Influence of Ethical and Sustainable Globalisation

This article discusses the influence of ethical and sustainable globalisation on Allan Reeder company in the context of global business environment. It covers factors driving global commerce and trade, strategic challenges, globalisation's influence on organization policy and procedure, and the importance of ethical and sustainable practices in globalisation.

GLOBAL BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
P1.Factors drives Global Commerce and Trade:.........................................................................3
LO2..................................................................................................................................................4
P2. Strategic challenges in Global business Environment:.........................................................4
LO3..................................................................................................................................................6
P3.Globalisation influence on Organization Policy and Procedure.............................................6
P4 Influence of ethical and sustainable globalisation..................................................................8
LO4..................................................................................................................................................9
P5 Different ways of decision making in global context.............................................................9
P6 key barriers to internationalisation.......................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Global business environment refers to the business environment which work on the global
level and all the activities of the business which work in the global and international level are
included in the global business environment. It includes the policies and the law and regulation
of the international market. Allen Reeder is a bakery company which produce product of dairy
and provide the customer with the fresh cream, bread and other dairy products. Allen Reeder
provide all the dairy products to all the restaurants, pubs, hotels etc. They have family business
and started from London and are well known in giving the best quality product to its customer.
They are well known for their friendly service to all the suppliers who want to work in a good
way in market. The report will help you to understand the ways in which the global business
management work in the international market and how international trade and market can affect
and influence the decision making of the company(Perraton,2019).
P1.Factors drives Global Commerce and Trade:
Allen Reader is one rising sole trader organisation. It started in 1971 and sale cream and
butter to different bakeries in UK. Increasing competition, cost, market, environment affect on
global commerce and trade of the organization.
Cost Factor:
Cost is one of the factors that influence global business. Allen traders expanded its
business in Britain but dealing in other country it needs to change in price (Degain, Meng and
Wang, 2017). International trade norms can effect on its market development in different part of
the world. Cost is important part of marketing mix before setting cost for the product,
organization has to analyse market and customer taste and trend for example UK customer
welcome new market and product but in India customer are more loyal to one company for long
time. Allen trader has a long fame in UK and nearby countries like Ireland, Germany and France
and it gives many benefits to setup organization in this parts and hence company has chance to
expand its business. There are many countries which offer similar product of Allen at higher cost
and hence it can get chance to gain customer in this market.
Market Factors:
Market plays significant role in expanding business globally. Most of the country has
similar product of Allen traders and hence expanding and holding foot in such country need
analyse and create brand image of product to gain large number of customers. If the company is
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facing high competition in domestic market then it can move to another country which can help
in increasing profit and growth of the organization. UK has limited number of customer and
hence expanding business in different part of world increase its revenue and market share and
also creates its global image (Tallman, Luo and Buckley, 2018). Promotion via online platform
can also help in gaining market in different are for example most of youth use social media and
company focus on social media marketing can help in growth of the country. Organization can
expand its business in different area of country by price fluctuation. Allen Traders product
demand in various parts of the country and hence market development can help in globalization
of the business.
Environment Factors:
Environment factors such as resources, climatic condition and pollution impact on
globalisation of business. Climatic condition of the country such as hot weather cannot be
suitable for export of Allen trader’s product as company operate in cold or moderate climate of
UK. If the country has limited resources for the product development and growth then company
cannot expand its business in such condition. High pollution can effect on the quality of the
product and hence it can decrease customer’s demand and hence it ultimately effect on global
growth. Company follow specific standards (for ex. Recycling and waste disposal) to run the
business and if the selected country not qualified such standard then it will not possible to
expand operate business.
Competition factor:
Competition also affect on the globalization of organization for example if the
competition is low in chosen country then company has more chances to grow. However, in the
era of globalization company has less chance to expand business for Allen traders. Company
faces competition different part of the world where it operate and hence decrease its chances to
expand and gain global market share. Government policy rules and regulation favour local
companies in the country which again decrease the chance of global expansion as company
remain limited to few parts of world in these cases because of decreasing financial capacity.
Opportunities
Company has a strong image in UK and nearby places and it gives opportunities to
expand business in uncouth part of these places and hence increase profit and market share. It
can also setup market in such places where cost of the similar product is higher.
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Challenges
Company is limited to UK and its domestic competition decrease revenue of the firm over the
years and hence for expanding business company has low financial capacity. Most of the nearby
country where firm can easily expand business has high competition of the same product.
LO2
P2. Strategic challenges in Global business Environment:
Expansion of Allen traders need very strong strategy related to attracting customer and
gaining market (Aithal, 2017). Diversification is only possible in the country whose customer
welcome new market and new product and again effective strategy such as digital marketing and
other platform need to attract crowd of the country. Risk is another factor in expansion of
business because company has no idea about new country’s customer taste and trend or whether
government will support or not in expansion of business; so risk strategy play important role in
expansion of business globally. Supply chain management again play important role in
expansion of business for example if Allen trader starting its business in idea then it can effect
from poor infrastructure of the country.
