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Globalisation is defined as the interaction and integration of the individuals, industries and government worldwide for the movement of goods and services across countries. It promotes a sense of social and cultural awareness of different countries and making the international trade easier. This report is going to discuss about the benefits and drawbacks of expanding the business operations globally (Briscoe, Tarique and Schuler, 2012). Considering this, organisation Tesco has been taken in this project which is planning to expand its business operations globally. It is a British multinational groceries and general merchandise retailer headquartered in England, UK. Present report will keep its focus on the aims and objectives for the case scenario of Tesco.
Aim of the project- “To identify the benefits and drawbacks of global business environment for growth of business”. A case study on Tesco.
- To identify the concept of globalisation.
- To determine the benefits and drawbacks of globalisation for enhancing business operations.
- To analyse the issues and challenges faced by Tesco while growing its business internationally.
- What is the concept of globalisation?
- How to determine benefits and drawbacks of globalisation for enhancing the business operations?
- What are the issues and challenges faced by the Tesco while growing its business globally?
Concept of globalisation
Globalisation is a process which helps the companies in selling its products and services to customers across the national boundaries and satisfies their needs and demands (Cavusgil and Knight, 2015). It refer to the process of growing interdependence of countries which results in increase integration of trade, finance, people and ideas in one global market place. Over the years it has been analysed that due to increase in people's mobility it has greatly impacted the global economy in both the positive and negative manner. Government has also removed the trade barriers in order to encourage companies to expand business operations globally and earn huge profits by satisfying customer demands. This way companies can export and import goods and services at large level and achieve high level of profitability.
Benefits and drawbacks of globalisation for enhancing business operations.
Their are various benefits and drawbacks of expanding the business operations globally which needs to be carefully analysed when taking decisions-
- When the respective company expands globally it helps in sharing of ideas and technologies which helps in producing unique products and attracts large customers.
- It helps in free trade which promotes global economic growth of poor countries and also creates job opportunities for the individuals (Crane, Matten and Spence, 2013).
- It helps the respective company to adopt to certain social and economic aspects of the expanding country which makes them highly adaptable and able to face any risk or challenges when conducting business operations.
- It leads to unfair working conditions by exploiting labours in underdeveloped countries. In order to cut the cost of the products respective company provides unhealthy working conditions leading to health hazards.
- When the respective company shifts their production to poor or undeveloped countries there will be trade deficit as the cost of the country's import will exceed the value of its exports.
- When the respective company expands globally they have to analyse the demands of the customers in different countries which makes production process a complex one and creates difficulty in producing products accordingly (Crane, 2014).
Issues and challenges faced by the Tesco while growing its business globally
As the respective company operates its business in global markets, they may encounter several significant issues and challenges-
- Legal and regulatory structure- When therespective organisation expands its business operations in various countries they have to follow the laws and regulation of the countries in order to perform business. This creates problems for the business to follow different laws in producing goods and makes business process a complex one.
- Leadership- It is difficult for the respective organisation to find effective organizational leadership with appropriate skills and knowledge which fits according to the geographic market successfully. As according to different environment in country different forms of leadership are required which can effectively coordinate with language, culture and management style. Attracting effective leadership with all the qualities is very critical in handling customers and creates difficulty in expanding business operations (Laszlo andCescau, 2017).
- Technology- Level of technological development of nation affects the attractiveness of the Tesco in doing business. As respective organisation may face variety of technological challenges for conducting business in developed countries such as of training workers for using equipments which needs effective training to make the workers reliable to access internet as well as other technologies to carry business operations. These are the challenges faced by Tesco in expanding business operations.
It is most important part of the research project as all the important aspects of the research project is discussed. With the help of this all the issues associated with the research project can be sort in a proper manner. Investigator has to check that their project team is making use of correct approach by collecting the data in a proper manner. The methodologies which are beneficial for the present research are evaluated as follows-
Types of investigation
There are two ways in which research can be conducted in a proper manner such as Qualitative and quantitative research-
It is a type of exploratory research in which data is collected based on the observations of the perception of the people.
Data under this research is collected in numerical forms via statistical and mathematical techniques. It collects the data by proper analysing the data and charts.
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Present research puts their focus on understanding the qualitative aspects of the topic as it will be essential for them (Madhok and Keyhani, 2012).
It is considered to be an effective segment where all the activities for conducting research project are conducted in a proper manner. Their are various kinds of designs which can be used by the investigator while doing the research activity. These are exploratory, experimental and descriptive research designs. In exploratory research design new facts and figures which are essential for the company are considered as well as in descriptive research design, detail study of the project is conducted and in experimental design mathematical computation are done for proving model and theories(Shenkar, Luo and Chi, 2014). Present report uses descriptive research design for carrying out the research.
There are two types of research approach which is required to be implemented by the investigator. These are inductive and deductive approaches. In inductive approach theories are applied on the assumption and models based on the facts and figures. In deductive approach current numerical facts and figures are considered on the basis of observation. In the present report researcher will use inductive research approach.
It determines the various kinds of patterns and beliefs which is used by the researcher in performing research activity in a proper manner. There are two philosophy used which are positivism and interpretivism. In positivism uses science and maths model as well in interpretivism focus is on the quality of data which is collected (Stahl, 2012). Researcher makes use of interpretivism in carrying research project.
Time scale and graph
- Briscoe, D., Tarique, I. and Schuler, R., 2012. International human resource management: Policies and practices for multinational enterprises. Routledge.
- Cavusgil, S.T. and Knight, G., 2015. The born global firm: An entrepreneurial and capabilities perspective on early and rapid internationalization. Journal of International Business Studies. 46(1). pp.3-16.
- Crane, A., Matten, D. and Spence, L., 2013. Corporate social responsibility in a global context.
- Crane, and et. al., 2014. Contesting the value of “creating shared value”. California management review. 56(2). pp.130-153.
- Laszlo, C. and Cescau, P., 2017. Sustainable value: How the world's leading companies are doing well by doing good. Routledge.
- Madhok, A. and Keyhani, M., 2012. Acquisitions as entrepreneurship: Asymmetries, opportunities, and the internationalization of multinationals from emerging economies. Global Strategy Journal. 2(1). pp.26-40.
- Shenkar, O., Luo, Y. and Chi, T., 2014. International business. Routledge.
- Stahl and et. al., 2012. Six principles of effective global talent management. Sloan Management Review. 53(2). pp.25-42.