• Posted on February 28, 2023
• Unique Submission Team

Management across Industries Assignment Sample

Introduction   

Globalisation has led to integration and interdependence of the Global economies with rising trade and increased movement of labour and capital (Ritzer and Dean, 2019).http://Management across Industries Assignment Sample It has also raised competition by lowering the prices and providing variety in products and services.

The impact of globalisation has also contributed towards the liberalisation of trade and integration of world economies which has positively and negatively impacted the global world.

This report has analysed the impact of the business environment and globalisation on the UK economy by setting out the effects of trade liberalisation and integration of economies.

The study is further supported by introducing these theories and analyses based on the business environment. Moreover, the report will also apply different management principles in various industries present in the UK, quoting relevant cases and examples.

Lastly, the report will shed light on the results of globalisation and liberalisation on the UK’s overall trade and economic opportunities.

Impact of globalization on business and economy globally

Globalisation has led to an increase in world output and trade. However, the trade intensity has declined due to the flow of services, and data plays a significant role in the global economy.

The services trade is going faster than goods which have created value chains for international countries.

In addition to this, the global value chain is becoming knowledge-intensive as low skilled labour is becoming a significant factor of production (Bhosale, 2015). The global economy has seen a structural shift due to globalisation and trade liberalisation.

Globalisation has increased trade, but the share of output worldwide has declined from 28.15 % to 22.5%. The services trade has increased 60% faster than goods trade globally, and IT sector IPR and business services are overgrowing (Lund et. al. 2019). http://Management across Industries Assignment SampleThe increased competition has given rise to regional value chains as the transportation and communication costs have decreased to global value chains expanding in developing countries (Erixon, 2018).http://Management across Industries Assignment Sample

Regionalisation has increased due to global innovations in value change. The integration of suppliers, just-in-time Sequencing, and automated processes reduced the labour cost and increased the significance of speed to reach the international market.

Furthermore, the new technologies that have contributed towards digital globalisation have decreased the transaction costs and have enhanced the trade flows. IT technologies and data processing techniques have reduced cross-border transactions.

They have increased outsourcing and innovation, which has enabled all types of goods and services to flow in the global market (Vivarelli, 2018). http://Management across Industries Assignment SampleThe technological trade flow will lead to a rise in competition and a decline in operational costs.

This will require the international organisations to be more adaptive, flexible and resilient towards new trends and economic opportunities.

Influence of trade liberalisation and globalisation on UK business and economy

Trade liberalisation is defined as removing restrictions or trade barriers to exchange goods and services across different nations freely. The removal can be in terms of tariffs or quotas or licensing rules and regulations. Trade liberalisation provides an excellent opportunity to develop a strong economy.

However, it can be a burden for weaker economies. Globalisation, on the other hand, globalisation connects a nation with the world by integrating economies, culture, identities and enjoying free trade (Cleveland et. al. 2016). http://Management across Industries Assignment SampleLiberalisation and globalisation of the economy have posed a severe impact on the development of the UK economy, explained below:

Increased trade: Globalisation has led to increased trade among UK firms due to the specialisation of goods, providing a comparative advantage to the country regarding export goods such as video gaming, financial services, and nuclear power.

Greater import choices: Globalisation has significantly contributed to increasing consumer goods’ choices, due to which the availability of fruits, vegetables, and other imported goods has become easier.

Low prices and enhanced competition: Free liberalisation and globalisation create domestic monopolies leading to higher International competition. This leads to reducing the prices and increasing the bargaining power of consumers (Zeibote et. al. 2019). http://Management across Industries Assignment SampleThis is particularly noticeable in UK Industries in relation to electronics, clothing, food, which are mainly imported in the UK.

Low firm cost: Globalisation has also increased the outsourcing of the products and processes such as web development and knowledge processing across two countries, which have lowered labour costs.

This has enhanced the effectiveness of firms to use technology to interact with the global world thus, reducing the cost and prices (Lund et. al. 2019). http://Management across Industries Assignment Sample This, in turn, also affects job losses and lowering service quality leading to structural unemployment.

