Unit 11 Conflicts of Globalization in Organizations Assignment

Unit 11 Conflicts of Globalization in Organizations Assignment

Unit 11 Conflicts of Globalization in Organizations Assignment

Program

Diploma in Business

Unit Number and Title

Unit 11 Conflicts of Globalization in Organizations

QFC Level

Level 5

Introduction

This unit 11 conflicts of globalization in organizations assignment study has been performed to know and understand the conflicts with the globalisation which the organisations have to face while starting operations in other countries. A literature review of advantages and challenges of globalisation has been done in the research report. Globalization is a very wide term which means intermixing of various cultures, economies, people and ideas. Globalization has made the world into a one single place where the people and organizations from different countries are gathered and interact with each other. Globalization not only offers various opportunities to the organizations but it also poses many challenges. It brings challenges in the corporate world as the organizations have to coordinate with different cultures, different demands of people and different factors which affect the demands of people in different countries. But on the other hand, globalization is the need of the hour as one cannot ignore the concept for the long term growth of the business or  organisation behaviour  (Wiersema& Bowen, 2008)

Unit 11 Conflicts of Globalization in Organizations Assignment

1.1 Formulate and record of possible research project outline specifications

Topic- The conflicts of Globalization in the organizations
Aim: The main aim of the research is to focus and analyse the conflicts which are caused by globalisation in the organisations
Objectives: The main objectives of this research are:

  • To discuss what is globalisation
  • To develop an understanding on the global change
  • To understand the advantages of globalisation for the organisations
  • To identify the challenges of globalisation faced by the organisations
  • To identify whether globalisation is good or bad for the business.

1.2 Identify factors that contribute to the process of research project selection and factors that motivated your choice of topic for research

The factors which contributed to the process of research project selection and the factors which motivated me to conduct a research on ‘The conflicts of Globalization in the organizations’ are:

  • The growing impact of Globalisation on the corporate world
  • Globalisation is the recent trend which has a very wide scope to study
  • To understand the pros and cons of globalisation and to know why the organisations are encouraged to follow globalisation.

1.3 Provide an initial review of the literature on your topic of choice

Globalisation is supported and objected by the people but the reality is that very organisation need the concept of globalisation as it links the part of the organisation to theworld which provides a huge scope for growth and success (Rachman, 2013).Globalisation affects the structure and culture of the organisations as every organisation has to follow the culture and policies of the country in which it starts its operations. It can be referred to the intermixing of thoughts, actions, ideas, culture and business of different countries or different parts of the world.  The cultures are blending and the culture and business of one country is getting affected by the culture of another country (Castello, et. al., 2011). There are some challenges which every organisation has to face when it goes global. These challenges are:

  • History and Religion of the countries
  • Pressure to survive in the new market
  • Variations in demands of the customers
  • Diversity in culture
  • Availability of resources
  • Changes in government policies and regulations
  • Changes in technology
  • Change in the pay structure of employees
  • Competition level (Padmanabhan, 2012).

On the contrary, Globalisation has several benefits which might be hidden but are necessary for the growth of the organisations.

1.4 Produce a research project specification (Research question(s))

These are the following research questions which have to be answered by conducting the research:

  • What is globalisation and what are the possible conflicts an organisation has to face because of it?
  • What are the advantages of globalisation for the organisations?
  • What are the challenges faced by the organisations because of globalisation?
  • Is globalisation good or bad for the business of the organisations?

1.5 Provide an appropriate plan and procedures for the agreed research specification (e.g. a Gantt chart).

Research Methodology:  Research project  methodology is the explanation of the methods and techniques which are been adopted for conducting the research and to reach to a conclusion. It includes data collection methods, research method and approach, sampling techniques and other techniques.
Research design:  It discusses the methods which are used for the collection of data for the purpose of conducting the research. Here, in this research the mixed method is adopted for conducting the research as the both the qualitative and quantitative data will be collected for making the analysis and to reach the conclusion of the research.
Research philosophy: This is the ideology which shows how the research will be investigated. The research is based on reality and it shows that the philosophy of the research is towards positivism.
Research strategies: The research staretgy shows that how the research will be conducted. The research will be conducted here by determining the objectives of the research first of all and then by reaching the objectives by collecting thedata from various resources and analysing the data with the help of various tools.
Research choice: Research choice shows that what is the most appropriate approach among various approaches for conducting the research and for this research, the choice is made by selecting mixed approach where the data will begathered by both qualitative and quantitative sources.
Data collection: data for the research will be collected from Primary as well as Secondary sources.

