Global Business Environment Analysis

The provided assignment is a research-based task that requires analyzing the global business environment. It involves studying various articles, journals, and books related to international business, transnational corporations, and cultural dimensions. The assignment aims to understand how businesses operate in a global context, including challenges such as globalization, social networking, and product lifecycle management. It also touches on the importance of emotional intelligence, leadership, and strategic corporate social responsibility in the global business environment.

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Major key factors which drive global trade and commerce..............................................1
TASK 2............................................................................................................................................3
P2 Complexity of strategic challenges which are faced by firm in international market.......3
TASK 3............................................................................................................................................5
P3 Evaluate the impact of globalisation within organisation.................................................5
P4 Effect of ethical and sustainable globalisation on organisation operations......................7
TASK 4............................................................................................................................................9
P5 Evaluate ways , decision making can work effectively in global manner........................9
P6 Ascertain the different path to internationalisation.........................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business environment involve with both internal and external factors which directly
affect on making decision procedures which are exist in united kingdom. It is necessary for
business enterprise is to develop their business structure at internationally for acquiring effective
success and growth in the large market place. Along with this, business environment is the
combination of two various factors which impact on operational and functional actions of an
enterprise. Apart from this, every organisation required to operate their business functions and
activity in international surroundings for acquiring high profitability and development in
effective manner. It is also required that company analyse and examine different factors for
expand their business operations and activities in other locations (Adger and et. al., 2013). This
project is based on A&R Cambridge Ltd which is large British manufacturing company for
providing Hi-Fi techniques which is based on different goods and products. It is small and
medium term organisation. The main purpose of this report is to understand different key factors
for global trade, difficulties in strategic condition which has been faced by firm and various
factors which directly affect on globalisation.
TASK 1
P1 Major key factors which drive global trade and commerce
Globalisation is the trend which enhancing interaction between people on international
level due to advances in communication and transportation applications. Globalisation involves
various products and services, economical resources of capital, data and methods. It is the free
movement of goods and facilities and most of the people in all the world impact by this system.
There are various key factors which assist in providing effective services and also make
contribution to manufacturing company in proper manner. It is that process which includes four
different components such as cost, environment, market and competition that is called as
international trade and commerce factors (Arends, 2014). Such aspects are need to manage and
maintain in proper manner and need to usage in easy for acquiring potential results or outcome.
There are some elements which are describe as follows:
Cost:
It is one of the most essential factors which assist in increasing different marketing
activities and also make customers loyal towards their products and services. Along with this,
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employees and management of A&R Cambridge firm are liable for developing effective and
attractive amount of their goods for building strong relationship with their customers. The cost of
product is working as promotional method which assist in developing trust and loyalty in buyers
mind in easy manner. Cost is divided into two various factors that are as follows:
Direct cost- It is generally determine as production facilities of particular goods and
services within an enterprise (Brouthers, 2013). It is very effective which consider for product
development and production for specific process.
Indirect cost- Such type of cost is not responsible for determining cost objective of the
product. This can consider different type of expenses and management activity of an organisation
in front of customers.
Maximising investment work as a motivator for numerous organisation toward large sales
amounts. An assessment of cost and global opportunities can lead A&R Cambridge Ltd to
complex decision in regard of consumer segments, market, positioning of product etc. which
need to mainly focus by organisation.
Market:
It is essential element for company and customers in which they introduce various type of
products services in large market place. In this factor, they can exchange products in the form of
cash which help in building strong relation in easy manner. There are some key elements of
market which are describe as follows:
Raw material market- It is that place where different type of organisation which are
choose raw material for convert them in finished products properly. There are various material
which are available as per the customers as well as market demand which help in developing
production procedures at easy manner.
Working class market- Such type of market are called as labour class market in which an
organisation select or hire several talented and skilled candidates according to their abilities and
knowledge (Cantwell, Dunning and Lundan, 2010).
Customer in more advanced economies is emerging more similar education term,
lifestyle, income, aspiration and utilisation of leisure time. Having an international trading
strategy does not refer to entire global market existence of organisation but render more
frameworks and structures to thrive and create revenues or sales in marketplace that is optimised
by A&R Cambridge Ltd.
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Environment:
It is one of the most necessary factor which directly affect on organisation process and
functions in proper manner. Environment is totally separated into two various components that
includes internal and external which affect on making decision procedure of company
effectively. In A&R Cambridge Ltd require for building attractive strategy which help in
reducing impact of such factors on business. Some factors are described as follows:
Internal environment- It is effective factor which directly exist within an organisation
that includes employees, management, administration, employers and investors. Firstly, internal
factors assist in affecting on working form and they have effective process of A&R Cambridge
and it is controllable and by this firm can easily manage their all strategic planning.
