GLOBAL BUSINESS ENVIRONMENT

GLOBAL BUSINESS ENVIRONMENT 18 Running Head: GLOBAL BUSINESS ENVIRONMENT GLOBAL BUSINESS ENVIRONMENT Name of University: Author Note: Introduction 3 Activity 1: Global business environment 4 Analysis of the key drivers of globalisation 4 Progress and application of technology 4 Development of services 4 Growth in consumer pressure 5 Increase in global competition 6 Changes in political situation and government policies 6 Complexities of strategic challenges in global business 7 Political changes 7 Cultural diversity 7 Diverse currencies 8 Regulatory challenges 8 Interdependency (2018) 9 Critical analysis of

Running Head: GLOBAL BUSINESS ENVIRONMENT
GLOBAL BUSINESS ENVIRONMENT
Name of the Student:
Name of University:
Author Note:

1GLOBAL BUSINESS ENVIRONMENT
Table of Contents
Introduction......................................................................................................................................3
Activity 1: Global business environment........................................................................................4
Analysis of the key drivers of globalisation................................................................................4
Progress and application of technology...................................................................................4
Development of services..........................................................................................................4
Growth in consumer pressure..................................................................................................5
Increase in global competition.................................................................................................6
Changes in political situation and government policies..........................................................6
Complexities of strategic challenges in global business..............................................................7
Political changes..........................................................................................................................7
Cultural diversity.........................................................................................................................7
Diverse currencies.......................................................................................................................8
Regulatory challenges..................................................................................................................8
Interdependency...........................................................................................................................9
Critical analysis of the strategic challenges caused by globalisation..........................................9
Business risk............................................................................................................................9
Diversification strategy..........................................................................................................10
Supply chain management.....................................................................................................10
Evaluation of the global business environment.....................................................................11
Activity 2: Scenario based analysis...............................................................................................14
Influence of globalisation on organisational governance and leadership..................................14
Organisational governance....................................................................................................14
Globalisation and leadership..................................................................................................15
Principles of corporate governance.......................................................................................15
Influence of globalisation on organisational structure...............................................................16
Influence of globalisation on organisational culture.................................................................16
Influence of globalisation on organisational functions..............................................................17
Ethics and sustainability on organisational functions................................................................17
Influence of ethics on organisational function.......................................................................17
Evaluation of global sustainability over organisational function..........................................18
Global market influence over organisational structure and culture of Shell Plc.......................19
McKinsey 7s model on organisational structure...................................................................19
Hofstede’s cultural dimension...............................................................................................20

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Different ways of decision making in Shell Plc........................................................................21
Decision making in global context........................................................................................21
Ways to enter global markets................................................................................................21
Evaluation of the key barriers to globalisation and recommendations..................................22
Justified recommendation for Shell Plc.................................................................................23
Conclusion.....................................................................................................................................23
Reference.......................................................................................................................................25

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Introduction
Globalisation is identified as a significant phenomenon in the current business practice. It
is associated with products, technology, information and the jobs beyond the national and geo-
political boundaries and cultures (Dieuaide 2018). From the economic perspective, it can be
defined that the interdependence of the nations across the globe facilitates a healthy environment
which is driven by free trade practices. In course of time the concept of globalisation expands its
original idea of economic relaxation and become a part of the society and culture. From the
research of Waddell (2017) it can be argued that the concept of globalisation is a dynamic aspect
and it connotes not only the economic paradigm but the political, social and the cultural aspects.
However, the research of Thomas (2018) clearly put emphasis over the economic aspects and
corroborated the fact that the initiation of globalisation has been started with the expansion and
development of economy. As a matter of fact, the paradigm of global business is related to the
process of shared and integrated environment. Technological advancement and the competitive
dynamics supplement the development of globalisation to a great extent and help to transcend its
foundation from single economy to free trade and free capital movement. Therefore, from the
research of Cramer (2017) it can be stated that globalisation is a process to open foreign financial
and investment markets for the international companies with the characteristics of deregulation
and improved communication. Based on this understanding, this essay is going to prepare a
critical analysis of the key drivers and concepts of globalisation. In addition to this, the impact of
globalisation on companies like Shell Plc. will also be discussed in the essay for an in-depth
understanding.

