Globalization of Business

Question: Write a report on the globalization of business. Answer: 1.0 Introduction Globalization is the tendency of business firms in moving beyond the national and domestic market from internal market globally through increasing the interconnection of worldwide markets (Kuznetsov and Jacob 2015). Technology is the most important reason towards the growth of globalization. The blessings of advanced information technology have empowered the confidence of business firms through the flow of information across the world to invest in global business. Globalization increases the scope of the organization in taking the opportunity of technological advancement of different countries in which it operates (Kumar 2014). Apart from that, globalization increases the profitability of the organization by increasing sales volume in many worldwide markets. However, globalization also has certain issues associated with it. In globalization, the organization may face legal issues in terms of giving extra import duties and taxes. The organization may also face cultural barriers in glo balized business that can hamper the efficiency of business operation. The organization that is chosen for this study is Hewlett Packard, which is a renowned American information technology company (Hp.com 2016). The study will describe issues faced by the organization in it key strategy that is globalization. 1.1 Problem statement Hewlett Packard is highly popular in the international market and takes its strategic decisions in the right manner for globalized markets (Hp.com 2016). However, the organization is facing tough competition in outsourcing of its PC manufacturing department in international markets. This key strategy has also led to disintegration and fragmentation of the supply chain of the organization (Shao and Maher 2013). The purpose of the study is to identify the globalization issues of Hewlett Packard in the international markets. 1.2 Research Aims and Objectives 1.2.1 Research Aims The aim of the research is to examine the issue faced by Hewlett Packard in their globalized business. The research will find issues in the key strategies of the organization in relation to globalization. Apart from that, the research will also assist the organization in fixing the issues which are facing in their globalized market. 1.2.2 Research Objectives To identify the major factors associated with globalization of business To investigate the issues of globalized business in international market To examine the issues in globalization faced by Hewlett Packard To provide appropriate suggestion for Hewlett Packard for resolving the issues of Hewlett Packard in globalization 1.2.3 Research Question What are the major factors associated with globalization of business? What are the issues of globalized business in international market? What are the issues in globalization faced by Hewlett Packard? What strategy should Hewlett Packard take towards improving their globalized business? 2.1 Concept of globalization and strategic decision Globalization is the process through which organizations develop their international influence on the business through operating in international markets. The rationality of globalization can be seen in the fact of assisting the organizations in developing countries to catch up the organizations in industrialist countries by technological advancement and increased employment. According to Ueda (2012), globalization assists the organization in increasing their profitability by operating in expanded markets and increasing the sales volume. It has been found that Leading Edge Group of Australia has increased its sales by 40% though their globalized business (Bond and O'Byrne 2014). On the other hand, Lee, Shin and Park (2012) opined that through globalization, organizations can get cheaper resources from other countries in terms of employees, technology and other raw materials. It has been found that Eagle Boys Pizza in Australia operates globally so as to acquire cheaper raw materials from other countries (Vveinhardt and Dabravalskyt 2014). Strategic decisions related to globalization are most crucial factors for the success of the organization. According to Beck, Franke and Knig (2016) organizations takes critical strategic decision reading the policies to be chosen in globalization of the business. On the other hand, Voegtlin, Patzer and Scherer (2012) opined that the organizations have also to make right decision about operating in their global business. 2.2 Models of Globalization The model of globalization is very essential for the success of any organization in the global market. Globalization Maturity Model helps the executive of the organizations in selecting the right markets and operates successfully in the markets. According to Hirata, Kose and Otrok (2013), this model assists the board of directors of the organization in taking the strategic decision about globalization. On the other hand, Bond and O'Byrne (2014) opined that this framework facilitates the business executives of the international organizations in reducing the complexities associated with globalization and thereby making the right decision about investing in global market. This model is comprised of three phases for making globalized business successful. In phase 1 model, the organization initiates export processes in different countries in which they want to operate with an intention to increase their profitability. According to Shao and Maher (2013), in this phase the international organizations usually look for demand for their products in international markets. As per the demand of the market, these organizations assume their market reach and accordingly offer their products. On the other hand, Lee, Shin and Park (2012) opined that this phase also looks for the opportunity of the products in the international markets. In phase 2, the international organizations regionalize their products. According to Beck, Franke and Knig (2016), the international organizations ensure that they are adequately procuring and developing their technology for innovative products. On the other hand, Hirata, Kose and Otrok (2013) opined that in this phase, the organizati ons also look for the enablers of the business in terms of talent, capital and appropriate operating models. In phase 3, the organizations initiate governance and risk analysis for competing in new markets. 