Global Business and Sustainable Development

This assignment delves into the realm of global business and its effects on sustainable development. It presents a comprehensive analysis of various topics such as international business, cultural dimensions, social networking, e-commerce, production planning, consumer behavior, responsible leadership, and the business environment in a globalizing world. The assignment also examines the potential of emerging digital technologies on leadership in global business and the role of social networking in global business environments.

Global Business
Environment

INTRODUCTION
Global business environment can be defined as different external factors that surround the
firms and effects their operations and decision making process. Globalisation also helps business
organisation to involve in exchange of goods, services, data and capital on the international basis
(Alqahtani and Saba, 2013). This is an integration of policies, culture, economies and markets.
Along with this, global business environment consist of organisation in which company carry
their organisational functions on global platform. The present report has been conducted on,
Cameco that stands for (Canadian Mining Energy Corporation) was founded in 1988 by the
privatization and merger of two crown corporations and their headquarters in Saskatoon,
Saskatchewan, Canada. This company operates uranium mines in North America and
Kazakhstan, including McArthur river-key lake which is world's largest uranium procedure. This
report will be discussed about the key factors of cost, market, environment and competition in
global commerce and trade. Along with this complexity of strategic challenges faced by the
organisation with supported examples. Also, discussions have been made on influences of
globalisation on organisational governance, culture and leadership structure. At last evaluation of
ethical and sustainable globalisation and different ways of decision making and various routes of
internationalization including key barriers.
TASK 1
P1 Analyse key factors of cost, market, environment and competition that drive global commerce
and trade.
Global business environment define the reality of the nature of business in the industry. It
is rapidly increasing day by day which is the shape of dynamic trade. As the business growing
rapidly there are some factors which are to be considered while taking the decision of
globalization (IT'S A SUSTAINABLE EVOLUTION. 2018). As the industry is expanding their
business globally therefore, needs and demand of customers, cost of the product and competitors
to the business should be analysed. In the context of Cameco, which was established in the year
of 1988 and deals in the uranium or electricity product which has a huge market base globally.
As the company is a global player so the key factors that drives their trade globally such as cost,
market, environment and competition. The analysis of these factors are given below:
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Cost factors: Investment of the company being increased is the motivation key for lot of
global organizations. The goal for any firms is to get the more profit from the investment done.
The cost at which company is producing their product is the main aspect for any company to be
successful. As in the case of Cameco the company is expanding their business on the global
scenario so the factors that will make their cost of the minimum product will be taken. The
management of the company should identify that which market region is offering them
maximum profit in case of cost proposition.
Market factors: As the present time consumers are well educated and the lifestyle is
changing the way of consumers thinks so the market factor should be taken into consideration
while planning to maximise their business in the global market. The appropriate study of market
is to done by the considering the market determinant. According to this approach should start by
picking the regions and then the countries within the regions. In this customer taste and
preference should be considered while planning to chose the region. As customers are the base
for any firm to be successful. Cameco should also consider or focus on the market factors and
regions in which they should maximize their business before coming in the market.
Environmental factors: The environmental factors includes in various business
environmental issues that organisation faces while expanding their business. These factors
should be properly identified and implemented so that business can grow in the current market of
environment. Some of the environmental factors includes in Political, Economic, Social,
Technological, legal and environmental factors. Cameco managers has effectively analysed these
factors before maximising their business in the global market. This helped them in growing or
enhancing their market share and increasing the profits at higher level.
Competition factors: A company that does not remain forward of the competition risks
their market sustainability. As they are ignoring their competitors which will lead them to loose
their potential market. Competitive companies introduce and upgrade and distribute new
products rapidly rather then the other company. So that this factor should be taken care through
the managers of Cameco as if the rivals or competitors are not considered while planning their
policies then it may lead them to loose their market share. This factor helps them to innovate or
making the new product better then the other competitors or rivals.
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TASK 2
P2 Strategic challenges faced by an organisation.
Strategic challenges means those changes which directly affects an organisation for their future
benefits. It can be internally challenges or externally challenges. In internal environment
challenges includes are changes in human resources or any other resources related to an
organisation (Laudon and Laudon, 2015 ). Whereas, external environment challenges include
are changes in technologies, market demand, financial issues and so on. For example US airline
industry declined because of competition from foreign manufacturer as they were using
advanced and updated technologies. There are following strategic challenges which is faced by
an organisation when they operated their business globally such as:
1. Currency Rate: When an organisation operated their business as a globally the major
problem which is faced by a business is fluctuations in currency rate. For example if a
company is paying US dollars to their supplier and manufacturers whereas they selling
their product in a market where there is a less currency rate then, a company end up with
a low margin or goes in a loss.
