Global Business Environment Analysis

This assignment requires an in-depth analysis of the global business environment. Students must examine various aspects such as cultural dimensions, the influence of home countries on a firm's global strategy, the rise of emerging markets and reverse innovation, and the challenges and opportunities presented by e-commerce for SMEs. Furthermore, the analysis should incorporate perspectives on sustainable business practices, green backlash, global city dynamics, and the importance of managing global talent in today's interconnected world.

GLOBAL BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P.1. Analyse the key factors of cost, market, environment and competition that drive global
commerce and trade....................................................................................................................1
TASK 2............................................................................................................................................3
P.2. Explain the complexity of strategic challenges faced by organisations when operating in a
global environment supported by specific example ...................................................................3
TASK 3............................................................................................................................................5
P.3. Evaluate the influences of globalisation on organisational governance and leadership
structure, culture and function ....................................................................................................5
P.4. Evaluate the influence of ethical and sustainable globalisation on organisational function9
TASK 4..........................................................................................................................................10
P.5.Evaluate the different ways of decision making can work effectively in a global context
...................................................................................................................................................10
P.6. Determine and articulate the various routes to internationalisation BMW many adopt,
including the barriers.................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
This documentation defines about to the key factors which have upon the global business
environment in terms of benefits and challenges within particular references to BMW. Moreover,
this study also refer to some essential strategic challenges in context of risk and diversification in
the organisation in terms of effective supply chain management within the business efficiently.
Apart from it, this assignment also describe about to the globalisation influences on BMW
organisation and its function effectively as well. This study determines about to various routes to
internationalisation of BMW firm and some barriers which facing by the business at global level.
TASK 1
P.1. Analyse the key factors of cost, market, environment and competition that drive global
commerce and trade
Introduction of the company: BMW one of the biggest auto-mobile company in the
market. BMW is a national car produces and BMW parts were made at the HQ and just
assembled ain the South Africa factory. BMW compete vigorous in the global market for cars.
The company is at the leading edge of recycling technology and claims to have a regard the
protection of the environment in this and other areas. The company is operating its business
across the world effectively (Wild, Wild and Han, 2014).
Definition Globalisation: Globalisation is concerned about to the term in which
resolution of critical barriers of international program of products and services, capital,
technological and people that make impact on the integration of the world in efficient form.
Globalisation assists the country to make appropriate development in the country by which their
people could live better and sustain their life in more effective manner.
The following factors that drive global business and commerce effectively:
Market factor: variety of market factors are presented here which make impact on the
business in more effective manner. Multiple numbers of people live here and they have different
kinds of test in the market. Similarity of test and needs of each customer assist the business
environment to enhance their business at global level (Werther Jr, and Chandler, 2010).
Moreover, various existing global customers increase demand of sales of product and services
effectively and effective distribution channel of BMW Company in various country increase the
sales of the business effectively.
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Economic factor: Various economical factor also make impact on increment of global
business environment of BMW organisation properly. The company now has been get effective
economic of scale by enhancing proper manufacturing plants and distribution channel across the
world effectively which increase the sales of BMW in the auto-mobile sector efficiently.
Moreover, they have implemented strategic country’s cots at various places in the country
according to the circumstances and situational analysis of the country as well. It assists the
business in order to increment in the sales of the business in more efficient form. Favourable
logistics and effective exchange rate also increase the economic scale of the country efficiently.
Environmental factor: There are several trade policies and tariff barriers presented in
different-different country effectively. BMW now has been expanded its business at various
level around the world and they have made equation with subsidiaries to local companies and
ownership restriction by which the organisation business environment has been expanded at
global level in the auto-mobile sector effectively (Trompenaars and Hampden-Turner, 2011).
Moreover, the legal factor of different –different country also make impact the global business
environment of the company properly. Their control over the technologies in transferred of
goods and services of BMW business entity and their intellectual property of the organisation
also protect the important elements of the business which make assist them to development of
their business in more effective form.
