Global Business Enironment Aspects PDF
Added on 2020-10-22
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GLOBAL BUSINESSENIRONMENT
ContentsINTRODUCTION...........................................................................................................................1TASK 1 ...........................................................................................................................................11) Introduction to the concept of globalisation.......................................................................12) Explanation of driving factors related to globalisation......................................................23) Significant impact of digital technology upon globalisation.............................................34)Complete and present a PESTLE analysis of the organisation...........................................45) Challenges of globalisation and strategic challenges represented for organisation...........56) Appropriate recommendations to overcome those challenges ..........................................6TASK 2............................................................................................................................................71) Explain culture, structure and governance of organisation. Apply McKinsey's 7S toillustrate organisational overview...........................................................................................72) Impact of above factors on global operations and Hofstede's dimension of culture todemonstrate organisational influence.....................................................................................83) Evaluation of ethical and sustainable factors company has to consider in global market104) Impact of factors on decision making in global context..................................................105) Strategic expansion route suitable for organisation along with advantages anddisadvantages........................................................................................................................11CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13
INTRODUCTIONGlobal business environment is referred to several external factors which surrounds ancompany and impacts its operation & decision making procedures. It specifies the nature ofinternational trade as it evolves in a manner that impacts global commerce in a considerable way.Global business environment impacts the manner in which a business operates withinmarketplace (Adekola and Sergi, 2016). This assignment is written in context with CAMECOwhich is a fast developing energy and chemical company, situated in South Africa. As companyis growing its existence at a fast rate, company is operating business activities into countries likeAustralia, Canada, Mozambique and Gabon. This report will cover different driving factorsassociated with globalisation. Also, it will discuss influence of digital technology onglobalisation. Beside this, a Pestle analysis will be carried out that will helps in understandingexternal business factors in a detailed manner. Influence of globalisation on organisationalgovernance, leadership, culture and structure are discussed. Also, ethical and sustainableglobalisation are evaluated along with different way of taking decisions. At last, different waysof internationalisation are mentioned. TASK 1 1) Introduction to the concept of globalisationGlobalisation is defined as the integration of markets in global context which leadstowards the enhanced interconnectedness of domestic economy. There are different marketswhich are largely influenced by globalisation. Some of these markets are financial marketincluding credit market, capital market, commodity market including coffee, gold, tin, oilmarket, electronic market etc. CAMECO is a fast emerging chemical and energy company whichis headquartered in South Africa. Company has also managed a stable position in countries likeAustralia, Canada, Mozambique and Gabon. Beside this, company is planning to further expandits business operations in other nations worldwide. In this regard, it can be stated that companywants to sustain a firm position globally. For this, it is essential for the manager in company toacknowledge appropriate global business environment. There are some benefits that CAMECOwill enjoy while operating at global level. Some of these benefits are mentioned below:It will offer a chance to CAMECO to gain comparative advantage that will results inenhanced sales. 1
Access to larger market will benefits the concerned company in experiencing highdemand of their products i.e. chemicals and energy sources, which will results inreduction in average cost of production (Armstrong and et. al., 2015). It will allow company to have access of cheap priced raw material without compromisingwith quality that will help CAMECO to be cost competitive in their domestic market andforeign market as well. 2) Explanation of driving factors related to globalisationThere are different driver which are associated with globalisation. These drivers benefitsa company in acknowledging the global business environment and relates aspects in a desiredmanner. Main drivers for globalisation involves competition, cost, market and government.These are the external drivers which posses a visible impact on the performance and functioningof companies which wants to enhance their business presence in a global context. These externaldrivers impacts the success and profitability of company in a direct manner., in case ofCAMECO which is a company dealing in chemicals wants to increase its business presence inother nations of globe. In this regard, company is already managing operations in fourinternational market including Canada, Australia, Gabon and Mozambique. For expandingbusiness presence in other regions, company is required to consider different driving factors ofglobalisation which are mentioned below: Cost: It is the opportunity associated with global scope or scale economic along withsourcing efficiencies which reflects differentials in cost among different countries orregions. Cost of production and other associates costs will vary for different nations.This is because of different prices associated with land, labour capital etc. Thesedifferences will leads to maximum investment and enhanced international trade that willbenefits CAMECO in attained expected revenues and profitability (Black, Morrison andGregersen, 2013). For example, if Company wants to operate in UK, 1,000 workers willbe ready to work at 150 dollars per month which is quite high as compared withdeveloping countries. Due to which, Expanses of company will increase and rate ofproducts will enhance. But as workforce in UK is highly skilled and capable, companywill attain high returns due to which high profitability will be achieved.2
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