The company specializes on clothing and fashion. The company owns chain of stores throughout the country. The chain stores are more than 2500 in the United Kingdom (U K). It has other franchises in other different countries, especially throughout Europe. The company is known to b the largest business interest that retails magnate Sir Philip Green. Then an immigrant Montague Burton formed the company in the year 1903. The company was initially called The Cross-Tailoring Company. The company started operating by manufacturing men’s cloths.
The company headquarters was moved from Chesterfield to Leeds and the owner changed the name from The Cross-Tailoring Company to Burton in 1914. In the year 2000 up to date, the company adopted a tragedy known as Brand. The strategy was to cut down the operation of underperforming brands. The stores, which were ineffective and closed, were replaced with other Arcadia properties. Country Background The United Kingdom is a Sovereign State in Europe. The country falls in the 22nd position as the most populous county in the world with an estimated 65 million people.
The country practices a monarch with a parliamentary system Of governance. The capital city of the country is London, which is an important global city and a financial centre. The I-J consists of four countries namely, England, Wales, Scotland, and the Northern Ireland. The UK has the sixth largest economy in the world. The country is known to have the highest income economy. UK was the first industrialized country in the world. The country has one of the most powerful military, cultural, scientific, and political influences over the world.
UK has been a member of the European Union since 1973. The country is also a member of the Commonwealth Nations. Discussion Globalization is the process of integration of nations in the world. Globalization is accelerated by the ever emerging of new technologies in the oral of business. Trade liberalizing also influences the globalization. The advances in transportation sector and communications are the key players in globalization (Shave, 2015). The factors generate interdependence of the economic and the cultural activities that the business world is experiencing today.
The combination of these factors causes the existence of the current business environment in the world. Political environment is also a key player in the existence of the current business community. The current business environment involves all the activities in commercial transactions. Both riveter and government bodies participate in globalization. The globalization have affected both small and big companies (Bagman, 2002). The factors have enabled companies to operate and participate in the global economy by enabling them to achieve new opportunities and enjoy the benefits of globalization.
Some factors have negatively influence globalization resulting to hostile global business environments. The decade transition of the globalization has provided both the positive and negative effects on the business environment that exists today. Companies have found some benefits in the world of economics. In countries with developed economy, the rapid liberalizing has provided a sustained and stable environment. In countries with poor economy, the progress in the private sector and liberalizing has been slow (Teamed & Wright, 2003). Unbalance macroeconomic has been evident. The reversal of the inflation, growth of fiscal imbalance, and the hardship to access the international capital market is evident. The ability to adjust the legal system has also affected the globalization, which has further influenced the existence of the current business environment. More countries operating in the global environment have adopted laws that are facilitating the economic transformation (Young, 2011 The ability to reform the financial sector has also contributed to the existence of the current business environment.
The international trade, international financial flows, and the international investments are some of the key elements in globalization that exists in the current business environment. Globalization has increased diversity in companies. Globalization has affected how firms compete with each other in the global market (Hamilton, 2015). Globalization drivers Market drivers The market drivers influence globalization through consumer goods and services. The products and services are presently available throughout the world. Uh to the availability of the marketing campaign in the international level, and other corporate brand promotions, there is an increase in consumer desires throughout the world. With the domestic markets becoming more saturated, the global expanding is the only solution, since there are limited opportunities in the domestic market. This is the only way an organization can expand its business. The customer needs and the ability o use global marketing channels are some of the strategies that organizations use to expand their business. Markets are known to provide new potentials in economic developments and the ability to create wealth.
There are also some different views on how globalization is influencing the business environment. Some people will argue that the present existence of globalization has facilitated an increase in unemployment, poverty, and inequality (Young, 2011). Other people will argue that markets have been the driver to reduce poverty, unemployment, and inequality across the borders. The current business environment is experiencing market development. One of the main objective Of markets in globalization is to meet the need of firms and people all over the world (Gar;newelder, 2008).
Markets have managed to increase the participation of firms in the global market. Some people will argue that markets have increased the gap between the developed companies and emerging firms. The developed firms are the one benefiting more from globalization while the emerging firms are struggling to establish a stable business in the global environment. The developed industries are enjoying the benefits from the increase in exports, increased imports, and healthy trade between global businesses (Jose et al. 2003).
The developing industries on the other hand have been struggling to inject establish a stable operation in the global business environment. The developing firms have not been able to consider the key foundations that are necessary for firm’s stability (Gar;newelder, 2008). The strategies that the companies have adopted have helped the firms with different economic investments in the global business environment. This driver of economics in the global business environment focuses on the internal cost and tends to Moore the external costs that are involved in business transactions (Young, 201 1).
Arcadia Group Limited is more concerned with profit making that is facilitated by the expansion of markets. Political/Social Drivers of Globalization Political drivers have been connected to the significance of the national governance to the global market. The emergence of national bodies has reduced the sovereignty of firms and global market environment in which the companies use for operations (Eternal & Wright, 2003). Politics plays a critical role in shaping the global business environment in which the firms tend to establish a stable and efficient operation.
Politics is behind the reforms that have existed in both economics and technologies. For example, government policies on Foreign Direct Investments (FDA) have influenced the ability of firms to establish their business in other parts of the world. FDA policies tend to either facilitate increase in participation of companies or reduce the number of the firms (Hamilton, 2015). For instance, Arcadia Group Limited will have to consider the policies that the governments have set up in other countries concerning the operations of foreign investors.
