Question

Demonstrate the impact of globalisation on big and small businessess.The companies are Vodaphone(BIG) and Giffgaff(SMALL) How are they different using these factors: -Size,location ,employees,local or global,organisational structure(functional/divisional/matrix).I'll give you thumbs up its an elaborate answer.

Answer 1

Globalization

Globalization is the process of interaction and integration among people, companies, and governments worldwide. Globalization has accelerated since the 18th century due to advances in transportation and communication technology. Globalization is a term given to the opening of borders and the increased mutually beneficial relationships between countries so that trade and services may be shared freely.

Positive Impact of Globalisation
(i) Availability of variety of products with greater choice and quality that too at affordable price.
(ii) Creation of new jobs and higher standard of living. Negative Impact of Globalisation.

Negative impact of Globalisation
(i) Thousands of uneducated and unskilled labourers have become jobless due to closure of various units.
(ii) Most of the small industries like toys, tyres, plastics, dairy products have been hit hard due to foreign competition.

Globalization creates greater opportunities for firms in less industrialized countries to tap into more and larger markets around the world. Thus, businesses located in developing countries have more access to capital flows, technology, human capital, cheaper imports, and larger export markets. Globalization allows businesses in less industrialized countries to become part of international production networks and supply chains that are the main conduits of trade.

The impact of globalisation on business

• Increased competition - This is caused by more foreign investment flowing to countries, de-regulation which allows businesses to enter markets from which they once precluded.
• Greater awareness and reactions to customer needs - The consumer is now very selective on such essentials as quality, service and price.
• Economies of scale - By selling across many continents business can acquire economies of large-scale production. This makes them very competitive.
• Location flexibility - Many modern production techniques and service provisions can be allocated almost anywhere. This allows to them gain the advantages of low cost labour and other resource charges.
• Increased mergers and joint ventures - Allowing access to bigger markets and associated cost advantages.