Global Business Environment

Global Business
Environment

Executive summary
The subject matter of this assignment is implication of global business environment and
to get a knowledge about different factors and key drivers of globalisation and global business
trade and commerce. This report includes analysis of various factors like cost, competitive level,
market expansion along with factors of PESTEL analysis to understand how these lead to a
encouragement in organisation for operating at international level. Beside this an analysis of
various strategic challenges faced by an multinational organisation is also made to get the
understanding about how an organisation can tackle these challenges. Along with use of various
made like MnKinesy and Hofstede models are made. Further various findings about different
mode of decision making are also there together with diamond strategy for formulation and
implementation of best strategy. At last, description about various entry routes in international
market are also there so that prober conclusion and recommendation about benefits and barriers
of each route can be made.

Table of Contents
Executive summary..........................................................................................................................2
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
LO1..................................................................................................................................................1
Key factors of market, cost, environment and competition that drive global commerce and
trade.............................................................................................................................................1
LO2..................................................................................................................................................4
Complexity of strategic challenges faced by organisations while operating in a global
environment................................................................................................................................4
PART 2............................................................................................................................................6
LO3..................................................................................................................................................6
Influences of globalization on organizational governance and leadership, structure, culture and
functions......................................................................................................................................6
Influences of ethical and sustainable globalisation on organisation functions...........................9
LO4................................................................................................................................................11
Evaluation of different ways in which decision making works effectively in a global context
...................................................................................................................................................11
Determination of various routes of internationalization for Tufwell Glass..............................13
CONCLUSION..............................................................................................................................15
REFRENCES.................................................................................................................................16

INTRODUCTION
Global business environment basically represent the different sovereign countries with
factors exogenous to domestic environment of an organizations and having the capability to
influence the decision making and management of resource through a company. Global business
environment includes different external and internal factors like social, political, cultural, legal,
etc. which directly or indirectly influence the operations and performance of an organisation (Ali
and Khan, 2019). With the enhancement in the concept of globalisation, better integrations
among economies and culture has established which increase the influence of global business
environment and also yield better opportunity to organisation and grow and expand at global and
international level. This assignment is based on global business environment and the selected
organisations for this assignment is Tufwell glass which deals in shaping and processing of flat
glass. Tufwell is basically a small to mediums sized organisation having its headquarter in
Crawley, England, UK. In this assignment the hey factors which drive globalisation are included
along with strategic complexities associated with operating in global environment. Further, an
evaluation of influences creased by global environment on culture, structure and function of
organisation is also included. And at last, influence of globalisation on organisational decision
making is also form a part of this assignment.
PART 1
LO1
Key factors of market, cost, environment and competition that drive global commerce and trade
Definition of globalisation
Enhancement in global trade and commerces is commonly defined as globalisation which
has increased the integration and collaborations among different economies, culture and nations
thus, lead to more interdependency and better relation among different nations.
Tufwell is a small and medium sized organisation of UK which is having specialisation in
glass processing and sale of glazed partitioning (Berman and Dalzell-Payne, 2018). Beside this,
Tufwell glass also offers a wide range of services to customers including supply of frameless
glazed partitioning and processing and shaping of flat glass. With the help of an experienced
staff and through using state of the art machinery properly coupled with skilled workforce
provided an ability to Tufwell glass to produce high quality glass which has crested a good name
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for Tufwell around the England. Thus, Tufwell is now planning to expansed its business at
global level to earn better sales revenue and profit. The main factors and drivers of global trade
and commerce which are encouraging and motivating Tufwell to operate and expand its business
operations at global level are as follows:
Cost- The main factor that motivates an organisation to plan for having global trade and
commerce is that operating at global level enhance the target market and productivity of an
organisation which aid in meeting the objective of cost efficiency. Tufwell is planning to operate
at global level as it yield better opportunity to attract and cater a larger target market and more
customer which improve the productivity and lead to achieve the economics of scale thus,
improve the profit margin for Tufwell (Hamilton and Webster, 2018). For e.g.: production at
mass level by Tufwell will reduce the cost and prices of inventory as mass purchase are made
from suppliers.
Competition- With the increment in market share and at global business environment the
level and threat of competition rises but bat the same time operating at global level also provide
strength and capability to organisation to have better image and goodwill in minds of customers
as compare to local organisations. Beside this, global trade and commerce also put a pressure on
organisation to have better quality of product so that better competitive strength can be gained at
international level. All theses factors of having better competitive strength and improved quality
of product act as drivers of global trade and commerce which are fascinating Tufwell to expand
its business at international level. For instance: If Tufwell started operating at international level
that its consumer get a message that its product are of high quality as it is facing competition at
global level thus , have better standard and feature as compared to local companies.
Market- The main reason behind planning for global trade and commerces is related
with expansion of target market which is the main driver or factor that encourages Tufwell for
operation at global level (Colpan and Jones, 2019). Increased target market yield more customer
base and enhanced opportunity to have better sales and profitability. For e.g.: expansion of
Tufwell in some new market will improve its market share and customer base through attracting
consumer of that new market.
Use of PESTEL analysis is made to have a deep and effective understanding about the
factors that encourage an organisation for expansion at global level. A discussion about the
various factors and drivers of global business environment that promote global trade and
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