Globalization's Impact on Zara: A Business Analysis

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Task 1: Research proposal
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Table of Contents
1. Title........................................................................................................................................3
2. Introduction............................................................................................................................3
3. Aim.........................................................................................................................................3
4. Objectives...............................................................................................................................3
5. Research questions.................................................................................................................4
6. Research rationale..................................................................................................................4
7. Literature review....................................................................................................................5
7.1 Introduction..........................................................................................................................5
7.2 Concept of globalisation......................................................................................................5
7.2.1 Theory of Liberalism.........................................................................................................5
7.2.2 Bartlett & Ghoshal Model.................................................................................................6
7.4 Strategies for entering foreign market..................................................................................8
7.5 Literature gap.......................................................................................................................8
8. Research limitations...............................................................................................................8
9. Ethical considerations............................................................................................................8
10. Methodology........................................................................................................................8
10.1 Research Philosophy, Approach and Design.....................................................................9
10.2 Data collection method and analysis..................................................................................9
11. Gantt chart............................................................................................................................9
12. Reference list......................................................................................................................12
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1. Title
THE BENEFITS AND DRAWBACKS OF A GLOBAL BUSINESS ENVIRONMENT ON
ZARA
2. Introduction
Globalisation is considered as a term to describe how the organisation or people are
becoming more interconnected worldwide regarding factors like technology, media, finances
and transportation. Globalisation offers benefits as well as challenges for the organisations
and people (Namada, 2018). It has tremendous definition regarding tremendous business
opportunity regarding economic growth for benefits and challenges for improving service
quality. Globalisation can lead to challenges regarding worker welfare and economical
aspects. In the context of Zara, global business and internationalisation has influenced the
business in both negative and positive aspects. Globalisation affects Zara to experience the
economic growth to increase the amount of goods and services to produce the effective
amount in GDP and GNP (Rugman and Verbeke, 2017). Globalisation has effects in modern
technology and economic aspects to influence the products and service while expanding
internationally. Industrialised nations are focused to characterise the business climate among
the strong government and healthy business community. The research proposal will
investigate both benefits and drawbacks of globalisation while internationalising the business.
The proposal will shed light on impact of globalisation by identifying key strategies and
effects in retail industry in the context of case study of Zara.
3. Aim
The aim of this research is to analyse the benefits and drawbacks of a global business on Zara
as an impact of globalization.
4. Objectives
The objectives of the research are:
 To determine positive and negative effects of globalization
 To identify the impact on the retail products provided by Zara due to globalization
 To identify the advantages gained by ZARA as a consequence of globalization
 To investigate strategies use by Zara to enter foreign markets
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5. Research questions
The research questions are:
 How did globalization affect the retail products offered by Zara?
 Does globalization have an effect on customer satisfaction?
 Does globalization have an impact on business strategies by Zara?
 What effective recommendations can be made for Zara to increase its customer base?
6. Research rationale
What is the issue?
The issues are identified as inequality, inflation, vulnerability and external economic shocks
in the international market. According to Lasserre (2017), global economic fluctuations and
financial instability are barriers that can be focused to discuss the risk in contagion in global
aspects of the company. Consumer debt level and economic growth are increasing as
compare to the UK’s fashion retail industry. Value of retail fashion industry has jumped to
£21bn in 2009 from £26bn. It has been focused that ethical market in has grown to £38bn in
the UK (Theguardian.com, 2019).
Why is it an issue?
The issues are focused as producing low profit margin regarding chance to lead safer and
happier life style to educate the children in better condition. The identified issues regarding
globalisation are at high concerns by most of the retailers. It is needed to focus on distributing
the commercial and political views and opinions for international aspect of business (Herrera,
2015). Rigorous challenges regarding economic fluctuation and instability are found when
factual information is necessity to influence the retail sectors in the UK and international
aspects.
Why is it an issue now?
The issues regarding new trade imbalance, excess concerns, and standardisation are focused
to identify the capital investments for the countries. In recent times, the UK market has
grown to £38bn and it is worthy regarding suggesting the workers and consumers for better
conditions to lead happier and safer lives. As Zara like fashion clothing company is facing
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issue regarding predominance and technological interpretation regarding leading happier and
safer lives for establishing enormous boost towards global economy.
How will the research shed light on the issue?
The research will shed light by discussing the identified issue regarding skilled workers and
consumers for interpreting the current establishments in fashion retail like industry. In the
context of internationalisation, global economy and fluctuated GDP rate are established to
discuss the opportunities and potentiality regarding fashion retail as result of globalisation
(Kung et al., 2016). The research will identify the ways to mitigate the issue regarding
enormous boosts in global scenario for the international companies.
