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Global Business Environment Assignment - Clif bar & company

   

Added on  2020-10-04

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Global BusinessEnvironment
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Table of ContentsINTRODUCTION...........................................................................................................................1LO 1.................................................................................................................................................1P1 Analysis of factors which drive globalisation........................................................................1LO 2.................................................................................................................................................2P2 Explanation of challenges which are faced by organisation while operating in a globalenvironment.................................................................................................................................2LO 3.................................................................................................................................................4P3 Evaluation of impact of globalisation upon various factors in an organisation.....................4P4 Evaluation of influences of ethical and sustainable globalisation upon organisationalfunctions......................................................................................................................................5LO 4.................................................................................................................................................6P5 Evaluation of different decision making approaches on a global level.................................6P6 Determination of various routes to internationalisation, inclusion of key barriers................8CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
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INTRODUCTIONBusiness environment is referred to situation in which an organisation carries out itsoperations. A business environment comprises of a summation of internal and external factorswhich carry an influence upon its functioning in a significant manner (Apăvăloaie, 2014). Thisassignment focuses on the operations of Clif bar & company. It is an organisation which isresponsible for manufacturing organic food and drinks in the various parts of the world. Thisassignment focuses on various aspects which emerge as a key driver for globalization. Thevarious complexities which are encountered by an business organisation while expanding toglobal level will be identified. The various factors which influence on organisational structure,culture and functions will be ascertained and evaluated. Lastly, evaluation of influence ofglobalisation on decision making and strategy could be identified. LO 1P1 Analysis of factors which drive globalisationGlobalisation is defined to be a process in which integration and interaction of people,company and economy of a nation with rest of the world. Globalisation in context of a businessleads to economic expansion of an enterprise. It aims to create an environment which leads toinflow of investment so that growth and profitability could be attained. The organisation whichcarry out their operations in numerous countries are known to Multinational organisations. Theconcept of globalisation is generously supported by technology and transportation and havefurther helped in interconnection of economies on social and economical grounds (Axelrod andVanDeveer, 2014). It can be said that there are numerous elements which encourageinternational expansion of an organisation. It is very important to consider each factors in theideal manner so that better results could be achieved. A brief description of key drivers ofglobalisation are as follows:Cost: Cost states the amount which has been paid by organisation while expanding theiroperations at global level. An organisation before carry out expansion invests its time andresources to identify viability of an idea and at the same time investment in procuring newmachinery and equipment are considered so that demand at the global level could be fulfilled.The cost incurred by a business can be categorised on two major grounds such as direct andindirect costs. Direct costs involve insurance, rent, inventories etc. as they involve direct relationwith the amount of units produced. On the other hand, Indirect costs involves expenses which1
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does not carry any direct relation with the quantities produced such include factors such asPersonnel, administration and conveyance costs. The most important feature is that expansion ofglobal level helps in attaining efficiency in terms of cost. The cost efficiency helps in buildingcompetitive edge and helps presenting customer with goods that are affordable. Market: Market is known to be an economy in which a business is targeting with itsproducts or services. The more and more saturation of the current market is the major reason foremergence of globalisation. For instance an organisation is carrying out its operation in theeconomy of United Kingdom and have attained decent growth. Prior to this situation anorganisation does not possess any growth opportunities henceforth businesses chose to expandon the global level to attain a better profitability and growth. An organisation needs a rightopportunity to expand into particular market with right strategies and marketing so that betterincentives could be achieved. Environment: Environment takes into account most importantly two crucial factorswhich are Technological and political drivers. Both these factors are known to be foundingstones of globalisation. The commercialisation and liberalisation of economies have made itcomparatively easy for organisation to venture into other nation with their products and services(Belás and et. al., 2014). An organisation with the help of digital tools can launch themselves innewer market in a convenient manner. The government have made it extremely easy fororganisation to come and conduct their manufacturing processes due to numerous benefit itcaters. A business can be virtually present in the countries through approaches such as e-businesses and e-commerce. Competition: The competition can also be treated as one of the major drivers forglobalisation. There is a significant rise in the inter-firm competition which persuades a businessinto launching their businesses at global level (Belás and et. al., 2015). This action of launchingat international level is further supported by FDI's and interdependencies among nations throughtrade. LO 2P2 Explanation of challenges which are faced by organisation while operating in a globalenvironmentIrrespective of the size, there are numerous challenges which are encountered byorganisation while operating at the global level. Clif bar & company is an organisation which is2
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