Influence of Global Market on Organisational Governance, Leadership, Structure, Culture and Functions

This report discusses the influence of global market operations on organisational governance, leadership, structure, culture, and functions. It explores the complexities of operating in a global environment and the key factors driving globalisation. The report also examines the impacts of globalisation on decision making and different routes to internationalisation. The case study of Allen Reeder Company, a leading dairy supplier in London, is used to contextualize the discussion.

Global Business
Environment

Table of Contents
INTRODUCTION.......................................................................................................................................3
Key factors which drive globalisation.........................................................................................................3
Key factors driving global commerce and trade......................................................................................3
strategic complexities associated with operating in a global environment...................................................5
Strategic complexity in a global environment.........................................................................................5
Influence of Global Market operations on organisation...............................................................................7
Influences of globalisation on organisational governance and leadership, structure, culture and
functions..................................................................................................................................................7
Influences of ethical and sustainable globalisation on organisational functions......................................9
Influence of Globalisation on organisational decision making..................................................................11
Different ways decision making can work effectively in a global context.............................................11
Various routes to internationalisation....................................................................................................12
CONCLUSION.........................................................................................................................................14
REFERENCES..........................................................................................................................................15

INTRODUCTION
Business environment can be defined as collection of all the factors that affect the business
operations and impact survival and growth of business. In context of Global Business Environment this
factors belong to international market in which factors of more than one country where business is
operating affect its operations. This report is based on Global Business Environment and we discuss about
key factors the drive globalisation and business in a global market. These factors are cost, market,
environment and competition. Followed by this the report will discuss about complexity and strategic
challenges that business organisation face in globalisation. Business always operates in uncertain and
challenging environment and this becomes more difficult and uncertain when business operates at global
level. The business will also discuss about influences of globalisation on governance leadership and
structure of the organisation and influence of globalisation on ethical and sustainable organisational
functions. Later this report will also discuss about different ways in which organisation can make
effective decisions and various routes to internationalisation that organisation can adopt. For this
discussion the report will contextualize Allen Reeder Company the company was one man start-up in
1971 and now the company is leading Dairy supplier of London.
Key factors which drive globalisation
Key factors driving global commerce and trade
Globalisation can be defined as process of interacting with customers of different countries and
integration of businesses two people customers and governments of the world. Globalisation for the more
includes introduction of economic cultural political and social attributes of one country with rest of the
world. These are also known as dimensions of globalisation in which economic dimension of
globalisation can be defined as introduction of national economy with global economy which includes
breaking the barriers of national economic conditions (Johnson, Dahl and Mariussen, 2019). Cultural
dimension of globalisation includes introduction of national culture with international and global culture
in which countries adapt to global culture and at the same time they share their culture on global platform.
Political dimension of globalisation includes developing political harmony and collaborations in national
politics with global politics. This also includes impact of global political condition on business. Social
dimension of globalisation includes impact of globalisation on the life and work of people and how
globalisation impact families and societies is covered in social dimension of globalisation. There are
several driving factors for globalisation among them some of the factors are-

International Economy
International economic is driving force behind globalisation and international economy can be defined as
International speed of trade finance and production activities and increasing power of corporations so that
they can operate in international market. International economy includes Association with international
economic organisations and following rules and regulations that govern International economy. This is
one of the key driver and force behind globalisation because globalisation is spreading trade and
production activities outside the national territory.
Foreign Direct Investment
Foreign direct investment can be defined as investment which is made by a country directly to the
businesses functioning in other country. Foreign direct investment is very important and key driver of
globalisation. This allows businesses operating in in one country to get benefits from those businesses
that are operating in other country (Madsen and Wu, 2016). Businesses in which foreign direct investment
is made they get financial resources and ensure returns to from operating in other country. Besides mutual
benefit which is allowed by foreign direct investment it also is an important economic activity and due to
its nature and which nation interacts with other Nation it becomes important in globalisation.
International Business and Trends
International business and Trends include that globalisation is result of interaction between two or more
than two nations in which business activities integrate them and this business activities what’s affected by
International trends in business. Businesses in international market are successful when they are able to
cope with friends in international business.
The drivers discussed above get affected by factors like cost market environment and competitive factors
are also important it and effect Global trade and Commerce. Their influence is as follows-
 Foreign direct investment is attracted by those nations where cost is comparatively low. This
reduces cost of products and companies and businesses are able to attract more profit.
 Similar to cost market is also important as nations where their domestic market is small tries to
globalize their activities so that they can utilize their resources to their optimum capacity.
Globalization for such market is an opportunity to attract more customers and increase their profit
and productivity.