Unemployment: As globalisation has made connections to the world economy, the sectors of the economy has been experiencing a structural shift as the developing countries have an advantage of low labour cost, which leads to better productivity compared to the developed organisation (Moak, 2017). http://Management across Industries Assignment Sample

As the labour cost is high in the UK, it leads to low demand of labour which leads to unemployment or shift of jobs to low labour cost countries through outsourcing.

Tax avoidance: Globalisation has enabled firm to shift their focus to produce in less taxable countries to have the advantage of tax avoidance. However, this leads to the UK losing out on the tax revenue in its treasury.

Inequality: Inequality in terms of development due to globalisation is also a defect where the highest share of income is mostly with income earner. The poverty line has not affected much because the gaps between income equalities have increased. The uniformity of development has not yet been achieved in the UK as a whole.

Environmental impact: Globalisation and liberalisation have greater implications on the environment (Kolcava et. al. 2019).http://Management across Industries Assignment Sample

Like global warming, greenhouse gases, carbon emissions and other manufacturing activities, the overutilisation of natural resources are raising the pollution and degradation of the environment, which has become the main concern for the whole human life.

Global economic cycle: UK is easily affected by the global economic cycle as a recession in the EU or USA affects the UK. It highly relies on these countries for export (Maesse, 2018).http://Management across Industries Assignment Sample

This has a high negative impact on the overall economy of the United Kingdom as this leads to financial crises and changes in economic trends due to shifts in economies.

 Increased migration: Globalisation has made migration easier to enter and work in the UK. Besides this, the free movement of labour helps the United Kingdom provides employment opportunities to firms facing labour shortages.

Migration has also posed a greater threat to the housing and public services in the UK, which has led to the overutilisation of land and forest covers for providing basic amenities to the population.

Globalisation effect, Brexit and trade effect in the UK:

The trading post-Brexit has become difficult for the UK economy as the companies who once had greater access to the European market are exposed to tariff and non-tariff barriers (Van Reenen, 2016). http://Management across Industries Assignment Sample

This has increased the cost of the business in various sectors across technology, healthcare, and consumer goods. However, due to the added cost, the exposed sectors will see a decline in exports resulting in a change in UK’s economic development.

UK is highly dependent on EU countries for its exports. The reduced exports lead to a fall of 4.3% post Brexit. Moreover, there will be more unemployment in the UK economy as the EU provides more than a quarter of the total country’s workforce.

Furthermore, future trade agreements will require greater movement and easy migration to compensate for the shortage of skilled labour in the UK (Ciuriak et. al. 2015).http://Management across Industries Assignment Sample Further, the UK future trade dealing with third countries will be defined by how intense relations are maintained and what negotiations are served in its new trade policy.

For the free trade movement with third countries, UK organisations must focus on different trade deals, open strategies that new relations with third countries can facilitate arrangements between the third countries and the UK. This will provide greater importance to their business model and help reposition their economy at the world level.

This has posed a question on globalisation, which has been rejected by the Brexit event (Green, 2019). As globalisation has led to income inequalities and the absence of inclusions of EU countries, the effect of globalisation on the UK economy has failed to unify the country and restricted its contribution towards building a globalised market but not a globalised economy (Hirst et. al. 2015).http://Management across Industries Assignment Sample

Theories of globalisation in UK context

A globalisation theory is a characteristic sketch of different aspects of globalisation perceived by different countries to support economic growth and international trade. There are various theories of globalisation that have been classified under different categories:

Liberalism: The liberal theory is a process of extension of modernisation and the basic freedom to maximise material well being, human welfare and political liberty through technological advancements and liberal democracy (Freeman, 2017).http://Management across Industries Assignment Sample

As the UK is a developed country, technical, standardisation, Administration and institutional infrastructure present, and another translation arrangement among languages, contract and property rights, laws and regulations, are highly structured to support economic growth and political liberty.

