• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Globalization creates more opportunities for UK business than threats. To what extent do you agree with this agreement?

Extracts from this document...


Globalization creates more opportunities for UK business than threats. To what extent do you agree with this agreement/ (40 marks) Globalization is the growing trend towards worldwide market in products, capital and labour, unrestricted by barriers. In many years, companies want to increase their sales, profits, or maybe fulfil their ambitions, they started to change themselves and become a multinational company, with the expansion through free trade between countries where the reduction in tariffs or quotas have been helping a company to work better than ever. As globalization is a way to expand the company, there must have opportunities, or else, the company will not do it. Through globalization, businesses will have the greater opportunity for selling goods in other countries. Entering a new market which is not saturate can give the chance to increase sales, economies of scales and improved profitability. For example: China. It has the biggest potential market in the world due to the rapid growth, also the China government policy initiatives spur demand Different companies are exploiting it. ...read more.


Globalization increases the freedom to arrange mergers and takeover as a means of expansion aboard, like Tesco and Samsung set up a partnership, a conglomerate by Samsung. Homeplus generates sales of more than 3 million. So in a way of joint venture or mergers/ takeover does help to reduce cost, increase the sales, so the profit will be higher. The increase in number of firms expands internationally increases the competition. The give firms the incentives to become more internationally competitive. As the firms innovate more products, the new ideas would help them to increase sales. For example Ben Dawson Furniture, they used the latest computerized machine tools to fashion their products like desks, cabinets in the airy factory-cum-design studio in order to compete with other firms. However, the opportunities of globalizations might also be the threats of it. As businesses from other countries now have freer access to the UK market, so competition rises. Some firms like British furniture industry might wipe out by foreign competition due to the low costs of production, also may not able to cope with the rapid change like economic issues with a combination with competition and so they go bust. ...read more.


In conclusion, I think globalization create more opportunities than threats as firms will grow bigger and bigger. But I think the truth between opportunities and threats is depends on a lot of things. It depends on the business itself, like culture and the product they sell. For example, Mothercare sells baby equipment, toiletries and clothes, where the expectant mother and her baby share characteristic that they are very similar everywhere, so there will be a constant amount of sales. Or like Tesco Homeplus, where they adopt management where only 4 UK workers in the management level, so the rest of the Korean workers are able to make sure Homeplus is localizated. It also depends on the PeD of the products, and the economy conditions. In the case of furniture firm, their products are furniture, they have high durability, so the demand of them will be inelastic, also the production cost is high, they might find struggle in sales compared to Tesco or Mothercare. ?? ?? ?? ?? Samuel Ma ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Structures, Objectives & External Influences section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Structures, Objectives & External Influences essays

  1. Business of travel and tourism task1

    years after Conrad Hilton bought his first hotel in 1919 Cisco, Texas. The Hilton family has always had top priority in the Hotels' business corporation Members- Each organisation within the travel and tourism industry whether it is Private or Public could have any amount of members due to the size

  2. Btec National Business Level 3 Year 1 - Exploring Business Activity

    the World's greatest game and Microsoft is the World's greatest software manufacturer. E.g. Companies contest with each other to gain exclusive rights to sponsor events such as the London Promenade Concerts or the British Grand Prix. Celebrity culture: Microsoft is advertising "Celebrity home pages for live.com".

  1. Introduction to Tesco

    Our non-food offer now encompasses electrical, home entertainment, clothing, homeshop, cookshop and even white goods and furniture in our largest stores. 3. Retailing services As customers' shopping habits change we change and respond by providing new products and services. Our e-commerce business has grown rapidly.

  2. The Business Environment Coursework. Describe the type of business, purpose and ownership of ...

    Many of their products are more expensive but most of their customer's feel that is the extra cost are worth it for the quality of their products, whether their products are food items or clothing. When the economy is good, many people have more spare money to spend and are happy to spend extra on the quality.

  1. Barclays Investigating a Business

    When people work together its more likely for more work to get done and therefore customer satisfaction to increase. Belbin's Theory Belbin's theory was that all organisations need 9 key roles for the business to work well as a team.

  2. Introduction into my first business Tesco.

    When did Tesco open its first supermarket? In 1956 the first Tesco self-service supermarket was opened in a converted cinema in Maldon. By the early 1960's Tesco was a household name, as well as selling groceries, the stores sold fresh food, clothing and household goods. The Tesco store which opened in Leicester 1961 had 16,500 square feet

  1. external influences on a business

    One advantage of this law is that it protects the customers from being given faulty products. However, this legislation costs money to Morrisons because they have to refund customers when ever the products they sell to the customers are faulty, some customers can damage the product on purpose just to get the refunds, so Morrisons are losing out.

  2. Applied Business. Investigating a business Preston Manor High School

    They have to be realistic, and think in a pessimistic way, that other schools are competing and they will also try the things this school is doing; then they might think about keeping their strategies for later (when the time is right).

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work