 Environment consists of all the physical Factor and availability of all the resources required for
operations of the organisation (Duarte, Pinilla and Serrano, 2018). Doors market and countries
where environmental factor is favourable is able to get more foreign direct investment and along
with this if their infrastructure and technologies also strong in death condition these markets are
able to get all the benefits of globalisation and international trade.
 Competitive factor is also important as company and businesses those who are able to compete in
in global market are more likely to succeed in the international operations. This is because
competition in global market is comparatively very high and challenging them national market. In
such situation companies have to take active decision through which they are able to sustain in
competitive global environment
Cost
This is one of the important factors to consider in global business. This is because increased production
and output reduces cost of the product. This becomes important reason which encourage organisations to
globalise their business.
Technology
Technology is one of the important factors to consider in global commerce and trade. The reason is that
organisation when operate at global level they can interact with latest and enhanced technology.
This is why technology drives global commerce and trade.
strategic complexities associated with operating in a global environment
Strategic complexity in a global environment
Globalization offers several opportunities to the organization but along with this organization also
requires to deal with several strategic complexities that are associated with global environment.
Complexities of globalization exist in different factors of environment. In this complexities of
globalization some of the difficulties and challenges thatAllen Reeder might face while
internationalisation its operations are are in form of trade law. In globalisation to regulate businesses
operating in international market there are some of the bodies that are regulating organisations and some
of the organisations regulating international trade are World Trade Organisation, GATT, embargo, ban
and sanctions (Verbeke and Kano, 2016). World Trade Organisation is an organisation which is
concerned with regulation of regulation of international trade between Nations. This is the

intergovernmental organisation and is headquartered at Geneva, Switzerland. Purpose of World Trade
Organisation is to reduced tariff and other bay area two international trade and has 164 member states.
General agreement on tariffs and trade is a legal agreement between many countries and this agreement is
also based on the purpose to reduce barriers and tariff in international trade. Embargo can be defined as
unofficial ban on trade orcommercial activity with a particular country. This means that when embargo is
placed one country cannot take part in to any commercial and trade activity with a particular country with
that the trade is ban. Main is also situation and which countries cannot trade with each other and are
officially and legally prohibited to take part intrade in commercial activity. Function is another failure and
international trade which includes official permission for an act in which penalty for disobeying law is
also included (Erdelen and Richardson, 2018). These are some of very important barriers and strategic
complexities that are required to be considered while operating internationally. The strategic complexity
of trade law is very serious because this govern operations and trade in a certain country and hence it can
be dealt with different measures. For Example, in India concerned with export and import goods has been
divided in three categories that are restricted, and prohibited. Before import and export it is important to
identify nature of goods. This is one way in which trade policies create complexities. Other than this risk
and diversification are also strategic complexities in global environment. Risk in global environment can
be defined as the risk of organisation in which organisation can face financial losses due to uncertainty of
the international environment. Diversification include that while operating in international environment
companies are required to diversify the operations and along with this companies are also required to
make diversification in product and market. For example, in context of diversity of the business and
product, several strategic complexities are associated in which different choice and taste and preference of
people of different countries is different and in this it creates complexities.
Concerned with strategic complexities discussed above one of the best example regarding global
environment and its complexity is related to International supply chain. Supply chain can be defined as
system of organisations people and activities and resources through which organisations produce and
distribute specific product to its finalbuyer. International supply chain includes International Organisation
and process of supply chain also involves going through countries. This means that in order to distribute it
product to final buyer in international environment company will require equator is good to include
International organisations. In its International supply chain operations of the company might get affected
by rules and regulations like ban and embargo. They also require top obey the regulations of GATT and
WTO. Many times to supply the product to final buyer in international market companies require that
they will have to supply it through a third nation and these regulations and trade law when applied to
those nations might create strategic complexities for Allen Reeder.

