Challenges of Global Business

This assignment delves into the multifaceted challenges businesses encounter when navigating a globalized marketplace. It encourages an analysis of key factors such as diverse cultural landscapes, varying institutional frameworks across nations, and the imperative for sustainable business practices. The provided text offers insights into these challenges and their implications for successful international operations.

Global business
environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key factors of cost, market, environment and competition that drive global commerce and
trade........................................................................................................................................1
TASK 2............................................................................................................................................3
P2 Complexity of strategic challenges faced by organisation while operating in global
environment............................................................................................................................3
TASK 3............................................................................................................................................5
P3 Influences of globalisation on organisational governance and leadership, structure, culture
and functions..........................................................................................................................5
P4 Influences of ethical and sustainable globalisation on organisational functions..............6
TASK 4............................................................................................................................................6
P5 Different ways decision making can work effectively in global context..........................6
P6 Various routes to internationalisation which can adopt by organisation, including key
barriers....................................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
There are many organisations in different sectors fight with each other in order to sustain
at global business environment for a longer period of time. Most of these firms makes high
profit, generate huge revenue and have great brand image in front of social people. Along with
this, it has been analysed that growth rate of a company is much high when it is compared to
domestic business level. (Ferraro and Briody, 2017). Thus, most of SME’s continuously look
forward to expand their business at global level in order to grab a leading position in shorter
period of time. Under this report, The Entertainer that makes toy products at United Kingdom
has been taken. Corporation has made plans in order to increase their both productivity and
profitability by running their business at global market level. Some of elements that are going to
get included under this assignment are: determinations and key factors that will aid in
understanding the global business environment, few risks, challenges, that are going to be faced
by firm while entering into international business and some of those strategies by which
company can reduce all those elements. Along with this, assessment is also going to include
effective decision making process which will help organisation in hitting targets at global
business level, All these will lead to determine through understanding of global business
environment.
TASK 1
P1 Key factors of cost, market, environment and competition that drive global commerce and
trade
It has been analysed that there are ample number of factors that may put affect doing
business at global level. Therefore, it is mandatory for management of every firm is to first locate
them, analyse and then make appropriate decision in order to hit targets or achieve desired goals
or objectives (Wild, Wild and Han, 2014). India which is an Asian country have a good
economical condition and The Entertainer is looking forward to expand their business there.
Thus, it can be beneficial for this firm and may make profit at its maximum level. But to do this,
it has been analysed that management of this firm have to make proper sort of strategies and
policies as well in order to become an eye catching element in Indian marketplace. There are
some components which needs to be considered by this organisation by which they can enter at
marketplace and sustain for a longer period of time. Some of these are mentioned beneath:
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Competition: When it comes to enter a whole new market, it has been analysed that
management of firm can face many competitors who are already serving to people in different
sectors. Therefore, it is must for The Entertainer to look what exactly those firms are selling and
look at the areas in which they can make alterations so that they can grab attention of consumers
in larger number. Manager of The Entertainer has to into ways and manufacture products or
services as per current trends. It is also essential for them to understand human needs at targeted
geographical area. With the help of this, The Entertainer can make decisions by which they may
lead firm to stay or sustain at market for a longer period of time (Savrul, Incekara and Sener,
2014). Away from this, market share can be enhanced by management of The Entertainer by
using new tools, techniques and technologies. It has been also analysed that, effective policies
and strategies can aid in many ways like, enhancing belief of consumers and employees. India is
a fast growing country therefore, it is must for management of The Entertainer to understand
marketing techniques that are being used by existing firms of same sector and take decisions in
order to grab attention of people in ample numbers. Manufacturing toys with innovative ideas
may lead The Entertainer to attain all the desired goals. Along with this, trade barriers In India
are much lesser as they are already using internet in wider range and comes on 3rd number in all
over world which is using technology at every single place. With the effect of this, The
Entertainer can face lesser risk if they make toys by using innovations in appropriate manner.
Away from this, as India is raising or developing at this moment therefore, they are inviting
MNC’s in order to do business (Kasemsap, 2015).
