Impact of Globalization on Business Strategies

This assignment delves into the effects of globalization on business strategies. It discusses Hofstede's cultural dimensions model to understand its impact on culture, uses McKinsey's 7S model to analyze the structure and functions of companies in a globalized environment, and examines the ethical implications of globalization on human resource management, marketing, production, and financial management. The report concludes by emphasizing the importance of adapting business strategies to succeed in a global market.

Global Business Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P 1 Key factors of cost, market, environment and competition that drive global trade .............1
LO 2.................................................................................................................................................2
P 2 Complexity of strategic challenges in relation to operate in global environment ...............2
LO 3.................................................................................................................................................4
P 3 Influences of globalization on organizational governance, leadership, culture, structure
and functions...............................................................................................................................4
P 4 Influences of ethical and sustainable globalization on function of organization .................6
LO 4.................................................................................................................................................7
P 5 Different ways of decision making in global context ..........................................................7
P 6 Various routes to internationalization involving key barriers ..............................................8
CONCLUSION ...............................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
The international or global can be determined as the atmosphere in various independent
nations with factors foreign to the home environment of the organization which are influencing
decision making on utilization of resource use and capabilities (Botha, Kourie and Snyman,
2014). The global business environment involve social, political, economic, cultural, legal and
technological view. This study is based on CAMECO. It is the fast growing energy and
chemical firm based on South Africa. Report will explain complexity of strategic challenges
faced by companies when operating in global environment.
LO 1
P 1 Key factors of cost, market, environment and competition that drive global trade
COVERED IN PPT
LO 2
P 2 Complexity of strategic challenges in relation to operate in global environment
COVERED IN PPT
LO 3
P 3 Influences of globalization on organizational governance, leadership, culture, structure and
functions
Globalization has continued to attract increase learned and deductive attention across the
worldwide. The concept of globalization was designed through developed nations on behalf of
their firms and financial organizations for the aim of reducing the regulations set up through
developing nations (Bryson, 2018). On other side, corporate or organizational governance is the
system of regulations, activities and procedures by which company is focused and controlled.
Impact of Globalization on Organization Governance:
Globalization is effected on corporate governance which lead to increase income and
prosperity. With the globalization, increasing the standard of living, development of society and
economic growth. Therefore, it is necessary to involve CAMECO in the Corporate governance
which help to their business expansion in the nation.
 The effect of changing and developing economic and its growth can not without social
and moral consequences as well as implication.
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 CAMECO take actions concerning the market structure, consumer behaviour and
commercial conditions (Dunning, 2014).
 The impact of globalization on corporate governance is relating to profits, social and
environmental performance of CAMECO.
Impact of globalization on leadership:
Globalization impact on leadership in the international context. Globalization continuous
to expand, so that it will interact between different culture and belief system.
 Globalization is impact all the views of ways of companies interact in the international
environment.
 Technology as globalization will need leaders to evolve international mindset within the
CAMECO.
 With the globalization, leaders will require thinking strategically, ethically and
implement transformative leadership theories which are creative.
Impact of Globalization on Culture:
Globalization also impact on culture of organization. For determining this concept,
Hofstede culture Theory of Dimensions can be follower by CAMECO. It is the model for cross-
cultural communication (Hamilton and Webster, 2018). It defines effect of culture and value of
members of society. These values relate to behaviour utilizing structure derived from factor
analysis. There are different dimensions of organization culture such as:
 Power Distance: It is the level to which less powerful members within the CAMECO
which accept and expect that power is distributed unequally.
 Individualism: The level to which people in society are integrated into unit. This
dimension defines society in which toughly incorporated relationship draw extended into
in-groups.
 Uncertainty Avoidance: This dimension is related to integration of single persons into
primary group. The high degree in this dimension strong codes of behaviour, guidelines,
regulations etc.
 Masculinity: This dimension represents preferences for cooperation, modesty and caring
for the weak and quality of life (Kerr and Perdikis, 2014).
Impact of Globalization on Structure and functions:
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Globalization has impact on structure and functions of organization which defines
through 7S McKinsey framework. This model involving structure, strategy, systems, skills,
styles, staff and shared value.
 Structure: This element is frequently visualized in the kind of organization chart. It is
the hard element in which different activities are involved of CAMECO.
 Strategy: CAMECO is able to make and implement the strategies for the achieving the
purpose of business is to increase competitive advantages.
 Systems: It involves measuring the procedure, allocation of resource and rewards. It is
also hard element of this model.
 Skills: It includes core abilities and classifiable capacities which are soft elements of
CAMECO.
 Styles: The patterns of behaviour to managers and other professionals which are also soft
elements of this model (Lambregts, Beerepoot and Kloosterman, eds., 2015).
 Staff: The workforce, demographics and attitudinal features that are also soft elements
of this model.
 Shared Value: It can reach to all the workers which is to make feeling of connection and
sociability of CAMECO.
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P 4 Influences of ethical and sustainable globalization on function of organization
Ethical globalization is highly effected on functional areas of international context.
Globalization has given complex challenges for global human resource management.
International functional areas such as
Global Human resource management: Commitment among employers and workers has
become blurred due to culture difference. The main challenge for management is to maintain
objectivity in hiring the promotion and compensation. Other significant issues involve
discrimination, sexual harassment.
Global Financial Management: The main purpose of management is wealth maximization for
the shareholder. There is little direct support which ethical behaviour leads to increasing the
wealth of shareholder (Laudon and Traver, 2016). Long term sustainability, CAMECO can
engage in ethical activities in which fairness in trading activities, tax payments, internal audit and
needs to be followed ethical financial practices.
Global Marketing: The needs of different groups differ that leads to ethical battle. Various
ethical issues are regarded to policies of marketing, communication, pricing strategies and
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Illustration 1: The McKinsey 7-S Model
Source: (The McKinsey 7-S Model. 2019)

