Global Business Environment

This report analyzes the key factors driving global commerce and trade, the complexity of strategic challenges faced in the global environment, the impact of globalization on organizational functions, and different ways of decision making in a global context. It also discusses the ethical and sustainable aspects of globalization. The case study is based on Ramada, a hotel industry in London.

GLOBAL BUSINESS
ENVIRONMENT
Table of content

INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Analyze key factors that drive global commerce and trade................................................................3
TASK 2............................................................................................................................................5
P2 Complexity of strategic challenges to be faced when operating in global environment......................5
TASK 3............................................................................................................................................6
P3 Impact of globalization.......................................................................................................................6
P4 Evaluate influence of ethical and sustainable globalization on organizational functions....................8
TASK 4............................................................................................................................................9
P5 Different ways of decision making to work effectively in global context...........................................9
P6 Various method to internationalization may adopt including key barriers........................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Global market is all about to deal internationally through manufacturing and selling
desired products or services. There is wide range of competitors from different countries having
their strong goodwill of brand. It is very difficult to enter in global market and survive their
successfully. Global business environment can be described as including several kind of factors
such as political, economic, environmental, socio- cultural and so on (Tayur, Ganeshan and
Magazine, 2012). These elements arises various issues or problems while operating in global
market so that it is necessary to take care of all of them. This report is based on Ramada which
deals in hotel industry to provide better services in London. Key factors like cost, competition
etc. driving global commerce and trade will be explained in this assignment. Strategic challenges
while operating in international market and impacts of globalization on organizational aspects.
Various method of effective decision making is necessary to perform task efficiently. There are
several routes to articulate internationalization of an organization. It has different barriers also
that are described below.
TASK 1
P1 Analyze key factors that drive global commerce and trade
There are various kind of factors which impacts more effective as well as
efficiently while operating at global level. Along with this it is also very obvious that several
elements that drive globalization of an organization (Scullion and Collings, 2011). It is beneficial
for a business concern to expand company at global stage because this will facilitate to attract
new clients and retain the current ones. This can be described as an opportunity for Ramada to
improve it brand image which results into increasing productivity as well as profitability. Some
of factors that mostly drive internationalization in Ramada are given below:
Cost: - This is the basic factors behind operating activities of any organization because
every business concern have to invest desired capital. Cost manufacturing is an essential
component because various kind of tasks or events are dependent on this to be carrying out for
gaining better outcomes. Cost works as motivational factor for those people want to increase
their investment to expand business at global level. As it is very obvious that a single nation’s
market is not enough to offer company’s country subsidiaries at all probable economies of scale

and scope that renders dramatic changes in market scenario. Ramada may invest some more
capital to expand its business a global level to attain better productivity and profitability.
Market: - This term may refers that to place where final selling of manufactured product
or service is taken place. It is observed that several economies become more common in terms
like income, lifestyle, education, aspiration and other aspects to utilize their time comfortably
(Kirton and Trebilcock, 2017). A very important task for different types of organization is
conduct several effective marketing activities to improve sales and profits. Such kind of events
are necessary to make people aware about the specific brand and improve buying power in order
to increase number of customers. Ramada hotel have to organize various promotional events to
boost up their brand image and profitability amongst strong competition of market.
Environment: - This term involve various internal and external factors that influence the
business aspects in positive or negative way. In current trends, wealth and mobility of people
across different borders transfer information rapidly that facilitates globalization and
technological revolutions. This fact will introduce several changes in demands and wants of
customers which are important to be completed by products of specific brand. Ramada have to
determine modified desires of clients and put efforts to fulfil them more effectively and
efficiently. This will create better productivity in terms of increasing number of consumers by
boosting up brand image in market scenario.
Competition: - There are different types of competitive firms which may affect customer
count of an organization. It is very important to remain competitive by implementing several
innovative strategies and policies to lead amongst competitive enterprises. They have to get
upgrade at market competition through proving several unique ad desired products faster to
clients. More satisfaction form a particular service make people regular for specific brand
(Mikurak, 2012). After repeated buying same product they turns to loyal customer. Ramada have
to put efforts for implementing fresh concepts to grab more opportunities to boosting up
productivity as well as profitability.
The above mentioned factors are usually responsible for driving towards globalization.
To introduce a particular brand in global market is necessary for attaining more number of