However, with development, the structural power inequality, gaps and power hierarchies between cultural resources and states exist in the UK economy (Allan, 2017).http://Management across Industries Assignment Sample

Political realism: The theory of political realism focuses on the balance of power. Here, the dominance is counted by resistance from other states in pursuing the national interest (Bell, 2017).http://Management across Industries Assignment Sample As the UK highly politically realist country, it highlights the issues of power and power struggles in generating global relations.

As the UK most focuses on the acquisition and exercising power in relation to the globalisation concept to generate profit and surplus accumulation.

Besides this, the power relations based on class, culture and gender, also affect the UK globally as structural inequalities exist inside the country.

The recent Brexit is a larger example of the cultural `hierarchy, class inequality, and patriarchy’ (Bell, 2017).http://Management across Industries Assignment Sample Moreover, agencies, private bodies, macro-regional institutions, production and consumption of resources are other factors that shape globalisation and are shaped by globalisation in the UK.

Positive and negative influences of globalisation on industries:

It is evident that globalisation has changed the way industry and businesses operate. In the competitive and challenging business scenario, the industrial sector is a major affected one positively and negatively (Adeitan et. al. 2021).http://Management across Industries Assignment Sample With the emergence of globalisation, industries are expanding their business operations to international boundaries.

Industries including retail, technology, health care, automobile, and financial become independent to proceed with their functioning’s in the global world. Industrial competitiveness signifies the ability of the country to manufacture goods and services as is linked with economic growth.

There are several management principles applies within an industry to facilitate its functioning in the global scenario.

• Division of work among the staff increases the quality of the work and thus improves productivity. These management principles focus on maximising the accuracy, speed, and quality of the task.
• On one side, authority makes the management responsible for working efficiently, and on the other side, responsibility makes them accountable and responsible.
• Remuneration is the key motivating factor that makes the workers enthusiastic about working better (Moak, 2017).http://Management across Industries Assignment Sample Motivation is significant to encourage the employees, and it can be either financial or non-financial.
• Equality is an essential aspect of a business organisation. In a global world, employees of diverse cultural backgrounds work together to attain a common goal. In such a scenario, the management must treat every employee in an equal manner without discrimination.
• Job security is essential to expect stability from the employee, and hence the industrial management must provide job security to the employees.
• Every employee must be aware of the immediate reporting authority to reduce the miscommunication and duplication of work.
• The company’s management must encourage and support its workforce to contribute and initiate the practices and decision-making of the organisation. This will enhance their interest in the business enterprise and also makes them feel valued.

Considering the case of the automobile industry, it has experienced a significant transformation in recent years. The exports and import ratios have increased (Bhosale, 2015). http://Management across Industries Assignment SampleDue to foreign direct investment, the producers and exporters of the automotive industry have emerged in low-income nations.

With the increasing numbers of businesses in the industry, competition among the automotive business has also enhanced, including Volkswagen, Toyota, and Tesla. While expanding the company in the foreign market, analysis and Audit of the business environment is crucial to sustaining in the country.

The competition has been increased a lot in various countries in different industries (Ramrattan, 2017).http://Management across Industries Assignment Sample Therefore, pestle analysis and competitive analysis are the strategic tools to analyse and audit the economy’s business environment. Pestle analysis tool includes political, economic, social, technological, legal, and environmental factors. These strategic frameworks and theories of the business environment will prove helpful in evaluating various aspects and dimensions that must be considered while establishing a business in another nation.

Although globalisation has developed the relationship between worldwide economies and has influenced international trade and investment, thus it results in increased sales and profitability of the industry.

However, it is also evident that there are some adverse impacts of globalisation on the various sectors. Globalisation has contributed to increased economic growth for multiple countries, but the development is not equal; with this concept, the more prosperous countries got more benefits than the developing and underdeveloped nations (Bukhari and Munir, 2016). http://Management across Industries Assignment SampleThe rise of global industries has dominated the local businesses and industries and exploited the cheap labour market.

Positive and negative influences of globalisation on employment and job creation

Globalisation has increased employment opportunities for the people of various countries (Nayyar, 2015).http://Management across Industries Assignment Sample The competent and skilled workforce is allowed to move to a different country for job creation. They are not restricted to a single country for their employment.

