The Impact of Globalization on Firm Profitability: A Case Study of Axentin LTD in London

This research project examines the impact of globalization on firm profitability of Axentin Limited in the UK, London. The intensity of competition of local companies is drawing down the profitability and many local companies are looking for expanding these services abroad with the purpose of increasing the profitability.This can encourage Axentin Limited to tape into international environment.

Globalization has resulted in the growth of revenue and market share with creating international goodwill for any business because it provides international consumer base, increase the market share of the organization, growth of revenue and profit (Gopinath, 2018). Globalization is very important to global economy as it provides international consumer base to increase the market share of the organizationresulting in growth of revenue as well as profit (Gopinath, 2018).

According to Shodhanga (2012), profitability is an excess of amount made the company as a result of business activities. Harward and Upton defined profitability as “the ability of given investment to earn and return from its use”. Profitability refers to the percentage return of the resources induced. Profits can be earned but having good profitability is a tough task.

Several articles and books have been written covering the topic of globalization but research on globalization and profitability on AXENTIN LTD, London has never been conducted before.AxentinLimited is a small-scale firm that was established in 2014 indulged in financial services sector situated at Harrow, London.  AxentinLimited provides accounting services such as tax return filing, bookkeeping, tax savings and all kind of financial and accounting services to its customers. 

RESEARCH QUESTION
How globalization impact on firm’s profitability of Axentin LTD in London?
•    Does globalization improve the performance of the Axentin LTD 
•    How does the Axentin LTD firm’s profitability enhanced is London?

RESEARCH OBJECTIVES
1.    To review and analyze the globalization and profitability 
2.    To measure the globalization and firm profitability
3.    To draw the implication of research finding

This section of the research project will review globalization and firm profitability. The section covers a brief account of history of globalization, definition, drivers, and theoretical framework Machlin Fink (2013), affirms that globalization has been a hotly debated issue throughout recent years and gives no indications of leaving at any point in the near future. When and where globalization began is an issue that is fervently challenged right up 'til the present time.Numerous things added to the period of globalization we as of now live in. Huge numbers of these were created sometime before the ongoing pattern of globalization and these components have permitted it to turn into a main thrust of the cutting-edge worldwide economy. In contrast Michael D Burdodeclared that the effect of globalization just can't be surveyed over a year, 10 years, or even two decades. Michael D Burdo things that globalization starts in the interwar years when the world moved pointedly away from receptiveness and toward independent autarky, with extended exchange security all over the place, expanded obstructions to work and capital versatility, and broad money related and monetary brokenness.

Research Objectives

According to Krugman (2017), globalization is the main key that created global availability of international products and services. Chilisa (2019), Globalization has provided business community a wide choice of markets and countries to trade in while keeping a fair percentage of profit and expand their business while creating reputation in the global market. Globalization has provided lot of benefits to even business organizations as well as consumers too.From the business point of view, providing a wide choice of market to business organizations as before globalization there was a particular market with limited number of consumers and business prospects. After globalization business organizations have unlimited base of consumers and growing demand from all over the world (Chilisa, 2019).

Generally speaking Globalisation is the procedure or procedures that increment the development of individuals, culture, innovation, philosophies and data over the world. From the tunes we hear on the radio to the absolute most mainstream motion pictures and books out there, style, innovation, migration starting with one nation then onto the next—all have to do with globalization and the spread of impacts all through the world.  (Sullivan, 2013) Kopnina & Blewitt, 2015 defined Globalisation as “a force that shapes our contemporary world, affecting business, environment, and society. Suppliers, corporations, and consumers are linked by information, material, and capital flows as production processes become increasingly dispersed around the globe”. 
In contrast (Alla et al., 2017) affirmed that Globalisation has led to fluctuation in price across the globe in various areas. Due to increase in competition, business firms in developed countries are forced to lower their prices for their products. A big example of this is countries like China produce goods at a much lower cost than other countries which lead other firms and organizations in other parts of the world lower their prices to maintain customer satisfaction and loyalty.

Numerous things added to the time of globalization we right now live in. Globalization is an economical movement that is influenced by several factors.Globalization Drivers are the factors based on the implementation of the organization and decide the firm's operations. Such factors are very important to be kept in mind. Some of globalization drivers are technological, political, legal etc.

RECOMMENDATIONS
On applying effective & precise set of research methodologies as per the impact of globalization on firm profitability of Axentin LTD. there are some recommendations, which can implemented which are as follows: 
•    DevelopingAxentin LTD. from small scale firm to medium scale firm
To develop into a medium firm there is need to apply a systematic strategy & should follow a strict set of rules which will completely focuses on growth & development factors. 
•    Expanding the man force
In making the firm to medium scale Business Company for that more requirements of work force is required. Therefore,recruitment strategy will be better in applying & expanding the employees for achieving more aims. 
•    By expanding, more business contracts with other companies in UK.
The company can sign contracts with other companies with the country for expanding more business & improving the profitability for the business. This will also help in improving the economic conditions of UK.
•    Preparing & implementing proper strategies for growth 
Grabbing the opportunities which is their in the market with proper strategies. This will help in increasing business & profits. In Second international handbook on globalisation, education and policy research (pp. 105-125). Springer, Dordrecht.