Analyzing Globalization's Influence on Corporate Structures of MNCs

This research proposal investigates the influence of globalization on the corporate structures of large multinational companies, using InterContinental Hotels (IHG) as a case study. The research aims to analyze globalization's impact on corporate structures and business activities, identifying challenges and recommending strategies to mitigate negative effects. The proposal includes a literature review examining the concept of globalization, its benefits, and its impact on corporate structures. The methodology outlines a qualitative research approach, utilizing both primary and secondary research methods, including surveys with InterContinental Hotels managers. The data collection methods involve questionnaires and thematic analysis, with purposive sampling used to gather relevant data. The project also addresses ethical considerations and provides a timeline for completion. The study seeks to understand how globalization affects businesses, particularly in the hospitality industry, and provides insights for multinational companies navigating the global landscape. The research intends to provide a comprehensive understanding of globalization's effects on corporate structures, offering valuable insights for strategic decision-making.

RESEARCH PROPOSAL

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Background of the study.............................................................................................................1
Research Aims and Objectives....................................................................................................1
Rationale.....................................................................................................................................2
Literature Review........................................................................................................................3
Research Methodology................................................................................................................5
Timeline......................................................................................................................................6
REFERENCES................................................................................................................................8

TITLE: To study the influence of Globalization on the corporate structures of large
multinational companies and the major challenges they face.
INTRODUCTION
Background of the study
Globalization is a very important concept or process for any business organization in
order to perform their duties effectively. It can affect them in both ways, i.e., positive and
negative. Considering the positive impact will help an organization to expand their business
globally by making relationship with same businesses of other country. In this way it will have a
huge influence on their business as due to globalization organizations are able to increase their
sales, production and can generate a good overall revenue and profit (Prashantham, Eranova and
Couper, 2018).
This process has a huge impact on the corporate structure of large multinational
companies. There are various department which are performing in the companies, such as,
financial department, marketing, etc. All these plays an important role in enhancing the
performance of the organization. But with this globalization it can affect their management as
due to this, there are various issues which can arise, for example, availability of labour, policies
difference, etc. Globalization also allows the corporations in forming effective partnerships with
companies that are presenting worldwide (Giddens, 2018). With such type of partnerships, it
helps in minimizing the costs and maximizing the quality of the organization and its work. This
has lead to impact all the business organization positively and negatively as well.
Research Aims and Objectives
Aim: “To study the influence of Globalization on the corporate structures of large
multinational companies and the major challenges they face- A case study on
InterContinental Hotels (IHG).”
Objectives
 To analyse the concept of Globalization and its impact on InterContinental Hotels.
 To identify the influence of globalization on corporate structures of InterContinental
Hotels.
1

 To analyse the impact of globalization on business activities of InterContinental Hotels.
 To recommend some strategies to minimize the influence of globalization on the business
of InterContinental Hotels.
Research Questions
Question 1: What is the concept of Globalization and its impact on InterContinental Hotels.
Question 2: How to identify influence of globalization on corporate structures of
InterContinental Hotels?
Question 3: How to analyse the impact of globalization on business activities of InterContinental
Hotels?
Question 4: What are the recommendations provided to minimize the influence of globalization
on the business of InterContinental Hotels?
Rationale
Present subject or topic has been selected by the researcher as globalization has a huge
impact nowadays on hospitality industry. This project will assist them in evaluating the influence
of Globalization on the corporate structures of InterContinental Hotels and the major challenges
they face due to this. Present topic has a huge importance for InterContinental Hotels, as
globalization can assist them in increasing their business at global level (Vargas-Hernández and
Dávila, 2015). Selected topic is very crucial for the researcher as it will help them in studying the
concept of globalization and it impacts the business activity of InterContinental Hotels. As due to
this, organization can increase their sales and overall profit as well.
Globalization can have a huge impact on their business activity as they are the leading
company in the hospitality sector which makes it more essential for them to understand the
concept of globalization and its impact on them. Present topic will also help the researcher to
identify influence of globalization on corporate structures of InterContinental Hotels as well.
This will help in analysing all the positive and negative impacts of globalization on their
business activities and they can deal with this situation (Popescu and Stoica, 2015). This research
proposal will help in analysing the impact of globalization at global level on the business
operations of InterContinental Hotels respectively.
2

