- Provide with benefits and limitations of a global business environment.
- Explain briefly the literature review that indicated the importance of early research and how your research can contribute to the area.
- Discuss the timelines of research activities.
Introduction
Global business environment can be defined as the task and societal environment of an enterprise, which is impacted by the international forces (Adams, 2015). These force include international global labour market, technological, economic, political and legal force, and global competition. For this research project, chosen company is âAviva plcâ which is a British multinational insurance organisation. It was founded by Sir Adrian Montague in 2000 and headquartered in London, UK.
Background
Globalisation has led to maximising competitions and a financial and economic shift developing to emerging economics. It encourage a sense of cultural awareness, global economic inter-dependency and international co-operations. For this, Aviva plc decide to expand business functions in emerging country which will help them to gain competitive advantages and achieve better outcomes for their global business. Global business environment provide different benefits and drawbacks to the company to enhance their business functions and overcome risk which arise during the process of globalisation. Along with this, in order to globalise business function at different nations, there are different options such as Joint venture, Franchising, Strategic alliance, Acquisitions and many other. All this are essential and important ways but Aviva plc only use joint venture (Andriof and et. al., 2017). Main reason behind selecting this mode as it can support an organisation to increase productivity and grow business faster.
Research Aims And Objectives
Research Aim:
"An investigation into benefits and drawbacks of a global business environment on functions of an organisation". A case study on Aviva plc.
Research Objectives:
- To analysis the basic concept of global business environment.
- To investigate the benefits and drawbacks of global business environment on functions of Aviva plc.
- To identify the impact of global business environment on functions of an organisation.
- Recommend different ways through which company can easily globalise their business function.
Research Questions
- What are the basic concept of global business environment?
- What are the benefits and drawbacks of global business environment on functions of Aviva plc?
- What are the impact of global business environment on functions of an organisation?
Rational For Choosing The Research Topic
Main reason behind choosing the research topic is to analysis the importance of global business environment for an organisation. This is one of the best concept for the company to expand their business functions and accomplish better outcomes (Awa, Ojiabo and Emecheta, 2015). This help an enterprise to retain strong relation with international clients and increase their sales and revenues. Therefore, the major reason for conducting the investigation is to exploring the knowledge and skill base of learner in the particular area of research. Another important reason for conducting a study is to addressing the problem of previous study by collecting reliable and important data in respect to the research issue.
Literature Review
It is defined as the search and evaluation of the available literature so as to find the issue related to a particular topic or area. It defines the detailed view of the perception of researcher. It is used to address the objectives and aim of the research.
To analysis the basic concept of global business environment.
According to Tanner, (2018), the ability to assist and hinder the functions of a business is known as global business environment. If a company is processing its business in global market than the effect of global market will be on the company. If market going to its height it will impact on the functions of organization positively and vice versa. This is the change for which every company which is going to invest globally should be prepared. Since Aviva plc is also operating globally, therefore the impact of global market also affects it's functions. Basically there are four components which can affect the business of Aviva plc. Such as competitors, suppliers, distributor, customers. In global business environment, companies which are selling the same products or services with Aviva plc are known as the competitors. The suppliers are those who provide raw material of services to Aviva plc. The distributors are responsible to distribute the services of Aviva plc to its customer. Customers are the end user of the services provided by Aviva plc. All of the above components of Aviva plc affects the working or functionality of company into global business environment.
Benefits and drawbacks of global business environment on functions of Aviva plc.
According to Anderson, (2017), the main advantages and disadvantages of global business environment on the functions of Aviva plc are as follows:
Advantages
The main advantages of Aviva plc to be globalized is that it does not depend on its local economy and can continuously invest in the global market. Every company has the target of increase in sales and service. If a company is providing its services in a specific country than it would not have the chances to expand its business globally. Entering into the global business environment provides and opportunity for Aviva plc to expand its business across the globe and thus can increase its sales and services.
Disadvantage
The disadvantage of entering into the global market to any company is that the result to entering into global market will not come in quick time, it can take a number of years to show the result. Another effect is that, the company requires additional workforce or resources to come and serve for them. The factors of affecting the business will also increase when entering into the global market. Companies like Aviva plc has to modify the changes according to the requirement of the local customers in which market is exploring.