7. Literature review
7.1 Introduction
The chapter of literature regarding globalisation concept are reviewed to develop the
international strategies for the market development. The retail market aims to develop the
strategic options that are based on local and global integration. Existing literature on global
aspects and that is based on international operations will be reviewed base don several
journals and articles.
7.2 Concept of globalisation
Globalisation concept is considered to establish effective research phenomena regarding
primary process that is associated with cultural and social aspects (Kung et al., 2016). The
retail sectors have faced several aspects that are developed from single market to
international market. Globalisation is manifested as proportion of output in global aspects
that are developing integration in foreign exchange markets in the world. It cannot be
measured to standardise the economic development and evaluation in economy. According to
Savona and Oldani (2016.), it can be measured to attribute the share of consumptions and
increasing ability regarding convergence in technological and economic aspects. Moreover,
globalisation is less reality in economic stability that seems in process of emerging to world.
It is important to grow strong and natural in the process of developing wage system and
technological improvements.
7.2.1 Theory of Liberalism
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Liberalism is a process regarding market-led extensions in modernisation of the process in
current market (Krugman, 2017). The theory of liberalism focuses to identify the
maximisation of material well-being to interlink humanity worldwide. Technological
advances and suitable legal arrangements for processing the liberal democracy and
information processing in worldwide are included to support. Technical standardisation and
translation arrangements are focused to identify the technical implementation across the
economical development. The social factors are enhanced to enforce the political, legal and
economic impacts on internationalisation. As per the view of Rupert and Smith (2016), the
theory of globalisation focuses to arrange the areas of transport and institutional development
and arrangement to enable the economical interpretation. It is necessary to guarantee the
rights as result of globalisation. Social forces and arrangements are there behind the
institutional underpinnings for the international companies.
7.2.2 Bartlett & Ghoshal Model
The Bartlett & Ghoshal Model is considered to focus on considering the strategic options in
order to manage the international operations. The model has another aspect to review the
international market choices while interpreting the both local and global market. As opined
by Hanson et al. (2016), global, transnational, international and multi-domestics approaches
are considered while establishing penetrating in international market by the companies. The
local responsiveness includes the international markets to define the local requirements with
advantages over global expansion. The model is exclusive to adapt the advantages over
ability and responsiveness of the standardised products. Global branding and global strategies
are reflected to operate efficiently (Kung et al., 2016).
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Figure 1: Bartlett & Ghoshal Model
(Source: Hirst and Thompson, 2019)
7.3 Positive and negative effects of globalisation
Positive effects:
Globalisation has positive effects regarding benefits in encouraging producers and consumers
for labour and economic scale. Competitive advantages and enhanced growth is important to
focus on benefitting the economic growth per capita (Cohen, 2018). Enhanced growth and
gaining share across national borders for opening capital markets are other benefits of
globalisation. In the context of fashion retail, competitive pressure helps the organisations to
be competent in the global fashion industry across national borders.
Risks or negative effects:
Globalisation is marked to rising inequalities in wealth and income. Strong demands of
fashion clothing products has caused steep rise as inflation has placed world’s poorest people
at high risks. Vulnerability and global threats are considered as affecting economy of the
retail organisations (Hirst and Thompson, 2019). Irreversible damage regarding threats to
global commons and race to bottom are increased regarding social consequences and big
trade surpluses such as creating developing country’s selling outputs.
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7.4 Strategies for entering foreign market
There are several market strategies regarding licensing, direct exporting, franchising,
partnering in entering foreign market. It is required to establish the smooth and effective
international fields by the local companies. According to Hanson et al. (2016), foreign market
entry depends on such factors to interpret the market entry strategy and developing entry
positions for establishing effective and improved market strategies for establishing deep
insight in international market. The fashion retailers need to focus in establishing special
development regarding entry options and selling positions. However, the globalisation is
effective concept that in incomplete to extend the global field while establishing and
expanding related proportions of mobility and difficulties in labour market.
7.5 Literature gap
The research is focused to discuss the globalisation in the light of benefits and drawbacks of
globalisation in general. Any specific geographical area and country has not chosen to discus
the effects of globalisation. Another gap is there that the research is focused on retail clothing
industry as effects of globalisation. Other perspectives are not taken to discuss.
8. Research limitations
The research is limited that time and costs are limited for conducting the current research.