customers along with certain fresh chances to grab which results into better outcomes for
organization. Ramada may enter into global area to improve its brand value and profits.
TASK 2
P2 Complexity of strategic challenges to be faced when operating in global environment
It is well known that various kind of challenges arise when operating at global level.
Sometimes, that become quite complicated in terms of recruitment and development of staff
members. At global companies are generally establish their ventures in different countries then t
is very complex to deal with employees belongs to different cultures (Boddy, 2011). In order to
develop their skills and abilities they have to conduct training and learning procedures to operate
successfully at global market for achieving better outcomes. Ramada may face various complex
strategic challenges and these are as follows:
Common goals: - When an organization deals at international level then it is quite
difficult to operate in terms of following central strategy. In this case, it is a challenge to make
policies of development of particular company worldwide through single plan of action. The firm
have to deal with various threats as per venture in different nations to work on single concept. It
seems to be more complex while making same target true through collective efforts of all
workers performing at global stage. Ramada have to work on this aspect very carefully to cope
up with it. For example, if an enterprise operating in two different nations then they might
prepare little bit dissimilar strategies to grab more market area due to different taste of customers
belongs to other countries. But aim must be some to attain better or desired outcomes.
Global collaboration: - Every company who is dealing globally have to combine their
human resource into global and regional project groups to complete several tasks and procedures.
But this is not enough and firms have to make proper strategic direction for development so that
employees will put their efforts inn correct manner. In such global empire, it seems to be
supportive to share policies and ideas which are going to be applied in enterprise (Crane and
Matten, 2016). Because suggestions of employees are proved very beneficial to generate better
outputs for company. For examples, if Ramada deals at global market then they need to hire
workers from regional area wherever they are operating. These people know about cultural

desires and preferences and can render appropriate ideas many times that helps to improve
profitability of organization
Sustainable business strategy: - There are different organizations which deals at global
level by making better strategies and policies through appropriate decision making. To prepare
fresh and innovative plan of actions are quite easy but to sustain with them in market scenario for
a long time is much difficult. It is important to organize employee talents to generate sustainable
competitive advantage. Ramada have to create such efficient products or services that can be
render to customers throughout the world. In this case, they face a challenge to generate more
appropriate business patterns which keep cost of manufacturing in line and support to make
competitive advantage constant.
Core competencies: - There are different types of organization that are surviving ii
international market through their specific product or services. Each of them has core product
that facilitates to make core strategies to build unique brand image amongst various competitors
(Wallace, 2017). These are known as core competencies and they are strategically developed to
render advantage for a long time. Ramada need to make such kind of policies to gain competitive
advantage to achieve profitability more successfully.
TASK 3
P3 Impact of globalization
Whether a business is small, medium or large, various internal and external factors
affects it in positive or negative way. If an organization is operating at international level then
they have face several impacts on organizational aspects. There are different kinds of issues
relevant to global environment then it will definitely effect on policies of company. This can be
described as in terms that foreign competition impacts local competitiveness along with security;
which is very essential to business men. Some of these impacts on prospects of Ramada that are
described below:
Governance: - It is important to make sure about collect proper information of legal rules
and regulations of specific nation wherever operating. Size of business does not matter but it is
mandatory to accept legal regulations to carrying out at global level. This is an essential aspect

