The Role of Globalisation in Driving H&M's Business Success

This research project investigates the impact of globalisation on the business success of H&M, a Swedish multinational clothing retailer. The project includes an introduction defining globalisation and its role in business, particularly for H&M. Task 1 focuses on the research proposal, defining the research question, hypothesis, and literature review. The literature review covers the concept of globalisation, its role in H&M's success, and its positive and negative impacts. Task 2 outlines the research methods, including the use of Saunders' research onion to identify the best approach. The project emphasizes a qualitative research approach using an inductive approach, focusing on interpretivism. The project aims to understand the impact of globalisation on H&M's business, the research questions include the concept and role of globalisation, its positive and negative effects, and how H&M can overcome negative impacts. The project also includes a discussion of research philosophies, approaches, and choices, alongside a Gantt chart for time management.

Research Project

Table of Contents
TITLE: ............................................................................................................................................1
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1) Research proposal which clearly define question and hypothesis with literature review. . .1
P2) Research methods and approaches to primary and secondary research...............................4
REFERENCES................................................................................................................................7
TASK 2 ...........................................................................................................................................8
P3) Conduct primary and secondary research by using appropriate methods and techniques. . .8
P4) Apply appropriate analytical tools, analyse research findings and data...............................8
TASK 3..........................................................................................................................................11
P5) Communicate research outcomes in an appropriate manner for the intended audience.....11
TASK 4..........................................................................................................................................20
P6) Reflection on the effectiveness of research methods and techniques.................................20
P7) Determine alternative research methodologies for the project...........................................21
REFERENCES .............................................................................................................................22
APPENDIX ...................................................................................................................................23
.......................................................................................................................................................34

TITLE:
“To investigate the role of globalisation in driving business success of an organisation”.
A study on H&M.
INTRODUCTION
Globalization refers as the spread of technology, information, goods and jobs crossways
national borders and cultures. It is an effective process of integration and interaction between
companies, governments and people across the world (Chanzu and Gekara, 2014). For this
project, chosen multinational organization is H&M which is a Swedish multinational clothing
retailer. It was founded in 1947 by Erling Persson and headquartered in Stockholm, Sweden.
Company mainly specialise in marketing and selling of clothing for women, men, children and
teenagers. Later company started boosting its product via advertisements in order to spread out
and position its business reputation in other countries. It introduces as a step of nationalising
which will help an organisation by providing several growth opportunities to H&M i.e.
enlargement of business activities and approaching huge number of clients. Via selling product at
global level, the demand of its clothing products gets enhanced and as an output of firm get
recognized by people throughout the globe which outputs in bigger organisational success.
TASK 1
P1) Research proposal which clearly define question and hypothesis with literature review.
Overview of the research: This research is based on analysing impact of globalisation in
driving business success of an organisation. Therefore, globalisation introduces about the
effective process via which the nation as well as regional economies, societies and culture have
become incorporated by keeping a network of communication, immigration, trade etc. at
international level (Eriksen, 2014). Globalisation is essential concept for an organisation because
it has removed the domestic boundaries and emphasis over boosting a view that data,
possibilities as well as knowledge must be localized and divided among people. Thus, it is a
major element of globalisation also play important role in enhancing the product as well as
services quality offered by organisations and develop competitive environment which promote
enterprise to bring innovation for fulfilling customer's needs and wants easily. Hence,
globalisation also drive to business success and growth as by operating business operations at
global level, organisations will be capable to improve their work quality via integration of
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knowledge, resources, people and skill. This output into much more satisfactory facility to client
and enlargement of which in various geographical area that drives to higher profitability and
success of company.
Rationale of the research: Main reason behind selecting this topic is to analysis the
impact of globalisation in driving business success of H&M. It is a multinational organisation
which will support a society within a country by providing job opportunities to them (ERTÜRK,
2015). Main purpose for research question is to identify effect of globalisation in driving growth
and success of an organisation at international level. These days, there is instability in growth
and success of United Kingdom society, so with the support of this investigation policies and
strategies can be designed which improve knowledge and understanding of reader. From
individual point of view of investigator, person have interest in retail industry, so if in future
prospect needs to invest in retail enterprise, then it is easy for them. As there is trend of retail
industry, so such topic is more interesting and it is easy to accumulate information from
respondents. Thus, it is a biggest topic which will help an investigator in personal as well as
professional manner. In personal way, with the help of this topic, researcher is able to enhance
their literature review skill, data analysis and data interpretation skill easily. This topic will also
support a researcher in professional way by improving its knowledge criteria in specific field of
study.
Resources: There is need of few resources to perform each activities of research in
systematic manner. This resources mainly related with financial assistance, newspapers,
magazines, internet connect, computer system and so on. With these research information can be
gathered properly as well as stored in authentic or reliable way. There are various kind of
resources which will be applied by an investigator to complete project in more effective and
accurate way. For this, communication, cost, time etc. are consider main resources which will
supports a researcher to successfully do each tasks of investigation.
Research Aim:
Main aim of this research is “To investigate the role of globalisation in driving business
success of an organization”. A study on H&M.
Research Questions
 What are the concept of globalisation?
