Factors Driving Globalization and Strategic Complexities in a Global Environment

GLOBAL BUSINESS ENVIRONMENT

TABLE OF CONTENT
 Introduction
 Factors that drive globalisation
 Strategic complexities
associated with operating in a
global environment
 Conclusion
 References

INTRODUCTION
 Globalization is basically a process in which any business or an organization starts
operating on global scale. In this document we will explain all the four major
factors which drive globalization i.e. cost, market, environment and competition
with an example of Zara Company in the first part of this document.
 Report will also explain strategic complexities associated with operating in a
global environment like international company structure, foreign laws and
regulations, cost calculation and global pricing strategy.

FACTORS WHICH DRIVE GLOBALISATION
Globalization is driven by four major factors. All the factors will be explained with an example of Zara Company:
Cost:
 The main motivation for any global company is to maximise their investment. One nation market may be insufficient to provide country
subsidiaries of a company all economies of scope and scale, specially with the change in marketplace.
 Whereas promoting and advertising a product can bleed across borders so companies should make their product available each and
everywhere where it can be heard-ofes.
Market:
 Nowadays consumers are becoming more similar in terms of education, lifestyle, income, aspiration and also in use of their leisure time.