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Activity 1: Global business environment
Analysis of the key drivers of globalisation
Progress and application of technology
The technological development makes it easier for people to communicate and connect
with each other. Therefore, the geographical boundaries and cultural barrier are no longer a
triggering factors for people and they can easily get connected with others even from distant
location. One of the most important advantages of technological progress is that a global village
has been created through expanding a vast network of communication. Mukherjee and Dutta
(2018) stated that the technological development and innovation supplements the process of
globalisation in business as the business organisations are also understood the importance and
significance of implementing cutting edge technologies. According to Rowley, Ishikawa and Oh
(2019) the development of technology put great impact over the relationship between the
organisation and the customers and a transparency can be made between them. Nevertheless,
there are some challenges like high costs and maintenance measures of the cutting edge
technologies is very complex that increase the expenditure of the organisation to recruit experts
who can monitor and resolve the issues.
Development of services
The gradual increase in demand and expectation of the customers have a great deal of
impact over globalisation. There are significant benefits of service development which are
supported by the empirical evidences. Faghih (2019) stated that people are well aware of their
demands and very much concern about the quality of service. Therefore, it becomes a pertinent
measure for the business organisations to deal meet the demands and expectations of the

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customers effectively. In course of developing service facility, the companies feel the need of
expanding its business operation further in the international market to attract more customers. By
meeting the needs of the customers, companies are trying to ensure more profitability in business
and solidify the business to a great extent so that for future sustainability. The impact of
development of service has a positive side in terms of encouraging the business organisations to
expand business. As a result of that an opportunity to increase profitability can be created for the
business organisations in the competitive market. However, certainly a number of challenges are
arose such as the fluctuation in the consumer behaviour can jeopardise the entire service
development process. In the international market it is very much uncertain to have a preconceive
idea about the consumer behaviour. As a result of that vulnerability for the business organisation
is increased subsequently.
Growth in consumer pressure
The consumer pressure is also associated with their demands and expectations. Unique
expectations of the customers and the changing needs also pave the way for influencing the
process of globalisation. In fact, the growth in consume pressure is identified as one of the
leading advantage for the progress in globalisation. From the research of Bartsch, Riefler and
Diamantopoulos (2016) it can be derived that consumers are trying to influence the business
organisations to a great extent by placing demands and influencing the market trends. Apart from
that Jha and Gozgor (2019) confirmed that the global population is growing at a gradual pace and
it becomes important for the business companies to stretch its business operations beyond the
national market. Therefore, it also heightens the growth of globalisation to a certain extent. As a
result of that globalisation is able to be developed as per the market demand and trend. Still there

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are some challenges like growth limit even for globalisation and the uncontrolled development
can create serious threat for the business organisations to survive in the market.
Increase in global competition
Competitiveness in the market is another important advantage on which the progress and
relevance of globalisation depends. The development in the global competition can facilitate a
positive impact over globalisation where the market trends can be identified properly and the
business organisations can deliver an effective organisational practice so that it will ensure high
profitability. However, from the research of Steenbergen and Siczek (2017) it can be found out
that competitiveness in market can take bad turn and it will definitely be a catastrophe for the
business organisation to pursue with heavy burden of the market. Therefore, a balance is always
required to meet the interests of the organisation and the keep the objectives intact. Therefore, it
will be a challenge for the small and medium scale companies to survive in the competitive
market properly.
Changes in political situation and government policies
High interference from the government can also influence the development of
globalisation. Fong and Leibrecht (2019) advocated that it is an advantage for the business
organisations to follow the government regulations in order to practice a hustle free business. As
a result of that a guidance can be provided to the business enterprises so that they can easily
develop their business. Nevertheless, it can be a challenge for the companies in the form of
interference from the government can pose threat to the autonomy of the business and it is grave
challenge for the business organisations. Nevertheless, the political stability and government
policy will help a business company to follow ethical business practice. It will definitely have a

