Global Business Challenges and Solutions

This assignment delves into the multifaceted challenges faced by businesses operating in a globalized world. It examines issues such as demographic shifts, technological advancements, ethical considerations, and cultural diversity. The document encourages students to analyze these challenges and propose innovative solutions for sustainable and successful international business practices. It draws upon scholarly articles and UN Global Compact initiatives to provide a comprehensive understanding of the complexities and opportunities presented by global business.

Global Business Environment

CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key factors of cost, market, environment and competition that drive global commerce and
trade..............................................................................................................................................1
TASK 2............................................................................................................................................4
P2 Complexity of strategic challenges faced by organisation while operating in global
environment.................................................................................................................................4
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............................................................................................................................................7
P5 Different ways decision making can work effectively in global context...............................7
P6 Various routes to internationalisation which can adopt by organisation, including key
barriers.........................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Global business environment is dynamic in nature and their chances of modifications are
more. It is really important for an organisation to understand the global environment properly so
that better working could be done (Cuervo‐Cazurra, 2011) . In this project all sections will going
to describe about global environment where a small company the entertainer start commencing
operations. They choose Australia as a global environment where they lead to understand about
the key drives of globalisation. Along with this it will also describe about complexities lead to
arrive at global business environment. Although, management also going to modify their
structure and working culture at the time of globalisation. It will also going to influence decision
making and strategy of a company.
TASK 1
P1 Key factors of cost, market, environment and competition that drive global commerce and
trade
A few components will give effect to organization while keeping up business at worldwide
level successfully or effectively. It is needed for supervisor to recognize them; consequently,
through make an adequate control on them, they will accomplish business exercises
appropriately . In relation to The Entertainer, manager will extend their business in Australia. For
above stated aim, it is essential to develop approaches or strategies; therefore, they will keep up
firm in a proficient manner (Ferraro and Briody, 2013). Hereafter, to lead business at worldwide
level, several required factors should be analysed by association, that are expressed as
underneath:
Competition: Organisation will develop business at worldwide level; that time they will
confront numerous opponents which are working in similar kind of segment. In this manner, to
look after aggressiveness, it is required for manager to make new or most recent sort of items and
administrations for purchasers. Therefore, they will have the capacity to pick up consideration of
various individuals towards their affiliation. They will implement most recent systems into
products which help to improve market segment. This has been dissected that, economy, culture
and also society of another country is totally unique which will render influence to association.
For this purpose, it is required for an employer to outline suitable methodologies or
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arrangements. In context of The Entertainer, they will grow business in Australia; in this manner,
they analysed their rivals appropriately; thus, they will oversee general operational exercises
efficaciously. This helps them to enhance benefits and what's more notoriety at worldwide
commercial centre. Conditions of exchange hindrance is significantly less in light of the fact that
people of that place are embracing new or most recent methods effortlessly which create them
third biggest country who are utilizing web in high array. This will aid organization to develop
their business more successful and in addition productive. Alongside this, it empowers them to
alter business within proper time span, which help them to catch consideration of individuals
towards items and administrations. Moreover, Australia is a developed country so administrative
body advance FDI which assist MNC's to create business more fruitful (Voegtlin, Patzer and
Scherer, 2012) . When the company will expand in this market it will have to compete with
existing companies which are working in the same scenario.
Cost: It is termed as other component which is associated with globalisation which needs
to be examined by organisation in an effective manner. It is major obligation of superior to
formulate procedures properly with the goal that they will effectively render subjective things
and administrations to people at reasonable costs. This will help them to obtain profits by rivals
at marketplace and they will enhance customer base also. Moreover, some other thing which is
identified with taken a toll is known as speculation return rate which will cater gigantic effect on
estimation of merchandise and ventures either in an immediate or aberrant way. The Entertainer
will augment their business exercises in Australia soon; in this way, it is essential for them to
look at general rivals legitimately as it encourages them to decide cost of things and
administrations altogether. Thus, through acquiring hostile advantages firm will effectively keep
up their situation at universal market. Estimation of stock should be adequate by shoppers as they
are considered as an end client of any items. Along these lines, it is expected to fulfil their
requirements and needs capably (Sassen, 2016) . It is advisable for the company to handle all
costs incurred in performing several activities related to business. Mangers and leaders make
effective strategies to have maximum output.