Impact of global business environment on functions of an organisation.
According to Leigh-Hunt, (2016), following are the impact of global business environment on Aviva Plc.
Political:
When Aviva plc is going to invest its business in global market than it has the biggest influence of political stability of that country in which its is going to invest. If the policies of that country does not follow the structure of Aviva than it has to change its policies which will impact its business functionality. Change in the policies of Aviva is necessary for the company to survive in other country.
Economical:
If Aviva is going to invest in other countries than the economical factor of that country also affects the working of company. If the economic condition of country is not good i.e. the purchasing power of customers is not good than the business of company will surely affected. Thus company should invest in that country where the economy will be strong enough to built a new market.
Social:
The social factors include the personal aspects of customer such as nature, knowledge of product or services, reliability etc. Aviva group should compare the social and itself factors so that its product will be able to purchased by the customer of country where it is investing.
Different ways through which company can easily globalise their business function.
According to Miley, (2018), the ways through which a business a globalise itself are stated as follows:
Joint Venture:
If a company does not mind to share their business than joint venture is good option for a company which is going to start its business on a new soil. Aviva plc can start its business with a company which is already operating in that country. This will surely reduces the cost of both companies and the profit and loss will be divided accordingly.
Acquisition:
If Aviva plc have sufficient funds than it can acquire a company which is already operating its business in that country. Acquisition suggests that the company will be truly owned by Aviva and thus they can easily enters into the foreign market. The policies and laws can be used by Aviva because the acquired company is well known with.
Franchising and Licensing:
If Aviva wants to establish its business on foreign soil with its name than franchising and licensing is the better option for them to start globally. A person or company will use the name of Aviva to start its business, the resources and mechanism will be offered by Aviva and it will get every year fee of using its name by others.
Methodology:
Research Approaches
Research Approaches are the plans and the procedures which consists of the steps to perform a particular task after the analysis about the related task. There are two types of Research Approaches. These are:
- Qualitative Research Approach: This approach provides the knowledge about the opinions, thoughts regarding the project at a broad level. It is used to understand the reasons and for the in-depth research of the task (Buckley and Ghauri, 2015).
- Quantitative Research Approach: This approach uses the numerical symbols and numbers in its research. These approaches are mainly used for the surveys and statistical data collection.
In this Research Approaches, Qualitative Approach is preferred as it provides an in-depth research and detailed description about the research done.
Main Research Techniques
For developing the research and the getting more knowledge about the topic, research techniques are used. Some of them are:
- Interviews: An interview is a conversation in which face-to-face questions are asked by the interviewer and answers are given by the interviewee (Cavusgil and Knight, 2015).
- Questionnaire: A questionnaire is a set of written questions and answers made for the purpose of surveys and research.
- Case Study: Case Study refers to the detailed examination and study of a subject with its real life context and explaining in the form of a formal research.
- Modelling: Modelling refers to the analysing and collection of those data which supports in the specific study of the topic.
In these Research Techniques, Questionnaire is preferred to use because the data collection is not on a broad base. Data is collected which relates to the questions directly.
Data Collection Procedures
Data Collection Procedures is the process of collecting the quality information in order to provide the relevant answers to questions. There are two types of Data Collection Procedures:
- Primary Data: These are fresh collected data or can be described as the first hand collection of data is known as the Primary Data (Dyllick and Muff, 2016). The Difficulties in Collecting Data from Primary Source is that it is a time consuming process and it is also an expensive work.
- Secondary Data: The data which we has been already presented by someone else and now it is collected for the evaluation or for the study purpose. The difficulties in Collecting Data from Secondary Sources is that the data may be wrong or irrelevant to the topic.
The use of Primary Data is preferred because it directly comes from the observations, actions and reactions on the different issues and it is mainly related to the specific study related to the topic. The sources can be the speeches, interviews, questionnaire, paintings, photographs and many more.
Analytical Techniques
Analytical Techniques are those defined techniques or procedures which tells the researcher how to analyse a problem or the fact related to the problem. These techniques are classified into time-limited and task-limited.