Strategy Challenge related to Risk:
Allen traders can face many types of challenges in terms of risk strategy in various
countries for example Business failure because of lack of strong strategy to attract large number
crowd of different part of the world. . Expansion in the country which is facing international
sanction increase the risk such as company cannot operate well after COVID in china because of
various sanctions by world trade organization. Competition is high in different part of the world
and hence it gives fewer chances to Allen traders to expand its business and hence it decrease
chances of globalization of the organization. Lack of resources and environment problem also
create lots of problems as company has to export the resources from home country which
increase the total cost of the product and hence decrease product demand of the product.
Resources and environment issue such as climatic condition decrease the chances of business
expansion around the world.
Company faces challenge in terms of market expansion in foreign market and if company not
able to control risk in this area, then there are possible chances of shut down business in such
places.
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Diversification Strategy challenges:
Diversity play important role in expansion of the business. Allen's traders cannot start
business in the where people do not like foreign market and hence operating business in such
area decrease financial capacity of the organization. There are number of places where British
market boycotted because of past colonial history. Taste and trend of consumer also influence
expansion of business globally for example UK customer welcome new market and new product
but it is not true for other parts of the world.
Diversification can be failed in the area where competition is high and similar product available
at low cost. Availability of skilled workforce is one of the challenge that organization can face.
Innovation and creativity problems can be faced by the organization in diversification.
Supply Chain Flow Strategy Challenges:
There are many challenges related to supply chain management strategy in international
market for example currency fluctuation can rise or low the cost of product. Rising cost effect on
the company’s strategy to maintain price and gain profit. Infrastructure of other country is
another factor that affects company’s strategy for example poor infrastructure of the country
becomes time and cost effective. Labour cost is another important factor for example in some
country labour cost changes 3 times in 2 year and it continuously rises and hence expansion of
business in this country can decrease profit of organization in terms of increasing labour cost.
Company has to change strategy related to country and hence it increases expenditure and
decrease profit.
Company face challenge in terms of poor infrastructure and connectivity which become
additional cost and reduce profit of firm. Supply chain management cost rises in many areas
where organization has to pay higher prices rage and transfer of product and raw materials
because of Complex international logistics.
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LO3
P3.Globalisation influence on Organization Policy and Procedure
Globalisation impacted on the growth of organisation for example organisation
governance has to frequently change policy according to country’s market. Transformative
leadership adopted in the organization for smooth run of the business (Pham, 2020). There are
many changes as discussing below that influence by Globalisation.
Influence on Organization Governance:
Company has to frame policy according to changing market for example cutting prices
for competitive advantage. Allen Trader functionalises its operation to decrease time & cost and
on the other side giving more autonomy to different department and hence increase innovation
and creativity in the organization. Company has adopted various technologies to decrease time
for supply chain management as well as increase output for the same input. Allen trader focuses
in gaining investors worldwide with effective management and hence increases financial
capacity of the organization (de Haan, 2020). Company also started building strong relation with
various stake holders.
Influence on Leadership:
Leadership become part in globalized work. Allen traders choose leaders which can
influence employees as well as increase quality, efficiency and productivity in the organization.
Transformative theory plays important role in globalisation as it focus on personal growth of the
employees as well organization. In this leader gives autonomy to employees in innovation,
creativity which helps in their personal growth and which ultimately contribute in growth of the
organization. Leaders should be task and employee oriented in organization for globalization of
the organization.
Influence on Structure:
Structure of the organization is also impacted from the globalization. There are three
types of organizational structure, namely functional, divisional and matrix. Company divided
different task in particular function and hence more autonomy to each function help in gaining
competitive advantage in different country. It also increases quality, efficiency and productivity
of the organization as talented and skilled worker for concerned department. Similar matrix and
divisional structure use in various countries to more organize work and improve growth of the
organization.
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Influence on Culture:
Hofsted Cultural Model:
Hofsted develop a model to understand cultural difference in country and its impact on
business. Hofsted choose sex categories to define cultural influence on Business, namely Power
distance index, Collectivism vs. Individualism, Uncertainty Avoidance Index, Femininity vs.
Masculinity, Short-Term vs. Long-Term Orientation and Restraint vs. Indulgence.
Power distance index:
It have two component High power distance index and low power distance index. In high
power distance index ranks define power and hence company faces barrier in term of innovation
and creativity which decrease chances of Globalization. Low power index explain that more
autonomy will increase innovation and creativity of workforce and it increase quality, efficiency
and productivity of the organization.
Collectivism vs. Individualism:
Company can achieve higher goal by adopting Collectivism in the organization culture as
all workforce contribution help in gaining competitive advantage in the era of globalization.
