Introduction to International Business Market of China and UK
Current research report is based on identifying all the risks factors that are affecting the existing business of UK and China on a global level. The major aspects covered in the whole report is international businesses as it target major country's market such as United Kingdom and china which is higher in terms of technology that boosted its current market share and in turn increases its overall value in the external environment (von der Heidt, 2015).
Assessment of the existing market is essential for the external users in order to invest in the current market as investing in strong market will in turn increases its overall sales and the revenue. Image of the business will be created easily by catering all the services to the consumes in order to capture higher market share. Walmart sector has chosen as common organisation that exists in both the location as it is located on a global level which helps in ascertaining the actual condition of international business.
The current condition of an entity will be easily determined by achieving desired aims and targets within a given span of time. Risks is regarded as the common factor incurred in every enterprise whose efficiency will be judged by an entity owner in their business which helps in strengthening the current business. Being a global business Walmart is required to change their traditional practices according to the external market changes as in this way the worth of an entity will get increases (Zhilong, Bowen & Yu 2015).
Role of an entity is important for an enterprise as this helps in generating higher sales and the revenue in short span of time as compared to the existing market rivals. Risks are associated with an entity need to be recognised by an employer by analysing their performance in relation to several parameters set by them in order to grab higher market share. Risks will be minimised by an entity owner by emphasises on the desired aims and targets which enhances the quality of services offered by them to all its stakeholders.
Negative factors are taken as one of the important parameters in order to improve the current business performance of an entity as their desired aim is to grab higher market share. The current business condition of an entity will get improved with the passage of time when an employer emphasises on the desired needs and expectations (Wood, 2015). Existing business condition are analysed properly in order to target higher market share as global entity who surpasses its domestic boundary require unique skills in order to maintain its survival for long time in the current business.
1 Literature Review
Factors That Might Create Risk For Businesses Like Walmart
According to Wu & et. al., (2015) which observes that Walmart is a global organisation operated on global covering major market shares of various countries. Being a global organisation they are required to manage all its operations in the best suitable manner. Satisfaction of customer's needs and expectation will be helpful for an entity in order to create loyal customers. Risks will be ascertained by an entity as this would affect the entire financial as well as non-financial performance of an entity over a certain period.
Risky factors are required by determined as the Walmart is global enterprise which is locating in both UK and China businesses that may influence its existing market share to be affected with the wrong usage of information on global level. Basic factor of risks faced by an entity is higher level of competition faced by an individual operating their firm by offering unique product or services in the external business environment.
Caraway (2016) has asserted that risks is always negative for an entity as it affected the current status of an entity which gets disturbed due to the heavy imposition of external market pressure. Political risks is one of the risk faced by Walmart as governments of a country will intervene in the every business decision taken by an entity. The impact of the political risks affected an entity for long term as every legal reform launched by an entity will restrict the existing actions of the business concern.
Political decision's and its stability needs to be analysed by an entity in advance as this would affect its entire business performance. Launching of any new products or services in the existing market require prior approval of the government by taking legal licensing and permission in order to implement their decision without any burden in the external market. An entity is required to analyse its actions in relation to the external party's aims and targets which needs to be completed within a short span of time. Political risks incurred in the external environment of UK and China are required to be ascertained by Walmart as this would affect all it investment requirements of a business.
Investment in the Walmart gets reduces when heavy duties and legal reforms created by the legal authorities of both the countries. Global enterprise are required to follow all the rules and regulations that facilitate their firm in enhancing their existing business by targeting higher audiences in the business environment. Another risks faced by Walmart in relation to the geopolitical segments which includes that Walmart faces challenges in terms of supply chain management. Export and import restrictions imposed on an entity also restricts their geographical boundaries in order to transfer all its products or services from one place to another without affecting its current market share.
China – UK Trade: The Effects of Brexit, (2017) has asserted that Risks factors are required to be assessed by the researcher by evaluating the existing conditions of both the country's trade relations as they both covered in the European market. BREXIT impact can be positive or negative for UK and china. Trade relations of UK and china is strong enough as they trade most of the goods from one pace to another which requires legal permission of BRXT in order to negotiate.
There is positive partnership of UK with the European market as smooth trade relations of the country is possible with the current partnership. On the other hand, china is regarded as the biggest trade partners of UK. The Biggest issue faced by UK is to get imported goods from china in UK as this is due to over dependence of UK for all the resources from China in the china. This dependency depicts the new opportunity for trade among both the countries.
Political issue is the major trade issue faced by both UK and china as the political clashes of their government deteriorates their current trade relations. Due to unstable political conditions BREXIT intervenes in the trade among both the countries as china ranks among 7th Largest export market of UK.