On the basis of the time limited techniques, Gantt Chart is used in the project management. With the help of this chart, the specific time required for the completion of any project can be evaluated (Eloranta and Turunen, 2015). Or in other words, it can be said that the most suitable time related to the completion of research activities such as defining aims and objectives, literature review, etc. is presented through Gantt Chart.
Timeline of Research Activities
Timeline is identify as one of the main and important part of the research because with the help of this researcher can easily analysis opening and closing time period of research activities. For this Gantt Chart introduce as a horizontal bar chart that gives a graphical illustrations of a time that assist to plan, set up and track particular tasks in the research project. Gantt charts are useful and effective for scheduling and planning project (Epstein, 2018). They support an investigator assess how long a research project should take, analysis the resources required and plan the order in which research complete all tasks. This tool also essential and helpful for the investigator in managing the dependencies between each and every activity of research. There are different activities for this research project such as problem identification, aims and objectives, literature review, research methodology, collection of data, analysis of data, conclusion and recommendation and submission of final project. All this steps are useful and important for an investigator to identify time opening and ending time of all research activities. Thus, it is useful and valuable for an investigator to achieve effective outcomes for the research project.
PART 2: RESEARCH PROJECT
Methodology
The process of collecting data so that business decision can be taken easily is known as Research Methodology. Research Onion is used in research methodology to explain different models and approaches related to research (Gurung and Prater, 2017). It is used by a researcher to collect the proper information of the related topic so that the research can be accurate and correct. The research progresses from outer layer to inner layer of research onion. The framework for research methodology are as follows:
Research Philosophy:
This is the outermost layer of research methodology in which pragmatist research philosophy is taken into consideration. The reason behind using this research philosophy is that it helps in the opportunity to mix different methods in research. Apart from this philosophy there are another philosophy of research such as positivist and interpretivist research philosophy. But these philosophies does not fit in the requirement of research. The pragmatist research philosophy is considered to be standing between the positivist and interpretivist research philosophy. This philosophy is focused in identifying the solutions to the issues with the help of theories and frameworks. The pragmatist research philosophy is considered to be new in comparison to other research philosophies.
Research Approach:
It is the next layer of research onion in which deductive approach is taken into consideration because its best suits with pragmatist research philosophy. This approach helps in finding the research objective because it allows researcher in forming the views of issues in research. The views are formed by using the structured questionnaire so that questions related to issues in research can be asked (Hashemi, Karimi and Tavana, 2015). The another research approach which can be used is inductive research approach but deductive research approach is best suits with pragmatist research philosophy.
Research Strategy:
It is the third layer of research onion in which case study research approach is taken into consideration. The case study research approach is based on the use of survey questionnaire. With use of this research strategy the researcher is able to study the case of research by which it can easily identify the findings of research. When case study research approach is used a researcher is helped in providing stronger relevance in terms of the applicability of the research result. If a general research strategy is taken into consideration the researcher cannot be able to meet the requirement of its research.
Research Choice:
It is the next layer of research onion in which two types of approaches can be considered such as qualitative and quantitative (Herrera, 2015). The approach here taken in this research is qualitative research approach because the main motive of this research is to be acceptable at the quality of data collected. The quality of data is collected with the use of structured questionnaire which helps in the collection of data with accuracy and correctly.
Time Horizon:
It is the next layer of research onion in time taken to complete the research is considered. The approach in time horizon is cross sectional approach in which the focus of the researcher is on current situation of the study. The other approach in time horizon is longitudinal approach in which the researcher is required a periodic study in a specific period of time. That is why cross sectional approach is best suits with questionnaire approach.
Techniques and procedures and research instruments:
It is the next layer of research onion in which techniques related to research are considered. There are two types of research to be conducted such as primary research and secondary research (Kennedy, Welch and Monshipouri, 2017). In primary research a questionnaire is prepared on the basis of current situation so that these can be asked to the respondents. In the secondary research the data is collected through books, journals, magazines etc. The questionnaire prepared should be answered by the respondents easily such that these should be close ended so that the respondents can answer in Yes, No, and no idea.
Data Sources:
The data sources depends upon mainly two types of sources such as primary research and secondary research. In this research primary research is taken into consideration as the data collected in it is based on the questionnaire. The secondary research is based on the data collected through books, magazines and journals etc. The data of books and journals is not totally dependent over factual data. Hence primary research is taken in this research project.