In order to deal with risk and diversification Allen Reeder can take support of economic factors in which
to reduce the risk and analyse the risk company can analyse economic environment of international
market and take decision on the basis of result of that analysis. Diversification can be successfully
implemented with help of considering environmental factor (Snihur and Tarzijan, 2018). This means
decision of diversification based on environment in which business is supposed to operates and survive in
international market.
Influence of Global Market operations on organisation
Influences of globalisation on organisational governance and leadership, structure, culture and functions
Organisational governance can be defined as a system through which rules and regulations are developed
and implemented so that organisation can function in pursuit of its objectives. This means that
organisational governance is a system in which objective define and implement rules regulations so that
organisation can function in order to achieve those objectives (Knein and et.al., 2020). There are several
reasons which make organisational governance important and in present competitive environment object
is which are defined to sustain in environment it becomes very important that organisational governance
they are achieved effectively. But along with this one of the disadvantage of organisational governance is
that it creates rigidity in organisational function in that it becomes difficult to change it according to need.
Leadership is an act through which leader influence and effect thoughts and actions of others so that they
can be encouraged to work in a way leader wants them to work. There are several reasons which make
leadership important for an Allen Reeder and the importance consists that leadership insurance that
everyone in organisation is working towards achievement of same objectives. But negative aspect of
leadership is that when organisation are needed by individual employees working in the organisation and
not able to take decision by themselves and this also reduces motivation to take decision for
Organisational benefits.
Structure of organisation can be defined as a system of rules and regulation and alongside a system in
which authorities and responsibilities are defined in an organisation (Zaabi, Singh and Ajmal, 2017).
Structure is important so that everyone in organisation is aware about the responsibilities but structure
also creates difficulty in organisational functioning as all the employees of organisation are required to
report to certain person and follow the hierarchy.
Organizational cut culture consists of all the rules and regulation policies values and shared assumptions
of organisation which govern people working in the organisation. Culture of Allen Reeder differentiates it

from other organisations and this is one of the most important benefits of organisational culture. In an
international business organisation culture please a very important role and when organisation is willing
to enter international market they are required to to understand and analyse culture of the country they are
willing to enter. Allen Reeder will also require analysing the culture of the country in which they are
willing to enter example Allen Reeder is willing to enter in Italy e way bill required to analyse culture of
Italy so that we can provide products which are preferred and suitable for the people of Italy. This will
contribute in success of Allen Reeder that they are providing product which are actually required and
desired for the people of Italy. This will also impact organisational culture of Allen Reeder that they will
have to adopt a culture organisation in which elements of all the market where Allen Reeder operate ka
included.
Other than this in international market organization governance leadership and structure all gets affected
and in decision making criteria get increased and environment of all international market is analysed so
that business can successfully operate in international market (Nazarian, Atkinson and Foroudi, 2017).
There are some theories through which an organisation can analyse its culture and culture of the market
they are willing to enter. The culture of organisation can be analysed on the basis of Hofsteads’ cultural
dimensions (Kristjánsdóttir and et.al., 2017). This model includes following six factors on the basis of
culture of a country can be analysed these factors are-
 Power Distance (distance in power and value of hierarchy)
For Example, In US power distance is low and power is shared and is widely dispersed. This in US has
score of 40 however this score in UK is 35.
 Individualism (extent to which people feel independent and interdependence)
Both UK and US are highly individualised culture in which individual objectives and goals are preferred.
Score of these countries is 89 and 91 respectively.
 Masculinity (use of gender force and division of activities based on gender)
In context of UK and US both the countries can be considered having masculine culture as score of
countries is 66 and 62 respectively.
 Uncertainty Avoidance (extent to which people of society are ready to take risk)
In this context countries are not very strict and rigid when it comes to uncertainty avoidance. This means
that they take risk. In this score of US is comparatively higher which is 35 and 46 respectively.

 Long-term orientation (extent to which people people think about their future)
People of UK have a long term orientation which is not in culture of US. Their score is 51 in UK and 26
in US.
In order to analyse culture of the organisation McKinsey’s 7s model can be applied (Cox, Pinfield and
Rutter, 2019). This model includes following factors that are known as hard factors and soft factors, these
are-
Hard Factors Soft Factors
Strategy Shared values
Structure Skills
System Staff
Style
Success of organisation in international scenario gets affected by the capacity of organisation in
coordinating soft S factors with the requirement and changing hard S factors as per the requirement.
Influences of ethical and sustainable globalisation on organisational functions
Globalisation can be defined as globalisation which is based on values of business operation in
which organisations take full responsibility for long term and short term impact on ecosystem of which
organisation and humans are a part of. This means that identifying and valuing every aspect which gets
affected by operations of organisation and ensuring that resources are respected and valued and along
with their organisation are also required to be responsible towards their approach for environment
(Marshall, Coleman and Reason, 2017). This means that organisation should ensure that there functioning
does not impact environment negatively. Moreover this also includes responsibility of organisation
towards human resources society in which they are operating and financial capital of the organisation.
Ethical globalisation can be defined as functioning of business in and global environment on the basis of
right and wrong conduct organisations adhere to functioning which is right. This means that
organisational benefit form does not do anything which might harm others. Presently globalisation is
supposed to be sustainable as well as ethical and all the organisations operating in this globalisation
requires that there functioning is ethical as well as sustainable. Factors of ethical and sustainable
globalisation also support improved functions of Allen Reeder, these are-
Reduction in wastage leading to reduction on cost and increasing environmental sustainability

