Multinational Companies and Their Impact on Host Economies: China

This report examines the influence of multinational companies (MNCs) on the business environment of host countries, with a specific focus on Unilever's operations in China. The research begins with an introduction to globalization and the role of MNCs, highlighting both the benefits and challenges they present. The report outlines the aims, objectives, and rationale for the study, including the research questions and a project management plan covering scope, cost, time, resources, communication, risk, and quality. A Gantt chart provides a timeline for the project. The methodology section details the research methods, including qualitative approaches, inductive reasoning, and interpretivism. Data collection methods, including primary and secondary sources, are described, as are data analysis techniques and ethical considerations. The report aims to identify the social, economic, and environmental impacts of Unilever on China's business environment, providing recommendations for effective operations. Data collection involves a survey of 35 departmental managers. The research uses a qualitative approach to understand the impact of MNCs.

MANAGING SUCCESSFUL
BUSINESS PROJECT

TABLE OF CONTENTS
TOPIC: ............................................................................................................................................2
INTRODUCTION...........................................................................................................................2
Research Background..................................................................................................................2
LO.1.................................................................................................................................................2
P.1 Aims and Objectives.............................................................................................................2
Rationale:....................................................................................................................................3
P.2 Project Management Plan.....................................................................................................3
P.3 Gantt Chart and Time Scale..................................................................................................5
LO.2.................................................................................................................................................5
P.4 Research Methodologies.......................................................................................................5
LO.3.................................................................................................................................................5
P.5 Data Analysis and Interpretation..........................................................................................5
DATA ANALYSIS..........................................................................................................................2
P.6 Recommendations.................................................................................................................9
LO.4.................................................................................................................................................9
Reflection....................................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
Books and Journals...................................................................................................................10
APPENDIX....................................................................................................................................11
Questionnaire............................................................................................................................11

TOPIC:
How multinational companies impact he business environment of the host destination e.g
a county, region, city?
INTRODUCTION
Research Background
Multinational companies are the agents of globalisation. At the same time, many
multinational corporations are also affected by globalisation in ways they may or may not like. It
is true that globalisation is the foundation of multinational organisations because when there
were no free trades and boundaries, there is no multinational corporations (Suwandi and Foster,
2016). The operations of company in more than one nation is called as multinational
organisation. There are various benefits that the business environment of host nation enjoys with
the emergence of global brands such as the balance of payment is improved, employment
generation, sources of tax revenue, technology transfer, increasing choice and many other
advantages. On the flip side, there are various challenges and complication that organisations are
facing with the emergence of multinational corporations such as environmental impact,
uncertainty, increase competition, political pressures and many others.
So, this present research will use methods and techniques to identify the significant
social, economic and environmental influence of multinational organisation on the host country
(China). Unilever has been chosen for assessment. It is a British-Dutch transnational consumer
goods located in United Kingdom. It has worldwide operations.
LO.1
P.1 Aims and Objectives.
Aim:
“To identify the significant social, economic and environmental influence of
multinational organisation on the business environment of host country (China). A study on
Unilever”.
Objectives:
 To identify the current trends of globalisation in context of the operation of multinational
organisation.
1

 To determine the impact of multinational company on the business environment of host
nation.
 To articulate the complications faced by host nation with the emergence of multinational
companies.
 To provide recommendations for effective operations of multinational companies by
overcoming negative impact on the business environment of host nation.
Research Questions:
11 What are the current trends of globalisation in context of the operation of multinational
organisation?11 What are the impact of multinational company on the business environment of host
nation?11 What are the complications faced by host nation with the emergence of multinational
companies?11 What are recommendations for effective operations of multinational companies by
overcoming negative impact on the business environment of host nation?
Rationale:
The present study is related to the assessment of the impact of multinational companies
on the business environment of host nation. The reason behind selecting this topic is the business
environment of host nation is influenced with the emergence of MNC's within organisation in
both positive and negative way. MNC's has influenced social, environment and economic
conditions. It is very important to understand and evaluate both positive and negative impact of
MNC's on the domestic business environment (May, 2015). On the flip side, academic interest of
research is another reason for selecting this topic as this research help scholar in gaining
information about the current issues in the business world as well as various components of
research such as research methodologies, structure of research etc.
P.2 Project Management Plan
The statement or document that lay out each stage of a project or research is called as
project management plan (Nijhuis, Vrijhoef and Kessels, 2018). With the help of project
2

