Business Environment and Globalization

This assignment requires an in-depth analysis of the business environment of small to medium-sized enterprises (SMEs) in specific regions. The focus is on understanding how globalization affects SMEs' operations, including their ability to compete globally and adapt to changing market conditions. The task involves reviewing relevant literature, identifying key attributes of the business environment, and examining the role of e-commerce and cloud computing in global business. A critical aspect of this assignment is recognizing the social responsibility of international businesses and their impact on sustainable development.

Global Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Key elements of cost, market, environment and competition that drive global commerce
and trade......................................................................................................................................1
TASK 2............................................................................................................................................3
P2 Complexness of strategic challenges faced by organisation while operating in global
environment.................................................................................................................................3
TASK 3............................................................................................................................................4
P3. Cause of globalisation on organisational governance and leadership, structure, culture and
functions......................................................................................................................................4
P4. Effects of ethical and sustainable globalisation on organisational functions.......................6
TASK 4............................................................................................................................................6
P5. Various ways through which decision making can work effectively in global context.......6
P6. Assorted routes to internationalisation which can adopt by organisation, including key
barriers.........................................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Global business environment is stated as a concept where there are number of
organisation for the distinctive sectors and thus mainly reveals for bringing improvisation within
profit margin along with increasing the goodwill within the international market. It is highly
essential for the management of company who is mainly focusing upon business enlargement at
very new place for evaluating all kind of factors which in turn affect the ratios of profit and
production (Apăvăloaie, 2014). Globalising for the company simply means about business
development at the international level where they will be dealing with the human needs,
competency and other foreign factors. Company taken for this kind of report is Entertainer which
is a manufacturing UK company which deals in making up of toys. This company for expanding
business in South Africa. There are various factors which are being discussed within this report
like drivers for global trade and commerce. Besides this, there is complexity for strategic
challenges which has been enclosed. In last, this report will put light on impact made upon
decision making process along with few of the barriers which in turn can affect the profit ratios
of company.
TASK 1
P1. Key elements of cost, market, environment and competition that drive global commerce and
trade
It is highly essential for a company who is dealing in market to understand the global
environment along with enlarging the company operations area at the target place. Hence, there
are various kind of factors for this kind of environment which in turn can make impact upon the
brand value along with profit ratios. There are number of issues which are being faced by the
company when they set up their foot in new geographical area and those issues are related to
barriers, competitors legislations, taxes and so on (Axelrod and VanDeveer, 2014). But in
modern scenario, it has been observed that there are various factors like cost, market which can
make positive impact upon the productivity and profitability within the international market. In
this aspect, it is highly essential for the management for the Entertainer to get the position of all
kind of foreign exchange which in turn can make impact upon the business which can wide up
the scale. Below described are the factors:
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Competition: In this kind of factor, company mainly focus upon the gaining the position
within marketplace and thus expanding the business at the international level. There is impact
made by the strong competitors specially upon the productivity and profitability ratios which in
turn can mainly introduce the products in recent manner. Hence, it is highly essential for the
company for determining the products along with working style, technology utilised by the
competitors. By the help of this, effective and better decisions can be made by the management
in order to gain the competitive advantage. This in turn will help in analysing the actual needs
and wants and thus fulfil it in better way (Belás and et. al., 2014). In order to bring sustainability
within company and marketplace, it Is highly essential for the company to hit the targets and that
too for a longer period of time. There are toy manufactured by the Entertainer and thus they try
to bring improvisation by implementing innovative ideas. At this moment, it has been mainly
analysed that the South Africa is the good place where the business can be expanded as it is a
developed country. Along with this, there are other companies as well who manufactures the toys
for children.
Cost: While extending business at global level it is compulsory for an endeavour to find
everything for the components which may help them in decreasing costs of items and
administrations. This may help them in getting consideration of purchasers in abundant number.
Alongside this, it has been dissected that making quality items with less sum each and every
client searches for. Along these lines, targets can get hit by administration by thinking about
every one of the necessities of shoppers, Far from this, it has been inspected that when a firm
enters global level there cost of items and administrations get increments. Along these lines, it is
compulsory for administration of The Performer to find every one of the components through
which they can limit cost of items and administrations with the goal that they can maintain at
commercial centre of South Africa. With the assistance of this, they may pick up or make great
brand picture before social individuals of South Africa.
Market: It becomes highly essential for the company to analyse the market specially
when they mainly look out for the business operations enlargement at the new place where they
do not have the information about culture along with environment (Belás and et. al., 2015).