Economic globalisation created a significant impact on the number of jobs that are available in the economy. Globalisation has made it easy for individuals to look outside the country of origin to earn more revenue and enhance their living standards. For example, jobs and employment opportunities for further growth in developed countries are maximum and thus, people are free to move to that country.

This can be illustrated by taking the example of Apple Incorporation and Google. Such tech companies are one of the leading and most prominent companies globally and offer employment opportunities and job creation opportunities to millions of people from different nations around the globe. The company seeks competent and qualified employees, and everyone is independent to apply to the companies of other countries.

Similarly, the businesses are expanding their operations and developing wholly-owned subsidiaries in other nations, which is also a job creation opportunity for the host nation’s people.

The international expansion of businesses in different industries offers multiples work opportunities in other areas and fields (Kuruvilla, 2020). http://Management across Industries Assignment SampleTherefore, with the emergence of globalisation, the competition in numerous industries has also increased. The establishment of small and large corporations provides various work and growth opportunities to individuals.

For example, the consumer goods industry has a large number of companies all over the world. In the context of Unilever PLC, a British multinational consumer goods company incorporated in England, deals in numerous products and owns around 400 brands. The company has businesses in approximately 190 countries which is providing career opportunities to many individuals globally.

Globalisation has increased competition among the various industries and companies, leading to closures of businesses and thus job losses (Vivarelli, 2018). http://Management across Industries Assignment Sample

Companies that cannot survive in the competitive business environment have to shut their businesses, and hence the people working in the company face their job loss.

Job insecurity is the most significant disadvantage of globalisation that impacted job creation and employment opportunities in the world. Developed countries prefer to hire outsourced manufacturing and white-collar jobs, which lessens the possibilities for the people of that country.

This is because most businesses outsource the manufacturing workforce from the place where they find the labour rates relatively lower than their own countries. This outsourcing adversely impacts the people of their nation globalisation results in the exploitation of the labour force.

Positive and negative influences of globalisation on culture

Every country has their different culture, ideology, beliefs, and languages. While working in a global platform, one must consider and adopt the cultural differences to perform the functioning in a smooth manner.

It can be said that globalisation has a significant positive impact on the different cultures of the world. On the one hand, it allows the individuals to communicate and interact with one another and to learn about distinguished cultures of each other (Beck, 2018). http://Management across Industries Assignment SampleIt expands the cultural contacts and facilitates bridging the gap concerning communication and knowledge.

While working in a business organisation or managing a business enterprise, one must deal with a diverse workforce with different cultures and language knowledge.

On one side, it can be said that it is profitable for the organisation as experts in various areas contribute to the development and growth of the company in the host economy (Crothers, 2021).http://Management across Industries Assignment Sample Apart from this, negative influence of this factor can be identified as miscommunications and differences between the organisation’s employees due to cultural barriers.

The national culture plays a crucial role in shaping the organisational business strategy and work environment (Samiee, 2019). http://Management across Industries Assignment SampleThe nation’s culture influences the people’s choices, tastes, demands, and lifestyles, which affect their spending patterns. The company’s focus is on embracing the culture of the economy to attract customers.

For example, McDonald’s is an American fast-food company that offers food products and serves worldwide. It operates its business in numerous countries and is the world’s largest chain of restaurants in terms of revenue, serving more than 69 million customers every day in around 100 countries. McDonald’s has been able to succeed in its business by adopting the culture of the people.

The company firstly identifies the tastes and preferences of the people of the nation, and based on that; it offers its food products to them. Thus, culture plays a prominent role in the long-term survival of a business organisation. Globalisation has a positive and negative influence on the cultural aspect of the nation (Pieterse, 2019). http://Management across Industries Assignment SampleThe businesses are responsible for assessing the needs and preferences of the individuals of the target customers. The social determinant is the component of PESTLE analysis, which can be taken into account to assess the same.