Cost: While expanding business at international level this type of element is said to be
considered as most important one. This factor can make or break a firm. Therefore, it is
mandatory for management of this firm to make effective strategies through which they do not
face risk related to cost of products and services. Quality products in affordable prices, this is
what exactly Indian consumers are looking for at this time. Thus, to sustain at marketplace of this
country it is essential for The Entertainer to manufacture toys with less prices. One more thing
under this element which should be taken care in appropriate manner and that is rate of
investment return. Through this The Entertainer can obtain competitive benefits at global level
and sit on a leading position at international market. Consumer’s requirements should also be
fulfilled by firms so that they can keep up the belief on products and services which has been
made by them.
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Market: Marketing department of a firm should be effective in nature. With the help of
this, they can hit targets for a longer period of time that are related to sales and promotions
(Cavusgil and Knight, 2015). The Entertainer is introducing its products at international level
therefore, it is vital for them to understand and analyse techniques that are being used by their
competitors for doing promotional activities. Along with this, they can also achieve their goals
and objectives. Away from this, it has been located that every single person has its own
perception about company who has newly entered in a whole new market but, a firm cannot
exactly make products as per every individual needs. At this point firm’s superior can conduct
research and ask questions from selected few members from ample number of people. Lifestyle
of people in India is totally different from UK. Therefore, it is essential for The Entertainer to
take suggestions from consultancies of India in order to better understand business environment.
Environment: In business language, globalisation term can be understand where an entity
manufactures products and services to serve people in all over world. With the help of this, firms
can basically grab attention of people in larger number. Most of organisations produce goods and
services in order to fulfil requirements of consumers and when a customer purchases them these
firms takes money in exchange. Through this company can generate revenue and profit as well at
the same time if they are offering products with quality. Under this, management of organisation
also looks into enhancing satisfaction level so that they can sustain at international level for a
longer period of time (Doh, McGuire and Ozaki, 2015). To better understand these markets firms
can take in use of different approaches like PESTLE analysis. Basically, this type of hypothesis
is being used by management of The Entertainer to understand external drivers. Another
approach that can be used by Porter's five forces and many more.
Therefore, The Entertainer’s supervisors should understand and consider these elements
when they are looking forward to expand business at international level. Along with this, tax
systems can also put impact management of The Entertainer and can affect prices of products
and services (Crane and Matten, 2016).
TASK 2
P2 Complexity of strategic challenges faced by organisation while operating in global
environment
At current moment, every single firm is looking forward to expand their business at
international level. Therefore, it is mandatory for them to make appropriate plans and strategies
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by which they can hit targets for a longer period of time. Along with this, bringing new
innovations in products and services that they are selling at marketplace may aid in gaining
competitive advantages at international market level. Making or manufacturing toys with
considering children of India can aid The Entertainer to improve business range. SME’s are
using internet to promote their products and services in order to gain attention of consumers in
huge number and this element is also cheap therefore, it do not cost much to small or middle
level enterprises. While expanding business at international level there are many problems that
can be faced by management of The Entertainer. Thus, it is vital for making different sorts of
strategies so it do not effect operational activities much (Belás and et. al., 2014). Despite of this,
some problems or challenges that can be faced by The Entertainer as they do not have much
knowledge about marketplace which may put them in trouble and may face losses as well. To
over come this, they can formulate various business plans, make strategies and conduct market
research in order to sustain at a whole new geographical area for a longer period of time.
On the other hand, it has been analysed that Asian people have different culture, mixed
perceptions and different needs. Therefore, it is mandatory for management of The Entertainer to
look into these areas carefully before taking any initiatives. Along with this, plans of business
expansion needs to be examined in proper manner while expanding it. Thus, they will generate
maximum revenues for firm. There are several issues which will be face by company at time of
operating business at global level and these are stated as beneath:
Customer expectations: One of a major challenge that can be faced by a firm is
consumers prospects. Therefore, it is vital for management of The Entertainer to consider this
element as main while making or manufacturing products and services for consumers. It has
been examined that customers asks for more and pays less money in India. Thus, while entering
at Indian market it is important for The Entertainer to keep products prices less and give them
with quality (Belás and et. al., 2015). Away from this, The Entertainer have to do market
research on a regular basis to see what trends are going and what exactly there rivals are selling
at marketplace of India.