External environment- It is also known as macro environmental factors which directly
affect on making appropriate decisions of the company (Cavusgil and et. al., 2014). This will
includes PESTLE analysis which affect by external factors on firm in any manner. So A&R
Cambridge need to adopt all major rules and norms which are made by country government.
Increasing customer mobility and wealth, rapid transfer if information across borders
technological revolution and acceleration in service and product demands as created advanced
communicative environment and competitive business platform. In order to refrain within
country and prosper in such environment, this is requisite for A&R Cambridge Ltd to manage
global trading environment.
Competition:
These are some rivals and competitors which provide similar type of goods to their
customers and damage the goodwill of the company. So, A&R Cambridge require to develop
effective strategy for building attractive value of market which attract large number of
customers. Such competition include strong competitors and substitute manufacture firm which
also given same quality based facilities to their desired buyers. To remain more competitive,
international competitors need to intensify their marketing at global level through addressing to
refrain their benefits and create more vast market share. A & R Cambridge need to manage their
affairs at international level in regard of trading in global market and manage more competitive
recognition with huge revenues.
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TASK 2
P2 Complexities of strategic challenges which are faced by firm at international market
A&R Cambridge Ltd is British manufacturing organisation which offer effective services
in the large market place but they mainly deal with small scale firm. It is necessary for them is to
understand the macro environmental factors of market area which are acquiring growth and
success in easy manner. In such procedure, company can face difficult strategic challenges which
required to execute effectively for reducing its negative consequences in simple manner (Colfax,
Rivera and Perez, 2010). So they need to develop and make proper research for analysing
complex factors of managing strategic challenges when A&R Cambridge Ltd smoothly run the
whole business operations and functions for targetting new customers and market. There are
different external factors of market which determine that are discussed as follows:
 Political factors- Such factors are related to rules, government, norms and laws which
has been operated and regulated different type of an enterprise (De Jonge, 2011). For
A&R Cambridge Ltd which is very essential for analysing such factors such as marketing
commercialism, political orders, legal activity, tax plan of actions, various rules for
producing firms, different tax policies and licensing procedures which require an
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Illustration 1: PESTLE Analysis, 2017
(Source: PESTLE Analysis, 2017)

organisation if they can implement their process within international market place. This is
essential for A&R Cambridge which is important for understanding all such companies
norms and rules in their effective procedures for making potential goals and targets in
easy manner. While trading internationally, an organisation like A&R Ca bridge need to
consider all the determinants existing in the political environment of distinct countries
which vary nation to nation. This is a complex tasks as due to this, an organisation has to
face numerous challenges as well. Economic factors- Such factors are based on stability of economic of the country which
directly affect by using trade and commercialisation within the market. This is required
for developing and building their appropriate process as per the situation of economic of
the nation which can affect their business operations and its major functions. Economic
aspects includes inflation, interest rate, economic growth, wealth taxation, domestic and
global policy of economy which is generally based on trading procedure of the firm.
Different nations has distinct economical conditions and purchasing capacity of
customer. Hence, this is most influencing segments as company has to come up with
required modification in their services and plan as per the trading counterspy's context
while operating business globally. Social factors- These are those factors which are related to culture and current trend of
economy which should be followed by people (Ferraro and Briody, 2017). In A&R
Cambridge Ltd which is essential for analysing different social factors of the country
which can directly impact on their marketing process in easy manner. Within
globalisation, social factors play an essential role due to this it is totally based on
customers as well as market needs and requirements and also serve various goods and
services among desired buyers. Each nation as distinct interests and preferences such as
UK has different culture than China. Hence, this create more complexities for A&R
Cambridge while trading internationally as company vary activities as per the referred
organisation. Technological factors- A&R Cambridge is the production company which provides Hi-
Fi techniques based commodities. For an organisation, it is important for executing A&R
Cambridge Ltd technological factors which always build effectiveness for getting higher
profitability and productivity within an organisation. Such type of terms will introduce
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new and effective policies in firm so they easily connect them for generating more
profitability. Due to advancement in technologies, A&R Cambridge will not face major
challenges or complexities as customer prefer those organisation who perform operations
with advanced technologies in business. Environmental factors- This is that factor which is totally based on environmental
elements of the nation which can directly affect on business operations and its functions
in proper manner. In international business environment, this statement is directly impact
on production and manufacturing services for creating difficulties. An enterprise require
to understand and analyse for understanding products and services which does not harm
environment of the specific nation.