Competitive factor: Variety of competitive factor also make impact on enhancement of
the global business environment of BMW business effectively. The company is implementing
strategic competitive approach of doing business in the auto-mobile sector by which they can
parallel compete their competitors in the market efficiently and increase the profitability of the
business in appropriate form. Moreover, country’s interdependence of environment also make
great impact on the sales of the organisational product and services effectively (Tarique and
Schuler, 2010). The major competitive factor is that, social media also assist the enterprise in
respect to make promotion of organisational product and services across the world effectively
which make great impact on the profitability of the business at various level.
The Globalisation has been made great impact on the profitability of BMW business in the
industry effectively. With the help of globalisation, BMW business now has been expanded its
business product and services at broad level according to the demand and requirements of their
existing customers in auto-mobile sector effectively, they have several challenges and issues in
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the complex competitive market and which make force them to enhance their business at
competitive level, which increase the sales of the business at broad level.
TASK 2
P.2. Explain the complexity of strategic challenges faced by organisations when operating in a
global environment supported by specific example
This is very critical for BMW manager to understand the complex and competitive areas
of the business and make efforts to overcome from that situation effectively which assist the
organisation to get growth in the market more efficiently (.Shenkar, Luo and Chi, 2014). The
complex competitive challenges of the business support BMW organisation internal and external
which enforce the company to make proper development in such areas in which the company can
lay leading role in auto-mobile sector.
International company structure: In order to stand better in the market, BMW
organisation need to be more competitive at global business environment. So they require an
effective organisational structure at global level that should be in a place, from that the
organisation can face all competitive challenged effectively and operate their business at global
level effectively. BMW now has been expanded its business structure at global level and
operating its various plants and outlets in various countries in the world efficiently. They have
major headquarter of the company in Germany, and from there, they operate their business
organisation across the world effectively. They have effective structure of the business by which
the business entity can properly operate its business across the world efficiently.
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Foreign laws and regulations: BMW organisation operating its business in various
country around the world in very efficient form. Manager of the entity need to understand the
local and national laws and regulations of the country effectively and according to them make
modification in their impressive strategy in different country’s at various level in the world.
Various regulations and laws of the country make impact on business operation of BMW at
global level. Country conveys different types of tax frames in the country effectively and have
various employment and labour lows by which they need to make formation in their global
strategy effectively (Schwab, 2010). According to the laws and regulations of the country, the
organisation need to maintain their standard in the auto-mobile market in terms of sustain in the
market more efficiently. BMW organisation is facing this challenges in the global business
environment effectively.
International accounting reporting system: BMW is facing complex issues of
accounting reporting system in the market at effective manner. Global organisations like BMW
faces the challenges of complying with some accounting and reporting necessity in the various
countries at different-different level in which they can operate their plants effectively. Moreover,
the company also have tax compliance is perhaps that is most important factor for the business in
the market. Accounting of the company can present challenging reports to multinational
businesses who might be liable for corporation and tax broad of the country effectively. This is
also big challenge for BMW organisation at global business environment from which they need
to overcome effectively.
Cost calculation and global pricing strategy: BMW manager need to determine the price
of their auto-mobile car product and services effectively and product it at global level which can
make presentation of challenges and by which effective strategy of the business, they can
overcome from the cost calculation issues and global pricing strategy of the business effectively
(Schuler, Jackson, and Tarique, 2011).
Universal payment methods: From the last few decades, it has been seen that expansion
of international e-commerce websites increased effectively. With the assistance of online sites,
BMW has been increasing its sales of various goods and products across the country in effective
form. This is the best way for the corporation in order to sustain in complex market and this is
also one of the big challenge in the market as well.
