Global Business Environment Report

This report analyzes the impact of globalization on CAMECO, a leading uranium producer, covering key factors driving global commerce, strategic challenges faced by organizations operating in a global environment, and the influences of globalization on organizational governance, leadership, structure, culture, and functions. It also explores ethical and sustainable globalization's impact on organizational functions, evaluates decision-making in a global context, and analyzes various routes to internationalization.

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
a) Key factors of globalisation that drive global commerce and trade........................................3
TASK 2............................................................................................................................................6
a) Complexity of strategic of challenges faced by organisations operating in global
environment.................................................................................................................................6
TASK 3............................................................................................................................................8
a) Evaluating influences of globalisation on organisational governance and leadership,
structure, culture and functions...................................................................................................8
b) Evaluating influences of ethical and sustainable globalisation on organisational functions 11
TASK 4..........................................................................................................................................12
a) Evaluating different ways decision making can work effectively in global context............12
b) Determine and articulate various routes to internationalisation and organisation adopt along
with barriers..............................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Global business environment is considered as environment in various countries having
factors exogenous to home country of enterprise that influence decision making on capabilities
and use of resources. It can be categorised into internal and external environment which can be
customers, suppliers, government, employees and more (Zhang and Huang, 2012). With rise in
globalisation, companies are expanding their business globally for increasing profit and
sustainability in market. The main objective of global business environment are to increase
growth, development and satisfaction of employees, providing quality goods and service to
consumers. In order to run in global market, strategy should be formulated in terms of offering
choices to new consumers, facilitates mobility of capital, labour and technology and reallocating
resources. The given assignment is based on CAMECO which was founded in 1988 at South
Africa. It is chemical based and fast growing energy company and expanded business into
Canada, Australia, Gabon, Mozambique. It is considered as second largest uranium producer
which is 18% of world production. This report covers various factors of globalisation which
impact business and strategic complexities associated with operating in global environment. It
highlights about organisation structure, culture, functions and influence of globalisation on
business decision making and strategy with use of theory and concepts.
TASK 1
a) Key factors of globalisation that drive global commerce and trade
Concept of Globalisation
Globalization refers to a procedure through which an individual, companies as well as
government conduct interaction and communication at world wide level in effective and efficient
manner (Wetherly and Otter, 2014). Due to communication and transportation technology,
globalisation has increased which crease opportunities for an individual as well as companies.
Such as by the help of globalisation company able to expand its business at world wide level by
which they enhance their customers base and profitability ratio. Moreover, an individual able to
develop their career in internation market and they also go another country for conducting
studies in effective manner. Globalization also focus or include economical side of the world
such as international trading, foreign direct investment and many more because by this company

as well as country economic status get increased. Along with this and organization also increase
understanding of diverse culture, technology, politics, and many more.
Their are various key characteristics of globalisation such as able to trade of products and
services across borders, increase in movement of funds in effective manner. Along with this
there is also develop company brand on global basis, increase in migration of labour, increase in
economic of company by increase in investment and many more. Like every thing globalisation
also have some advantage and some disadvantage. Advantage are like by globalization an
individual and company able to communicate across boundaries in effective manner, travelling
become easy, understanding of diverse culture increase, customers are getting better products at
cheap price and many others (Voegtlin, Patzer and Scherer, 2012). Whereas disadvantage is
small companies are losing its appearances because of multinational companies. Moreover gap
between poor and richer increased, exploitation of labour is increased in developing countries
and many more. In respect of CAMECO, by globalisation they able to expand their business
operations and functions at global level in order to increase customers base and profitability
ratio.
Driving factors of Globalisation
Their are various driving factors of globalisation which influence an organization
business functions and operations. Some major of theme are explained below in respect of
CAMECO are explained below:
Cost- This driver related to costing which are required in order to expand business at
international market in effective as well as efficient manner. Thus for enlarging company's
operations and functions in worldwide level company required huge amount of capital. This is so
because they have to hire peoples according to requirement, conduct analysis for understanding
culture of respective company, develop products and services accordingly (Tokuoka, 2012). In
respect of CAMECO which is a energy and chemical chemical they required huge amount of
capital in order to analysis market in effective manner. By which they able to know need and
remand of respective company products.
Market- Requirement and need of market place differ from country to country which
influence functions as well as operations of company. This it is necessary for them to conduct
market evaluation and develop product and services accordingly in order to attract more and
more customers in effective manner. In context of respective company they conduct market