Literature Review
Literature review is a type of evaluative report which helps in analysing all the
information related to the selected topic by the researcher. This literature review helps in
providing all the information and give a theoretical base for the research and help the researcher
in determining the nature of the research.
Theme 1: Analysing the concept of Globalisation and its benefits on multinational
companies.
According to Kraidy (2017), globalization is a process which helps an organization to
develop an international influence or to start operating on an international scale which can
increase their business as well. This is basically a process which has provided companies the
opportunities to interact globally with other business organization in order to expand their
business further. Various government policies has been designed in order to open economies
domestically and internationally to boost their development in poorer countries and raise
standards of living. Multinational corporations see both benefits and downsides of globalization
Cvetkovich (2018) stated that, this concept of globalization can also impact negatively on the
businesses which can lead them to affect them to a large extent.
As per the view of Czaika and De Haas (2014), it has increased the trade across borders
of goods and services which has increased the level of labour migration between countries as
well. Globalization has also created huge benefit for the multinational companies. The increased
the emergence of global brands. Globalisation has led to increasing competition and an economic
and financial shift from developing to emerging economies. It promotes a sense of cultural
awareness, international co-operation and global economic inter-dependency. Petras (2016)
demonstrated that, this process can affect in the terms of availability of labours, technology
advancement, etc. In addition, globalization may have disproportionately benefited Western
corporations and enhanced wealth disparity as well.
As per the view of GwoĨdziewicz and Prokopowicz (2016), multi-national companies
which is operating their business successfully in their respective industry have had to devise and
customise their new strategies for doing business in the emerging markets and implement new
business models in order to stay ahead of the competition. This will assist them in providing the
positive feedback from their customers. Giddens (2018) stated that, negative impact of
globalization should also be considered very carefully by the multinational companies as they
3

can have a difficult time coordinating activities in a globalized economy, because after
globalization there are high chances that multinational companies will have employees from
various countries which will make difficult for them to understand their language. Due to this, it
can become sometime very difficult to coordinate with them effectively which affects the
business.
Theme 2: Identifying the influence of globalization on corporate structures of multinational
companies
According to Baylis, Smith and Owens (2017), multinational companies (MNC) are those
which operates their business at global level in order to gain more profit from their business.
These are corporate organizations that own or control production of goods or services in 2 or
more countries other than their home countries. Steger (2017) said that, there is a huge influence
of globalization on corporate structures of multinational companies as it as the ability to affect
the organizational structure of an organization very easily. It becomes very difficult for the
multinational companies to manage their work. As corporate structure consist of several
departments which helps in contributing in the company's overall mission and goals. It basically
includes departments, such as, marketing, finance department, operations management, human
resource, IT, etc.
As per the views of Milanovic (2016), corporate structures are not that much affected
from globalization. Due to internationalization of the processes, such as, supply chains,
globalized teams must transmit tasks and match across borders. Therefore, economic research is
increasingly interested in the internal structures of firms. Petty, Thomson and Stew, (2012)
demonstrated that, almost all the multinational companies has consisted of various departments
which can have a huge impact on their business. This can also lead in decreasing their brand
value as well. This can have a huge impact on their business and on their overall revenue as well.
It is very important for the multinational companies to understand the impact of globalization on
their business with the help of which they can successfully operate business nationally as well as
internationally in their respective industry.
Zhang (2013) suggested that, globalization helps in providing the option of expansion of
foreign direct investment through which they can improve their performance at global level. This
will assist in making a good interaction with foreign countries in order achieve their targets and
objectives from the business. In this way it will be very beneficial for them to enhance their
4

revenue effectively. According to Meyer (2017), this process or concept of globalization can also
affect their structure and management as well. Globalization will lead to have variety of
employees from different nation. This will influence their working environment as it will become
difficult for the organization to communicate and interact with them efficiently. This will have a
huge negative impact on their business.
Research Methodology
Research Type: In performing any research, there are two types of methods that is available for
the researcher. These are Qualitative and Quantitative research methods. For this current
research, researcher will apply qualitative research method as it will help them in studying the
topic more precisely (What’s the difference between qualitative and quantitative research, 2014).
Qualitative method includes observation and non numerical analysis which is appropriate for this
project in gathering the best data for the completion of this work by the researcher.
Research Approaches: This process includes all the plans and procedure which will take place
while collecting the data for the current research. There are various approaches, such as,
inductive and deductive approach. These approaches help the researcher in evaluating both
primary and secondary resources in order to complete the research effectively. For this current
research, inductive approach will be used by them as it helps in converting observation into
theory.
Research Methodologies: In the context of present research, both will be used by the researcher,
i.e., primary and secondary research methodology. In primary research methods, survey has been
conducted in which 20 managers of InterContinental Hotels were asked several questions on the
basis of designed questionnaire, which helped in gathering all the relevant data. Further, in
secondary research method, data has been collected from various books and journals and
scholarly articles as well.
Methods of Data Collection: It is very essential to collect all the gathered data very carefully.
This process helps in collecting all the relevant data which is required by the researcher in order
to complete the research. Qualitative methods helps the researcher to collect all the relevant
information on the basis of questionnaire and survey which has been conducted by them (Data
Collection Methods, 2017). On the basis of that gathered information thematic analysis has been
performed by the researcher to conclude the result.
5

