Impact of Globalization on Paul Smith UK: A Case Study

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CASE STUDY OF PAUL SMITH
Impact of globalisation in the business- Case study of Paul Smith UK
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CASE STUDY OF PAUL SMITH
Abstract
In recent time, globalisation has changed the way of business operations for many companies
and has brought many changes in the organisational performance. The following research will
cover the impacts of globalisation on the business operations of Paul Smith in UK. The
globalisation supports the company to attain its organisational objectives in the competitive
market. In this research, several methodologies will take to get the accurate data and more
authentic results for the given topic. Both primary and secondary data will be undertaken to
facilitate the topic. In the last section, recommendations and future guidance will be given as the
company may access the better results. Factors, impacts and challenges regarding the topic have
been discussed to get a brief view of the research.

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Acknowledgement
I would like to extend my heartfelt thanks to my supervisors for their guidance and support. I
would also like to thank the supervisor for their encouragement and support that has helped me
for achieving the research goal and study objectives.
Thanking you

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Table of Contents
1. Introduction..................................................................................................................................6
1.1 Research aims............................................................................................................................6
1.2 Research objectives...................................................................................................................6
1.3 Research questions.....................................................................................................................6
1.3 Research Background................................................................................................................6
1.4 Significance of the study...........................................................................................................7
1.5 Rationale of the research...........................................................................................................7
2. Literature review..........................................................................................................................8
2.1 Assess the impact of globalisation over Paul smith UK............................................................8
2.2 Challenges faced by Paul smith UK in its globalisation..........................................................10
2.3 Benefits of globalisation to Paul smith, UK............................................................................11
2.4 Factors responsible for imposing advantages of globalisation over the company..................13
3. Methodology..............................................................................................................................14
3.1 Introduction..............................................................................................................................14
3.2 Research philosophy................................................................................................................14
3.3 Research approach...................................................................................................................15
3.4 Research strategy.....................................................................................................................15
3.5 Research choices......................................................................................................................16
3.6 Techniques and procedures of data collection.........................................................................16
3.7 Sampling method.....................................................................................................................16
3.8 Data analysis............................................................................................................................17
3.9 Research limitations.................................................................................................................17
3.10 Ethical issues.........................................................................................................................17

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3.12 Costs......................................................................................................................................18
3.13 Gantt chart.............................................................................................................................18
4. Findings and Analysis................................................................................................................19
5. Conclusions and recommendations...........................................................................................31
6. Reflection...................................................................................................................................32
References......................................................................................................................................33
Appendix........................................................................................................................................36

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1. Introduction
1.1 Research aim
In this research, major aim is to evaluate the impact of globalisation in the business of Paul
smith, UK.
1.2 Research objectives
The research objectives are:
 To identify the impact of globalisation over Paul Smith in the region of UK
 To recognise the challenges faced the Paul smith in the era of globalisation
 To know about the globalisation effect as the company gain the benefits in the
competitive market
1.3 Research questions
In this context, research questions are-
1. What is the main impact of globalisation over Paul smith in UK?
2. What are the main issues faced by the company in the evaluation of globalisation?
3. How Paul Smith may be obtained the benefits in competitive market, as they understand
the impact of globalisation?
1.3 Research Background
In the era of globalisation, there are main benefits gained by the company in the recent
competitive market. The advent of globalisation has facilitated the successful global expansion
of Paul smith and presently, the estimated number of nations in which, the company has been
operating and functioning is around 35. That means Paul Smith factory outlets and its standalone
showrooms are active in 35 countries that enlarge the distribution network (Sifianou, 2013).
Major factors that influence internationalism are globalisation, advancement of technology,
competitive environment, international experience of staff, etc. Technological inventions have

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reduced and eliminated the trade barriers, which have resulted in high expansion of the firms.
Globalisation has created huge opportunities for the organisations like Paul Smith. The business
marketing may be influenced by exporting goods, holding joint ventures and directly investment
in a company or a firm (Hoffmann and Kumar, 2013). The following report will discuss such
impacts of globalisation over business strategies of Paul Smith, designed for acquiring its
business objective. Research has been conducted to explore various areas of Paul Smith’s
business policies and strategies along with the impacts it has due to globalisation. The purpose of
this research is to examine the impact of globalisation on Paul Smith’s new branded items in UK
market. Qualitative and quantitative research approaches are used to get the best outcome in this
research. Surveys and interviews have been performed to collect data and know the ideology of
the customers and which style they prefer the most (Lingard, 2013).
1.4 Significance of the study
The researcher will outline the impact of globalisation as Paul Smith in the region of UK.
Globalisation means the increased trade of organisations, which may be benefitted from
specialization in items where the companies have comparative benefits (Tan and Goh, 2014).
For instance, the UK based market of Paul Smith has comparative benefits in several items like
fashion products and items. These comparative benefits allow higher exports that creates job in
future. The charges for shipping the goods have been lowered down gradually. This has helped
Paul smith in carrying out its shipping exercise across various channels in cost efficient manner.
On the other hand, the research will have the main aim to give the proper business strategy of
Paul Smith.
1.5 Rationale of the research
Globalisation offers many benefits and increases the quality of living for many people, but on the
other side, it may radically affect the environment and economy, as companies use the resources
and takes advantage of lower cost in other countries (Tan and Houlihan, 2013). Paul Smith is the
most valuable fashion brand with market value of $50 billion. It manufactures the products in
more than 35 countries and provides employment to several people worldwide. The main
rationale for selecting difficult topic is the taste and preference of the consumers with its impact
to attain the organisational objectives by Paul Smith (De Lange et al., 2014).