Market: To develop business at international level, it is needed for manager to lead
business exercises in a broad manner so they will pitch merchandise and ventures to people who
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are dwelling distinctive places. As organization is growing their business; subsequently, hazard
factor will maximum however with aid of this, they will enhance incomes and will have the
capacity to get by at commercial centre for most extreme time-frame. It is required for manager
to distinguish showcase nature in a compelling and additionally productive way. This has been
examined that, every individual request or prerequisite is distinctive as they all need to keep up
their expectation for everyday comforts altogether. Subsequently, it is essential for a relationship
to outline techniques as needs be so they will achieve wants of clients inside restricted time-
frame. In relation of The Entertainer, they will expand business in Australia; thus, they need to
get ready systems in proper manner. People who are residing in Australia having their
unmistakable sort of way of life which need to appreciate by association appropriately. As
organization is a toy retailer with the goal that it is necessary for them to fabricate most recent
things and administrations for customers. This has been analysed that exchange snags are
considerably less in that country as a result of an open economy framework. In order to expand
their business operations and activities internationally company select an effective and attractive
place where they trade their all goods and services in an effective and efficient manner. In this
they plan an effective strategies and policies which help to easily accomplish long term targets
and goals easily (Louhiala-Salminen and Kankaanranta, 2011).
Environment: Globalization is termed as a methodology under which organisation
require conducting business at vast level. This empowers them to enhance customer base and for
this aim, it is imperative for them to build deals and generation. This encourages an association
to upgrade share of market with the goal that they will keep up their firm at universal market
capably. In late time, it is basic for each organization to use computerized systems; in this
manner, they will deliver things and administrations in an imaginative way. It helps them to
increase focused advantages from rivals at commercial centre. It is required for an undertaking to
recognize extraneous encompassing of country and for this; they will acquire assistance of some
investigation, for example, PEST, Porter's five forces et cetera. In the event that political
condition of nation is fitting and constant in nature, at that point this will help firm to amplify
business exercises in a compelling and also productive manner. Alongside, they will regulate
operational activities capably and altogether. It is another part which is important for the
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business and its employees to achieve long term goals and objectives in an effective and efficient
manner. In this business entity provide friendly and healthy environment to the each and every
workers which is benefited to the organisation to gain competitive advantages easily.
From this time forward, it is needed for manager of The Entertainer than considered
every single segment; thus, they will have the capacity to advance their business in a successful
manner. Market conditions will change according to tax framework and this is named as a
noteworthy obstacle. This has been assessed that if rate of duty goes high at that point, price of
items as well as services will likewise go high (Werther Jr and Chandler, 2010). This will give
effect to achievement and development of an endeavour since they will be not able achieves
desires and needs of purchasers viably.
TASK 2
P2 Complexity of strategic challenges faced by organisation while operating in global
environment
Present time is full of opportunities where small business wants to operate at wider level
and wants to moderate their name over there and leads to gain competitive advantage as well. It
is really essential to determine all marked opportunities at international level so that better and
determined targets of sales could be enhance and gains. Many small firms lead to take
competitive advantage by employing latest and modern technology internet for selling their
products and services. This will enables them to reach wider market area and generate multiple
number of users as well. This will bring positive reflection as well as chances of generating more
and more profit would become possible . Australia is one of an economy where business could
expand as well as maximise their number of operations as well. The entertainer has to understand
this factor or element properly so that better assessment of work could be done. This will assist
business to generate maximum revenue as well as profit which support in deriving better suited
return but there might b several issues and problems will going to arise in front of management
while operating at global environment (Smith, 2016) . All define issues will evaluated as below
by management of a company when they enter into new market area:
Customer expectations: One of a major factor which have to understand by management
of a company is their customer expectations. Mainly, business operators need to understand their
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needs and demands properly and then used to manufacture products and services. At global level,
number of operators is more which used to deal in differ kinds of services as well as face variety
of individuals whom needs and demands also getting vary from each other (Vogel, 2010). The
entertainer has to determine such expectations and then produce toys and other variety of others
by targeting each and every kind of user. Like for girls they will manufacture Barbie, whereas for
Boys some hard toys. The understanding of customer expectations and demands made their
strategy formulation quite complex in determination. It is one of the main challenge which is
faced by the company while expanding their business operations and activities internationally. In
this expectation of customers about goods, services, process, communication channels and
promotional mix that highly effects on the performance and profitability of enterprise.