2. Communication Problem: Communication is a heart of any successful business.
Communication helps an organisation for making effective relation with their colleagues,
clients and customers. For example if an organisation there is a problem of language
barriers then there is an chances of breaking business deals.
3. Political Risk: When a business works as a globally then they faced political and
economical crises. It is also a very important challenges which is faced by an
organisation. When a government brings changes in their policies, regulation or even a
interest rate then they directly affects a business growth or in their investments. For
example, Facebook company is banned in china, because of security concerns,
government regulations and political interference.
4. Foreign law and regulations: When an organisation works globally then laws and
regulations plays a very important role. In every county they all have their different-
different laws and regulations. Such as in Europe country their is a law of an employees
where they have to provide a minimum 14 weeks of leave at a time of maternity period.
5. Cultural Barriers: It is a process of exchanging, arranging and discussing a cultural
activities through verbal- non verbal gestures and expressions. It is a serious issue for
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companies doing business at international level. As there are employees which belong to
different cultures, customs and values. To overcome this barrier company can learn about
different culture, have open communication system and can appreciate different cultures
. For example, in Greece, when a people nod their head it means they say “no” whereas if
they shake their head then it means they are saying “yes”. So, it creates a big
misunderstanding or a problem in an organisation.
6. Lack of financial control: This is also a major challenge which is faced by a global
companies for managing financial controls on their operations. The major issue of
financial failure is having a poor cash flow and monetary related issues in an
organisation.
TASK 3
P3 Influence of globalization on organizational governance, leadership, structure, culture and
functions.
Organizational governance is a appropriate system in which an organization creates and
implements several decisions and ethical policies (Ramamurti, 2012). Good governance can
helps any organization to achieve their successful goals and objectives in a effective manner.
Structure: It is an integration of frameworks in which an organization makes and
arrange various types of lines of authorities and allocation of rights and duties. In this Cameco
follow matrix structure in their workplace in which there is the horizontal flow of information.
With the help of this structure, company utilizes their resources in a effective way and make their
good decision making process. Organizational structure is mainly affected by globalization when
the company is launching their new business in a new market and selling their products and
services internationally. In this context, it is important for members to increase their knowledge
and hire good candidates who are able to deal with different clients from national or international
level.
Culture: Organizational culture is the sum total of assumptions, values and beliefs.
Effective culture is a framework which leads members to move in correct way and perceive right
thinking. Cameco focused on several tangible and intangible goals and objectives and follows
good culture in their workplace (Simic and Dimitrijevic, 2012). Organization culture is
influenced by globalization when fresh staff are hired from various culture. The company also
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focused on managing shared perspective and work ethics which supports business in managing
challenges which arise due to globalization. The cultural values of company are focused on
promoting equality and diversity among the employees which helps in aligning business
activities in a correct direction.
Leadership: In Cameco, leaders make use of participate type of leadership style. This
helps them in achieving support and assistance from employees. Also, as this is a style which
makes use of motivate as a tool to invite views and opinions from employees. It helps the
company in generating solutions to issues in enterprise as well as creating a sense of loyalty in
them to retain for a long duration of period.
Functions: Main function of Cameco is to develop uranium product that is classic and
committed in the field of provide good and clean products. This is the most important function of
company is to connect with lot of buyers in positive manner which helps the firm in managing
challenges which comes due to maximization of globalization.
Governance: Corporate governance of company is focused on various policies and
practices of corporate social responsibility which helps the business in managing social
responsible practices which decreases the risk and uncertainty due to globalization. Governance
is mainly determined with overall supervision and direction of an industry. An effective
governance can take the firm to get long term success in a dynamic business environment. In
Cameco their high authorities are mainly very much responsible for governance they create
valuable decisions and policies which ensures the accuracy towards their customers and
stakeholders in a effective manner.
Application of McKinsey’s 7S Model on organization structure in Cameco:
McKinsey’s 7S model helps in business organizations on the basis of evaluation of their
internal strategy, structure, values and styles. It comes in the form of hard and soft elements. Its
gives benefits company to improve their performance level and evaluate future changes within
structure of company. Cameco execute this model evaluate effectiveness of their strategies and
improve their performance in a effective manner. There are elements of this model which is
described below:
Hard elements: These are includes in organisation strategy, charts and reporting
statements (Kasemsap, 2014). These elements are very easy to explain and management can
directly affect them. In the context of Cameco there are hard elements that are given below:
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Strategy (Governance): Managers of Cameco have adopted several types of strategies in
order to develop or increase their business operation at global level to achieve more competitive
advantages.
1. Structure: Cameco, executed an organizational structure in which there are several types of
specific departments and divisions like networking, accounting and so on.