analysis in order to identify need and demand of customers related to energy as well as chemical
products. By understanding this CAMECO management able to develop products and services in
effective manner. But it is very difficult for company to conduct analysis of market on regular
basis because demand and requirement of customer change according to need.
Environment- It is necessary for an organization to develop products and services by
considering environment as a priority. For which company develop products and services
accordingly that will not affect environment of country. So that they will use chemical less raw
materials and adopt process which will not affect surroundings or nature. In context of respective
company they will develop as well as adopt process which is appropriate for environment and
surrounding (Simic and Dimitrijevic, 2012). Along with this they also adopt process which
produce low or minimums waste so that their chemical and energy waste not affect environment
or pollutions in any manner. For this respective company also follow rules and regulation which
are develop by government for protecting environment.
Competitors- Working of an organization also get affected due to competitions at a
marketplace. This is so because an organization has to develop strategies and plans to develop
products which is different and unique from competitive company so that they able to gain
competitive advancement. In context of respective they conduct market evaluation on regular
basis so that they able to get updated about trends which are going at a market and then develop
products and services accordingly. By this they able to attract customers on huge ratio that help
CAMECO company in gaining competitive advancement and high profitability. If respective
organization not do so they may face issues related to decrease in consumers demand,
profitability ratio, market shares and many more.
Significance Impact of Digital Technology upon Globalisation
Digital technology refers to a term which is used by an organization in order to consume
resources in appropriate manner in order to create, analyse, collect information and data and
communicate in effective manner through digital technology (Shenkar, Luo and Chi, 2014). For
which a company use software applications, programming and web tools which help in
collecting and managing data as well as information in effective and efficient manner. Moreover
digital technology also positively impact on globalization. This is occur in various ways such as
communicating anyone at any place become easier, company able to manage data in effective
manner, help in developing products and services in effective and appropriate manner, reduce

wastage and many more. In context of CAMECO company by adopting digital technology they
able to reduce their wastage, communication cost and production cost. Along with this they also
able to use resources in effective and efficient manner. Respective company use digital
technology in various form such as for communication,k transportation, managing data and
information, collecting data, conducting research and many more. CAMECO also able to collect
orders and transfer it to another location or country in effective manner by the help of digital
technology.
TASK 2
a) Complexity of strategic of challenges faced by organisations operating in global environment
Strategic Challenges
Strategic Challenges is defined as pressure which exert decisive influence on future
success of business. This challenges can be internal as well as external which can be faced by
organisation that includes changes in need and expectation of consumers, technological changes,
product changes, financial or societal changes, lack of skilled employees and risk (Salvatore,
2015). CAMECO can also face such types of challenges in their business as it is running firm at
global level. Before running business at global level it is very important for CAMECO, to
analyse strategic challenges which can be faced by organisation.
PESTLE analysis of organisation
PESTLE analysis is tool that is used for monitoring and analysing macro environmental
factors which has impact on performance of organisation. Such type of framework is used when
new business is going to start and entering into foreign market. There are six elements of
PESTLE which are described below:
Political Factors- The impact of government and its policy on CAMECO is called
political factors. This includes political stability or instability, foreign trade policy, labour law,
trade restrictions, environmental laws and others (Omar and et. al., 2012). CAMECO has to keep
eyes on government system while operating business at global level and change their policies
with new government. As CAMECO is operating its business in various markets so it need to
manage regulatory practices.
Economic Factors- It mean determinants of performance of economy and its impact on
business and its activities. It includes exchange rates, economic growth, interest rates, inflation

