Effects of Sustainable and Ethical Globalisation on Organisational Activities and Functions

GLOBAL BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION................................................................................................................................3
P1 Analyse key factors of cost, market, environment and competition that drive global commerce
and trade...........................................................................................................................................3
P2 Explain the complexity of strategic challenges faced by organisations when operating in a
global environment supported by specific examples.......................................................................4
P3 Evaluate the influences of globalisation on organisational governance and leadership,
structure, culture and functions........................................................................................................5
P4 Analyse effects of sustainable and ethical globalisation on organisational activities and
functions...........................................................................................................................................6
P5 Analyse the different ways decision making which can work effectively in global context......8
P6 Determine different path to internationalisation an enterprise ................................................10
CONCLUSION- ................................................................................................................................11
REFERENCES...................................................................................................................................12
Books and journals.........................................................................................................................12

INTRODUCTION
Market is expanding and competition is rising with a rapid speed due to which companies
are enhancing their business at global level. Global environment in business refers to surroundings
in different region of countries which affect the resources and decision making process of business.
Every corporation has different types of strategies and tactics of doing business and on basis of
those factors they operate their functions globally (Kasemsap 2016) . CM Downton is a leading
logistics company headquartered in UK. In this report, topics that have been covered are
analysing factors of cost and market that drive global commerce and trade , complexity of strategic
challenges faced by firm , effects of ethics and sustainability in context to globalisation, operation
functions, different entry to international business / barriers and decision making process methods.
P1 Analyse key factors of cost, market, environment and competition that drive global commerce
and trade.
Globalisation is defined as the process through which the people are interconnected to
each other and it involves the combination of the several companies and governments throughout
the world(Hamilton and Webster 2018). It is the development of the products, technology and
other cultures by providing them the best job opportunity. It is a concept which includes the
international trade with the new technologies.
Cost factor -The cost factor refers to the trading of goods to the other countries which
includes currency tax and duties that are affected by the market at a global level. While, sales and
purchases of the products and services into the competitive market. Further, it involves the
imports and exports that should be considered high costs in expanding the business
internationally into the other markets. High costs lead to the low profitability in the existing
market(Doh, Luthans and Slocum 2016). In context to C M Downton Ltd, it has the low cost
while it provides the logistic services in order to reduced the tax rate while importing and
exporting
Market factor -The market factors are affected by the demand of the customers for the
similar products and services could increased in various parts of the world. When it explore its
business throughout the world various market costs are included such as transportation costs,
tariff barriers etc. This involves the highest cost in importing and exporting the products and
services and usage of different marketing channels in the foreign trade. The manager of C M

Downton Ltd found the best strategies for reducing the market cost which leads to the high
profitability in the business. It could helps in minimizing the cost of the products and sevices
which isd provided by the company.
Environment factor- each and every company has its environment which is affected by the
competitors in the market. It further includes social, technological factors which are important for
making business strategies. This factor affects on the geographic conditions such as physical
features, climate etc. the market that determines the opportunities and threats of the business. In
addition to this, this factor emphasis the nature of the company in order to gain the challenges faced
in the development of the products. With reference to C M Downton Ltd the manager of this
company provides the use of vehicles and ships which produce less emission of Co2 gases.
Competition factors - this factor avail the products and services in the competitive
companies to assist in the international market. In the global market, the company increases its
competition to be forced by the organisation. It helps to understand the companies strengths and
weaknesses within the foreign competitors (Berman and Dalzell-Payne 2018). Further, it is
interdependent between the countries. Competition are on the basis of the buying and selling of
the products by foreign trade which enhances their sustainability in the market. In context to C M
Downton Ltd this could improve the product quality in order to meet the competition among the
existing companies. It involves the brand recognition in the boundary of the country. Hence,
foreign companies have the higher competition with the local companies to meet its goals and
objectives.
P2 Explain the complexity of strategic challenges faced by organisations when operating in a global
environment supported by specific examples.
Strategic challenges refers to the organisation's possibilities and capabilities which would
succeed in the future. It is a strategy which leads to the misleading of the communication and
lack of leadership(Wei, Thurasamy and Popa 2018).
Communication difficulties and cultural differences it is referred to the good
communication among the workers or employees to meet the best strategy of the business.
Productive communication with the clients and the customers is important for the growth of the
business. This includes the barrier which is non-verbal communication that may break the
business contracts with the clients. In context to C M Downton Ltd the manager of this company
could have the good communication skills between the customers in order to acquire the future
growth of the business. For example, if a client is exporting their product to the other client that
they cannot recognize their language which leads to the barriers in the communication.