Sampling: For this present research, purposive sampling technique has been used by the
researcher. For this, few questions has been asked to 20 managers of InterContinental Hotels to
study the impact of globalization on their corporate structure effectively. Researcher has also
used probabilistic approach in gathering data for the current research in order to complete the
research.
Analysis of Data: In this process all the collected data been analyzed by the researcher in order
to complete the research. All the information and data collected from the survey and
questionnaire, it helped the researcher in giving them appropriate suggestion in which
InterContinental Hotels can deal with the impact of globalization on their business organization.
Effective analysis has to be done by them in achieving their targets and objectives effectively.
Ethical Consideration: In this section, researcher has given all the manager to fill concern
before answering the questions. This will help in performing the task peacefully without hurting
the sentiments of any person during the survey.
Timeline
Activities 1st
week
2nd
week
3rd
week
4th
week
5th
week
6th
week
7th
week
8th
week
9th
week
10th
week
11th
week
12th
week
Generating Idea
Communication
of plan
Cost Analysis
Time
Management
Market survey
Conducting
Collection of
Data
6

Analysis of
gathered data
Analyzing the
final outcomes
Suggesting
changes
Development
plan Drafting
Final Result
Submission
7

REFERENCES
Books and Journals
Baylis, J., Smith, S. and Owens, P. eds., 2017. The globalization of world politics: an
introduction to international relations. Oxford University Press.
Cvetkovich, A., 2018. Articulating the global and the local: Globalization and cultural studies.
Routledge.
Czaika, M. and De Haas, H., 2014. The globalization of migration: Has the world become more
migratory?. International Migration Review. 48(2). pp.283-323.
Giddens, A., 2018. Globalization. In Sociology of Globalization (pp. 19-26).
GwoĨdziewicz, S. and Prokopowicz, D., 2016. Globalization And The Process Of The Systemic
And Normative Adaptation Of The Financial System In Poland To The European Union
Standards.
Kraidy, M., 2017. Hybridity, or the cultural logic of globalization. Temple University Press.
Meyer, K. E., 2017. International business in an era of anti-globalization. Multinational Business
Review. 25(2). pp.78-90.
Milanovic, B., 2016. Global inequality: A new approach for the age of globalization.
Petras, J., 2016. World development: globalization or imperialism?. In New Perspectives on
Globalization and Antiglobalization (pp. 47-60).
Petty, Thomson and Stew, 2012. Ready for a paradigm shift? Part 2: Introducing qualitative
research methodologies and methods. Manual therapy. 17(5). pp.378-384.
Popescu, M. and Stoica, I., 2015. Considerations Regarding the Psychosomatics Importance in
Achieving Business Success in the Context of Globalization. Quality-Access to Success.
16.
Prashantham, S., Eranova, M. and Couper, C., 2018. Globalization, entrepreneurship and
paradox thinking. Asia Pacific Journal of Management. 35(1). pp.1-9.
Steger, M. B., 2017. Globalization: A very short introduction (Vol. 86). Oxford University Press.
Vargas-Hernández, J. G. and Dávila, M. C. F. C., 2015. Methodological Proposal for the Study
of the Impact of Globalization on Business Strategy of Mexican International Enterprises.
In 19th Annual Western Hemispheric Trade Conference April 15-17, 2015| Laredo, TX,
USA Conference Proceedings (p. 385).
8

Zhang, Y., 2013. Urban metabolism: a review of research methodologies. Environmental
pollution, 178, pp.463-473.
Online
Data Collection Methods. 2017. [Online]. Available through: <https://research-
methodology.net/research-methods/data-collection/>
What’s the difference between qualitative and quantitative research?. 2014. [Online]. Available
through: <https://www.snapsurveys.com/blog/qualitative-vs-quantitative-research/>
9