Market share risk is another factor that affects the existing business performance of both UK and china as the import of china generates higher sales and he revenue over a certain time period. Import and export process will be performed in both countries as china imports its goods to UK and in return UK exports variety of goods to china.
These process will generate higher share for both the countries as both of them get higher market opportunities. The decision of UK in order to quit the European Union which indirectly affects the market share of china as it enjoys higher share in EU.
Position of Walmart in Global Market
According to Zander, McDougall-Covin & Rose, (2015) Walmart is facing competition from local and multinational chains which includes Metro AG (MEO.DE) in Germany, Loblaw Companies (L.TO) in Canada, Carrefour SA (CA.PA) in France, Ahold in the Netherlands and Tesco (TSCO.L) in the United Kingdom. Also, international revenue of the company is growing fast. Walmart is the biggest employer in the world after Chinese army and UK department of defence.
It has 11000 stores spread over 27 countries with 2.2 million employees. In past three years its sales grew by total of 8.6 percent. However, Walmart keep on focusing strategies like everyday low prices and everyday low cost which helps in establishing price leadership in the country, with this Walmart also launched click-and-collect in UK (Walmart in UK, 2017). Likewise, the company manages e-commerce in 11 countries counting US.
According to Morschett, Schramm-Klein & Zentes, (2015) recently it has enhanced new shopper endorsement engine to personalize products searches, also the company is engaged upgrading digital and mobile connections. In last 1 year, Walmart multiplied the number of products available by 2 times in china and 10 times in Brazil (Wal-Mart And China, 2015). Unlike, the company also been suffering losses on web sites but in contrary Walmart is expecting a turnaround in its online business by twenty eighteens.
As per the views of Stahl & Tung (2015) the company is trying out trials on online grocery concept in some specific western markets of US. And this to directly give competition to Amazon's Fresh that is Amazon Online Grocery. As stated in past studies online groceries was not profitable so it will be fascinating to see Walmarts's strategies of Everyday lowering prices and Everyday day lowering costs. The company's profitability index is going up right through starting because Walmart service strategy is to respect individual, high standard of service and constant strive for excellence.
2 Research Methodology
- Evaluate factors that might create risk for businesses like Walmart?
- What is the position of Walmart in global market?
- Determine measures that Walmart employs to control risk.
- Suggest some ways that can improve risk management aspects within organisation.
Research questions are framed by a researcher in order guide all their actions as their main motive is to collect important facts and figures in concluding the research assumptions. Hypothesis are build by a researcher that will be helpful for them in order to generate outcomes in terms of data that are used in order to test all the hypothesis in a research study.
Hypothesis are tested while conducting research as in a research study all the assumptions are proved by an individual by collecting relevant data on all the questions (Fletcher, 2017). Research questions are act like a compass which provides right direction to an entity in gathering important data for summarising all the data towards the common aim of the research.
Research questions are developed by a researcher is to be presented in a research methodology that help an individual in order to gather important data related to the current research. Data collected by an individual are tested in relation to various factors as this enhances the overall quality of information included in a research report (Mansuri and et.al., 2017). Research methodologies are used by a researcher in order to guide all their action to mould their research in a right direction. Right direction is regarded as one of the important approach while conducting a research
Data Collection Methods
It is the information which is collected from the source of personal interview, survey and questionnaire. The researcher has specific intention for a particular subject, the observation and discussion are made by the person who is collecting the data. It is called as direct approach, which is tailored to a company need of information (Willig & Stainton-Rogers (Eds.) 2017).
The process of collection is lengthy but it is first hand information where changes is not largely done. Personal interview is the form where the interviewer ask questions and that may be structured or unstructured and insights are gathered whereas in survey, the questionnaire is prepared and that is structured. Set of questions are asked and survey is organised to collect data.
It is gathering of data from that sources where the information is already being collected. It can be journals. Internet, company records or corporate or governmental archives. The data needs modification to fit into objectives because the information is not assembled personally by researcher. Basically it is second hand or re-used data that is collected from primary day (Le Roux, 2017). The data is collected for some other purpose but the research find some information which is needed by him, so that data is collected. The sources are selected on the basis of problem arises and then further discussion are made to re arrange the relevant data and then decision are made by analysing them
Current research report will emphasise on two important method of analysing the collected data related to research includes qualitative and quantitative techniques of analysing the information gathered by a researcher. Qualitative technique focuses on proving a theory which is backed up with theoretical explanations used by an individual in order to develop a theory. Globalization principles are used in order to identify the existing business conditions of both UK and China businesses (Wilson (Ed.) 2017). These principles are used in order to ascertain the existing status of Walmart in international level by comparing it with other firms in similar or other sector.