Individualism emphasize on achieving personal goals and hence not suitable for global market
gain.
Uncertainty Avoidance Index:
High uncertainty avoidance index show low tolerance for risk , uncertainty and ambiguity
and hence company do not suffer from loses as it suffer in low uncertainty avoidance index and
hence expand business in different part of the world.
Masculinity vs. Femininity:
Masculinity focuses on material achievement and wealth being and Femininity emphasize
on quality of life. Company can expand its business choosing masculinity in organization
culture.
Long-Term Orientation vs. Short-Term Orientation:
Long term orientation focus on achieve higher goals by focusing on long terms goals and
hence it can adopted in organization culture to expand business in the age of globalization. Short
term orientation emphasizes on short term achievement and hence less visionary for
globalization and gaining market in different part of the world.
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Indulgence vs. Restraint:
Indulgence can be adopted in organization culture as it is more organize and give chance
workforce in innovation and creativity which increase efficiency, quality and productivity of the
organization. Restraint is not suitable for globalization as in this workforce not allow to express
idea freely.
Organization culture plays significant role in globalization of business. It defines
values, expectation and practices that workforce has to follow for achieving common goal.
Hofstede theory can help in changing culture according to country to gain market. Theory define
that more autonomy will increase innovation and creativity of workforce and it increase quality,
efficiency and productivity of the organization. It all focus company can achieve higher goal by
adopting Collectivism in the organization culture. Hence for better achievement and market gain
in the era of globalization, company has to adopt hofstede theory.
Influence on Functions:
Globalization creates strong bonding between different function to achieve higher goals.
For example marketing team give details and report regarding new market to R&D and
production team which help in manufacturing of better product. However, cooperation of all can
help in expansion of the business and anyone’s less attention effect on overall performance of the
organization. Allen trader has give more autonomy to different function and trying to build
strong relationship and communication for better market gain different part of the gloabe.
P4. Influence of ethical and sustainable globalisation
The influence of the ethical the Allan Reeder company in globalisation follow to get the
best result out in the market in the international and global platform are as follow: -
Quality: -
Quality in the product is the first thing the company focus as the customer rely on those
products which show the best in the quality and it’s the duty of the company to provide the best
quality product in return to the money they asked to the customer. Quality product helps in
improving the business and market value of the company. Allen Reeder provide the best of the
quality product to its customers and provide the best service in the market and show the ethics
towards the business and work accordingly.
Transparency; -
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Transparency refer to the way the company is providing the details about the product in
the market and companies need to be transparent to the customer so that customer can trust the
company. Allan Reeder work in the best of the transparency to the product to its end customer to
make them rely on the company and gain trust. Transparency helps the customer in
understanding the product and can make their choices and preferences according to it. To get the
best result in the global market the Allen Reeder are providing all the product with every detail
and making sure to manage all the necessary items in the product transparency to gain the trust
and being honest in the market to get the best result and the better performance.
Growth and teamwork: -
Ethics improve the growth and the teamwork of the employees in the organization and helps
the company in achieving the best performance and the result they want to work. Its important
for the company to maintain their employee’s growth as they work for the company not for their
personal growth and the company should think to make a regular growth in the employees. Allen
Reeder always focus on trying the best in the teamwork and growth of the company employees.
Growth and teamwork is an ethic in business and is important in the global market to make the
employee work better for the company.
Globalization impact on culture and structure of the organization
Globalization contribute in diverse culture workforce in the firm which increase quality,
efficiency and productivity of the organization. New ideology of different kind of workers
increases innovation and creativity in Allen Reeder which contribute in growth of the firm.
Increase autonomy in work culture because of globalization again helps in more productive
output from the workforce.
It impacted on structure of the firm for example various department gets higher authority,
and they are divided on the basis of the task which increase performance, efficiency and quality
of the work. All department have different Managing people which focuses on proper guidance
to employees at work and also employees gets proper training related to task.
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LO4
P5. Different ways of decision making in global context
Utilization of resources: -
The decision which are need to take are important and its important for the company to
look for the resources and get the best utilization of the resources in the company environment
which can help the company in getting business goals. Organization have various resources and
to work good on international level its important to utilize them best. Resources like employee,
technologies, money, method, machine, market etc. The organization need to focus on utilization
and not letting the resources get wasted and work on the minimum cost to get the best result.
Utilize the resources to the best and making sure to use the scrap item also in the working to
make the best utilize of the resources.
Motivating employee: -
Employees are the main lead role of the company and its important to take decision
regarding the employees which can help the employee gets motivated and work more for the
company and give the best f the work towards the company. Motivation helps in improving the
work and working in global market need more of that motivation towards the employee. Even
the company need to make sure that the employee relies on the company with full
trust(Humphreys,2017). Its important to motivate every single people and employee in the
company to make the best use of the employees.