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TASK 3
P.3. Evaluate the influences of globalisation on organisational governance and leadership
structure, culture and function
Globalisation is one of the major factor for BMW organisation which make great impact
on the auto-mobile multinational industry in order to make development in the business entity
effectively in order to sustain n global competitive business environment effectively. There are
some of essential factor of globalisation which make influence on corporate governance and
leadership of culture of the organisation effectively as following:
The influences of globalisation n governance and leadership in BMW
Corporate governance and leadership: Globalisation is making main influence of BMW
Company at its various aspects of the business operation in the industry effectively. All country
nowadays is making efforts to become interdependent in the world and enhance their capability
to development of corporate sector within the country effectively. BMW organisation also need
to utilise advancement in its information technological factors and reduce the rate of removal of
national boundaries across the world and establish positive relationship with the different
culture of the country which assist the corporation to operate their business in the country in
effective way (Savrul, Incekara and Sener, 2014). Governance and leadership of the company
is also necessary sector of the corporation which reflect not only distinct societal values of
different countries' bout also different ownership of the structure assist the business to use
appropriate governance at the workplace. Moreover, the company need to understand the
various circumstances and competitive situations of the business entity in effective manner so
that each one of them can generate more effective issues to the firm in effective form.
Appropriate governance and leadership of BMW organisation can assist the business to reach to
the leading role player in the industry in proper manner. The major aim if BMW business is that
the business manager need to maintain standard of its activities which ensure the business to
increase its global standard level in the industry more effectively. At the same time the
enterprise leader make decision according to the standard of globalisation in the world, the
leader of the company need to make decision about to the growth of the business in the industry
at more appropriate manner. To accomplishment of the desired goals and objectives of the
business, they must have right structure of the organisation to implement it.
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Organisation structure: Organisational structure must be in effective form in order to
sustain better in the globalise business environment properly. The major goals of BMW is that,
they have to enhance the standardise activities of the enterprise in order to raise their global
efficiency in the world efficiently. At the same time, the BMW Company need to acquire some
impressive exercises of the company in the industry by which they can increase the efficiency
of the business in more efficient form. BMW need to make sure that, they have right structure
of the business organisation in the industry according to modern demand of business which will
enhance the efficiency of the corporation in market relevantly (Sassen, 2016). The company
need to follow effective team structure at the workplace in order to give proper response of each
challenge in the industry at global level. Moreover, effective centralised team structure of the
company which give vital response to issues in the firm. BMW has following centralised
structure approach in the business which is majorly divided into two parts such as headquarter
and regional authority of the company as well. To operate their business from headquarter of
the firm and furnish appropriate instruction to them in order to run their business activities in
several countries in the world.
The influence of globalisation in structure and functions
The functional structure of BMW:
There are some groups of people in the company which is based on common expertise
and they utilise appropriate resources to manage them effectively. The organisational structure
of BMW Company is functional structure and its employees have the structure as per its
departmental function which is functioning in the market more effectively (Rowell, 2017).
Their superior authorities provides appropriate instruction to them regarding to execution of
business activities in relevant manner. Their all team of expertise work according to the
instruction provided by the superior authorities in the company. Their team working have very
positive working culture in their business structure effectively. All employees of the business
work in a group in the organisation sand some of the areas and share their valuable knowledge
among them and support each other in the business which assist the enterprise to perform better
in the auto-mobile industry effectively.
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Divisional structure: The business professionals of BMW organisation has been divided
employees based on the different products and services of the company and according to the
customer segmentation as well. As per the geographic location of the company (Black, Morrison
and Gregersen, 2013). They have divisional structure which is divided into three segments which
is as following:
The international divisional structure:
Product division structure:
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Geographical areas divisions structure: Regional division and headquarter are
responsible for all product and services within the areas of the company. Geographical division
is based on the political borders, cultural similarities and economic realities and logistic
consideration as well.
The influence of globalisation on culture
Organisational culture: BMW organisation also follow its effective organisation culture at the
workplace while functioning its business exercise in the industry efficiently. They have their
management values and principles to manager their all sector in the industry more effectively.
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Moreover, they follow effective working climate at the workplace while furnishing their
existing auto-mobile services in the market properly (Kelley, Singer and Herrington, 2012). The
top management of the business make effort to maintain positive atmosphere at the workplace
and also implementation of ethical standard of the company in effective form so that each of
their employees working efficiently towards the business in the industry effectively. The
business professionals follow proper national culture in the organisation for consider adopting
to different countries around the world. Human resource department of the company follow
energetic culture at the workplace which influence employees to working with more potential in
the firm so that desired goals and objective of the entity can be accomplished within the
industry compatibility.
