Challenges of Globalization in a Global Business Environment

5 LO.2 6 PESTLE Analysis of CAMECO 6 Challenges of globalization 8 Recommendation to overcome the challenges of globalization.8 LO.3 9 Structure, culture and governance of the organization.9 [Source :McKinsey 7S Framework, 2017]10 Ethical and sustainable globalization effect organization. [ONLINE] Available through :https://www.toolshero.com Strategy> 16 Introduction LO.1 Globalization is a process that different country, companies and government interact with

GLOBAL
BUSINESS
ENVIRONMENT

Table of Contents
Introduction .....................................................................................................................................4
LO.1 ................................................................................................................................................4
An explanation on the driving factors of globalization...............................................................4
Significant effect of technology upon globalization....................................................................5
LO.2.................................................................................................................................................6
PESTLE Analysis of CAMECO..................................................................................................6
Challenges of globalization..........................................................................................................8
Recommendation to overcome the challenges of globalization..................................................8
LO.3.................................................................................................................................................9
Structure, culture and governance of the organization................................................................9
[Source :McKinsey 7S Framework, 2017]....................................................................................10
Ethical and sustainable globalization effect organization..........................................................11
LO.4 ..............................................................................................................................................11
Different ways of decision making effect global business........................................................11
Different routes of entry in international markets......................................................................12
Conclusion.....................................................................................................................................14
McKinsey 7S Framework. 2017. [ONLINE] Available through :<https://www.toolshero.com ›
Strategy>........................................................................................................................................16

Introduction
LO.1
Globalization is a process that different country, companies and government interact with each
other. It also increases through improve in transportation and communication so both are helpful
in increase trade. So many countries work together and helps each other through production,
consuming, similar goods etc. so globalization majorly contribute in world trade. Through this
political, cultural and economic relation improve with different countries and it also helps in
increase economy of country (Aithal, 2016). CAMECO is mining company that founded in
1988 and it headquarters located in Saskatchewan. In this company many employees engaged
and it main product is uranium and electricity. This presentation will be cover that factors of
globalization , impact of digital technology on globalization, PESTLE analysis of organization,
challenge and overcome.
An explanation on the driving factors of globalization.
Many types of factors that operate and drive globalization. It means that factors that
connect and improve trade and interact between different countries so its helps in develop unity
and it helps in increase globalization. So factors like cost, markets, environment and competition
that all these factors helps in increase and drive globalization.
Cost :- cost is a major factor that increase globalization because all import and export and
all trade are depends on cost. It also include that investment cost because many foreign company
want to get large investment. Imports and export of product and services is increase and decrease
according to cost. Cost like tax, exchange rates, transportation and communication so all things
is included in cost. Because if tax rate decrease so CAMECO has to pay low tax and it can
increase their export of uranium and product. If exchange rate of increase so it also helps in trade
with each other is helps in increase globalization. If transportation and communication cost of
organization decrease so it also helps in increase trade and import export of goods and services.
All over that if organization cost of production, supply and other cost decrease so
organization has opportunity to increase their trade and if cost is increase so it reduce trade. So
cost is important in drive globalization (Hirst, Thompson and Bromley, 2015).
Market :- it is also a driver of globalization that increase interaction and trade between
different countries. Because consumers is very advance and its lifestyle, income and aspiration
also high. Many marketers available in market of different countries that find customer of high

purchasing power and well proper developed so it helps in increase globalization. In
globalization Cameco cover maximum countries in world. That means if organization enter in
global market so kit evaluate and take decision about spend of resources in markets that it give
return with profit (Shareef, 2016).
So market is very important driver of globalization that helps to organization for invest
and spend their resources and helps in get idea about market and customers present in different
market of different countries.
Environment :- it is also a major factor that drive globalization because day by day
wealth and mobility of customers is increase and technology like mobile, social media and
internet is also provided benefit to globalization because much information is share through
technology across the border of different countries. CAMECO also adopt advance technology so
it helps in communicate easily on global level. So through this environment of trade on global
level is very helpful for organization because customers get information about new products
through technology and then create demand so it also increases globalization. So it creates
opportunity also for organizations that for increase their products and improve it for attract
customers of global level.
Competition :- through these factors' globalization get more contribution and it drives
systematically. Because in present time every organization increase their product and innovate
new product day by day for export at global level. In present time competition increase very fast
and every organization work for upgrade, introduce and distribute new product. In competition at
global level CAMECO increase their popularity and also take care of their customer's demand
that helps in beat competition. It is a opportunity for every organization who include in global
market. Because through this profit is easily earned by them and it also helpful in increase
globalization (Crane and Matten, 2016).
Above factors are drivers of globalization that helps ion drive and operate to global
market. So CAMECO also include in globalization that it also evaluate and affected through
cost, market, environment and competition. So all drivers are affected organizations and markets
of different countries.
Significant effect of technology upon globalization.
Technology put great impact on globalization because day by day technology become
advance so it reduces cost of transportation and communication. Through technology people

