Impact of Globalization on Multinational Firms

Introduction

In the recent era of globalisation, the multinational corporate firms are operating across the globe through international trade where the business environment is suitable and the firm get proper market place to explore new opportunities cross the international nations (Ahmad et al., 2015). The aim of the study is to understand the impacts of globalisation as well as strategic planning of the business on the organisation globally. Through this study, it is possible for the researcher to review the secondary and primary data as well as gather relevant and valid information which are effective to analyse the above mentioned research topic which is to evaluate the impacts of globalisation on the business activities of the firm. The study is helpful to analyse the collected data as well as represent the findings after choosing appropriate mythology for evaluating the above mentioned research topic.

Background of the study

In the recent era of globalisation, there are developed countries where the entrepreneurs utilise the labourers of the third world countries or the developing nations where the labour cost is lower. On the other side, it has positive impacts as the developed nations help the developing countries for employment by providing the labourers jobs and there is internal flow of money in the developing nations which is effective for raising National income of the countries. Hereby, globalisation has both positive and negative impacts on the business activities and strategic planning. The research mainly focuses on the organisation, Asda which is a British supermarket, retailer, founded in 1949 (Asda, 2019).

The company provides quality products including grocery, merchandise and financial services to the customers. Through this study, it is possible to analyse and evaluate the impacts of globalisation on the business activities and strategic planning of Asda. Globalisation has direct impacts on the business activities such as operational expenses, production cost, transportation cost, low labour cost etc. and this further helps to reshape the strategic planning of the business successfully in doing their operational activities across the international nations (Flew, 2018). In such an era, there is high competition in the global retail market and globalisation further provides a scope to the organisation Asda to explore more opportunities and utilise the scope for business expansion across the international market places so that it is possible for the firm to gain highly competitive advantage and retain the market share as compared to the other competitive firms like, Tesco, Walmart, Sainsbury’s, Lidl and Aldi which are also operating in the retail industry.

Literature review

Globalisation refers to free movement of goods and services as well as transfer of people and technology across the world in a seamless and integrated manner. Globalisation in this regard, increases the base of operations and expands the workforce with minimal investment and provides new services to a broad range of customers. Globalisation enables the business to access the customer base across the international borders where the organisations can retain the audiences in the market (Morecroft, 2015). Globalisation provides a scope to the business to access the market place and access free movement of goods and services through international trade. In addition to these, the multinational corporate firms can expand their business in the recent era of globalisation through online business activities where the e-commerce industry is growing the trend of online shopping is also at high growth. The online services of the companies are helpful to strengthen their customer based and retain the consumers across the international nations. On the other hand, globalisation provides a scope to the business firms in the developed nations to hire the workers from the developing nations at low cost. This is another advantage of reducing the cost of product by hiring low cost labourer from the developing nations (Stacey, 2016). The companies also can have the opportunity to manage culture diversity and manage the skilled workforce in the organisation which in turn helps to manage the human resources and deliver high quality customers service successfully.

Globalisation has direct impact on the business where political stability, income generation, growth in income, social development, ethical consideration and technological advancement further faster the pace of business and influence the firms to reshape their operational strategic planning to expand their business across the international countries and gain high market share for sustaining in the market (Cassidy, 2016). Increased customer’s base and grabbing market opportunities are the positive impacts of globalisation through which the multinational national corporate firm scan retain more audiences in the market and gain high competitive advantage over other competitive firms.

On the other hand, globalisation is considered to be a contributing factor to conduct international trade where government supports transfer of goods and services as well as technology transfer in order to influence the organisations to grow faster and maximise their profitability. In order to grab the opportunities of globalisation, the organisations recently try to reshape the business strategies in order to support the customers worldwide and expand the business successfully (Nickols, 2016). Globalisation further influence the businesses to promote the brand with proper advertisement, both television and social media by sharing relevant information about the organisational products and services, providing and offers which is helpful to retain more social communities across the international borders. The job market becomes diverse, where the organisations try to hire the experts with skill and technical knowledge for improving the service quality and it further helps the organisations to maintain organisational culture, cultural diversity and build strong relationship with the workforce for leading them towards achieving success (Sahebjamnia, Torabi and Mansouri, 2015). The operational activities are also reshaped by the leader where they try to expand their operations, strengthen their supply chain and manage distributors for maintaining warehouse successfully.