rates. Such type of factors has long term direct or indirect impact on company and its
performance. In order to expand market at global level by CAMECO, strategic challenges can be
faced in terms of quality, exchange rates, financial market. Some factors need to be considered
before entering into market such as quality of infrastructure, exchange rate and others.
Social Factors- It is also known as social cultural factors which involve shared attitudes,
belief of people. Social factors includes age distribution, career attitudes, population growth and
others. CAMECO should analyse market in order to know about taste, preference, of consumer
and produce accordingly before expansion of business in global market.
Technological Factors- It pertains innovation in technology which affect operations of
business and market. It refer level of innovation, research and development, automation,
technological incentives, technological changes and awareness (Kasemsap, 2014). CAMECO
need to use technology for manufacturing product at global level. In order to adopt technology,
organisation should analyse their competitors, methods used by them and product offering.
Environmental Factors- Such factors are important for company when running business
in global level. Due to pollution targets, increase in scarcity of raw materials, carbon foot print.
In order to manufacture chemical production safety of environment is very important for
CAMECO. Due to vary in market, norms and values are totally different from one another.
Legal Factors- In order to run business in global level, it is important for understanding
legal factors by firm. This includes employment, consumer protection, copyright and patent law,
discrimination, antitrust. The chemical products need to be labelled and manufactured properly
in order to gain competitive edge by CAMECO. As manufacturing of chemical need more safety
of health, data protection and consumer protection.
Challenges of globalisation and strategic challenges of organisation
With rise in globalisation, various challenges can be faced by CAMECO that are
described below:
Loss of Cultural Identity- Due to globalisation, foreign culture is easily adopted by many
countries (Kapoor and Sherif, 2012). This can affect way of performing and doing business in
various parts of world for CAMECO as it has to adopt and implement those tradition and culture
for running their business.
Job Mobility- Due to globalisation, manufacturing jobs is shifting from developed to
developing countries. As it creates problems for less skilled employees to find new jobs in

developed countries. Thus, same issues has been faced by CAMECO employees because of job
mobility.
Partner With Globalisation Expert- This challenges is faced by CAMECO in which
experienced staff are taking advantage from others and unskilled, less experienced face issues
and problems (Globalization Benefits and Challenges, 2019).
Western Dominance- If administration does not follow western dominance for
manufacturing products and services then it has to face problems in terms of achieving goals and
objectives in competitive market.
CAMECO has also faced strategic challenges for running their business that should be
analysed. It can be related with change in need and demand of consumers that leads risk,
technological changes and others. In order to get success, enterprise need to analyse each and
every factors for achievement of goal and objectives.
Recommendation to overcome challenges
The recommendation which are given to CAMECO for overcoming challenges are
described below:
 The first recommendation given is to understand importance of values, belief and global
culture. In order to operate business in global context, firm need to know about taste,
preference and demand of consumer and manufacture accordingly for sustainability and
growth (Ismaeel and Blaim, 2012).
 The second recommendation given to CAMECO is to provide jobs opportunities to all
skilled, experience and knowledge employees so that they do not move from developing
to developed countries. This leads in increasing business and economic growth of
country.
TASK 3
a) Evaluating influences of globalisation on organisational governance and leadership, structure,
culture and functions
There is influence of globalisation on governance, leadership, structure, culture and
functions of CAMECO which are described below:
Globalisation on organisational governance

Governance is the system, practices of rules, process which direct firm to direct and
control. This helps in balancing interest of stakeholders of structure like suppliers, employees,
management, customers. With increase in globalisation, it has impact business in terms of
system, rules and structure (Huhtala and et. al., 2014). CAMECO has influence by globalisation
on corporate governance as it helps in promotion of use of resources in proper economic and
administration system. As it forced CAMECO to follow rules, regulation and system for meeting
expectation of society in order to meet need, demand and preference of consumers. The change
in globalisation allow business to use assets in effective and efficient way.
Globalisation on leadership
The globalisation on leadership helps in influencing style of leadership of CAMECO
which is explained through situational theory. Different situations that can arise in organisation
and in that case leaders need to chose best course of action which is based on situational
variables (Ferraro and Briody, 2013). The globalisation leads to dynamic changes in every
organisation and business. As per this theory, leadership styles changes according to situation
and plans should be made accordingly. For example, when leader is knowledgeable, skilled and
experienced then authoritarian style is adopted and when all members of group are skilled then
democratic style is suitable. It is very essential for CAMECO to follow style in order to carry out
task which is influenced by economic process. This leadership style is suitable when there is
alteration in any condition or circumstances.
Globalisation on structure
Market crossing border across the boundaries, which boost-up business and spread in
every different merchandise, services, technology and information. It can explained as an
individual standing nation around the globe to handle through free trade. Globalisation is
beneficial for every country which are less developed, as it raise the standard of every individual
life and gives an impact on betterment in every field. It helps in every corner of market either it
is workers, employees, or any other small scale industries. It regulates work to link the globe in
a single platform. CAMECO, which is the world's largest communicating company or publicity
traded uranium. The globalisation on structure can be vary from one to another which is
explained with help of McKinsey's 7S model. The elements of theory are described below:
Strategy- It applies to maintain a game plan as to get the exact root of a business. It
maintain or build a competitive advantage which help in killing all barriers to achieve success in