Research Sampling:
It is the next layer of research sampling. In this layer, the questionnaire prepared should be short and concise enough so that it can be easily understandable by the respondents. The respondents used in this project are 30 which are asked to support the questionnaire. In this step, a convenience sampling approach is taken into consideration (Kuratko, Hornsby and Hayton, 2015). This approach is helpful in identifying the potential respondents for the research questionnaire.
Research Ethics:
In research ethics, the result to the respondents and data collected through primary research should be robust and relevant to the study of the project. If it is not done that the quality of research is not considered to be the best. Therefore research ethics totally focuses on providing the accurate and convenient data to the research.
Research Limitation:
The limitations of research are the time and accuracy of the research. Each and every research has its time horizon in which the time to complete the project is entitled (Lasserre, 2017). If the research is not completed within time it will be a huge loss to the researcher because data will not remain relevant and robust after the time of completion of research.
Research Reliability and Validity:
The reliability of research depends upon how the respondents behave on the questions of questionnaire. If perception of different respondents is different on each question than it should be validate enough so that almost same perception can be found in them. The validity of project depends upon the questionnaire, it should be close-ended that the respondents can answer the question with an ease (Laszlo and Cescau, 2017).
Research Budget:
It includes the complete cost of pursuing the research. The cost of budget is allotted once in a time therefore the budget should be estimated with the risk also. Reallocation of budget is not good for regular researcher so it should be completed within the allotted budget.
Results/Findings
It is identify as an effective and useful part of the research project which is based on questionnaire. In this, researcher prepare a questionnaire of 30 respondents. Questionnaire refer as a useful instrument of primary research and help an investigator to accumulate relevant information about the topic from the participants (Quarshie, Salmi and Leuschner, 2016). Questionnaire of 30 respondents are describe as under:
Q1) Are you aware about the concept of global business environment? |
Frequency |
|
20 |
|
10 |
Q2) What are the main reason of Aviva plc for globalise their business functions? |
Frequency |
|
15 |
|
15 |
Q3) Are you satisfy about the insurance services provided by Aviva plc? |
Frequency |
|
15 |
|
10 |
|
3 |
|
2 |
Q4) What are the different ways used by Aviva plc to globalise their business functions? |
Frequency |
|
15 |
|
10 |
|
5 |
Q5) What are the benefits of global business environment on functions of Aviva plc? |
Frequency |
|
15 |
|
15 |
Q6) What are the impact of global business environment on functions of an organisation? |
Frequency |
|
10 |
|
10 |
|
10 |
Q7) What are the drawbacks of global business environment on functions of an organisation |
Frequency |
|
12 |
|
10 |
|
8 |
Q8) What are the key implications of globalisation for Aviva plc? |
Frequency |
|
10 |
|
15 |
|
5 |
Q9) Is global business environment essential for growth and success of Aviva plc? |
Frequency |
|
25 |
|
5 |
Q10) Is globalisation help an organisation to increase awareness among customers. |
Frequency |
|
20 |
|
10 |
Graphical Presentation
Q1) Are you aware about the concept of global business environment? |
Frequency |
|
20 |
|
10 |
Q2) What are the main reason of Aviva plc for globalise their business functions? |
Frequency |
|
15 |
|
15 |
Q3) Are you satisfy about the insurance services provided by Aviva plc? |
Frequency |
|
15 |
|
10 |
|
3 |
|
2 |
Q4) What are the different ways used by Aviva plc to globalise their business functions? |
Frequency |
|
15 |
|
10 |
|
5 |
Q5) What are the benefits of global business environment on functions of Aviva plc? |
Frequency |
|
15 |
|
15 |
Q6) What are the impact of global business environment on functions of an organisation? |
Frequency |
|
10 |
|
10 |
|
10 |
Q7) What are the drawbacks of global business environment on functions of an organisation |
Frequency |
|
12 |
|
10 |
|
8 |
Q8) What are the key implications of globalisation for Aviva plc? |
Frequency |
|
10 |
|
15 |
|
5 |
Q9) Is global business environment essential for growth and success of Aviva plc? |
Frequency |
|
25 |
|
5 |
Q10) Is globalisation help an organisation to increase awareness among customers. |
Frequency |
|
20 |
|
10 |
Discussion
It is another important part of the report which is based on the result of literature review and questionnaire. According to the questionnaire different number of themes are made and as this its interpretation. It is determined as under:
Theme 1: Awareness about the concept of global business environment
Interpretation: From the above mentioned information, it can be concluded as global business environment is biggest concept for an organisation. For this 20 out of 30 respondents are aware and remaining population not aware as per the same.