 Legal factors- This is mainly related to government policies and rules which can directly
affect on business operations and functions in easy manner. A&R Cambridge Ltd require
to understand all major rules, laws, norms, ethics and acts which can regulate and operate
all trading organisation in effective way.
Strategies of organisational structure:
Cost leadership – This will help in establishing a competitive advantages with having lower cost
of business operating and regulating within the industry. Cost leadership is mainly driven by firm
related size, efficiency, scale, scope and cumulative experienced.
Focus and differentiation – The differentiation refrs as creating quaklity based products and
services in effective manner on the other side, focus are offer specialised services in the niche
market area.
Value chain – This will help in set all functions and activities for operating specific industry
performance for delivering effective goods and services in the large market area. A&R
Cambridge Ltd required to maintain and manage their business operations and its effective
functions.
TASK 3
P3 Evaluate the impact of globalisation within organisation
Globalisation is that process where an enterprise begin their working activities or
functions in various nations (Gecevska and et. al., 2010). So these type of elements can impact
negatively on different activities of company. A&R Cambridge Ltd need to create and form
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effective strategies for acquiring higher profitability and growth in easy manner. It is an
production organisation and it is require to manage and maintain their activities within the
market. The company require to make and develop their personal values for manage them in
specific manner. There are certain factors of such procedures which are as follows: Cultural and functions- It is one of the most important components of the nation where
culture and functional activities mainly determine on their roles (Hamilton and Webster,
2015). A&R Cambridge Ltd required to evaluating that they can maintain and manage
their whole business activity as per their culture and functional activities of the country.
Such kind of elements create direct impact on business process which are appropriate for
making and implementing proper strategies of the company. Globalisation vent the
communication and transportation of different cultures and numerous functional
techniques within the organisation that assist in introducing an organisation such as A&R
Cambridge and country to create changes in their core services and products accordingly. Leadership- It is necessary for business activity which require to be done in proper
manner for encouraging some employees in easy way. Leadership process required for
expanding their business operation and its major functions in different countries. These
type of functions and activities are need to achieving desired goals and targets in effective
manner. It is specific concept which assist in increasing skills and abilities of workers for
accomplishing potential targets and goals of an organisation. This procedure will help in
developing and making effective decisions for making new structure within large
marketplace. Leadership techniques and methods managed on global trade aid
organisation in adopting such technologies, techniques and approaches of leadership
which are entertained or optimised on global level. Henceforth, the company make
changes as per the international trade to meet the standard criteria. Thus, globalisation
influence the leadership factors of organisation as well as nation.
 Governance bodies- It is one of the most essential factor of the company which executing
in various types of laws and rules for the company. On the other hand, governance bodies
are higher authorities of nation and firm need to evaluate all those rules and regulations
which build appropriately in better manner. These factors are directly impact on company
process and they will require to understand their values for developing best suitable
strategy for getting high business benefits. Globalisation has great influence on
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governance bodies of a company as the company who trade in international market, has
to come up with the policies and plans of distinct country in which they deal in.
There are some other points which describe poor and rich people gaps that are as follows:
Exploitation of resources- This is necessary for company is to properly manage and
maintain their all resources for gaining maximum profitability and productivity. So this can
directly affect on business enterprise which create harm for all functions and activities in
negative manner (Kasemsap, 2014).
Unfair trade- The unfair trade practices refers to that trade practices whose main
objective is to promoting sale and usage of delivering products and services, adopt partial
techniques and methods in effective manner. This is directly impact on business operations and
activities in badly manner and sometime this will help in maintaining selling process with
customers and provide them better knowledge about specific goods.
Increase in wealth- In this factor, it is clearly state that with the help of globalisation,
company can enhance their wealth by selling different products and services for their
international customers in proper manner (Laudon and Laudon, 2015). This will assist in
increasing their wealth if they does not bias among people according to their age, gender, caste,
religion etc. ad does not partial among rich and poor individual.
World economic growth- Economic growth is increasing the inflation which adjusted
market value of specific goods and services that manufacture by an economy in all given time
frame. With the assistance of globalisation, it will help in enhancing international growth of firm
by dealing with different type of organisation.
