................................13
Sampling....................................................................................................................................14
Data analysis..............................................................................................................................15
Ethical consideration.................................................................................................................16
Research Limitations.................................................................................................................16
CHAPTER 4: DATA ANALYSIS................................................................................................18
Introduction................................................................................................................................18
Data Analysis.............................................................................................................................18
Conclusion.................................................................................................................................33
CHAPTER 5: DISCUSSION........................................................................................................34
CHAPTER 6: CONCLUSION AND RECOMMENDATIONS...................................................36
Conclusion.................................................................................................................................36
Recommendations......................................................................................................................37
Areas for future research...........................................................................................................37
REFERENCES..............................................................................................................................38
APPENDIX....................................................................................................................................41

CHAPTER 1: INTRODUCTION
Background of the study
Globalisation can be defined as interaction between different economies around the world.
Development of technologies has connected people globally. This is considered as an effective
way to resolve deep-seated problems such as unemployment, poverty, etc. But it is also a fact
that social injustice is the result of globalisation. There are many companies which are
concentrating of making localisation strategies. This helps these firms in minimizing cultural
issues and boosting brand value in the same location. Localisation supports entities in order to
communicate effectively in local markets and eliminating sensitivities (Lasserre, 2017).
Globalisation is the strategy that supports many poor countries and aids in improving
their per capita income. Though it is unable to reduce national sovereignty, it helps in creating
benefits for government so that authorities can prepare effective economic policies for the
development of regions. Localisation strategies are unable to provide better educational
opportunities to the population but increase in globalisation has helped local people to move
across the border in order to acquire better education (Crane and Matten, 2016). This has helped
in the integration of cultures and now, it has become easy for people to understand culture of one
country and get adjusted into it.
There are many companies which are spending such a high amount in order to localise
their marketing activities. Many people feel comfortable to buy products from such website
which is in their local language. These localisation strategies are helpful in understanding the
needs of consumers and providing them satisfactory goods to them. This enhances their loyalty
and satisfaction towards the brand (Tarofder, Azam and Jalal, 2017). Increasing free trade
opportunities, advanced technologies, better education and improved health facilities are the
advantages of globalisation. Though to some extent, it increases wealth inequalities but it is the
key element for reducing poverty.
Present study is based on the globalisation and localisation. It will discuss the importance
of these strategies for business and for societies as well. Furthermore, it will analyse factors that
influence the adoption of globalisation and localisation (Hirst, Thompson and Bromley, 2015).
Research paper will highlight the impact of these strategies on operations and success of other
small enterprise.
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Aim and Objectives
Aim
“To understand the concepts of Globalization and Localization of companies and analyse
benefits and disadvantages that come with adopting these strategies”
Objectives
 To outline the importance of these strategies and role plays by globalisation and
localisation for companies operating in different sectors or fields
 To analyse factors that influence the adoption of globalisation and localisation
 To discuss the real examples of companies that are already globalized and made use of
localization strategies
 To examine the impact of these strategies on operations and success of other small
enterprises To suggest the ways to improve productivity and profitability of business by
implementing Globalization and Localization strategies
Research Questions
 Why Globalization and Localization strategies are important and what role it plays for
companies operating in different sectors or fields?
 What are the main factors that influence adoption of globalisation and localisation?
 What are the real examples of companies that are already globalized and made use of
localization strategies?
 How has these strategies influenced operations and success of other small enterprises?
 What are the ways to improve productivity and profitability of business by implementing
globalization and localization strategies?
Rationale
One of the main reasons of conducting this research is that this researcher has a huge
interest in such type of topic. Globalization and Localization strategies are the unique concepts
that have increased interest of scholar to work on it (Jenson and de Sousa Santos, 2018).
Furthermore, this topic has been provided by university and thus, scholar has to carry out entire
investigation on this topic. It is a semi structured topic and thus, this would be easy to conduct
research on subject. There are many researchers who have prepared their studies on globalisation
and many companies are working across the world. Thus, there is huge secondary data available
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on this topic that can support the investigator in developing their understanding and identifying
impact of these strategies on business units and other sectors as well (Yen and Abosag, 2016).
Significance
Globalization and Localization strategies are most commonly used by many companies.
There are many big organizations which are operating their business across the world. This study
will help these firms in identifying advantages and disadvantages of these strategies for their
business. Furthermore, it will be beneficial for small enterprises in order to find out ways
through which they can apply these tactics effectively at the workplace. This will help these
small scale entities in entering into global market and gaining competitive advantages
(Williamson, 2015). Furthermore, research will help many other scholars in getting brief idea
about importance of globalization and localization for different sectors and thus, they will be
able to conduct their study on the same topic for different sectors in the near future. This will be
beneficial for start-up firms which are planning to enter in a market. This will help in finding
ways through which they can get established in the market.