Certain strategies and plans can be made which in turn can help out in accomplishing the
objectives in allocated period of time. There are various kind of high risk involved within the
business which in turn can make negative impact upon the productivity and manufacturing up
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the products as well. Hence, it is being needed by the company to analyse the market in
appropriate manner for the geographical areas where they will be expanding the business. After
having the data, there are some of the modifications which are being done for the products and
services for better serving up the people at the targetted people. It is needed by the Entertainer
company to analyse the market and thus mainly determine the actual needs and wants of
customers and thus provide products by which maximum level of satisfaction can be given.
Environment: This kind of factor is highly essential for the company which needs to be
considered by the management specially while manufacturing up the certain goods and wants.
Entertainer company mainly deals in making toys which certainly involves non-biodegradable
components in it and that can give harm to the environment. So it is highly essential for the
company to create awareness about this topic or create non-hazardous elements. This in turn will
uplift the brand value of the company along with customers loyalty (Carneiro and Brenes, 2014).
This will change the perception of the people as there will necessary modifications which will be
done as per the needs which do not loose up the products and services which can be offered by
them. PESTLE Analysis can be done by the management by the Entertainer along with some
external factors which in turn can make impact upon the running business at international level.
Hence, this is highly essential for the company like Entertainer which can be understood
by all the above factors which can be explained before launching up of products and services.
This in turn will allow the company to have competitive advantage along with hitting up of
targets for improving the margin of profit along with reputation in social people.
TASK 2
P2 Complexness of strategic challenges faced by organisation while operating in global
environment
In the present situation, most of the companies are mainly seeking out for brining
improvisation within business and thus mainly introduce the services and products at an
international level in order to generate revenue. There are various kind of modifications which
can be done within products and thus by that foreign cultures can be understood along with
realising the tax systems within the foreign country which in turn can provide help in attaining
all kind of desired goals along with objectives in better way. There are various kind of strategies
which are being formulated by the management of company to utilise in delivering up the
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products and services. Company has made their internet application by which products can be
purchased by consumers at anywhere (Cavusgil and Knight, 2015). Numerous kind of facilities
which should be given like home delivery, money exchange and many other attractive offers so
that interest of customers in the products for a long period of time.
Different cultures can be found in South Africa which are being followed by the citizens .
Hence, there are complexities which can be faced for formulating new kind of strategies and
action plan. Hence, some of the issues which company can be go through at the international
level which are described below:
Customer expectations: It is highly essential for the managers of the Entertainer to
determine the factors which in turn can mainly create the issues for operating the business in
effective manner. There are certain expectations which can mainly vary from place to place
along with demand of products when comparison is being done with other sphere. Hence, it is
highly essential for the company like Entertainer to look forward to the needs of customers along
with the some of the changes within products. Customers are being targetted by the company for
the age group of 3 to 15. Hence, it is highly essential for the company to mainly organise the for
allocating needs and wants for small kids and thus make the toys in order to sustain within the
marketplace for long period of time.
Cost: There are various kind of operational activities which are mainly carried out along
with number of risks. In this, company can undergo with many kind of issues specially while
planning and thus developing the strategies. In this situation, if there is high cost of products then
the objectives will not be able to complete (Cohen and Kietzmann, 2014). This has been mainly
analysed that the products cost can be improved due to numerous reasons like excise duties,
taxes and other factors. Hence, it is highly essential for the administration of company to
formulate effective planning which in turn can mainly reduce the price of the products and
services. When the prices will be lowered down, then the firm will be able to attain the
objectives in better way.
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TASK 3
P3. Cause of globalisation on organisational governance and leadership, structure, culture and
functions
Corporate governance can be stated as process by which each and every kind of
organisation can be disciplined. Many associates handles the principles, laws and rights in better
and effective manner. Those participants are: directors, managers, creditors,auditors and so on.
Impact can be made by the globalisation by various ways. When the business is on the verge of
expanding at the international level, it is highly essential for the company to have the better
decisions process (Globalization Challenges for Businesses. 2018). There are some of the factors
for the company which in turn can be affected by the globalisation and those factors are
described below:
Leadership: Manager is the person who takes significant activities in charge and
coordinates its subordinates with the goal that they can accomplish objectives and targets of their
own in brief time frame. They likewise inspire them so as to make representatives considerably
more viable at working environment. Effect of globalization may influence designs, techniques,
vision and mission also which has been made by pioneers. Thusly, it is must for pioneers to
continue examining the greater part of the components which may bring hazard for them. In
setting of The Performer, leader will present all new toys in South Africa however it is
compulsory for them to see first that what precisely shoppers are searching for. This may help
them in assembling toys according to need of customers.
Structure: Framework of the company can be affected by the globalisation. If the
company has been launching the products along with services at the international level, then it
becomes highly essential for them to hire the candidates from the existing company which can
give valuable contribution to the company (Crane and Matten, 2016). This is done for hitting up
the targets in effective manner. In this, board of the directors of the mentioned company can take
suggestions from the experienced employees as they earlier were suing traditional methods in
which data is being transferred from the top to middle and top the lower level of management.