The researcher does not have expanded information regarding globalisation to enrich the
knowledge. It is important to explore the research aim and objective to establish the effective
research findings. Proper articles and journals are limited to research for analysis.
9. Ethical considerations
Researcher has ensured to follow authentic and valid data collection and interpretation for
accessing and authorising the data that will be used in the research. Data collection method
and given data are authentic and valid regarding deciding ethical considerations in the
research. The Data Protection Act of 2018 (c12) will be applied to protect the personal
information of the respondents. The act is effective to focus on accessing authentic data
collection and data analysis in order to conclude the findings. Researcher will not manipulate
any data from the data collection for both quantitative and qualitative data collection method.
10. Methodology
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10.1 Research Philosophy, Approach and Design
In the current study, positivism research philopshy will be chosen to cover the wide area of
the research topic. This philopshy will be the most suitable because researcher will conduct
the highly structured and scientific study to establish the performance regarding meeting
research objectives. Deductive research approach will be chosen to conduct the research in
order to focus on explaining the research based on existing concepts and theories. This
approach will be most significant because researcher will focus to establish research aim by
help of empirical data collection method and analysis based on existing theories and concepts
of the current research topic (Saunders et al., 2012). Exploratory research design will be
chosen to conduct the current study by developing both qualitative and quantitative data
collection method. Mixed methods will be used to explore the significant perception
regarding understanding research background. This is the most suitable because the
researcher will develop the study design for interpreting the variables over existing data for
analysing and reviewing (Flick, 2011).
10.2 Data collection method and analysis
Data collection method is important to form the data analysis to interpret the data findings.
The research will follow primary data collection methods to extract the data over significant
interpretation over the data. Both qualitative and quantitative data collection method and
analysis will be conducted. It is focused to interpret the data collection from survey for
quantitative and interview for qualitative data collection method. Simple random sampling
method will be conducted to choose the participants. 50 respondents as employees of Zara
and 3 managers of Zara will be surveyed and interviewed respectively. After data collection,
qualitative and quantitative data analysis will be conducted in effective manner.
11. Gantt chart
Activities Week
1
We
ek
2
Week
3
We
ek
4-6
We
ek
7
We
ek
8-9
Week
10
We
ek
11
We
ek
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Week
13-
15
We
ek
16-
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We
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W
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Deciding
the research
topic
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Drawing
the aims
and the
objectives
of the
research
The
literature
review of
the project
Deciding
the research
methodolog
y
Reviewing
the
methodolog
y
Collection
of the data
for the
research
Analysing
the data for
the research
Drawing
conclusions
and the
recommend
ations
Drawing
the final
report
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Reviewing
and
submitting
the research
Figure: Gantt chart
(Source: Created by Author)
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12. Reference list
Cohen, R., 2018. Diasporas, the nation-state, and globalisation. In Global history and
migrations (pp. 117-143). Routledge.
Flick, U. (2011) Introducing Research Methodology: A Beginner’s Guide to Doing a
Research Project. London: SAGE.
Hanson, D., Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2016. Strategic management:
Competitiveness and globalisation. Cengage AU.
Herrera, M.E.B., 2015. Creating competitive advantage by institutionalizing corporate social
innovation. Journal of Business Research, 68(7), pp.1468-1474.
Hirst, P. and Thompson, G., 2019. The future of globalisation. In The Handbook of
Globalisation, Third Edition. Edward Elgar Publishing.
Krugman, P., 2017. Crises: The price of globalisation?. In Economics of Globalisation (pp.
31-50). Routledge.
Kung, T.H., Richardson, E.T., Mabud, T.S., Heaney, C.A. and Jones, E., 2016. globalisation
Host community perspectives on trainees participating in short-term experiences in global
health.
Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
Namada, J.M., 2018. Organizational learning and competitive advantage. In Handbook of
Research on Knowledge Management for Contemporary Business Environments (pp. 86-
104). IGI Global.
Rugman, A. and Verbeke, A., 2017. Global corporate strategy and trade policy. Routledge.
Rupert, M. and Smith, H. eds., 2016. Historical materialism and globalisation: Essays on
continuity and change. Routledge.
Saunders, M., Lewis, P. And Thornhill, A. (2012) Research methods for Business Students.
6th Ed. Harlow: Pearson.
Savona, P. and Oldani, C., 2016. Globalisation, Growth, and Health: The Private Sector
Perspective. In Sustaining Global Growth and Development (pp. 123-138). Routledge.
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