A Study of Globalization's Impact on Unilever's Business Operations

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This research project investigates the impact of globalization on Unilever, a multinational consumer goods company. The study explores the effects of globalization on Unilever's operations, including its market share, profitability, and the challenges it faces in a globalized business environment. The research employs a mixed-methods approach, utilizing both primary data collection through questionnaires administered to Unilever managers and secondary data analysis. The project examines various themes, such as the benefits of globalization, including increased market share and technological advancements, and the challenges, such as increased competition and resource constraints. The research methodology includes interpretivism research philosophy and a descriptive research design. The data analysis involves qualitative methods and descriptive statistics to interpret the collected information and provide recommendations for Unilever to operate its functions efficiently and effectively adapt to globalization. The findings highlight the significant impact of globalization on Unilever's business, emphasizing the need for strategic adaptation to navigate the complexities of the global market.
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Research Project
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TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
Research background...................................................................................................................3
LO 1.................................................................................................................................................3
P1 Aims and objectives ...............................................................................................................3
LO 2.................................................................................................................................................4
Time scale and activity breakdown.............................................................................................6
.....................................................................................................................................................6
LO 3...............................................................................................................................................11
. Research Outcomes & Recommendations: .............................................................................11
REFERENCES..............................................................................................................................13
APPENDIX....................................................................................................................................14
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INTRODUCTION
Research background
Globalisation is a process of start performing business activities beyond the geographical
limits of the country. It refers to start selling goods and services to the customers in all over the
world. Globalisation results in enhancement of working of the company. It can also be termed as
process of making interaction by a business organisation with other business unit and customers
belonging to other nations. Globalisation of a company results in enhancement of company’s
revenues and volume of sales. On the other hand, it also increases the cost and expenses of the
company due to expansion of the business.
Unilever is a business that provides consumable goods to the customers of all over the
world. It was founded in the year 1929. Food, beauty products and home care products are the
major categories of products produced and supplied by the company in all over the world.
. The present research is about the impact of globalization on all the operations and
functions of Unilever. It includes use of several tools and techniques for the purpose of data
collection and its interpretation as well. In addition, it also shows a questionnaire to be asked to
the managers of Unilever.
LO 1
P1 Aims and objectives
Aims
The aim is to analyze all the significant changes that occurs within the operations and functions
of the business due to globalization.”
Objectives
To analyze changes occurs in the business due to their globalization.
To determine all the positive impact of globalization.
To identify all the challenges faced by a business organization due to globalization.
To provide recommendation to the Unilever in order to operate its functions efficiently so
as to adopt globalization effectively.
Literature review
Theme: Assessment of factors of globalisation impacting the business organisation
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As per the view of Croucher, S., 2018, globalisation has squeezed all types of organizations in
the world . There are numerous factors that have their effects on Unilever. Technological factor
such as evolvement of internet, more enhanced communication and transport infrastructur have
reformed the way establishments are directing their business. Artificial Intelligence a
technological advancement that have completely transformed the functioning of Unilever in
terms of its customer support system, new innovative products and services, internal control
system etc.
Theme: Benefits of globlisation Unilever
According tO Bozyk, P., 2019, globalisation has promoted the organisation in numeral ways.
The advantage that Unilever has occupied is large market share. Inaugural of globalisation has
commanded the companies to trade its products and services to huge amount of people in
different countries. Globalisation has smoothed the business with plentiful chances related to its
advanced and extension in the greatest emerging countries of the world. All these factors have
straight influence on the trades and profitability of the firm.
Theme: Challenges faced by organisation due to global business environment
Lacey, and et.al., 2015 spoken that global business has helped the business organisations with
various contests. One of the challenges which the company is facing is stiff competition from big
brands around the world. Needless competition in international market has troubled the harmony
of commerce and trade around the world. This forces concerns to treat in unfair trade practices
that eventually damage the clients in terms of high prices, low quality and high dissatisfaction.
An unskilled culture of diverse nations is another challenge that the business has to compact with
for being fruitful in the international market.
LO 2
Research methodology
Research Philosophy:
It means the way in which the data relating impact of globalization is being collected, analyzed
and interpret for determining meaningful results and information for assisting research. There
are two types of research philosophies namely interpretivism and positivism (Pieterse, 2019). In
the present research study, interpretivism research philosophy is been used it balances the
qualitative data analysis in the best way possible. This philosophy has aided in analysing the
challenges faced by Unilever due to globalization of the business.