2. Systems: It involves in everyday activities in which staff members are engage to get work
done. Cameco, opt different working patterns in which particular required task in done on the
baser of priority.
Soft elements (Culture): Soft elements are little bit tough to analyse and affected by the
culture. It mainly involves in shared values and styles. In the relation of Cameco, there are some
soft elements such as:
1. Shared values (Culture): In this, lot of policies and regulations are explained which directly
influence employees and behavior of management. In Cameco, ethical values are operated which
purpose as welfare of society and does not harm in any manner.
2. Skills: Cameco, according to this human resource department recruit and select effectively
skilled staff who have abilities for work and operates various functions in required way within
organization. Furthermore, company selects those candidates who are enthusiastic and
understand firm's vision in order to work in formative direction with efficient manner.
3. Style: Cameco focus on the democratic form of leadership in which each and every employee
in their company are being equally treated. Leaders in company delegate roles and
responsibilities to their subordinates and colleagues in order to achieve long term goals and
sustainability in a well manner.
4. Staff: Cameco recruits around 19,500 people across the globe and perform their
business operations in lot of countries with various approaches.
Force Field Analysis Model:
This model is implemented to analyses the factors in change management. This model
was formed by Prof. Kurt Lewin. According to this model, there are mainly two factors that are
given below:
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Driving Forces-
There are several factors predominant outside and inside the business organization that
set bringing about changes within the Cameco. In the context of chosen organization, much
factors are determined and given below:
Outdated Machinery: As technology is progressive rapidly and mechanization is taking
place in business organizations at a large scale, this adoptive entity to come up with changes. It is
noted that assets and systems or machinery in Cameco get outdated at daily intervals. Therefore,
it is essential for company to determine and meet with the important changes to secure the
process of production. For this, company can make use of cognitive computing wherein the
major tasks will be performed by work force or driven on machines by labor while the less
necessary tasks will be performed by robots in a good manner (Lee, 2012).
Obsolete Technology: With the changes of time, there have been quick advancements in
technology. This adoptive business organizations ensure their changes of sustainability in
market. In the regard of this, obsolete production machines are being used by Cameco which is
the big reason for delay in manufacturing of products. For this, company can adopt Internet of
things to connect machines via computer or internet to make them carry out work automatically
in a good sense.
Restraining Forces-
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Within the outside an organization, there are definite factors that mostly resist
introduction of changes in entity. In the context of this, there are few factors which associated
with the restrain changes within entity, these are given below: -
Government regulations: This acts as a crucial factor which may hind Cameco to make
necessary changes within the products and processes. Hence, it is needed for company to
determine the restricted areas and defines the ways to bring about the necessary change within
the enterprise. As per the governmental regulations, any social group can make use of Cognitive
Computing or Internet of Things (IOT) only when the management provides satisfactory training
to manpower for the same.
Customers: This can act as a leading factor that can refuse introduction of changes within the
products and systems of Cameco. Thus, it is needed by company to communicate the need of
change to customers as well as stakeholders. Also, it is necessary that equal to training is
imparted to staff so that they can deliver benefits as expected by company while bringing
change. Not all the customers are comfortable in having a conversation with robots to make the
purchase, some require human element to gain important information related to product.
P4 Influences of ethical and sustainable globalization on organization functions.
There are various types of functions in an organization that include, research and
development, finance, sales and marketing and administration (Solomon, 2014 ). In order to
accomplish every overall objectives of organization in best effective way it is important for a
company to initiate positive form of coordination in an organizational workplace as to
effectively conduct functions in best effective way. There are different types of ethical and
sustainable factors of globalization which is described below in descriptive manner:
Influence of ethics on organizational functions
Ethics is mainly related to beliefs and values. It is important for an organization to
effectively evaluate that company have prevailed positive ethical behavior in their workplace in
order acquire more goodwill in a marketplace. This will effectively aid company to raise their
overall rate of market share and maximize their consumer base. It is important for an
organization to opt formative code of conduct in their workplace as assign appropriate roles and
responsibilities to each and every individual as per according to their skills and expertise. In
context with, Cameco which is Canadian base mining industry. In order to stimulate
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organizational goals and objectives in smooth and effective way and serve society managers of
company is required to comply each and every code of ethical conduct and adhere necessary
Restricted substances List(RSL) along with Chemical testing program in order to conduct their
organizational activities in safe and secure way by complying every law which is required and
implemented by government. Cameco effectively ensure that company adheres three main
principles and 10 important commitments by the year 2020 in order to ensure long term
sustainability and profitability. In addition with this, Cameco opted The Shared Commitment”
which is mainly related to stakeholders along with, vendors, suppliers, agents and contractors.
Company also follow human and labour right standards as to ensure long term sustainability and
goodwill.