life. Strategies are distinct of every new business which maintain a market in developing nature.
CAMECO adopted strategies which can mould according to the dynamic situation of market.
Structure- Structure of a business tells the working culture in an organisation. Way of
communication, formal or informal, delegation of authority etc. CAMECO maintain an effective
and efficient structure to regulate an organization and reflects all operation needs.
Systems- Every new day there is task which a company need to fulfil and maintain a daily
working culture to regulate a schedule. CAMECO work on a interpretative tool which work
according to the need of an organisation (Doh, McGuire and Ozaki, 2015).
Shared Values- It examined a ''superordinate goals'' as a company runs on some values.
It regulates the whole company which follows an appropriate rules and regulation to work
according to it.
Style- Style which a company adopted to work on, as a leadership style regulates whole
team in achieving goal. It maintain all the function which gives strength to work hard and help in
achieving ahead of the pack.
Staff- Employees are the most vital part of an organization as it handles all the working
culture and frame every aspect in achieving desired goal. CAMECO maintain every feedback to
increase its staff efficiency to achieve a given task in an appropriate time.
Skills- Knowledge, creativity, willing power, hard-working nature and way of adopting
things in an appropriate manner is much more beneficial. CAMECO put a competition to brush-
up skills of staff and can get advancement in it.
Globalisation on culture
It is characteristics and knowledge of specified group of people, cuisine, music, religious,
social habits, language (Daim and et. al., 2012). This can influence CAMECO which is
explained with Hofstede's dimensions:
Hofstede's Cultural dimensions- This concept was developed by Geert Hofstede that
are represented with six cultural dimensions. This is considered as tool for cross cultural
communication which describes effect of culture on people and society. The dimensions of this
theory are described below:
Power Distance Index- This represent inequality measure which is accepted and exist by
individuals with and without power. The manager of CAMECO should have power to assign
work to employees as per their post.

Individualism Vs. Collectivism- When task is performed by all members together then
goal and objective can be achieved. Similarly, if individual member of CAMECO do task then
issues may arise and goals and objectives cannot be achieved within given time.
Uncertainty Avoidance- It is circumstance when group member feel anxiety for uncertain
and unknown situations arise in organisation (Compact, 2014). Due to globalisation, decision
making capacity of manager of CAMECO get influenced.
Masculinity Vs. Femininity- It means there should not be any difference among female
and male employees working in firm and both should be provided with equal opportunity.
CAMECO can achieve goals and objectives in effective and efficient manner.
Long Term Vs. Short Term Orientations- It is the association interrelation of current as
well as future challenges and actions. CAMECO should consider both long and short term
orientation for final achievement of goal and objectives.
Indulgence Vs. Restraint- This is degree of freedom which is provided to individuals for
fulfilling their desires. All the employees, manager of CAMECO should perform as per comfort
level in business for effective outcome.
Globalisation on functions
Globalisation on functions helps in providing positive as well as negative impact to
concern. Positive impact of globalisation aid in increasing competition due to foreign investment.
The frequent changes in need, demand, preference and taste of customers want high quality of
products and services (Chand and Tung, 2014). As CAMECO can accomplish economies of
scale with help of large production because of selling products in many countries. Globalisation
assist in increasing merger and joint ventures for large market expansion and match cost
advantage. Similarly, negative impact of globalisation on functions which provide to CAMECO
are because of fluctuation in prices due competition. With gain in globalisation, job insecurity in
organisation arises due to outsource jobs to developing countries.
b) Evaluating influences of ethical and sustainable globalisation on organisational functions
The organisational functions helps to carry out various activities in CAMECO which
leads to achieve goal and objectives of business. Here, influence of ethical and sustainable
globalisation on organisational functions are discussed here. Ethics is defined as morale values,
ethical standards and principle which is required before establishment of business. When there is
operation of business at global level then there is interaction among various culture which arise