2.3 Issues in globalization and strategic decision Though globalization has enough blessings on the international organization in terms of technological advancement and expanded markets, it also has some issues that can hamper the progress of the business. According to Kumar (2014), international organizations have to pay extra import duties and taxes, which operates in developed countries and thus, it increases the cost of the company. It has been found that Leading Edge Group had to beat extra tax rate when operating in the New Zealand markets. On the other hand, Ueda (2012) opined that distance in globalized business reduces the oversight of the organization on globalized market. It has been found that Oporto restaurant is Australia sometimes fails to provide quality food due to lack of supervision of the food processing. According to Shao and Maher (2013), different cultural values associated with different international markets negatively influence the globalized business of organizations. It has been found that Eagle Boys Organ ization in Australia faced different cultural barriers in different international markets in regards to restriction in foods Lee, (Shin and Park 2012). 3.1 Method Outline Research approach facilitates the researchers in getting authentic information about the research study. The researcher can use two sorts of research approaches namely, deductive research approach and inductive research approach (Mackey and Gass 2015). The researcher will use deductive research approach as it aids in applying existing theories and models in conducting the research study and thereby reducing the time of the research. The researcher will use explanatory research purpose for conducting the research study, as it helps in identifying relationship within different variables of the research study (Neuman and Robson 2012). As the research study is based on primary data collection method, the researcher will choose survey and interview research strategy to collect relevant information from the respondents for completing the research study. For secondary data collection method, the researcher will opt for online journal, books and company websites with an intention to collect information (Anfara and Mertz 2014). With assistance of this secondary source, the researcher will be able to enhance the quality of the research output. 3.2 Data Collection Method Data collection method facilitates the researcher to assemble ample of relevant information, which fits the budget and time limitation of the research study. The researcher can use two sorts of data collection processes name the primary data collection process and the secondary data collection process. In secondary data collection process, the researcher will collect data from online books, journals and websites (Short et al. 2012). In primary data collection process, the researcher will use quantitative data collection techniques and qualitative data collection techniques. In quantitative data collection technique, the researcher will select a sample size of 50 employees from Hewlett Packard for conducting the survey. In qualitative data collection technique the researcher will select 3 managers of Hewlett Packard and arrange an interview with them for getting their views on the research topic. 3.3 Ethical Consideration The researcher will comply with all the ethical consideration for successfully completing the research study. The researcher will ensure that the information collected from the respondents is only for personal purpose and not for commercial purpose. All the participants will enjoy voluntary participation and the researcher will not force any respondents to take part in the research study. The researcher will ensure the confidentiality of the information collected from the respondents. The researcher will also ensure the transparency with the respondents in the time of research study. 3.3 Expected outcome From the literature review, it can be assumed that globalization has many of its associated issues in international market. It can be found from the literature review that globalized business can reduce the quality of the products of the international organization. Therefore, it is expected that this kind of issue can also be negatively influence the business quality of Hewlett Packard. On the other hand, it is also expected that the organization will also face high cost of production due to excess tax and import duties posed with globalized business. 4.0 Summary While summarizing the research proposal, it can be said that though globalization of business has many good thing in terms of expansion of market and cheaper raw materials, it also has some issues associated with it. The international organizations may face budgetary problems due to high taxes paid for international operation in developed countries. On the other hand, due to lack of concrete strategic decision in globalization, the organization may choose wrong international markets where the products may not garner large demand and this can hamper the progress of the business. The quality of the business can also be reduced due to lack of supervision in the international market concerning long distance. Reference List Anfara Jr, V.A. and Mertz, N.T. eds., 2014.Theoretical frameworks in qualitative research. 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