  • Primary sources: These are sources which are approached for the first time for the purpose of research like interviews, surveys, etc conducted for the first time.
  • Secondary sources: these are the sources which are already been used for some other work and now approached to get the help in conducting the research like journals, articles, websites, etc.  (Habib,et. al., 2014)

Sampling: Random sampling technique will be used for distributingthe questionnaire to the 20 firms selected randomly from the organisations which are carrying on their operations globally in different countries.
Validity and reliability of research: The research is valid and reliable as the data used in the research has been referenced properly to show its source and it will be presented fairly.
Ethical consideration: The data collected from different organisations through survey will be protected from passwords to increase its security.
Time Horizon: The time horizon for research is been explained with the help of below given action plan and  Gantt chart which shows how much time is taken in completing each activity of the research.

Action plan

Actions

Initial date

Time duration

Achievement Date

Explanation

Initial planning for the project

10 July 2016

03 days

12 July 2016

Here, the plans are made for the research program.

 Data gathering

13 July 2016

09 days

21 July 2016

Data is gathered from various resources

Analysis of data

21 July 2016

09 days

29July 2016

Data collected is analysed through various tools and methods

Conclusions and recommendations

30July 2016

05 days

03 August 2016

The final conclusion of research is derived and recommendations are provided in the end.

Gantt chart

Gantt chart

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Research report

2.1 Match resources efficiently to the research question or hypothesis.

Globalization is a very wide term which means intermixing of various cultures, economies, people and ideas. Globalization has made the world into a one single place where the people and organizations from different countries are gathered and interact with each other. Globalization not only offers various opportunities to the organizations but it also poses many challenges. It brings challenges in the corporate world as the organizations have to coordinate with different cultures, different demands of people and different factors which affect the demands of people in different countries. But on the other hand, globalization is the need of the hour as one cannot ignore the concept for the long term growth of the business or organisation (Dignam&Galanis, 2016).

Globalization

Globalization unifies not only the processes of businesses but also the cultures and technologies. It supported not only the growth of technology but also of infrastructure which includes communication, transportation, development of  employee relationship  investments and the reduction in costs (Garcia, et. al., 2011).Globalization brings shift in the knowledge and technological knowhow from one country to another. Globalization is advantageous to the business because:

  • It builds up healthy competition: This is the biggest benefit of globalization because it enhances the competition among various foreign and domestic companies. The standard of living of population increases as they get better products in competitive prices.
  • Technological knowhow: Globalization results in the shift of innovative technologies from one country to another. The knowledge base of the countries and companies enhances with different technologies and their usage.
  • Rise in investment: Globalization helps in the growth ofindustries. The utilization of resources and capabilities in a better way leads to the growth of industries of different countries. When different companies enter a particular country, it enhances investment and also creates lot of job opportunities in the country which increases the living standard of people (Garfinkel, et. al.,  2008).
  • Increased customer base: due to globalization, the no of customers for the business increases as the gates of other countries gets open for the business products or services. This also helps in expanding the business and area of operation.
  • Evaluation of performance of business: globalization helps in the evaluation of the performance of the business in the international market. It helps in the evaluation of the effectiveness of the products or services offered by the business as the product or service is competing with the other international brands (Gomory&Baumol,  2009).

Globalisation is supported and objected by the people but the reality is that very organisation need the concept of globalisation as it links the part of the organisation to theworld which provides a huge scope for growth and success. Globalisation affects the structure and culture of the organisations as every organisation has to follow the culture and policies of the country in which it starts its operations. It can be referred to the intermixing of thoughts. Actions, ideas, culture and business of different countries or different parts of the world.  The cultures are blending and the culture and business of one country is getting affected by the culture of another country. There are some challenges which every organisation has to face when it goes global. These challenges are:

  • History and Religion of the countries: every country has different history and religion followed by people which is to be followed by the organisations while going global. Each country has different customs, festivals and holidays which makes the working days and timings different in different countries even in the same organisation. It affects the operations of the organisations. For e.g. Unilever has to give off to the workers in India on Indian festivals which affects the business of Unilever in India (Berry, 2011).
  • Pressure to survive in the new market: When any organisation goes global it has a pressure to survive in a completely new market. A new market is completely new in terms of resources, culture, choices and tastes of customers and many more.
  • Variations in demands of the customers: The demands of the customers are different in different countries. These demands are influenced because of many factors like society, culture, reference groups, age, gender, income level and more. For e.g. the customers of different countries are fond of different types of foods. Some may prefer vegetarian food while others prefer non vegetarian food (Crane &Matten, 2016).