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2. Literature review
2.1 Assess the impact of globalisation over Paul smith UK
Globalisation is nothing but the elimination of national and international barriers for the trade of
goods and services offered by variety of businesses established across the world in its different
corners. According to Cavusgilet al. (2014), globalisation has proved a transformational source
for the industries and business and uplifted the face of trade and commerce in the global market.
This in turn has defined a positive influence over the business expansion and profits of the
business of different regions and nations. One of such business has been benefitted by one of the
most beloved and preferred fashion brands of UK, The Paul smith.
Waddell (2017) has stated that the fashion giant of Britain has been successfully acclaiming the
titles such as best designer of the year, best fashion retailer etc. in its industry. The company has
opened and launched many of its outlets and showrooms in several regions like San Francisco,
Los Angeles and many more. According to MacKinnon et al. (2011), this has been one of the
biggest advantage and benefit of globalisation to the company. Then, the art collection of Paul
smith, UK has been featured in the new established entity of the company in Seoul of South
Korea. The company has been serving its customers with preferred fashion with British touch in
it. Brondoni (2014) has said that the company has been accustomed by one of the most iconic
and famous British fashion designers.
As opined by Salvioni and Gennari (2014), because of the advent of globalisation, the company
has been able to generate around 600 million US dollars through carrying out its business
operation throughout 48 varied nations across the globe. Globalisation has facilitated the flow of
goods and capital for Paul smith and thus has helped the company in carrying its process of
exportation of the goods across the national boundaries. Potrafke (2015) has stated that the
United Kingdom based fashion empire established by its owner Sir Paul and knighted the great
queen of Britain, has now gained popularity in the global market of fashion retail industry. The
company is famous for its signature single striped apparels and has been mostly used for
depicting high-class fashion in the society. However, the company has not been established in
the fashion retail and designing market of America. According to Brondoni (2014), the company

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has been planning and making efforts to penetrate into the fashion retail market of the America.
This move made by the company will enhance its performance in business.
Paul (2018) has opined that the advent of globalisation has facilitated the successful global
expansion of Paul smith and presently, the estimated number of nations in which, the company
has been operating and functioning is around 70. That means Paul Smith factory outlets and its
standalone showrooms are active in 70 different nations. Telò (2016) has said that because of this
the sales of the company increased by 6.7%. The profit earned by the company before tax was
also increased by the margin of 2 million US dollars. In the opinion of Saheed (2013), this
change in the business will aid the amount of revenue generated by the company through its
annual business sales and operations. In this way, globalisation has aided the business success
and growth of Paul smith, UK, in a prosperous manner.
According to Osamor et al. (2013), the globalisation is helping the organisation in making a
corporate level-working atmosphere in the organisation. The corporate decision-making is
another important impact within the organisation. As the company now dealing business in
multiple countries, in integrated working discipline is created by this act. Besides, there is a clear
evidence of multiple positive outcomes of the organisation due to the implement of globalisation.
As the company is now dealing in different countries, the number of recruitment has been
increased in different disciplines. Besides, the role of effective leadership has also increased to
manage the increased workforce of the organisation. On the other hand, Hoffmann et al. (2013)
commented on the implement of several policies making because of globalisation, which are
helping the organisation in managing their business in different countries. Therefore, it can be
concluded that the globalisation is making impacts in different disciplines of Paul and Smith.
As commented by Paul (2018), the globalisation is making another important impact on the
organisation. There is a clear evidence of improvement on the management of different resources
within the organisation, after the implementation of globalisation. The mission and vision of the
organisation is also changed after the organisation is moving towards the globalisation. Besides,
Saheed (2013) commented on the improvement of the economy of the organisation and their
contribution in the global economy. However, Paul and Smith are making their business
globalized by implementing several digital technologies in their business. In addition, Brondoni
(2014) also mentioned that the organisation is using the social media for promoting globalisation,