Managerial performance evolution: -
Working on the global platform need good management in the company and the Allen
Reeder are working on the best management to get the best result out of the performance. It
important to take decision on the manager as its need to be perfect as they are the role model for
the other employees and they need to be well effective towards the work and need to be always
dedicated and should set example for the other employees.
Selecting the best alternative; -
Decision making is important but its also important to understand the importance of the
alternative and taking decision on the selecting the best alternative when required. Allen Reeder
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provide the alternative and they make sure that the company takes decision which impact
positive on the company on the global and domestic both the level.
Financial: -
Decision related to finance is important as working in global market need the company
more of the finance and it will also show the strength of the company in the market. Financial
decision is important as Allen Reeder provide the dairy product and providing those in
international market need new technologies which required money and expenses (De Wit,2020).
Financial barriers are that when company does not have the resources of the finance to work in
the market and shortage of finance can lack in business growth and operations.
P6. key barriers to internationalisation
There are a numerous number of barriers include in the internationalisation: -
Financial Barriers: -
Financial barriers are one of the major barriers of the Allen Reeder in working in
internationalisation market and it is a major way by which most of the SMEs could not able to
work globally. Lack of capital requirements and other resources and Allen Reeder resources are
limited access to key infrastructure. The lack of resources in the market is a barrier to the
company in international market. If company want to work easily in the international market
then they required a lot of financial resource so that they can handle all the situation there.
Managerial Resources: -
Lack of experience and managerial skills can damage Allen Reeder and organization
must have a good managerial resource to work in the international market and to understand the
situation easily with the perception of the mindsets of the place they are facing issues with. Allen
Reeder required a lot of managerial resources to expand the business in international market.
This is important for the company to understand the importance of management and effective
management in the market. Working globally required a lot of managerial
resources(Knight,2016).
Climate barriers: -
Climate barriers in the company as the change in the climate of the different places affect the
product of the company in different ways and its hard to make the product work good in all type
of climate condition which require a lot of money and technologies to make sure the things does
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not get affected. Allen Reeder work in dairy product which can get affected by the climate
conditions in the different countries so company need to focus on it.
Transportation and tax policies: -
Transportation is important when working in international market and providing the services
from the Allen Reeder's Headquarter to different places. Its important to have a good
transportation service to work in the best way to provide the products and service to everyone but
required a lot of new technologies transportation as the dairy product need to be kept in cool
space(Ratten,2017).
Industries barriers: -
Industry specific barriers are the competition in the market on new place the company want to
work in. Allen Reeder work in UK and they are the best in giving the service in the best quality
and they need to provide the same on the international level to keep the barriers and competition
in low ways and doesn’t affect their business.
Company can increase its financial capacity by attracting investors or joining hands with
new partners in targetted market or can take loan too. Company's HRM can hire and select new
managers which are highly skilled and trained and have good experience. Allen Reeder must
check climatic conditions of the place before starting business. Effective supply chain
management can decrease cost of transportation at various place and hence increase profit of the
firm.
CONCLUSION
From the above report it is concluded that the company Allen Reeder are providing the best of
the services in the dairy products. Working in global market need the company to make all the
strategies and plans to make the company work in the international market with all the planning
and resources. Report helps in showing how the company gets influence in globalisation and the
importance of the structure and culture in globalisation. The decision making and the importance
of decision-making Allen Reeder focus in getting the business goals are explained
(Michie,2019).
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REFERENCES
Books and Journals
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Business Decisions of Multinational Firms: A Systematic Study.
International Journal of Management, Technology, and Social Sciences
(IJMTS).2.(2).pp.93-104.
Pham, P.M., 2020. International Strategic Management.
de Haan, P., 2020. Trade, Globalisation and Development. In Whatever Happened to the Third
World? (.pp. 253-298). Palgrave Macmillan, Cham.
Isokariari, T.O. and Daniel, C.O., 2020. Influence of Globalisation on Project Delivery and
Organisational Performance. Asian Journal of Business and Management
(ISSN: 2321-2802).8.(2).
De Wit, H., 2020. Internationalization of higher education. Journal of International
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Humphreys, K., 2017. Avoiding globalisation of the prescription opioid epidemic. The
Lancet. 390(10093). pp.437-439.
Knight, G.A. and Liesch, P.W., 2016. Internationalization: From incremental to born
global. Journal of World Business. 51(1). pp.93-102.
Michie, J. ed., 2019. The handbook of globalisation. Edward Elgar Publishing.
Perraton, J., 2019. The scope and implications of globalisation. In The Handbook of
Globalisation, Third Edition. Edward Elgar Publishing.
Ratten and et.al., 2017. Family entrepreneurship and internationalization strategies. Review of
International Business and Strategy.Online
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