Organizational Impact on Host Economies

Introduction

In the recent era of globalisation, all the multinational corporate firms are operating in the global market place and the leader and the managers are efficient to grab the market opportunities to reshape their business activities in order to run the organisational operational activities strategically (Najam, Runnalls and Halle, 2016). Globalisation is the process, which influences the business activities in the market and this pace of globalisation further provides an opportunity to the organisations to improve their operations and expand their business activities strategically across the international markets.

Aim of the project

The study aims at discussing the impacts of the business on the host country, where the activities of the organisations have crucial effects on the culture, region and business environment of the countries across the globe. The study is effective to discuss the organisational impacts on the business environment of the host countries, and the organisational activities of Body Shop will be discussed to assess and analyse its effects on the economy or a country.

Project understanding

The Body Shop is the cosmetics, perfume and skin care company, which is the subsidiary of the Brazilian company Natura & Co. it is mainly a subsidiary firm, which is operation across the international places, where the organisation is efficient to expand their business across 3000 locations. The major products of the company are skin care, cosmetics and fragrance, where the quality products are effective to strengthen their customer’s base in the market. The activities of the company further enhance the business environment in the organisation, where it also has effective impacts on the host countries across the international borders. Globalisation further influences the company to establish the brand efficiently and expand their operations across the globe. The operational activities of the multinational corporate firm Body Shop further affects the international business environment in terms of rural expansion, digitalisation of the business, social development, economic activities and growth as well as positive environmental concern, culture and language, employment generation and technological advancement, which will be discussed further.

Impacts of the organisational activities in the host country

There are crucial impacts of the operational activities of the multinational corporate firms, where the organisations play important role in expansion of the market activities and establish the brand efficiently in the global market. The organisation Body Shop is a famous brand in the skin care and cosmetics as well as fashion industry, where string culture base and the product quality are the major strength of the organisation to run their business efficiently. The impacts of the operational activities of the organisation Body Shop in the recent era of globalisation on the country will be discussed further.

Larger market:

Globalisation plays a crucial role for the organisations mainly for the multinational corporations to expand their operational activities across the international market place and in the recent era of globalisation; the organisation Body Shop is efficient to expand their operations across the globe in order to gain high competitive advantage. In this regard, the activities of the company are effective to improve the market structure and it enhances larger market base where there is strong customer base across the international market place. The business activities are effective to expand the market structure and influence the customers to make effective purchase decision in the market (Weaving, 2017).

Economic growth:

Economic growth of the host country is another major impact of the organisation Body Shop, where the company’s activities are effective for the host country to enhance economic growth by improving the National Income of the country as well as enhancing the Gross Domestic Product (GDP). The production and manufacturing activities of the organisation Body Shop is effective to improve GDP and enhance the international trade in the host economy and it further enhances the economic activities of the country. Proper economic growth can be generated, where the purchasing power parity and the personal income of the customers can also be imported through the activities of the multinational corporate firms.

Social development:

Social development is another crucial impacts of the industrialisation of the multinational corporate firms and in this regard, there is sustainable social development in the economy, where the social communities are linked with each other and it further enhance their standard of living and wellbeing of the individuals in the society. The government takes positive initiatives with the help of the multinational corporations to create values for the social communities by prodding public services (Sun, Paswan and Tieslau, 2016). Additionally, people in the recent era of globalisation are educated well and they are concerned about healthy living as well as they try to grab latest information through online activities. These activities further enhance the pace of social development in the host economies.

Foreign investment:

Rising foreign investment is another impact of the increasing pace of industrialisation, where the multinational corporate firms like Body Shop expand their operations in the market and it is possible for them to raise foreign investment. Market attractiveness of the host country is increasing due to the business activities and it further attracts the foreign investors to invest in the host country for better performance and business expansion (Gaur et al., 2019). Hereby, investment by the foreign investors and the multinational corporations further strengthen their economy’s position in the global economy, the country becomes efficient to connect with other international countries for better performance and expansion of the economy.

Information and telecommunication:

Communication is another effective factor, which is important for the host countries to cooperate with other international nations and establish the region in the world economy. In this context, the activities of the multinational corporations are effective for the host countries to improve information and communication across the globe. Developing cooperation and collaboration with other international countries can be improved through enhancing information and communication (Tehseen and Sajilan, 2016).

Digitalisation and technological advancement:

In the recent era of digitalisation, the multinational corporate firm are able to enhance their performance through technological advancement and this further helps the host country to improve their efficiencies to perform better in the world economy. Globalisation is the reason which enhances the business environment with more technological advancement and the digitalisation of the business. Skill transfer and transfer of technology are effective for the host country to improve economic performance and innovation successfully.

Social community engagement:

Apart from the economic growth and social development, there is social engagement, through the online activities and the business promotional activities, where the people in the international nations are well knowledgeable about the international affairs and the company’s activities through social engagement (Hamid et al., 2017).

Employee management:

The host countries become efficient to mange labour migration and they encourage more labour to come into the economy for better performance. This further enhances the transfer of skill and technology, where the multinational firms are efficient to enhance the activities in the economy. Hereby, the global firms like Body Shop are efficient to manage the employees and maintain the global culture so that the cultural diversity can be tackled well. The leader and the managers try to treat all the employees fairly irrespective of their language gap, cultural differences, race and ethnicity as well as different values and beliefs. Hereby, as per the cultural perspective, the host countries become efficient to manage the workforce and enhance the activities of the multinational corporate firms to invest more and improve their business sustainably (Thu, and TIÊN, 2019).

