Influences of Globalisation on Organisational Functions

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Analyse key factors of cost, market, environment and competition that drive global
commerce and trade....................................................................................................................1
TASK 2............................................................................................................................................1
P2. Explain the complexity of strategic challenges faced by organisations...............................1
TASK 3............................................................................................................................................1
P3.Influences of globalisation on globalisational governance and leadership, structure, culture
and functions...............................................................................................................................1
P4. The influences of ethical and sustainable globalisation on organisational functions...........1
TASK 4............................................................................................................................................3
P5. Evaluate different ways of decision making that can work effectively in a global context. 3
P6. Various routes to internationalisation an organisation may adopt including key barriers....4
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Global business environment refers to an environment in which companies operate their
business actions and operations. It consists politics, technology, culture and economics and at
time of business operations, the management of a company include these all factors in its
business. When a firm operate its business in global business environment then it should be
aware about the changes which are occurred in the business and affect it in favourable and
unfavourable manner (Aithal, 2017). This assignment is based on C m Downton Ltd which
operates its business in logistic and supply chain management industry. This company was
incorporated in 1955 as an independent logistics firm. This written document will discus about
key factors that drive globalisation and strategic complexities associated with operating in a
global environment. Further, will cover information about influences of globalisation, effect of
ethical and sustainable globalisation. Different ways of decision making and various routes of
internationalisation will also describe that can adopt by companies.
TASK 1
P1. Analyse key factors of cost, market, environment and competition that drive global
commerce and trade
The process in which individual, companies or governments of different countries or nations
come together to carry on international trade is known as globalisation. Globalisation has an
effect on all the functions of business. Major factors that results in globalisation are cost,
market, environment and competition. These driving forces are mentioned below-
Cost factor- The cost of all goods or services differ from one country to another. Cost
drivers also include cost of raw materials, labour etc. All these factors help a firm to be cost
competitive in local market as well as in market overseas. Global sourcing is finding out low
cost raw material from around the world. With help of it business profits can be increased
through cost reduction and increased revenue in global market. Downton looked into all of
these factors carefully before going for globalisation.
Market Factor- Demand, supply, equilibrium, prices or products etc. are called as
market factors. Due to saturation of domestic market, opportunities in global market have
increased (Gaganis, Pasiouras and Voulgari, 2019). Downton is a logistics company and
globalisation of any other company indirectly affects it. When companies go global, they will
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need logistics to export their products. Downton is taking benefit of this market situation while
executing plans for expanding its operations to other countries.
Environment factor- The surrounding in which a business operates is called
environment. Environment consists of major factors which are social, technological, legal and
political. Downton took care of all these factors while going global (Wang and Peyvandi, 2018).
The rules and laws, social norms and government intervention, all these matters were looked
into by Downton in each country it expanded to.
Competition- Competitors are the major threat a company might face in a market.
Therefore, its becomes very important for a company to analyse their competitors before
entering into a foreign market. Wincanton plc, Purolator, CEVA Logistics, XPO Logistics are
some of the major competitors of Downton. Company critically looks into working of all its
competitors , their strategies and technologies used by them before globalising.
There are a number of challenges faced by company going global. Downton being a
logistics company have different set of challenges faced by companies dealing in this segment.
One of the major difficulty is supplying to high-profile and cultural events. A suitable supply
chain has to be made to meet specific demands of these specific customers. These cultural
events are unique projects. Failure in delivering these services could negatively affect goodwill
of company. Along with these challenges Downton also have a number of opportunities. All
multinationals need a partner to carry on their logistics business. Also with globalisation number
of technological innovations are being introduced to make job of logistics company hassle free.
These innovations include upgraded weighing scales, IT developments and technological
advancement in warehouses. Downton have utilised all these opportunities of globalisation and
continues to have a strong foothold in logistics market globally.
TASK 2
P2. Explain the complexity of strategic challenges faced by organisations
Globalisation refers to trading or carrying on a business worldwide. Globalisation is a great
opportunity for developing countries to modernize, provide job opportunities to its unemployed
population and also develop infrastructure of country. Globalisation promotes integration of
international, national and regional economies (Rupidara and Darby, 2017). The factors which
influence globalisation are mentioned below-
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