management plan, it becomes crystal clear that how the project will be completed to achieved the
specific objectives of the study.
Scope:
The range of usage of the research study is called as scope. The following research covers
the both corporate and academic lives. Students will gain understanding of globalisation in
respect to multinational companies and how it impacts on the business environment of host
nation. Whereas, the managers, executives of Unilever will get understanding and knowledge
about the negative impact of their operation to host nation and take necessary action's to
overcome them.
Cost:
It is describes as the total amount of expenses that is incurred for conducting the whole
research is called as cost. It is very important that scholar should have to take rationale decisions
on cost of study (Muller, 2017). It is true that if cost is not available it will affect the
effectiveness and outcomes of the research so researcher has decided to allocate the cost to all
the activities. The required cost of the research is £8000.
Time:
Time management skill is essentially required in researcher because completing the
project on time demonstrates the effectiveness of the study. If there are delays in the project it
will affect the effectiveness and outcomes of the study. So, the following research will be
completed in 169 days.
Resources:
For undertaking the research, researcher required time, man, money, equipments which
are required are called as resources. If resources are available adequately, it will allow smooth
flow of all the activities (Maylor and Söderlund, 2016). This following research availed human
and financial resources to execute the research study in a designated manner.
Communication:
The movement or exchange of information from one person to another person is called as
communication. It is very important to communicate each and every aspect of the research to all
3

the stakeholders who are directly or indirectly have interest in the outcomes of the study. In this
following research, researcher has opted email and circulars to communicate the research
outcomes.
Risk:
Risk are always uncertain as they have chances to cause harm or loss. There are various
type of risk that is involved in this study such as loss or theft of data, physical injury or any
others. Thus, in order to mitigate the chances of risk, researcher has planned to control the risk
factors.
Quality:
The entire research is depends ion the reliability and viability of the research which is
ultimately depends on quality. Scholar has given first priority to quality, it is because research
have no use if quality is not maintained (Cameron, Sankaran and Scales, 2015). Researcher has
opted several; tools and instrument for monitoring the performance and quality such as key
performance indicators (KPI's), gap analysis and others.
P.3 Gantt Chart and Time Scale.
4

Task Name Duration Start Finish Predecessors
Task Name 1 day Tue 6/4/19 Tue 6/4/19
Research proposal 1 day Tue 6/4/19 Tue 6/4/19
Aims and objectives 5 days Wed 6/5/19 Tue 6/11/19 1
Research methodologies 20 days Tue 6/25/19 Mon 7/22/19 2
Data collection 14 days Wed 6/12/19 Mon 7/1/19 2,3
Data analysis 13 days Wed 6/12/19 Fri 6/28/19 3
Data interpretation 11 days Tue 7/23/19 Tue 8/6/19 3,4
Finding and conclusion 15 days Tue 7/2/19 Mon 7/22/19 5
Recommendations 6 days Mon 7/1/19 Mon 7/8/19 6
Conclusion and Submission 1 day Wed 8/7/19 Wed 8/7/19 6,7
5

LO.2
P.4 Research Methodologies
Research methods- these are the organized and systematized way through which the research
can be completed with achievement of aims and objectives. These are the different methods
which are applied for the completion of research successfully (Clandinin, Cave and Berendonk,
2017). For completion of research successfully there are two methods that is quantitative and
6

qualitative methods. The qualitative research is type of research which is used to understand the
underlying reason of whole research without using figures and numbers. In contrast, quantitative
research method are systematic investigation of research using facts and figures. In this research,
the researcher use qualitative method in order to understand the research topic.
Research approach- the research approach is defined as the steps or the assumption
which researcher takes and follows while doing the research. The research approach are of two
types that is inductive and deductive. The deductive research approach is a type used when the
research is carried out by using pre established and existing theories and concepts and develop
hypothesis based on those concepts. On other hand, inductive approach is a type of approach
which aim is to develop a new theory or concept in order to complete the research. Here the
researcher uses inductive approach because it wants to develop a new concept.
Research philosophies- the research philosophies are defined as the thoughts or beliefs
that the researcher uses in order to collect, analyse and evaluate data. There are majorly two type
of research philosophy that is interpretivism and positivism. Out of two, interpretivism is a
philosophy through which researcher gains complete knowledge of the research topic. In
contrast, positivism is a type of philosophy uses more of quantitative methods like structured
questionnaires, officials data and statistics and many other methods. The research philosophy
used by researcher is interpretivism.
Research design- these are different types of methods or process or procedures which the
researcher uses in collecting and analysing and evaluating the data in order to reach to a
conclusion for research (Pollefeyt and Bouwens, 2014). The research design used by researcher
are of two types which are descriptive and exploratory research design. The exploratory research
design is used when the problem is not clearly defined. As the name suggest explore means to
conduct an in depth study of the research aim. The descriptive research design is a type of design
which describes the characteristics and nature of population which is being studied.
Sampling- it is defined as the system through which some part from the population is
selected and studied in order to find conclusions of research. The population is very large and it
cannot be studied for achieving the aims and objectives of research. So for this researcher choose
some samples from whole population and then studies those samples and draws conclusion from
them. The researcher can use two type of sampling that is probabilistic and non- probabilistic
7

