Global Business Environment Drivers and Challenges for Globalization

This article discusses the drivers and challenges of the global business environment, using Mr. Biggs, a fast food restaurant based in Nigeria, as an example. It covers the influence of structure, governance, and culture on global operations, ethical and sustainable factors to consider in global markets, and strategic expansion routes available to organizations. The article also applies Hofstede's Dimensions of Culture to demonstrate how organizations are influenced by culture.

Global Business
Environment Drivers and
challenges for globalization

Table of Contents
INTRODUCTION...........................................................................................................................3
Structure, culture and governance within Mr. Biggs..................................................................3
How structure, governance and culture has influenced by global operation and how Mr. Biggs
adapted to operate in global market............................................................................................5
Applying Hofstede's Dimensions of Culture to demonstrate how organisation has been
influenced....................................................................................................................................6
Evaluation of ethical and sustainable factors that organisation has to consider in global market
and how this impacts on decision making in global context.......................................................7
Critical evaluation of the range of strategic expansion routes available to organisation............8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Global business environment means the environment in different sovereign countries that
describe the reality of the nature of international trade. It is mainly categorised into two forms
such as internal environment and external environment. Global business environment is evolving
in a fundamental way due to numerous forces shaping the nature and changes in dynamics of
global commerce (DEAN, and McLEAN, 2021). The key drivers of global business environment
are limited home market, higher rate of profit, political stability, technology and communication,
emerging market, growth in market share and excess of production. There are various challenges
which are faced by global business environment such as language barriers, culture barriers,
currency exchange, inflation rates and managing global teams. The project is based on global
business environment drivers and challenges in globalisation in which structure, culture and
governance within organisation is explained. It also covers the influence of structure governance
and culture by global operation and how company has adapted to operate in global market. A
Hofstede's Dimension of culture is also explained in order to determine how organisation has
been influenced by structure, governance and culture. The project also includes the ethical and
sustainable factors that organisation has to consider in global market and also the strategic
expansion routes Is also explained. The chosen organisation for accomplishing this project is Mr.
Biggs, it is a fast food restaurant which is based in Nigeria. Brand is well known for its red and
yellow schemes and also meat pies. The brand is going to expand their business in London, UK.
Structure, culture and governance within Mr. Biggs
The structure of Mr. Biggs mainly outlines how business activities are directed fro
achieving the goals and objective of business. The activities includes rules, responsibilities and
roles of employees. Mr. Biggs follow Hierarchical organisational structure in which chain of
command goes from top to down and employees have a supervisor in order to provide direction
and guidance (Korka, 2021). By using hierarchical organisational structure, company defines the
level of responsibility and authority within organisation. The structure helps in motivating
employees with chances of promotion and clear career path. It also give employees a speciality
and shows who staff have to report to or whom to talk to about specific projects. Organisation
culture of Mr. Biggs includes the collection of values, practices and expectation that inform and
guide the action of employees. Managing director of company is Derrick Van Houten and

chairman is Larry Ettah. The culture of Mr. Biggs generally defines the structure of company
such as values, psychology and sociology. Mr. Biggs adopts different types of organisational
culture such as empowered culture, culture of innovation, sales culture, culture of safety and
customer centric culture (Zhang, and Hardaker, 2021). The Nigeria brand mainly focus on safety
of employees while preparing for dishes and also ensure that their customer must be satisfied
with the food. Corporate governance of company is to follow the rules and laws due to which
business can be regulated, operated and controlled.
McKinsey's 7s Model
Strategy:
Mr. Biggs generally implements cost leadership strategy in order to attract more and
more customer towards the brand. By using cost leadership strategy, company attracts customer
by offering them food products at low price. It helps in enhancing customer base and also
increases the profitability of business (Upadhyay, Laing, and Dora, 2021).
System:
Mr. Biggs have clearly defined system in which they manager the activities of business in
effective and efficient manner. The manager of Mr. Biggs focuses on managing and monitoring
the performance of company on ongoing and continuously basis.
Structure:
The structure which is used by Mr. Biggs is hierarchical where employees have to follow
the rules and regulation which is framed by superiors. The departments in company is highly
coordinated due to which they work collectively (Mook, and Overdevest, 2021).
Shared values:
Mr. Biggs focuses on changing their standards and norms by involving innovation,
compliance, client satisfaction, discipline and integrity.
Skills:
In order to improve the skills and knowledge of employees, Mr. Biggs provide training
and development opportunity to their staff.
Staff:
There are sufficient number of staff in Mr. Biggs which focuses on accomplishing the
task in effective and efficient manner. There main motive is to increase the profitability of
business and help in gaining competitive advantage (Annosi, Brunetta and Kostoula, 2021).