This means that vestige in in organisation is is minimum which leads to reduction in in cost of the
product. Waste reduction is important element of the sustainability and when organization reduces its
waste subsequently cost also get reduced (Bende-Nabende, 2017). This gives benefit to organisation in
terms of increased profitability and along with that this also includes productivity of organisation.
Reduction in wastage is also in favour of environment sustainability. However some of the cons are also
associated with this that is waste management is highly lucrative but it is not always cost efficient.
Environment pollution is reduced but it can be more dangerous on the sites where waste management is
carried out. This is one of the important measure for sustainability that Allen Reeder can undertake.
Responsible organisation and enhanced image
This means that when organization behave and act responsibly this improve their image. This is because
all people are concerned with environment and are willing to to associate with organizations that are
environmentally responsible. Allen Reeder when is environmentally responsible it will be valued in
globalisation and in global market.
Some of the supports which are provided by sustainable globalisation and along with this sustainable
globalisation also present some of the challenges in front of organisation and this are-
 Human Resource Management is one of the challenges which have been created by sustainable
globalisation. This is because in globalisation human resources employed by the organisation are
from different cultural backgrounds and in such situation it becomes difficult for the organisation
to manage diversity.
 Marketing is another challenge this includes encouraging and convincing people from different
cultures in nation to buy the product. This also requires to take care that content included in the
marketing is ethical and as per the rules of globalisation.
 Management is another challenge management of Allen Reeder requires to manage difficult and
challenging task which includes various factors that are not relevant with home country (Beumer,
Figge and Elliott 2018). To deal with this challenges.
Employee Well-being
Employees play important role in success of the organization. Their well being is both ethical as well as
sustainable. This means allowing employees with all their rights is ethical and when employees are
satisfied with their job and organization in such case their contribution will bring more effective results
for organization and its competitive advantage. However, sometimes it can associate cost and power of

decision making also gets compromised but practicing this will be in favor of Allen Reeder and
successful functioning of the organisation.
Influence of Globalisation on organisational decision making
Different ways decision making can work effectively in a global context
Globalization certainly affects decision making of the organization because decision making is
the core of every activity performed in organisation. Internationalisation effects decision making of Allen
Reeder and Mel impact strategic decision making of the organisation. Strategic decision making is
affected by globalisation because firms in globalisation require to deal with more Complex and difficult
environment (Shao, 2019). This result in increased pressure of the form and required to take decision
through which they are able to reduce their cost diversify operations increase market share and reduced
risk of organisation. Some of the ways in which decision making in globalisation gets affected are-
Internationalisation of operations
Turn off the most important decision that globalisation requires to be taken by the form. This means that
various decisions regarding internationalisation in which analysing influence of globalised trends
strategies to deal with the trains and purchasing and selling in international market. This also requires
forms to take decision regarding ways in which they can internationalise their operation. They are also
required to take decision regarding products and services being offered by them in which they are
required to consider that the product is able to meet the requirements of international market. This means
that while internationalisation Allen Reeder will require to take decision regarding their product and any
changes required in the product. This is important decision in which Allen Reeder requires to take
decision regarding process of the internationalization.
Leadership and decision making
Globalisation of firm required that leadership in the organisation is strong enough to lead in organisation
in uncertain and complex business environment. Leaders are requiring and to change the leadership style
so that the kin ensure success of firm in in an uncertain and complex business environment (Kaufmann
and Arnold, 2018). This requires that leaders adopt two new and participated styles of leadership rather
than traditional authoritarian leadership. This is become very important because loyalty of employee is
concerned with value they are given in the organisation. This means that in order to ensure loyalty of the
employees lyrics are required to to consider their opinion and value their opinion. Leadership required to
be effective enough that performance of organisation is superior in globalisation and leader is required to