Culture: This can be stated as one of the factor which gets affected by the globalisation.
Management of the company mainly manufacture the goods and services as per the perception of
the consumers as per the needs along with wants which are mainly followed by them. This needs
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to be considered by the Entertainer while making up the plans along with introducing the goods
within marketplace of South Africa.
Functions: There are high chances that company will have to bring some kind of
modifications within products they are selling specially when they are stepping a foot into the
new market and those changes should be as per the needs and wants of the customers (Doh,
McGuire and Ozaki, 2015). Hence, it is highly essential for the company to bring improvisation
within product in the functions which are highly related to the profits, risk involvements,
investments and many more.
P4. Effects of ethical and sustainable globalisation on organisational functions
Current situation is all about the unpredicted transformation. There are many of the firms
which are large in nature and thus are using various kind of strategies along with regulations of
respective country in which business is being conducted. These kind of ethics mainly include the
morale of company which in turn can help in making positive impact on the behaviour of
employees. Entertainer is mainly looking forward to expand the area of operations within South
Africa. Hence, it is highly essential for the company to understand all types of legislations along
with acts which has been made by the parliament (Epifanova and et. al., 2015). There are certain
activities which are being done by the operational activities by utilising all kind of ethics. Along
with this, there are various kind of issues which are being faced by the manager specially at the
time of business expansion. So that, it is highly essential for the manager top evaluate every kind
of issues in better way and thus by this issues can be resolved in effective manner.
This is highly essential for the company to follow the rules and regulations while
applying the strategies. Entire performance of the company can be enhanced by these kind of
factors. In this kind of case, if the company fails in considering the ethics which in turn can make
negative impact on the brand value. There are some of the effective policies which are being
formed by the manager for improving the performance of workers where they can provide better
direction and through this they will be able to conduct effective operations. This in turn main;y
helps the company to capture the large market share from the competitors and thus have positive
brand value (Ferraro and Briody, 2017). Hence, Entertainer needs to adopt proper technology
within the company and thus make effective strategies by which they can accomplish the
objectives in effectual manner. In present situation, it is highly essential for the Entertainer to
adopt the latest approach which in turn can lead to have positive brand value and minimise the
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chances of error. This in turn helps out in improving the level of profit along with quality
services. Therefore, it can mainly impact suitable globalisation situation which in turn can lead to
attaining the competitive advantage in effectual manner.
TASK 4
P5. Various ways through which decision making can work effectively in global context
In a company, there are various leaders and managers who are responsible for making
modifications within the operational activities in order to improvise in productivity and profit
ratios. Hence, it is highly essential for the leaders and mangers of the entertainer for mainly look
into making the modifications on the regular basis and thus this can be done in taking the
appropriate decisions for sustaining within marketplace of South Africa for a long period of time.
There are new products which will be launched by the company in South Africa and this can be
mainly understood by all kind of techniques, tools and technologies which are being mainly
utilised by the rivals in order to make effective decisions for attaining all kind of desired goals
and objectives in better way (Huhtala and et. al., 2014). Aims and objectives of the company will
mainly be formulated by the leaders along with allocating the tasks to an individual or the staff
members. By this, management of the Entertainer will provide help in hitting up the targets in
much more effectual manner and this will mainly help in attaining the objectives in effectual
manner within South Africa. This has been mainly evaluated by the two type of decision which
are being described below:
Programmed decision making: This kind of decision is mainly being made by both
leader and manager by allocating the previous results. This is mainly tried and tested process
which gives effective outcomes. This mainly includes various kind of policies by which aims can
be accomplished in effectual manner (Kasemsap, 2015). Moreover, these are the proper and
traditional strategies which was being utilised and thus gave the positive outcomes. Example can
be taken up of employees which mainly resolve the issues by troubleshooting them. This is being
done by an individual in repetitive manner.
Hence, it is highly essential for the Entertainer for making all kind of decisions which can
be taken an thus utilise them on the right time.
Unprogrammed decision making: There are various kind of risk which are mainly
involved within the global world and it has become essential for the management of company in
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determining it in quick way. This can be done only when the new technology can be adopted
within workplace for enhancing the productivity along with profit ratios. This can provide help
in attaining the targets in effectual manner.
There are various kind of issued which are being faced by the company specially at the
time of expansion into international market where they had to make both kind of programmed
and Unprogrammed decisions (Kolk, 2016). Therefore, it is highly essential for locating and
analysing the environment in order to have adoption of effectual techniques for making perfect
kind of decisions which in turn will help out in attaining high level of reputation at the
international level.