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Research Design:
It refers to framing the working of research considering the approach, reasons, causes, effects
and factors of globalization of company. It provides many visions to business about using a
particular methodology. Under this research project, there are three major sections: Data
collection, measurement and examination (Knudsen and Stage, 2015). The core elements of
research design are: Questionnaire based on the analysis of effect of globalization on company,
tools and techniques to be executed for data collection, method of analyzing details research
methodology used for analysis, settings for research study timeline and measurement of analysis.
In order to structure research design for learning effect of globalization on company, descriptive
approach is being used.
Research Approach:
It can be defined as the process that contain implementation of data collection, this analysis is
based on reviews provided and factors measured and understanding on whole process. Method is
generally classified into two categories: qualitative and quantitative research. This research of
Unilever is based on qualitative approach which refers to description based in on which opinion
of people is recorded and is investigated with respect to firm’s info through qualitative methods
(Berend, 2016). It detects tendencies of company with veneration to data not the numbers.
Data collection:
For studying and analyzing the impact of globalization on Unilever in relations of man-
aging global rivalry both methods of data collection has been used which are primary and sec-
ondary. Here with in order to collect the primary data, questionnaire is used for better under-
standing. It is an operative tool as by taking help from the given methods views points of
Unilever managers regarding the impact of globalization on business’s commerce on worldwide
market will be analyzed.
Data analysis:
For the research based on analyzing the impact, of globalization on Unilever, benefits of
global corporate environment of the company and the challenges which globalization has terri-
fied on the face of association, data has been analyzed by using the qualitative approach. In the
given approaches different tests of descriptive statistics has been applied. It contains cross tabu-
lation, time scale table etc.
Sampling:
It refers to the procedure of defining the number of observations in advance that re
strained out from big population. There are different types of sampling such as probability sam-
pling and non-probability sampling.
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Random sampling is used for the purpose of measuring the benefits and disadvantages of
global corporate environment on Unilever. 20 managers are chosen as sample for the qualitative
research for understanding the positive and negative impact of global business environment on
Unilever.
Ethical considerations:
Amount of ethical issues occurs to researcher meets while undertaking a research such as
keeping the confidentiality of the evidence of the managers of the business and sustaining the
confidentiality of the sample taken (Wei, 2018). If the privacy is not taken care of, then it can
attract various difficulties in the future studies.
.
Time scale and activity breakdown
Activities 1 week 2 weeks 3 weeks 4 weeks 5 weeks 6 weeks 7 weeks
Developing Research proposal
Literature review
Developing research questions
for data collection
Pilot study
Data collection
Data analysis
Conclusion and recommendation
Task Name Duration Start Finish Predecessors
Research proposal 2 days Mon 18-03-
19 Tue 19-03-19
Aims and objectives 4 days Wed 20-03-
19
Mon 25-03-
19 1
Research methodologies 7 days Wed 20-03-
19 Thu 28-03-19 1
Data collection 8 days Tue 26-03-19 Thu 04-04-19 2
Data analysis 4 days Fri 29-03-19 Wed 03-04-
19 3
Data interpretation 5 days Fri 05-04-19 Thu 11-04-19 4
Finding and conclusion 2 days Fri 05-04-19 Mon 08-04- 2,4
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19
Recommendations 1 day Fri 12-04-19 Fri 12-04-19 5,6
Execute the plan 1 day Tue 09-04-19 Tue 09-04-19 7
Submission 1 day Mon 15-04-
19
Mon 15-04-
19 8,9
Data analysis and interpretation
Theme 1: Impact of globalisation on multinational companies
Particulars Respondents
Agree 14
Disagree 6
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0
5
10
15
20
Respondents
agree
diagree
Interpretation : From the reviews collected from 20 managers of Unilever, it was detected that
large number of persons retorted in favor of condition, according to them globalization had
bottomless impact on their commercial growth although few of them deprived with respect
to any change.
