Global (PDF) Business Environment Assignment | Cameco

GLOBAL BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
LO3..................................................................................................................................................1
A) The influence of globalization on organizational governance and structure, leadership,
culture and functions....................................................................................................................1
B) The influence of sustainable and ethical globalization on organizational functions. ............3
LO4..................................................................................................................................................4
A) The different ways of decision making which can work effectively in global context..........4
B) Determine and articulate various routes to internationalization and organisation may adopt
including key barriers..................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
A global business environment is concerned with environment of different countries
along with exogenous factors to present environment in which business currently dealing
(Chorafas, 2016). This influence decision making related to the use of resources and
capabilities. This report will covers details about the Cameco and their global business
environment. Cameco is a largest supplier of uranium. Cameco stands for Canadian Mining and
Energy Corporation (Laszlo, and Cescau,2017). The company is deals in activities of mining
and supplies energy. This report will cover influence of globalisation on Cameco's structure,
culture and leadership. The report will lay emphasis on sustainable and ethical globalisation on
functions of organisations. Also, the different ways of decision making can opt by company will
also be discussed in this report. Various routes for internationalization will be determined along
with a brief explanation of barriers.
LO3
A) The influence of globalization on organizational governance and structure, leadership, culture
and functions.
McKinsey's 7S Model
In 7S McKinsey model hard and soft elements are included. The hard elements aims at
different matter of organisation could directly influence (Laszlo, and Cescau,2017). Hard
elements are mainly Structure, Strategy, Systems. Here this model will be apply on the
organisation Cameco. Structure – The organisation structure of Cameco is hierarchical which includes board of
directors for supervising management of business and related affairs (Beifert, 2015).
Also, the chief executive officer is there to manage affairs of businesses which are
conducted by management and employees (Laszlo, and Cescau,2017). Strategy – The Cameco will energizes the world by providing fuel to supply a clean air
power of nuclear in order to become a global leader. The company formulate strategy to
become global leader in supplying Uranium (Pawitan, Nawangpalupi, and Widyarini,
2017). The strategies are set with a context of challenging environment of market and
driven by increasing demand of electricity by rapid increase in population.
 Systems – The Cameco follows methods of operations mainly they are formals. Also,
the procedures and flow of communication flows from upward to downward. All the task
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are assigned to subordinates in this company are followed by them and the subordinates
are accountable to their superiors of Cameco (Lisowska, and Stanisławski, 2015).
The soft element includes the elements are more abstract and found in culture of
organisation. The soft elements are Shared values, staff, style and skills. Shared values – The value statement of Cameco is to fulfill the vision of the company
and to attain goal for being the partner, employer, supplier and investment in industry of
nuclear (Pawitan, Nawangpalupi, and Widyarini, 2017). The values of company
Cameco is guided by providing safe and quality environment to employees. The Cameco
also focuses to maintain integrity and excellent atmosphere to satisfy employees and to
ensure long term competitiveness (Beifert, 2015). The company values the contribution
of employees in their workplace. Staff – The Cameco's employees are very efficient as the company provides proper
training to them related to their work (Lisowska, and Stanisławski, 2015). Therefore,
the employees are satisfied. The company also offer healthy and safe environment to
them this enables them to retain with the organisation and they remain loyal with the
company (Laszlo, and Cescau,2017). The company offers them benefits like perks,
bonuses, recognition, etc in order to motivate them. Style - The leaders of company Cameco follows democratic leadership style which
enables nature of participative in critical decision making. The involvement of team
members are always there in decision making. Also, the company follows management
style of Laissez faire in which manger act as mentor and provide guidance to employees
and encourage them to take risk.
 Skills – The Cameco ask employees for their contribution in important decision making
of the company (David, and David, 2016). This gives employees feeling of belonging
and they work to attain organisational goals.