P6. Assorted routes to internationalisation which can adopt by organisation, including key
barriers
There are various kind of barriers which are being faced by the company while expanding
the area of expansion. Hence, it is highly essential for them to determine and resolve the barriers
so that effective and long term decisions can be made. There are various kind of losses which can
impact the goodwill of company (Savrul, Incekara and Sener, 2014). Certain aims and objectives
of the company can be accomplished in if the decisions made are good. It is being needed by
management of company to analyse every kind of sector like marketing, finance, sales and many
more. Besides this, business expansion can be done in South Africa by the company Entertainer
which have different kind of culture along with perception of citizens which can be different as
well.
Operational activities needs to be much more effective by the company. All kind of risk
should be determined along with other factors which in turn can make bad impact on the sector
(Peng, 2016). Reduction within the goodwill can be observed if the products provided are not
up-to the mark. Crucial role is being played by the customers in context of expanding the
business. Company can adopt merger process in order to gain the competitive advantage.
Therefore, there are various obstructions which are mainly faced by the company during the
globalisation and those are stated below:
 Funds are being needed for the process of business expansion at the international level.
Small business can arrange the loan from banks or they can sell up their shares to the
public. Management needs to conduct the meeting on regular basis so that plans and
strategies can be revised and necessary changes can be made.
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 Another barrier can be stated as culture which can be considered in better way specially
while expanding the business at international level. By help of this, company will be able
to accomplish the targets which can be made right on time and it can help in attaining the
objectives in short period of time. Apart from this, it is highly essential to adopt the
collaboration process which belongs to the different kind of culture. This can be stated as
asset to the company as it plays crucial role in many ways. Hence, training and
development sessions should be conducted for improving skills and knowledge.
 Innovation is another boundary which ought to be remembered while entering a radical
new market. This can expedite both positive or negative effect business firm. In this way,
it ought to be considered in suitable way and appropriate on time (Wild, Wild and Han,
2014). Investigation of market and continue finding zones in which rivals have
influenced changes to can help in various territories and to run business in considerably
more successful way.
CONCLUSION
From the above report, it can be concluded that there are various kind of factors within
the global business environment which can be considered in better way by which company like
Entertainer to expand the business within the foreign countries. This will help in attaining the
competitive advantage along with aims and objective of the company. By this company will be
revenue can be generated in huge amount and that can be done in selling up of products and
services. There are various kind of barriers which has made impact on the process of decision
making.
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REFERENCES
Books and Journals
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Economics and finance. 15. pp.951-958.
Axelrod, R. S. and VanDeveer, S. D. eds., 2014. The global environment: institutions, law, and
policy. CQ Press.
Belás, J. and et. al., 2014. Significant attributes of the business environment in small and
meduim-sized enterprises. Economics & Sociology. 7(3). p.22.
Belás, J. and et. al., 2015. The business environment of small and medium-sized enterprises in
selected regions of the Czech Republic and Slovakia. E+ M Ekonomie a Management.
(1). p.95.
Carneiro, J. and Brenes, E. R., 2014. Latin American firms competing in the global
economy. Journal of Business Research. 67(5). pp.831-836.
Cavusgil, S. T. and Knight, G., 2015. The born global firm: An entrepreneurial and capabilities
perspective on early and rapid internationalization. Journal of International Business
Studies. 46(1). pp.3-16.
Cohen, B. and Kietzmann, J., 2014. Ride on! Mobility business models for the sharing
economy. Organization & Environment. 27(3). pp.279-296.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Doh, J., McGuire, S. and Ozaki, T., 2015. The Journal of World Business Special Issue: Global
governance and international nonmarket strategies: Introduction to the special
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Epifanova, T. and et. al., 2015. Modernization of institutional environment of entrepreneurship
in Russia for development of innovation initiative in small business
structures. European Research Studies. 18(3). p.137.
Ferraro, G. P. and Briody, E. K., 2017. The cultural dimension of global business. Taylor &
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Huhtala, J. P. and et. al., 2014. Market orientation, innovation capability and business
performance: Insights from the global financial crisis. Baltic Journal of
Management. 9(2). pp.134-152.
Kasemsap, K., 2015. The role of cloud computing adoption in global business. Delivery and
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Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business. 51(1).
pp.23-34.
Peng, M. W., 2016. Global business. Cengage learning.
Savrul, M., Incekara, A. and Sener, S., 2014. The potential of e-commerce for SMEs in a
globalizing business environment. Procedia-Social and Behavioral Sciences. 150.
pp.35-45.
Wild, J. J., Wild, K. L. and Han, J. C., 2014. International business. Pearson Education Limited.
Online
Globalization Challenges for Businesses. 2018. [Online]. Available
through :<https://yourbusiness.azcentral.com/globalization-challenges-businesses-22245.html>.
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