In other areas, the cantonal governments have been responsible in the existence of the economic development and security in the global business environment. The social responsibility is a key player in the development of globalization. For instance, the bill¶y’ to have Arcadia Group Limited besieged by charitable events will influence the firm to expand its operation in the global market. The social responsibility of globalization entirely focuses on how globalization influences the lives of people in the society.
Social responsibility has improved the global environment by establishing advanced education yester, laws, and the health systems (Teamed & Wright, 2003). Education system has contributed to the business world by providing skills and knowledge to manage different kinds of businesses in the global environment. Education systems have developed globalization by introducing new economic markets in the world. Firms can now be able to access the new technology without difficulty. The health services on the other hand have been able to increase the health care throughout the world.
This has increase the establishment of science research facilities all over the world in order to improve the health care services. This will allow the firms to expand their business to other parts of the world because of the better provision of health care (Hamilton, 2015). Competitive Drivers The emergence of the global market have led to an increase in more companies participating in commercial activities. The abilities of countries to have interdependencies will support this driver. The high two-trade and the cross border FDA are also facilitating competition in the global market.
Technology Technology has shaped and laid the foundation of the current globalization. The emergence of innovation in the transport system has revolutionized globalization. For instance, the commercial jet is a product of technology and it has aided the expansion of firms throughout the world. There have been innovations in the communication sector which has aided communication process. The ability of the companies to have access to the internet has also provided opportunities for globalization-The ability to access information has shaped the current business environment.
Companies are able to adopt effective strategies that will assist them in developing their business. The ability to have information has enabled firms to achieve their primary’ goals and objectives (Teamed & Wright, 2003). The ability to have information has introduced the competition between rival companies. This has made the global market to be more active and effective in terms of developments. Information can benefit a firm by establishing reliable sources that would benefit the company (Hamilton, 2015). Firms are able to make effective decisions concerning the global market environment.
Impacts of Globalization Benefits of Globalization The increase in globalization has provided independent markets in the global environment. The independent markets have been able to highlight the benefits and disadvantages of leveraging foreign exchange. Increase in globalization has been able to achieve efficiency in the business world and provided an increase in GAP in developing nations (Hamilton, 2015). Arcadia Group Limited is one company that has enjoyed independent markets. Increase in wealth is another advantage of changes in globalization.
Developing countries have become wealthier with the changes in globalization. The GAP growth rates of the underdeveloped nations have improved because of the expansion of the international markets. The correlation that exists between annual growth and globalization reflects the benefits that the international trade enjoys (Bagman, 2002). The economic development and the standard of living are also enjoying benefits of changes in globalization. Increase in the political philosophies has been evident in the society. This follows the assumption that free markets are able to use capitalistic and democratic philosophies.
The rises in political philosophies have improved the living standards of people in the society. Another argument is that the political philosophies have increased the chances of firms to participate in foreign direct investments. The ability to increase foreign and global business will increase the stability in the political environment (Jose et al. 2003). This will also influence an increase in job opportunities, equality, and technological improvement all over the world. Adequate provision of foreign goods and services all over the world is another advantage of change in globalization.
Changes in globalization have led to an increase in the diversification of products, technology, and services. The domestic companies and economies have been able to benefit from technology and other innovations from globalization (Bagman, 2002). The increase in diversification of products and services has led to expansion of impasses in the global market. Disadvantages of changes in Globalization The advancing in technology may negatively influence the development Of emerging firms operating in the global markets. Some countries may experience economic depression.
The economic depression is capable of influencing adverse reaction worldwide (Hamilton, 2015). There would be an increase in competition between companies. Small companies may be the victims of the competition because they are not fully established to operate in the global markets. The emerging companies do not have similar resources to compete on the international level. Changes in globalization have the ability to decrease environmental integrity. This is evident when developed companies take advantage of emerging companies.
Strategies used by companies in Globalization Arcadia Group Limited has been able to adopt new technologies that provide efficiency while operating in the global environment. This has made more people aware of the existence of the company. The company has been able to strengthen their ability to invest in infrastructure. The company is focusing in maintaining infrastructure in order to compete in the global market. The company management has been able to utilize the market indicators and performance drivers in achieving their market objectives in the global environments (Hamilton, 2015).
The company has also adopted marketing Strategy to increase its dominance in the global market. Through marketing strategies, the company has been able to identify target consumers easily. The advertising strategy has been achieved through the existence of new technologies in the company. Arcadia Group Limited has advanced technologies that have propelled the global community to purchase their products. The advertising strategies have provided efficiency in marketing strategies. The company also uses business strategy to raise the finance of operating in the global environment (Jose et al. 2003).
The company is able to expand by purchasing new assets that include new stores in different parts of Europe. Through this, the company has been able to expand its operation to different nations. Conclusion Globalization involves economical, social, political, and cultural changes that have existed in the world for the past fifty years. Companies have found some benefits in the world of economics. In countries with developed economy, the rapid liberalizing has provided a sustained and stable environment. In countries with poor economy, the progress in the private sector and liberalizing has been slow.
The ability to adjust the legal system has also transformation. The ability to reform the financial sector has also contributed to the existence of the current business environment. Politics plays a critical have existed in both economics and technologies. Most companies operating in global environment have been able to adopt some strategies that will enable them increase their efficiency and stability in the global environment. References Gar;newelder, A. (2008). Analysis Of Ionians Corporate, business, and racketing strategies. M;niche: GRIN Average Gumbo.