(Doc)Global Business Environment

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key elements of competition, market environment and cost to drive global trade...........1
TASK 2............................................................................................................................................4
P2 Strategic challenges that an enterprise faced during operate in global environment........4
TASK 3............................................................................................................................................5
P3 Influences of globalisation on organisational leadership, functions and structure...........5
P.4 Influence of ethical and sustainable on organizational functions....................................6
TASK 4............................................................................................................................................8
P.5 Various ways in which decision making can work in global context.............................8
P.6 Different routes that can be used by organization for internationalization .....................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business environment concept includes various internal and external factors which
directly or indirectly influence firm and its operations. It is necessary that executive have
accurate and complete information about market condition which help organisation to design
system and execute activities effectively (Aronczyk, 2013). After globalisation, business person
enhanced market share and position by expanding branches in international market. This benefits
entrepreneur to have large customer base; thereby enhance sales and profitability. Present report
is based on Amtek Plastics which is established in United Kingdom. This is a plastic
manufacture enterprise which have outlets situated in more than 20 nations. This assignment
specifies information about different components in respect to competition and market
environment. Along this, seniors even require to acknowledge expenses that are incurred by firm
to execute trade activities within domestic and international market. This help management to
overcome difficulties and challenges; thereby reduce impacts of globalisation on business. Along
this, organisation structure, leadership, ethical and sustainable organisation functions are
components that are analysed by executive to acknowledge influence of globalisation. This
benefits entrepreneur to make appropriate decisions and anticipate different paths used for
internalisation.
TASK 1
P1 Key elements of competition, market environment and cost to drive global trade
Organisation which are operating business at globally require to have adequate resources
to make system function in according to market situations. It is essential that appropriate tools
and techniques are implemented in firm which help Amtek to deliver adequate items and services
to people. Management even require to formulate strategies and policies in respect to execute
business activities effectively. Cost, market environment and competition are various elements
which influence on operations and goodwill of firm (Adekola and Sergi, 2016). These help
enterprise to construct strong position and image in both domestic and international market.
Thus, this is description of elements which directly or indirectly affect on business operations are
stated below:
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Market: This concept specifies information about place where sellers and buyers come
together and interact with each other to fulfil their needs and wants (Black, Morrison and
Gregersen, 2013) . This is classification of market which is described beneath:
 Monopoly: This market structure includes enterprise which have single control and
regulation in environment. Consumers don't have choice and alternatives to purchase
items from rival firm. This gives power and ruling authority to company to determine
prices and various aspects in respect to their willingness.
 Oligopoly: This structure defines that market have large number of small firms which
provide variety of items and services in respect to their needs and wants. These
organisation formulate group and collaborate with each other to enhance market position
and image.
 Perfect competition: This market structure includes firms which are operating business in
small scale and are competitors of each other. This competition determine that there is no
single company which have power and authority to regulate and set rates, as all firms are
independent and conduct activities according to their goals and objectives.
 Monopolistic competition: This structure defines that as perfect structure have numerous
small enterprises which are competing with each other. This tactic define that
organisations are providing items which are similar in nature, but have different features.
This benefits consumers to have alternatives and choices to purchase things in respect to
their requirements. Along this, people have power to demand products at appropriate
rates which sellers need to fix to retain clients and stop them to shift to other brand.
Market have various factors which directly or indirectly influence on business operations are
defined below: Reaching the Audience: Globalisation helps Amtek to establish branch in different
nations to have large customer base; thereby provide items and services in according to
needs and wants of public. Strategy: It is essential that entrepreneur formulate appropriate tactics and policies to
make system function in according to market conditions. Government laws and
legislations are considered by administration of Amtek to frame strategies to make
business activities execute in legal manner.
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Cost: This is also one factor which define that management require to have adequate
funds, material and manpower; to execute business operations in according to provide
appropriate items and services to people. Business person execute different expenses to produce
things and enhance market position and image. Direct Cost: It specifies information about various expenses that are incurred by
administration to have adequate assets such as land and building, plant and machinery.
Besides this, rent, insurance and various other elements are executed by business person
to organise things and make system function in according to market conditions (Briscoe,
Tarique and Schuler, 2012). These are fixed expenses which have direct influence on
business activities; thereby require to be controlled and managed by seniors. If company
controls direct costs then it can directly enhance trade (Caiazza, Shimizu and Yoshikawa,
2017). Indirect Cost: This defines expenses which don't have direct influence on business.
Management require to provide appropriate products and services to consumers to
generate adequate revenue from business. Administration, security cost and personnel
cost are various indirect expenses which help seniors to arrange and make system
function effectively. Managers can control indirect costs such as personnel costs. It helps
the company in creating goods in an effective manner. If manager controls the
administration and other costs then they can invest this money in profitable activities.
Through this they can directly enhance trade and can export goods in various countries.