Cost: It has been analysed that when a firm enters global market products and services
rates or prices rises. Therefore, it is vital for The Entertainer to locate those areas from which
they can reduce products prices. Indian economical conditions are not that much good when it
compares to United Kingdoms. Therefore, people of India may not afford products and services
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with high prices. In modern era, a technique that can be used by management of The Entertainer
which is online selling. Therefore, it will directly help them in offering larger number of
products and services to consumer in all over India and at global level as well. Along with this,
some kind of discounts can also be provided by superiors of The Entertainer in order to increase
market share of them at India level. It requires much funds to open outlet in every single city but
at the moment they can run business by developing their own online website where they can give
proper descriptions to consumer about products that they are offering in the market (Apăvăloaie,
2014).
TASK 3
P3 Influences of globalisation on organisational governance and leadership, structure, culture
and functions
Globalisation can be stated as trend in which a firm deals and manufactures products and
services at international level. It can put impact on a business through many ways. Therefore, it
is mandatory for administration of the The Entertainer to analyse market before taking any sort
of initiatives. Along with this, it essential for organisation when it is doing business at global
level to get attached with bondholders and stay ling with them. As they are the one who provide
funds when it comes to achieve desired goals and objectives. This may help in hitting those
targets which firm was will to (Axelrod and VanDeveer, 2014).
The Entertainer is looking forward to enhance business at international through this their
operational activities will also become effective so that they can perform well and serve people
in best way. A leader under this, may influence staff members at both domestic and international
level so that they become more effective at workplace. Along with this, it is important for The
Entertainer to understand the culture which is being followed by people of where they are
looking forward to expand their business. By this, organisational governance will automatically
get increases. Away from this, globalisation may also aid in improving economical condition of
whole world. There are many firms that have huge market share and serving people at both
domestic and at international level.
Apart from this, there are some other key factors that may impact global businesses and
these are given beneath:
Social media: It is being found that, this is one of crucial factor that basically impacts
upon global business, as a company like The Entertainer, at the time of expansion. Since most of
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people stays online. Therefore, using social media tools like Facebook, Instagram and many
more could help The Entertainer in expanding business at international level.
Cloud computing: This is being considered as another approach which could help
organisations that are performing at international level. Using this tool could lead The
Entertainer to improve its storage performance of the company.
Depending on culture of new market it is important for management of The Entertainer to
understand it first and then only they can manufacture products and services (Epifanova and et.
al., 2015). Away from this, it is important for administration of The Entertainer to hit targets for
a longer period of time. This can be done by leaders through giving training to staff members so
that they enhance their skills and knowledge in order to become more effective at workplace.
The Entertainer can expand business at international level by finding out each factors in a
proper manner and this will comprise culture, structure, leadership and in addition governance.
Above mentioned each factor render appropriate guidance to people; thus, they will be able to
promote better working at workplace. Alongside this, it is must for superior to modify their
working style on certain time span as it enables them to diminish risk which is connected with
policies or strategies of company. Henceforth, it is must for manager to identify things in a
proper manner as this will help them into process of decision making; as a result, work will get
completed within certain period of time (Huhtala and et. al., 2014).
Away with this, The Entertainer could also face a number of complexities linked with
supply chain management of the organisation at the time of business expansion. While enlarging
the business, it is being found that, company needs to have an effective supply chain
management so that stock of the The Entertainer, could easily sell products and services to
targeted customers with ease.
P4 Influences of ethical and sustainable globalisation on organisational functions
Ethics can be stated as or it may be considered as value or worth that stays connected
with an organisation. Therefore, it is mandatory for management of The Entertainer to take or
see every single factor’s critical review. Effective value or ethics of an organisation aid in
running business at international level. With the help of this, it becomes easy for firms to follow
all the legislations that are related to country in which firm is looking forward to expand
business.
