Global Business Environment Report of Nike
Added on -2020-07-22
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Global BusinessEnvironment
Table of ContentsINTRODUCTION...........................................................................................................................1P1 Analyse key factors that drive globalisation..........................................................................1P2 Strategic challenges faced by organisation when operating in global environment..............3P3 Evaluate influences of globalisation on organisation governance and leadership, structure,culture and functions...................................................................................................................4P4 Evaluate the impact of ethical and sustainable globalisation on organisation functions.......5P5 Evaluate different ways of decision making doing work effectively in global environment6P6 Determine and articulate various routes to internationalisation for organisation..................7CONCLUSION................................................................................................................................8REFERENCES ...............................................................................................................................9
INTRODUCTIONBusiness environment is refer to that situation where an organically bringing theiroperation and functions. A business environment comprise with summary of internal andexternal factors that can directly affect upon their functioning in better manner. This report isbased on Nike company which is multinational organisation that is engaged in the design,manufacturing, development and effective services. This assignment is mainly focus on differentfactors which increasing major key drivers for globalisation (Cantwell, Dunning and Lundan,2010). There are different complexities which are encountered by organisation while expandingtheir business in international level. Along with this, there are various factors which directlyimpact on organisation structure, functions and structure on decision making and its strategy thatcan be known. P1 Analyse key factors that drive globalisationGlobalisation is that process which integrate and communicate with different people,organisation and economy of country in rest of the world. In the context of globalisation ofbusiness that lead towards economic operations of an organisation. The main aim is to make andcreate surroundings which lead to inflow of investment so success and growth can be achieved.An enterprise can carry out their operations and functions in large number of nations which areknown as Multinational organisation. They are directly impact on increasing income andcontributing to their country economies. It includes various factors such as communication,finance, economic and transaction in all over the country. Therefore, global businessenvironment determine the effective strategies and decisions at the time of smooth running ofbusiness operations and functions. These things are help in achieving competitive advantages inproper manner. There are various factors which can directly affect to the Nike company due tofootwear company deals in international market so it is necessary for consider such forces whiledeveloping decisions regarding business (Cavusgil and et. al., 2014). They have major impact onbusiness and it drive global trade and commerce in effective and efficient. There are some factorsare as follows:Cost - It is mainly related with financial term and various problems which occurs duringmarketing, production and research, etc. therefore, it can defined as the value of money whichassist in manufacturing products and services for satisfying customers needs and demand in1
better manner. Nike made their material for spending around $11, for labour$2, for other costs $4and for profit $1. Nike sells the shoes to retailers for around $36. They are mainly focus onpromoting their new footwear through social media, television, other advertisement modelswhich help in target large number of customers (Colfax, Rivera and Perez, 2010). It will assist indriving global environment and trade which increasing economies and GDP of the nation. Majorkey factors of costs are as under:Direct cost - It is that cost which generally determine while smoothly running of businessthat can put some efforts in the goods in better manner. There are various direct cost thatincludes labour, workers and material which is required for making accurate products andservices by satisfying their customers needs and demands. Nike also determine Fixed andVariable costs in producing procedures for running their business. Indirect costs - It is determine as income or revenue which occurs during manufacturingprocess and other business activities in proper manner. This involves advertisement,maintenance and office expenses and management. Such costs are generally occurs forselling and purchasing of effective products and services, so it is related with compassesof price policies for managing whole business and its major activities in better manner. Market – It can be describe as that place where products and services bring serve andsales. In this, there are different person which comes for making effective purpose such aspurchasing goods with exchange of money price in the market. Nike is leading internationalcompany and they are selling different shoes or footwear products at different countries. It is notstable as market change as per their environment and time scale so this can directly affect ontheir firm. There are certain factors of market that are as under:Labour market – It is mainly concern with people who works for company andidentifying the employment at different nations (De Jonge, 2011). Labour market isrelated with job opportunities within an organisation which help in increasing due toforeign trade and globalisation. This is majorly driving with trade and commerce that ismajor key factor of the marketplace. Market for raw material – It is another elements which is very important for everycompany and it is required for manufacturing effective products and services. So thesefactors are related with products and raw material which export and import in all over the2
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