The positive and negative impact of globalisation:
Disparity between rich and poor nations – This will help in clearly describing the picture
of rich and poor people with the assistance of globalisation. Alos they required to maintain all
major issues and problems in better manner.
Unfair trade – This required for delivering the specific products and services which are
offer to their customers if they are make complaint about their product so company need to make
proper changes and alterations.
Increasing in wealth – It is the positive point in which the globalisation help in enhancing
the company income and profitability in effective manner so by this they can easily build good
picture of the company in the large market place.
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P4 Effect of ethical and sustainable globalisation on organisation operations
Globalisation is that process which directly influence the business effectively and proper
manner. This is generally impact on those company which desire to expand their business
operations in different countries and getting high profitability. This is necessary for A&R
Cambridge Ltd is to use ethical culture within an organisation for maintaining different
employees functions and activities in better way. Also this will assist them in getting effectively
competitive advantages in the large market place. A&R Cambridge us small limited organisation
which do not expand their business structure in various locations because it is essential for
understanding ethical and sustainable globalisation which directly affect on their process which
are as under:
A&R Cambridge Ltd. is dealing with producing high fidelity products and services which
is being utilised such as audiophiles, home stereo listeners and home audio enthusiasts for
referring to higher - quality reproduction of sound. It has been seen that there is great impact of
ethical and sustainable globalisation on this venture. It is very important for every company to be
ethical in nature that is they should follow all moral rules and regulations because it helps
members of corporation in deciding about what is correct or what is wrong. Therefore, right
judgement would occur in enterprise (Louhiala-Salminen and Kankaanranta, 2011). There are so
many benefits of conducting business in ethical way. This can be better understand by following
mentioned points :
1. Because of globalisation, almost all firms are carrying out commercial activities at global
level. Due to this, completion has been increased a lot since large number of enterprises
are offering same kind of merchandises or services to the civilians. Through this, A&R
Cambridge Ltd. can easily gain competitive advantages by supplying best quality goods
and services to their possible clients (Peng, 2016). They are seeking attention of wide
customer base which aids in enhancing their overall sales rate. Besides this, its unique
and innovational products are increasing their brand image.
2. Honesty and responsibility are treated as two main pillars of establishing an ethical
environment within work station. Thus, managers of cited organisation should focus
towards these two and try to set up a better and healthier environs so that workers would
show their interest in achieving all aims and objectives. If associates will perform their
duty in a loyal and obligated way , then ultimately each targets got achieved and also
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A&R Cambridge Ltd. acquire success in setting up reputable image among their rivalries
and users as well. These things finally supports in furnishing every legislations,
organisational code of conducts, individual and hence aids in running complete venture.
For example, cited firm need to create certain rules and principles against different unfair
actions like poor production, discrimination on the basis of sex, age, colour, religion,
race, etc. , misbehaviour, maximum exploitation of employees, etc. Such activities are
considered as key challenges and comes as a barrier in the way of corporation. Thus,
laws ought be designed for removing those unlawful acts. It will surely improve the
existing circumstances of this company.
3. Different departments of A&R Cambridge Ltd. Such as production, merchandising and
man- power, etc. should be run be following such ethical norms and policies. Company
should make a law whereby they require to state that manufacturing of products and
services have to done by more focussing on quality instead of quantity. Apart from this,
members associated with divisions marketing and human resource ought to perform their
job by obeying legalisations made by government of country (Simic and Dimitrijevic,
2012). For instance, they should not copy innovations of others, equal wages have to be
catered to staff members, recruitment of workers have to done on the basis of their skills
and talents, no discrimination have to be carried on the ground of sex, religion, etc.
A&R Cambridge Ltd require to maintain and manage all business operations and its
functions in effective manner. There are some general consideration such as honesty,
accountability and this can be furnished with the assistance of industrial code, legislation,
individual and organisation. There are different ethical consideration of the firm functions and its
activities that includes marketing, production, operation and management, etc. which are used for
maintaining all activities or functions in effective manner. An organisation require to
maintaining and regulating all business operational factors that directly impact on company
welfare.
Influence of ethical globalization
Business ethics means study of business policies,regulations,rules, etc. Business world
was facing malpractices such as child labour, product duplication,thefts , etc. in the organization.
To resolve such issues business ethics as a part of business programmes were introduced. With
the participation of ethics as a part of decision making companies have created a goodwill,
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competitive advantage and identification in the market. This led to a healthy competition in the
market.
