Influences of Global Business Environment on Organisational Functions

This report analyzes the key factors, challenges, and influences of the global business environment on organisational functions. It covers topics such as cost, market, environment, competition, governance, leadership, culture, and more. The report also provides specific examples and explores the ethical and sustainable aspects of globalisation.

Global Business
Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Analyse key factors of cost, market, environment and competition that drive global
commerce and trade....................................................................................................................3
TASK 2............................................................................................................................................5
P2 Explain the complexity of strategic challenges faced by organisations when operating in a
global environment supported by specific examples..................................................................5
TASK 3............................................................................................................................................6
P3 Evaluate the influences of globalisation on organisational governance and leadership,
structure, culture and functions...................................................................................................6
P4 Evaluate the influences of ethical and sustainable globalisation on organisational functions
.....................................................................................................................................................7
TASK 4............................................................................................................................................9
P5 Evaluate the different ways decision making can work effectively in a global content........9
P6 Determine and articulate the various routes to internationalisation an organisation may
adopt, including key barriers.....................................................................................................10
CONCLUSION .............................................................................................................................11
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Global business environment is defined as the combination of various factors that affect
the business at the larger scale. There are various external actors which is linked with the global
environment and influencing the decision-making. It considered the various factors that are not
controlled by the business and includes social, political, economical factors(Sethi, Rovenpor and
Demir, 2017). RCS Logistics is the chosen organisation for this report, It is establish in Midlands
by Ray C Smith in 1973 and the headquarter is in Corby as it is the prime location in the heart of
Midlands. This report will cover the Key factors of cost, market, environment and competition
and competition that drive global commerce and trade and also Explain the complexity of
strategic challenges faced by organisations when operating in a global environment supported by
specific examples. Furthermore, It will Evaluate the influences of globalisation on organisational
governance and leadership, structure, culture and functions and the influences of ethical and
sustainable globalisation on organisational functions. This also explain the different ways
decision making can work effectively in a global context and also determine the various routes to
internationalisation an organisation may adopt, including key barriers.
TASK 1
P1 Analyse key factors of cost, market, environment and competition that drive global commerce
and trade.
Globalisation is defines as the business is performing their business out side the national
boundaries and help the an organisation to understand the laws of the particular country in order
to carried out an operations. There is the high implication of cost, market, competition and the
business environment so it is important for the RCS Logistics to run their business operation by
analysing these aspects of the business which is explained as follows:
 Cost: It is defined as the monetary value incurred on the production of the particular
products so it is important to use the raw material which can be easily available and
incurred less cost so that company can run their business in an easy approach(Serai, Johl
and Marimuthu, 2017). Economy of every nation is dependent on the overall cost and
profitability of an organisation so it is important for the RCS Logistics to minimize the
overall cost of the business so that they can run their business in a cost effective manner.

When the firm is entering in the new nation then they have to analyse the fixed and
variable cost in order to et the high profits and revenue.
 Environment: It is the sum of various factors hat surrounded the whole business
environment. Globalisation has majorly impact the business in the functioning of the
various operations by generating more business complications in operating their business
in the global market so it is important for the company to understand the working
standards by which necessary changes can be made according to the business
environment(Saeed And et. al.,2018). RCS Logistics is working with the consideration
of following the environmental also so that they can build a good brand image in the
market. Other than this, the company is operating their business in the ethical manner in
order to meet the high competition in the target market.
 Market: It is the place where buyer and seller meet at a point of time in order to make
the sell and purchase of the goods and services in exchange of money. As per the current
market situation, the company is operating their business globally and generating higher
profitability(Popescu and Warmenhoven, 2018). RCS Logistics has to improve the their
marketing strategies in order to meet the huge competition in the large marketplace. In
context RCS Logistics, these marketing strategies can favourable for the company in
order to meet the various competitors in the large market place.
 Competition: In the present time, this factors is the crucial impact on every organisation
as the technology is increasing and various firm is adopting them in order to launch the
innovative product and business is performing their business at the global level. This
aspect consider the homogeneous products and customers are making the selective choice
in order to buy them. In context to RCS Logistics, they are having the huge competition
in the large market and numerous companies is having the competitive edge in the
marketplace.

