Master of Management: Globalization and Serving Delicacies Report

This report, prepared for a Master of Management for Engineers program, examines the influence of globalization on businesses, using Serving Delicacies, a fast-food restaurant, as a case study. It begins by defining globalization and outlining its benefits, such as increased market access and technology sharing. The report then analyzes the international contextual factors affecting the fast-food industry, highlighting the impact of globalization on business structures, including decentralization and the need for technological investments. It also addresses potential challenges like organizational structure adjustments and leadership issues. Recommendations include focusing on cultural differences, equitable resource distribution, and local workforce development. The report concludes by emphasizing the significant impact of globalization on business operations and the importance of adapting to international contextual factors.

Running head: MASTER OF MANAGEMENT FOR ENGINEERS
Master of Management for Engineers
Name of Student
Name of the University
Author Note

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Executive Summary
The globalization of the firms has led to increased business prospects all around the world. It has
led to transfer of knowledge, material, labour and other raw materials all across the world. This
report would discuss about the international contextual factors of globalization on the selected
organization- Serving Delicacies. The potential benefits and challenges concerning with the
topic would be discussed. The effect of globalization on the organizations would also be
enumerated. This report would enhance the understanding of the role of globalization in a given
business context.

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Table of Contents
Introduction......................................................................................................................................3
Definition of relevant concepts- Globalization................................................................................3
Benefits of Globalization.................................................................................................................4
International Contextual Factors in Fast Food Industry..................................................................5
Effect of Globalization on the business structures..........................................................................5
Potential Challenges of Globalization.............................................................................................6
Recommendations............................................................................................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

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Introduction
The globalization is being referred to as the increased interaction of the states, people,
countries and others by the mode of the growth of various international exchanges of ideas,
money and culture (Hirst, Thompson & Bromley, 2015). The process of globalization is
concerned with the economic process involving integration having cultural and social aspects.
There are usually different kinds of globalization namely economic, cultural and political
globalization (Baylis, Owens & Smith, 2017). There are different positive aspects of
globalization such as enhanced trade flow between the business prospects and the nations. There
is increased business growth which leads to the prosperity of the nations. There are several
negative consequences of globalization namely deterioration of the indigenous culture,
inequalities of income and the enhanced currency issues (Hirst, Thompson & Bromley, 2015).
The selected organization for this research is Serving Delicacies, which is a fast food
restaurant that is situated in Melbourne, Australia. The primary goal of the report is to give
strategic advice to the Board of Directors regarding the effect of the selected business contextual
factors on the organization. The effect of globalization on the business structures of the company
would be identified. The concept areas would also be discussed relating to the expertise of
globalization.
Definition of relevant concepts- Globalization
The globalization provides overall advantages to the individual economies all around the
world and makes the market efficient, competitive and wealthier by giving increased income
opportunities to the nations all over the world (Crane & Matten, 2016). The globalization has

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affected all the spheres of modern life and it is s strong force in the global economy. There are
periods of nationalism and protectionalism of the world economy in the past and globalization is
usually considered as the most important solution for ensuring consistent economic growth all
around the world. The current wave of globalization has been driven by the opening of the
economies in both domestic as well as international spheres (Hirst, Thompson & Bromley,
2015). The Government of the nations has reduced the inter-nation borders to different
commerce so that there can be setting up of international agreements so that there is better
promotion of goods, investment and services (Pieterse, 2015). The corporations are increasingly
making foreign factories and establishing production as well as marketing arrangement with the
different cross-border partners (Hirst, Thompson & Bromley, 2015). The technology has played
one of the most important roles in the globalization process. The various advances in the
technology have transformed the economic life of the nations (Hay & Marsh, 2016).
Globalization affects the international business and financial structures of the nations. It also
leads to faster analysis of the economic trends around the world and easy transfer of the different
assets.
Benefits of Globalization
There are several advantages of the globalization process that is implied on the
organizations. Serving Delicacies should undergo cross border trade as it would lead to greater
business growth (Stiglitz, 2017). Since the company is a start up firm, hence cross-border trade
would imply more business prospects. Some of the benefits of the globalization would include-
 Serving Delicacies would find access to the larger markets which implies that the firm
would witness higher growth of demand as well as benefits resulting from the economies

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of scale (Hirst, Thompson & Bromley, 2015). This would imply a greater reduction in the
average production costs.
 There would be increased avoidance of the process of regulation by the location of
production in countries so that there are less strict regulatory processes like those in the
less developed countries (LDC) (Richard, 2014).
 The aspect of globalization has led to enhanced inward investment flows in between the
different countries that have created multiple benefits (Hirst, Thompson & Bromley,
2015). There would be greater sharing of the technology as well as knowledge between
different countries.
 Serving Delicacies would have access to the worldwide access of the raw materials at an
affordable price in both the home markets as well as overseas market. The sourcing of
cheap labour and cheap materials for the purpose of production is regarded as global
sourcing and it would lead to increased shareholder profits (Shum et al., 2014).
International Contextual Factors in Fast Food Industry
The fast food industry has witnessed the greatest effects of globalization in the recent
past. There are adaptations of the typical French cuisines and Italian dishes all over the world.
The fast food corporations such as Pepsico Restaurants, KFC, McDonalds and others have
opened its branches in almost every countries of the world (Jenkin et al., 2014). The primary
target market of the fast food industry is the children and teenagers who like to taste yummy
foods within reasonable budget (Jenkin et al., 2014). The agriculture as well as food industries
have become global which have crossed the national boundaries. The increased effect of
globalization has threatened the local food cultures and the local food businesses.

