Impact of Globalisation on the Toys and Games Industry - Coursework Example

Emerging Themes Project: The Toys and Games Industry Table of Contents Table of Contents 2 Part 3 1. Introduction 3 2. Critical Understanding of Globalisation 3 1.3. The Toys and Games Industry 5 1.4. Critical Evaluation of the Impact of Globalisation on the Toys and Games Industry 6 1.5. A Recommended Strategic Response to Globalisation 7 1.6. Conclusion 8 2. Part 2 9 2.1 Personal Reflection 9 References 10 1. Part 1 1.1. Introduction Globalisation is an important theme adopted by business organisations on a global context. In the present scenario, globalisation is the most discussed aspect based on which business operations, economic conditions and business performances of global business organisations and economy is affected. Presently, the concept of globalisation has increased interdependence of countries amid each other owing to integration of several factors that include trade, business ideas, people and finance. Globalisation has positively influenced business and trade associated with immense flow of investment across countries. Additionally, it has also assisted in improving trade operations on a global context. The concept of globalisation has intensified owing to different factors that include trade liberalisation and technological advancement (The World Bank Group, 2014; Homann & et. al., 2007). The toy and games industry with the assistance of globalisation concept is able to conduct operations in an effective manner in different countries through proper investment and trade facilities. In this respect, the industry is able to expand business operations in different market segments. Moreover, the industry is also facilitated with the opportunity of conducting operations in worldwide market segments, which in turn improve customer base and profit margin. Increased globalisation is seemed to negatively affect the toy and games industry due to the fact that it has intensified market competition with augmented number of competitors and identical products and/or services (Wrigley & Lowe, 2010). 1.2. Critical Understanding of Globalisation The development of the global business conditions have been witnessed due to increased integration of business operations amid countries. In this regard, globalisation is identified to the factor accountable for cross-border alignment of businesses, flow of investment and improved trade operations. The concept of globalisation is seemed to be based on certain features that include internationalisation, expansion and widening. Internationalisation implied that business organisations with the adoption of the concept of globalisation are able to conduct operations by developing better production facilities or structures. Expansion implied that business organisations are able to conduct trade operations along with services efficiently after the phenomenal adoption of the concept of globalisation. The last feature of globalisation i.e. widening revealed that flow of investment or capital has increased in an immense manner, which has aided business organisations in performing their operations with better efficiencies (Mennen, 2010; Pearce, 2006; Mrak, 2000). In this regard, globalisation is seemed to be accountable for the development of the global economy with respect to free movement of services as well as goods, technology, capital along with skills. In this respect, the concept of globalisation is seemed to positively impact towards the development of transportation as well as communication system (Dangwal & Batra, 2006). Subsequently, business organisations adopting globalisation is facilitated with the opportunity of performing business operations in a cost effective and sustainable manner. In this context, globalisation has aided business organisation in possessing adequate information in relation to technological knowledge and human resource requirements, which might assist in conducting business operations proficiently (Gong, 2013, Nemati & Barko, 2004; Das, 2001). The concept of globalisation has an impact on different dimension of global economy which include cultural, political, environmental, social, economic and health among others. It has aligned the economies as a world economy and has been responsible for the openness of the global economy. In this respect, business organisations have improved and have been improving their reach on a global context in relation to market segments, raw materials and production facilities among others. Contextually, business organisations are able to conduct their operations effectively in different market segments through strategic alliances. Subsequently, business operations can be performed with better flexibility and sustainably (Passaris, 2006; Intrilligator, 2003). However, increased adoption of the concept of globalisation has adversely affected the market conditions as well as business operations on a global context. Business organisations operating on a global context are seemed to be relied on the economic and market conditions of other countries due to increased interdependence. Similarly, increased openness of global economy has been accountable for increased market competition owing to continuously increasing number of competitors (Herrmann, 2012). Additionally, globalisation is also responsible for raising business complexities due to continuous change of the market conditions on the basis of which business organisations are required to modify their business strategies. Business organisations are also identified to face considerable challenges in conducting business operations in different cultural backgrounds and ethical considerations (Goldin, 2010; Meyer, 2009; Hay & Rosamond, 2000; Reich, 1998). 1.3. The Toys and Games Industry The toys and games industry is growing in an immense manner particularly due to globalisation and liberalisation of trade policies. The industry is seemed to improve business performances by conducting operations in different market segments. Additionally, the industry with the opportunity of expanding business operations in worldwide market segments is able to obtain adequate market share and customer base. In this respect, business expansion has facilitated the industry in conducting operations in accordance with the requirements of customers. In the present scenario, the preferences of customers have changed dramatically towards technologically advanced products. In this context, the industry with the assistance of the concept of globalisation is able to meet the needs of customers successfully by developing products in technologically better production facilities. The industry is also able to procure required materials from different suppliers conveniently. Globalisation also aided the industry in providing quality products in a cost effective manner. Globalisation has significantly impacted the attributes of toys and games, as the industry is inclined in developing innovative as well as theme-related games. In this regard, toys manufacturers which include Mattel, LEGO, Disney and Hasbro are able to provide innovative products in different market segments on the basis of market demands (ECSIP, 2013; Ferguson, 2006). Globalisation has also facilitated the industry in having developing a better linkage between customers and the industry. The linkage has added the company in managing inventory effectively. The industry conducting operations on a global context is also facilitated with the opportunity of protecting intellectual property rights. Contextually, the industry entering different market segments is able to conduct business operations effectively with minimised business risks (ESA, 2013; Foo, 2013; Yoshimatsu, 2005). In this present scenario, integration of world business has been identified to be accountable for increasing complexities of business organisations on a global context. Globalisation has led to large numbers of toy manufacturers developing as well as providing technologically advanced products in worldwide market segments. Additionally, the level of competition has augmented due to increased manufacturers including Sony, Nintendo, Visual Arts and Activision among others. In this respect, the industry has been facing intense competition in different market segments affecting sales and profitability (Fedders & Villadsen, 2013). 