in home and host country. As per ethical globalisation, employees working in CAMECO should
be treated equally by manager. The working staff should be given with incentives, rewards,
promotion. The working staff and employees of CAMECO should interact with each other in
ethical way in order to avoid issues and problems (What Are the Functions of Ethics in Business,
2019).
Sustainable development is development of administration that can provide long term
benefits to organisation. This helps in use of latest technology, managing link to global economy,
strengthening decision making and making wider use of market (Cavusgil and Knight, 2015).
This aid in influencing functions of business of CAMECO in efficient and effective manner. For
growing sustainability, different elements should be viewed such as improvement in service of
quality and creating relationship among all suppliers. The next elements is improving human
resource management for change of structure. The globalisation of sustainability is not same for
each and every nations and direction. The one can experience good environment whereas other
faces issues, and problems. Thus, due to high influence of sustainable globalisation in
CAMECO, various changes took place in organisation which helps in achievement of goals and
objectives.
TASK 4
a) Evaluating different ways decision making can work effectively in global context
With rise in globalisation, various decision should be made by organisation to manage
each and every aspect in effective and efficient manner. First, manager of CAMECO should
accept changes which is unpredictable whether it can be domestic or international. For making
decisions with concept of traditional thought can be dangerous decisions for premises. It is very
important for CAMECO to be aware of external changes that can be in national, global, regional
policies and trends of economies level. Decision making in organisation can influence
management and leadership activities which can impact growth, effectiveness, creativity,
success, goal accomplishment in current business (Blodgett, Hoitash and Markelevich, 2014). If
decision are made after proper analysis then goals and objectives can be met easily in effective
and efficient manner. Similarly, if decision at CAMECO are not made as per employees and staff
favour then it can impact business and its activities. As business is running at global market so
decision should be made very carefully which create profit and sustainability for firm and its

activities. Thus, in this way, decision making in organisation work in effective and efficient
manner.
b) Determine and articulate various routes to internationalisation and organisation adopt along
with barriers
Globalisation leads organisation to expand their business at global level. In order to enter
in global market, various routes are available for CAMECO which can be used by it. Some of the
routes to internationalisation and organisation adopt along with their advantages and
disadvantages are as follows:
Exporting- It is the procedure for selling of products and services from one country to
another. It can be classified into direct and indirect (Aoki and Lennerfors, 2013). Here direct
means capital of company focus on economies of scale in production concentrated in home
country with proper established system in order to organise export functions and procurement of
foreign sales. Similarly, indirect is involving export through domestic which is based export
intermediaries and there is no control of exporter in products of foreign market. This entry mode
can be adopted by CAMECO for globalisation in order to achieve goals and objectives. The
advantages and disadvantages are as follows: Advantages- Exporting helps in distribution of surplus income to organisation. This mode
is less risky and costly for CAMECO to adopt. As there is control over particular
selection of market in direct export and helps in fast market access.
 Disadvantages- In order to start up organisation at globalisation, cost incurred is high as
compared to indirect exports. The exporter has no or little control over distribution of
goods and services and exporting with help of intermediaries increases cost to product.
Joint Venture- This is strategy which can be used by CAMECO for entering into foreign
market with joining hands and sharing of ownership and management with other company. Such
type of entry mode is used when both companies want to achieve common type of objectives and
expanding operations at international operations (Zhang and Huang, 2012). Here, common
objectives can be risk and reward sharing, technology sharing, foreign market entry, joint
product development and conforming to regulations of government. The advantages and
disadvantages are as follows: Advantages- Such type of internationalisation helps in optimum uses of resources,
technological competence and both companies can learn from each others.

 Disadvantages- The barriers of joint venture can be costly, conflict among members and
countries. Due to political stability and cultural can pose for threat to successfully
operations of organisations and conflicts in managements.
CONCLUSION
From above report, it can be concluded that globalisation has various impact in business
and its operation at global level. The cost, market, technology and competition are factors which
influences business in globalisation. In order to expand market, it is very important to analyse
PESTLE to know about its market, competitors, economic and others. Different strategic
challenges can be faced through globalisation in terms of growth, sustainability and more. For
globalisation, proper ethical principles and sustainability should be followed in business in order
to gain competitive advantages. The firm should make effective decision in their organisation for
better outcome and result achievement.

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Online
Globalization Benefits and Challenges. 2019. [Online]. Available through:
<https://velocityglobal.com/blog/globalization-benefits-and-challenges/>.
What Are the Functions of Ethics in Business. 2019. [Online]. Available through:
<https://smallbusiness.chron.com/functions-ethics-business-21404.html>