smartness is also increased day by day so its helpful for people because they get information
about any product of any country and then demand of product according to need that helps in
increase sales and profit. It put effect globalization. Technology also helpful for developing
countries through globalization that improve productivity and profitability and it also improves
to developing countries that develop globalization. Because technology reduce cost and time of
productivity and it develops quantity of productivity and through this improve export and import
at global level. So it effects on economy and through this standard of living of people also
increase (Li, 2017).
LO.2
PESTLE Analysis of CAMECO
PESTLE analysis refers to the term that identify the external factors of the company. It
includes political, economic, social, technological, environmental and legal factors . These
factors affect the working of the company (pestel analysis, 2019)
Political factors
It includes tax policies, foreign trade policy, labor law, environmental law and trade
restrictions.
Cameco corporation is doing business of uranium in many countries and may suffer from
business risk and political systems of the country. Political instability can influence the working
of the company. Pricing regulations are different in different countries that affect the cameco
company's pricing strategy in the market. Safety regulations of countries are different so that can
affect the Cameco company. Tax policy will also affect as in the domestic market the tax policy
is different and in the international market it will different that can have impact on the cameco
corporation (Aithal, 2017).
Economic Factors
It includes inflation rate, interest rate, foreign exchange rate and unemployment rate. The
company is depended on the economic system of the particular company. If in the country people
are not educated then there is unemployment in the country and the cameco company is not
getting labor to work. Cameco company requires skill workforce to do work in the company but
because less education skilled workforce is not working. Inflation rate also affect the purchasing
power of the consumer as if the rates are high the consumer will not buy the product. If the

countries GDP is not good then it will affect the economic growth of the country as well as of
CAMECO corporation (Sarwar, Ramachandran and Hosseinian-Far, 2017).
Social Factors
It includes social norms, customs and values of the people working in the company.
CAMECO corporation will be affected by the lifestyles of the country as different countries have
different lifestyles and attitude. The culture of the country also affect the working of the
company. AS in international market the people have different luxury interest as compared to the
domestic market. In international market people are willing to spend the money but in domestic
market people does not invest much money in purchasing the product.
Technological Factors
It includes innovation. Automation, research and development activity and the
technological changes in the market. Entering into the global market is the biggest opportunity
for the business to change the technology as its difficult to adopt the country's technology easily.
It also affects the value chain structure of the company as different companies have different
rules and for establishing the business in the international market the CAMECO company have
to change its business operations.
Environmental Factors
It includes ecological and environmental aspects that includes weather, climate,
environmental offsets etc. Weather of the country will affect the working of the business. As
CAMECO is the metal industry sometimes it will affect the functioning of the company and also
affect the transportation facility of metal from one country to other. As CAMECO establishes its
market internationally then there will be different rules regarding the pollution control in the
country that affect the company's operating cost. Use of chemicals in manufacturing of the metal
that will lead to pollution in the country and the government has restrictions on polluting the
environment that affect the CAMECO corporation (Telò, 2016).
Legal Factors
It includes specific laws such as discrimination laws, employment laws, consumer
protection laws and health and safety rules. There will be health and safety rules such as

polluting the environment will have to pay the penalty so CAMECO have arrangements of not
polluting the environment. The
Company cannot manufacture any product without its license as license will be there to
manufacture the product in the country. CAMECO has no right to share its data to other
company or with person who is not an employee of the company.
Challenges of globalization
There are many challenges of globalization such as:
Firstly the challenges are faced by the government as after globalization the tax policy has been
changed by the government as there will be easy export and import of goods after globalization.
The government have to implement the new tax policy in the country that is the biggest
challenge for it. Adopting the new tax policy in the country is also a challenge for the public and
its difficult to impose new trade policy on the export and import. Instability in the country also
leads to the another challenge for the country after globalization as if the country's situation is
not stable then it will difficult to accept the changes in the country. It increased the global
competition in the country that will impact on the wages, employment practices and the
environment (Aithal, VT and Kumar, 2016).
Globalization can have an impact on the economic structure of the country. As after
globalization its difficult to change the economic structure as per the global market.
Unemployment in the country is also the biggest challenge after globalization. Cultural
differences is also the challenge for the country to do business after globalization. As resources
are limited in the country so its difficult to survive in the global market. Doing business in the
global market is itself a big challenge faced by the companies as adopting the rules and
regulations of the country is difficult. Gender inequality is also the challenge in doing business as
in some countries there are differences in the working of the women and men as women are not
allowed to work (Payne and Askeland, 2016).
Recommendation to overcome the challenges of globalization.
Reducing the cultural differences between the countries helps in overcome from the
challenges of globalization. There will be proper availability of resources and supply chain
should be their to so that accepting the globalization challenges will be easy and the company
can survive in the globalized market. As globalization brings the new technology and new ideas
to run the business to overcome from this challenge company have to adopt the new