1.4. Critical Evaluation of the Impact of Globalisation on the Toys and Games Industry Globalisation is an important aspect assisting the Toys and Games Industry in conducting their operations effectively in worldwide market segments with adequate investment opportunity. Additionally, the industry is facilitated with the opportunity of performing business operations with liberalised trade policies and competent workforces. The industry is also able to develop an extensive relationship with suppliers in order to manage materials and accordingly meet market demands in an efficient manner. Contextually, the industry is operating in different market segments is able to develop suitable production facilities with advanced technologies. In this respect, the industry has been able to take the advantage of providing quality products in the worldwide market segments in a cost as well as time effective manner. Moreover, expansion of business operations facilitated the industry in spreading risks, which aid the industry in performing business operations with minimal risk (ECSIP, 2013; Mennen, 2010; Pearce, 2006). The Toys and Games Industry with the aid of the concept of globalisation is able to improve their operations, market share, customer base and profitability. The industry is also identified to perform their operations on the basis of different characteristics of globalisation that include internationalisation, widening and expansion. Globalisation has also allowed the industry in producing technologically advanced products in accordance with the preferences of customers. Correspondingly, globalisation also allowed the industry in working in an aligned manner with other business sectors with the intention of ensuring that business operations are conducted in a better flexible manner. Thus, it can be comprehended that the industry possessing technological knowledge and competent human resources might be able in performing their operations with better market opportunities (Gong, 2013; Passaris, 2006; Yoshimatsu, 2005). However, it is also recognised that increased globalisation is seemed to adversely affect the market conditions followed by the increased number of competitors and provision of competitive products. Additionally, globalisation has integrated the worldwide market segments as a global economy, which is identified to be accountable for changing the market conditions. Subsequently, the industry is recognised to face complex situations in identifying market changes and accordingly develop contemporary strategies in order to retain competitive position. Globalisation is also seemed to affect the structure, business processes and operations of the industry in an immense manner. Respectively, it can be ascertained that globalisation has both positively as well as negatively affected business operations of the industry in the present day context globally (Fedders & Villadsen, 2013; Goldin, 2010; Meyer, 2009). 1.5. A Recommended Strategic Response to Globalisation Globalisation is seemed to possess both positive as well as negative aspect and in this regard, the Toys and Games industry is required to adopt effective strategies with the assistance of which it will be able to conduct business operations positively. It can be identified that the industry in the present business scenario is seemed to be facing intense competition due to augmented number of competitors. In this context, the industry should have adopted the strategy of increased product line in order to enter different market segments effectively. The industry is required to ensure that it produce technologically advanced quality products with the aim of meeting the needs of customers. Subsequently, the industry will facilitate customers with better toys as well as games options, so that their preferences are met suitably. Additionally, the products are required to be segmented on the basis of demand in different market segments, so that the industry is able to conduct operations smoothly along with better competitive position (Little & King Co., LLP, 2010; Augustine & et. al., 2005). 1.6. Conclusion It can be comprehended from the foregoing discussion that the concept of globalisation is embrace by business organisations with the aim of ensuring that business operations are performed in an effective manner. Additionally, globalisation has integrated the global business, which in return has aided business organisations in performing business operations in an aligned way. Respectively, it has assisted the Toys and Games Industry in performing its business operations competitively as well as sustainably in the worldwide market segments with better investment and market expansion opportunity. However, the concept of globalisation has negatively influenced market conditions due to increased number of competitors and identical product ranges. In this respect, globalisation is accountable for adversely affecting business operations of the industry owing to changing market conditions, which is responsible for changing business structure and business processes in a continuous manner. Respectively, globalisation has both positive as well as negative impact on the performance of the Toys and Games Industry. 2. Part 2 2.1 Personal Reflection The project is based on identifying the impact of globalisation on the Toy and Games Industry. In order to have an immense understanding of the project, I have conducted an extensive research on the subjects that include globalisation and its relationship with Toy and Games Industry. I have planned a systematic procedure of conducting the project in an effective manner. Initially, I have conducted a study on globalisation in order to have adequate understanding of the concept of globalisation. Subsequently, I have ascertained the different dimensions of globalisation that prevails in the worldwide market segments. The present conditions of the Toy and Games Industry is studied in a detailed manner with the intention of determining business opportunities as well as threats with which, the industry is performing globally. The business opportunities as well as threats for the industry are identified on the basis of globalisation effectiveness and impact. In this regard, I acquired adequate knowledge about the importance and the impact of globalisation on the industry. Consequently, I have identified that globalisation is based on certain factors which include internationalisation, widening and expansion in accordance with which operations of business organisations are to be conducted for effective performances. Moreover, an in-depth analysis of the strategies that are implemented by the industry would have offered extensive facts about the positive and the negative impact of globalisation on the industry. References Augustine, E. & et. al., 2005. Market and Industry Analysis: Hasbro. Hasbro. [Online] Available at: http://www.ericaaugustine.net/img/mktg/Hasbro [Accessed April 23, 2014]. Dangwal, R. C. & Batra, G. S., 2006. Liberalisation, Globalisation and International Business. Deep and Deep Publications. Das, B. L., 2001. An Introduction to Globalisation and its Impacts. TWN Global Economy Series. [Online] Available at: http://www.twnside.org.sg/title2/ge/ge03.pdf [Accessed April 23, 2014]. ECSIP, 2013. 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