Analysis of Factors Driving Global Commerce and Trade

Global Business
Environment

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Analysis of the key factors that are driving the global commerce and trade.........................1
LO 2.................................................................................................................................................2
P2 Explanation of complexities of strategic challenges faced by organisations when operating
in a global environment...............................................................................................................2
LO 3.................................................................................................................................................3
P3 Evaluation of influences of globalisation...............................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Global business environment is the combination of different types of forces that are
leaving positive as well as negative impacts upon functionality of business. It is very important
for all the companies to make sure that they are able to analyse implications of all of them so that
the possibility of uncertainties in future could be reduced (Bedianashvili, 2016). Present essay is
based upon British Airways which is one of the largest entities in aviation industry. It is
delivering services all around the world to the customers. This essay covers various topics such
as analysis of the factors that are driving globalisation and determination of strategic
complexities associated with operating in a global environment. Along with this, evaluation of
the influences of globalisation in organisational governance, leadership, structure, culture and
functions is also covered in this discussion.
LO 1
P1 Analysis of the key factors that are driving the global commerce and trade
Globalisation can be defied as the opportunity which is reducing trade barriers for the
entities to execute operations in multiple countries. With the help of it, all the companies can
establish their business in different nations without specific restriction. It has facilitated global
trade and commercialisation. British Airways also take advantage of it and expanded its business
in different countries. In order to fly to Mauritius, it is essential for the entity to analyse the
factors of globalisation and trade. There are various types of factors which are cost, market,
environment, competition etc.
While planning to fly to Mauritius it will be very important for British Airways to
analyse the total cost so that estimation of required funding could be made. With the help of
globalisation, the barriers and international trade related costs are being reduced as cost is a
factor which drive globalisation. Most of the companies expand their business in various
countries because of low cost. By paying attention towards this factor the entity will be able to
fly to Mauritius successfully (Bhagra and Sharma, 2018).
Another factor which drive the globalisation is market because when the organisations
will be having different markets to establish business then it will help to expand the business
globally. While planning to fly to Mauritius it will also be an essential factor which should be
focused by British Airways. It will be a great opportunity for the entity to capture the large
1