Drivers and challenges for globalisation and Impact and Strategic Direction

HND Business management HNBS
318 Global Business Environment
Drivers and challenges for
globalisation and Impact and
Strategic Direction
Table of Contents
2PART 1 PPT PRESENTATION ...................................................................................................4
3Drivers and challenges for globalisation and Impact and Strategic Direction...............................4
5INTRODUCTION ........................................................................................................................4

PART 2............................................................................................................................................9
6INTRODUCTION.........................................................................................................................9
11. Structure, culture and governance of organisation..............................................................10
22. Evaluation of ethical and sustainable factors that the organisation has to consider in a
global market.............................................................................................................................12
33 Application of Hofstede’s Dimensions of culture to show a critical evaluation of the
influences of globalisation on the international organisation...................................................14
44. Ways by which decision-making can work effectively in a global context........................14
55. Determine and articulate the various routes to internationalisation an organisation may
adopt, including key barriers.....................................................................................................15
7CONCLUSION ...........................................................................................................................16
8REFRENCES...............................................................................................................................18

PART 1 PPT PRESENTATION
Drivers and challenges for globalisation and Impact and Strategic Direction
INTRODUCTION
Business environment is considered as sum total of factors which can be internal or external
that will impact on the business in both positive and negative way (Liu and Wang, 2014). Some
of the main benefits gains by company by adopting business environment are increase in
business, profitability, sustainability and so on.
Globalisation
Globalisation refers to a process related to interaction and integration of people, governments
and companies at a worldwide level. It enables firms who internationalise to gain numerous
benefits like enhancement in profitability, customer's base, market shares and so on.

Illustration 1: Globalisation
(Source: Sociological Analysis of Globalization and its Impact on
Rural Economy, 2020)
Driving factors for globalisation
Political drivers: Over the last few decades there has been a major change in political regimes
and many ex-socialist countries have opened their economies and adopted the free market
principles, which has enabled and stimulated international trade and investment.
Liberalization of Trade: It is defined as removal or minimization of barriers on free exchange of goods
and services among the nations. These barriers include tariffs like surcharges, duties, non-tariff barriers,
rules, quotas and many others. Since the Second World War, institutions like the GATT and then WTO
have promoted the principles of free trade and investment among countries worldwide.Economic Integration: It is considered as an agreement between countries in a given
geographic region to reduce and remove non-tariff as well as tariff barriers which help in free
flow of products or services. The European Union is an example of this, as well as the NAFTA
trading bloc between the USA, Canada and Mexico.