 What are the role of globalisation in driving business success of H&M?
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 What are the positive and negative impact of globalization on business success of an
organization? What are the different ways through which negative impact of globalisation can be
overcome by the H&M?
Research objectives:
 To study about the concept of globalisation.
 To analysis role of globalisation in driving business success of H&M.
 To identify positive and negative impact of globalisation on business success of an
organization. Recommend different ways through which negative impact of globalisation can be
overcome by the H&M.
Literature Review: In order to address above discussed all research objectives, literature review
considers one of the best section of research (Gansler, Lucyshyn and Rigilano, 2013). Main
purpose of this section is to analysis gaps in previous research or studies. Thus, all research
objectives are determine under in detail manner:
Concept of globalisation in context of H&M
According to the ERTÜRK, (2015), Globalisation introduces as an essential and effective
process in which goods, people or ideas flows freely within nations. In addition, it is a
significant policy of government which is in favour of free flow and free trade of capital and
products, open borders, privatization of publicly-owned, elimination of tariffs and price control,
or controlled enterprises. Therefore, globalisation is a biggest concept which will support an
organisation to enlarge their business operations and drive success easily. It will also help an
organisation to increase customer base base and also enhance their goodwill in marketplace.
H&M is a Swedish clothing retailer which was founded in 1947. Company has around
4000 shops in all over the globe and has plan for approximately 7000 to 8000 more shops in the
future (H&M: The Secret to its Success, 2019). Company is rapidly approaching the level of
proliferation that is large rival index. H&M crossed 1,100 crore in sales, 3 years after entering₹
the Indian market. Along with this, company doesn’t have the global issue of a larger stock in
India, says H&M India’s country manager. H&M crossed 1,100 crore in sales, three years after₹
entering the Indian market. Apart from this, net revenue of H&M is US$12,652 billion.
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H&M doesn’t have the global problem of a bigger stock in India, says H&M India’s country
manager.
Illustration 1: Total number of H&M stores worldwide
(Source: Total number of H&M stores worldwide, 2017)
With its extensive business network, H&M has become one of the leading fashion retailer
in all over the world. Company had a total of 3924 shops by the end of 2015, enlarging its
international reach to sixty one nations across 6 continents including e-commerce in twenty three
of them (H&M Locations Worldwide, 2008-2016). Last year H&M added 16,000 workers to its
roster of designers, buyers and other employees, pattern markets, maximising the total number of
companies employees to 148000.
Role of globalisation in driving business success of H&M - Oxford Street.
According to the According to Eriksen, (2014), Globalization play important and
effective role in driving business growth and success systematically. It leads to maximised
competition which can be related to service and product and cost and price, technological
adaptation, target market, quick production and quick response by organisations etc. When an
enterprise produces with less cost as well as sells cheaper, it is capable to maximise its market
share. There are different roles of globalisation such as it will help an organisation in increasing
in customer market share, lowering the costs of customer services and lowering the costs of
production. Therefore, It globalisation an access to bigger market where H&M experience high
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demand about their clothing product which help an organisation in accomplishing maximum
profit. This further assist H&M in accomplishing economies of scale that dive to reduction of
average production cost.
Positive and negative impact of globalisation on business success of an organization.
According to the Hitesh Bhasin, 2019, There are different positive and negative impact of
globalisation that highly impact on business success and growth. Globalisation is simply the
effective process via which interaction and integration of people and companies across the globe.
Positive impact of globalisation: Globalisation is a huge concept that help H&M to
promote their clothing products across the globe. It will help an enterprise by Increasing
productivity, Promoting business in vast area and improving communication access. All these are
major impact which will support an organisation to maintain their reputation at global level.
Negative impact of globalisation: There are different drawbacks of globalisation such as
Maintaining brand reputation, Governments rules and regulation, Anticipating changing
demands of customers etc. All these are negative effect on brand reputation and image of
company.
Different ways through which negative impact of globalisation can be overcome by the H&M
According to the Martin. 2019, there are different ways through which negative impact of
globalisation can be overcome by an organisation in systematically. Company should Develop
new technology which will help them in overcoming risk of changing demands of customers
easily. Another main recommendation to an enterprise as they should hire knowledge human
resource which will assist them in maintaining better reputation in marketplace. Along with this,
proper study about the rules and regulations of country will also essential for H&M to achieve
better results within given time duration. One of major risk that is commonly faced by H&M
while entering into new country at international level is rivalry from local enterprise as well as
existing global players. In order to overcome such issue company must try to maintain a strong
relation with national trader for entering in new marketplace and accomplishing sustainability.
P2) Research methods and approaches to primary and secondary research
For this, Saunders's research onion is consider useful framework used by investigator to
identify best approach of research (Intriligator, 2017). This framework has different layers which
are shown as under:
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Illustration 2: Saunders's research onion framework
(Source: Saunders's research onion, 2018)
Research philosophy: There are mainly two types of researcher philosophy which is
interpretivism and positivism. According to the topic, interpretivisim philosophy will be applied
by H&M because it assist in evaluating data or information effectively. On the other side, there is
positivism philosophy which will not appropriate for carrying out research activity in effective a
systematic manner.