Conclusion

Thus, from the above study, it can be concluded that globalisation is the concept that has changed the working of the whole world. Globalisation has connected the international Markets and allowed businesses to manage their operations on a worldwide platform.

The report reveals that globalisation has some positive and negative impacts on Industries, companies, employment opportunities, and different cultures. Globalisation encourages foreign trade, effective utilisation of resources, foreign investment, and competition. However, on the other side, there are some negative influences of globalisation that include job insecurities, fluctuation in prices, increased poverty, and unemployment.

References

Books and Journals

Adeitan, A.D., Aigbavboa, C. and Olubiyo, O.C., (2021, July). Impact of Globalisation on Current Practices in the Supply Chain Management of SMEs. In International Conference on Applied Human Factors and Ergonomics (pp. 208-214). Springer, Cham.

Allan, J., (2017). Democracy, Liberalism, and Brexit. CARDozo L. REv., 39, p.879.

Beck, U., (2018). What is globalisation?. John Wiley & Sons.

Bell, D., (2017). Political realism and international relations. Philosophy Compass, 12(2), p.e12403.

Bhosale, S.K., (2015). Impact Of Globalization On Industry. Sage.

Bukhari, M. and Munir, K., (2016). Impact of globalisation on income inequality in selected Asian countries. John Wiley & Sons.

Ciuriak, D., Xiao, J., Ciuriak, N., Dadkhah, A., Lysenko, D. and Narayanan, G.B., (2015). The trade-related impact of a UK exit from the EU single market. Available at SSRN 2620718.

Cleveland, M., Rojas-Méndez, J.I., Laroche, M. and Papadopoulos, N., (2016). Identity, culture, dispositions and behavior: A cross-national examination of globalisation and culture change. Journal of Business Research, 69(3), pp.1090-1102.

Crothers, L., (2021). Globalisation and American popular culture. Rowman & Littlefield Publishers.

Erixon, F., (2018). The economic benefits of globalisation for business and consumers. European Centre for International Political Economy.

Freeman, S., (2017). Liberalism. In Oxford Research Encyclopedia of Politics.

Green, J., (2019). Is globalisation over?. John Wiley & Sons.

Hirst, P., Thompson, G. and Bromley, S., (2015). Globalisation in question. John Wiley & Sons.

Kolcava, D., Nguyen, Q. and Bernauer, T., (2019). Does trade liberalisation lead to environmental burden shifting in the global economy?. Ecological Economics, 163, pp.98-112.

Kuruvilla, S., (2020). Globalisation and employment relations. In Comparative Employment Relations in the Global Economy (pp. 31-53). Routledge.

Lund, S., Manyika, J., Woetzel, J., Bughin, J., Krishnan, M., Seong, J. and Muir, M., (2019). Globalisation in transition: The future of trade and value chains. McKinsey Global Institute, 144.

Maesse, J., 2018. Globalisation strategies and the economics dispositif: Insights from Germany and the UK. Historical Social Research/Historische Sozialforschung, 43(3 (165), pp.120-146.

Moak, K., (2017). Developed nations and the economic impact of globalisation. Springer.

Nayyar, D., (2015). Globalisation and employment. Indian Journal of Labour Economics, 58(1), pp.87-97.

Pieterse, J.N., (2019). Globalisation and culture: Global mélange. Rowman & Littlefield.

Ramrattan, L., (2017). Distressed US industries in the era of globalisation. Routledge.

Ritzer, G. and Dean, P., (2019). Globalisation: the essentials. John Wiley & Sons.

Samiee, S., (2019). Reflections on global brands, global consumer culture and globalisation. International Marketing Review.

Van Reenen, J., (2016). Brexit’s long-run effects on the UK economy. Brookings Papers on Economic Activity, pp.367-383.

Vivarelli, M., (2018). Globalisation, structural change and innovation in emerging economies: The impact on employment and skills. Sage.

Zeibote, Z., Volkova, T. and Todorov, K., (2019). The impact of globalisation on regional development and competitiveness: cases of selected regions. Insights into Regional Development, 1(1), pp.33-47.