Impact of Globalisation on Organisations

The given assignment requires students to analyze the impact of globalisation on organisations, specifically in terms of its effects on business strategies and operations. It involves conducting a PESTEL analysis to identify present and past trends in the global market, and using this information to plan effective strategies for future course of action.

GLOBAL BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Key factors which drives the global commerce and trade......................................................3
TASK 2............................................................................................................................................6
Complexity of strategic challenges faced by the firms..........................................................6
TASK3.............................................................................................................................................7
A. Influences of globalisation on organisational governance and leadership, structure, culture
and functions. ........................................................................................................................7
B. Influences of ethical and sustainable globalisation on organisation functions. ................9
TASK4 ..........................................................................................................................................10
A. Ways in which decision making can work effectively in the global context..................10
B. Determination and articulation of ways to internationalisation.......................................11
CONCLUSION..............................................................................................................................12
REFRENCES.................................................................................................................................13

INTRODUCTION
The global business environment is the external environment of various countries which
affects the decision and working of the business. This means the environment of the business
which is present in the domestic and international market. There are many factors which
influences the working of the business. These factors are internal and external to the
organisation. There are also some complexities related with the operations in the global
environment. The company taken in this report is CAMECO. Its headquarter is located in
Canada and it basically deals in uranium. The topics which will be covered in this report are
external and internal factors affecting the working of CAMECO. This will include cost,
competition, PESTEL analysis and the impacts and challenges of globalisation.
TASK 1
Key factors which drives the global commerce and trade
Cameco Corporation is the world's largest publicly traded company in the uranium
production. This company is based in Saskatoon, Saskatchewan and founded in the year 1988.
Cameco was the 2nd largest Uranium producer in the world in 2015 with a 18% share of world
uranium production. The chairman of the company is Neil Mc Millian. This firm was established
by the merger of two firms which are federally owned Eldorado Nuclear Limited and
Saskatchewan Mining Development Corporation.
Cost: It is the monetary valuation of materials, efforts, resources, risks, time, etc. in
producing and delivering the products and services. While entering in a new market or country,
Cameco needs to determine the prices of the products along with the economic condition of the
people of that particular nation. If the economic conditions of the people are favourable then
opportunities lies for the company to expand their business operations in that country as due to
the favourable economic condition of people, customers will purchase the products which is
beneficial for the firm in improving the profit and revenue. These prices and favourable
economic condition can drive the global commerce and trade which is a positive impact for the
company in providing the products to the customers of that nation.
Competition: It is the peak point where different companies compete with each other on the
same platform. Competition is a major element for Cameco in order to gain success who is
entering into the global market. Due to the competition, companies will bring new and

innovative products in the market for cutting the competition. This drives the global trade as
Cameco gets the opportunities to provide innovative products by using their R&D division which
will enhance the customer base and profit of the company and Cameco can perform better in the
market in which the business operations are expanding.
Environment: Environment consist of the various internal and external factors like needs
of the clients, demand and supply, social trends, economic changes etc. It assist the firms like
Cameco in determining the business opportunities, required resources, planning etc. The
environment in business includes macro and micro environmental factors.
Environment plays a major role in globalising the business of Cameco. The success and
growth rate directly depends upon the effectiveness of the environment. Factors such as social,
political, economical etc. can impact the Cameco which are discussed below:
Political: Political factors includes political terms and conditions, foreign policy,
philosophy, government ideology etc. which can impact the business operations of Cameco. The
management of the Cameco needs to determine such factors or changes in them for ensuring the
smoothly running of the business operations. For example: When globalising the business in
India, Tesco get the permission from the Indian government as the political condition of the
country was stable at that time.
Economic: These factors includes the economic policies, inflation rate, tax etc. Cameco
needs to determine such factors so that the occurred cost of the company can be reduced for
increasing the profit or margin. For example: Before globalising the business in India, Tesco
determined the lower trade barriers in India due to which company exploited this opportunity for
expanding their customer base and productivity as well as to maintain their profit margin.
Technology: Cameco needs to determine the technology applications, technology
investments, technology in markets etc. for implementing the required technology in the business
activities so that the profit can be enhanced and cost can be reduced. For example: While
globalising the business in India, Tesco implemented the proper communication system in their
stores as India was having low communication costs at that time which provides the opportunity
to Tesco for expanding to India. Also the Bangalore was the hub of technology at the time of
expansion which provides the opportunities to company for forming Bengaluru critical global
technology and business service centre which caters the growth of Tesco in serving the
millions of customers.