sampling. The probability sampling is a type wherein every part of population have equal chance
of participating in research. On other side non- probabilistic sampling is a method wherein the
samples are selected on random basis. The sample used here is 35 departmental managers.
Data collection- it is defined as collecting data which is relevant for conducting research
and achieving aims and objectives of the research. The data can be collected from two different
sources that is primary source of secondary source (Carlsson and Walden, 2015). The primary
data also known as first-hand data is referred to as the data collected directly from the participant
or the respondent on which research is being conducted. On the other side, secondary sources
refers to as information collected from such sources which have already been use before for
some other research of reason.
In this research, the researcher uses both the primary and secondary sources for collecting
the useful data which helps in attainment of aim and objective of research.
Data analysis- in this step the collected and gathered data is analysed and evaluated to
reach to some conclusions. It describes the way in which the data will be analysed and monitored
and concluded which results in attainment of research aim. The data collected can be analysed in
two ways that is qualitative data analysis and quantitative data analysis. The qualitative analysis
refers to as type of analysis where the facts and figures are not involved rather attributes and
reasons are analysed. On the other hand, quantitative data analysis refers to transformation of the
raw data collected into some meaningful data so that some conclusions can be drawn from those
collected data. Here the researcher uses qualitative data analysis to draw some conclusions from
the collected data (Fellows, Fellows and Liu, 2015).
Ethical consideration- these are certain specific criteria which the researcher must keep
in mind while doing the research. These are some rules or principles which the researcher must
keep in mind before conducting the research. The first and foremost ethical consideration which
the researcher must keep in mind is that the data collected by him must be form authentic sources
(Burr, King and Butt, 2014). In case of primary data collection the respondent must first be asked
that they have any problem in sharing data or not.
LO.3
P.5 Data Analysis and Interpretation
8

DATA ANALYSIS
(Questionnaire enclosed in Appendix )
Theme 1 : Respondents' working years in Unilever
Particulars Respondents
0-2 years 6
2-5 years 8
5-10 years 12
More than 10 years 9
Interpretation:
From the survey which was conducted on 35 departmental managers of Unilever, it can
be observed that majority of the respondents from the sample population are working in the
0-2 years
2-5 years
5-10 years
More than 10 years
0
2
4
6
8
10
12
Respondents

company for 5-10 years. This means that they experienced and possess the knowledge of every
bit of the organization's operations. While 9 people are working in the company for more than 10
years and 6 & 8 managers are there in the organization for 0-2 years & 2-5 years respectively.

Theme 2 : Yes, Globalization has provided business opportunities to Unilever
Particulars Respondents
Yes 19
No 10
May be 6
Interpretation:
From the above table graph and table, it can be said that 19 respondents out of 35
departmental managers of Unilever were of the opinion that globalization has provided abundant
business opportunities to the company and it is because of the globalization that company has
been able to expand its operations in major emerging economies of the world. The same is also
supported by the secondary sources. However, 10 people said that they believe that more than
the advantages, globalization has posed some serious challenges and threat to the company in the
global market. They said that increased globalization has made it difficult for them to handle the
pressure of the competition from other international brands in the industry. While 6 of the
Yes
No
May be
0 2 4 6 8 10 12 14 16 18 20
Respondents

respondents were of view that they believe that globalization has of course benefited the
organisation but it has also threw certain challenges.
Theme 3 : Benefits of market globalization on Unilever
Particulars Respondents
Reduction in marketing costs 10
New market opportunities 9
Diversification of risks 4
Access to lower cost workers 6
Economies of scale 6

