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Table of Contents
Introduction.................................................................................................................... 2
1.1

Differences between organizations working in different sectors, industries and context.............3

1.2

Assessment of the responsibilities of organizations operating globally..................................4

1.3

Evaluations of the strategies employed by organizations operating globally............................6

2.1

The performance of a national economy impacts on the activities of business organizations........7

2.2

Measures taken by governments to influence the activities of business organizations................8

3.1

Explanation of the implications of global integration on business organizations.......................9

3.2

Assessment of the effect of international trade on domestic products and services..................10

3.3

Review of the impact of the global economy on businesses..............................................10

3.4

How Information and Communication Technology has facilitated globalization....................11

4.1

Review of the global environment............................................................................. 12

4.2

Proposed strategies to address issues affecting business activities in UK..............................13

References................................................................................................................... 13

Introduction

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Globalization become the common issues in todays world. It is a technique of removing


the hurdle and gather people and their ideas and required things all over the world.
(Manfred, 2003). The main motto of organizations is to become global and to increase
shareholders wealth up to maximum and for doing so they will take help from
globalization which is one of the fastest way to grow the business throughout the world.
Mergers, Securing, direct speculation and take over are some of the methods and
procedure which the company use and go globally.
Lindum Group, a Lincolnshire Construction Company was founded in 1956 in United
Kingdom which provided construction services throughout the United Kingdom. This
company has taken one of the top position in UK in construction because it provide
excellent services in the field of construction. Now this company has extended its
services and established offices in different cities like Lincoln, Grimsby, Spalding,
Peterborough and London.
These kinds of organizations forecasts on agendas of law administering contract and
trade. Different types of business are carrying out their operations while either working in
neighborhood or in universal markets. Multinational companies are those companies
which works in more than one country. Now a days Lindum CEO is planning to expend
their services from national level to international level to provide innovative
constructions services throughout the world. Being a member senior management, I have
to prepare report so that the senior management take it in consideration.
1.1

Differences between organizations working in different sectors, industries and context


As a result of globalization, different organization carry on their operations in different
contexts like sectors, industries. Scope and goal are the two main factors with the help of
which the sectors and industries are selected. We must have thorough knowledge
regarding operating globally before starting operations in rest of the world because
different nations emphasis differently on different sectors and industry.
A large group of companies are classified in sector because it is one of the universal
segment in the economy. There are two categories of sectors. One is private sector and
the second one is public sector. It totally depend upon the ownership of the organization.

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Most private sector organization are non-profit and are owned by the local government
and the employees.
Different companies uses different process like manufacturing, production, distribution
and marketing of organization are different on the basis of industry. Lets take an example
of Ford which is an auto manufacturing company. This company might focus on its
production process while on the other hand, Lindum group will focus on the services
which they provide to the people in the form of construction.
Context is the mode of organizational operations and its structure consisting of not only
the culture of the organization but also the values of the organization. According to
Cappelli and Sherer the surroundings associated with phenomena which help to
illuminate that [sic] phenomena, typically factors associated with units of analysis above
those expressly under investigation. This differ from company to company. One
organizations strategy, tactics and process of operations are different from another even
in the same industry.
1.2

Assessment of the responsibilities of organizations operating globally


It is an ideal opportunity to move the CSR to the idea of "global responsibility" (Berthoin
Antal and Sobczak, 2004). The acknowledgment of global responsibility explain as an
activity of authority. It is a voluntary and conscious utilization of assets of the
organization keeping in mind the end goal to accomplish maintainability. There are huge
responsibilities of organization that work globally. Some of them are given underneath.
Employees
Employees are considered as the key asset of the organization. When the company start
its operations outside the host country the responsibilities towards the employees
increases too much. There should be no discrimination while hiring employees for the
operation. There should be no differences between the people of the host country and the
people of the home country. There should be equal employment opportunity and should
promote all the diversity in workplace. The organization should be follow labor laws.
This will increase employees morale.

