Global Business Environment and Globalisation: Key Factors Driving Global Business

GLOBAL BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key factors of cost, market, environment and competition that drive global commerce and
trade........................................................................................................................................1
TASK 2............................................................................................................................................4
P2 Complexity of strategic challenges faced by organisation while operating in global
environment............................................................................................................................4
TASK 3............................................................................................................................................5
P3 Influences of globalisation on organisational governance and leadership, structure, culture
and functions..........................................................................................................................5
P4 Influences of ethical and sustainable globalisation on organisational functions..............7
TASK 4............................................................................................................................................7
P5 Different ways decision making can work effectively in global context..........................7
P6 Various routes to internationalisation which can adopt by organisation, including key
barriers....................................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
The term global business environment entails with the reality of a nature of international
trade; it is evolving in a fundamental way which results of numerous forces shaping the nature
and dynamics of global commerce. It can be viewed context of sharing increasingly integrated
environment. In present scenario, every small and large business entity is willing expand their
functional areas into other countries due to technological advancements, intercultural
effectiveness and competitive dynamics as these drivers assists to conduct international business
(Apăvăloaie, 2014). Along with this, engaging in businesses growing profits needs organisations
to consistently define themselves as a global traders in this globalised world. The present
assignment is based upon Granite Properties which is real estate small enterprise in UK; now the
firm wants to enlarge its business at international level and for the same they are required to
analyse all essential of external environment. Although, it will also define the key challenges that
are faced by a enterprise. Furthermore, readers will also come to know about impact of
globalisation on organisational governance and leadership at global context.
TASK 1
P1 Key factors of cost, market, environment and competition that drive global commerce and
trade
The global business environment consists with the environment in several nations with
elements exogenous to the domestic environment of business organisations that can influence
decision making on resources use and capabilities. Here, several factors which have a huge
impact on maintaining business at global level in large context. It is necessary for managers to
determine these elements and then develop strategies to control them so as to operate business
activities in suitable manner (Axelrod and VanDeveer, 2014). Employer of Granite Properties is
going to spread its business activities United states. For this purpose, firms are required to
formulate policies and strategies which enables to compete with all external forces.
Granite Properties is a small business unit which deals in real state business by having a
revenue of $153.3 million. There are over 143 employees are currently working with the
company. In addition, new hiring in this commercial real state manager are paired with a tenured
field buddy who provides them tours for firm's properties. Along with this, the prime objective of
this business is to deal with commercial clients as well as general residential as it deals over the
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property spectrum. The Granite properties mainly sells luxury homes, agricultural properties and
offices etc. In order to positioning itself in market, small business can attract their clients who are
looking for a certain type of property. The company is trying to expand its business in US with
an aim to gain high competitive advantage.
Henceforth, to demeanour business at global level, there are certain requisite constituents
that must be considered by the management which defined as beneath: -
Competition – As the organisation is going to enlarge its business in global environment
and there are several rivals who are operating their business in similar industry. Therefore, in
order to manage such competitiveness and remaining successful employers have to focus on new
and innovative products; it results attaining and retaining customers for long term period. In
addition, Granite Properties can also acquire latest technologies which able to generate high
quality products in order to enhancing market share of the firm. The nature of an economy,
society as well as cultural is totally differ from each other which hinders affiliation (Belás and et.
al., 2014). As the mentioned organisation is expand its business in United states, thereby it needs
to analyse the main competitors which might be affect working activities and practices.
Circumstances in trading at international market are getting lesser because here are tend people
are acquiring new tools and techniques. This can aids a firm to do business in more effective and
efficient manner. Along with this, assessment of market competition also helps to modify
business principles as per the time changes to grab attention of target audiences. Furthermore,
US is a rising nation so as regulatory bodies promotes promote FDI which supports MNCs to
become successful.
Cost – It is considered as one of the most important factor of globalisation which should
be determine timely. As a small business owners, they are required to prepare certain pricing
strategies and policies to respond towards target market. Thus, there should be provided
qualitative items at lower rates to people in order to grab the attention of target audiences; it also
enhances sales and profitability of the firm. Thus, it can be said the pricing policy of an
organisation helps to improve the client base of companies as they can easily gain high
competitive edge. However, cost decisions are also based upon investment returns that will
highly affect value of products and services in direct and indirect manner (Belás and et. al.,
2015). While considering costs, managers also have to recognise income level of people, it
means whether people of specific nation are able to huge money to purchasing goods.
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