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deep impact over the globalisation process where the orientation of the organisation determines
the outcome of globalisation.
Complexities of strategic challenges in global business
Political changes
Political change is definitely identified as a crucial factor for the multinational business
companies while performing in the international or domestic market. Political strife and
instability can create a great deal of impact over to operational practice and sustainability of an
organisation (Habich and Nowotny 2019). In case of Shell Plc. the political changes is created
huge impact over the business orientation of the organisation. From the media release of Shell
Plc., it can be derived that the Nigerian government made a negotiation with Shell for
exploration and production of oil. On the other hand, the Brexit issue has been a triggering factor
for Shell Plc. to operate in the European region as there is a growing tension between Britain and
European Union that affects the business of Shell Plc. as well.
Cultural diversity
According to the research of Endong (2018) cultural diversity is considered to be a
potential factor for the business companies in order to set sustainable development. The cultural
diversity practice provides a clear picture of the stand of the organisation either for or against
discrimination. In case of Shell Plc., the company is strongly focuses on the diversity and
inclusion practice. From the sustainability report of the organisation, it can be found that the
management also interested to support the interests of LGBT. As a matter of fact, focusing on
talent rather than gender, ethnicity or sexual orientation is identified as a crucial factor for Shell
Plc. to establish a strong team. In fact, Balli, Pericoli and Pierucci (2018) opined that it is

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considered to be one of the leading organisational practice to foster talent management in the
competitive market.
Diverse currencies
Fluctuation in the currency rate is a determinant factor for the success of a multinational
company. For instance, in the emerging markets the value of national currency is lower than
international standard of USD. Therefore, the giant companies can get the opportunity to recruit
more people from the emerging markets rather than the developed countries so that enterprises
have to pay less for the labourers of the emerging market than the workers in the developed
market (Dabija, Pop and Postelnicu 2016). Henceforth, Shell Plc. also focuses on the same
strategy of recruiting people from the emerging market. However, it can deliver a threat for the
business organisation in terms of over-dependency on the emerging market. Shell Plc. must keep
in mind of that factor.
Regulatory challenges
The regulatory constraints are referred as vital measures that all the business
organisations must abide in order to facilitate a sustainable business practice. It is also essential
for the business companies to render sustainability in course of achieving sustainability. The
regulatory aspects is divided into the international norms and the national or domestic
procedures. In the domestic market, the regulatory framework depends on the characteristics of
the government. For Shell Plc. the regulatory challenges are mostly related to the environmental
consideration in both the international and domestic market. However, over interference from the
government can bring a significant impact over the business practice of Shell Plc. and it is a
crucial challenge for the organisation.

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Interdependency
As per the research of Yay and Aksoy (2018) it can be argued that interdependency in
international business can be defined from a relationship between the business company and the
government. On the other hand, Woods (2018) pointed out the interdependency is an internal
matter for a business organisation where the role of the organisation is to facilitate an extensive
relationship between the employees and the managers. The interdependency between the two
helps any organisation to enhance the performance and sustainability for the organisation. In case
of Shell Plc. also such interdependency can be seen where the management decides to share the
policies and maintains a transparent communication channel for bringing the employees into the
organisational fold dedicatedly. However, a significant challenge for creating interdependency is
to choose the right communication mechanism to build up strong interdependency.
Critical analysis of the strategic challenges caused by globalisation
Business risk
The most important business risk for Shell Plc. is related to the he environmental
degradation. It can be stated that the organisation is identified as one of the ecology damaging
company. It is a threat for the business and brand image of Shell Plc. In response to this, Shell
Plc. is trying to establish a strong sustainability report which is associated with the process of
rebranding the image of Shell Plc. In fact, the risk creates enough advantage for the organisation
as Shell Plc. is willing to reconstruct the infrastructure and engaging the local communities in
the business practice as a part of facilitating transparency in business practice. According to
Pauwels (2019) business risk is not only create challenges for the business organisation but also
provide advantage for the company in terms of pushing for further development process.