Hofstede Dimensions of culture
This theory is developed to understand the differences in different culture which is across
countries (Laszlo, and Cescau,2017). This theory also suggest the ways in which business
operations can be executed in different culture. Low power distance vs high power distance – The power distance is measured by
existence of inequality with power and without power. The high power distance
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represents strong hierarchical relationship which indicates inequality and difference in
power but in low power distance equality is there. This encourages flat organisation
structure where power of decision making is equal (Wu, and Huarng, 2015). Company
like Cameco follows high power in delegation of tasks and low power in critical
decisions of the company related to growth opportunities and innovation (David, and
David, 2016). Individualism vs collectivism – This factors determine degree to which society integrate
into groups. In individualism, persons are more concerned towards attainment of
individual goals whereas in collectivism, group work is priority and attainment of group
goal is preferable by organisations (Beifert, 2015). The employees of company Cameco
follows both approach of individualism and collectivism. The company is concerned to
satisfy individual goals of employees in order to satisfy them and also group goal to
achieve organisational goal (Laszlo, and Cescau,2017). Masculinity vs Femininity – This is dimension between tough and tender (Desai, 2016).
The Masculinity dimension comes with role of assertive, concentrated and wealth
building while femininity is concerned with modest, quality of life and nurturing
(Picciotto, and Mayne, eds., 2016) . The culture of Cameco represents masculinity
dimension, as the company is very assertive towards their goals and building of wealth. Long term orientation vs short term orientation – This orientation focuses towards
extent to which view of society in their horizon of time. Long term orientation involves
perseverance, growth of long term, and persistence. While short term orientation
emphasizes on tradition respect and quicker results (Lisowska, and Stanisławski, 2015).
The Cameco is focusing on long term orientation and work accordingly to attain long
term goals, success and growth. Sometimes they also follow short term orientation while
they are dealing with sales target achievement.
 Indulgence vs Restraint – Indulgence focuses on society which allows free and joyful
life while restraint is concerned with following of social norms (Lisowska, and
Stanisławski, 2015). The company Cameco is following both of the dimension like they
follow indulgence within organisation in order to attain free and friendly relationship
between superior an subordinate but they also follows restraint dimensions while dealing
with society regarding to quality of products and service they offer (Beifert, 2015).
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B) The influence of sustainable and ethical globalization on organizational functions.
The business ethics affects organisation like Cameco in decision making. The company
delays in their decision making when they are not following ethical behavior in their
organisation. The company treats their employees with respect and recognition is also given to
them for their valuable engagement (Lisowska, and Stanisławski, 2015). The Cameco works
ethically and also maintain good relationship with their customer. Cameco always attract their
customers by true and fair picture of quality of their products (Pawitan, Nawangpalupi, and
Widyarini, 2017). They did not opt for any misrepresentation or any kind of misconduct in their
organisation. Therefore company is able to manage their functions smoothly and also attain
success in approaching global context.
As the company Cameco is the world's largest provider of uranium fuel so they need to
maintain efficiency and effectiveness while transferring and production of fuel (Hernandez, and
Ona, 2016). The company need to use every resource with full efficiency in order to maintain
sustainability for future. The Cameco maintains and use available resources with great efficiency
(Desai, 2016). So the company able to manage their business in global market and can satisfy
their customers by providing fuel according to their demand. The company while adopting for
globalization also undertake technological advancement for their growth and sustainability.
LO4
A) The different ways of decision making which can work effectively in global context.
Different ways in which work of Cameco affects in global context. There are different types of
decision making : Directive style of decision making – These decisions are based on experience,
knowledge, rationale of the leader. This decision making is quick and ownership of
decision making is also clear (Lisowska, and Stanisławski, 2015). This style does not
require communication. The directors of Cameco uses this style of decision making to
manage critical decision which need to be executed by only experience holders. Analytic decision making style – This decision making style is concerned with examine
relevant information. The leaders in Cameco relies on historical observation of data, seek
information for other sources and take advise from other in order to set sales target and to
analyze competitors activities (Hernandez, and Ona, 2016). By analyzing all the data the
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company Cameco able to work effectively in global market and able to attain their sales
target.
 Behavioral style in decision making – The company Cameco does not follow this style
of decision making but can opt this style for attaining effectiveness (David, and David,
2016). The leaders of organisation who follow this style of decision making believes in
participation of management and also considers their suggestions and achievement grant
to sub ordinates for their contribution (Głodowska, 2017). The company in order to
motivate their employees can follow the behavioral style and may able to manage work
effectively in global market.