Research Approach: Inductive and deductive are consider best approach of research
which is applied by researcher for collecting quality and in-depth information about the study.
According to the topic, H&M need to use inductive approach because it is more suitable and
help an investigator to gather proper information about the topic and gain better outcomes for
further research.
Research Choice: There are basically two types of research which is qualitative and
quantitative. (Savrul, Incekara and Sener, 2014). Both type of research are essential but
according to the study, qualitative research is more suitable and valuable because it will help an
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investigator to identify accurate response from selected respondents. On the other side,
quantitative research is not much useful according to the study because it requires data in form of
hard facts.
Time Horizon: Gantt chart introduces as an effective graphical presentation tool which
will be used in this layer. As it will assist H&M to complete each activity of research within
given time duration. Along with this, with the use of Gantt Chart, H&M can easily identify
starting and ending time period for completion of research.
Research design: There are mainly three types of research design, including, descriptive,
exploratory, and experimental (Scheyvens and Russell, 2012). All these are essential but
according to the topic, H&M require to use descriptive design because it is suitable and supports
to portray a proper profile of person, situations and events. It allows for accurate and in-depth
evaluation of elements and variables of the population. On the other side, remaining research
design is not much useful for this project because it take more time of H&M.
Sources of data: Primary and secondary are consider two types of data sources. For
accumulating primary data, questionnaire will be applied whereas for gathering secondary
information, magazines, books etc. sources will be used for this research. As both type of data
collection sources will be applied and these will help H&M by providing reliable and appropriate
information about the impact of globalisation.
Data collection techniques: There are different types of data collection techniques,
including, interview, observation, questionnaire etc. All these are essential for researcher to
collect accurate information about the topic. According to the topic, questionnaire will be more
suitable for H&M because with the use of these, they can easily gather reliable and valid data
about the importance of globalisation.
Research sampling: Sampling techniques are divided into two, that is non-probability
and probability sampling method. (Chanzu and Gekara, 2014). According to the study,
probability sampling will be applied because it will support H&M by saving its time, money and
resources. Thus, with the help random sampling methods as a type of probability sampling, 60
respondents will be taken into consideration. On the other side, non-probability sampling is not
useful for H&M because it takes more fund of an enterprise.
Data presentation techniques: Appropriate, accurate and clear ways of presenting
information were selected out of the various modes of data presentation (ERTÜRK, 2015).
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Some ways of presenting data or information include pie charts, tables, line graphs and bar
charts. All these are essential ways used by researcher to present data, related to the topic.
Research Limitation: There are different limitation or issues faced by researcher while
formulating research aims and objectives, implementing data collection methods, creation of
sample size, lack of previous studies in the research area, scope of discussion and many other.
All these are major limitation which will impact on researcher while doing each activities of
research (Eriksen, 2014).
Research reliability and validity: Reliability and validity of research is mainly depend on
research instrument which is questionnaire. It is essential instrument which will help a researcher
to gather accurate and proper information about the topic.
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REFERENCES
Books and Journals
Chanzu, L. N. and Gekara, M., 2014. Effects of use of derivatives on financial performance of
companies listed in the Nairobi Security Exchange. International Journal of Academic
Research in Accounting, Finance and Management Sciences. 4(4). pp. 27-43.
Eriksen, T. H., 2014. Globalization: The key concepts. A&C Black.
ERTÜRK, E., 2015. A COMPREHENSIVE APPROACH TO THE ROLE OF INFORMATION
AND COMMUNICATION TECHNOLOGY (ICT) IN GLOBALIZATION. Journal of
International Social Research. 8(38).
Gansler, J. S., Lucyshyn, W. and Rigilano, J., 2013. The Impact of Globalization on the US
Defense Industrial Base (No. UMD-AM-13-101). MARYLAND UNIV COLLEGE
PARK CENTER FOR PUBLIC POLICY AND PRIVATE ENTERPRISE.
Intriligator, M., 2017. Globalisation of the World Economy: Potential Benefits and Costs and a
Net Assessment. In Economics of Globalisation (pp. 85-94). Routledge.
Savrul, M., Incekara, A. and Sener, S., 2014. The potential of e-commerce for SMEs in a
globalizing business environment. Procedia-Social and Behavioral Sciences. 150. pp.
35-45.
Scheyvens, R. and Russell, M., 2012. Tourism and poverty alleviation in Fiji: Comparing the
impacts of small-and large-scale tourism enterprises. Journal of Sustainable Tourism.
20(3). pp. 417-436.
Online
Martin. 2019. GLOBAL MARKETING STRATEGIES. [Online] Available
through<https://www.cleverism.com/global-marketing-strategies/>./
Hitesh Bhasin. 2019. What is globalization? What are the positives and negatives of
Globalization?. [Online] Available through<https://www.marketing91.com/what-is-
globalization/>./
H&M: The Secret to its Success. 2019. [Online] Available
through<https://www.investopedia.com/articles/investing/041216/hm-secret-its-
success.asp>./
H&M Locations Worldwide. 2008-2016. [Online] Available
through<https://knoema.com/psoqqgg/h-m-locations-worldwide-2008-2016>./
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