Driving Factors of Globalization Assignment
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Added on 2020-12-29
Driving Factors of Globalization Assignment
Added on 2020-12-29
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Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3key factors which drive global commerce and trade...................................................................3Complexity of strategic challenges.............................................................................................7TASK 2............................................................................................................................................9Influences of globalisation on organisation................................................................................9Influences of ethical and sustainable globalisation...................................................................13Different ways through which decision making can work effectively.....................................14Various routes to internationalisation.......................................................................................15CONCLUSION..............................................................................................................................16REFERENCES..............................................................................................................................17
INTRODUCTIONBusiness environment refers to the factors and forces which can impact the businessoperations of a firm in building and maintaining customer relationships successfully. WhereasGlobal business environment refers to the term for the factors which can impact the ability offirm at a global level. Business environment includes various factors such as cost, environment,competition, market etc. These factors heavily impact the business operations of any firm whileglobalising the business at international or global level. The taken firm in this assessment reportis the Tesco which is a UK based retail supermarket chain running 6,569 stores in more than 11countries. The firm is employing more than 460,000 employees throughout their stores in theworld. This report will discuss the various factors such as cost, market, environment andcompetition which drives global commerce and trade along with the complexity of strategicchallenges faced by organisation in operating at global level. Further evaluation of influence ofglobalisation on the organisational governance and leadership, structure, culture and functionsalong with the ethical and sustainable globalisation on organisational functions will be coveredin this report. In the end, evaluation of different ways through which decision making can workeffectively in a global environment along with the various routes to internationalisation whichcan be adopted by organisations in globalising their business.TASK 1key factors which drive global commerce and tradeGlobalisation is the process through which a company expand its business operations toother country in order to improve the customer base, sales and profit. Tesco is a global firmhaving operations in more than 11 countries. Also the firm belongs to retail sector so there arevarious factors which can impact the firm in terms of global commerce and trade. These factorsare associated with global business environment which must be considered by the managementof Tesco while operating in a global environment which is full of competition. These factorswhich can impact the business operations of Tesco are discussed below:Cost: It refers to the monetary value of the various elements of an organisation such asmaterials, efforts, resources, risks, time, etc. while manufacturing and delivering the productsand services to customers (Armstrong and et. al., 2015). This cost or factor should be consideredby the management of the organisations while launching the business operations in a new
country or market. This factor also needs to be considered by the management of the Tesco whileentering in a new market for enhancing the sales, profit and customer base. Tesco should analysethe prices of their products which will be provided to the customers of new country in producingand delivering the products and services so that the products can be provided based on theeconomic conditions of the people. When the economic condition of the people is in favour ofthe Tesco, then opportunities lies for the company in that market which can be grasped byproviding the products accordingly to customers. These economically stabled people willpurchase the products of firm according to their needs which will enhance the profit and sales ofthe company. These prices and favourable economic condition drives the global commerce andtrade as people has enough money for purchasing the products of the companies which is apositive impact for Tesco. This positive impact is because the company can provide its productsto customers without thinking about the low prices.Competition: It is the peak point at where a large number of companies compete with otherfirms of the same sector in order to grab more customer and market share. Competition is amajor factor which can impact the global commerce or trade for an organisation which is goingto enter in a new country (Cavusgil and Knight, 2015). This is because, companies will focus onproviding innovative products and services to the customers in order to stay ahead of thecompetition. This factors also must be considered by the Tesco as the company can effectivelyprovide its innovative and unique products and services to the customers for cutting out thecompetition. This can be achieved by Tesco through the use of their R&D division which canprovide the innovative ideas to company which will assist the firm in enhancing its customerbase and profit. Due to presence in retail market, this factor drive the global commerce and tradeof Tesco which will provide positive impact on business operations of company.Environment: Environment includes external and internal elements such as demand andsupply, social trends, economic changes etc. Determination of these elements will help the Tescoin analysing the opportunities, resources, future planning etc. These elements covers factors suchas technological, political, economical etc. which plays a major role in successful globalisationof business operations of Tesco. The success and growth of taken firm depends upon thebusiness environment which must be considered by the management of company. These factorswhich can impact Tesco in terms of global commerce and trade are discussed below:
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