Influence of sustainable globalisation on organizational functions
Sustainable globalisation is mainly connected with value-centered and principle approach
along with this it is important for an organization to conduct their functions in a way as per
according to law and statutory bodies (Laudon and Laudon, 2015). In context with Cameco,
company operate their functions in a manner as to become market leader in mining industry.
Company effectively analyze various growth opportunities in international market. For this,
Cameo is looking forward to recruit skilled and potential candidates those who can effectively
take organization towards growth prospective.
TASK 4
P5. The different ways through which decision making can work effectively in a global context.
Decision-making process is a time taking and complex function of an organization in
which it is essential for leaders and managers of company to effectively conduct their roles and
responsibilities such as, organizing, controlling, directing, staffing etc. as to stimulate growth of
an organization. While implementing effective technology in the working structure of Cameco
company can effectively frame aims and objectives in a best possible way. Mentioned below
there mainly four ways with the help of which leaders conduct their decision making process:
Command:
In this, leaders of Cameco adopt decision-making without consulting their teams. In
relation with this, company is required to concern with their employees in order to formulate best
decision and stimulate company growth while reducing uncertain risk.
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Collaborative:
In this it is esential for leaders to make decisions in a collaborating way by measuring and
analysing views and opinions of their team. This will benefit Cameco to frame their decisions in
an effective way while seeking alternatives form all team members.
Consensus:
In this factor, leaders select a decision by taking poll. In relation with this, Cameco take
voting from all of their members in order to frame most appropriate decision and manage
organisational functions in both internal and external market.
Convenience:
In this factor, company managers delegate decision-making responsibility to their
workforce in order to maximise their capabilities and boost their morale (Cavusgil, 2014). It will
benefit Cameco to take more innovate ideas from employees.
P6 Determine and articulate various routes to internationalisation an organisation may adopt,
including key barriers.
Internationalisation is continuous process of change whose purpose is integration of
stakeholders and institution into global economy. It refers to increasing trade, relations, treaties,
alliances at international level. There are various international strategies which includes
translational, global and multi domestic. Different approaches are involved in international
strategies to increase efficiency and respond to marketing conditions. This concept is related to
development of of products or services to satisfy customers at international level. Some various
routes of internationalisation of business are discusses below:-
7. Exporting- Export is function of international trade of goods and services which are
produced in one country and bought by someone in another country. This includes two
parties exporter(seller of goods and services) and importer( foreign buyer). It also
involves custom authorities. This is very crucial component for country's economic
development. To enter in international market exporting mode helps company to boost
sales and increase profits. Exporting is way which helps in expansion of bushiness in
international market. When business is exporting there are various key barriers such as
tariffs, export licenses, and export restraints etc.
8. Acquisition- It refers to corporate transaction where one company purchases a part or all
of another company's share, assets and liabilities. It is also known as takeover. It occurs
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when buying company take over 50% ownership in another company. Acquisition is
done to achieve economies of scale, reducing cost, increase in market share and increased
synergy. To enter in foreign market acquisition is best way for expansion in another
country. acquisition can be financed by raising private equity, seller financing, and
equity financing. It plays vital role in management of resources, expansion and growth of
business at international level.
9. Wholly owned subsidiary- it is company which is wholly owned by another company.
The company that owns subsidiary is parent or holding company. Subsidiary can be
limited liability company, corporation or a company. It is a company whose 100% shares
are hold or owned by another company. This mode helps companies to exert full control
over the operations in a foreign nation. Also, it helps in diversification of risk, favourable
tax, and integration of supply chains. The main drawback behind this is that conflicts
arises between subsidiary and parent company.
Key barriers for internationalisation:
1. Language barriers- This is most effective barrier in international market. When there is
expansion of business at international level language can act as a barrier (Black and
Gregersen, 2013). This barrier can be overcomes by simply hiring translators and having
basic knowledge of language of that country in which business is conducted.
2. Dealing with multinational laws-The key barrier while internationalisation of business
is to deal with various multinational laws. Their is vast difference between laws of home
country and international country. These can be overcomes by having proper knowledge
and following required regulations and laws.
3. Dealing with infrastructural issues in different countries- Availability of raw material
in international market is a serious issue. As, it depends on cost factor. These issues
includes availability of labour workforce, logistics issues, and other infrastructural issues.
This barrier can be overcomes by doing proper market survey and than investing at
international level.
CONCLUSION
As per the above mentioned report, it has been concluded that globalisation is a formative
process in which organisations from different countries engage in cross-border transaction in
relation to products, services, capital and economies. Globalisation have its effect on governance,
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leadership structure and capital in various ways. In addition with this, it is important for
organisation to opt appropriate code of conduct in order to formulate effective growth and frame
proper decision-making.
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