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Diversification strategy
Shell Plc. is very much aware of the social practices and trends in recent times.
Therefore, it can also be seen in its diversification strategy where the management is highly
aspired to include people as per their talent rather than racial, gender and ethnic differences. In
addition to this, Shell Plc. also facilitates its support to the international LGBT movement by
recruiting people irrespective of their sexual orientation (Shell.com 2020). It is definitely a
positive approach carried out by Shell Plc.. However, there are different problems that the
organisation can face in terms of its diversification strategy. For instance, lack of communication
initiative can dissolve the positive measure of diversification strategy. From the research of Le
Coze (2017) it can be derived that one of the biggest disadvantage of futile diversification
strategy is to create distance within the workforce due to lack of communication and
acknowledgement regarding the different cultural prevalence. Henceforth, Shell Plc. must work
on this to ensure its effective diversification strategy.
Supply chain management
The supply chain of Shell Plc. is associated with importing cutting edge technologies,
materials vendor and other service companies. In this regard, a great challenge has been faced by
Shell Plc. in terms of environmental degradation. From the research of Chen and Wu (2017) it
can be derived that the organisation is suffering with huge challenges regarding its responsibility
towards environment so that Shell Plc. intends to reconstruct its supply chain management by
putting great deal of emphasis over the environment service providing suppliers. The
technologies and materials are also eco-friendly in order to procure an eco-friendly initiative.
However, there are few companies that can provide such kind of services and materials to Shell

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Plc.. Therefore, it is considered to be both advantage and disadvantage for Shell Plc. to focus on
the eco-friendly initiatives.
Evaluation of the global business environment
Advantages and disadvantages of globalisation
It is important to figure out both the advantages and disadvantages that Shell Plc. can
witness in course of developing an effective global empire of business. The external factors are
definitely played crucial role in this regard so that the organisation can influence effectively. In
this process, both the internal practices and the external factors are very important for Shell Plc.
to gain strategic advantage in the competitive market. The advantages and disadvantages of Shell
Plc. in globalisation can help to foster a critical understanding about different approaches and
elements that can inspire Shell Plc. effectively and ensure sustainability of the organisation in
future business orientation.
Advantages
As far as the advantages of Shell Plc. are concerned, it can be defined that the workforce
strength and working environment in Shell Plc. are identified as the most effective advantage for
Shell Plc. to expand its business further in the international market. In fact, Shell Plc. is started
initiating a number of important steps like supporting the LGBT practice in workforce diversity
management strategy. As a result of that it will deliver a good brand image for the organisation
in the global business platform. In addition to this, Shell Plc. is also succeeded to establish a
strong relationship with the suppliers in the competitive market. It helps the organisation to
ensure the continuous flow of supply of materials and develop in a hustle free manner. As per the
research of Reader (2017) creating effective communication and relation with the suppliers will

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definitely help the business companies to deliver better organisational practice in the competitive
market and enhance its sustainability evidently.
Disadvantages
However, there are some potential challenges that Shell Plc. is going to face as a part of
the global business. The first challenge can be received from the national government and
regulations. It is very problematic for the business organisations to tolerate the government
interference in every decisions of the organisation. It is actually challenging the autonomy of the
organisation (Nikolova, Rodionov and Afanasyeva 2017). Moreover, the developing concern for
environmental protection also pushes the governments to create better guidelines for companies
like Shell Plc.. Therefore, it is also identified as a threat for Shell Plc. to maintain a cordial
relation with the government all the time. Besides this, uncertainty in the global economic
situation is also posed great threat for Shell Plc. to survive in the global business. The Brexit
event, trade war between US and China and the Middle East tension hamper the stable business
practice of Shell Plc. and restrict its business operation to a certain measure. As a part of the
international market Shell Plc. has to face all those challenges.
Opportunities of globalisation
According to the research of Yan (2019) it can be stated that the globalisation brings
enough opportunities for the international companies in terms of penetrating into the overseas
market and expand the business further into the overseas market effectively. In response to this,
for Shell Plc. also it is a lucrative opportunity to not only expand the market but also facilitate
enough stability into the business by investing in alternative market. Henceforth, Ayeni et al.