Style:
The style which is followed by Mr. Biggs is Autocratic leadership in which employees
have to follow the command of managers and superiors.
How structure, governance and culture has influenced by global operation and how Mr. Biggs
adapted to operate in global market
The structure, governance and culture of organisation gets influenced by global
operation. Mr. Biggs also operates their business with another four locations in Ghana. While
working in global level influences every aspect of business. The structure of Mr. Biggs get
influenced while working at global level as they have to establish business in other country and
also hire the right candidate in order to run the functioning and activities of restaurant. A new
structure will be formed while working at global level (Amankwah-Amoah, Khan, and Knight,
2021). The factors which influences the stricture of organisation are strategy, people, technology,
size, environment and managerial perception. Mr. Biggs also works in Ghana which influences
their structure as they have to plan the strategy according to the culture and environment of
Ghana which is located in West Africa. The culture of Mr. Biggs also gets impacted by global
operation as they have to follow the culture of the country in which they are operating in order to
stay away from any criticism and disputes. It is important for brand to focus on the culture of
country in which they are operating or going to establish their business so that they can attract
more and more number of customers towards the brand. Mr. Biggs follows the culture of safety,
innovation, sales and customer centric. They have to frame the strategy in order to boost the sale
in the country in which they are operating or going to operate (Murshed, Rashid, and Nathaniel,
2021). It is essential for company to create culture of safety in order to attract new employees in
Ghana or other country. Staff generally get attracted when they feel safe while working in
workplace. Thus, it is the responsibility of manager of Mr. Biggs to focus on providing safety
gadgets, costumes and other equipments so that workers feel safe while working in company.
Moreover, when structure, governance and culture of company is affected by global operation it
brings various challenges for company which influences the profitability, functioning and sale of
business.
Mr. Biggs adapted to operate in global market by identifying the need and demand of
customer so that they can establish their business and increase the sale in effective and efficient
manner. While running the business at global level, it is important to focus on identifying the

taste and preference of consumers in order to create strong presence in market and increase their
profitability and growth. There are various competitors in global market, Mr. Biggs identifies the
competitors of the market in which they are operating so that they can understand their moves
and actions (Murshed, Rashid, and Nathaniel, 2021). It is important to identify the competitors
in global market by conducting competitor's analysis so that they can plan the strategies to gain
competitive advantage over its competitors. In order to run the business at global level, company
must create a strong and consistent brand culture and also they must focus on offering unique
product in market in order to increase the customer base.
Applying Hofstede's Dimensions of Culture to demonstrate how organisation has been
influenced
Hofstede's dimension of culture is a model which is developed by Geert Hofstede in
order to understand the differences in culture across countries. The theory is used to differentiate
between national cultures, their dimension and assess their impact on business setting. Main
motive of this framework is to determine the dimensions in which cultures vary (Sheth, and
Parvatiyar, 2021). The factors of workplace culture are power distance, masculinity vs feminity,
individualism, uncertainty avoidance index and long term orientation.
Power Distance:
It mainly includes the difference in the work culture according to the power delegated to
employees. Mr. Biggs follows hierarchical structure in which the power is in the hand of
superiors they give command to employees and delegate responsibility. The business is run by
the superiors of company and staff have to follow the rules and regulations.
Masculinity vs Feminity:
Masculinity vs Feminity is the other factors of workplace culture which reflects the
difference between male and female values on the culture of Mr. Biggs. In most of the country,
male employees are dominated towards female counterparts due to which they follow different
policies as compare to other countries. The company must look out the country which gves equal
opportunity to men and female (Yang, Fu, and Zhang, 2021). In Mr. Biggs, females and males
are treated equally, they are paid according to their performance and designation in workplace.
The employees in Mr. Biggs are rewarded and appreciated for their efficiency and performance
and also organisation focuses on increasing the quality of life of workers.
Individualism vs collectivism:

Mr. Biggs must identify the country which follows collectivism society in which group of
people work together in order to achieve the common goals and making business successful in
global market. The brand follows the culture of team work and ensures that their employees must
work together.
Uncertainty Avoidance Index:
It includes the degree to which the members of society feel uncomfortable with
ambiguity and uncertainty. Mr. Biggs prepare their employees to deal with uncertain situation in
the operating country so that they can handle with appropriate manner and take corrective
decision (Amankwah-Amoah, Khan, and Knight, 2021).
Long term orientation:
Mr. Biggs focuses on maintaining healthy and long term relations with their employees
by making them engaged and fulfilling their needs and demand. By maintaining long term
relations, company can attract employees and also they can contribute their productive outcomes
in achieving the goals and objective of business.
Evaluation of ethical and sustainable factors that organisation has to consider in global market
and how this impacts on decision making in global context
The ethical and sustainable factor that must be considered by Mr. Biggs while expanding
their business in London market are code and compliance, laws, social outreach, arise in labour
standards, human activities, corporate social responsibility, religion, environment and corruption.
These are ethical factors which must be evaluated by organisation while expanding their business
in London. In order to establish the business in new market it is important to understand the
laws and compliances of London Market so that they can effectively run the business and stay
away from any legal conflicts. The sustainable factors which must be included by the
organisation are thoughtful and workable strategy, customer centricity, CSR activities, focus on
innovation and flexibility while working (Annosi, Brunetta, and Kostoula, 2021). There are
other factors of sustainability which must be considered by Mr Biggs in order to maintain
healthy and positive environment such as eliminating waste, saving time, eliminating pollution,
recycling and recovering energy. By focusing on ethical and sustainable factors, Mr. Biggs can
create its strong market presence and also attracts large number of customer towards the brand.
When company adopts ethical practices they generate and sustain trust, treat employees fairly
and demonstrate respect and responsibility. The decision making can be influenced by setting the

ground rules for employees. It generally require judgement and interpretation and also a set of
values to set a perception and estimates the consequences of an action. If any laws and protocols
changed in London market it influences the decision making of company. Mr. Biggs have to
frame new strategies and policies so that they can work according to the laws set by London
market.
Critical evaluation of the range of strategic expansion routes available to organisation
Global strategies of expansions is so stressful. In current era, it is becoming more vital
piece for the organisation growth strategy. It is based on the expectation and the research. There
are some of the strategic expansion routes which are being available to the Mr. Biggs which is
mentioned below:
 Adopt a clear product strategy : This is one of the range of strategic expansion route
which is being available to Mr Biggs. It is to develop “leading edge” products which
helps in encouraging a company expand into the new countries and the regions. Further,
in this organisation should have to test their products and services into the target market
to make success and determine if any of the changes are needed (Rehm, Page, 2021).
Then utilization of the oversees in the market in order to monitor new development which
maintain contact and relations with the decision makers and the identified opportunities.
 Partner up: Before staring of the business sin new country, a business can make
partnership with the other companies in order to enhance their profitability and
opportunities. Further, they are partnering best class companies which are having primary
focus in order to recognize the warning signs. Mr. Biggs can use this partnerships in
order to develop their efficiency and attract local customer towards the brand.
 Revenue gain, reinvest and repeat : Company should choose that international market
which could introduce standard products and services in which competition is low. This
will helps the company in free-up extra revenue in order to invest in a product
domestically and should gain market share.
 Go lean in new market : Company should enter in the international market with having
lean approach. This lean approach offers flexibility to fail fast (ROUX, 2021). In this
company can easily learns what is working well, and what is not and make changes
accordingly by understanding the global market. In this local employees will helps in
evaluating of the certain opportunities and continuously repeat the products and service

which can fit into the market. These will helps in getting more information about the
target country and market.
CONCLUSION
Globalisation is now a days is enhancing within the organisation. As many of the
business are going internationally and they are creating growth opportunities for themselves.
This are certain issues which re being affected by business whoa re going international like
cultural change, target market and marketing strategies etc. these issues should be taken into
consideration and for effective cultural behaviour, some of the models are mentioned in this
given report. While going globally, every organisation is adapting new techniques in order to
enhance their target market and creating opportunities for them. Further, they are creating some
of the expansion strategies which could helps them in generating more profits and creating
sustainable growth opportunities.

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