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Driving Factors of Globalization

   

Added on  2020-12-10

19 Pages5666 Words387 Views
Strategic Direction andImpact
Driving Factors of Globalization_1
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1. Key factors that are responsible for driving globalisation....................................................1TASK 2............................................................................................................................................2P2. Various strategic complexities that are faced by business concerns while globalising theirbusiness functions.......................................................................................................................2P3. How operating in global market influences organisation's structure, culture and functions......................................................................................................................................................3TASK 3............................................................................................................................................6P4. Influences of ethical and sustainable globalisation or various organisational functions......6TASK 4............................................................................................................................................8P5. Different ways in which decision making can apply in global contexts...............................8P6. Various routes to internationalisation along with their barriers as well...............................9REFERENCES..............................................................................................................................13
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INTRODUCTIONGlobalisation is a quite important subject in present day scenario that focusses onimproved efficiency and effectiveness in overall working of business concerns. This further laysa quite significant impact on functioning of business ventures. Strategic direction in this aspectis a quite important or driving force in a business. It further proves quite useful for developing orestablishing a structure that combines various responsibilities. Also a fair and clear vision helpsemployees in assessing purpose or objective of a company. This report has been framed onCAMECO which operates as a chemical company with its area of operations in South Africa.The company has currently expanded in various countries such as Mozambique, Canada, Gabonand Australia as well. This report further comprises of various factors such as key factors thatinitiate global trade along with complexities regarding strategic challenges. Also this reportcomprises of influences that globalisation causes in respect of organisational functions. TASK 1P1. Key factors that are responsible for driving globalisation.Globalisation is an essential process that focusses on expansion and growth of businessconcerns at an international level. It is basically responsible for enhancement in growth and wellas productivity of a business concern. It is driven by a number of forces and tools such as newdevelopment and gradual changes in relation to economy of the world. Globalisation getsimpacted or affected by a number of driving forces such as cost, market, environment,technological advancements, reducing trade barriers etc. Various key forces that drive globalisation are mentioned as under: Technological advancements: Technological advancement is an essential factor thatdrives globalisation. Technology is said to be improving and developing since a quite long timealong with developing various communication platforms. Also it helps in exchange of goods andservices at a quite faster pace. By bringing about technological advancements, exchanging ideasdifferent geographical locations today are no more a barrier. In context of CAMECO, it has beenobserved that managers will need to adopt technologically advanced tools and techniques forensuring effectiveness. Reduction of cross trade barriers: It is a quite important force that is responsible fordriving globalised business practices. In earlier times every country used to restrict free trade and1
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movement of goods and services from one nation to another. But with globalisation comes intoexistence, it has been observed that businesses are able to freely trade in different nations byadopting ethical business practices. This has further connected different parts of the world witheach other in a quite close knit manner. In relation to CAMECO, it has been examined that byadopting free trade among countries productivity and profitability of the company will improveby great extents. Also it will help in developing a sound image of the company in competitivemarket. High competition: Competition is an important factor which is responsible for bringingabout globalisation in a positive and effective manner. It is a process which says thatorganisations drive each other to be successful in comparison to other. It happens to be a majordriving factor which promotes or motivates business concerns to be successful and enter globalmarkets. Hence in the present context it has been observed that competition is a quite essentialelement that is responsible for CAMECO globalising its business functionality and operations.This provides a quite developed market to companies at global level where they can sell theirprices at a quite high price. Cost: This is considered as drivers relate to costing that are needed for expandingenterprises at global marketplace effectually. Therefore, to expand the operation of firm as wellas activities at international level organisation needs more capital. Due to this they has to recruitindividuals as per the requirements, perform analysis to get knowledge about firm's culture andso on. In context of CAMECO, it needs more funds for analysing market are in appropriateways. Through which it can able to understand the respective company products requirement anddemand. Market: Market needs and demands vary nation to nation that influence firm's operationsand functions. So, this is essential for them to do market evaluation as well as formulate goods orservices consequently for attracting more consumers. In respect of CAMECO, they performmarket examination for identifying consumers requirements regarding chemical and energyproducts. Through knowing it management of the respective firm can able to make products orservices effectually. But this is very hard for firm to perform market analysis regularly asconsumers needs and demands are changing as per the requirements. Environment: This is considered as the dynamic drivers in which changes take placerarely. Respective company have faced the problems with the changes into environment as they2
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