P.4. Evaluate the influence of ethical and sustainable globalisation on organisational function
Ethics is a moral principle of BMW organisation that govern an employee behaviour or a
system of conducting an activity in the organisation effectively. Ethics is an important aspect of
an organisation which furnish effective values to the business in which they need to follow at the
workplace in order to completion of each work ethically fair at the workplace. Ethics of business
make influence in the business and also employees as well (Griffin and Pustay, 2012). BMW
organisation is operating its business activities at the workplace ethically fair which assist them
to make relationship with each other in the firm effectively and done their task appropriately in
the business. In BMW business, there are various kinds of employees are working who belongs
to different-different culture and countries at the workplace. The business also operating its
various operating in several counties. So their almost employees are belongs to different
religions, the organisational professionals implement an environment in which each employees
of the company feel freedom to work properly at the workplace and top management of tge
business also treat fairly with all employees at the workplace. Ethic also have constitution which
defines that, the business organisation must behave ethically in the firm and superior authority of
the business also need to respect employee’s norms, beliefs and practices etc. the company is not
operating in a vacuum way in the industry but they need to maintain positive relationship with
their all stakeholders in the firm which will increase efficiency of the corporation effectively
(Govindarajan and Ramamurti, 2011). In the globalise scenario of today’s auto-mobile world,
which is becoming more complex year by year and BMW organisation require emerging of
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global group of stakeholder in the industry in order to sustain in the market in more relevant
form.
Ethical dimension of BMW Company:
 All employees of the business must be give appropriate wages and salaries according to
their contact of job in the business effectively.
 According to business ethic, they do not hire child labour at the workplace.
 They must have proper working hour towards the employee in the company which
increase the working efficiency of the organisation effectively.
TASK 4
P.5.Evaluate the different ways of decision making can work effectively in a global context
Strategic planning: Strategic planning is one of they key approach for BMW
organisation in order to making decision process in critical condition of the company at global
business environment effectively. The company need to determine the long-terms goals which
the company wants to achieve in the future effectively. Based in the market based assessment
information, the company's manager can make appropriate decision towards the market in which
they can make relevant development in its decision making process so that favourable decision
can be made within the organisational environment effectively. This is fundamental starting
point for the business by which they can operate their business in the complex industry
sufficiently (Cross and Miller, 2011). The company manager need to identify its appropriate
vision in the market effectively and according to them they need to set up their targets of each
product sales in the industry effectively. The company's professionals need to identify its
competitors strategy in auto-mobile sector effectively and according to them make modification
in their strategy of production and sales of the company in the market which assist the business
to put keep up the organisation in the industry properly.
Decision making process: BMW organisation need to identify the areas in which they
can formulate their effective plan of strategy in more efficient form. The company leader and
manager need to make proper planning of their effective strategy at global level and it must be
unique from its competitors in the market (Fitzsimmons, Miska and Stahl, 2011). Manager of the
company need to identify globalisation level in the world and assess its criteria by which the
company could enhance its strategic planning in the market effectively. The company can make
equation with its local and international auto-mobile partnership which could increase the sales
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of the company at global level. The decision making process of the organisation must have
effective communicational strategies towards the business entity so that its manager can make
modification in them according to modern demand of strategy to sustain in global business
environment. The organisational manager need to consider all these aspects in their decision
making process in order to sustain in globalisation market more effectively and creating complex
competition in auto-mobile sector efficiently. The enterprise professionals need to work
collaborative at the workplace and make potential contribution to completion of marketing
analyse and identify appropriate strategies in terms of sustain in the complex market more
efficiently.
P.6. Determine and articulate the various routes to internationalisation BMW many adopt,
including the barriers
In case of BMW business organisation, they are facing various kinds of barriers at global
level while functioning their effective services to them (Cuervo‐Cazurra, 2011). The business
manager need to identify all critical barriers in the organisation and make efforts to overcome
from them in efficient form.
