Globalisation Process Essay

The transmission line foundation is becoming progressively global. As a proceeds of this, many companies, such as rib Coffee and Dyson, make believe multi remoteiousnessd their strategies in relation to the food markets they commit or where they produce. Does the increasingly global nature of business mean that all organisations make to change their strategies primally to obtain higher profits? Justify your answer with speech to Costa Coffee, Dyson and/or other organisations that you know.Globalisation is the process by which the world is becoming progressively interconnected as a result of significantly increased trade and cultural exchange. It has also increased the production of goods and servicings. The biggest companies (such as McDonalds, Starbucks, Costa Coffee, Tesco, Dyson) are no longer national firms, entirely transnational corporations with subsidiaries in many other countries. The aim of this essay is to nearify whether organisations requisite to change their strategies significantly to achieve higher profits as a result of the increasingly global nature of business.As a result of globalisation, the world has become a smaller place however this is a potential benefit for companies that are looking to expand because communication, trade and turn on are becoming increasingly easy. Many countries, especially the BRICS economies are undergoing industrialisation, with electric shaver(p) Western companies the cheaper infrastructure they make to expand. If the business does the market auditing efficiently and they target the right market, with the cheap infrastructure and more potential customers, there are minimal reasons why the business would not achieve higher profits. So having express that, businesses like McDonalds are a perfect standard that higher profits are a result of changing their system to relate more to the market they target. Originating from America, McDonalds are currently market leaders in 96% of the markets th ey do business in they sour in 119 countries on 6 continents, with everywhere 33,000 restaurants worldwide, employing over 1.7 million people. (http//www.mcdonalds.ca/ca/en/contact_us/faq.html)They first expanded internationally when they opened in Canada in 1967. The international section of McDonalds has become increasingly more important to the companys overall success. As of this past year, non-US based restaurants posting for over half of the companys $40 billion in receiptss. Foreign restaurants now account for about 60% of McDonalds integrality profits. Since coffee has become a necessity in a individuals every day routine rather than a luxury, McDonalds has recognised this is an opportunity to increase their product portfolio. With the majority of McDonalds customers macrocosm business men and women, coffee is an increased purchase amongst their sales, therefore they have recently announced they exit be opening up a McCafe in the UK, having already been opened in Aus tralia since 1993, theyll be selling a variety of coffees other than your standard black, white, latte and cappuccino. As a consequence, for companies like Costa Coffee and Starbucks, this means that McDonalds will continue to add to the markets they are in and become increasingly vivid competitors. So the increase use of necessities globally definitely has an impact on a businesses strategies. McDonalds have had to identify a persons every day need, and cleverly made it as sort of a luxury item because its sensitive it will be new to McDonalds. As a result of their new investment funds, the McCafe generates 15% more revenue than an ordinary McDonalds.On the other hand, Globalisation is prove to have had a negative effect for some other businesses such as Tesco. This is a business that has strived to expand internationally, and as a result, they struggled/failed as they couldnt slow adapt to the market change. Tesco has expanded into many other countries over the years, and as t he BRICS economies are becoming increasingly attractive, an opportunity to venture into these economies seemed to be a rising star for Tesco. Tescos eye on the regard meant that they took their eyes off what made them successful in the first place- their UK stores. Ultimately, elaboration into China, India and Thailand has left what was their cash cow UK stores to currently become their problem child. Losing focus on their original investments meant that they slipped behind in terms of stores, service and innovation. http//www.bbc.co.uk/news/magazine-17767565 In addition to their struggles to maintain the success of their UK stores, focus on China, Thailand and India had a massive impact on their competitors such as Asda, Sainsburys, Lidl and Aldi.During the prison term that Tesco focused on the new move, it was an opportunity for its competitors to steal Tescos 30% market share Sainsburys brought in By Sainsburys and Asda brought in Chosen By You. When Tesco realised their mista ke and focused their precaution on their UK stores, they invested in the Big Price Drop Flop but the 500m excite exactly damaged their branding image, as customers thought the quality of their products had dropped. It was a clear step by step process for Tesco losing its place in the market. All of this is a result of changing their scheme by expanding foreign into a better economy, and that is a result of Globalisation. Overall, Globalisation has so far cost Tesco to invest in a new economy, invest in strategies to save their place in the market, and has now cost them a 1bn investment making their UK stores a warmer look and feel. Its unafraid to say that Globalisation has definitely not achieved higher profits for Tesco, only slandered them.Overall, Globalisation has effect on all businesses whether positive or negative, but it does not necessarily make them achieve higher profits collectible to a changed strategy. In my opinion, its not Globalisation itself that makes a bu siness achieve higher profits, its how the business takes advantage of the situation, and there are other internal factors involved that make a business achieve increased profits. Tesco could have easily become more successful if they balance out their investments, keeping the UK stores as a cash cow opus they invested in their rising star in China, and also kept their attention on their main rivals Asda and Sainsburys. Sometimes a business does not need to change its strategy, an investment into the BRICS economies could potentially mean more m acey is required.Having said that, some businesses already have the infrastructure they need to maintain their businesses over in the UK and it would seem moronic to expand overseas, especially if the business is maintaining profits. Although McDonalds has interpreted advantage of Globalisation, and used their strategy efficiently to become successful and to be as big as they are now they are one company in a million. They are not proof th at just because they managed to successfully adapt to the market, expansion into other countries is not guaranteed success, as proven by Tesco. So no, not all businesses need to change their strategy significantly due to Globalisation, in fact, some businesses dont need to change their strategy at all.