TASK 2
P2 Explain the complexity of strategic challenges faced by organisations when operating in a
global environment supported by specific examples.
Global business is using the various business opportunities in order to implement in the
large market so that they can enhance their market size and the customer reliability. With the
commencement of the globalization, the company can exchange their goods and services on the
worldwide level(Özcan, 2018). In context to RCS Logistics, there are various skills and
knowledge of the employees which help them to attain the organisational goal. Here are some
factors which enlist the challenges faced by the organisation at the time of operating their
business in global business environment is explained as follows:
 Rules and regulations: Every nation have their own rules and regulation in order to run
the various business operations in an appropriate manner. In context to RCS Logistics,
they are majorly operating their business within the UK so there will be the positive
impact on the business as government will support in order to run their business operation
in a smooth manner. Now the company can enter in to new market by following the rules
and regulation of the particular country so that they can operate their business in an
appropriate manner. For instance the company is dealing in delivery the goods and
service from one place to other in order to get the higher profitability with the
consideration of forming rules and regulation so that company can sustain inn the market
for a longer period of time.
 Political risk: Each company is working with their own political consideration which
formed the certain rules and regulation imposed by the government in order to support
the company in a particular nation(Madsen, 2020). The main reasons to make the certain
rules and regulation is that company can work in an appropriate manner in order to attain
the organisational in a lawful manner. In context to RCS Logistics, They are working as
per the rules and regulations formed by the government in order to enter into new
marketplace. As the implication of Brixit is having the huge impact on the business and
resulting the uncertainty in the business environment.
 Social factors: These are the integrated factors of the individual which is having the
significant impact on the actions of the individuals. As they are engaged in getting long
term stability and profit generation in the large market. There are various kins of culture

which is followed by the individual in the society and sometimes it become tough to
follow all the culture in order to satisfy the each employees. It is important to full fill the
social values of the employees so that they can give their best in attaining the
organisational goal. In this context, free trade policy are promoted in order to aware the
deep concern for the business.
 Monopoly market: In the current market, the business situation is changing according to
the changing demand of the customers and every business is running their business
operation in order to establish good market position in the market. In context of RCS,
they are getting the commitment from their prospective customers in order to conduct the
varies programs so that the specific situation can be handled. In UK, trade law is the
safeguarding the interest of the customer so that they can make the best use of each
resources.
TASK 3
P3 Evaluate the influences of globalisation on organisational governance and leadership,
structure, culture and functions.
Globalisation is having the major impact on the business environment as they frame the
different strategies and rules in order to adopt the new marketing techniques and run their
business in more effective manner.
Governance: It is defined as the rules which is made by the government and all the
employees at their workplace so that RCS Logistics can establish a good position in the large
marketplace. Due to fluctuations in the government bodies, business can get the high sufficiency
in order to run their business and get the positive impact on them(Kumar and Tripathi, 2019).
On other hand, It create the rigidity and minimize the flexibility in the business and impact
negatively on the business.
Leadership: It is the main aspect as all the business is managed by the seniors and every
country use the different leadership style so that they can identify the needs and wants of the
global market in order to satisfy them. It have the positive and negative impact on the business.
In terms of positive implication, business can hire the expertise in order to run their business. On
other hand, controlling measures impact the business in the negative manner.