that organizations have to understand and follow several legislations that govern firm’s products
or services. Ramada must apply tax laws of different nations along with statutory import and
export regulations. Certain policies are very strict in terms to hire foreign employee and many
more aspects (Mamic, 2017).
Structure: - To expand a business at global level, the companies have to make several
changes and modifications in structure of different departments associated with it. As per global
rules of establishing an enterprise has some of necessary aspects which impacts on
organizational current structure and they need to modify it. After taking an entry, it is very
essential to implement few fresh concepts to makeover the structural system of an organization.
This seems to be mandatory to survive successfully in international market place. Ramada also
required to modifying their several methods to render an appropriate product as well as services
to desired clients for improving profitability.
Culture and language: - Various small scale firms can compete competitively in global
economy. There are many small enterprises that deal in customer care services all over the
world. It is important to appoint such employees who are capable to make proper conversation
with different clients (Chiu, 2018). Many of customers are belongs to that place where
organizations are operating so that hiring of workers should be done in terms of those people
who are familiar with that culture and preferences of it. Ramada has to appoint new employees
from that country in which they expand their business in proper way.
Functions: - There are various kinds of functions that are conducting through technology
in every organization. But the fact is every company prefers different king of technology to make
their product and services more effective. They also utilize them for making procedures faster to
complete regular targets to attain better outcomes. Several activities are easily organized with
help of software like communication, book keeping, records maintaining, calculation and so on.
Ramada can implement certain efficient soft wares by which they easily book orders and deliver
proper service to desirable customers. They have to apply efficient soft wares to render quick
delivery and book orders in correct manner.
Environmental impacts: - It is observed that almost all nations are working on concept
of recycling as business leaders realize that their habits or procedures of regular routine impacts

on global environment. This includes energy saving equipment to save environmental aspects.
There are various natural resources which are obtained from nature should be utilizing by
recycling them because they are limited and essential for operating activities (Closs, Speier and
Meacham, 2011). Several firm relevant to food, energy and transportation are facing
environmental pressures to use fewer natural sources and adopt policy of recycling.
The above mentioned factors are those on which impacts of globalization are observed.
Operating in global market indicates to make something unique through innovative strategies or
policies to grab more market share. These impacts may be positive or negative so that Ramada
have to make sure to determine them. By this, they have to reduce issues and enhance profitable
aspects to gain better outcomes .
P4 Evaluate influence of ethical and sustainable globalization on organizational functions
There are different kinds of opportunities and challenges are arrived after entering in
global market. Now, it depends on business concern whether they want to grab positive chances
at correct time or get affected by negative aspects. It is necessary to grab better openings to
improve productivity as well as profitability of an organization. But along with it, challenges
must be identified and try to reduce their improper effects (Swarbrooke and Horner, 2012 ).
There are various ethical issues that rise anytime so that firms need to take care of these factors.
It is well known that some of ethical rules are there and mandatory to follow by each and
every organization whether it is small, medium or large to survive in global market. If an
enterprise wants to remain in international market then they have to accept all legal legislations
to do business there. To sustain with desired image and profitable condition of Ramada is
possible when they put efforts in order to follow norms of global market.
Several legal authorities are there who has right to take care of ethical norms in all
organizations. They can ban company to conduct business anywhere. The firms have to make
suitable strategies and policies by considering certain essential rules to sustain their strong
position in market.

TASK 4
P5 Different ways of decision making to work effectively in global context
There are various kinds of methods through which effective as well as efficient decision
making can be done for build correct strategies or policies. These are mandatory to be prepared
for carrying out necessary activities or procedures in appropriate manner. Global market has
different trends of operating and distributing final goods to accurate channels (Barry and et. al.,
2011). It is important to analyze several essential factors to carrying out business in accurate
manner to generate better outputs. This may involve various elements to be evaluated for
achieving success in international scenario. Ramada has to consider several aspects of strategy
that is given below:
Scope of operations: - Decision making of manufacturing specific product at global is
very important because goods will be selling to earn profit. But if in case there is no scope of that
huge loss. For this, organizations have to conduct a survey to forecast need and demands of
people and then introduce new product or the current one in global market. Ramada has to first
evaluate scope of its products or services then introduce brand in global market to boost up its
productivity as well as profitability. After analyzing preferences of people they need to launch
some new concept to attract mew clients and gain more benefits.
Allocation of resources: - Resources are very important component every organization
as they are required to conduct various events and procedures to gain regular outcomes.
Companies have to focus on global strategy in terms of optimum utilization of sources for
creating maximum outputs from them. It is mandatory to grab desired market shares by boosting
up profits or sales (Mikurak, 2011). Proper planning should be done as it determines several
relevant significances of functions and bases the allocating resources. Some of them are limited
then firms have to use in accurate manner without wasting. Many of organizations are adopting
recycling of raw materials for generating desired outcomes. Ramada can also utilizes the strategy
of better using of resources for gaining better results and recycling of possible sources.
Competitive advantage: - There are various kinds of effective strategies for conducting
operating procedures to gain competitive advantage. This can be done through using superior
technology, applying more effective organizational policies, creating well-known brands and