Variations in demands of the customers

  • Diversity in culture: Culture is a very big barrier for the organisations while going global. Every country has different culture and it is not easy for any company to adopt and understand the culture of a particular country so that its products and services are accepted by the population of the country. For e.g. in some countries people do not have good feelings towards an American company so they do not accept the products and services of an American company easily. To meet this challenge, companies should localize their operations. They can hire the local staff, use the products of local suppliers and should also involve in some social corporate responsibility to win the hearts of the people. Proper branding and advertising could also help in getting success in any country(Cultures and Globalization: Conflicts and Tensions, 2009).
  • Availability of resources: Every country is different in terms of availability of resources which is to be faced by the organisations. Some countries have abundant amount of resources while others have limited resources. To run the operations in different countries, organisations have to consider these factors.
  • Changes in government policies and regulations: Each country is different in terms of rules, regulations and laws. The government of every country makes different laws which have to be followed by the companies. USA has different policies for industries and UK hasdifferent laws which have to be followed by the companies for smooth and fluent operations.
  • Changes in technology: Each country has to mould its working patterns and operations according to the availability of technology in the country. The technology in every country is dependent on its capability to innovate, environment and locality. Same technology may not be applicable to the operations of same company in different countries which is because of different geographical locations and costs incurred for using thetechnology (Axford& Huggins, 2011).
  • Change in the pay structure of employees: The salaries or wages paid to the employees or workers in different countries are not same. The pay structure may be dependent on the economic condition of the country. In developed countries, the employees get higher pay and in developing and underdeveloped countries the pay structure or amount of pay is lower. The countries tries to set up its operations in the country where cheap labour is available but this is not the not aspect which is been considered for going global. The other factors like technology, political stability or costs are also considered.
  • Competition level: the competition level is different in various countries. When a company set up its operations in any country, the existing companies may give fierce competition to the new entrant whom is tough to handle without proper strategies and management. While in other countries the level of operation might be lower where it is very easy to adjust and take over the customers and business of existing firms. The possibility of future growth is dependent on the level of existing competition in any industry of a particular country (Dawson, 2009).

The business has to adapt to various cultures, structures and demands of people. Different market scenarios provide different advantages and challenges to the businesses. Globalisation as already discussed is essential for the exposure to the business. It provides an advantage to the companies to buy cheap raw materials from one country and to convert it into finished goods in another country where cheap labour is available and to sell where the products are sold at a good amount of price. It helps in utilising the best of every nation and to be successful in future. It brings different nations closer to grow and prosper together.

2.2 Undertake the proposed research investigation in accordance with the agreed specification and procedures

Introduction: Research methodology is the explanation of the methods and techniques which are been adopted for conducting the research and to reach to a conclusion. It includes data collection methods, research method and approach, sampling techniques and other techniques. This research uses the primary and secondary sources for collecting the data which means that the research approach is mixed where both the primary and secondary approaches are used. The methods and techniques followed are explained below:

Research design:  It discusses the methods which are used for the collection of data for the purpose of conducting the research. Here, in this research the mixed method is adopted for conducting the research as the both the qualitative and quantitative data will be collected for making the analysis and to reach the conclusion of the research. The quantitative data will be collected through questionnaires which will be distributed to 10businessescorporate which hold its business lines in different countries and the qualitative data will be collected through secondary resources like newspaper articles, websites, journals, etc.
Research philosophy: This is the ideology which shows how the research will be investigated. The research is based on reality and it shows that the philosophy of the research is towards positivism. It is because the topic of the research is dependent on the real issue.
Research strategies: The research strategy shows that how the research will be conducted. The research will be conducted here by determining the objectives of the research first of all and then by reaching the objectives by collecting thedata from various resources and analysing the data with the help of various tools. These sources are survey questionnaire and secondary resources and the tools by which evaluation can be done are tables, charts and graphs.
Research choice: Research choice shows that what is the most appropriate approach among various approaches for conducting the research and for this research, the choice is made by selecting mixed approach where the data will begathered by both qualitative and quantitative sources which are survey questionnaire and data from newspapers and internet.
Sampling: Random sampling technique will be used for distributingthe questionnaire to the 20 firms selected randomly from the organisations which are carrying on their operations globally in different countries.The sales and marketing professionals of these organisations are required to fill up the questionnaires. 153 questionnaires were distributed out of which 100 responses were received. So, the sample size is 100.
Limitations of Research: The limitations of data include the small sample size on the basis of which the whole analysis of research has been done and the conclusions are made. This might be the misleading conclusion. There are limited resources for conducting the research like time and money which is a limitation to the collection of data from large sample.
Validity and reliability of research: The research is valid and reliable as the data used in the research has been referenced properly to show its source and it will be presented fairly the data is been protected strongly with the strong passwords so that no unauthorised access can be done to the data It will also protect the data collected from viruses or bugs which can harm the data.
Ethical consideration: The data collected from different organisations through survey will be protected from passwords to increase its security. The confidentiality will be maintained for the data collected from the respondents and will be presented in the results of the research as they are collected, without any alteration with the data.
Time Horizon:  The time horizon for research is been explained with the help of below given action plan and  Gantt chart which shows how much time is taken in completing each activity of the research.

