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Drivers and Challenges for Globalisation Essay

   

Added on  2020-06-03

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Drivers and challenges forglobalisation
Drivers and Challenges for Globalisation Essay_1
Table of ContentsINTRODUCTION...........................................................................................................................1LO 1: Analyse the key factors which drive globalisation................................................................1P1 Key factors which drive globalisation in context to Thompson Aero seating..................1LO2: Determine the strategic complexities associated with operating in a global environment.....2P2 Complexities of strategic challenges faced by Thompson Aero seating...........................2LO3: Evaluate how operating in a global market influences an organisation’s structure, cultureand functions....................................................................................................................................3P3 Impact of globalisation on leadership, structure, culture and functions within ThompsonAero seating............................................................................................................................3P4 Influences of ethical and sustainable globalisation on organisational functions..............4P5 Various ways in which decision making can work effectively.........................................5P6 Various routes to globalisation Thompson Aero Seating may adopt, including key barriers.................................................................................................................................................6CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9
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INTRODUCTIONGlobalisation can be segmented into four major elements: rapid discontinuous change,growing worldwide interconnections, increased number and diversity of participants as well asincreasing complexity. This report is in context to the impact of globalisation and its elements onthe performance of a UK based manufacturing company Thompson Aero Seating. The reportwill analyse the major factors which drive globalisation and the strategic complexities related tobusiness operations in a global environment. Furthermore, this report will identify the impact ofglobal market on the culture, structure and functions of Thompson Aero Seating. The impact ofglobalisation on organisational decision making will be also determined in the following report.LO 1: Analyse the key factors which drive globalisationP1 Key factors which drive globalisation in context to Thompson Aero seating.Globalisation is the procedure of integration and interaction among people, organisationsand government all around the world. It has enhanced because of development in transportationand communication technology. There are generally four major areas of drivers for globalisationwhich are cost, government, market and competition. These external drivers influence theconditions for the potential of globalisation with regards to Thompson Aero seating which arenot in their control. The drivers of globalisation are described as below -Market – These drivers consist of various areas such as transferable marketing, customerneeds or demands etc. The manufacturing organisation such as Thompson gets highlyinfluenced by globalisation which refers to entering into new market. The organisationneeds to make sure that they fulfil customers’ needs or demand within the new or globalmarket by offering existing products or manufacturing new ones. Therefore, ThompsonAero needs to make changes in their business operations for producing goods to fulfilnew demands in a global market (Beck, 2018).Government – The Government is another driver for globalisation, Thompson Aero needsto follow various policies and laws imposed by the government of UK while entering intonew markets such as Africa, China; the organisation needs to adopt or follow newpolicies with respect to the market they are entering into. Every market or country has itsown trading policies, taxation policies etc. which greatly influence the businessoperations of Thompson Aero seating in global market. 1
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Cost – Companies such as Thompson Aero seating can achieve new economies of scaleby selling their products at higher prices in new markets. The company can also gain thebenefit of low cost of production through import and outsourcing. Cost is a majorelement for every organisation or business, cost of production and economic conditionsof a marketplace greatly affect the business strategies and functions. Competition – New markets also bring new competitors for an organisation. A companyentering into a global market is highly exposed to competitive market. There are manyorganisation operating in a similar industry and adopting globalisation to expand or growtheir business and cover a large market segment that develop a highly competitive marketfor Thompson Aero seating. In order to control and sustain in the competitive market, itchanges its business functions and strategies accordingly.Environmental factors There are various environmental factors which has a great impact on the globalisationand these factors can be determined by applying PESTLE analysisPolitical – Each and every country has its own political policies and conditions, anorganisation such as Thompson Aero seating needs to consider political situation of acountry before expanding their business.Economical factors – The economic conditions such as recession, high per capita income,individual, GDP also affect an organisation while performing various functions. Social factors – Another major factor is social elements such as culture, language, beliefsand perception of the people highly effect an organisation in globalisation. Technological factors – The technological factors such as use of smartphone application,internet etc are also influencing a company while entering into global market. Legal – The legal factors include employment laws, labour laws, business laws and so on.Environmental factors – The environmental factors are also needs to be considered whileentering into a new market. The climate conditions, pollution, environmental policies etc.2
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