Globalisation

Text 3

_{Adapted from www.computerweekly.com/news/366555332/Gymshark-turns-to-Google-Cloud-for-infrastructure-revamp-and-generative-AI-trials and www.retailgazette.co.uk/blog/2022/10/gymshark-ben-francis-ipo-sale/ and uk.gymshark.com/pages/about-us and en.wikipedia.org/wiki/Gymshark a}Gymshark Ltd

State one method of selling.

Analyse one likely impact on Gymshark Ltd’s customer service of using technology such as Artificial Intelligence (AI) within its app.

Analyse one advantage for Gymshark Ltd of operating as a multinational company (MNC).

Analyse one advantage and one disadvantage for Gymshark Ltd of raising additional finance by issuing shares.

Recommend whether Gymshark Ltd should use a share issue or retained profit to fund future expansion.

* Evaluate whether the economic climate is likely to affect Gymshark Ltd’s marketing decisions.

What has not contributed to increased globalisation?

A A reduction in shipping costs due to bulk containerisation

B An increase in labour migration worldwide

C Restrictions on international trade

D The internet and mobile communication technologies

Text 1

Unilever plc

Unilever plc is a multinational company that makes and sells a wide range of quality products including food, cleaning agents and beauty products across 190 countries.

Unilever plc has benefitted from operating in a global marketplace and the majority of its products are international brands. Some of its branded products include Lynx Body Spray, Dove Soap, Hellmann’s Mayonnaise, Ben & Jerry’s ice cream and Persil washing machine detergent. All of these products are made in factories all around the globe, some using flow production and others using batch production.

Unilever plc’s average revenue has grown over the last five years. However, the economic climate is becoming more difficult and Unilever plc’s directors are having to adapt to these challenges.

Fig. 1 Unilever plc worldwide revenue from 2018 to 2022

Identify two characteristics of flow production.

Analyse one way the marketing function impacts on the operations function of Unilever plc.

Calculate Unilever plc’s average revenue from 2019 to 2022.

Explain one way revenue affects a business’ decision making.

Explain how operating in a difficult economic climate might affect a business.

State what is meant by international branding.

Evaluate the benefits of international branding to Unilever plc.

Globalisation refers to:

A the financial data used to measure the success of a multinational company

B the interconnected nature of business activities across the world

C the interdependencies that underpin decision-making in a large organisation

D the relationships that exist between the functional areas of a business

Text 2

AstraZeneca plc

AstraZeneca plc (AZ) is a multinational pharmaceutical company that operates in over 100 countries around the world. AZ develops treatments for a range of diseases. It sells its medicines and vaccines worldwide. Its headquarters are in Cambridge, England. In 2021 AZ’s sales revenue was £37 417m, from which it made £24 980m gross profit.

AZ has a code of ethics, which is at the centre of everything that it does. The company has approximately 75 000 employees worldwide; 10 000 of these work in its three research and development centres.

AZ uses technology throughout its operations to provide high quality products for its customers. These customers include doctors, hospitals and governments from around the globe.

In the UK, AZ has changed the way it sells its products. Previously, sales staff would visit medical professionals; now it uses a call centre and website where medical professionals can order products and samples. AZ says this means it can now provide a high quality service that meets the needs of its customers at a lower cost.

Identify two ethical considerations a business may have.

State two reasons why quality in the production of goods is important to a business.

Analyse one reason why it is important to AZ that its call centre employees have good product knowledge.

Calculate AZ’s gross profit margin for 2021.

Show your workings

Answer........

Explain one way technology might affect production at AZ.

Analyse one advantage and one disadvantage to AZ of operating as a multinational company.

Recommend whether AZ should continue to operate as a multinational company.

Identify two possible advantages to a business of being environmentally friendly.

Explain one way climate change might affect business activity.

Analyse how BP’s finance function may influence its ability to meet BP’s objectives.

Calculate the percentage change in BP’s revenue between 2017 and 2019.

Show your workings

Answer........ %

Identify two factors that can affect a company’s revenue.

Identify two reasons why a UK business might choose to locate in another country.

Evaluate how globalisation has influenced where BP locates its businesses.

International branding requires a business to:

A advertise online

B ignore religious differences

C sell its goods in every country

D take account of cultural differences

Identify two factors that have led to increased globalisation.

Explain one possible advantage to a business of operating as a multinational.

Calculate, using the figures shown in Fig. 1, the number of Barclays plc’s UK personal banking customers who are likely to have used online banking in 2020.

Show your workings.

Answer........

Identify two impacts that e-commerce might have on business activity.

Analyse one way Barclays plc could treat its customers ethically.

Identify two factors that may influence whether a business invests in new computer technology.

Evaluate possible impacts on Barclays plc of investing in computer technology to provide

online banking services to its customers.