Action plan

Actions

Initial date

Time duration

Achievement Date

Explanation

Initial planning for the project

10 July 2016

03 days

12 July 2016

Here, the plans are made for the research program.

Data gathering

13 July 2016

09 days

21 July 2016

Data analysis  is gathered from various resources

Analysis of data

21 July 2016

09 days

29 July 2016

Data collected is analysed through various tools and methods

Conclusions and recommendations

30 July 2016

05 days

03 August 2016

The final conclusion of research is derived and recommendations are provided in the end.

Gantt chart

Gantt chart

2.3 Record and collate relevant data where appropriate

Questionnaire

Please fill up the questionnaire below:

1. Globalisation opens more opportunities for the business.

  • Highly agree
  • Agree
  • Neutral
  • Disagree
  • Highly disagree

2. Globalisation of business leads to more profitability for business

  • Highly agree
  • Agree
  • Neutral
  • Disagree
  • Highly disagree

3. The business have to completely change its culture and structure while going global

  • Highly agree
  • Agree
  • Neutral
  • Disagree
  • Highly disagree

 4. Globalisation leads to healthy competition

  • Highly agree
  • Agree
  • Neutral
  • Disagree
  • Highly disagree

5. Globalisation enhances the health of the economies

  • Highly agree
  • Agree
  • Neutral
  • Disagree
  • Highly disagree

6. Globalisation affects the price of the products

  • Highly agree
  • Agree
  • Neutral
  • Disagree
  • Highly disagree

7. Globalisation affects the local industries of the other countries

  • Highly agree
  • Agree
  • Neutral
  • Disagree
  • Highly disagree

8. Globalisation promotes trade and healthy relations between countries

  • Highly agree
  • Agree
  • Neutral
  • Disagree
  • Highly disagree

3.1 a description of methods you will use to analyse the data collected

There are certain methods used for collecting the data for the research. Data for the research will be collected from Primary as well as Secondary sources.

  • Primary sources: These are sources which are approached for the first time for the purpose of research like interviews, surveys, etc conducted for the first time. This is the raw data which has never been used before by anyone.
  • Secondary sources: these are the sources which are already been used for some other work and now approached to get the help in conducting the research like journals, articles, websites, etc. This is the data which has already been extracted and used and now it is supporting the primary data collected by the researcher (Saunders, et. al., 2009).

3.2 An analysis of the data and an interpretation of results in terms of the original research specification

In this section, the interpretation of the results collected from the survey will be done and will be presented in the form of tables and charts.

Table 1 Globalisation opens more opportunities for the business

Globalisation opens more opportunities for the business

Analysis: The corporations of UK which also operates globally in many countries are asked that do Globalisation opens up more opportunities for business  and most of the organisationsare i.e. 30% of them highly agree on the statement that yes globalisation opens more opportunities for the business. It provides more resources; capital and customers to the business which when utilized properly can create wonders for the business growth. Only 5% of them disagreed.

Table 2 Globalisation of business leads to more profitability for business

Globalisation of business leads to more profitability for business

Analysis: 30% of the organisations were neutral on the statement that Globalisation leads to the higher profitability of the business and 15% highly agreed while 20% highly disagreed. The responses received are of mixed opinions for the statement. It shows that it is not sure that every business which starts global operations might get increased amount of profits. Some organisations may have to face loss due to various barriers which are faced by them like cultural barriers, political and social barriers, etc. When these barriers are overcome properly, the profitability might increase.

Table 3: The business has to completely change its culture and structure while going global

The business has to completely change its culture and structure while going global

Analysis: When the professionals are asked about the change in the structure and culture of the organisations completely while going global, most of the respondents were neutral about this (30%) and 20% highly agreed with the same and 15%, which is the lowest, highly disagreed. The results of the survey show that the company and the change in its culture depend on country to country in which it starts its business. Some countries and their culture is not different than the home country ofthe company while some countries are entirely different which have to be dealt with the changes made in the operations For e.g. The company operating in Britain does not require to make too many changes while settling its  business strategy  in Germany but it has to change its culture while starting its operations in Asian countries. So, it depends on country to country.

