Influences of Global Business Environment on Organisational Functions

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.