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Customers
Customers are the boss, hence it is the main focus for the business. If the company wants
to extend its business outside the home country then the company has to take care of the
customers needs and wants. Lindum group need to understand the customers needs and
therefore they should show consistency and fairness in their work to give the customers
better experience. In order to create loyal customers, then the company must deliver
quality products and services.
Community
Community is consist of the companys customers but still it is different and is a separate
stakeholder. Community include different groups like local chambers, service club, social
clubs etc. The company should attained different meetings and conferences conducted for
the welfare of the community because it is the part of the global society. The company
should also take part in donation and charitable works to support the community, it will
help the company to enhance the goodwill of the organization globally.
Suppliers
Working globally, the suppliers also change. There will be new suppliers which provide
different products for the company. Thus the organization must keep a good relationship
with their suppliers through honesty and fairness. This will reduce the company cost and
will speed up the growth of the company in new countries.
Environmental Responsibilities
There are several organization particularly the assembling association which need to
confront diverse ecological issues. Different types of gasses are produce and lethal
squanders which hurt the ecosystem of the earth. Similarly the waste which come out of
the company due their production lines expands the contamination in air, water and land.
Thus its the association obligation to avoid these things. Along with this different types
of organization works for the welfare of the environment and the earth.
Law

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While the company start its operations globally then there are certain different laws of the
host country. Thus the company must have detail of each rule and regulation. The
company has to abide by all of the acts and laws of the host country.
1.3

Evaluations of the strategies employed by organizations operating globally


When the company start its operations globally than the companys HR department
should not only hunt for the new resources but also must take care of the rules and
regulations made by them in the organization. The policies made by the organization
must be according to the nature and culture of the host country. Thus we can say that
every organization has different policies and rules when the organization is operating is
globally. (Conklin, 2011). One of the main problem the organization which operate
globally faces is the employees retention. They have different strategies to retain the
employees while the employees needs something else. Therefore to avoid this problem
most of the organization outsource the human capital which help them to grow and retain
brand in the market.
When the organization move globally then it faces too much rivalry form its competitors.
Therefore the organization needs to follow and manage resources with the help of
different techniques and procedure. Those organization which are adaptable to the society
and environment has the capability to change in nature.
Similarly Lindum group must understand that now they have to operate globally therefore
they must have policies and strategies which dont contradict with the nature and culture
of the people of the host country. They must also take into account all the factors which
will affect the business. Following are few features of global strategy
The way local market is treated, the global market must also be treated the same

way.
The market mix should be according to the global market rules and regulations.
The production and distribution system must be launched globally.

PESTEL analysis must be in mind of the organization while making strategies for the
global market. The mission system which give message to the people about the
organization goals should focus on the global rather than on a local market.
The global strategy consists of a global marketing plan which includes different factors
like the organization marketing mix, its production process, distribution plans etc. For
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instance, Emirates Airlines followed a strategy that the global accept and now Emirates is
a strong brand throughout the world.
2.1

The performance of a national economy impacts on the activities of business


organizations
Due to globalization impact, not only people but also the businesses are getting close to
each other. For the improvement of economies, the countries start trading with each other.
The overall economic condition of a country is reflected by the national economy. The
better is the national economy, the best is the economic condition of that country. Thus
we can say that an improvement or decline of the national economy of the country has
great impact on the activities of any organization.
The borrowing capacity and the purchasing power of the people and as well as the
business is affected by the monetary and fiscal policy of the country economy. Interest
rates and prices of goods are dominated by the banking policy. The stronger the banking
policy is the, the better will be the interest rates and price of goods. If the above
mentioned factors are in favor of business, the business will grow without any doubt and
if these factors were not in favor of businesses then there is a little or no chance for the
businesses to show improvement and growth. The amount of money invested in the
economy and the earning of the people form the economy actually represent the
economic growth. People start spending their money on luxury products when the
economic growth and development curve start moving upward sloping.
Employment and income of the employees are also important factors of national
economy. The higher the employment rate the healthy will be the economy of the
country. Similarly during recession, the unemployment rate of the country increases
which results in the low purchasing power and hence the business of that country faces
the darkest phase.
Similarly the education is another important factor because the more educated the people
of the country is, the lower will be the training cost on them and hence the business will
less suffer.