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On the other hand, globalisation has also impacted in both positive and negative manner
on culture and the structure as well of a business organisation like The Entertainer, as company
may start out sourcing where they require to recruit new employees, and this took organisation
and its existing staff to get to know about different places and culture as well. Away with this, at
the time of business expansion, it is possible that The Entertainer may require to change its
structure from the one which they were following.
On the other hand, it is vital for The Entertainer to do business with ethics in order to get
a good reputation at in international market. Failure into this may lead firm to create losses for it
and decrease in goodwill as well (Kolk, 2016). Away from this, management should keep on
making alterations in their policies which has been made by supervisors in order to keep up the
interest of employees in their jobs. By this, brand image can be enhanced so that firm can earn
profit at maximum level and generate revenue in huge amount. Apart from this, while expanding
business it is mandatory for administration to consider shareholders while making decisions as
they are the one who generate funds. This will assist them to take benefits from competitors at
competitive place. It is required for The Entertainer to use appropriate strategies for globalisation
so that they will easily deal with any kind of circumstances which will be face by them at the
time of selling products and services to clients. Henceforth, it has been examined that affect of
sustainable globalisation as well as ethics will cater huge impact on functions of organisation so
that they will easily complete business operations in an effective manner.
Along with this, ethics concern an individual’s moral judgements about right and wrong.
Decisions taken within an organisation may be made by individuals or groups, but whoever
makes them will be influenced by the culture of the company. The decision to behave ethically is
a moral one; employees must decide what they think is the right course of action. This may
involve rejecting the route that would lead to the biggest short-term profit.
Ethical and Sustainable globalisation is term which defines the concept about adherence
of all the norms and standards in the different country while building their business operations.
This will have huge impact upon the factor about building effective relationship. This will ensure
in building of positive relation with government, suppliers and employees in different nations.
One of the major benefit that can be ascertained from the adherence of this topic is about
effective accomplishment of goals and objectives along with the maximum satisfaction of
employees needs.
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Still there are many factors which impacts the concept of ethics and sustainability
includes political and economic al conditions prevail under that globalised country. These factors
have negative impact upon the growth of an organisation and negatively impacts the approach of
ethics and sustainability.
Compliance of laws: The management of The Entertainer Limited ensures that the it is necessary
for their organisation to follow all the governmental rule and regulation for operations their
business activities in an effective manner. Along with this, in their working area they should
maintaining its operation is order to follow various laws such as employment laws, health and
safety laws, trade laws etc. This is considered that company should use ethical channels in their
working condition for an overall sustainable development. It aids The Entertainer Limited to deal
with the competitive market in context to maintain their reputation as they are following ethical
rule by which they expand their business at global level. With help of this, The Entertainer
Limited company makes its unique identity at market place in order to achieve organisational
goals and objectives for expansion of it in international market.
Corporate Social Responsibility: This is process by which any organisation can
marinating its positive image in front of market as it provides various benefits to the society by
which both organisation as well as economy can move towards development. In context to, The
Entertainer Limited, their management took two major CSR enterprise namely Accessible Qatar
and Qatar e-Nature by which company get winning recognition and memento in ancient time.
By the help of Qatar initiative, The Entertainer Limited company brings sign language translators
for those people who are physically disabled and for this they make Gagwriter conference for
generating awareness at market place about this. Along with this, company will encourage needy
people or disable people to visit the exhibition. On the other hand, the Qatar e-nature initiative
gives accurate information about environment and nature through mobile applications and aids
school to conduct contests yearly. Furthermore, this two activities helps The Entertainer Limited
to maintaining their sustainability at market place and expand their business at global scale.
TASK 4
P5 Different ways decision making can work effectively in global context
Decision making process becomes really very hard for superiors of firms when it comes
to expand business at international level. Therefore, it is mandatory for administrations to first
conduct a proper market research through which investigator can gather good information and
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then only supervisors should make determinations. It has been analysed that there are many
factors through which a manager has to go through where he/she can face many issues and
problems as well. They may become barrier for them for a longer period of time (Cohen and
Kietzmann, 2014). In context of this, The Entertainer is going to enlarge their business in India.