distribution systems. Firms have to always get up to date as per changing trends of market
scenario. Probable modifications should be applied into goods, services or promotional activities
are an essential task to attract new customers and retain the current ones for better outputs.
Ramada has to take care of all these aspects to increase their productivity as well as profitability
for grabbing more market area. It can be done through done through determining potential areas
to achieve more benefits.
The above mentioned methods are important to be analyzed and evaluated for improving brand
image and profits of an organization. To enter in global market or to expand business
internationally, scope and accurate strategies should be prepared to survive successfully
(Zsambok and Klein, 2014). Because there are different types of competitive companies which
has already established there so it is necessary to compete with them effectively. Allocation of
resources should be done in appropriate manner for making maximum results from it because it
is related to profitability of an organization. All these factors are essential to be studied and take
accurate actions.
P6 Various method to internationalization may adopt including key barriers
There are different methods by which internationalization can be done in case of SME’s.
Generally when people want to invest more capital into their business then they can introduce
brand at global trends of market. They expand business and make it globalize its production
activities in terms of tradeoff between ownership and market transactions. Some of techniques
that can be adopted by Ramada are given below:
Direct exporting: -This can be described as selling directly in global market by own
resources in specific field. Many for firms establish program of sales and become agents or
distributors to represent their brand into different countries. Such people become face of an
organization in front of come customers and handle several aspects properly. Ramada can
implement this method to sell its products and services in other countries so that people get
aware about its brand. It is also beneficial in terms to evaluate interest and demand of customers
for their goods.
Licensing: - It is a kind of legal agreement which provide rights to use product to other
company. This strategy is very useful for purchaser by having license of that brand which

already has good market share in current scenario. It is valid for marketing aspects as well as for
production. Ramada may adopt this technique through that they can expand their business with
other firm that already has profitable outcomes. It will facilitate to improve their productivity as
well as profitability of business (Rugman and Verbeke, 2017).
Franchising: - It is typical procedure for expansion of market in rapid way and it provide
profitability in other countries also. It is in case when people want to establish a connected
branch in other nation then they take some rights to open a venture over there. The business have
unique concept to attract people so that it firm will survive successfully in other market. Ramada
can accept this approach because they are able to take franchising of some other firm and open
new enterprise at some different place to enhance business along with more benefits.
Partnering: - This can be described to purchase shares of an organization to become
business partner of it. This aspect is considered as mandatory when ever want to enter in to
different market place to achieve better outcomes and become popular amongst new people.
Ramada may apply this strategy to expand business and take shares to improve productivity and
goodwill of specific brand to lead amongst competitors. It will render support to attract new
clients and retain the current ones properly to earn more income with many other profits also.
Joint ventures: - These types of firms are generally considered as specific form of
partnership which include generating third new concept to build a managed enterprise. It is that
case, two firms are agree to work together in particular filed with unique and fresh idea then they
establish new venture to attain better profits from new business. Ramada can adopt this
technique to establish it new ventures at different countries to expand their business for attaining
better productivity as well as profitability. Besides of dissolving original brand name, it is more
correct to create new idea and establish third company to improve current brand image along
with fresh one.
Barriers
 Import and export custom legislations become barrier while trying to enter inn global
market with unique and potential brand to gain better outcomes.
 More capital is required to establish operating firm in other country and fulfill several
laws to sell product in other countries.

 Exporting is products need more investment for distribution along with delegation of
marketing in each nation wherever products are supplied.
 Global market has various kind of risks and uncertainties and that may impacts on firm’s
production any time which results into huge loss.
 Several types of different taxes must be paid by organization which results in decreasing
profitable income.
CONCLUSION
The above report had concluded that various kinds of firms are there and want to enter in
global market. Several key factors are there that drive global commerce and trade such as cost,
market, environment and competition. While entering in international placed, various challenges
arise due to complexity of strategies. Different types of impacts can be faced after adopting
global market trends in certain aspects like functions, culture, structure, governance and so on.
Analysis of probable factors if necessary to make appropriate decision making in terms of
carrying out tasks or activities properly to gain better outputs.

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