Global Business Environment: Key Factors Driving Globalisation

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1.Understanding key factors that drive globalisation...........................................................3
TASK 2............................................................................................................................................5
P2.Determination of various key strategic challenges associated with operating in a global
environment............................................................................................................................5
TASK 3............................................................................................................................................6
P3. How operating in global market influences organisation's structure, culture and functions.
................................................................................................................................................6
P4 Influences of ethical and sustainable globalisation or various organisational functions.10
TASK 4..........................................................................................................................................12
P5. Different ways in which decision making can apply in global contexts........................12
P6. Various routes to internationalization along with their barriers as well........................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Global business environment refers to internal and external environment in different
sovereign countries with factors outside home country or organization. It influences decision
making for allocation of resources and capabilities.(Hamilton and Webster, 2018). Organisation
can't exist in vacuum so it should consider external environment factors. This report has been
prepared considering globalisation in context with CAMECO. It is world's second largest public
company trading in uranium based in Saskatoon, Saskatchewan. This report throws light on
factors such as cost, market, environment and competition that helps in global commerce and
trade. It also shows factors influencing global market operations. Also, strategic challenges faced
in global environment by business concern. This report also explains influences of ethical and
sustainable globalisation on different organisational functions. Lastly, this report also explains
barriers which further leaves impact on business concern at global level and different ways of
decision-making which can be applied in global context.
TASK 1
P1.Understanding key factors that drive globalisation.
Various factors that drive globalisation comprises of technological
advancement,international trade and international investment. (Laudon and Traver, 2016) The
concept of globalisation affects a part of business or overall functionality which includes almost
all sectors which may be cultural, political, social or economic dimensions. In context of
CAMECO, their are many driving forces such as cost, market, environment, technological
advancements, etc. which affects globalisation. Various key factors that drive globalisation are
discussed below:-
Cost driver- This driver is considered very important factor for overall functioning of
business concern. Also, helps in expansion of business at global level. In present context
managers of CAMECO, wishes to expand its business at global level so, huge capital or money
investment is required. When there is no availability of capital at required time this factor can
hamper productivity of CAMECO. Their are certain benefits associated with this factor that is
will help managers of CAMECO, to increase productivity as well as profitability. Also, cost
factor helps CAMECO to build a good image and reputation at global marketplace.

Market driver- Market is a place buyers and sellers meet to exchange products and
services for a certain price. For expansion of business either at national or global level stable
market is very important. Market is a very important factor for managers of CAMECO as, it
helps in identifying needs and wants of customers. If CAMECO wants to expand its business
operations at global level than proper market research should be conducted. As, this will help in
maximising customer satisfaction and achieving economies of scale.
Environment driver- Environment can be defined as sum total of surroundings of
human and non-human beings which provide conditions for development and growth. Certain
factors including political, social, legal, and technological must be considered and assessed
while expansion of business operations at global level. A combination of all these factors is quite
essential for developing or maintaining an understandability of different laws or rules that are
present in different nations. As, this further helps CAMECO in formulation of strategies which
helps in expansion of business. Mangers of CAMECO should adhere to environmental standards
of different countries as it is a chemical based industry. Also, this will help in ethical and
sustainable globalisation.
Competition- Competition is very important factor which needs to be analysed by each
business concern so as to take advantage of expansion and globalisation. In present context,
CAMECO has competitive advantage in mining sector. Lets take an example of Forum Uranium
Corporation which uses AI for business. So,CAMECO dealing in heavy equipment and
engineering can also use artificial intelligence to increase competitive advantage and expand
business at global level. If any accident occurs in CAMECO, employees are provided all
safeguards and support family by providing insurance.
Political driver- These drivers are related to intervention of local and national in
business and economic environment. CAMECO has been benefited with lower taxation policies
which helps in high profits and more investment in R&D. Also, company should adhere to
government policies.
Economic driver-Government has increased investment in developing core
infrastructure to facilitate and improve business environment. To expand the business CAMECO
can access vibrant financial markets and easy availability of liquidity in equity market.