Theme 2: Main reason for globalise
Interpretation: According to the above given information, it can be determined main reason of company for globalise their functions. In this respondents are give equal chances to the enhancement of financial performance and encouraging market competitiveness.
Theme 3: Satisfaction level of customers towards insurance services
Interpretation: According to above data, it can be summarised customer's satisfaction level towards Aviva insurance services. In this 15 respondents are satisfy, 10 are highly satisfy, 3 are dissatisfy and remaining are highly dissatisfy.
Theme 4: Different ways of globalise business
Interpretation: As per the above given information, it can be concluded that there are various entry mode for company to globalise their business functions. Beside this 15 are favour as joint venture is more useful, 10 are suggest company should apply strategic alliances and rest of the respondents are recommend company should follow acquisition.
Theme 5: Benefits of global business environment
Interpretation: Global business environment is more essential and benefit for the Aviva Plc. For this respondents are provide equal possibility to exporting opens new market and expansion of business internationally.
Theme 6: Impact of global business environment
Interpretation: According to the above given data, it can be determined global business environment impacted on business functions in different ways. In this participants are give equal possibility to political, economical and social factor.
Theme 7: Drawbacks of global business environment
Interpretation: According to the above data, it can be concluded that there are different drawbacks faced by company during expansion of business functions at global level. In this 12 out of 30 respondents are favour as new regulation is main drawback, 10 are agree as different cultures are main risk and remaining population are favour as risk of proprietary information theft is highly impact on business.
Theme 8: Key implication of globalisation
Interpretation: According to the above stated data, it can be summarised as there are different key implications which are used by the company. In regards of Aviva Plc, company increase trade across borders of services and goods. It is essential for an organisation which is agreed by 15 out of 30 respondents. 10 are agree as emergence of global brand is effective and rest of the population favour as greater outsourcing and offshoring of production is main part of globalisation.
Theme 9: Effectiveness of global business environment
Interpretation: According to the above given information, it can be determined global business environment is important for the success and growth of Aviva Plc. This statement is agreed by 25 out of 30 respondents and rest of the population are not agreed as per the same.
Theme 10: Helpfulness of globalisation
Interpretation: From the above determined information, it can be summarised as global business environment help an enterprise to maximise awareness among customers. For this 20 respondents are agreed and 10 are disagreed.
Discussion about Literature review
In globalization companies are allowed to start their business on foreign soils also. This will give them the chances of increasing their sale and services. Apart form these opportunities there are some challenges also which can be faced by the companies in investing other countries. The effect of global market also affect the functionality of company in several methods. The operations of company can be affected with positive or negative (Riasi, 2015). The company can feel positive aspect of globalization when it will get the opportunity of investing in a country where the political aspects are in favour of Aviva. The negative aspect can occurs when the social and economical aspects are not in favour of company.
Apart from the affects, Aviva can have advantages and disadvantages of foreign investment. The main advantages is that company has the chance of expanding its business across the globe. If opportunity is grabbed by the company than it would be a chance for the company to reduce the dependency on its local market such as UK in which Aviva is situated. The disadvantages of investing into the global market also present for the company. The company will face serious issues regarding the availability of workforce and other resources. Apart form that company can have issues related to change in the policies of it because sometimes it cannot match with the policies of other country. To match the policies and performing business operations smoothly Aviva has to start accepting the foreign policies so that it can survive its business easily.
There are factors also which can influence the working of Aviva in global business environment. The factors include political, social and economical (Rothaermel, 2015). In political factors, the policies of the country in which Aviva is going to operate its business will be counted. The policies should be to support the foreign business to survive in that country. If the policies are not in favour of company than it would be a huge tension for the company to operate its business. The social factors include the knowledge, nature of the customers who have to use the end service of Aviva. If the customer are not aware of the services offered by Aviva than it will be a great challenge for the company to make its market their. In the end, the economical factor is also important if the country does not have potential customers who has low purchasing power than it will be a huge loss for the company.
