Global Business Environment

GLOBAL BUSINESS
ENVIRONMENT

Contents
INTRODUCTION.....................................................................................................................................4
TASK 1.......................................................................................................................................................4
P1 Key factors that drive global commerce and trade..............................................................................4
P2 Complexity of strategic challenges faced by organization..................................................................5
TASK 2.......................................................................................................................................................6
P3 Impact of globalization on organizational leadership, governance, structure, culture and function....6
P4 Influence of ethical and sustainable globalization on organizational function....................................7
TASK 3.......................................................................................................................................................7
P5 Different ways of decision-making.....................................................................................................7
TASK 4.......................................................................................................................................................8
P6 Determine various routes to internationalization and its key barriers.................................................8
CONCLUSION........................................................................................................................................10
REFERENCES........................................................................................................................................11

INTRODUCTION
Globalization refers the process of by which companies start operating or practicing their
business operation on international scale. It is a kind of increasing the interaction between people
on a worldwide scale due to advance technology, communication, transportation etc. It is the
worldwide moment towards financial, trade and economic communication integration (Cuero-
Cravazo, 2014). Basically it refers to the tendency of business, people or technologies to expand
its current business or start new business in any other foreign country. In simple words it is the
free movement of products, services and people all across the globe in an integrated and
seamless manner. When company wishes to take the advantage of higher competitiveness on
international scale they do globalization. This chosen company for this particular report is Ella’s
Kitchen which deals in making organic baby and toddler food. This report talks about the what
are the challenges and opportunities chosen company faced while expanding its business in other
foreign countries. This reports covers the impact of key factors like cost, market, environment on
business operation, various routes to internationalization including its key barriers, ways of
decision making, complexities of strategic challenges faced by company.
TASK 1
P1 Key factors that drive global commerce and trade
The concept of Globalization is reforming our lives and leading us into uncharted
territory. As advance technology made an effort to reduce the cost of global or international
travel and communication, countries are increasingly trying to expose themselves to the trait and
practices of culture of other countries. In today’s competitive world, everyone industry is trying
to expand their business across international boundaries so as to gain high competitive edge on
international level. Globalization refers to the trend of maximizing people’s interaction on a
world-wide scale due to advance technology, communication, transportation etc. In simple
words, “it refers to the process at which any company wants to develop or start their business
practices or operation on an international scale”.
The four main drivers for globalization includes cost, competition, government and
market. These are basically an external drivers that possess direct impact on the overall
functioning and performance of firms that wanted to expand their business in other countries.
Market is directly related with customer and thus include areas such as needs and wants of
customer, transferable marketing, current demand for that particular product which any company
wishes to expand globally. Government factors covers policies and regulation of that particular
country wherein company wishes to expand its business. In the case of competitive drivers,
company needs to builds its strong competitive image as they are going to face tough
competition from already established strong business enterprises (Harker and Armstrong, 2013).
Ella’s Kitchen is already operating their business practices in the area of UK, China, Canada,