Report on Global Business Environment (DOC)

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:
1

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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