Research Project: Globalisation Impact on Multinational Corp. H&M

This research project investigates the impact of globalization on the corporate structure of H&M, a multinational retailer. The study examines the concept of globalization, its influence on corporate structures, and the challenges faced by H&M during global expansion. The report delves into the rationale, aims, and objectives of the research, including the identification of major challenges and the determination of globalization's impact on H&M's structure. The methodology includes a positivist research philosophy and a qualitative approach, with data collected through questionnaires and secondary sources. The analysis focuses on interpreting the collected data to draw conclusions and suggest recommendations. The study concludes with reflections on the research process and suggestions for alternative research methods. The report also covers literature review, data analysis and interpretation, research outcomes, and a conclusion.

RESEARCH
PROJECT

Table of Contents
TOPIC:- ...........................................................................................................................................1
CHAPTER 1: INTRODUCTION ...................................................................................................1
Overview................................................................................................................................1
Background.............................................................................................................................1
Rationale.................................................................................................................................2
Aims.......................................................................................................................................2
Research Objectives: .............................................................................................................2
Research Questions: ..............................................................................................................2
CHAPTER 2: LITERATURE REVIEW.........................................................................................2
The concept of Globalisation..................................................................................................2
The major challenges faced by H&M while global expansion..............................................3
The influence of globalisation over corporate structure of H&M .........................................4
CHAPTER 3: RESEARCH METHODOLOGY.............................................................................4
CHAPTER 4: DATA ANALYSIS AND INTERPRETATIONS (1500)........................................6
CHAPTER 5: RESEARCH OUTCOMES....................................................................................17
Covered in PPT.....................................................................................................................17
CHAPTER 6: REFLECTION & RECOMMENDATION FOR ALTERNATIVE RESEARCH
METHODOLOGY........................................................................................................................17
Reflection.............................................................................................................................17
Recommendations................................................................................................................17
Alternative research method.................................................................................................18
CHAPTER 7: CONCLUSION......................................................................................................18
REFERENCES..............................................................................................................................19