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Price level of commodities is also consider as one of the most important factor because
an increase in the price level of the commodities will lead to the increase in cost of raw
materials, increase in production cost, transportation cost and other fixed and variable
cost. The profit of the organization will decrease and the economy of the country will
suffer.
There are various other factors like trade cycles, inflation, recession etc. which influence
the organization and as well as the national economy of the country.
2.2

Measures taken by governments to influence the activities of business organizations


Every government has objective which needs to be fulfilled. For example the government
will always want to have full employment in the country while having low level inflation.
Similarly the government will always want to balance the import and export, improve the
living standard in the country and to reduce the gap between the rich and poor while
providing different facilities. In order to gain these objectives the government has set
some measures that influence the activities of the business organization.
Inflation Policy
Its the government obligation to keep the economy in the equilibrium state. Interest rate
is the key factor with the help of which the government balance the economy. When the
people try to borrow and spend too much then the government increase the interest rate
so that the people decrease their borrowing which will result in the decline in the
purchasing power and hence this will results in the reduction of the price.
Employment Policy
Increase in the employment opportunity is always the top priority of the government. For
example, UK government policy is to bring competition in the global market and for this
they are providing different trainings and as well sponsor them so that the UK employees
maintain a suitable position in the global economy.
Local Policy

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The government of UK has also made local policy for different regions that faces
different problems like illiteracy, high unemployment rate and other social issues.
Education and Training Policy
In order to make the employees more advanced for better output, the government of UK
plays outstanding role to support not only the education but also train them.
Taxation Policy
By paying taxes the business contribute a major portion to the economy of the country. In
response, the government built airports, roads etc. which helps business for further
growth and advancement.
3.1

Explanation of the implications of global integration on business organizations

There are diverse suppliers and customers in global market. Hence it is important for
every business to not only provide new products and as well as innovative commodities
which meet both the needs and wants of the customers. The high the quality of the
products and services the more attractive it will be for the customers. Similarly in the
developing countries most of the organization thinks the cost leadership strategy is
feasible.
Its the economic, political, social and other competitive forces which compel the
industry to move into globalization and start its operation in different parts of the world.
(Bartlett and Ghoshal. 1989; Kobrin 1991; Morrison and Roth, 1992). Similarly
managing and control of business operations across borders are referred as global
integration which is mandatory, rather than discretionary because of the competitiveness
of business. Following are few aspects of global integration

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Controlling the management system of the organization.


Global integration in supplies of not only raw materials but also in finished goods.
Global integration in the exports of the businesses.
Training and development programs
Global integration in creating open economy and trade barriers.
Maintaining of standard goods and services.

3.2

Minimization of cost and improvement in quality.


Research and analysis globally for improvement.

Assessment of the effect of international trade on domestic products and services


International trade has been expended rapidly in recent years. Similarly some countries
have more exports and some have more imports. Some countries try to maintain an
equilibrium between these two. Whatever is the case, it has always effects either positive
or negative on domestic products and services. Few of them are given below
1. If imports of the country increases, people of that country will have more choices
and alternatives. They will be able to select and buy the best one among too many
brands.
2. If prices of the domestic products and services are higher as compare to the prices
of the foreign goods and services, people will tend to move from domestic
towards the foreign which will result in the reduction of sales of domestic
products and services and will increase the sales of the foreign goods and
services.
3. Similarly if there are too many foreign and domestic goods available in the
market, the market will have a strong competition in it. The domestic products
will try to further improve their qualities to sustain their selves in the market and
competition.
4. If the country exports increases abnormally, there will be less chances to fully
satisfy the needs and wants of the local people and deficit of domestic goods and
services will start.
5. There is chance that a well-known brands grab the whole market which will
discourage the local brands and as a result the local brands will have low level of
sales.