Interpretation :
From the survey conducted on 35 departmental managers of Unilever, it can be found out
that 10 respondents told that market globalization has helped the multinational companies like
Unilever in reducing their marketing costs. As per the secondary sources also, multinational
company Unilever has been able to reduce its marketing cost significantly. This led the company
in reducing their overall operational costs which directly reflected in their low costs products.
The altogether effect of such cost reduction is in there increased profitability and enhanced
customer base.
9 managers said that they feel new market opportunities were facilitated by the market
globalization as company found its way into world's emerging economies through it was able to
increase its number of customers and sales. 4 said that diversification of business risks is the
major benefit of globalization. They believed that diversification has led to try more innovations
in their processes and products. 6 people said that economies of scale benefited the company
while other 6 said access to lower cost workers helped the company magnificently.
Theme 4 : impact of Unilever have on China's economy
Particulars Respondents
Higher foreign direct investment 6
Creation of employment 7
Source of tax revenue 6
Transfer of technologies 8
All the above 8

Interpretation :
It can be observed from the above survey conducted on 35 departmental managers of
Unilever that China's economy has benefited from the multinational organizations in the country.
8 respondents said that technologies transfer is the major advantage to the host country's
economy. 7 managers stipulated that multinational organisations has created great employment
opportunities which has helped the country in meeting its macro objective and the same is
supported by the secondary sources. 6 respondents were of the view that global business
organisations has benefited the economy of host country in the form of tax revenues. Income
arising from the host country is liable to country's business taxation and this is a source of
revenue for the government of the country through which their treasury becomes more
financially sound. 6 people said that foreign direct investment (FDI) was the major benefit to the
economy of China through which the economic development of the nation triggered. 8 of the
respondents said that all FDIs, employment creation, technology and tax revenues are all the
advantages which the multinational companies has and is providing to China.
Theme 5 : Major challenges faced by China due to increased number of multinational
organizations in the country
Particulars Respondents
Over-exploitation of labour 8
Higher foreign direct investment
Creation of employment
Source of tax revenue
Transfer of technologies
All the above
0 1 2 3 4 5 6 7 8
Respondents

Negative impact on domestic producers 9
Income inequality 6
Homogenizing the cultural and social
diversities
4
Over exploitation of natural resources 8
Interpretation:
From the survey conducted on 35 departmental managers, it can be seen that 9
respondents said that multinational organization in the host country has somehow negatively
impacted the domestic producers of the country. It is also evident from the secondary sources
that because of the latest technology and more funds, multinational companies are able to
produce and sell the goods at the most reasonable prices which is difficult for the domestic and
local producers to match. The revenues and livelihood has been seriously hampered by this
intense competition. 8 respondents said that companies most of the times becomes selfish in
achieving their profit maximizing objective that they start over-exploiting the local labour in the
host country. 6 of the managers were of view that income inequality has increased in the country
0
2
4
6
8
Respondents

due to MNCs. While 8 people said that increased MNCs have resulted into over-exploitation of
the natural resources and causing harm to the natural environment.
Theme 6: Yes, unhealthy competitive environment for the local domestic producers in China
Particulars Respondents
Agree 18
Disagree 8
Not sure 9
Interpretation :
Agree Disagree Not sure
0
2
4
6
8
10
12
14
16
18
Respondents

It can be seen from the above survey conducted on 35 departmental managers of
Unilever, 18 managers said that they agree unhealthy competition caused due to increased
number of MNCs has affected the profitability of the domestic producers and has even made it
difficult for them to survive in the market. This has also been supported by the literature review.
Multinational companies are characterized by newest technologies, greater financial and human
resources which brings them in the position to manufactured high quality products and services
at the most competitive and affordable prices. Such good quality products at reasonable prices
attracts the customers and shifts their base from local companies to multinational companies'
products and services. While 8 respondents disagreed the same and 9 departmental managers
said that they are not sure whether multinational companies has harmed the profitability and
survival of local producers or not.
P.6 Recommendations
Hiring of experts
With the analysis of the above data collected it is advisable for company it needs to hire an
expert who can help the company in assessing the labour requirement of the company that is how
much labour is required so that if the labour is less than they would not be over exploited.
Not much high prices
With the above data analysis it is recommended to the company that it should not use such high
prices that the business of domestic traders in that country hampers. This is because of the reason
that due to increase in the multinational companies the competition has increased to a great
extent. For meeting and facing the competition, domestic traders and business have to reduce
their prices so that they can be in the race of competition. So if multinational companies charges
low prices then the domestic traders will not have to lower down their prices and can earn
minimum profit to survive in competition.
Training
Because of increase in multinational companies, it is very difficult for companies to work in
different countries because all the different countries have different set of cultures and social
beliefs, attitudes, values and way of working and ethics. Training is essential due to the reason
that it will help the employees of the company to understand the different types of culture
prevailing in different countries. This will help the employees of company in the case that if the