Routes could BMW use to expand internationally
Collaborative : Collaborative is the way or kind of marketing which process of sharing
resources to enhance the leads, brand awareness and influence market. Internet is the best option
that BMW could adopt before expanding the business into another country with the helps of
social media just make introduce itself into the new market.
Non Collaborative methods : Non Collaborative methods through company can grow
its business into new places. Non collaborative method includes licensees, franchising,
management contracts etc.
Market expansion strategies
Collaborative strategies
Equity arrangements
Exporting : it is the long lasting and best effective developing targets, exporting is the
best technique or strategy to develop new market. It is the easiest to enter an international market
therefore most firms begin their international expansion using this model of entry.
Wholly owned operations : It is the another international strategy market entry system
which is quite costly. Its quite affords the firm maximum control and has the most potential to
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provide above average returns. This is the another strategy to control the other country market to
bring new sources. This is the completely owned by a another company. That company which
holds the another company that is called parent company.
Equity Alliances : This is the another alliances in which two or more than two partial
company that have formed by combining some of their resources and capability to creates the
competitive advantage growth.
Non Collaborative Strategies
Licensing : it is the another effective and affordable style or strategy style which makes
limited rights or resources available to the licensee in the host country.
Non Equity arrangements
Franchising: it is the another mode of entry system which is most effective. This method
is benefited when another holder having good market image and goodwill. This can enhance the
opportunity of sales of the company.
Management Contracts : it is the another entry strategy that helps to make business into
another country. Under which two parties make management contracts for sometime period to
take the business activities.
The key barriers in doing business internationally:
Social and cultural barriers : Social and cultural barriers are the another major factor
that affect the business organization into various manner. Company should needs to follows the
social values and effective developing goals in order to meet out the social welfare needs.
Sometimes, due to fails in adopting the social policies, it can impact on the development of
BMW growth and market value. BMW is now operating is business globally and they need to
make development some of heir activities and global business function which assist the firm to
overcome from critical barriers of the business organisation efficiently. In case of auto-mobile
sector, this is one of the most complex competitive industry in the world. There are several
competitors of BMW company presented here which is giving high level of competition in the
market effectively. The firm manager need to implement strategic approach of doing business at
global level so that business performance might be improved within the business environment
effectively.
Economic Barriers: it is the another conflict or issues that affect the overall industry into
various manner. Low economic development can affect the company sales volume. Besides,
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good economic development can maintained the cystomer buying decision and good sales
volumes as well. This economic factor can affect the business directly or indirectly. This is also
most crucial barrier for BMW organisation in terms of effective development of organisational
activities at global level. In case of auto-mobile sector, BMW company need to execute a lot of
business practices at the workplace in various country in the world and this is most difficult task
for the firm to execute proper activities at all level within the industry effectively. They need to
make efficient development in those areas and implementation of strategic approach to proper
manage of all business practices and also efficiently manage all activities at global level
appropriately (Ferraro and Briody, 2017). At the global level, have faces various barriers like
social, cultural, environmental and legal barriers which can affect the business activities within
the industry in more effective manner. So BMW manager need to ensure that all business
practices is running properly within the industry and efficiently remove all barriers in order to
sustain in the market sufficiently.
Legal and Political barriers : These are the most significant barrier towards the
business when they entered into the new market. Besides, it also affect the business into various
manner of growth and target market opportunity. It also affect the business and long term goals
and best effective decision making approach. Legal and political issues must be according to the
country as per the business requirement.
CONCLUSION
From the above analysis, it is concluded that, BMW organisation is doing its business
activities at global level in more effective way. The organisation is facing strategic challenges at
global level, so that the company need to face all the challenges effectively within the business
environment. The company need to make development in some areas by which the company can
perform well in globalisation environment of the world. Moreover, this assignment also
concludes about the different ways of decision making process by which the organisation make
strategic development in the company in more efficient form.
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