Global Business Environment.

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
P1 Key factors of cost, market, environment and competition that drive global trade..........3
P2 Complexity of strategic challenges faced by organisations at global level.......................4
P3 Influence of globalisation on governance, leadership, structure, culture and functions...7
P4 Influences of ethical and sustainable globalisation on functions......................................9
P5 Different ways decision making can work effectively in a global context.......................9
P6 Routes to internationalisation an organisation may adopt, including key barriers.........10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Global business environment can be defined as the area whereby 2 or more than two
organisations function with a view to enhance their revenues as well as profits in the long run. In
this regard, global business environment encompasses macro as well as micro environmental
factors. Both these categories place a significant influence over the operations of a business as
well as the output delivered by it (Adekola and Sergi, 2016). The present project is based upon
CM Downton Limited which is acknowledged to be one of the leading private owned logistic
companies of United Kingdom. This organisation has been functioning strongly within the
confines of concerned industry and offers customers with unique and effective services, better
than those of rival firms. CM Downton got acquired by a private equity investor of Hong Kong
named EmergeVest in the year 2018. This move was executed with the sole motive of enabling
innovation and constant investment in future course of time. Over the course of time, the
working philosophy of this company has been to deliver what the customer asks for.
The project consists of elements that foster global commerce and trade. Further, it
encompasses complexity of strategic challenges encountered by companies at international level
along with impact of globalisation over structure, culture, functions, governance and leadership.
Besides this, the project constitutes influence of ethical and sustainable globalisation upon
functions of company. Lastly, ways to enable decision making work at international scale and
routes to internationalisation along with their constraints are covered.
P1 Key factors of cost, market, environment and competition that drive global trade
Driving factors of global commerce and trade are defined as the elements which facilitate
an organisation to conduct business activities at international scale. They provide assistance to an
enterprise in offering their products and services beyond the territory of domestic country. In
other words, it can be said that driving factors facilitate free flow of capital and goods (Gaspar
and et. al., 2016). In relation to CM Downton, it has been analysed that there are a number of
factors which drive the organisation to foster global trade and commerce. These are described in
a brief manner as follows:-
Technological Drivers: The advancements which take place within the domain of
technology facilitate the organisations to indulge in free flow of merchandise at international

level. In this regard, it has been analysed that CM Downton can make use of digital technology
with a view to gain access into foreign markets and thereby inflate its profitability.
Political Drivers: Deregulated market as well as liberal trade legislation may result in a
decline in tariff rates (Kasemsap, 2020). Such course of action persuades the organisations like
CM Downton to undergo FDI, thereby facilitating easy entry into foreign market.
Competitive drivers: The modern era can be referred to as the era of cut-throat
competition. This encourages the companies to enhance their scale of operations by seeking
entry into new markets (Doh, McGuire and Ozaki, 2015). This facilitates CM Downton to gain
access into new markets and thereby enhance its presence at global scale.
Market Drivers: The rising market saturation consequently resulted into the creation of
constraints for business growth and development. Opposed to this, globalisation has generated
opportunity for CM Downton to expand into foreign territories and thereby increase its revenues
and customer base.
P2 Complexity of strategic challenges faced by organisations at global level
The strategic challenges are those barriers that are generally occur at the time of
operations and executions of tasks and operations in the business of company. These strategic
challenges affect the workings of the respective enterprises on the national as well as on global
level. These errors take places as an effect from the macro and micro environmental factors.
Such factors are quite impactful in the decision making of the management as these
environmental aspects restricts the operations and certain activities of the business (Nohria,
2017). Thus, as a result from that the chances of getting loss and failure gets increased in the
process of business. The firm's management can evidently check for the solution for problems
and rectify the mistakes of the firm regarding a factor. In this regard, it has been identified that
the strategic challenges for CM Downton while entering international markets can be:-
Unfamiliar cultures and language- It is one of the factors which can generate
challenges for the company to operate internationally. In context of CM Downton, when the
company expand its business operate its business into new market or nation then there are
various issues and challenge related to culture and language will occur. CM Downton is
expanding into Hong Kong while at present it operates in UK. Hong Kong has a population base
of 7 million whereby 95 % out of them are acknowledged to be Chinese. Thus, Cantonese is
recognised to be the most commonly spoken dialect within the nation. When it would operate in