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(2017) pointed out that globalisation helps the business companies to opt for the alternative
market so that it will reduce the risks of relying on one or two markets only.
Challenges of globalisation
The major challenge that the business companies can face is high competitiveness.
Dieuaide (2018) advocated that it is crucial for the business companies to expand the business in
a competitive market and always concern about the unique and creative ideas that can help to
survive in the competitive market. Therefore, expenses in searching for creative strategies often
exceeds the preliminary budget and it will cost damages to the positive mind-set of the
organisation. For Shell Plc. a similar situation can be witnessed where the company can face
trouble while penetrating into the new market. Moreover, extensive interference from the
government can also pose threat for a multination company in terms of overriding its autonomy
in decision making (Woermann and Engelbrecht 2019). For Shell Plc. also it will create problem
to enter into the Nigerian market.
Recommendation
There are number of recommendations for Shell Plc. to foster a better and effective
environment in the international market. The recommendations are as follows,
 Shell Plc. must follow a product diversification strategy in order to survive in the
competitive international market. The product diversification strategy not only helps the
organisation to open up alternative market capitalisation but also develop a strong brand
presence in the international market which is identified as one of the core strategy of
globalisation.

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 Moreover, focusing on alternative energy source is also an effective measure for Shell
Plc. to deliver better organisational expansion strategy. Based on the research, it can be
argued that it is crucial for Shell Plc. to get a strategic position in the international
market. Therefore, focusing on eco-friendly measures are considered to the most
desirable strategy for Shell Plc. to expand its business in the international forum. For
sustaining globalisation in business practice it is mostly desired for Shell Plc. to find out
alternative ways of business options and maintain a balance with the changing needs of
the market.
Activity 2: Scenario based analysis
Influence of globalisation on organisational governance and leadership
Globalisation is a dynamic concept that not only facilitates enough sustainability to the
organisation but also create an effective measure for the business company so that it will able to
maintain its organisational practice efficiently (Santos 2017). Therefore, focusing on the
governance and leadership is crucial to understand and evaluate the existing measure of Shell
Plc..
Organisational governance
The organisational governance of Shell Plc. is focused on sustainability measures and for
this a Board of Committees is also introduced with the name of Safety, Environment and
Sustainability Committee (SESCo). Cohen (2019) advocated that it is a very important aspect for
the business organisations to deal with the corporate governance especially in globalisation.
There are both national and international regulations that the business organisation has to keep
on check so that the responsibility of the corporate governance measure has to be relevant in the

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external factors. In this regard, the SESCo visits different operations each year with the purpose
to create a transparent communication with the employees, contractors and suppliers for
delivering a better community development practice.
Globalisation and leadership
For a better organisational governance it is pertinent to establish strong leadership quality
and style so that it will guide the workforce to the right path of meeting organisational
objectives. Henceforth, the transformational leadership approach is the best option for a business
organisation to deliver better and effective organisational practice where the leader is entitled to
communicate with the management and subordinates and design a plan collectively (Contractor
2017). It will help to meet the interests of the organisation and at the same time respect the
desires and expectations of the employees as well.
Principles of corporate governance
The basic principle of Shell Plc. is to set out responsibilities to the shareholders,
customers, employees, business partners and the society. In other words, it can be seen that Shell
Plc. follows the principle of meeting the expectations of different stakeholders. In addition to
this, it is also incorporated into the corporate governance framework of Shell Plc. is to ensure
integrity and respect for the environment and the local communities. Moreover, the corporate
governance practice in Shell Plc. is also focused on applying equality within the business
environment so that all the stakeholders feel free to exchange their vision with the management
spontaneously.