Employment opportunities:

Employment opportunity is another effective impact of the organisational operational activities, where the organisation is able to create employment in the host country by hiring and recruiting the skilled workforce of the country (Chang, Ogasavara and Masiero, 2019). Hereby, it is effective for the country to have string employment opportunities and mitigate the issue of unemployment rate. The activities and expansion of the multinational corporations like Body Shop is effective to improve the employment rate and recruit the efficient employees in the organisation.

Cheaper consumer’s goods:

Expansion of the multinational corporations and the globalisation are effective to produce cheaper goods and services in the market, which is effective for the organisations to grab the customer base and market opportunities for successful expansion. In this regard, it can be stated that, cheaper consumers goods and services further attract the customers and it is effective for the host country to improve national income and it further provides scope to the organisation Body Shop to maximise their profitability.

Better economies:

The activities of the multinational corporations are effective to lead o a better economy, where the host country development can be ensured by the organisational activities. In this context, jobs are created in the economy; people can earn higher and better wage structure further helps to improve the standard of living of the social communities. Hereby, the economies lead to a sustainable position in the global economics, where the expansion of the multinational corporations like Body Shop is helpful for the host country to improve the county’s position in terms of trade and business.

Rural expansion:

Rural expansion is another effective impact of the expansion of the multinational corporations, where the organisational activities are effective to expand rural areas of the country, in such an era of industrialisation. There is industrialisation in the host country, with more opportunities of income generational and employment (Edwards, Schnyder and Fortwengel, 2019).

World peace and unity:

Globalisation brings the governments of the countries across the globe together, where there is political stability in the world economy and the government of each of the nations are collaborating with each other for better unity and peace (Scott-Jackson and Michie, 2017). The government invest more in the expansion of the multinational corporations like Body Shop and they try to enhance the operations across the international borders for expansion of international trade. The suitable tariff and quota system as well as the agreement of the international trade are effective to expand the activities and improve the economic condition of the host countries.

Better quality and variety:

The activities of the multinational corporate firms are effective to conduct more research and development in the economy for better quality and efficiency in producing goods and services in the economy (Zhang, Harzing and Fan, 2018). Hereby, in such an era of globalisation and industrialisation, it is possible to improve the performance of the host countries and conduct more research and development in order to improve the quality of goods and services and enhance the variety of the products and services in the market.

Innovation and creativity:

Innovation and creativity is another effect of the expansion of the multinational corporations, where the transfer of skill and technology as well as communication and cooperation further enhances innovation and creativity of the business. The organisation Body Shop is efficient to enhance the innovation and creativity of the business and it further enhance the skill and knowledge of the employees to utilise the latest technology and tactics to enhance creativity of the business (Amran et al., 2016).

Culture:

Culture is one of the crucial factors in the host country, which is influenced by the multinational corporate firm. Due to successful expansion of the industries, global culture has been established in the post countries, where the entrepreneurs and the mangers are efficient to develop suitable organisational culture as well as enhance the global culture with unity and inclusion of all the individuals irrespective of their cultural background, gender, race and ethnicity (Shirodkar and Konara, 2017). Hereby, cultural expansion and development of the global culture can be possible through the industrialisation process, where the company Body Shop can play crucial role in develop cultural unity where the managers can tackle the issue related to cultural diversity and resistance to change. Hereby, global culture with unity and cooperation are possible to create under such an era of globalisation.

Hereby, the activities of the multinational corporate firms are effective to develop the culture of the host countries, where the activities and the expansion process are important to play a crucial role for economic growth and social development. Additionally, there is cultural expansion, where the global culture can be developed with unity and cooperation. In this regard, the people are well acknowledged about the global cultural perspective and they are knowledgeable about the international activities. The transfer of skill and technology are effective for the host country to make it attractive for foreign investment. moreover, the cultural unity, using one common language, treating all the people fairly irrespective of their cultural differences and diversity in race, ethnicity, values and beliefs as well as encouraging more labour migration and proper management of the employees are effective to improve the position of the host economy in the world economy. Additionally, the government of the countries are collaborating and they support the expansion of the multinational corporation in such an era of globalisation and digitalisation which in turn help to enhance international trade and global business (Wiedmann and Lenzen, 2018).

Additionally, the people’s knowledge and skill is improved well in the recent years, where they become efficient to utilise technological advancement and improve their creativity and innovation to contribute positively in the organisational activities. For example, the Body Shop is efficient to run their business activities through digitalisation efficiently to grab the market opportunities and the activities of Body Shop are effective to improve the position of the host country in the global economy (Doytch and Uctum, 2016). The company is also effective to conduct research and development and encourage more diversify skill and latest technology for better performance. Hereby, the activities are crucial to contribute for social development and the economic growth of the host countries. The company is also efficient to generate emplacement in the country and grab new ideas for enhance in innovation and creativity and apart from that, international trade activities are improved though the operational activities of the multinational corporate firm Body Shop.

Conclusion

It can be stated that, the multinational corporate firms are efficient to run their business activities and it has crucial impacts on the country’s environment in terms of culture, employee management, generation of employment and economic growth. The country’s income and the international trade are enhanced well for the contribution and creativity and innovation of the companies like Body Shop. The global culture can be developed with proper unity and cooperation among the societies and the governments of the international countries across the globe. The international trade can be managed well as well as the attractiveness of the host country for more foreign investment can be improved in the recent years. Hereby, there are positive impacts of the multinational corporation’s operational activities on the country’s environment in terms of cultural expansion, economic growth and social development. The government and the people in the countries need to cooperate and collaborate for more business activities, taken place in the country for better economy and improvement of the standard of living of the social communities in the countries. Hence, innovation, digital literacy, job creation, cultural management, international trade activities, rural expansion and foreign direct investment are the major impacts of the operations of the multinational corporations across the globe.

Reference List

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