The business world is becoming increasingly global. As a result of this, many companies, such as Costa Coffee and Dyson, have changed their strategies in relation to the markets they target or where they produce. Does the increasingly global nature of business mean that all organisations need to change their strategies significantly to achieve higher profits? Justify your answer with reference 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 services. The biggest companies (such as McDonald’s, Starbuck’s, Costa Coffee, Tesco, Dyson) are no longer national firms, but multinational corporations with subsidiaries in many other countries. The aim of this essay is to justify whether organisations need 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 travel are becoming increasingly easy. Many countries, especially the ‘BRICS’ economies are undergoing industrialisation, giving Western companies the cheaper infrastructure they need 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 said that, businesses like McDonald’s are a perfect example that higher profits are a result of changing their strategy to relate more to the market they target. Originating from America, McDonald’s are currently market leaders in 96% of the markets they do business in; they operate in 119 countries on 6 continents, with over...
Please join StudyMode to read the full document