Table 4 Globalisation affects the price of the products

Globalisation affects the price of the products

Analysis: The above chart of responses shows that theorganisations highly agree on the statement that yes, Globalisation affects the prices of the products. Only 3% of the respondents highly disagreed on that. It is because of thereason; the prices of the products have to differ in every country because of its costs incurred. In some countries, the cost of production is lower while in other countries it is more. Globalisation provides the companies an opportunity to produce the products in the lowest costs possible which affects the prices of the products.

Table 5 Globalisation affects the local industries of the other countries

Globalisation affects the local industries of the other countries

Analysis: The respondents are asked that what do they think about the impact on the local industries because of globalisation and 25% said that yes they agree that because of globalisation many small industries, the support industries gets boom because of theincreased no of organisations in the country while many local industries are negatively affected because the business is divided and shared by the foreign organisations. Only 10% highly disagreed with the same. This shows that the support industries are benefitted but the local companies are facing challenges to capture more customers and retainthe existing ones after the emergence of new foreign companies.

3.3 Recommendations and justifications of areas for further consideration

Recommendations: The responses are analysed which are been received from the survey and the secondary data has also been collected. It is been clear from the analysis that Globalisation is a new phenomenon which is to be adopted and experienced by every organisation because the world is a global village now and exchange of products and services have become a necessity in our lives but there are many conflicts and challenges which are creating  a problem for the organisations. The following recommendations can be helpful for dealing with the conflicts of the globalisation which are to be faced by the organisations while starting business or running the operations in different countries:

  • Proper research: the companies should carry on efficient market research before starting its operations in any other country. A complete market research helps the company to know about the possibility of growth, availability of opportunities, availability of resources and possible challenges in the country. A company should do a proper analysis of costs and benefits before staring operations in some other country. It will help the business to take measures in advance and the business will not get affected.
  • Adopt the culture: the business should adopt the culture of the countries in which it is going to start its operations. It will help them in fighting with the protests by the local industries and the customers or consumers will also accept the brand as the brand of their own nation. The suppliers selected should be local so that the local industries get boom and the products and services should be designed in accordance with the culture, climate and beliefs of the country.
  • Try to fulfil the demand: The companies should try to analyse that what is the current trend, demands or requirements of the customers and then should try to provide the goods and services which cater the needs of the local consumers. For e.g. a food and beverage company have to focus on the Chinese flavours while starting its operations in China. They have to develop the products in Chinese taste and flavours.
  • Marketing and promotion: This is the most important concept nowadays. To set up the business in other country, a company should advertise and promote its products and services to which people get attract and they become influenced by the product or service. For e.g. people of Britain are influenced by Cricket in sports so a company which wants to expand its business in Britain should advertise its products and services by following the cricket theme or can sponsor a game of cricket.

Justifications of areas for further consideration: This research is based on the conflicts of globalisation in theorganisations as it is one of the most discussed topics in the world. The areas for further research consideration are given below:

  • Globalisation: Destruction of local culture
  • Globalisation issues
  • Impact of globalisation on underdeveloped countries

Presentation

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Conclusion

It can be concluded that Globalisation is showing its impact at a high pace and it is bringing the nations closer and together to achieve high levels of growth and success. But on the other hand, it is posing many difficulties to keep up with the new developments as he trends and demands of the consumers are changing day by day and there are many other challenges which are to be faced by theorganisations but these can be met by doing proper analysis of markets and by adopting the different cultures and customs while doing the business globally. But globalisation is needed as it is need of the hour.

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References

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Crane, A. &Matten, D. 2016,Business ethics: managing corporate citizenship and sustainability in the age of globalization, Fourth edn, Oxford University Press, Oxford.
Dawson, C. (2009). Introduction to Research Methods: A Practical Guide for Anyone
Dignam, A. &Galanis, M. 2016;2009;2013;, The Globalization of Corporate Governance, Routledge Ltd, Farnham.
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Habib, M., Pathik, B.B. & Maryam, H. 2014, Research methodology - contemporary practices: guidelines for academic researchers, 1st edn, Cambridge Scholars Publishing, Newcastle upon Tyne, UK.
Moncada-Paterno-Castello, P., Vivarelli, M. & Voigt, P. 2011, "Drivers and impacts in the globalization of corporate R&D: an introduction based on the European experience", Industrial and Corporate Change, vol. 20, no. 2, pp. 585-603.
Padmanabhan, N. 2012, "Globalisation Lived Locally: A Labour Geography Perspective on Control, Conflict and Response among Workers in Kerala",Antipode, vol. 44, no. 3, pp. 971-992.
Rachman, G. 2013, Champion of globalisation who fought for nation state: Worldwide impact, London (UK).