Impact of Globalisation on Organisational Governance & Leadership, Functions, Culture and Structure

Global Business
Environment

Table of Contents
Introduction......................................................................................................................................3
TASK 1............................................................................................................................................3
P1 Analyse key factors of cost, market, environment and competition that drive global
commerce and trade. ..............................................................................................................3
TASK 2............................................................................................................................................5
P2 Explain the complexity of strategic challenges faced by organisations when operating in a
global environment supported by specific examples..............................................................5
TASK 3............................................................................................................................................6
P3 Impact of globalisation on organisational governance & leadership, functions, culture
and structure...........................................................................................................................6
P4 Evaluation of influences of ethical and sustainable globalisation on organisational
functions.................................................................................................................................7
TASK4.............................................................................................................................................9
P5 Evaluate the different ways decision making can work effectively in a global context...9
P6 Determine and articulate the various routes to internationalisation an organisation may
adopt, including key barriers................................................................................................10
CONCLUSION .............................................................................................................................12
References......................................................................................................................................14

Introduction
Global business environment is defined as a macro and micro factor that affects business
at international level. The macro factors include social, economic, technological, tax and tariff
environment. Company must understand the cultural environment of international companies to
work and operate efficiently and effectively. In assistance of this, Nowadays there are a lot of
MNCs which function and operate globally. Such organisation should involve themselves in
acquisition of culture and language of that institution in which they are working and functioning.
The success of any business based on external factor so its depend on firm's capability to plan
and design its internal environment in proper manner. Such plan helps in take opportunities
provided by external environment as well as its ability to defend against threats imposed by same
environment, for its success. The manager of CM Downton Limited provides logistics services
in order to maintain long term relationship with its client that helps in achieving success and
growth over a time period.
TASK 1
P1 Analyse key factors of cost, market, environment and competition that drive global
commerce and trade.
Globalisation is the term which is use to describe the interdependency of different
economy on each other. It is sharing of ideas, culture, technology and jobs across national
borders of the different country (Bedianashvili, 2016). It is grown today because of
transportation & communication advantage in business world. In context of CM Downton
limited, supervisor offer logistic services to its client internationally in order to increase
efficiency of the organisation. The key factors that affect the business globally which is
mentioned below:
Cost factor: Herein,there are various factors such as taxes,languages and political
agitation that must be considered while taking decision in respect of expanding purchase
and sales globally. The manager of CM Downton limited emphasised on taking a decision
regarding cost of providing logistic services to its client as well as benefit earn from them at
international level. They also considered various external factor such as currency, culture and
languages which deciding cost of offering services to its client. The management team of this
company offers faster transportation at affordable cost in order to satisfy the customers.

Market factor: It includes exchange rate, transportation cost, trade and tariff barrier
which have a direct impact on business across international level(Hamilton and Webster,
2018). The management team of C.M Downton limited focuses on external factors such as
transportation and logistic costs as well as trade & tariff barrier while providing services to
its client. This process helps in increasing profitability and efficiency of business by
satisfying the client.
Environmental factor:The present environmental factors involves global economical
crisis, intense uncert Analyse key factors of cost, market, environment and competition that
drive global commerce and trade ainty, multi-culture and reduction in government interest
towards common good that have a positive or negative impact on organisational that operate
at international level. In context of C.M Downton limited, the manager can considered all
those elements such as global corruption and lack of interest of government towards ordinary
goods which affect business at international level. The manager focuses on providing best
logistic services to its client in order to accelerate future success and growth of the business.
The main focus of business is earn more and more profit by considered all those factors that
affect the business organisation globally.
Competitive factor: These factors include change in policies, taxes rates, political
issues and international trade rules & regulations directly affect business operates at
international level. Political instability is one of the most important factors that impose direct
impact on business that functions at global level. In discourse to C.M Downton limited, the
managing director focuses on offering best logistic services to its client in comparison to its
rival competitors. They also analyse the business strategies of competitive firm that helps
them to gain competitive advantage. With the help of this, company will increase its profit
that helps in future success and growth of the business that operate at international level.
From above mentioned factors, C.M Downton limited company focusing on
competitive factor. The manager of this company analyse the strategies, policies and
procedures followed by other rival firms in order to achieve competitive advantage. They
provide best logistic services to its customer in order to boost profitability of business that
operate at global level. The company also emphasised on import and export rules that impose
direct impact on the companies policies and procedures.