Global Business Environment - Yummy food Limited

Management 1
Global Business Environment

Management 2
Contents
Introduction......................................................................................................................................3
Driving Factors of Globalization.....................................................................................................4
PESTEL analysis of the organization..............................................................................................5
Complexities of supply chain management.....................................................................................7
Opportunities and Challenges of globalization................................................................................8
Recommendations to overcome challenges...................................................................................10
McKinsey 7’s model......................................................................................................................11
Hofstede dimensions of culture.....................................................................................................12
Factors that influenced by the global operations...........................................................................13
Strategic expansion that routes the organization...........................................................................14
References......................................................................................................................................15

Management 3
Introduction
The globalization concept is essential for managing the business environment and it increases the
overall scale of the business. This proposal includes the analysis of the globalization and the
advantages of globalization in the business environment. Yummy food Limited is a fast-food
chain store in Hong Kong. The company needs to expand its business in the UK country. As
globalization defines the several changes in all over the world where the company expand its
business in other countries. The globalization of business makes several changes in the business
that required to operate in multiple countries. The assessment will be discussed about the several
challenges and opportunities comes in the global business. The advice required by the CEO of
Yummy food Limited to manage the expansion of the business in the UK market. The various
factors related to the globalization will be discussed in this proposal (Cuervo-Cazurra, 2011).
The various aspects of business like supply chain management, the effect of culture and strategic
expansion of routes in the organization will also be described in this proposal that helps in the
proper management of the business. The decision making is also involved in the proper
management of the global business as the global business needs proper management in a
different country. Yummy food Limited needs proper management to expand the business in the
global market. The global business environment improves the profits of the organization. This
concept greatly influenced the overall process of the company and makes the expansion easier
(Salvatore, 2015). The proposal includes several recommendations that help in overcoming the
challenges occurred in the global business environment. In the global business, several external
forces include the firms and impact all the decisions and operations of the organization. This
proposal includes all the aspects related to the globalization and this improves the business
process in the global environment.

Management 4
Driving Factors of Globalization
The shape and pace of globalization are driven by several factors. The globalization includes
several factors that are adopted by the global business and by using these factors the expansion
of the business becomes easier and this improves the overall environment of global business. The
main factors include in the globalization are economic factors, political factors, financial factors
and social factors (Wood, et al., 2015). These factors improve the overall process of
globalization.
Globalization of market: Globalization market is the synergetic term which helps the
companies in evaluating the external market and to integrate with the culture tool. The goods and
services can be easily sold through the market globalization and helps in promoting the things.
The process of merging and integrating the market into a single market through the distinct
world market is globalization of market.
Globalization of production: The manufacturing facilities of every country are different so the
factors which influence the manufacturing or the production are the basic globalization of
production. In foreign countries the manufacturing production is less costly, raw material are of
high quality and input are available at the lower cost.
Yummy Food Limited needs to expand its business in the UK so it is important to analyse these
factors relate to the UK market. The economic and political factors of UK market matters in
expanding the business in the UK. The driving factors of globalization are discussed below-
 Economic Factors
The economic factors are one of the main driving factors in globalization as it is
important to know the economic conditions of the country in which the business is
expanded (Savrul, et al., 2014). The economic factors include lower trade and investment
barriers. The economic conditions of the UK need to be analyzed by the economic factors
of globalization.
 Political Factors
The political factors are also important in the globalization as politics create barriers in
the global business and create instability in the business. Political factors include the
government policies of the country related to the business process. Government policies

Management 5
create many hurdles in expanding business in the UK market. As the UK government
made several policies related to the global business.
 Technological Factors
Technology plays an important role in the process of globalization. The technology
involves a major factor in the process of globalization. Technology improves the overall
process of globalization. The food stores used the technology in managing the supply
chains in the market. The technological factors improve the global business in the
international market.
As a consultant, it is proposed that apart from the above factors, there are several other factors
that are used in the globalization. Like the social factors are also included as one of the main
driving factors in globalization. The knowledge of the society of a particular country in which
the business expands is important as these factors are used to increase homogeneity across all
over the world (Okora, 2012). The organization needs to consider all these factors for managing
its global business in the international environment. These factors provide several benefits to the
food store in their expansion.
PESTEL analysis of the organization
PESTEL analysis is used to analyze the macro-environment concepts for the expansion of the
business. The company expands its business in the UK market so it is important to analyse the
macro-environment factors related to the UK. The pestle analysis of UK is discussed below-
 Political factors of UK
The UK market is impacted by several political factors. As the government of the UK
made several rules and regulations regarding the business process in the international
market. The political stability of the country improves the expansion of the business and
increasing the profits of the business. UK country makes good relations with other
countries so this is a good sign for the growth of the company that expands in the UK
market (Sorensen, 2012). The government policies are also as per the international
business.
 Economic factors of UK

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There are several economic factors that affected the expansion of the business in the
international market of UK. UK has the 5th largest economy in the world as per nominal
GDP. Nowadays, the UK becomes a famous country for FDI (Foreign Direct
Investment). Yummy food limited expand their business in the UK due to the better
economic factors of the specific country.
 Social Factors of UK
The organization have a lot of opportunities in the UK as the UK has a big consumer
market. The social class of the UK is also good as the company achieves better profits in
expanding the business in the society of the UK. The population of the UK is
multicultural so the company need to provide a variety of products so that customers get
attracted towards the organizational products.
 Technological Factors of UK
Technology also matters in the growth of the business that expands in the foreign market.
Yummy food limited expands its business in the UK so they need to be followed some
advance technologies to achieve better growth in the market. As the UK is one of the
most technologically advanced countries in the world. The business in the UK is
developing by using proper technologies to improve the products and services delivered
to the customers.
 Environmental Factors of UK
The environment is also affecting business companies in the UK. The economic activities
of the UK impact on the business environment. Nowadays, the UK made significant
improvements by decreasing the negative impact of the environment. The government
needs to create awareness among people regarding environmental issues. The UK
sometimes faces several challenges in the weather conditions so the business analyzed the
proper environmental conditions before expanding the business.
 Legal Factors of UK
The legal landscape is also important for the expansion of business in the UK. There are
several laws that implement in the business environment of the UK. As these legal factors
also affecting the companies of other countries to expand their business. But the laws
implemented in the UK needs to manage the overall process of international companies.