Thus, it is much important for administration to hit targets by making effective decisions. Along
with this, if effective determinations are being made it may take or lead firm to a profitable
position where they will make money in huge amount and generate revenue. The Entertainer can
sustain for a longer period of time if they keep on making or manufacturing products and
services according to needs and wants of their consumers. Sales will automatically get rise up by
this. It has been analysed that there are two type of decisions that can be undertaken by
management or leaders and these are given below:
Programmed decision making: To make operational activities in nature, it is mandatory
for supervisors to follow a fix or tried and tested way in which they can follow proper rules and
regulations. Therefore, these determinations are much useful as with help of this, superior of an
affiliation will easily maintain their brand image in country which enable them to gain positive
results in a significant way (Carneiro and Brenes, 2014).
Unprogrammed decision making: It has been analysed that sometimes at time of risk or
in uncertainties leaders or management have to make quick decisions which can be considered
into this element. It is being located that sometimes these determinations won’t put much effect
on operational activities.
With the help of these determinations made by company, it could lead them to reach to an
all new level where organisation could easily grab a good position at global level. It would help
The Entertainer in understanding the market in depth and could aid them in performing at
workplace in rightful manner.
It will help firm to maintain their position at marketplace for maximum period of time.
Globalisation is considered as an effective procedure and in this, management has to take un-
programmed judgement as this is based on logics as well as facts which promotes an effective
working (Ferraro and Briody, 2017).
P6 Various routes to internationalisation which can adopt by organisation, including key barriers
In order to enhance business at international level firms should keep on influencing
workers to hit their targets by which firm can hit their targets for a longer period of time.
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Globalisation is being measured and can be considered as process that may aid in pushing
company to at international level. Therefore, it is essential for The Entertainer to locate all risk
factors that needs to be examined in appropriate manner so that it won’t put any impact on
business activities.
Along with this, there are ample number of barriers that can be faced by management of The
Entertainer which are given below:
 Proper funding can come under a barrier as much of SME’s do not have much funds in
order to enhance their business at international level. By investing proper amount, an
effective results will be attained by enterprise. Mentioned organisation is enlarging their
business in India, where rate of interest of FDI is much less. Henceforth, cost is
considered as a foremost barrier for firm and to overcome from this, they will use some
methods for globalisation, such as merger and acquisition (Savrul, Incekara and Sener,
2014).
 Culture of every nation is entirely different from other places and this needs to be follow
by individuals effectively. This will help organisation to improve their revenues and
obtain growth. Along with, manager has to take an appropriate judgement for firm
because this enables them to survive at marketplace for maximum period of time (Peng,
2016).
Away with this, there are some other routes as well which could be used by The
Entertainer and these are: Joint venture – This is one of effective approach which can be used by The Entertainer
in order to expand its business at international level where company can join a local
company of the area where it has expanded. Franchising – Another expanding approach that could be used by The Entertainer where
an individual works for the company and gives a fixed percentage to the company and
rest of amount stays for the person who has taken the franchisee.
 Partnerships – A partnership is a formal arrangement in which two or more parties
cooperate to manage and operate a business. Here, The Entertainer could directly
collaborate with its a local venture and through this maximum benefits could be gained
by them.
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CONCLUSION
As per above report, it has been concluded that a firm can successfully expand its
business at global level by considering all the factors in an appropriate manner. Global Business
environment can be understand as constituent that may aid growth of organisations by
influencing them in proper sort of way. Along with this it is important for companies to have
effective administrations which may aid in making effective decisions so that firms both
productivity and profitability can be enhanced. Strategies and plans their which should be made
by management by which organisation can grow smoothly without facing any sort of problems
or issues. Leaders should keep on making alterations whenever it is needed. Away from this,
there are some key elements which aid firms in understanding drivers of trade and commerce as
well.
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