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Effect of Globalization on the business structures
The globalization implies that the business would be moving to new territories which
imply that the company needs to set up new organizational structures or modify the existing
business structures. The aspect of globalization would allow the company to implement
decentralization (Crane & Matten, 2016). This would imply that the company may have to use
local management team who are well conversant with the local culture (Crane & Matten, 2016).
This would imply that there would be minimum degree of trainings required for the new staff
inducted. Depending on the scale of operations, the company needs to invest heavily in
technology so that the business would stay on schedule and also remains profitable (Hirst,
Thompson & Bromley, 2015). The customers would also be able to receive the food orders in a
timely manner irrespective of their locations. The globalization implies that a greater amount of
the communication systems need to be developed in the countries where the business has
ventured.
The globalization ensures that the company would be able to embrace low-priced
workforce as well as raw materials since the local resources would be used for this purpose
(Chung, 2014). There would be greater access to cheap labour and there would be more access to
the raw materials. The companies also need to focus on the fierce competition, which is a major
bi-product of globalization.
Potential Challenges of Globalization
The globalization poses major challenges for the business entities and there are questions
regarding the long-term sustainability of the firm (Crane & Matten, 2016). There are several
challenges that should be considered before venturing into foreign locations-

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 Organizational Structure- The organizations in the new regions need to incorporate
value chain as well as corporate structure in their business organizational structures
(Jones & Weder, 2017). This can be a hurdle for the development of particular business
development units. The finding of the value for fixing organizational investment is a
troublesome matter. The organizational structure may be difficult to follow in the foreign
locality.
 Leadership- The business start up Serving Delicacies may face difficulties in the
leadership processes as they may lack the leadership skills required in the specific
geographical markets (Jones & Weder, 2017).
 Labour- There can be issues with the mobility of labor between the countries where the
labors working in the home country may not be willing to travel in a foreign location
(Maček & Bobek, 2015). This may enforce the company to recruit local talent, which can
be difficult at times.
Recommendations
The new company should keep in mind that it has to deal with the already established
market players. It should devise suitable policies for combating with the big multinational
companies. The following points should be kept in mind before venturing into foreign locales-
 The company should give adequate attention to the cultural differences that is bound to
happen between the team members in the foreign locale. The company should focus more
on the mutual agreements so that there is enrichment of the organizational culture.
 There should be equitable distribution of the resources and more attention should be
given to the supply chain operations. It should allow the local workforce development

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through constant development as well as management of the different environmental
resource.
 The HR department should be careful in their hiring decisions and should concentrate on
hiring of local talents more. This would also help them to curtail the operational prices.
Conclusion
Globalization has major impact on the business functioning. The international contextual
factors of globalization have a major effect on the way the organizations operate on a day to day
basis. The potential benefits as well as challenges of globalization are being discussed in a
coherent manner. The effect of globalization on the business structures of the selected firm is
also discussed. The company should abide by the different recommendations that are being
provided. The report would broaden the understanding of the international contextual factor of
globalization in the given organizational scenario.

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References
Baylis, J., Owens, P., & Smith, S. (Eds.). (2017). The globalization of world politics: An
introduction to international relations. Oxford University Press.
Chung, H. M. (2014). The role of family management and ownership on semi-globalization
pattern of globalization: The case of family business groups. International Business
Review, 23(1), 260-271.
Crane, A., & Matten, D. (2016). Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Hay, C., & Marsh, D. (Eds.). (2016). Demystifying globalization. Springer.
Hirst, P., Thompson, G., & Bromley, S. (2015). Globalization in question. John Wiley & Sons.
Jenkin, G., Madhvani, N., Signal, L., & Bowers, S. (2014). A systematic review of persuasive
marketing techniques to promote food to children on television. Obesity reviews, 15(4),
281-293.
Jones, R. W., & Weder, R. (Eds.). (2017). 200 Years of Ricardian Trade Theory: Challenges of
Globalization.
Maček, A., & Bobek, V. (2015). A Development Vision and Strategy Model as a Response of
Cities to the Challenges of Globalization. In Perspectives on Business and Management.
InTech.
Pieterse, J. N. (2015). Globalization and culture: Global mélange. Rowman & Littlefield.

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Richard, J. P. J. (2014). Developing a survey to investigate Japanese learners’ perceptions and
awareness of globalization.
Shum, P. K., Yeung, R. W., Wong, J. F. K., & Yuen, W. K. (2014). 4 Globalization and the role
o f multinational corporations. International Economic Development: Leading Issues and
Challenges, 52.
Stiglitz, J. E. (2017). The overselling of globalization. Business Economics, 52(3), 129-137.