Cost: Another important factor which creates complexities and determine challenge for
a business is cost of manufacturing. At global level, cost of producing also more in nature which
create problem for small business as they do not have sufficient fund to deal out various practices
and might be quality of products get compromise. The entertainer has to understand this section
and try to product high quality products by issuing their shares at market area (Tarique and
Schuler, 2010) .
When the company is entering into new market segment it has to face many problems as that
area is new and operation is not so easy. The different are faced by company while entering
another country are legal, accountancy practices, issues of supply chain management.
Organisation has to follow rules and regulations of that country where it is establishing business.
Moreover company ensures in making good relation with suppliers.
TASK 3
P3 Influences of globalisation on organisational governance and leadership, structure, culture
and functions
Organisational governance define as a methodology in which, it is required for
administration to influence a viable control and managing various operations in an appropriate
and suitable manner. At the point when organization will grow their business at worldwide level
then most of the operations of a firm get impacted and their culture also get influence with a
course of time. Various numbers of shareholders as well as stakeholders will lead to get
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connected with business and its working when operations used to take place at wider level. Such
stakeholders contribute some essential portion for management which further assist in managing
operations at wider level consideration which create opportunity for maximise efficiency.
Organization is working their operational exercises in a wide range which will effectively
improve their number of activity; accordingly, benefits get boosted capably. It is required for
director to cook appropriate direction to staff individuals so they will effectively achieve work
inside restricted time frame; else, it will render an unfavourable effect on firm (Simic and
Dimitrijevic, 2012) . It has been dissected that, with help of globalization an undertaking will
effortlessly enhance their benefits and piece of the pie in a successful way. Alongside, to run or
control business legitimately, it is basic for them to discover those components which will give
effect to them either in an immediate or backhanded way.
With governance and operations, business also has to modify their working culture as per
the time. Cultural aspects need to understand and determine properly by management. They have
an option to bring a single culture at every level or area while operating at other country as well
as also could manage their activities by accepting other region culture and their values. This
culture presentation supports in managing task and number of operations properly, so that better
and effective working lead to take place (Globalization Challenges for Businesses, 2018).
On all these aspects, globalisation will going to make positive reflection as new number
of leaders got determine which support in making operations proper. The entertainer will also
become able to grab and understand new culture aspects and norms of various individuals so that
better and effective working could be done. The operations and management become effective
and appropriate in tenure so that chances of gaining better and suitable gain could become
possible. Hence, the influence of globalisation on governance, functions, leadership and culture
will be positive when they lead to start operating at Australia which clearly identify as another
emerging economy (Chand and Tung, 2014) .
Governance and leadership, structure, culture and functions, all these are highly effects
on the performance and capability of the organisation. Thus it will also impacts on the enterprise
capability and performance which is highly important for the business to keep their position in
international marketplace. The company should work upon adopting good leadership style and
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providing positive culture at workplace that will lead to improve performance of employees and
organisation. Power culture, job culture followed in company help in reduction of conflicts and
attaining goals and objectives in specific interval of time.