3.3

Review of the impact of the global economy on businesses

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Every country has effects on other country in any case and any situation either its a war,
its a tragedy like Brexit, its recession etc. Many countries which were connected for
trade were effected due to the financial crises of Euro in 2009. When the economy is
uncertain of the country it may lead the business in success or it can cause failure. This
uncertainty can affect the business and organization in too many ways. People are aware
of every single product of the company with the help of internet and social media which
is manufactured in any part of the world. Everyone is aware of the apple new model of
IPhone. Thus we can say that a universal standard exit for each and every product
nowadays which lead the business in great competition and its hard to survive the
business without improvement in standards. The risk which is associated with the
business is also increasing. Thus we can say that the business can only survive in todays
world if the company or business bring innovative and unique products to the market to
better satisfy the needs and wants of the customers. For instance, Apple has grabbed the
market share with the help of unique and innovative products which not only satisfy the
needs and wants of the customers but also give new features to make the life easier.

3.4

How Information and Communication Technology has facilitated globalization


The changes in the nature and environment of the business is due to the IT advancement
like websites, distributed computing, Corporate Social Responsibility, ERSP and e trade.
Most of the business are doing online networking which has a great influence on
business. With the help of these innovation the items not only get advanced but also the
administration.

There are many programs available in the market which helps the

business to get easy the life. Mechanical advancement is driven by the globalization. Due
to advancements in information and communication technology the worldwide
environment is experiencing extraordinary changes.
The nature and environment of the business is changed by Information technology like
the internet contributed a lot in the development of business. Similarly CSR, ERSP and etrade are other IT technologies which has improved the business in todays world.

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Technology has bring innovation and uniqueness in the products and services. Social
media is widely used by the business to promote their products and services.
Following are few important points which explain how ICT has facilitate the
globalization
1. Advanced
2.
3.
4.
5.

Information

and

Communication

Technology

speedup

the

globalization.
The process of doing business globally get simplified by the ICT.
Every business which operate globally is effected by the ICT.
The process of doing business globally is reduced by this.
The old traditional economic system is changed by ICT.

According to Flew ICT plays a major role to make the global economy faster. It has
created a new global economy based on information, globalization, and networking.

4.1

Review of the global environment


According to Frynas and Mellahi The countries includes in the trade made payments
with the exchange rate of their local currency with dollar. The interest rates also influence
in the business and organization. Most of the business prefer to developing countries
because the people are ready to work at low price hence it will save not only money but
will decrease the cost of production.
Audit and examination of the business are considered as imperative for the organization
where it operate. Money is considered as the primary variable. Similarly the development
of business is highly important for the development of business.
For example the GDP of UK was considered as the main variable which helps in the
development of European Union. As we know that the world economy is moving
downward while the UK economy is still stable and is moving forward to be considered
as the Business Center of Europe. UK government also take care and support
international businesses.

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United Kingdom government has built strategies which are beneficial for the businesses
like multicultural trading method, deduction in Tax Rate, Closing down illegal business
and any hurdle which occur for the global business. Because of the strict laws and
regulation like anti-bribery legislation keeps the business environment clean.
4.2

Proposed strategies to address issues affecting business activities in UK


For doing business, UK is the best place for carry on but the business has to maintain and
follow strong and effective strategies so that the business sustain its position in a strong
competitive environment. (Leo. 2005). Lindum group should follow the following
strategies.
1. Innovation
The competition among the business has increased so much that one mistake can
take out the business from the world. Take an example of Nokia which has been
expelled from the business world by other smartphones. Thus in order to maintain
a suitable position in the competition the company must have innovative ideas.
Lindum should focus on creative and unique ideas which satisfy the customers.
2. Technology
Technology has improved too much in last few decades, Most of the business
process are now become automated. Thus for a business to sustain its position in
the competitive environment it is necessary to adopt technology which will help
in the production. The more advance the technology is the more will be the
output. Lindum group must follow the latest technology to enhance the output of
the company.
3. Market Extension
Market extension for the companies are important because it will help the
companies to place their existing products in new markets. Thus in order to grab
new customers for the existing products the companies should place these
products in the new markets.

References

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