FirstGroup

FirstGroup Case Study

FirstGroup Case Study

Task 1

Effects of globalization on national economies

UK has one of the most open economies in the world and thus the process of globalization impacts the UK economy very significantly. Globalization has not only created more options for consumers but it also has created awareness amongst people, thus businesses now have to make sure that they are eco-friendly and that they do not harm the environment in any way (Dreher, 2006, pp. 1091-1110).

Globalization has completely changed and evolved the way businesses operate. And thus it has a profound affect on the national economies. Businesses now have to follow ethical rules and regulation, be environment friendly etc. Where on one hand globalization has decreased labor costs on the other hands business now have to be more responsible (Dreher, 2006, pp. 1091-1110).

UK is one of the most globalized country thus it has to make sure that the country's national as well as multinational corporations are responsible, ethical and not involved in any thing wrong. Apart from this when operating globally businesses operating internationally have to follow the rules and regulation of the host country. Globalization no doubt has brought endless business opportunities and large profits still with it; it has also brought more responsibility and accountability (Dreher, 2006, pp. 1091-1110).

Influence of international institutions

International institutions such as EU, WTO etc influence the way businesses operate world wide. Like for example Starbucks has to follow all the rules and regulations, policies, safety guidelines, health policies etc set by the European Union. These institutes influence the way Starbucks operates internationally (Hawkins and Lake et al., 2006).

Starbucks is heavily influenced by the EU and have to follow all its policies strictly. If the company under any circumstances fails to do so they will have to answer the European Union and may also have to face legal suits etc. Starbucks have to comply to these international institutes in order to operate internationally (Hawkins and Lake et al., 2006).

International institutes influence businesses so that the business follow the legal and social requirements, so that the product they offer is good and does not harm anyone. It is immensely important for organizations like Starbucks to abide by these policies. These institutes set strict quality related policies so as to ensure quality. International institutions are immensely important to ensure ethical and proper operation of businesses.

When operating internationally businesses have to fulfill certain requirements, follow certain rules pertaining to the quality standards and rules and regulations of the host country. International institutions make sure that all these rules are met with and no policy etc is violated (Hawkins and Lake et al., 2006).

European Union membership and responsibilities

Being a member of European Union is not a small thing but it brings with itself several roles and responsibilities. FirstGroup has a lot of responsibility as it is an EU member. The company not only has to ensure quality service it also has to ensure that it is eco-friendly, ethical and socially responsible (Falkner, 2005).

FirstGroup is already working on becoming environment friendly ...