Influence of Globalization on Organizational Strategy and Decision Making

Business Environment
(BMS412)

Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
The type, size and scope of the Nando’s..................................................................................................3
The interrelationship of functions on organization structure....................................................................5
Internal and external influencers via a PESTLE and SWOT analyses on business operations.................6
The influence of globalization on organizational strategy and decision making......................................8
CONCLUSION.........................................................................................................................................10
REFERENCES..........................................................................................................................................11

INTRODUCTION
The organizations are formed legally as per the structure and works in the environment
which consists of all the external and internal factors like customer expectations and needs,
workforce, supply, demand, owners, government, technology, etc. The external factors has a
huge influence on the working of the businesses and impacts the decision making of the firm.
The term business environment mainly states all the external factors, institutions and forces
which are not in control of the business and also affect its working and functioning. It brings
both the threat and opportunity for the companies so it is important to understand it so that the
management can plan its future and further decision making (Hillary, 2017). The organization
chosen for this report is Nando’s, a fast food chain of South Africa which mainly specializes in
the Portuguese African food. It was founded in the year 1987. This report shall cover the type,
scope and size of company, internal and external analysis, interrelationship of the departments
and the influence of the globalization on business strategy and its decision making
MAIN BODY
The type, size and scope of the Nando’s.
There are different types of business organizations which are formed legally. These are
discussed below-
Private organizations
These are those businesses which are owned and managed by the private people and its
funds are raised individually by the owner either from its own savings or by way of loans or
investments. The main purpose of this is to generate maximum revenue and rearn more of the
profits (Cravo and Piza, 2019). Various types of business organization are narrated below-
 Sole proprietorship- These are managed and owned by the single person who is called
the sole proprietor. The decision making power and all authorities rest in the hand of
single owner. He is personally liable for the debts and liabilities of the firm.
 Partnership- These types of businesses are run and owned by two or more people who
are known as partners. They mutually decide to share their losses, profits, decision

making power, responsibilities and contribution of capital. They are also personally liable
for the liabilities of firm.
 Companies- These are the separate legal entity where the member is distinct from its
company which means it can be sue and can sue anyone. It is an artificial personality
which has its own common seal. The shareholders elect the board of directors who
represent their interest and run the company, keeping in mind their interest.
Nando’s is a private owned business that is owned by entrepreneurs who sets the business
initially. It deals in the fast food industry. It was founded in the year 1987 and its genre is the
Portuguese African style.
Type of businesses on the basis of size
 Micro- These are those type of business which employs less than 9 employees in its
working. The turnover of this business is less than 2 million pounds.
 Small- These are the business which employs more than 10 employees but less than
50. Their turnover is less than 5 million pounds.
 Medium- These include those businesses that employ more than 50 employees but
less than 250 workers. Their annual turnover is expected to be less than 50 million
pounds.
 Large- The businesses of these categories employs more than 250 workforces and
their turnover per annum is more than 50 million pounds (Smith, 2017).
Nando’s is a large company which serves the customers worldwide. It has approximately
1000 outlets in almost 35 countries.
Background
Nando’s is the fast food chain of South Africa which specializes in the food which is
mainly Portugiese African style which also includes the flame grilled per- peri styled chicken. It
was founded in the year 1987 in Johannesburg, South Africa and is headquartered in the same
place. It mainly deals in the chicken and related cuisines which are commonly made in fast food
style (Willcocks, 2018).