Culture: Working culture play an important role in an organisation as they reflect the
efficiency of the employees so it impact he business in a positive manner and reflect the overall
productivity of the business(Jorfi, Nor and Najjar, 2017). In context to RCS Logistics, They are
emphasising on good working culture so that each employees will work with the consideration of
attaining organisational goal. As the culture diversity in UK and India leads to have the high
productivity. On other hand, It leads to create the conflicts within the business enterprises.
Hofstedw's culture model
RCS Logistics is focusing on expanding the business in various area so that they can
cover the large market. This model is executed in order to understand the macro environmental
factors that is describe below:
Power distance index: This dimension provide that the less powerful members have
unequal distribution of power and the main issue in this is that the society handle inequality.
Individualism versus collectivism: This dimension is the preference where the
individual is expected to take care of itself and in opposite there is collectivism where the
individual is expected to care of its relatives.
Masculinity versus femininity: On one side of this dimension, there is a preference for
achievement in this society and in its opposite there is femininity which stand for corporation.
Uncertainty avoidance index: This dimension provides that the members feel
uncomfortable with ambiguity and uncertainty. The main issue is that the society believe that this
issue can be deal in the future as if it is not known.
P4 Evaluate the influences of ethical and sustainable globalisation on organisational functions
Ethical globalization is working with the integration of economy, culture trends and so
on. This helps the company to work in a positive manner by doing all the activities with the
consideration of value and ethics. With this, the company is having the high impart of its
stakeholders on the brand of the company at the international level. When the organisation is
working in a appropriate manner. It will leads to formulation of the strategies at the right place so
that each function of the business environment can be run in an appropriate manner(Ivanovich,
2020). In context to RCS Logistics, they are highly influenced in order to expand their business
in the new market so they are making the best use of various resources in order to establish in the
large marketplace. With the help of solving complexities by use of effective strategies in the

international marketplace. There are some aspects which is having high impact of global
business that is explained as follows:
Human resources: Employees arr the backbone for any organisation as they run the
whole business organization by its own and give their best in attaining the organisational goal.
They are the most essential assets for the company. It is the approach in which most capable and
deserving candidate is hired with the consideration of accomplishing the various business
activates in an appropriate manner. In context of RCS Logistics, they must emphasis on hiring
the potential candidate so that the business operations can be run in an appropriate manner with
the aim of achieving the organisational goal. They also emphasis on training and development of
employees so that they can work in a ethical way in order to enhanced their position in the global
market.
Marketing: It is the process of promoting the products and services of an organisation
so that they can make the effective sale in the large market in order to generate the higher
profitability. It also includes the advertising, identifying the customer needs and delivery of the
products to their respective customers so RCS Logistics have to considered the marketing aspect
in order to promote their products in the large market so that they can make the effective sale in
the large marketplace. Marketing helps the company to establish a brand position in the market
in order to sustain for a longer period of time.
Finance: It the most essential aspect of the business which takes the organisation to
higher growth and also can leads to reduce the profits of the company. Under this aspects the the
manager is responsible for procuring and allocating the monetary funds so that each operation
can be run in a effective manner with the consideration of attaining the highest level of
profitability(Bhatti And et. al., 2021). In context of RCS Logistics, they must focuses on the
utilizing the various resources so that they can contribute in maximising the hist profits in the
marketplace. Management must focuses on training the employees with the consideration of
using the funds in an appropriate manner with their effective use.
It is analysed that every organisation must operate their business in an ethical manner so
that it will enhance the market share of the company. Each nation have their own rules and
regulation in order to operate the various business to complete the task in an effective manner
with the consideration of attaining the organisational goal. In context to RCS Logistics, they
must emphasis on the global opportunities that must be render awareness to the general public.