The ways through which Aviva can enter the foreign market can be Joint venture, licensing and franchising, Acquisition. In joint venture, the company can come into global market by just invention with other company which is already in the same profession (Rugman and Verbeke, 2017). In case of licensing and franchising, the company can provide its name to a person or an individual to operate business on behalf of Aviva.
Conclusion
From the above mentioned information, it can be concluded that globalisation is a biggest and essential concept for the company to enhance their growth and success easily. Globalisation is a basic term which is followed by company to expand their business operations and functions. According to the questionnaire, more than half of the population are agree as globalisation is more significant concept for the company to maximise their sales and revenues as well as retain strong relation with global client. For enlarge their functions globally, there are different ways such as joint venture, Strategic alliance, Franchising, Acquisitions and many other. All this are useful but according to questionnaire, respondents are favour as joint venture is more suitable because it increase productivity of company. International business environment provide different benefits to the company such as by improving international relations, increasing sales, maintain goodwill and reputation etc. Thus, global business environment for insurance company is essential but sometime it has few drawbacks for an organisation.
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Recommendation
Since as per the above literature review and data, it is found that Aviva will face many issues and problems related to investment in global market. The problems can be political, social, economical and others. The company should try to invest in the country having proper policies of performing business operations. Apart from that, the company should try to invest in the region where there is awareness in the customers about the product or services so that Aviva plc could not survive in that region. The economical impact also affects the working of company in that region. The economy of that country in which Aviva is investing its business should be good enough so that its customers can have the power of purchasing the services offered by the company. The matter included in this research will be helpful for Aviva in future. The factors which can influence the working of company are explained. Effective measures can be taken by the company in future to overcome the effects and measure them.
Reflection
The researcher uses the qualitative methods and focuses on the collection of primary data by preparing questionnaires. It is because by doing Qualitative Research the data can be acquired with greater details regarding the research project. There is no need to work in a specified framework or any systematic way when collecting data from qualitative research but the content included in the research must match the quality of the data which is required (Saeidi and et. al., 2015). The research is based upon the human experiences which are more relevant and provides accurate answers to the topic. Also, if the research is not showing any results, it can easily turned to another direction in order to get the results. When research is done on a smaller size, the costs of the research as well as the time, both are saved as compared to other research methods. In other methods of research, there is a possibility of getting inaccurate answers because people may give answers in subconscious way. Through qualitative research, the respondent creativity of people can be encouraged and hence, data collected will be more accurate.
Another way of collecting the data is Primary Source. It can be described as the first hand collection of data which is acquired through observations, personal experiences, surveys etc. The method used in getting the primary source of data is questionnaire. It is a very familiar way of collecting the data as well as very economical. The data when collected through questionnaire saves time and effort. When quantified data is acquired, it can also be used to compare and measure other researches as to measure the changes occurred from the past.
Alternative Methods
For the collection of Data, there are various methods used according to the suitability and requirement of the project given. The preferred method of collecting the information is the Questionnaire. It is because by using Questionnaire, most of the people seeking information about the topic can reach to it in an easy and economical way. An effective questionnaire provides the exact answers for the research topic (Saeidi and et. al., 2015).
The results of a questionnaire can be easily and quickly collected. Also, it covers all the aspects related to the research topic The effectiveness of the Questionnaire can be easily checked as immediate response can be received such as the mailed questionnaire. The questionnaire does not put any pressure on the respondents as they may answer to the questions according to his will and wish. Apart from this the information provided in the questionnaire are more relevant and validated as compared to other methodologies.
The Alternative Method which is used in place of Questionnaire is Interview. But Interviews are not much used as they are time consuming and also requires many other tasks to be performed in order to conduct the interview. They are also costly in nature as compared to questionnaires. Also there is a possibility of personal bias by the interviewer in order to mark his views right. Also for conducting Interviews, the preparation must be done much time before and things become much complicated as fixing the timings for appointments for interviewers. Are you worried about assignment help at an affordable budget? Contact our experts.
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