• 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...

Introduction

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.

Middle

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.

Conclusion

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

    many people are losing their homes, jobs and struggling financially; however in Malaysia the economy is booming and growing at a fast rate. Factors like this can affect Tesco, it may mean they need different strategies for different countries and deal with the different issues these environments can cause.

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

    Another most important area of government activity comes in the form of taxes and subsidies. The government uses taxes for various purposes such as: * To raise revenue for government spending * To discourage certain activities such as the creation of pollution.

  1. Introduction to Tesco

    In September 2002 Tesco launched its exclusive new clothing brand 'Cherokee' in many of its UK stores. In the 1990s, Tesco expanded into Scotland when it acquired a chain of 57 stores from William Low. In 1997 Tesco purchased 109 stores in the Republic of Ireland and Northern Ireland, which

  2. Provide the theoretical and practical analysis of international mergers and acquisitions.

    Share-for-share offer was the major method to finance this acquisition. For ARCO's shareholders, an advantage of this method is that they still have an equity interest in the company that they originally invested in. Additionally, they did not need to spend the brokerage costs, and did not need to pay

  1. For my portfolio, I was asked to do an assignment on two businesses. I ...

    secure because in a private limited company the shareholders are the owners and government want to know they are paying taxes and there business is secure and they want to know they are working under the laws. The suppliers in Vectone Gnanam Telecom want them to increases their sales so they on purchasing from them.

  2. Business of travel and tourism task1

    of the business, A business which is formed by a partnership could have up to 20 partners legitimately, there would be less members in a sole trading organisation as this would normally be a self employed self set-up business which would usually be financed by loans from banks.

  1. Investigating Business. Tesco PLC. I will be describing the aims and objectives of ...

    When there are low levels of economic activity, then consumers tend to spend less and save money for a rainy day, so then consumers wouldn?t be spending on luxuries or buying a lot of products from businesses ? from that business?s wouldn?t be making much profits.

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

    Teachers will be unenthusiastic about their role as a teacher and this will affect the pupils? performances and results therefore affecting schools progress in a negative manner and making their goals harder to achieve. Plus, it will make it harder for senior members and head of departments to motivate their team members (teachers)

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