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Influence of globalisation on organisational structure
According to the research of Chakravarthy, B., Abraham, P.C. and Sorell (2019)
globalisation pushes the business organisations to incorporate changes in the organisational
structure to a great extent so that the organisation can perform as per the demands of the market.
Henceforth, it can be stated that Shell Plc. also corroborates the same concept by facilitating
transparency in the organisational structure. There is an official organisational structure that the
company is practiced but there is enough flexibility among the employees to share their views
and valued opinions so that the organisation can act accordingly. In fact, the management also
encouraged the employees to ventilate their esteemed knowledge for the betterment of the
organisation.
Influence of globalisation on organisational culture
The advent of globalisation creates a great deal of emphasis over the organisational
culture where it becomes important for the business organisations to follow a cross – cultural
management practice which can ensure the recruitment of talented people in the workforce. One
of the major concern is associated with the quality of production and service that are the key
drivers for the success of the organisation (Stefanovska and Tanushevski 2016). Henceforth,
Shell Plc. also practices the same organisational culture with diversity and inclusion
management process so that the organisation is able to welcome talented people to join the rich
workforce of Shell Plc.. Moreover, focusing on the retention of employees is also a pertinent
aspect for Shell Plc. In response to this, the management emphasises on the process of delivering
transparent remuneration structure for the employees.

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Influence of globalisation on organisational functions
The organisational functions also receives great influence by the introduction of
globalisation. For instance, effective communication and proper separation of departments as per
the requirements are the basic characteristics in organisational functions (Rizescu, A. and Tileagă
2017). All the departments are entitled to execute its professionalism and skills at a high level so
the organisation can cope with the high market demand I the international arena. The same
practice is prevalent in Shell Plc. where the management flexible its functions and create a link
among different departments through effective communication strategy.
Ethics and sustainability on organisational functions
Influence of ethics on organisational function
As per the research of Tormo-Carbó, Seguí-Mas. and Oltra (2018) it can be stated that the
role of ethics in global business is a foundation of business practice. It incorporates the process
of principles, values and beliefs that an organisation must follow for fostering better sustainable
business practice. Henceforth, the importance of ethics has become pivotal in the current global
business initiative. Halinen and Jokela (2016) pointed out that the ethical practice falls into three
categories in terms of the code and compliance, destiny and the values of a business
organisation. The purpose of facilitating a code and compliance measure on the basis of ethical
standard is to set the organisational practice to a certain extent that can guide the organisation to
gain strategic advantage. Moreover, the presence of ethics in code and compliance help the
organisation to create a positive organisational environment where each of the employees can
respect and care for others. It is essential for developing the performance of the organisation. In
addition to this, for train the international employees or diverse workforce, ethics play a
significant role by providing equality and integrity among the people irrespective of gender,

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culture or racial difference. Companies like Shell Plc. follow diversity as a core value of the
workforce. Therefore, ethics is highly required to create better organisational practice and
motivate the workforce to perform well and bring efficacy to the organisational practice. Alwi,
Ali and Nguyen (2017) identified that the ethics can help the organisation to create a balance
between the imagination and the reality. The ethical constraints leash the organisation to follow
the right track of operations in the competitive global market.
Evaluation of global sustainability over organisational function
There are certain important and long term impact of sustainability on the global business
initiative. As per the research of Lozano and von Haartman (2018) it can be stated that the role of
the organisation is to not only emphasises on the efficacy of developing a strong workforce or
setting positive intent to operate in the competitive market but there is also a sustainable
development goal that can bring efficacy to the organisational practice. It can be stated that the
sustainability can help an organisation to gain strategic position in the competitive market. The
presence of sustainability in the international business initiative helps the organisation to attract
more customers. As a result of that it has a long term impact over the success of the organisation.
Moreover, Svensson and Padin (2019) advocated that sustainable measures helps the business
organisations to importance the financial performance by getting support from the shareholders
and other stakeholders. The core competent factor for an organisational success is to gain support
and assistance from the stakeholders. Sustainable measures help the organisation to gain the
confidence of the stakeholders by building up trust over the organisation (Rauter, R., Jonker, J.
and Baumgartner 2017). Environmental consideration is also a part of the sustainability measure
that all the current business companies are imbued in its operational objectives. The
sustainability measures help to identify the needs and requirements of the organisation to shape