Research specification
Research methodology is the systematic plan of conducting an investigation on particular
topic and finding results. In the present study, scholar will apply interpretivism philosophy.
Individuals will involve theories and models in order to identify the facts about Globalization
and Localization strategies. Furthermore, inductive approach will be used that will help in
involving the most relevant theories and finding real examples of companies that have
implemented these strategies (Venkataraman and Pinto, 2017). Researcher will use primary and
secondary; both data collection sources. In addition to this, random sampling process will be
applied for selecting right respondents for the research who can give accurate answers of
research questions. In addition, study will use thematic analysis method that will help in
presenting the themes in effective manner and finding accurate results. Investigator will take care
of ethical aspects and will follow ethical guidelines in order to avoid the consequences.
Individuals will start this research after getting ethical permission from concerned authorities
(Telò, 2016).
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Dissertation structure
Chapter 1 Introduction: This chapter will give brief overview of topic Globalization and
Localization. It will explain the rationale of selecting this subject and significance of this topic.
Furthermore, it will frame the aim and objectives of conducting this study. In addition, brief
description will be the structure of entire dissertation (Knoke, 2018).
Chapter 2 Literature review: This would be the next part of this research. In this, literature of
other authors will be included and these will be reviewed. This will help in developing the
understanding of researcher about Globalization and Localization strategies.
Chapter 3 Research methodology: In this section, tools and techniques of carrying out an
investigation will be explained. This part will give description of suitable research methods for
present study with justification in this chapter (Uluskan, Joines and Godfrey, 2016).
Chapter 4 Data Analysis: In this chapter, data will be evaluated and interpreted.
Chapter 5 Conclusion and recommendations: This would be the last section in which entire
study will be summarised and results will be concluded. Furthermore, necessary
recommendations will be given to improve the productivity and profitability of business by
implementing Globalization and Localization strategies.
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CHAPTER 2: LITERATURE REVIEW
Importance of globalization and localization strategies
As per the views of Westjohn and et.al, (2016) entering into international market is the
critical task for business. It is essential for companies to make right strategy for global
expansion. Establishing effective localisation and globalisation strategy is the key factor that can
support entities in gaining success and making impressive interaction with consumers. One of the
major important elements of globalisation is that it supports entities in generating high revenues.
Lasserre, (2017) argued that globalisation and localisation; both the strategies are helpful and
important for economic growth of nation. There are many companies which are concentrating
more on their local markets. They have built a strong connection with the local public. This has
supported these entities in making consumers loyal and retaining them in the firm for longer
duration. This tax amount is utilised by authorities for the development of country.
According to Hirst, Thompson and Bromley, (2015) whenever organization plans to enter
in the global market then these firms have to face huge challenges such as language, culture,
religion and environmental problems. Localisation creates a positive image in the minds of
customers and they feel valued because products and services that are offered by business units
are specially made for local people. For example: in the year 2015, McDonalds was facing issue
of falling profit. In order to deal with this issue, company has implemented strategy of adding
local taste in its food items. This has attracted many people towards the brand and has helped in
increasing profit of entity. This localisation strategy has created impression of the brand on local
people. Venkataraman and Pinto, (2017) stated that localisation helps in reducing risk and cost of
business unit. Business has to invest such a huge amount for penetrating into new market. If
entity is unable to communicate well with consumers in the local market then it can put negative
impact on brand image of the firm. By implementing efficient localisation strategies,
organization can minimize their expenses and can have control over the local market.
Uluskan, Joines and Godfrey, (2016) declared that globalisation is very important for
promoting culture of one country to other nations. Entering into global market helps in making
other people aware with the cultural aspect of one country and understanding their ethical values.
On the other hand, Westjohn and et.al, (2016) argued that globalisation is important for business
growth but it adversely affects local market. Due to globalisation, local people fails to get
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products on time. This increases inequality among people of different classes. This concept is not
worthwhile for society because sometimes, it negatively impacts on social welfare aspects.
As per the views of Lasserre, (2017) localisation has become the most essential strategic
plan for entities because this supports brand in surviving in aboard for longer duration. By
localising the firm, it can build a bridge in between target consumers and brand. Localisation
strategy concentrates on implementing such activities that suit with the local culture and supports
firm in attracting people towards the brand. According to Tarofder, Azam and Jalal, (2017)
localisation is important for the organization in order to reduce risk and mange critical situation.
Investment in these strategies support in fulfilling short term and long term goals of business.
From the societal point of view, globalisation connects people of one country from other nation.
This helps in understanding different cultures and improving environmental condition. This
encourages in the outsourcing of talent. By this way, more people will get employment
opportunities that would help in raising value of economy to a great extent.
According to Yen and Abosag, (2016) companies play a significant role in the
development of nation and improving economic condition of countries. Entities try to implement
advanced technologies of developed nations so that they can improve the quality of products and
can offer extremely well services to consumers globally. Globalisation assists in making
connection with mass audience and spreading cultural value of region across the globe.