company goes in any other country then it will be beneficial for the employees to adapt to new
culture easily.
Also training must be provided to the employees to optimally and efficiently use the
limited and scarce resources. Since the competition is tough and hard all the companies wants to
go ahead and for this they misuse the resources. So training must be provided so that employees
learn to optimally and efficiently use the resources.
LO.4
Reflection
With the help of the above research I learnt that globalization and multinational
companies are related to each other. This is because of the reason that due to increase in
globalization only the existence of multinational company increased. When there was no
globalization, at that time trade among different countries was very expensive so existence of
multinational company was not much popular. Also, I learnt that for managing the business a
project management plan is also necessary. This plan is a document which includes all the
aspects relating to carrying the project like its scope, cost involved, time taken, resources used
and many more related things. Further some data was collected and analysed form the
departmental managers of Unilever. With the analysis of the data I was clear that yes there is an
impact and influence of multinational organization on business environment including social,
economic and environmental factors of host country.
CONCLUSION
By the completion of the research it can be concluded that yes the aim of research was
achieved. So it can be concluded that there is a significant influence of all social, economic and
environmental factors on multinational organizations like Unilever and along with it also
influence the business environment of the host country. With the study of the research it was
concluded that there is both a negative and positive impact of multinational companies on the
business environment of the host nation. The negative impact of multinational companies on the
business environment of host country are like increase in competition, impact of different
cultures and social environment, high transfer prices, impact on environment and many more
factors. With these negative things it also has some positive effects like increase in employment
opportunities, transfer of technology, improve in balance of payments and many other benefits.

REFERENCES
Books and Journals
Burr, V., King, N. and Butt, T., 2014. Personal construct psychology methods for qualitative
research. International Journal of Social Research Methodology. 17(4). pp.341-355.
Cameron, R., Sankaran, S. and Scales, J., 2015. Mixed methods use in project management
research. Project Management Journal, 46(2), pp.90-104.
Carlsson, C. and Walden, P., 2015, June. Digital Wellness for Young Elderly: Research
Methodology and Technology Adaptation. In Bled eConference (p. 1).
Clandinin, D.J., Cave, M.T. and Berendonk, C., 2017. Narrative inquiry: a relational research
methodology for medical education. Medical education. 51(1). pp.89-96.\
Fellows, R., Fellows, R.F. and Liu, A.M., 2015. Research methods for construction. John Wiley
& Sons.
Hirst, P., Thompson, G. and Bromley, S., 2015. Globalization in question. John Wiley & Sons.
May, C., 2015. Global corporations in global governance. Routledge.
Maylor, H. and Söderlund, J., 2016. Project management research: Addressing integrative
challenges. In Designs, Methods and Practices for Research of Project Management(pp.
41-48). Routledge.
Muller, R., 2017. Project governance. Routledge.
Nijhuis, S., Vrijhoef, R. and Kessels, J., 2018. Tackling Project Management Competence
Research. Project Management Journal. 49(3). pp.62-81.
Pollefeyt, D. and Bouwens, J., 2014. Identity in dialogue: Assessing and enhancing Catholic
school identity. Research methodology and research results in Catholic schools in
Victoria, Australia (Vol. 1). LIT Verlag Münster.
Suwandi, I. and Foster, J.B., 2016. Multinational corporations and the globalization of monopoly
capital: From the 1960s to the present. Monthly Review, 68(3), p.114.

APPENDIX
Questionnaire
Questionnaire
Name of the organization:
Name of the respondents:
Age:
Gender :
Date:
1. For how long you have been working in the organization?
 0-2 years
 2-5 years
 5-10 years
 More than 10 years
2. In your opinion, has globalization provided opportunities to your company?
 Yes
 No
 May be
3. How has your organization benefited from market globalization?11 Reduction in marketing costs11 New market opportunities11 Diversification of risks11 Access to lower cost workers11 Economies of scale
4. In your opinion what is the major impact of Unilever have on China's economy?
 Higher foreign direct investment
 Creation of employment
 Source of tax revenue
 Transfer of technologies
 All the above
5. In your opinion what are the major challenges faced by China due to increased number of

multinational organizations in the country?
 Over-exploitation of labour
 Negative impact on domestic producers
 Income inequality
 Homogenizing the cultural and social diversities
 Over exploitation of natural resources
6. Do you think that multinational organizations has created unhealthy competitive environment
for the local domestic producers in China?
 Agree
 Disagree
 Not sure
7. Recommend the strategies for effective operations of multinational companies by
overcoming negative impact on the business environment of China...