Market: Market refers to a place where more than one parties comes and exchange their
product and services with the monetary value. Market consist of large number of buyers and
suppliers which operates their business according to their demand and strategies. It plays an
important part for attracting companies from around the world as if the market is large and
untapped then chances of getting high returns are high. For instance, countries like Australia,
Canada and Kazakhstan has half of the Uranium in the world which depicts that Uranium
producing companies prefers to start their working operation in that places. As they have high
amount of raw materials in low cost which leads to better profitability and sales for a longer
period of time. If raw materials are found easily then their transportation cost will also reduces
which ends up at reducing production cost for company thus high profits. But if market has all
the materials and equipments which requires to conduct the business then competition rivalry
will also high in that places as every companies motto is to acquire high profit so that
competitive advantage would be gain over other competitors.
Impact of digital technology on globalisation
The impact of digital technology is high in expanding the business of an organization. In
case of Cameco, the company is expanding its operations globally. In order to do that, the impact
of digital technology on its operations is shown below:
Securing sensitive information
With the help of digital technology cameco can secure its confidential information from
the intruders. Since company is dealing in Uranium which is a nuclear material, therefore the
information about it should be confidential. The company can use many technologies such as
cloud data protection, data classification etc. With the help of such impact the data of company
can be secured and the operation can be run smoothly.
Improved communication process
Communication is also an important factor which can influence the smooth running of a
business. In case of Cameco, the company can improve its communication strategies with the
help of 128 bit encryption technology. This technology will help it in securing the data and send
it to any platform. Thus the effective communication will help them in running their business
smoothly.

TASK 2
Complexity of strategic challenges faced by the firms
There are various challenges faced by the organisations such as Cameco while
performing the business operations at international or global level. These challenges can acts as
barriers for the company due to which the firm can face problems in performing the business in a
proper manner. Some of the challenges faced by the Cameco while globalising their business
operations are discussed below:
Challenges of globalisation:
 The firm always tried to invest in the value chain and structure of the organisation which
is a time and cost consuming process. This creates a challenge for the company in adding
more areas to their value chain.
 Also different countries has their own regulations and rules for chemicals and uranium
elements which must be followed by the firm while globalising the business. This also
acts as challenge as the firm needs to consider the laws for trading the uranium as it is a
dangerous element which can harm the people.
Strategic challenges
Cameco can face various strategic challenges in the globalisation process due to the
policies, trends of customers etc. which can negatively impact the business operations. Some of
these challenges are discussed below:
 The major challenge is associated with the promotional strategies as the firm needs to
determine the preferences and needs of the customers before entering in an new market.
 Also firm needs to determine the price range of their products which is favourable to the
clients or customers and meets the demand of customers. Cameco can also face the challenge of exporting the products as the firm needs to
determine the laws and regulations of the country associated with the exports laws as the
company is dealing in the uranium products.
Recommendations for overcoming the challenges
Cameco can overcome the challenges of the globalisation by using the recommendations
which are discussed below:

