Global Business Environment Assignment - PowerBar

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Analysis of factors which drive globalisation........................................................................1
TASK 2............................................................................................................................................2
P2 Challenges which are faced by organisation while operating in a global environment.........2
TASK 3............................................................................................................................................4
P3 Evaluation of impact of globalisation upon various factors in an organisation.....................4
P4 Influences of ethical and sustainable globalisation upon organisational functions...............5
TASK 4............................................................................................................................................6
P5 Evaluation of different decision making approaches on a global level.................................6
P6 Determination of various routes to internationalisation, inclusion of key barriers................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Business environment can be termed as the condition in which the operations or activities
of an organisation is carried out. This consist of combine form of external and internal elements
which drives an influence upon their functioning in fundamental manner (Apăvăloaie, 2014). The
report will aims on the PowerBar i.e. an American energy bars makers along with produce wide
range of gels, Drinks and Pria bars mainly targetting to the women. Numerous complexities that
are encountered through enterprise when deploying to international level will be recognised.
Lastly, influence analysis of globalisation on strategy and decision making could be recognised.
TASK 1
P1 Analysis of factors which drive globalisation
Globalisation can be termed as the procedure in which communication and integration of
individuals, economy and company of a country with the rest of the international market. In this
context, business directs to expansion of enterprise's economy. This focus over creation of
environment that direct to investment inflow so that profitability and growth can be conveniently
achieved. Enterprise that adopt the techniques of globalisation is promoted through
transportation and advanced technology along with further assistance in economies interlink on
the economical and social grounds. This can affirm that several components which encourage
global deployment of firm (Axelrod and VanDeveer eds., 2014). This is paramount to undertake
each components in the adequate manner so that one can achieve effective outcomes. A brief
explanation of major driver of the techniques of globalisation are discussed as beneath:
Cost: This affirms the amount that has been rendered through the company at the time of
expansion of business at international level. The company before creating the deployment
activities, ascertain the investment of their resources and time to recognise the viability of the
concept as well as the procurement of equipment and machinery investment which are
considered so that international demand level can be attained. Hence, such incurred cost of firm
can be classified on two main grounds i.e. indirect and direct cost. Direct cost consist of rent,
insurance, inventories etc. as it include direct connection with produced unit quantity. On other
side, indirect cost include expenditure which does not consist of any direct connection with the
produced quantity including elements like management, cost of conveyance and personnel etc.
The key essential features is the deployment at international level assists in the achievement of
1

cost efficiency. This whole procedure can aid in creating competitive edge and help portraying
consumer with commodities which are manageable.
Market: This can also be termed as the economy in which an organisation is aiming with
their services and products. Key cause behind the saturation of present market is globalisation
emergence. For instance, firm is operating their activities in UK economy and have managed
decent development. A company don't posses any opportunities of development, therefore,
business select the expansion strategy to the international level to achieve business growth and
profitability (Belás and et. al., 2014). The enterprise require a proper deployment opportunities
into certain market with appropriate marketing and selection strategies in order to get better
incentives.
Environment: This can undertake the most essential two crucial elements which are
political and technological drivers. Both of those elements are considered as the major phase of
globalisation. The liberalisation and commercialisation of economies have conducted relatively
for the company to roam or carry out operations into other country with the commodities. The
company with the assistance of technologies and tools of digitalisation which can launch
themselves in the better market in more significant manner. The state of United Kingdom have
made this more easier for the business organisation to conduct and carry out the process of
production of several different advantages which is catered by them. The other opportunity is
virtual presentation in the country through the assistance of e-commerce etc.
Competition: It can be manipulated as one of the main key driver of the term
globalisation. There are indispensable rise in the inter-organisational competition that carries the
business into launching it at international level. Seth launching activity at global level is further
promoted by FDI's and other interdependencies among countries by the market.
TASK 2
P2 Challenges which are faced by organisation while operating in a global environment
Regardless of size, numerous issues and challenges are encountered through the
enterprise while functioning business at international level (Belás and et. al., 2015). PowerBar is
the company i.e. managing different operations in the UK trade along with Asia and other
nations. Several components that tend to impact on organisation's working in the global market
which are discussed as below:
2