On the other hand, Quantitative technique will adopt by a researcher in which statistical figures and numerical analysis are used in order to assess the collected data. Statistical tools are used in order to assess the current performance of the collected data by a researcher as the major duty of the supervisor is to generate the final outcome out of the main research conducted to resolve the major issue.
Research techniques are used by an individual as their focus lies on improving the existing business performance of an enterprise. Research methods are adopted by a researcher in relation to the needs and expectations of a business as their major role is to cater the needs of all the users lies in the external business environment. Reliability measures to be used as rational factor of particular research as it signifies that the researcher has collected all important information from a reliable source and authentic enough to support the basic aim of a research study.
Validity of research shows that a researcher has collected important information for the betterment of research. This shows the validity for the further research conducted by an individual in the near future. Different nature of research evaluation technique will e utilises by an individual in order to generate the final outcomes of particular research. Quantitative research studies are conducted by a supervisor that depicts the validity and reliability as the data collected by a person reflects the data in monetary terms (Fletcher, 2017).
On the contrary, to it qualitative research technique has uses that analyses al the theoretical concepts very effectively in order to support an entity in determining the truth behind the research process. The procedure followed by an individual depicts its effort applied by a researcher in order to collect important data in order to met the desired needs and expectations of the external market users. Research limitations are also covered as this shows the limited resources accessed by a researcher while collecting data as focusing on international entity Walmart domestic market share of both UK and China businesses.
3 Data Analysis
In relation to the literature review, findings of the researcher will be evaluated in the current phase as all the data collected by an individual by comparing it with the past research studies of authors are mention in the data analysis phase. Political risks is found to be the biggest issue faced by Walmart being a global entity that located in both UK and china business. International business employer are required to analyse their political pressures as this would affect their existing business performance of Walmart (Wang & et.al., 2015). Walmart located in UK and China are required to follow both the political restrictions as analysing all the rules in advance will be helpful for them in operating their business with greater ease.
On the other hand, it has been evident from the literature review that geopolitical issues faced by Walmart too in which geographical restriction are increases for this international entity by facing political restrictions in terms of supply chain management of their business. Uncertain political conditions of UK and china is affecting their current business in order to export or import all their gods or services by surpassing their domestic boundaries.
Results of an author reveals that market share of Walmart has increases over a certain period as compared to its past performance as being global enterprise they dominate its mots of the markets due to customer loyalty and trust (Li, Song & Wu, 2015). Market share of this entity has increases by 8.6% as compared to its earlier performance which depicts its current skills and the ability. The position of Walmart as a global leader is higher in relation to all other business sectors in a world. Market share of UK market is higher than compared to the China market.
Price affordability is the important strategy of Walmart in order to challenge existing entities in UK and China to contract their current market share. Amazon fresh share get reduced with the competitive strategies used by Walmart. 56% market share captured by Walmart with the introduction of various policies and objectives created by them.
Various approaches to eradicate existing risks faced by Walmart by a researcher includes legal and market integration in which trading agreement are evaluated in relation to UK and China businesses (Li, Song & Wu, 2015). Transparency of business actions has increases among the external users in order to attract the interests of most of the investors in the current business. Working environment of Walmart are according to standards that help its employee to retain for long time in the business.
In accordance with the literature review conducted by a researcher ascertained that trade relationship among UK and china got affected with the imposition of BREXIT laws and regulations. Both the countries have higher market share in the international businesses as china is key market for UK who exports goods to UK and in turn utilises the variety of goods of UK. Positive partnership of UK in EU support the trade among both the countries but the political conditions of the china created lots of difficulty in the path of trade.
Political condition of china is unstable as the prime minister of china creates trade obstacles for UK in order to import goods in relation to the rigid policies of BREXIT. In a global economy, free trade will be conducted among one country to another in order to explore variety of options in order to enhance their existing role in the external business environment. Prime minister of china opposes the proposal of UK for free trade agreement in order to protect the domestic goods of their country.
Another risk faced by the current trade path among UK and china is market share which gets affected due to the tough decision taken by British government to quit the EU. Being a positive partnership they can run their business smoothly but due to higher interference of BREXIT their revenues are decreasing that is the reason they quit EU. This decisions affects china very badly as their trade relation with EU is good enough which generates higher share in the market for them.
It can be concluded from the above research report that political or geopolitical risks faced by Walmart affecting its entire performance. These pressures are required to be analysed by an entity as this may affect their performance in the near future. Market share of Walmart is higher than large number of stores of this entity enhances its value in front of the external business environment. Legal regulations are followed by this entity will be helpful for them in order to improve their existing performance.
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