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its environmental policy. Therefore, it is a very crucial and pertinent aspect for the global
business companies to incorporate sustainability with the organisational practice (Lüdeke-Freund
et al. 2017).
Global market influence over organisational structure and culture of Shell Plc.
McKinsey 7s model on organisational structure
Based on the research of Shaqrah (2018) it can be stated that the McKinsey 7s model can
help an organisation to deliver better performance by identifying the changes in needs.
Moreover, it can be stated that the model also enhances integrity among different resources that
an organisation must possess. The model categorises the organisational resources in two parts.
One is known as the tangible resources or the hard elements and the other part is named
intangible resources, also known as the soft elements (Alam 2017). The hard elements are
comprised of the strategy, structure and the system of an organisation whereas the intangible or
soft elements are identified as the shared value, skills, styles and staff or employees. It is
important for any organisations to acknowledge all those elements and procure an effective
measure so that all the elements can work effectively and in a harmony. For Shell Plc., the hard
elements are well established and providing enough advantage for the organisation to survive in
the competitive energy market across the globe. Nevertheless, there are some issues with the
intangible resources that stall the organisation to acquire strategic advantage in the market. For
instance, lack of shared value and style of working process is not right for Shell Plc. to render
the desired outcome. In response to this, the McKinsey 7s Model will help the organisation to get
enough understanding of the situation and reviewing the existing strategy in order to find out the
actual problem occurs within Shell Plc.. Gökdeniz,, Kartal and Kömürcü 2017 On the basis of
the understanding, it will suggest mitigation strategies that can help the organisation to attain

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long term benefits. Therefore, it can be expected that Shell Plc. can easily draw a recommended
strategy to initiate a better communication system so that interests of all the stakeholders can be
resonated properly. In addition to this, it will also help to deliver an effective operational process
that fosters sustainability properly.
Hofstede’s cultural dimension
The cultural dimension model of Hofstede is an effective tool to highlight differences in
culture across the countries so that the business organisations can get enough knowledge
regarding the different cultural elements and key traits of the organisation (Gökdeniz, Kartal and
Kömürcü 2017). It is important to note that in the global scenario, it is very essential for the
business organisations to have enough knowledge and understanding about different cultural
practices and ethos in different countries so that it will be easier to choose the right strategies that
can put positive impact over the customers to get attracted (Szeto 2017). There are six categories
on which the model compares two or more than two cultures such as power distance index,
collectivism versus individualism, uncertainty avoidance index, femininity versus masculinity,
short term versus long term orientation and restraint versus indulgence (Rabbanikhah, Mousa
Gholizadeh and Alirezaei 2017). For Shell Plc., the model can help to create an effective
organisational strategy that can deliver success to the organisation in the global market. As a
matter of fact, it will also help to set the corporate governance principles and policy codes that
are considered to be the fundamentals of sustainability for Shell Plc..