P4 Influences of ethical and sustainable globalisation on organisational functions
Ethics define as the general values and norms on which an individual used to work. The
ethical values always support an individual to grow and expand their activities in an appropriate
and suitable direction. A firm have to follow all ethical norms and values towards society so that
chances of positive attribute could be done and negative reflection could be controlled. Thus,
ethics influence the business most towards well-being and positive direction which optimise and
support in utilising resources properly. When a business will going to operate at wider level, they
have to determine all defined values and norms associated with working operations. Like they
required to use updated raw material for manufacturing, avoiding environment harmful practices.
The Entertainer need to work in this aspect properly by making activities and operations ethical
in consideration so that better suited growth could be achieve (Lee, Olson and Trimi, 2012).
More number of customers which belong to differ culture create issue to follow ethical norms
but business enable and support in move towards right direction by evaluating them and train to
staff personnel regarding such aspects. Following of ethical consideration lead to contribute
positive aspects otherwise by harming and voiding those chances of negative gain tend to rise
which directly impacted upon profit and customer base of The Entertainer. Some of the elements
which define as ethical practices and directly support in gaining sustainability are define as
follow:
 Follow and determine all cultural aspects and elements which support in deriving better
results and enable in generating more profit and revenue as well (Parhizgar, 2013) .
 Try to follow all laws associated with global environment and paid tax on time. This
ethical contribution towards government always support in creating a good brand image
which further assist in enhancing customer base.
 Use appropriate and environment friendly methods of production which create less
emission gas, noise etc. will lead to reflect positive attribute towards society.
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All these practices have to take place in define and suitable manner where all staff
personnel need training. The Entertainer will only get competitive edge and benefits while
following all these consideration. This will influence positive attribute as well as assist in gaining
competitive advantage and promote and support sustainability. The organisational functions will
also get motivated if the firm have positive image at market area. Thus, chances of gaining better
result become possible as well as business globalisation also become successful in nature.
TASK 4
P5 Different ways decision making can work effectively in global context
It isn't much simple for take a suitable judgement for connection as this will give effect to
whole working procedure either in an immediate or circuitous way. There are various things
which are connected with each other which should be mulled over into by predominant at the
season of basic leadership process. This should be taken by higher specialist and for this, specific
advances will be trailed by them. Alongside, it is must for them to consider partner additionally
in light of the fact that they are having enthusiasm for firm which won't be influenced through
judgement of bosses. In connection to The Entertainer, They will augment their business tasks in
India; thusly, it is required for them to focus on judgement making strategy. On the off chance
that it is taken in a powerful way at that point, staff individuals will get propelled towards work.
On the off chance that it is much proficient at that point, firm will have the capacity to achieve
pined for targets and objectives inside restricted time frame. Accordingly, deals and additionally
benefits of an endeavour will get made strides (Milhauser and Rahschulte, 2010) . From this time
forward, there are fundamentally two sorts of basic leadership which are associated with
association and these are expressed as underneath:
Programmed decision making: In an undertaking, manager has to obtain decision on
continuous basis and this must be taken in a satisfactory way since this will provide food effect
to general task exercises. It has been assessed that nature of these worry is arranged, for instance:
focus on issues which are looking by customers, alter business by actualizing creative
contemplations, various exercises et cetera. From now on, these judgements are much valuable in
nature in light of the fact that with help of this, prevalent of an alliance will effectively keep up
their image picture in nation which empower them to increase positive outcomes altogether.
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Unprogrammed decision making: Whenever, conditions of hazard is very high and
alongside various vulnerabilities will be look by alliance at that point, this is named as
unprogrammed basic leadership. This sort of choices is exceptionally in light of rationale; in this
way, it contains most extreme hazard (Compact, 2014) .
Globalization is termed as a viable methodology and in this, administration needs to take
unprogrammed decision as this depends on rationales and in addition certainties which advances
a successful working. It will help organization to enhance number of exercises in a powerful and
also productive way. This will aid association to keep up their situation at commercial centre for
most extreme time frame.