The decision making in Cameco is highly concerned and taken seriously by the
organisation (Lisowska, and Stanisławski, 2015). Cameco can follow behavioral style of
decision making for attaining effectiveness in global market. Although the company is adopting
decision making style that is analytical and directive. These styles are also offering effectiveness
in working of company in global context and laid Cameco towards growth and success.
B) Determine and articulate various routes to internationalization and organisation may adopt
including key barriers.
The Cameco can opt for routes which will be discuss below for internationalization. They are
exporting and acquisition. Below will be the brief explanation of these routes will be discussed :
 Exporting – An exporting is an easiest route to enter in international market. Most
businesses begins their global expansion by using this entry route. Exporting is a sales of
services as well as products in countries other than home country. The company Cameco
can opt for this route by export their uranium products in foreign countries. This will save
cost of establishing in foreign country (Pawitan, Nawangpalupi, and Widyarini, 2017).
So, for the company Cameco it is the fastest route to enter in foreign country with low
risk.
◦ Barriers – The company's have low control on their products while exporting. Also,
this causes negative impact on environment during transportation.
 Acquisition – A business can also opt for acquisition route for entering in foreign
country. In this route, one firm gets control of another firm by exchanging stocks of one
company another company can execute acquisition. For fast entry in foreign market this
is the best route because by acquisition of a established company, Cameco can gain a
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huge brand value and goodwill in new market they enter into by acquisition (Lisowska,
and Stanisławski, 2015).
◦ Barriers – The cost of acquisition of any company is very high which will increases
the overall expenditure of a company (Simpson, 2016). Also, cultural difference can
be act as a barrier and this can be cause of failure of acquisition.
These are some routes which can be opt by the company Cameco for internationalization (David,
and David, 2016). Although they have key barriers but if adopted carefully by proper analysis
Cameco can attain success and growth in industry as well as in global market.
CONCLUSION
The report was concluded about global business environment for the company Cameco.
The report begun with McKinsey's 7S model and Hofstede model of culture. After that ethical
and sustainability of globalisation for organisation functions was explained. Then comes
different ways of decision making such as behavioral, directive, etc. At last the report was
discussing about routes of internationalization and key barriers were also highlighted in this
report.
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REFERENCES
Books and Journals
Beifert, A., 2015. BUSINESS DEVELOPMENT MODELS FOR REGIONAL AIRPORTS--
CASE STUDIES FROM THE BALTIC SEA REGION. Journal of Security &
Sustainability Issues. 5(2).
Chorafas, D. N., 2016. Energy, environment, natural resources and business competitiveness:
the fragility of interdependence. Gower.
David, F. R. and David, F. R., 2016. Strategic management: A competitive advantage approach,
concepts and cases. Pearson.
Desai, N. S., 2016. Mobile cloud computing in business. International Journal of
Information. 6(1), p.2.
Głodowska, A., 2017. Business Environment and Economic Growth in the European Union
Countries: What Can Be Explained for the Convergence?. Entrepreneurial Business and
Economics Review. 5(4), pp.189-204.
Hernandez, A. A. and Ona, S. E., 2016. Green IT adoption: lessons from the Philippines
business process outsourcing industry. International Journal of Social Ecology and
Sustainable Development (IJSESD). 7(1). pp.1-34.
Laszlo, C. and Cescau, P., 2017. Sustainable value: How the world's leading companies are
doing well by doing good. Routledge.
Lisowska, R. and Stanisławski, R., 2015. The cooperation of small and medium-sized enterprises
with business institutions in the context of open innovation. Procedia economics and
finance. 23. pp.1273-1278.
Pawitan, G., Nawangpalupi, C. B. and Widyarini, M., 2017. Understanding the relationship
between entrepreneurial spirit and global competitiveness: Implications for
Indonesia. International Journal of Business & Society. 18.
Picciotto, S. and Mayne, R. eds., 2016. Regulating international business: beyond liberalization.
Springer.
Simpson, D., 2016. Cultural intelligence as an important attribute of global
managers. International Business and Global Economy. 35(2). pp.295-308.
Wu, C. W. and Huarng, K. H., 2015. Global entrepreneurship and innovation in management.
Online
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About Cameco. 2019. [Online]. Available through : <https://www.cameco.com/about>.
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