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21st Century Globalisation

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Added on  2020-12-18

21st Century Globalisation

   Added on 2020-12-18

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21st CenturyGlobalisation
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Table of ContentsINTRODUCTION...........................................................................................................................11. Critical appraisal of fundamental factors contributing to globalisation.............................12. Critical evaluation of strategies for gaining entry into foreign markets.............................33. Strategic proposal for the expansion of a business.............................................................44. Critically assess both the ethical and sustainable implications of globalisation................5CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................8
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INTRODUCTIONGlobalisation can be referred to as the integration of people, economies, governments,nations with an aim to capitalise on the flow of products and services from one country toanother. It has become the key to success for all the business organisations that are running andfunctioning as a part of 21st century (Bende-Nabende, 2017). Globalisation fosters the removal oftrade barriers and the liberalisation of economic activities related to exchange of products as wellas services. In this regard, the present assignment is based upon Exergy Ltd. which is anorganisation involved in development of projects aimed at promoting sustainable developmentand energy conservation such as Green Buildings & Cities, Green Processes & Industries andGreen & Innovative Organisations. This assignment consists of appraisal of fundamental factorsdriving globalisation along with the strategies to enter new markets. Also, it comprises of astrategic proposal for business expansion together with critical assessment of sustainable andethical consequences of globalisation.1. Critical appraisal of fundamental factors contributing to globalisationGlobalisation can be referred to as the diminution of state-enforced restraints onexchange of goods and services across national borders and the progressively complex system ofmanufacturing and/or exchange that has resulted as a consequence. In this regard, ExergyLimited is a company operating within the confines of United Kingdom and is involved inpreparation of sustainable projects, waste valorisation, energy assessments, process designs etc.for clients (Projects, 2018). The vision of this organisation is to become a global sustainableenergy organisation by 2030 by capitalising upon renewable resources and projects to gainrecognition in market and significantly enhance its name and position. Looking forward to thevision of entity, management of Exergy is planning to tap the advantage of globalisation to gainentry into new foreign markets. The entity will enter new markets and provide services related toproject development thereby promoting the use of renewable resources such as solar energy. Inthis regard, there are certain factors that have to be taken into account by managers of Exergy tofeasibly execute expansion into emerging markets:-Political Stability: The political stability of a country attracts the attention of potentialbusinesses with a view to enhance the overall market share as well as sales. In this regard, beingan organisation which promotes sustainable development and utilisation of renewable resources,1
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the top management of the company is looking forward to expand in countries which havepolitical stability. Some of the nations having political stability across the globe are Canada,Australia, Germany, Switzerland (Hamilton and Webster, 2018). These can be selected as thepotential market to promote the sustainable and energy saving services of company. However, aninstance of political instability or terrorist attack within these nations may pose threat to theprojects of Exergy. Population: The demographics of a nation also offers lucrative opportunities for acompany to tap advantage of globalisation while gaining entry into new markets. In this relation,Exergy is an energy company which promotes sustainable development and has a vision tobecome global sustainable organisation by 2030. In this regard, the major aim of thisorganisation is to gain the attention of a large quantum of population. In this regard, China andIndia are the most populated countries of the world where company can gain access and promotesustainable energy development by creating green building, using solar panels etc. However, inan instance where the population of new country does not like the concept brought in by Exergy,it can act as a threat to sustainability of enterprise. Energy Demand: This tends to be another crucial factor which fosters companies acrossthe globe to use globalisation as a measure to facilitate business growth and expansion. In thisregard, energy demand across the globe fosters Exergy to consider the option of gaining entryinto new markets where energy consumption is on a rise. In this relation, global energy demandincreased by around 2.1% in the year 2017 which was over twice the rate of previous year(Global energy demand grew by 2.1% in 2017, and carbon emissions rose for the first time since2014, 2019). This was facilitated by a strong worldwide economic growth with gas, oil coalfulfilling the increased energy demand and renewable resources witnessing a significant gain.This fosters Exergy to tap the advantage of this as an opportunity to gain entry into new marketsand enhance the existing level of sales and profits. Further, China and India are good markets forExergy to facilitate business expansion as both of these are among the top 5 energy consumingcountries (Total energy consumption, 2019).However, a sudden downfall in energy demandwithin the new country can act as a threat for the country.Market Effectiveness: The market effectiveness of countries tends to act as an optimumdriver for globalisation as this is a factor which attracts the attention of potential investors andinfluence them to facilitate business expansion by gaining entry into such nations. In this regard,2
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