P6 Various routes to internationalisation which can adopt by organisation, including key barriers
Globalization is termed as a methodology which will aid to develop functioning exercises
more wide. With help of this, firm will have the capacity to upgrade benefits and in addition
piece of the market; subsequently, they will effortlessly generate more revenues as comparison to
their contenders in market. Hazard will be associated with this, which should be considered by
prevalent (Piekkari, Welch and Welch, 2014) . This is essential for an organisation to create most
recent sort of things and administrations for purchasers as this will aid them to pick up
consideration of greatest people towards them .
The Entertainer, is an enterprise which is toy retailer, will expand their exercises in
Australia and for this reason, they will pick merger since it is a compelling alternative for them.
It will assist them to increase most extreme incomes and additionally return; therefore, they will
keep up their situation at commercial centre. From this time forward, in this relation there are
various blocks which will look by association amid globalization and these are expressed as
underneath:
 It is essential for company to organise appropriate fund for business; along these lines,
they will effortlessly achieve their target in a powerful way. The Entertainer will extend
their business exercises; therefore, it is essential for them to use marketing and
promotional exercises as it helps them to catch consideration of various individuals
towards them. By contributing appropriate sum, appropriate outcomes will be
accomplished by big business. Cited association is amplifying their business in Australia,
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where interest rate of FDI is substantially less. Consequently, price is termed as a
principal boundary for firm and to overwhelm from this, they will utilize a few strategies
for globalization, for example, merger and acquisition (Ladegaard, 2011) .
 Culture of each country is totally not the same as distinctive spots and this should be
taken after by people adequately. It will aid association to enhance their incomes and get
development. Alongside, supervisor needs to obtain proper decision for an enterprise
since this empowers them to get by in market for most extreme time frame.
 Every nation is utilizing unmistakable sort of advancements which will be utilized by
organizations who are working their business over yonder. Subsequently, manager has to
use those procedures which assist them to encourage for successful working at work
environment. In relation to The Entertainer, they need to utilize creative instruments
while delivering merchandise and enterprises for individuals since this empowers them to
achieve desired focuses inside constrained time frame (Solomon and et. al., 2014) .
 Instability in governmental issues will be termed as a difficulty for association as
constant change in it will make inconveniences for organisation to direct business tasks.
In this way, The Entertainer has to discover and look at Australia that political gathering
of organization is much steady in nature. Henceforth, they will start their activities over
yonder on the grounds that it is much simple for them to oversee it viably.
CONCLUSION
It get concluded from the project that global business environment is a place where more
and more number of competitors are dealing and taking place and buyers perspective also getting
change with a define course of time. Whenever a business want to expand themselves at global
level, they have to understand about such consideration properly and take appropriate leverage
from that for managing various activities and options. With this project, it derive that at global
level, there are various key drivers get identify whom support in made globalisation easy and
appropriate in tenure. There are various strategic complexities get identify when an organisation
will lead to global environment as customers perspective are differ from each other which have
to understand by managers of a company. Such complexities restrict in order to generate more
profit and revenue as well. Although, organisational culture and aspects also lead to get modify
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at global level which required to understand by managers of a company properly for managing
their operations properly. With such aspects, globalisation also impacted upon strategy and
operational decision making of a company which have to understand by management.
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REFERENCES
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Cuervo‐Cazurra, A., 2011. Global strategy and global business environment: the direct and
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new approach to leadership and its multi-level outcomes. Journal of Business
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Sassen, S., 2016. The Global City: Strategic Site, New Frontier. In Managing Urban
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Louhiala-Salminen, L. and Kankaanranta, A., 2011. Professional communication in a global
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Ladegaard, H.J., 2011. ‘Doing power’at work: Responding to male and female management
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Solomon, M.R and et. al., 2014. Consumer behavior: Buying, having, and being (Vol. 10).
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Online
Globalization Challenges for Businesses. 2018. [Online]. Available through
:<https://yourbusiness.azcentral.com/globalization-challenges-businesses-22245.html>.
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