PDF Global Business Environment - Assignment

Added on - 12 Nov 2020

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GLOBAL BUSINESSENVIRONMENTTable of Contents
INTRODUCTION...........................................................................................................................1LO 1.................................................................................................................................................1Analysing the key factor of cost, market, environment and competition that drive globalcommerce...............................................................................................................................1M1...........................................................................................................................................3D1...........................................................................................................................................3LO 2.................................................................................................................................................4Complexity of strategic challenge faced by the company when operating in globalenvironment............................................................................................................................4M2...........................................................................................................................................6D2...........................................................................................................................................6LO 3.................................................................................................................................................7Evaluating the influence of globalisation on organization governance.................................7P4 Evaluating the influence of ethical and sustainable factor on organizational function.....9M3.........................................................................................................................................10LO 4...............................................................................................................................................11evaluating the different ways of decision making can work effectively in global context. .11determine the various routed to internationalisation a firm may adopt with barriers..........12M4.........................................................................................................................................13CONCLUSION..............................................................................................................................14REFERENCES..............................................................................................................................15
INTRODUCTIONGlobal Business Environment is defined as an environment in which multiple sovereignnations outside the organisations home environment influence the ways in which the organisationmakes decisions and uses its resources. The report's main aim is to understand the implicationwhicha company face while dealing with globalisation. The report is based upon the companyCameco which is one of the fast growing energy and chemical company based in South Africaand now the firmwishto expand its unit in other countries. The report analyses the key factors ofcost, market and environment that drive the global commerce by using PESTLE analysis andfurther it also explains the strategic challenges which a firm faced. Further, report also evaluatethe influence of globalisation on organisational governance and leadership and also evaluate theinfluence of ethical and sustainable globalisation. Then the report also describedifferent waysdecision making can effectively work in global context and determine the routes tointernationalisation and the key barriers in doing business internationally.LO 1Analysing the key factor of cost, market, environment and competition that drive globalcommerceGlobalisation:ItIsthe process in which the business and other organization alsodevelops international influence and also start the operating in an international scale. Apart fromthis, it is the process of an interaction and integrating in people, company and other country andin this modern era, variety of company also grown because of increased global interaction thatcomes through growth of international trade (You and et.al., 2019). In the context of quoted firm,it also wishes to expand its current business in different countries and want to become globalbusiness.Driving factor of globalisation:There are four main factors that affect the globalisationand some of them are as follows:Cost:It has been analysed that maximizing the business is the motivator for many globalcompany. The rising and falling costs of the products and services in the globalenvironment allows different organisations to take leadership in the present marketconditions. It helps a variety of organisations to ensure their product's growth anddevelopment. Along with it, it provides them with an advantage of selling and promoting1
their products and services. This is one evaluation as how factor of costs drives the globalcommerce and trade.Market:It is another factor that affect the business of Cameco such that consumer inadvance economies are becoming moresimilarwith reference of education, income,lifestyle etc. It is further analysed that having a global strategy does not mean that thefirm is serve at global level. But the usual approach is to start by picking regions andproceed further (Laudon and Traver, 2016). Even marketers of certain products are alsofound ready buyers in countries with high purchasing power with well developedinfrastructures.Environment:It is another factor that affect the business such that an increasingconsumer wealth, mobility and rapid information transfer within boarders, eventechnological revolution also continue to accelerate the demands for some globalproducts. The economical and political environment in which the business is thriving canbring growth and success. The economic environment allows the business to smoothlymanage its business activities without facing troubles in finance and legal causes that cancause hindrance in proper production and growth. The political environment helps theorganisation to freely operate and sell its products and services.Competition:To remain competitive in market, the company should make their productinnovative so that it force customer to buy the products. It is also evaluated thatcompetitive company always introduce, upgrade and distribute new products faster thanever (Salvatore, 2015).Communication:It is the most affecting factor in which the leaders should learn how tocommunicate effectively and that is why there is a need to learn primary language aswell. This will help to connect and collaborate with different people. It is also analysedthat when a company working at global level, then there is a need to avoid themisunderstanding that creates lost in translation.Transportation:Globalization means to provide products at global level and for thatreason, there is a need to have an effective transportation system. But due to intensivedevelopment of movement of capital which takes place and the world transport systemdevelopment also making it possible to raise a large extent and speed as well.2
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