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Different ways of decision making in Shell Plc.
Decision making in global context
The magnanimity of the global business requires effective decisions making for its
survival in the competitive market. Therefore, the role of the business organisations is to shape
its decision making process in such a way that can provide quality and relevant decisions. The
effective decision making will help the management to facilitate alternative visions and foster
better solution so that the crisis situation can be mitigated effectively. Henceforth, it is very
important for managers to have proper decision making (Reich, Kinra and Kotzab 2019).
Henceforth, there are five ways that a manager can take decisions in terms of the general
consensus where a widely accepted opinion can be made. Voting is the most popular process of
decision making but sometimes the managers rank the alternatives as per the prioritisation. It is
called ranking. Apart from that scoring and multiple votes are also incorporated into the decision
making practice. Finally the Delphi method of interactive convergence can be taken as a
potentially effective decision making method (Ville and Wright 2019). Ain the international
business process, there are five ways to make an effective decision making such as identifying
the problem or evaluating the situation properly, figuring out the potential mitigation strategies,
pointing out the best option, discuss with the stakeholders and implement the decision.
Ways to enter global markets
There are five ways of entry into the international market in terms of exporting, licensing
and franchising, partnership, acquisition and Greenfield venture. Export is the typical way to
penetrate into the international market where most of the firms are expand its business by selling
products and services in foreign countries that are sourced in the home country. On the other
hand, in licensing it is important for the organisation to provide license of selling its product by

22GLOBAL BUSINESS ENVIRONMENT
other sellers or franchise in foreign market (Prakash and Barua 2016). In respect to this, the
parent company is only liable for its product or service. In acquisition, it is important for the
business organisation to take over different companies in the foreign market and capitalise over
the market effectively. Besides this, in the Green field venture, companies establish new and
wholly owned subsidiary in the international market.
Evaluation of the key barriers to globalisation and recommendations
There are some potential barriers for Shell Plc. to continue a successful business in
global market. The barriers are as follows,
 Lack of product diversification where the organisation fails to demonstrate its ability to
provide products different from oil and LNG.
 Reluctance to focus on effective environmental friendly business approach in which
alternative energy source are considered to play a major role.
 Lack of penetration strategy in the global market despite of having operations across 70
countries. The company fails to expand its market further and becomes a subject of
saturation as far as the market is concerned.
 Bereft of balance between the corporate governance measure and organisational
operation where the bottom line of corporate governance is focused on safe and
environmentally sustainable products but the operation does just the opposite.
 Inability to adapt the change in the market trend as people are getting more concern about
the environmental degradation and prone to use alternative and renewable energy sources
In response to this, it is very important for Shell Plc. to follow some much needed strategies
and suggestions. The recommendations are as follows,

23GLOBAL BUSINESS ENVIRONMENT
 Procure a product diversification strategy where the major focus will be set on
renewable energies.
 Reconstruct the aims and objectives properly by including an eco-friendly nature and
encourages the stakeholders to follow the same path.
 Joint venture penetration strategy will be effective for Shell Plc. to explore and
develop renewable energy sources.
 Establishing a strong and transparent communication network can bring harness
between the corporate governance resolution and the operation of Shell Plc..
 Facilitating a detailed change management plan by evaluating the market needs and
demands is recommended for Shell Plc.
Justified recommendation for Shell Plc.
The McKinsey 7s model and Hofstede’s cultural dimension theory help Shell Plc. to take
enough care of the stakeholders and acquire in-depth knowledge particularly of the customers. It
is very essential for not only the survival of the organisation in the competitive global market but
also encompasses relevant strategies that are required for making changes in the organisational
process. The McKinsey 7s model will be more accurate and effective for Shell Plc. to consider
wide range of elements or factors and working on it. On the other hand, Hofstede’s cultural
model will also guide Shell Plc. to shape its corporate governance framework effectively.
Conclusion
In a conclusion, it can be argued that the report clearly discusses the impact of
globalisation in the context of international business. There are certain aspects that the report
evaluates in terms of the external and internal factors that are intrinsically put impact over the

24GLOBAL BUSINESS ENVIRONMENT
global expansion of an organisation like Shell Plc. In response to this, it is highly essential for
the organisation to construct its organisational process and practice as per the global market trend
otherwise it will be futile for the organisation to survive in the competitive market.

25GLOBAL BUSINESS ENVIRONMENT
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