distribution activities. Ethical behaviour is marketing areas leads to positive attitudes in
consumers about CAMECO, their products and services.
Global Production: The production are of business ethics deals with the responsibilities of
CAMECO to ensure that goods and manufacturing process do not cause harm. The firm can also
maintain harmonious relationship with environment. It is essential to deal with ethical challenges
caused by new technologies like health, radiation etc.
LO 4
P 5 Different ways of decision making in global context
Globalization of business can fundamental impact on decision making procedures to
managers of CAMECO. Globalization, internationalization and cross border actions party of
framework of modern business. With the help of globalization, company needs to make efforts to
create chances of increase competitive environment by expanding their business (Omar, Leach
and March, 2014). The globalization has effected in different ways on individual and
organization. Globalization is frequently utilised to economic globalization such as: trade,
foreign direct investment, capital flows, migration and spread of technology.
Improving Performance:
Globalization is highly impact on decision making in which manager make efforts to
improve performance of individual as well as CAMECO. Therefore, managers needs to followed
technology to give training and development to employees fr improving the performance. If
employees are working effectively so that they are highly contributed in improving execution of
company.
Increasing Productivity:
Productivity means ratio of company. With the globalization, CAMECO's manager needs
to make efforts to increase ratio as financial performance of firm. Effective capital flows and
trading will help to make decisions about the enhancing the productiveness of firm (Shenkar,
Luo and Chi, 2014). If the company has effective financial performance, so that it can help to
expand their business in international marketplaces.
Operational Decisional:
With the globalization, CAMECO needs to make the operational decisions such as
selecting correct suppliers, distribution channels, marketing and promoting the goods and
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determining the sales and revenues of business as well as evaluating the operational costs.
Through technological advancement, managers make efforts to marketing and promoting
products and services to consumers with the international market.
P 6 Various routes to internationalization involving key barriers
Internationalization is the procedure of raising involvement of company in the global
markets. It is the main sites of attention internationally (Steers and Nardon, 2014). For that, there
are many ways or routes for internationalization in which includes their advantages and
disadvantages.
Direct Exporting:
It is the method of internationalization in which CAMECO is directly included in
distributing and selling their own products to global marketplaces. It is the long term
commitment to specific international marketplace with the company selecting localised
distributor particular to the marketplace. With this, company has easily expanded their business
in the international marketplace (Omar, Leach and March, 2014).
Franchising:
It is the method in which franchisee buying the right to undertake business activity
utilizing the name and trademark of franchisers instead of any patented technology. It enables
franchisers high degree of control and allow identifying the localized preferences in the
international nations. With this method, CAMECO easily entering into international
marketplace. This method also aid in building up international brand that can be civilised and
standardised overtime.
Joint Venture:
It includes making new identity in which both initiating partners take active
responsibilities in making the strategies and making decisions. It assists to share technologies
and lower costs of high risks in different development projects of CAMECO. This method make
company to gain economies of scale and scope in value adding activities on the international
basis (Laudon and Traver, 2016). Joint ventures are common in high technology businesses. It
makes to secure access to technology and compile learning procedure of partner which is utilised
for more effective future competitive in the industry. This kind of method help to CAMECO for
entering into new marketplace.
Merger and Acquisition:
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In this method, company is utilised the foreign direct investment for entering into
international market. In this method company buying the stake and holding appropriate
ownership in the form of equities (Steers and Nardon, 2014). Within the help of it, CAMECO
easily expanding their business in the international marketplace. It aids to lead the business
rapidly and can utilise infrastructure and knowledge about localised market to improve market
share as compared to their challengers.
CONCLUSION
This report can be discussed that Hofstede's dimensions of culture model help to
determine the impact of globalization of culture, McKinsey's 7S model is useful for defining the
effect of structure and functions of the company. Furthermore, report has completed that ethical
globalization effects on Human resource management, marketing, production and financial
management the internationally.
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REFERENCES
Books and Journals
Botha, A., Kourie, D. and Snyman, R., 2014. Coping with continuous change in the business
environment: Knowledge management and knowledge management technology. Elsevier.
Bryson, J. M., 2018. Strategic planning for public and nonprofit organizations: A guide to
strengthening and sustaining organizational achievement. John Wiley & Sons.
Dunning, J. H., 2014. The Globalization of Business (Routledge Revivals): The Challenge of the
1990s. Routledge.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Kerr, W. and Perdikis, N., 2014. A guide to the global business environment: the economics of
international commerce. Edward Elgar Publishing.
Lambregts, B., Beerepoot, N. and Kloosterman, R. C. eds., 2015. The Local Impact of
Globalization in South and Southeast Asia: Offshore business processes in services
industries. Routledge.
Laudon, K. C. and Traver, C. G., 2016. E-commerce: business, technology, society.
Omar, A. T., Leach, D. and March, J., 2014. Collaboration between nonprofit and business
sectors: A framework to guide strategy development for nonprofit
organizations. VOLUNTAS: International Journal of Voluntary and Nonprofit
Organizations. 25(3). pp.657-678.
Shenkar, O., Luo, Y. and Chi, T., 2014. International business. Routledge.
Steers, R. M. and Nardon, L., 2014. Managing in the global economy. Routledge.
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Online
The McKinsey 7-S Model. 2019. [ONLINE]. Available through. : <http://www.free-
management-ebooks.com/news/the-mckinsey-7-s-model/>.
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