TOPIC:-
“To identify the impact of globalisation over corporate structure of multinational organisation
and major challenges faced by them.” A study on H&M.
CHAPTER 1: INTRODUCTION
Overview
Globalisation is refers to the process of integration among business, people and
government throughout the world. In another words it can be said that globalisation leads to
integration of markets that help in smoothing up flow of trade and interconnect the economies.
Globalisation plays a crucial role within the growth and development of a company as it provide
a medium through which a business can target larger number of customer, be able to approach
untapped market which contribute toward improving its brand image at market place (McCann
and Acs, 2015). But apart from all this globalisation also have an influence over corporate
structure of an organisation as by expansion of business operations and manner in which they
operates get changed. Hence, it become very essential for an organisation to manage its corporate
structure much effectively by maintaining proper coordination among each department so that it
become easier to deal with challenges at global market with mutual efforts of various
department. In order to investigate this H&M organisation is consider which is a multinational
retailer that is headquartered in United Kingdom.
Background
Corporate structure is refers to the organisation of several different departments or
business unit in order to align the efforts of employees toward accomplishment of organisational
goals and objectives (Sethi, 2016). But their mutual efforts get disturbed while expanding
business internationally, hence it is very crucial for an organisation to maintain collaboration
among them in order to achieve corporate goals and objectives. For investigating the impact of
globalisation over corporate structure of multinational organisation and challenges that a
company have to face H&M is considered. It is a multinational retailer which operates a chain of
store throughout the world in order to offer fast-fashion clothings for women, men, teenager and
children. It is second larger clothing retailer in world and operates in more then 62 countries.
Hence to maintain its market position it is very essential for company to maintain its corporate
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structure effectively that support in dealing with challenges at global level (Monshipouri, Welch
and Kennedy, 2017).
Rationale
The main reason behind conducting this investigation is to determine several challenges
that an organisation has to face while expanding its business at global level. By performing
investigation researcher would be able to enhance knowledge in term of globalisation and
changes it bring within the corporate structure. In addition to this, the scope of research is very
broad as it can be used for academical purpose that help in students to learn about the manner in
which an organisation enter into global market by considering the experience of H&M.
Aims
“To identify the impact of globalisation over corporate structure of multinational
organisation and major challenges faced by them.” A study on H&M.
Research Objectives:
 To learn about the concept of Globalisation.
 To identify the major challenges faced by H&M while global expansion.
 To determine the influence of globalisation over corporate structure of H&M
Research Questions:
 Describe the concept of Globalisation ?
 What are the major challenges faced by H&M during the time of global expansion ?
 What are the influences of globalisation on the corporate structure of H&M ?
CHAPTER 2: LITERATURE REVIEW
The concept of Globalisation
According to the view point of Didem Buhari Gulmez, 2017 globalisation is the process
through which technology, product and services are spread all over the world for the purpose of
expansion of business. There is improvement in economic, financial and trade policies of
different companies. There is difference in working style of organisation at national land
international level. Hence there is integration of different resources such as financial bodies,
individuals, groups and governmental bodies. With working at international level, mangers of
H&M is able to expands consumer base but there is requirement of having knowledge about
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changes which are taking place in external market. There is free movement of products and
services from one place to another considering different working policies. In order to access
knowledge about globalisation, there is requirement of managers of H&M have to analyse which
market have scope for growth and then policies has to be farmed to implement it.
With working at international level, managers of H&M is able to achieve economies of
scale with analysing production cost. Production cost can be reduced with analysing labour cost
and cost of raw material. When consumer have more demand for product and services then
production increase and it assist in reducing overall production cost. When cost of raw material
and production is less, then managers of H&M provides it to consumers at cheap rate
(Bachmann, and Pereira, 2014). This is fruitful for growth and development of association. With
globalisation of H&M company will be able to operate its business in more than one country but
there are different aspects which gets negatively influence over its growth. This may include
legal barriers, difference in preference of customers, language barrier, cultural barriers etc. that
may influence the performance of company to larger extend.
The major challenges faced by H&M while global expansion
According to Olimpia and Stela, (2017), In the world of fashion marketing where
shopping is fast moving online, H&M is going in a downfall position day by day. They are
thinking about the expanding their business but because of various challenges they have to face
various difficulties. These challenges related to the high level of competition, changing
consumers demand, different tax structures, different rules and and so on. These challenges
create a big issue for them to expand their business in other countries.
As H&M want to expand their business but because of their rivals like Zara, Gap, M&S
and many more, they have to change their marketing strategies to beat their competitors. In the
world of online transactions they have to launch their own app from where they can attract
consumers from all over the world. They have to considered all the rules and regulation of others
countries if they want to prevent themselves from any disputes and want to sustain for a long
period of time (Scott, 2015). Moreover, if they want to compete their competitors at international
level then they should evaluate their consumers behaviour, choices, and pricing preference in
their production process so it will help them to meet from all the consumers demand and
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expectations. It will help them to increase their market value, productivity and profitability
which results sustainability in the intentional market for a longer period of time.
The influence of globalisation over corporate structure of H&M
According to Tan and Goh, (2014), Corporate management of H&M is based in the
Stockholm from which different departments of them managed and organised their work. It
includes designing of products, advertising and marketing, finance and accounts etc. through
which they complete their work with efficiency and effectiveness.
H&M is operating their business at global level which determines that structure plays an
crucial role for the globalisation or developing of them. They are operating their business in
different countries so specifically for each country office is responsible to manage and complete
the activities of different departments. Approximately in 16 countries H&M is successfully
operating their business due to 16 different departments of production are responsible to provide
and deliver their products among 700 independent supplier that works for the H&M. In present
market conditions all the organisation and industry are performing their operations at global level
(Weeks, 2017). Therefore H&M also expands their business at global level due to which they
also open their production in Europe, Asia and Africa because it helps them to manufacture their
at low prices. Along with this it also helps them to deliver their products with in minimum time
period as it assist towards the local growth of the company. H&M operates their business in 37
different countries which helps them to increase their market share and the number of customers
that increases their revenue as well as profits also. Further the other benefits is that it helps them
to recruit effective employees at cheap rates, Like in developing countries employees work with
more efficiency because of high income and low employment rate.
CHAPTER 3: RESEARCH METHODOLOGY
Research methodology is the process is used to determine, collect and analysis information. In a
research the methodology show the overall dependability and validity of study (Kennelly, 2019).
The methodology includes survey, publications, interviews and more techniques that are used to
gather both historical and present data. Some tools and techniques are as follows:
Research philosophy:- Research philosophy is very important part of research
methodology and a phenomenon by which data is gathered, analysis, and used. Some of the
philosophies are positivist,pragmatist etc. In this project research positivist philosophy is used.
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Positivist is very helpful in understanding different features that will help in proper decision
making of research.
Research approach:- It is systematic plan and process that includes particular steps of
assumption to detailed method of data collection, analysis and interpretation (Quinlan, Babin,
Carr and Griffin, 2019). There are two method of research approach that are inductive and
deductive. In particular research inductive research is used because this is supported qualitative
method. Inductive research cover every small and big aspects related to the research topic.
Research method:- research methods are the plan, process and techniques that is used to
collect data for analysis and find out new information. There are two different type of research
method that are used as a tool of data collection (Taylor, Bogdan and DeVault, 2015). It
includes qualitative and quantitative method. In this investigation qualitative method is used
because it provide degree of knowledge about performance appraisal also provide more depth
and qualitative knowledge about the topic and project that will help in research.
Source of data :- the medium from which data is collecting to conduct particular
research more effectively and effectively. There are two sources of data collection that are
primary and secondary (Walliman, 2017). In this investigation both the source of data collection
are used. In primary researcher collect information through questionnaire and in secondary
relevant information is collected from the existence data presented in books, research papers, etc.
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CHAPTER 4: DATA ANALYSIS AND INTERPRETATIONS
It refer to most essential part of a research which focuses toward proper analysis and
evaluation of data that is gathered from investigation in order to extract appropriate conclusion
from the findings. In addition to this it also support in determining the main cause behind a
particular issues so that measures to overcome can be recommended (Kumar, 2019). For
performing this investigation questionnaire is used and data through this will be evaluated and
interpreted using thematic approach.
Questionnaire
Q1 Are you aware about the concept of globalization?
a) Yes
b) No
Q2 As per your view point does global expansion support in growth and success of an
organization?
a) Yes
b) No
Q3 What impact does global expansion have over the corporate structure of H&M ?
a) Positive
b) Negative
Q4 Which factors affect corporate structure of H&M at international level?
a) Change in consumer demand
b) Technological up-gradation
c) Personal goal of employees
Q5 Is effective corporate structure beneficial for success and growth of H&M at international
level?
a) Yes
b) No
Q5 What kind of benefits does H&M get after globalizing its operations?
a) Larger customer base
b) Access to advancement
c) Foreign investment opportunity
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Q6 What are the major challenges that H&M has faced while globalizing its operations?
a) Foreign laws & regulations
b) Cultural and communication differences
c) Trade barriers
Q7 Which of the following departments of H&M majorly get affected with working at
international level?
a) Human resources
b) Operational unit
c) Marketing department
Q8 Which level of management in H&M is responsible for corporate structuring at global level?
a) Top level
b) Middle level
c) Lower level
Q9 Recommend the ways through which H&M be able to deals with challenges at global level?
Data interpretation
Theme 1: The concept of globalization
Q1 Are you aware about the concept of
globalization?
Frequency
a) Yes 40
b) No 10
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Interpretation:- As per the above mentioned information it has been found that 40 out of
50 respondents are aware about the concept of globalization and manner in which it contribute
toward enhancing the market share of an organization. Despite of this 10 out of 50 respondents
said that they don't have any idea regarding the concept of globalization and manner in which it
is used by an organization.
Theme 2: Global expansion support in growth and success of an organization
Q2 As per your view point does global
expansion support in growth and success of
an organization?
Frequency
a) Yes 30
b) No 20
8
a) Yes b) No
0
5
10
15
20
25
30
35
40
40
10