Methodology

Methodology provides a scope to the researcher to conduct further analysis after collecting relevant and valid data and information so that the research topic can be evaluated further. Through methodology, the researcher can select the appropriate methods of collecting and analysing the data and information which would be beneficial or the researcher to critically analyse the above mentioned research topic. In this regard, there is two types of data collection technique, one is primary and second is secondary data collection method. Under the primary data collection technique, the researcher can find the first hand information directly from the customers through survey questionnaires or online survey or through interview (Taylor, Bogdan and DeVault, 2015). On the other hand, through secondary data collection method, the researcher can collect the secondary information including theories or concepts related to the research topic by searching the secondary sources of information such as literatures, online articles, journals and books or business letters which provides a scope to the researcher to gather in depth knowledge and understanding about the topic of the research. In this present study, the researcher collects relevant data and information through both the methods of data collection, primary and secondary. In this regard, the researcher collects secondary data and information from the secondary sources of information such as books and journals where the researcher can improve his or her skill and knowledge to conduct further analysis in this study. On the other hand, the researcher also utilises the primary data collection method in order to collect proper information directly from the customers through which the managers of the business can get proper feedback from the customers and they can develop appropriate strategic planning for reshaping their business activities so that it is possible for the business to utilise the opportunities of globalisation and gain high competitive advantage over other competitive retail firms in the market. In this regard, the researcher develops the questionnaires for the customers to collect their feedback. The questionnaires are,

In addition to this, there are two types of data analysis technique, which are quantitative and qualitative. Under the quantitative data analysis technique, the researcher selects charts, graphs and statistical programs to analyse the findings and under the qualitative technique, the researcher tries to interpret the collected findings with proper link to the existing theories and concept that are gathered through literature review by the secondary data collection method (Kumar, 2019). In this particular research, the researcher selects qualitative data analysis technique through which the company tries to analyse the collected findings by utilising and applying the concepts and theories of the research topic. The researcher in this regard, tries to maintain research ethics in order to complete the project efficiently without any ethical drawbacks. Data Protection Act 1998 is implemented in order to protect the secondary and primary data where the researcher assures that the gathered information are utilised only for the research purpose, not others. in addition to this, the researcher tries to convince the customers and show empathy and honesty to create safe environment where the customers can take active part in the research through providing their honest answers so that the researcher can gather relevant and valid information which in turn helps the researcher ton conduct the analysis successfully.

Results

1. What do you like about Asda?

As per the findings most of the customers provide the information with honesty that they like customer service and pricing of the organisation where the staff are education and they can serve efficient services as per the needs and preferences of the customers. The opening time is also another factor that the customers like as they can make effective purchase decision by visiting the stores as per their preferences. Hereby, the company is efficient to serve the customers with proper service and effective price for which the customers can make their purchase decision successfully.

2. What do you dislike about Asda?

Most of the customers are satisfied with pricing, staff member’s behaviour and their cooperation as well as customer service, but there are some customers who dislike the closing time of the organisation. There are many customers who cannot visit the stores due to early closing time as they are service man and it is not possible for them to reach the stores early.

3. If Asda was closed where would you go?

If Asda was closed, the customers revealed that, they would like to go to Te4sco as Tesco is another famous retail firm who are efficient to provide quality products and services at competitive price where the main vision of the company is to save money for the customers so that they can buy more by making effective purchase decision and through this vision, the company set lower price for the customers so that the consumers can afford the products. For this reason, the customers would like to go Tesco if Asda was closed.

4. What do you think about the pricing at Asda?

The pricing of Asda is moderate where the managers and employees can manage providing quality products and service at affordable price in the market.

5. Do you like the services at Asda?

Most of the customers provides honest reply that they like Asda for their products and pricing. They are satisfied with the variety of products and services where the employees serve the customers according to their needs and preferences. In this regard, it would be possible for Asda to satisfy the customers and meet the expectation of the consumers in the market.

6. What is your opinion on staff ratio at Asda?

As per the staff ratio, it would be 8 where most of the customers provide the information that, there are adequate numbers of staff who can manage the customers and they cooperate for supporting the customers to choose the best product as per their choice and preferences.

7. Is Asda you first choice to shop?

Most of the customers reveal that, they choose Asda as their first preferences as the organisation is efficient to serve the customers on a daily basis where availability of the variety of products at the stores and efficient customer service further retain the customers for long run.

8. If you were to recommend Asda, on what point would you recommend it?

Quality of the products and variety of product availability are the major two reasons for which the customers would like to recommend the organisation to others. The organisation is efficient to manage their product variety where grocery and other merchandise products are present in the store as well as there are financial services for the customers through which the company like to serve the customers proficiently.

9. Have you ever had bad experience at Asda?

As per the customer’s feedback, there is no such bad experience at the store of Asda.

10. Are you satisfied with the products and services of the organisation Asda?

As per the findings, most of the customers are highly satisfied who love to make effective purchase decision with the quality products and efficient services of the organisation Asda where the price level is also moderate and thus the customers can purchase according to their needs and preferences.