take responsibility of strategic implementation in the organisation. Along with this leader is also required
to ensure that customers are being informed and encouraged to buy the product of Allen Reeder. In
present environment in which leaders are required to take responsibility of ensuring that form is able to
sustain in competitive environment. Managing sustainable globalisation and ensuring sustainable
practices of the organisation is also responsibility of leader this requires that leader is effective in decision
making.
Among all the methods of decision making globalisation contact changing leadership is one of
the most important because leadership is important requirement of organisational success. This is the
reason that if Allen Reeder change is the leadership style they will be able to succeed in their international
operation. For example Allen Reeder its operation in Italy in such situation transformational leadership
style will be very successful because in this leadership style leader encourage and motivate their
employees to improve their performance. Transformational leadership style also include that leader
convince employees to to accept changes which are being implemented in the organisation. In this
leadership in this leadership style are also very effective and employees are treated specifically and this
contribute in developing and increasing loyalty of the employees for the organisation
(Phornlaphatrachakorn, 2019). In this leadership style leader will also be able to make effective decision
regarding transformation of the organisation which is very important when form is operating in
international market. This is the reason that this leadership style will prove effective in operations of
Organisation in other country. this discussion suggests that changing leadership is important strategic
decision in context of globalisation.
Various routes to internationalisation
Internationalisation can be defined is those ways through which business can enter in
international market. Some of the ways through which Allen Reeder can International its business are-
Merger and Acquisition
Merger and acquisition these are two types and routes of internationalisation. Merger is an activity in
which and two or more organisations belonging to different nations merge their operation and function is
one single organisation (Kampouri, Plakoyiannaki and Leppäaho, 2017). In this type of
internationalisation video which can affect its success is investment and resources required.
Acquisition is another route that company can adopt for internationalisation. Acquisition is a route in
which companies buy ownership in host country which enables them to controls operations of the

company. Behaviour in this is also resources required for the acquisition because this is one of the most
expensive method of internationalisation that Allen Reeder can adopt.
One of the difficulties in this is identifying right organisation for merger so that both can add value to
each other. Trade barriers in host country and their regulations are also significant barriers to consider in
this and policies of host countries can create difficulty for the operation of the organisation and business.
Fully owned subsidiary
This is another route for internationalisation in which Allen Reeder will require to establish their own
subsidiary in other country. In order to internationalisation this is one of the most difficult route because
of barriers involved in in this. This is because while stabilizing subsidiary in other country various
included in this route of internationalisation are trade barriers in which other company may or may not
allow product of the organisation. This is also required adhering to Laws and regulations of other country
which might be completely different from home country (Coudounaris, 2018). Resources required are
anotherbarrier in this route because establishing totally on the subsidiary requires financial as well as
other material resources.
Export
This is another route for internationalization and this is also simple route for internationalization in which
resources required are limited. Another benefit of this is that company does not have to take much action
and can operate from their home country. But this route of internationalization also includes several
barriers and these are in form of tariff, trade barriers, quotas, and legal difficulties and barriers. In this
Allen Reeder can also face difficulties when its products are not allowed in the country where they are not
allowed. Its products are dairy products and this is why quality of the product also is an important
consideration. Export is also subject to barriers like ban, embargo and GATT. This business can also
affect export and may create barrier in successful exportation of the product.
These are some of the routes through which Allen Reeder can internationalisation business. Among this
routes of internationalisation all are suitable for Allen Reeder but export is most suitable because product
of Allen Reeder are dairy products and possibility of this behaviour is affecting the export are list. Other
than this resources required for export are also limited and Allen Reeder can utilise its existing goodwill
for creating a positive and favourable impact in international market (Pascucci and Bartoloni, 2018).
While doing so Allen Reeder will have to provide special attention to quality of the product because its
products are in food and beverages category and this is very important to meet standard in order to avoid

any kind of legal problem in international market. Potential challenges in doing so are also related to
quality of the product and by maintaining standard quality company can avoid potential challenges.
CONCLUSION
On the basis of above discussion it can be concluded that business environment plays key role in
success and growth of organisation. This is because factors in an environment offer various possibilities
to organisation along with threats. In dealing with bread timely analysis of environmental factors can
make a significant contribution. This report discussed about environmental factors and strategic
challenges which are faced in in international environment and some of the the strategic challenges that
Allen leader might face are International trade law, increased risk in international market and difficulty
and complexity of international supply chain. Along with this economic environmental factors of the
countries also affect globalisation. Later this report discussed about Global market influences on culture
structure and functions of organisation and on the basis of that it can be concluded that form while
operating in in international market have to consider different cultures of countries where it operates and
this culture is materialized in organisation. This report later also discussed about ways in which
organisation can make effective decisions and some of the ways through which organisation can enter
into international market. This discussion concludes that a globalisation has several challenges and
difficulties but along with this it offers many opportunities that when are utilised can contribute in overall
growth and success of organisation.

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