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which means the organisation is aimed to reach a large part of the customers in different
countries. Therefore, the organisation can reach to a large number of customers in an easier way,
which helps them in promoting their business. It is evident that this act is counted as
globalisation of the organisation.
2.2 Challenges faced by Paul smith UK in its globalisation
Making it to the position of most praise and beloved British fashion brand of the world, Paul
smith faced and still faces many problems in its path of globalisation. In the opinion of Osamor
et al. (2013), one of the most common challenges and issues for not only Paul smith, but for all
kind of fashion retailer is the low revenue generation from the undeveloped nations or their
fashion retail markets. Because of this factors and issues, the turnover of the company face a
significant amount of decline by estimated amount of 13 million US dollars. According to
Hoffmann and Kumar (2013), the other challenge faced by the British fashion giant is the
governmental policies and regulations made for the international brands opting to carry out their
business operations within the country. There are several countries, which are not very much
fond of British’s goods and product. As opined by Ariely (2012), due to this reason, these
countries have a kind of resistance against the business of British companies. This issue hinders
the expansion of Paul smith in several countries and restricts its penetration through the fashion
retail market of the country.
Another issue that was faced by Paul smith amidst its path of globalisation was the fierce full
rivalries offered by many of the other fashion retail brands of the United Kingdom as well as of
the other nations. Ariely (2012) has suggested that these competitors of Paul smith hindered
there expansion of business. Even if the business expanded within a country, theses rivals would
obstruct the growth of the company within the market. Potrafke (2015) has stated that through
offering cheaper prices and through adopting various marketing strategies, Paul smith was
somehow able to manage the competition and survive within the market. Now, one of the biggest
concern and challenge for Paul smith in regard of its globalisation was the negative influence of
Brexit movement.
Salvioni and Gennari (2014) has suggested that due to the withdrawal made by Britain from the
membership of European Union, the import and export duties were heavily misbalanced. The

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cost of production became higher due to which, the company faced substantial amount of loss in
its business. In various regions, the customer base started to decline due to the high price of the
products offered by the company. However, as stated by Cavusgil et al. (2014), this issue is also
strategically dealt by Paul smith for enabling its smooth flow of business. In many of the
countries, considerable amount of sales decline was observed due to increased overheads, but
this issue was also resolved by the company through bringing gradual decrease in the overheads.
These were several challenges and issues faced by Paul smith along its journey of globalisation.
As mentioned by MacKinnon et al. (2011), there is another example of challenge within Paul
and Smith due to globalisation, which is the cross-cultural conflict within the organisation. As
the organisation is increasing their business and penetrating different countries, the workforce of
the organisation was changed. In addition, there is a large recruitment within the organisation in
different disciplines, which are comes from different backgrounds. Therefore, the management
of the team within the organisation is making a barrier for performing tasks. Besides, to mitigate
this issue there must be a recruitment of an effective HR team, which is causing an additional
burden to the organisation. However, Cavusgil et al. (2014) commented that as the company is
implementing the social media for both the promotion and reaching to the customers, it is
making both positive and negative impacts. The negative feedbacks from the customers may
influence others in their decision-making process. Besides, the customers often complained for
having problems in e-commerce system. All of these are making limitation on the performance
of the business of the organisation as a whole.
2.3 Benefits of globalisation to Paul smith, UK
There are many benefits of globalisation, which are enjoyed by Paul smith organisation.
According to Salvioni and Gennari (2014), the most basic and general benefits of globalisation is
the broadening of the customer and employees base of the organisation. This provides advantage
to the company in generating more amount of revenue through incrementing its sales and profit
ratios. As opined by MacKinnon et al. (2011), it has been observed that the sales and product
rate of the company takes a leap of several percent. For example, the sales rate of the company
increased by 11% in the year of 2016. Along with this, as the business has been expanding
effectively, the revenue of the company also faced growth along with 2 to 3 million of profit

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earned before tax. Then, as opined by Potrafke (2015), the company was able to expand its
business and bring rise in the number of stores of Paul Smith. Around four new shops and
showrooms of Paul smith were launched in Hong Kong, whereas one new store was established
Luxemburg. This helped the company in promoting its retail sales by around 11% to 12%. The
online retail of the company was also boosted by more than 25%.
According to Cavusgil et al. (2014), the company also was benefitted in its technological sector,
which was also possible because of globalisation. As globalisation facilitated the flow of
technology also, most developed and advanced technologies have been made available in
majority of the countries. Paul smith has grasped this opportunity and has gained advantages of it
for enriching its technological areas such as the technological equipment and machineries that
are used for various purposes. Salvioni and Gennari (2014) have opined that because of this
factor, the operations within the company have been made easier to carry out and better
outcomes have been made achievable within shot time span. It has been opined by Cavusgil et al.
(2014) that due to trend of cross cultural working environment resulted by globalisation, the
decisions in the organisation are made more effectively. This is because employees belonging to
different countries and different cultural background possess distinct thinking capabilities and
varying ideologies. Therefore, according to Ariely (2012), their involvement in the decision
making process helps in getting more options and selecting bets options out of them. In this way,
the strategies and decisions that are made are creative and effective to be executed for the
welfare of the company.
Now, as Paul smith is mainly involved in textile industry, the resources are made available to the
company in vast manner. According to MacKinnon et al. (2011), the resources are also an
advantageous output of globalisation that is being involved in textile business. It has been
another advantage for the company in its globalisation. Globalisation has also acted as a wind to
fire for the trend set of acquiring an adopting fast fashion of different cultural touch. That means,
customers have been opting to try every kind of fashion and style and this has helped the
company in extending its roots in the customer bases belonging to variety of countries. Potrafke
(2015) has said that this would not be possible without globalisation of the company.