technological changes that should help company to survive in the global competition. As
company should have to adopt the changes that are being implemented after globalization.
LO.3
Structure, culture and governance of the organization.
Governance of CAMECO :- governance of this organization is very systematic because
board of director provide direction to all managerial work that helps in manage flow of work
properly. Chief executive officer supervise employees so all members of organization do work
under control of it. So all these things helps in make successful business and also make long term
financial returns. Through governance it can make effective decision and it helps in set vision,
mission and objective of organization. So all thing is managed in organization through board of
director.
Globalization effect on governance of organization because it does business on global
level so it has to follow different rules and laws and also pay tax. Researcher of organization has
to face difficulties in research because effect of their trade work or not in other countries so it
also affects (David and Govindasamy, 2017).
Culture of CAMECO :- culture of this organization is well maintained because it gives
priority to safety culture. It provides safety for all employees that helps in motivate to employees
and safety test include marijuana. It workplace also a respectful because in this organization all
employees free from harassment and discrimination because this organization it follows all rules
and regulation. It also focuses of maintain culture that motivate to employees and they feel better
and belonging with workplace. Its employees has opportunity to learn many things because
through culture increase popularity of organization. If good culture present in organization so it
always increases popularity and value in global level.
Globalization also impact to culture of CAMECO because it does business at global level
so it has to produce according to their customers of different countries. It also has to understand
all thing's bout customers and markets of different countries. And this organization do business
at global level so it more focus on consumer culture.
Structure of CAMECO :- structure of this organization is expanding day by day
because it does business at global level so it has to increase their production level for earn
profitability. Through this it has to also expand their department for manage their organizational
work that helps in increase work and productivity.

Globalization majorly effect structure of organization because it has to expand their
business. Because productivity has to increase for export in other countries and it helps in
increase profit but management is very difficult so it has to establish many departments and hire
more employees that consume more cost. But it also increases profitability of organization
(Ravallion, 2018).
Mckinsey 7's model contain seven elements and these all elements increase effectiveness
of organization and these all are internal factors. So it contains hard and soft element that include
strategy, structure and system. Softy elements includes shared values, skills, style and staff. So
all these elements influence to whole organization and its culture.
Strategy means make plan for achieve goal and meet objective and through this
organization make long term strategy. It makes strategy through this that helps in increase
productivity. For make strategy and achieve goal so it has major role because it provides safety
to employees and make respect in market.
Structure of organization make through hierarchy and make chain and its main aim is
expanded business through this because it has goal that cover all world and increase productivity
and profitability (Calabro, 2016).
System means that work process of CAMECO that way of do work and flow of work.
Through this organization also making decision according to system and work of organization
that helps in evaluation and do work accordingly.
Illustration 1: McKinsey 7's modal
[Source :McKinsey 7S Framework, 2017]

Shared value is related to all employees of CAMECO and its behavior as well. It means
that behave of employees at workplace that helps in increase team work and prevent conflict.
Skills is major elements that means talent and efficiency of employees in an CAMECO
that helps in create new idea for increase productivity and improve their product that helps in
develop profitability in organization (Cox, Pinfield and Rutter, 2018).
Style means that management way of making decision that also helps in improve
business of organization and it also helps in lead and supervise to whole organization. It also
helps in increase performance, productivity and culture of organization. So in this organization
management of organization follow democratic style.
Staff means workforce of organization so CAMECO has large workforce that helps I
create many types of new ideas and it helpful in complete task (GUO and GONG, 2018).
Ethical and sustainable globalization effect organization.
Ethical globalization – it includes many factors that affect to organization. It includes
social factors, culture etc and it influences to organization and it performance because CAMECO
do business at global level and with different countries so it has to follow all people of society
and understand their needs and wants as well. If all ethics like fairness, honesty and dignity use
by organization in business so it helps in increase their business and profitability. Many norms
and beliefs also include in globalization. Culture is also different according to countries so it also
creates problem because organization has to follow all things of different countries. It consumes
more cost and time as well as create difficulties in research. But CAMECO follow all ethics for
increase their profitability (Da Silva, 2016).
Sustainable globalization – it helps in integrated to investment, capital flow and
international trade so it helps in increase interaction between different countries related to social,
culture and technology so its helps in increase productivity through establish innovation. But it
also focuses on many factors like labor conditions, environment sustainability and inequality so
it helps in save environment and through this CAMECO has to follow all these factors that
influence their production and profitability as well as performance of organization.
LO.4
Different ways of decision making effect global business.
Decision making in organization put effects on business that it do on global level.
Decision making is very important process that take many types of decision of organization. So

