Influence of Globalisation on Organisation Functions

GLOBAL BUSINESS
ENVIRONMENT

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Key factors including cost, market, competition and environment and its drive towards
global commerce and trade.....................................................................................................3
TASK 2............................................................................................................................................4
P2 Complexity of strategic challenges that are faced by organisation to operate business in
global business environment..................................................................................................4
TASK 3............................................................................................................................................6
P3 Influence of globalisation on organisational governance, culture, structure and leadership
................................................................................................................................................6
P4 Influence of ethical and sustainable globalisation on organisation functions...................8
TASK 4..........................................................................................................................................10
P5 Evaluation of different decision-making to work with more effectiveness at globalisation
level......................................................................................................................................10
P6 Various routes for making a business at international level and also including its key
barrier...................................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Global business environment is specified as the environment of diverse independent
countries, along exogenous factors that are different from home environment of a business.
Globalisation also influence on decision making as well as resources which are utilised by
organisation for performing business operation in global market. In simple terms, globalisation
business environment relates with different country unfamiliar factor that are different from
domestic environment (Belás and et. al., 2014). This report is written from perspective of Allan
Reeder and it is a well-known London based business family organisation that offer wholesale
diary and non-dairy products in and around UK premises. Further, the report highlights on cost
aspect, environment, market, competition and complexity of strategic challenges which are faced
by an organisation in an international market. Globalisation and its encouragement towards
company structure, leadership and governance. Different international routes to manage business
in the international market will also focused in the report.
TASK 1
P1 Key factors including cost, market, competition and environment and its drive towards global
commerce and trade
The term globalisation refers to the process that is operated by organisation for developing
international influence in market. By understanding different terms such as political, economic
social and many more easily explain the terms related with globalisation aspect which is used for
performing and managing business at international level. Allen Reeder is performing their
business among London with understand all macro environment aspect in order to manage

operate operations as per global level commercial activities and trade (Belás and et. al., 2015).
Some key aspect from point view of Allen Reeder is mention as below:
 Cost factor- Price or cost is one of the most crucial aspect for Allen Reeder and its
business activities as the monetary policy for local country and other country is not same.
Moreover, with change in economy of the countries management of Allen Reeder desihn
cost framework according to country policy so the needs of customers are fulfilled in an
appropriate manner. This also refers by deciding right price for products it is easy to
match between product quality and needs of customers. Thus, cost factor work as a
positive point for Allen Reeder to enter into global market that help to perform trade
activities in an appropriate manner.
 Market factor- According to present market conditions, Allen Reeder cover large market
area through providing its products in Pubs, Restaurant and five star hotels which
improve brand image of organisation. So it also refers that most of the London market is
covered by management by satisfying needs and wants of customers in an organised
manner. Further, marketing team of Allen Reeder is focused to enhance their market size
for performing its trade activities into new market (Blodgett, Hoitash and Markelevich,
2014).
 Environment factor- In the present scenario, environment aspects is most crucial aspect
for organisation that is impacting on all business operations and functions of an
organisation. Allen Reeder provides dairy products for satisfying needs as well as wants
of customers and to ensure environmental aspect management focus that all laws and
legislation are followed by organisation. Moreover, business also demonstrates by
following all ethical and legal rules it is easy for management to improve goodwill of
organisation among local market. Thus, by improving goodwill or brand image
management is able to boost its commercial and trade activities at international level that
increase profits for organisation.
 Competition- With the impact of globalisation all industries are facing intense
competition among market due to which its business operations and functions are
impacted (Botha, Kourie and Snyman, 2014). Similarly, the operations of Allen Reeder
are also impacted so top authorities of business is focused for developing competitive
edge in market. Therefore, organisation develops aspect which is boosting market area