Influence of sustainable globalization
Sustainable globalization means human security and environmental protection. It led to
essential improvement in the underdeveloped and developing countries. It brought innovative
production and consumption techniques. Instead of concentrating on maximizing profits it aimed
at environment's security. It also created legislative frameworks and international institutions that
focuses on the parametric statistic of development with the environment. It stabilizes the growth
of the demography. Introduced national plans of development for increasing interdependence in
economic and environmental plan.
TASK 4
P5 Evaluate ways , decision making can work effectively in global manner
For effective business organisation, it is necessary that they should implement various
kind of activities in their process which assist in building effective decision making procedures
for A&R Cambridge Ltd. In such process, leaders and managers of firm can easily developing
and making desired or effective results of an organisation. Along with this, they both can easily
giving effective decision and guidelines to their employees for acquiring high business growth
and success in appropriate manner (Tarique and Schuler, 2010). There are various type of factors
that can determine for conducting best suitable decision making process for organisation which
try to expand their business operations and its functions which are described as follows: Analyse and examine issues- It is one of the most important factor of firm which
includes effective analysis of various issues or problems that can occurs in different
ethics. Along with this procedures, they can easily get effective solution for resolving it.
Managers and senior employees of company communicate with their workers for
observing different ideas or thoughts towards organisational process. This type of
communication assist in developing and building strong relation between management
and employees of an organisation which help in resolving various issues and barriers in
proper manner. Determine solution- After analysing and examining different business operations and
functions it will directly affect on working concepts, leaders and managers for taking
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effective decisions for solving major issues and problems. All such resolution are totally
based on strong and appropriate communication process which help in developing
between employees and managers in proper manner. Evaluating the effectiveness- For giving better solution, it is necessary for leaders or
managers is to analyse or examine its effectiveness which assist in implemente4d within
business process and different functions (Trompenaars and Hampden-Turner, 2011). On
the other hand, all the main functions and operations of firm are directly affect on
organisation activities. This is that process which help in evaluating different directions
for making appropriate decisions in international level.
 Executing in business process- After doing appropriate analysis, an enterprise can easily
implement their business process for resolving major barriers and disputes which occurs
within an organisation.
There are two major styles which are making appropriate decision that are as under: Rational- A rational style decision making procedure is totally based on developing
choices for getting results for optimum utilisation of resources (Werther Jr and Chandler,
2010). Most of the conventional economic theories are used and developed under such
prediction for all individual who are taking part in specific activity.
 Analytical- This decision making process help in selecting the best suitable alternative
and also find out particular solution in each manner. It is that style of decision making
process which is based on logic and accuracy which help in determining appropriate facts
and figures.
P6 Ascertain the different path to internationalisation
There are various routes related to internationalisation of A&R Cambridge Ltd are
described as under: Export- The firm can export their different goods and services for attracting domestic as
well as international customers. This is major route for internationalisation to deliver
products to another location. Franchising- It is also one of the effective route by which it is easier for desired
customers for purchasing same type of product to their willing company branches at any
place.
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 Joint venture- This is also effective way for promoting their products and services by
making joint venture with other famous company and supply various goods to different
locations or places. Merger- If firm will merge with another company so it is very easy for their customer is
to make high profitability and increasing productivity (Wild, Wild and Han, 2014).
 Acquisition- If one company acquire to another firm and This is also one of the
important way which assist in developing and building trust among customers at
international level.
There are certain barriers which includes in trade restrictions legislation are as follows: Embargo- It is major barriers while trading goods at another place. A embargo is
government institution which protect from exports for specific country. This legal law is
restricted for transferring products from one place to another (Globalization Challenges
for Businesses. 2018).
 Quotas- This is another major barrier where government imposed trade restriction which
limit the number, monetary values, products can be import or export at given time period.
CONCLUSION
As per the above mentioned report it can be analysed that Business environment involve
with both internal and external factors which directly affect on making decision procedures
which are exist in united kingdom. Globalisation is the trend which enhancing interaction
between people on international level due to advances in communication and transportation
applications. A&R Cambridge Ltd is British manufacturing organisation which offer effective
services in the large market place but they mainly deal with small scale firm. The company
require to make and develop their personal values for manage them in specific manner. Honesty
and responsibility are treated as two main pillars of establishing an ethical environment within
work station. For effective business organisation, it is necessary that they should implement
various kind of activities in their process which assist in building effective decision making
procedures for A&R Cambridge Ltd.
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Globalization Challenges for Businesses. 2018. [Online]. Available through
:<https://yourbusiness.azcentral.com/globalization-challenges-businesses-22245.html>.
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