TASK 4
P5 Evaluate the different ways decision making can work effectively in a global content.
Decision-making is defined as the process by which the business can take the right
decision in order to analyse the different situation so that a specific project can be completed in
an appropriate manner(Bereznoy, 2018). Top level management of RCS Logistics is focusing
on completing the various task within the set time frame and expanding their market according to
the current market situation so that they can sustain in the market for a longer period of time.
Various ways by which the RCS Logistics can take the right decision is describe as follows:
Convenience: Authority and the responsibility are the same pillars in the business as they
are having effective marketplace. These aspects helps the manger to take the right decision in
order to enhance the productivity of the business. In context to RCS Logistics, they are planning
to expand their business and having the positive impact of its productivity. This influence the
employees to perform in an effective manner by which they can attain the organisational goal
and international conflicts or issues can be resolved.
Command: It is the authority to delegate their subordinates in such a manner so that they
can move in the right direction in order to complete the specific task. RCS Logistics is working
with the large number of employees and they are working towards achieving the organisational
goal. Further more, It helps in getting the right feedback form the prospective employees so that
management can work upon that in order to smooth running of business. The main aim of the
command is to minimize the risk from the operational activities so that they can enhance their
success in the large market.
Collaborative: It is the process of making the coordinating with the individuals so that
various opinion can be rendered and management can take the right decision in order to complete
the specific task(Andonova, 2017). It is the process of meeting the several suggestions so that
they can make the right decision with the consideration of attaining the organisational goal. In
context of RCS Logistics, They are involving their employees in order to get the innovative ideas
so that they can make the best of their resources in the internal marketplace.

P6 Determine and articulate the various routes to internationalisation an organisation may adopt,
including key barriers.
Globalization is the wider concept which enables the local and international companies
to interconnect with the consideration of export and imports of goods and services in order to
generate higher profits. It also helps an organisation to the part of contributing companies in
increasing the GDP of the country. With the help of globalization, the company can perform
their various task in an appropriate manner and expand their market across the globe. Certain
practices which is used by the business is describe below:
 Permitting- It refers to the process of giving approval or the authority to the individual in
order to complete the certain task in order to get the effective results. This is the set of
activities in order to make the sell of products and services in their respective markets
outside the country(Amankwah-Amoah and Wang, 2019). It is the essential steps
through which the company can run their business in the lawful manner in the global
market and also helps in meeting the competition as the permission is granted from the
government bodies.
 Franchising- It is the agreement and mutual understanding among the franchiser and the
franchisee that the individual can use the name, logo, space and offers in order to run
their business operations and for that the individual give the agreed sum of payment to
the franchiser on regular period of time. It is the best way of advertising their brand in the
national and the international market so that large group of customers can be attracted in
order to make the effective purchase in the large marketplace. In context to RCS
Logistics, They can expand their business in the large market by give the franchise to the
other business and it also helps advertising their brand in the large marketplace.
 Joint venture- It is the relationship formed among the two parties by having the
contractual agreement. The main aim of this joint venture in to enter in the agreement in
order to share the capital, technologies, processes and resources with each other so that
they can attract the large group of customers in order to satisfy their needs and
demand(Achim, 2017). In context to RCS Logistics, they can get the higher level of
profitability by forming the joint venture and resource their organisation with the use of
various partners capital and profits.
Some of the barriers for an organisation is explained as follows:

Cultural barriers: When an organisation is entering in new market, It is difficult to
adjust in that market as they are having their different needs and market trends. It resists the
company to understand their requirements and create huge problems.
Financial barriers: It is the aspect which play an important role in resourcing the
organisation as funds are the resources which can take the company to higher level of growth. In
order to expand the market, It creates problem in allocating the funds and disturb the whole
functionality.
Employees turnover: When the business is operating their business at global level, there
is large pool of employees working in the different departments and at the same time, due to the
complexity of work, employees turnover is increasing in the global projects and management
require to robust their strategies and operations.
CONCLUSION
It is concluded from the above report that, business environment play an important role in
the global business and management help in effective implementation of various strategies so
that they can easily achieve the organisational goal. There is the great impact of culture,
government and the leadership as it affects the decision-making and human resource
management is the essential aspect as they are the one who give their best in attaining the
organisational goal. Command and Collaborative are the useful methods which help in taking
the critical decision of an organisation at the global level.

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