Interpretation:-according to the information which is provided above it has been found
that 30 out of 50 respondents believe that globalization of business operations support a company
to achieve growth as well as success at marketplace. This is because it help in creating brand
awareness and also build up new market to target from particular product or services. Despite of
all this 20 out of 50 respondents are not agree that global expansion contribute toward
organizational success and growth as new market brings up several challenges such as higher
competition, new market demand which all influence the performance of company at
marketplace.
Theme 3: Impact that global expansion have over corporate structure of H&M
Q3 What impact does global expansion have
over the corporate structure of H&M ?
Frequency
a) Positive 30
b) Negative 20
9
a) Yes b) No
0
5
10
15
20
25
30
30
20

Interpretation:- According to the information presented above from the investigation it
has been found that 30 out of 50 respondents believes that global expansion will bring positive
impact over the corporate structure of and organization. This is because global expansion support
in improving business structure of H&M by providing an opportunity to integrate knowledge of
employees belongs to different culture. But on the other hand 20 respondents said that global
expansion sometimes have negative influence over the corporate structure as expansion
sometimes create communication barrier which in turn affect the understanding of employees
regarding their roles and responsibilities.
Theme 4: Factors affect corporate structure of H&M at international level
Q4 Which factors affect corporate structure
of H&M at international level?
Frequency
10
a) Positive b) Negative
0
5
10
15
20
25
30
30
20