 Cameco needs to use the latest and updated technology in their business operations for
enhancing the performance along with the quality of the products provided by the firm.
Through this, Cameco can overcome the technological challenges.
 Also Cameco needs to determine the culture of the nations in which the firm is expanding
their business so as to eliminate any issues associated with the promotions.
 For eliminating the financial barriers, Cameco needs to determine the cost associated
with the production and other operations for resolving the funds issues.
 Cameco needs to recruit legal expertise for understanding the different rules and
regulations of the country for the use of chemical and uranium in order to comply to
them.
TASK3
A. Influences of globalisation on organisational governance and leadership, structure, culture and
functions.
Mc Kinsey 7s framework
This model was developed by Robert H waterman. This is a tool and technique which
analyses the organisational design by considering seven key important elements. The most
crucial part of this theory is that all the seven elements are interconnected with each other and if
any of them requires any change then the entire connection is changed. This model is applicable
to the many situations and is considered to be a valuable tool. The most important usage of this
are to facilitate organisational change, helpful in implementing new strategies, facilitates the
merger of organisation. Therefore, Cameo will use the above discussed seven key elements and
they are:
Strategy: It refers to a plan of action made by a company to stay competitive in the
market and to attain sustained competitive advantage. A sound strategy is one which can be
expressed in long-terms, is resistant to its goals and can help in attaining competitive advantage.
But it cannot be justified that such strategy can be well-aligned with other elements when
analysed.
Structure: It represents a corporate hierarchy of an organisation in which business
divisions and units are organised. It entails information regarding who is accountable to whom.

In other words, it can be said that structure is the blue print of the firm and constitutes the easy to
change element of the framework.
System: It refers to the daily processes and procedures of the company, which discloses
workflow and how decisions are taken. It refers to that area of firm which will determine how
business should be done and will constitute main focus for managers during organizational
change.
Skill: It refers to the capabilities and talent which an individual have in order of
performing well, these skills helps in determining type of achievements. Sometimes, company
assess its skills and may decide to make changes in order to achieve goals.
Staff: This It refers to the personnel of an organisation, and is concerned with the number
of employees in the organisation and how they are recruited, trained and motivated for the
accomplishment of tasks.
Style: It refers to the way or approach which management takes in development of a
company, as well as how it influence performance and productivity of an organisation. In other
words, it is the management style of company’s leaders.
Shared value: They are at the core of McKinsey 7s model. These refers to the common
accepted norms and standards in the company which will influence and guide the behaviour of
employees and actions of the company and thus, are referred as the foundation of every
organization.
In the globalised world, there are ample of factors which directly or indirectly influence
organisational structure. In Cameco there will be various factors which will have a strong
influence on the organisation and they are like size of the organisation, business development
stage, type of business strategy, environmental turbulence, attitude of person, etc.
Culture is the set of values, beliefs, attitudes and assumptions shared by the employees
within an organisation and contribute to the unique psychological and social environment of an
organisation. It includes experiences, expectations, philosophy and values that guides an
individuals behaviour, and is expressed in individuals self-image, inner workings, future
expectations and interactions with the outside world. Organisational culture can help in
improving the performance of team by providing a satisfied working environment which will
help employees too think better and coordinate with other employees. There are various factors
which can affect the working culture of Cameco, it may be even employees working there. The

attitude, mentalities and interest of different individuals can also affect the working culture of an
organisation. Conflicts may arise when female and male employees are not treated equally.
B. Influences of ethical and sustainable globalisation on organisation functions.
Globalisation and its effects have caused concern all over the world about the path that
society is taking. Traditionally it is seen as an economic happening which is correlated with the
manifestation, expansion and integration of the world-wide market, it has become associated
with areas which are formerly regarded as bearing significance to economic development. In
today's world, globalisation is covering the deepening, expansion and modification at terrestrial
level of the shared links between all facets of community life, from culture to crime and finance
to religion. The world is changing into a single social space, which is shaped by complex
technological and economic forces. There are many new problems and challenges which are
arising daily in society. Events occurred, measures introduced and decisions taken can have
major impact on the lives of individuals or communities in another. The impact of these changes
is so huge and immeasurable that even governments and individuals cannot do anything major.
They can do just little to contest or resist them.
Sustainable human development can be defined as the capability of individuals,
including the most underprivileged, to fulfil their primal needs, of water, food, accommodation,
satisfactory health and hygiene, participation in decision-making, social cohesion, etc. It implies
the adaptation of lifestyle and technologies to the economic, social and environmental potential
of each region, internalising costs and establishing systems that are compatible with the
biosphere. This kind of approach makes sustainable human development a multifaceted process.
It maintains a balance between the economic, ecological and social spheres, by taking into
account of political sphere like democratisation and participation, ethical sphere like solidarity,
social justice, responsibility and sufficiency, and cultural sphere like artistic expression
considerations and local diversity.
It is necessary that environment must exist on the renewal of world governance at the
heart of debate. Multilateral agreements today have had a little impact and are very different,
each one covering a specific area. The issues of environment will be automatically addressed
from a global view and solutions will be founded by involving a wide range of partners and
countries.

