Global Business Environment Report on Nike

GLOBAL BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key factors which drive global commerce and trade.............................................................1
TASK 2............................................................................................................................................3
P2 Complexity of strategic challenges faced by company in global market..............................3
TASK 3...........................................................................................................................................4
P3 Evaluate the influence of globalisation on organisation........................................................4
P4 Influences of ethical and sustainable globalisation on organisational functions..................5
TASK 4............................................................................................................................................7
P5 Evaluate ways, decision making can work effectively in global manner..............................7
P6 Determine the various routes to internationalisation.............................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Many big companies are established in different country of world and also look further to
expand their business in other remaining country and cities too. Firms do make research and
strategies before going out in several places as because of various cultures and norms various
people and places have (Trompenaars and Hampden-Turner, 2011). Bringing enterprise in global
part make organisation to become aware of environment as because government of different
country has their own protocols of running a business. Report is based on NIKE and it was
founded by Phil Knight and Bill Bowerman although it was founded in year 1964. Organisation
is being considered as top firm in manufacturing athletic Footwear and mainly NIKE has
invested their amount in design, quality and marketing as well. Assignment will include factors
like cost, market and environment although company has to also face complexity in strategy
challenges with global environment, influence of globalisation on organisation and making
decision in various ways and determining the various routes for making business
internationalisation. All such will company to bring effective working in different market
environment.
TASK 1
P1. Key factors which drive global commerce and trade
Global business environment has to be kept in mind while making strategy and decision
so that effectively work can be done in better manner too. There are various key factors which
drives the global trade and commerce in various ways and thus they also affect efficiency of
company in better working too (De Jonge, 2011). Some of key factors are as follows:
COST
It is such which is being occurred in production, research and marketing etc. although it
can be said as cost is somewhere the value of money which is used in creating or producing
something with quality or to provide any service and although not being available for further use.
The forces of globalization have continued to evolve, as manufacturing continuously shifts to
lowest-cost labour markets, fostering significant change in the modern era of business and one of
the biggest effects is pricing pressure. Globalisation also reduces trade rates and taxes by which
business associations, i.e. Nike can easily expand their business over the world and sell their
products at lower prices.

Key factors are as:
Direct cost: This is that which is being identified with the some particular or specific
cost centre or having cost end too like department, process and product as well. This is that
which consider all those thing as (Labour, material and power etc.), although they are such which
are taken under the control and also the responsibility of various department manager. Normally,
some costs are considered as fixed in short period and variable for long run too.
Indirect cost: An expense which occur anytime like (Advertising, maintenance and
supervision, etc.) and somewhere it also incur with the joint usage too and it is being identified
like having a specific cost with the cost centre as well. Indirect cost is that which are constant
and stable in market for the wide range of different output too and it has also seen that as it is
being considered as fixed cost as well (Ferraro and Briody, 2017).
MARKET
Market is being called as place where the different people come and exchange product
with money and although market does also change with time and bring various criteria in
working of organisation too. Globalisation of markets put a huge impact on economic
transactions, processes, institutions, and players is dramatic and wide ranging. It creates
opportunities for multinational associations who are proactive and visionary. Many companies
have become disillusioned with sales in the international marketplace as old markets become
saturated and new ones must be found. Key factors of marketing are as follows:
Labour market: This is that which consider the people who can work and looking
forward for the jobs in country and although this is related with number of jobs available in
country of market too. They are included in driving the commerce and trade of country and
considered as key factor in better working as well.
Market for Raw materials: Raw materials are substance and having production of
various goods as well. Some of raw materials are being referred to commodities and which is
being bought and also sold in worldwide criteria (Colfax, Rivera and Perez, 2010). They are
being determined as factor market as because this is such and also being raw material for factors
of production, although this also consider the labour and capital too.
ENVIRONMENT