Discussion and analysis

As per the discussion over findings, it has been seen that, the customers of Asda is highly satisfied with the products quality and the variety of products. In such an era of globalisation, the managers and staff members try to conduct market analysis in order to acknowledge the market trend and the needs and preferences of the customers in the market which in turn helps the managers to manage the variety of the products to satisfy the customers at the store. Additionally, globalisation has positive impacts on managing global supply chain and operational activities where the organisations is able to manage their operational cost as well as strengthen their supply chain in order to manage the warehouse and maintain the availability of the products at the stores. On the other hand, the products quality is maintained by the production team in the organisation here transfer of raw materials, safety and security of the grocery products are managed through technological advancement, store management, and supply chain which is also one of the contributing factors for delivering quality products to the customers. In addition to these, there is high impacts of globalisation in retaining best skilled staff members in the organisation which provides a scope to deliver efficient customers service (Dunford et al., 2016). Globalisation enhances the transfer of skilled workforce where the organisation Asda is successful to hire the experts who can manage the customers and enhance customer relationship management for retaining the customers for long run. Moreover, globalisation helps the organisation to conduct international trade without any such barriers which also provides a scope to the organisation in expanding their services through store expansion or online e-commerce where they can strengthen their customer’s bases across the international borders and mange the customers efficiently.

In addition to these, globalisation provides stable economy as well as there is social factor where it is necessary to consider that, employment and national income of the countries is rising with a steady growth and this in turn provides an opportunity to the organisation like Asda to explore more scope and expand the business further. Hereby, globalisation provides a scope to Asda to strengthen their customer’s base and retain more loyal and trustworthy consumers for long run. As per the findings, the price of the products is moderate where the company is successful in hiring low cost skilled workforce as well as manage their operational expenses across the globe. Low cost skilled labourers are available in the nations due to globalisation where there is huge workforce from the developing nations who are trying to get proper employment. Hereby, globalisation is also beneficial for the organisation to manage the product cost and operational expenses for which Asda is able to deliver the quality products and efficient services to the customers at affordable prices. In addition to this, there is another factor which needs to be considered such as technological advancement and ethics where the organisation enhances their technological up-gradation for serving the customers online as well as they maintain copyright and could computing for protecting customer’s data and information which further improve trust and loyalty where the staff members is able to build strong relationship with the customers for long run (Coe, and Wrigley, 2017). On the other hand, in such an era of globalisation, people like o access internet and gather knowledge and experience through online activities such as social media and email and these further influences the businesses to strengthen their customer’s base by online activities. In this regard, the organisation can expand their business by managing online activities as well as strengthening global supply chain.

Conclusion and recommendations

It can be concluded that, through this study, it is possible to analyse the globalisations impacts on the strategic planning and operational activities of the organisation. As per the findings, the customers are highly satisfied by the products and services of the organisation Asda, where the company is efficient to serve the customers with the best quality products at affordable price as well as the managers and front line staff are proficient and skilled to manage the customers and provide efficient customers service. This is effective for retaining mo consumers in the market for long run and expanding the business for grabbing the opportunities of globalisation which is beneficial for Asda to enhance their performance, maximise profitability and sales volume and gain high market share in the global retail industry.

Recommendations:

The company Asda needs to improve their online presence to grab the opportunity of globalisation where people in the recent years try to gather knowledge and information through social media platform. The company must promote the brand through social media posts so that it can provide proper information about the products and services of the organisation to the social communities for strengthening their customer base and retain more social communities successfully.

The organisation Asda also needs to manage global supply chain in order to maintain their operational expenses and improve global presence. Through managing proper supply chain, the company also serves the online customers in the recent era of digitalisation.

Asda needs to develop company website where the customers can place their orders with one click option and improve e-commerce service for proper payment against the purchase where the customers can pay securely. In the recent era of globalisation, the online shopping is growing at a rapid rate and the company in this regard focuses on online service to retain more customers and strengthen their customer’s base in the retail market.

Reflective summary

Through this study, it is possible for me to gain more in depth knowledge and understand about the strategic planning of Asda in such an era of globalisation. Hereby, I try to review the existing literature to understand the strategic planning of the organisation to satisfy the customers recently in the market. Moreover, I try to communicate with the respondents to understand customer service of Asda as well as understand the information about the quality of products and services of the organisation, pricing, customer satisfaction etc. through which I try to conduct the study critically. Through this study, I hereby try to improve my communication skill as well as critical analysis skill and decision making skill through which, I aim to analyse the collected information as well as recommend some suitable suggestions for the company Asda to improve their operations and strategies to gain high competitive advantage in the recent era of globalisation.

Reference List

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