Ethical decision-making in business is a discipline which is influenced by various factors,
including the organisational factors,external environment, and society. It is referred as an
approach which is used to identify and resolve various business related issues. Business ethics
plays an important part in successful running of an organisation. In Cameco, business ethics have
changed in the past few decades, as a result of globalisation. However, such changes takes some
time to start to manifest, which is seen in the lag between tangible changes and policy changes in
the approach of intellectual property rights.
TASK4
A. Ways in which decision making can work effectively in the global context.
Every company is affected in some or the other way in global environment. This in turn
affects the decision making of the company as well. There are various factors which adversely
affect the decision making in a Cameco and it will require to taking into consideration a diverse
range of practical adjustments and they are discussed below:
 Business professionals are required to accept that change is unpredictable part of the
business, be it domestic or international. Thus to make future decisions on the basis of
traditional considerations is dangerous. Prior quarters which are impacted by variables
may be different from those who will determine future financials. External conditions
were considered constant in the past scenario, and all the internal factors were used to
predict organizational performance. In the modern world, opposite of this situation is true
for most companies. Companies should be totally aware of all the external changes,
including changes in national, state, global and regional policies and economic trends.
 Formation of any European Community may modify the openness of markets and
production. Immigration will affect the availability,productivity as well as the cost of
labour. To understand which variable is most likely to impact the performance is an
essential step in knowing how these factors can influence decision-making. Empirical
analysis may help as making this determination is not necessarily obvious. One such
decision-making tool includes determination of the relationship between macro-economic
variables and key company ratios over time.
 Managing and establishing successful partnerships and collaborations abroad is a key
aspect of internationalization for many institutions. By maintaining such relationships

helps in providing international experiences for students and faculty, generate revenue,
enhance the curriculum and raise the visibility of the company.
B. Determination and articulation of ways to internationalisation.
Digital revolution in the modern world has made it possible for all businesses to expand
their reach to the international market and has helped in tapping into a segment of capturing
international audience to develop interest in the products and services offered. This global
strategy can lead to long-term success of business. There are various modes through which any
business can expand its services. Cameco can also expand its business in global or international
market by adoption of various exporting expansion routes. By expansion of various routes the
company can export their products. This technique should be developed because Exporting is
typically the easiest way to enter an international market, and therefore most firms begin their
international expansion using this model of entry. Exporting refers to selling of products and
services in the foreign countries which will be sourced from domestic country. By adoption of
this mode of entry, firms can avoid the expenses of establishing operations in a new country. The
distribution and marketing of product in a new country can be done by a contractual agreement
with a local distributor or company. While exporting a product major thought is given to
labelling, packaging, and pricing the offering appropriately for the market. For marketing and
promotion, the firm will need to let potential buyers know of its offerings, which can be done
through advertising, trade shows, or a local sales force. Apart from this there are various
advantages and disadvantages of this mode which are discussed below:
Advantages Disadvantages
 Profit earned is comparatively higher
because elimination of mediators.
 The degree of control is greater over all
aspects of the transaction.
 Since customers know the company
they feel totally secure in doing
business directly.
 It requires more time, energy and
money which is not affordable by
everyone.
 To manage logistics is a difficult task.
 To cultivate a customer base more
power of people is required.

 Feedback can be easily generated by
the customers in regard of the product
to make improvements.
CONCLUSION
From the above study it has been analysed that the working of the organisation is directly
affected the factors present in the global environment. The company needs to take appropriate
actions in facing the challenges in the global market. For doing this PESTEL analysis can by the
company so that future course of action can be done in the effective and efficient manner. The
impact of globalisation can be reduced if the organisation plans the strategies after analysing the
present past trends of the global market. The cost, market, environment and other factors needs
to be analysed in the appropriate and desirable manner.

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