CAMECO has business at global level and its decision is mainly affects to organization. Because
it has to making decision about investment decision, expand decision, policy decision.
So organization has to making any type of decisions so research is very important that
helps in take right decision at right time. CAMECO do business at global level so it has to make
investment decision. Through this it makes plan about invest their capital at global level means
other country so it if it not takes in right way so it may occur huge loss. So this decision impact
to global business.
It also making decision about expand of their business so it has to analyze about all things
of that country like place, markets and culture and customer choice so it helpful in expand
business and making decision. If organization search and find place and markets in different
countries and then take decision so it increases profitability of business at global level (Shapiro
and Stefkovich, 2016).
Policy is also very major decision every organization has their own policy and different
countries has also different policies. CAMECO do business at global level so it has to follow
different policies for do business with different countries. If it doesn't take right decision related
to country and make policies so it affects direct to business at global level.
Strategy decision also affect to business at global level because organization has to make
strategy about work and profitability as well. So it has to research of all things for making
decision like tax related, market target etc so it may occur loss.
Different routes of entry in international markets.
Many methods are present for entry in markets. Through globalization it is very popular
business. So maximum organization do for business enter in global markets that helps in increase
profit and it also provides opportunity for expand business that helps in spread business in
different countries but is also has to follow rules of different countries. Through globalization
technology also increase for develop of productivity. So CAMECO organization also spread
their business at global level. Following are different routes that helps in enter in international
markets for business.
Franchising - it is maximum used in north American that means if company wants to
expand their branches in different countries and markets so through franchising it can do.
Because in this process organization that has strong brand and many customers so it provides

franchise to other who want to do business so it can take from main organization. So it is very
well method of expand business (Hoffman, Munemo and Watson, 2016).
Licensing – it is also a good method of expand business in different country. It is done
through that if organization want to do expand business so it can give right to other organization
for use of right and do same business. Through this many organizations do global business and
increasing productivity and profitability.
Direct exporting – it is very common method for expand business at global level.
Maximum companies use this method for expand their business at global. In this method
organization sent their product out of their home country and also take order than research and
produce product according to customers choice that live in foreign countries. So it helps in
increase foreign currency in economy and it also increases profitability.
Greenfield investment – it is a greatest way that helps in enter in global market. It
means that purchase land in other country than build for do business. So it also has risk for
increase cost and increase risk but it also helpful because through this transportation cost and
communication cost save through this and it also increases technology and new innovations in
organization that helps in increase profit and productivity (Harms and Méon, 2018).
Partnering – it is also a way that helps in enter in global markets. It means that two or
more partners do business of different country and partners of different countries also increase
globalization. So it also helps in share information to each other of different countries and give
idea about export and import of product and services that helps in increase profit and it also
saves cost and time of organization for research of markets in other countries.
Key barriers :-
If organization enter in global markets so many barriers create difficulties in do business. Like
increase cost in markets etc.
Monopolies – it is very major barrier that make entry barrier. It means that it block for entry of
competitors that they enter in markets through use of patents, copyright etc. so in this all over
activity control. And in this situation govt of different countries not allow for expand business
and it makes proper entry and exit barrier (Kopecký, 2017).
Legal protection – poor legal protection is also a barrier that many countries present that it has
very strong rules about protection of intellectual property like copyright, patents and trademarks

etc. so no one take patent and copyright for expand business and it makes barrier. If anyone does
that so it is illegal and also make case on them.
Bribes and corruption – it is a main and major barrier that pool from expand business at global
level because if organization do business in other countries so government and political party
make demand for bribes in huge amount. So through this no one organization wants to spend
their money in business with other country who take bribes and corruption present in country
(Romiszowski, 2016).
Conclusion
From above study it has been summarized that globalization connect many countries
through trade, and interact. So globalization has four driver that helps in increase it. So it
includes cost, market, environment and competition. All this driver is increase and decrease
imports and export and also trade. It also covered that technology affect to globalisation because
day by day technology increase and people use technology in every work. Like mobile, internet
and social media. So it easily gets news about product and services of different countries so it
helps increase demand and also supply of product at global level.
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