Factors that influence the adoption of globalisation and localisation
As per the views of Telò, (2016) there are various issues due to which companies get failed
to adopt globalisation and localisation strategies. One of the main factors that influences
adoption of these strategies is cultural difference. Each country has its own cultural values and
ethical aspects. When entity enters in the other region then it becomes difficult for these firms to
understand cultural values of particular place and offer products and services to consumers
accordingly. If organizations avoid cultural values of particular nation then it might create
difficulty for the business to sustain in this market for longer duration. Uluskan, Joines and
Godfrey, (2016) argued that there are various external factors that are needed to be considered by
business before adopting globalisation and localisation strategies. Social elements are the most
essential aspects in this respect. Social components are related with behaviour, taste, life style
and life pattern of population of particular place. It is essential for firms to look upon social
differences in between two regions and make strategy in such a manner that marketers can fill
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this gap. By considering religion and lifestyle patterns, entity can develop understanding about
the needs of consumers and can provide goods and services accordingly. For example:
McDonalds is the international brand that conducts its business across the world. Before entering
into the Indian market, company has conducted market research in order to understand cultural
aspect of population. It has been analysed that people like to eat vegetarian food rather than non-
vegetarian and thus; it has prepared menu as per their requirements. This cultural aspect plays a
significant role in the business unit. By considering this element, business can make effective
strategies for globalisation and can run its firm successfully in the new locations.
According to Yen and Abosag, (2016) rules and regulations of different countries are
different from each other. If company plans to enter in the international market then it becomes
essential for the business to follow legislation of such regions. Rules and regulations can
influence the adoption of globalisation and localisation strategies. For example: if entity has
planned to use marketing strategies to promote the brand in particular nation but marketing
content are against the law then in such condition, enterprise will get failed to implement these
strategies effectively. It is because; this will have to make changes in its strategies and will have
to make new plan to attract people towards the brand. Government of diverse nations have made
different policies for the new businesses which are planning to enter in country. Entities are
required to take licence and have to carry out their operations as per the legal guidelines of
authorities. This sometimes create difficulty for the organization and it gets failed to conduct
their operations smoothly.
Lasserre, (2017) stated that priorities and preferences of consumers influence the adoption
of globalisation and localisation. If people like to use more traditional products, entity will have
to provide them products accordingly. Incorrect translation and improper slogan create difficulty
for companies to establish their business and manage operations well. For example: initially KFC
has used “Finger- lickin good” slogan for the brand but it has been found that people are taking it
in a negative manner and they do not prefer to use products of KFC. In such condition, entity has
made modifications in its slogan and changed it into “We’ll eat your fingers off” for Chinese
market. According to Westjohn and et.al, (2016) political condition of the nation plays a
significant role in expansion and internalisation of business. It is essential for the firm to look at
the political situation before making localisation and globalisation strategies. This can support
firm in making correct strategies and taking right decision for the growth of organization. If
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company fails to address political conditions then it might impact negatively on the business unit
(What are the Disadvantages of Localisation, 2018). In such condition, firm will get failed to
manage its operations appropriately.
Wright, (2016) argued that societal values are the driving forces that influence
operational efficiency of business. This is the factor that influences ultimate desires of business.
By considering this element, entity can become able to make more profit in the organization.
Real examples of companies that operates globally
According to Mowforth and Munt, (2015), expansion of business in other international
and overseas nations is a step towards growth of the organisation. It implies to changes in the
world where companies are moving away from the self-regulated countries and toward a more
integrated world.
Some real examples of organisation which have expanded their business are mentioned as
below:
As per the views of Wright (2016), Apple Inc. is considered as the most successful global
brand in present scenario which deals in mobile phones and computer system software. When it
comes to its products, company has opted for one-size-fits-all strategy with iPhone design
identical regardless of region. Apple’s minimalist and intuitive approach has mainly resulted in
products with the global appeal. However, the brand also understand where this standardization
needs to an end. In contrast to this, Rupert and Smith, (2016), viewed that Apple is the major
brand which is not dependent upon other companies as these have a strong brand positioning and
supply of products in other countries.
Krugman (2017), provided another example that Ford Motors was the first brand to carry
out operations internationally as Ford Motor Co. of Canada. At present, company has its
worldwide operations for buying of activities and it is accomplished after considering the source
selection. However, geographical location and cultural proximity will achieve appropriate results
from globalisation (Advantages and Disadvantages of Localisation of Industries, 2018). At
initial stage, company developed its relationship with local manufacturing firms in overseas
nation for assembling vehicles so that they can directly sell their products in another countries.
Dependency of Ford on other companies for sales of products has provided major growth and
recognition to organisation as a globalized venture.
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