Strategic Challenges Faced by Global Businesses

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Table of Contents
1.1 An analysis of the key drivers of globalization.............................................................................4
2.0 An explanation on the complexity of strategic challenges faced by global businesses..........6
2.1 A critical analysis on the strategic challenges caused by globalization on risk, diversification
strategies and supply chain...............................................................................................................9
2.2 A critical evaluation of the global business environment............................................................9
3.0 (a) An evaluation of the influences of globalisation on organisational governance and
leadership..........................................................................................................................................9
b) An evaluation of the influences of globalisation on organisational structure.............................10
c) An evaluation of the influences of globalisation on organisational culture.................................10
d) An evaluation of the influences of globalisation on organisational functions.............................12
3.1 a) An evaluation of the influences of ethics on organisational functions..................................12
b) An evaluation of the influences of global sustainability on organisational function...................13
3. 2 (a) Application of McKinSey 7S Model on organisational structure in case the of Shell Plc......13
Application of Hofstede's Cultural Dimensions theory in the case of Shell Plc............................14
in a global context...........................................................................................................................14
(b) Ways (strategies) to enter global markets.................................................................................16
(.......................................................................................................................................................16
(c) A critical evaluation of the key barriers to globalization and recommendations to overcome
them................................................................................................................................................17
(d) A critique of the strategies adopted when entering the global market and valid and justified
recommendations of how Shell Plc should adapt its organisational structure and decision-making
processes.........................................................................................................................................18
REFERENCES........................................................................................................................................20
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Task 1
1.0 Introduction to the concept of globalization
Globalization is the process where the people, companies and the different nation
governments tends to have the proper interaction and integrations on the basis of the
international trade and investment on have the further level of effect on the environment,
culture, political systems, economic development and on the human physical well-being in
societies around the world (Beck, 2018). In addition to that’s with effect to the globalization,
the development of the internet media and international business, the world fees to be more
connects ever the before situation.
On the other hand, the globalization is the process in which countries can have the
establishment of the easy level of communications in order to make the sell of the
products attributed to the major changes in the telecommunication and transportation
industries. This tends have made the clear allowing for the goods to be made sold all over
the worlds in perfect manner.
Globalization is not only there have limitation to the trade aspect only but also have the
development of cultural aspects as through it there different culture have the significant level
of meet, know and understand various level of ways of life and their acceptability in perfect
manner. the companies tend to have the establishments on the way to compete customer for
the nationality of different countries which make the firm to have the operation where the
selections of the place as making the production cost low. This can be understood as there
with the help of internet, the US based company can have the hiring o the accountant form
India to perform its taxes (Pieterse, 2019). The increase in the technology is the positive
aspects of the globalization as to have the production of the standardized goods as invariant
to locations as the common property of the whole humanity. The countries have started in
developing there significant policy in order to have the proper level of mitigation of the risks
at the economic levels and seeking the internationals action in the erect manner.
1.1 An analysis of the key drivers of globalization
Globalization have turned out be the way of the living the life in the 21 st century as more
level of development of the transportation , communication and technology have the
significant decreased the distances along with increasing speed of transactions across the
various broad geographical borders. There have been the existences of the types of the
market drivers but to have the common convergence of the global trends in the ecosystems as
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to have the proper understanding regarding landscape and being prepares to have the act in
acting the opportunities for the key to success.
To have the discussion on the globalization and the international business have the
discussion on the significant drivers as they can basically have the segmented into the
different group:
Technological drivers
this have the significant level of shaping and setting the foundations for the modern
globalizations as the innovation have revolutionize the industry (Martell, 2016). This have
lead o have the major improvement for the global connectivity, mobility and communications
to make the proper fossilisation in the different sector as the agricultural in production lines
and finances. As the positive impacts of the drivers have enabled the world to be highly
computing and communication’s as the latest technological changes to be created global
business and e commerce.
Political drivers
There has been the proper level of liberalizing the in term of trading rules and deregulated
level of markets which have led to substantial lowering of the tariff and properly allowed the
foreign direct investments in term of the almost all over the world. This tends to have the
rapid advancements in term of technology as culture, economics and politics. As the
company have there have the proper level of expansion with providing the economic motives
which is leading their political solution. There is the advantage of the lower wages to have
the outsourcing the productions by masking the influencing of the politicians to have the
opening up the trade and reduction in the term of the trade barriers in globalization .
Market drivers
Market tends as the domestic markets have turned out to be becoming more level of saturates
as the growth of opportunities have growth which are limited and global expansions to have
the choosing the overcoming the situations. Markets have the providing the opportunity to the
national economy to be became the global economy through the common customers have the
need to make the optimum utilization of the resources as the helps o the global challenges
(Hawkesworth, 2018). The increase in the technology is the positive aspects of the
globalization as to have the production of the standardized goods as invariant to locations as
the common property of the whole humanity.
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Cost drivers
This have the source the efficiency along with cost vary the country to the country to make
the development of the global firms to have the taking the advantage of the significant facts.
There other level of cost drivers to have the globalization in term, of opportunity to be the
building of the global scale’s economies and high products development of the cost is
nowadays. As the negative impacts the low-cost labour doesn’t have their application to the
low skills works and their higher professional’s skill workers in the emerging economy to be
employed their companies one of the developed countries with another developing countries.
Competitive drivers
With the global markets have inter firm competitions have the proper level of the increasing
the organizations which are faced as the international business (Brown, McIlwraith and de
González, 2020). There is the strong dependencies among the different countries having the
high two ways trades the FCI actions by making the support this drivers. This will make the
proper integrations in their business actuals situations by appropriately describing there
today.
2.0 An explanation on the complexity of strategic challenges faced by global businesses
Foreign laws and regulations
This is one of the biggest challenge which is being faced by organizations when they
decide to go in different international markets. Each and every country has its own
regulations as well as laws which the organizations have to comply with in order to perform
their operations efficiently. From the tax implications to the trading laws, organizations face a
great difficulty in understanding these different implications. Along with this, for entering the
foreign markets organizations have to pay a great amount of legal cost to become eligible for
trade within that location. For example- while expanding its business in the international
market of US, Shell plc have to first analyze the legal regulations as well as foreign policies
in that market (Lasserre, 2017).
Language barrier
This is the another most important as well as fundamental challenge which the
organizations faces during its expansion in international markets. Employees have to deal
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