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Drivers and Challenges of Globalization

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Added on  2020-07-22

Drivers and Challenges of Globalization

   Added on 2020-07-22

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Drivers and challenges of globalization
Drivers and Challenges of Globalization_1
Table of ContentsINTRODUCTION...........................................................................................................................................3TASK 1..........................................................................................................................................................3P.1Evaluate key factors of cost, market, environment and competition that increases commerce........3TASK 2..........................................................................................................................................................4P.2 Different strategic challenges faced by firm in operating in global environment..............................4TASK 3..........................................................................................................................................................5P.3 Influences of globalization on firm governance and leadership, structure ,culture and functions....5P.4 Influences of ethical and sustainable globalization on functions of organizations............................6TASK 4..........................................................................................................................................................7P.5 Analyse ways that decision making can work globally.......................................................................7P.6There are different routes through which country can enter into international countries....................8CONCLUSION.............................................................................................................................................10REFERENCES..............................................................................................................................................11
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INTRODUCTIONBusiness environment consists of various different factors such as external and internal which can affect organization in different manner (Gammeltoft, 2006). It is crucial that these factors are evaluated by business firm so that they can run their firm successfully and effectively. Through scanning these forces firm can modify their system and policies. Hence they can improve performance of employees and the company. Thus it can earn more revenues. Hence it can maintain strong position in minds of users and in market. Assignment discusses about the Sollatek firm which is electronic equipment firm. It was found in 1983. Report explains about the key factors which can drive globalization. Strategic complexities associated with operating in global environment. Evaluate methods through which global market affect organizations structure, culture and functions. It further explains about the influence of globalization can affect firm decision making and strategy.TASK 1 P.1Evaluate key factors of cost, market, environment and competition that increases commerceThere are different factors through which they can affect globalization. Through these factors company can change their policies and can create effective strategies so that they can run their operations smoothly and hence they can work in a proper and effective manner. Factors that can increase commerce and trade evaluated by Sollatek are-Economy: Sollatek has to evaluate different factors such as cost of goods and services. Through this they can set right price for their products that such as electrical equipments such as bulbs and valves. Through this they can increase their imports and exports. As if they have set appropriate price for consumers and for international goods it directly leads to increasing sales of company. Hence as a result they can enhance their profits.Resources and market: Company also evaluate different resources such as filaments, glass bulbs, electricity, oil so that they can generate in different bulbs. Through this they can easily generate electricity. Hence as a result they have to acquire these resources so that they can easily manufacture these goods. Through this they can increase their exports by creating good quality of bulbs and valves. Hence as a result they can generate more revenues. PESTEL analysis: It includes different factors. They arePolitical: It includes that tax rates are increased by Govt in these materials. So company has to carefully consider these factors so that if there are higher tax rates then it can create policies and plans to use these resources in optimum manner. If they had not evaluated this factor then it can reduce their sales. Hence as a result they can increase their sales by evaluating these factors and through important utilization of these resources (Driver and Martell, 2002).
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Economic: It has to evaluate this factor very carefully. For example if there is less interest rates in the goods such as bulbs and tubes it is a favorable factor for company. Through this they can imports many goods and can produce different goods to export various goods. Through this they can increase their sales and can enhance their revenues (Sovacool and Bulan, 2012).Social: It has to create that bulbs and valves which can be easily be used in homes and are according to choice and preference of customers. Hence they can easily export and import their goods and services. So through this they can enhance their sales and can increase their profits. Technological: Company has to evaluate different technologies and different tools so that they can create goods in an effective and efficient manner. If it uses different technologies so that they can creategood quality of bulbs and valves and thus they can attract many consumers. So hence they can easily enhance their imports and exports. Through this they can increase their operations and it results in enhancing trade. Hence as a result they can generate more revenues. Environmental : They have to evaluate the environmental factors so that they can easily create strategies to deal with them. Company had to evaluate different factors such as they have to use that equipment that cannot damage environment and there are no pollution and wastage. Through this they cannot waste the items and hence they can create good quality of products which can increase the satisfaction level of all consumers. Legal: In this they have to follow all Govt rules and legislations so that they can create good quality of goods. Sometimes there are rules that Govt has banned different items. So it cannot create that goods and can reduce the imports and exports. So they have to follow govt rules. Hence as a result they can increase their operations and task in different regions and thus they can increase their imports and exports. TASK 2 P.2 Different strategic challenges faced by firm in operating in global environmentThere are different challenges that are faced by firms if they are working in internal and external environment. It can be of communications or in operating their activities effectively and efficiently. So company has to consider these factors so that they can evaluate these factors. Challenges faced by Sollatek are:Compliance and regulations: When Sollatek is working on international level it cannot work without following govt rules and regulations. For example they have to follow govt rules that they cannot do business without following legislations. They have to pay taxes related to govt so that they can pay taxesin different goods. Through this they can pay taxes in time to govt and hence they can easily run their activities and operations. Through this they can earn their revenues and can increase the market share. Thus they can enhance their operations in different manner (Stenning and Shearing, 2005).
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