Theme 2: Factors of globalisation that effects business
Particulars Respondents
Technological advancement 10
Communication groundwork 3
Demographic and social changes 5
All of the above 3
0
2
4
6
8
10
Respondents
Technological
advancement
Communication
groundwork
Demographic
andsocial
changes
All ofthe above
Interpretation:
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From the examination conducted on 20 managers of Unilever, Majority of the sample popula-
tion were opinion that evolvement of technology has largely impacted the consumer goods
producing multinational company Unilever. Rapid development in the internet has helped in
making it possible for the company to target large market around the world by the medium
of social media, online business & commerce platforms etc. Such an impact has broadened
the chances for increasing its number of customers, sales and its profitability.
Theme 3: Positive impact of globalisation on operations and functioning of a business organi-
sation
Particulars Respondents
Economies of scale 4
Increase in market share 6
Increase in Foreign direct investment 3
Technological Advancement 2
Increase in sales and profitability 2
Greater access to skilled personnel 3
0
1
2
3
4
5
6
Respondents
Economiesof
scale
Increase in
market share
Increase in
Foreigndirect
investment
Technological
Advancement
Increase insales
andprofitability
Greater accessto
skilledpersonnelInterpretation:
From the above chart and review conducted on 20 managers of Unilever, it was witnessed
that majority of the respondents thinks that Globalization provides significant benefit o the
company in the terms of increasing market share through which it can increased number of
its customer base, sales and profitability. Secondary research also supports this
Theme 4: Disadvantages of globalisation for a multinational company
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Particulars Respondents
Rapid reduction of terrified resources 9
Strong competition 4
inflation 4
Job uncertainty 2
All of the above 1
0
2
4
6
8
10
Respondents
Rapidreduction
ofterrified
resources
Strong
competition
inflation
Jobuncertainty
All ofthe above
Interpretation:
From the survey taken from 20 members of Unilever, it was originated that out that 9 were
of the opinion that the disadvantage of globalizations on operations and functioning of a
multinational company is the rapid reduction of resources of business. Increased globaliza-
tions has exhausted the excellence of natural environment. While 4 people said that exces-
sive globalizations has led to unnecessary damaging competition in the market which is also
supported by the literature review. 4 respondents were of the view that globalizations has
caused into rise in inflation because of the increased demand of goods while some said that
job insecurity is a drawback of global business environment.
Theme 5: Amount of business of the Unilever that belongs to global business
Particulars Respondents
10-20% 5
20-40% 7
40-60% 4
More than 60% 4
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0
1
2
3
4
5
6
7
Respondents
10-20%
20-40%
40-60%
More than60%
Interpretation:
From the graph and table above, it can be seen analysed that majority of the respondents in pri-
mary research trusts that 20-40% of company’s business takes place in the international mar-
ket. As enterprise majorly functions in the international level, it has to challenge numerous
risks and challenges that have been imposed due to globalisation. The same is also supported
by the secondary research. (Steger,S 2017).
LO 3
. Research Outcomes & Recommendations:
Recommendation:
All the challenges and risks of globalisation could be overwhelmed by the business by
articulating effective strategies. For managing up with the quick changes in client preferences,
company should comprehend wants and expectations of target customers so that it can produce
products which meets the necessities of its target audience (Meyer, 2017) Another proposal to
Unilever is that it needs to shift its focus on manufacture its products in highly different from its
competitors for surviving in competitive marketplace it would also help in drawing and retaining
its target customers. Managing the macro level risks can be diminished thorough market research
in context to the condition of the planned international markets where the business needs to be
expand its operations. This would assistance in emerging more operative strategies for risk such
as cultural and demographic risks, political risks etc.
Reflection
From the present study, I have learned how to frame questions that are to be analysed in
the research. Accompanying research on measuring the benefits and drawbacks of globalisation
has helped me in knowing useful visions regarding how Unilever is pretentious by idea of glob-
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alisation. I have learnt that how to apply various research methodologies, how to collect data
and the way of interpreting them. Time and money were two limits that restricted me from gath-
ering data from large population. The data collected was qualitative data. Although qualitative
data, quantitative data could also be collected that would helped in providing the consequence of
impact of globalisation in numerical terms.
CONCLUSION
From the above study, it can be concluded that globalisation means addition of global
economies. There are numerous factors of globalizations that have significantly pretentious the
business of Unilever such as progression in technology, better and efficient communication, so-
cial and demographic changes etc. Global trade chance is one of the chief outcomes of globalisa-
tion that has enabled business organisation to feast their operations and funtioning in each part of
world deprived of much problems and challenges.
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