Environment: This determine surroundings which business person require to
acknowledge while executing activities in proficient manner. Internal environment: Organisation culture, employees, suppliers, and other
stakeholders which have direct influence and require to carry out activities to earn
adequate money for their living. If manager fulfill all needs of internal stakeholders then
only manager can properly perform all operation's and hence they can increase the sales
and trade.
 External environment: Political, economic, social, environmental, technological and
legal are various components which exist in outside firm. These have indirect impact on
business operations; thereby require to be taken care by management. Manager can create
policies to deal with the changes such as political,social etc. Thus they can perform
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activities in proper manner and hence they can increase their sales. Through this they can
enhance trade by transporting many products to various countries
TASK 2
P2 Strategic challenges that an enterprise faced during operate in global environment
Business person require to have complete information about all factors and elements
which exist in environment (Charter, 2017). Political, economic, social, technological,
competitors and government are various components which administration need to consider
while designing system. Every industry have number of firms which are operating business to
generate appropriate profit from business (Doh, McGuire and Ozaki, 2015). Amtek have various
rival enterprises; so it is necessary that adequate technology is used by management which help
them to deliver quality things to customers. Apart from this, business person have set up
branches in domestic and international market which influence on operations. Along this,
company provide variety of items and at reasonable prices to grab attention of large number of
people. These are various difficulties and challenges that are faced by Amtek while making
organisation function efficiently in global environment are as follows:
Political risk: It is one of problem faced by enterprise to operate business in international
market. Business person require to make policies and strategies to make system function in legal
manner. Government of each country formulate laws, legislations, rules and regulations to
control and manage business operations adequately. Amtek which have branches in more than 15
countries needed to organise activities in respect to regulatory bodies of particular location.
Currency rates: This tactic determine that different countries set exchange rates in
respect to market conditions. Every organisation faces problems and difficulties as management
of Amtek have open branches in different nations. Thus, business person need to make
appropriate decisions and conduct business in countries which have less fluctuations in currency
rates. Along this, seniors require to determine prices in respect to demands of people which help
firm to grab attention of large number of consumers Thus, management is able to increase
customer base; thereby enhance sales and revenue.
Differences in culture and language: This is another challenge which are faced by
administration to organise business operations in international environment. Human resource of
Amtek require to have adequate manpower which help firm to deliver appropriate items and
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services in marketplace. Every country have variance in languages that differ for every person.
So, management will have diversify members which needed to be coordinated and work properly
in team.
Regulation and laws of host nations: This factor define that government formulate
legislations and act to make system function in legal manner. Discrimination, equality and
various other laws are constituted by regulatory bodies to control and manage business activities
in according to market situations. In Amtek Ltd., policies and strategies are frame in according to
make system function in respect to needs and wants of people (Ferraro and Briody, 2017).
Competition: It is essential that adequate items and services are provided by business
person to attract people by providing them quality things in respect to their needs and wants.
Seniors need to design products and provide them at appropriate prices to position higher than
competitors. This benefits Amtek to enhance market position and goodwill which help
management to attract customers; thereby enhance sales and revenue (Hamilton and Webster,
2015) .
TASK 3
P3 Influences of globalisation on organisational leadership, functions and structure
Organisation which have branches set up in international market require to have adequate
capital and resources to make system function effectively. Company, institutions and consumers
are various components which exist in marketplace. These are various entities which execute
activities and exchanges items and services to accomplish their demands and requirements.
Firms sales and profit depend upon taste and preferences of people; so it is essential that Amtek
deliver things and make changes in items in according to market trends. Therefore, these are
various tactics which require to be modified by management; in respect to impacts of
globalisation on business activities and market operations are stated beneath:
Organisation structure: This concept define that line, divisional, project and matrix are
various forms of structure which are used by administration to make system function in respect
to market situations. Amtek Plastics Ltd. Which have branches in different nations require that
seniors uses organisation structure in according to country. Globalisation is tactic which include
activities executed by management to set up branches in number of countries to have large
customer base. Amtek uses divisional and matrix organisation structure to organise activities and
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deliver adequate things in market which help business person accomplish goals and objectives of
firm.
Functions and culture: Organisation have different departments such as human resource,
finance, operation, marketing, sales, research and development. These are various segments
which are formulated by business person to deliver appropriate items and services in market in
according to make system function effectively (Johnson, 2016). Along this, management even
require to provide positive working environment to members and customers to retain them for
longer period. In Amtek Plastics UK Ltd, administration have adopted and designed appropriate
culture which help firm to carry out business activities according to needs and wants of people.
Besides this, company have branches in different nations which require to staff get proper
treatment and environment (Kasemsap, 2014).
Leadership: This concept specifies about responsibility of management to provide duties
and tasks to members in respect to their skills and abilities. It is necessary that employees get
direction and guidance from leader which help them to carry out activities effectively.
Globalisation includes activities executed by companies to set up branches in different countries
to have large customer base. Amtek have outlets in more than 15 nations which require that
management should have adequate workforce to execute business operations efficiently. Leader
require to construct healthy relations with members and retain them for longer period. This
benefits firm to enhance market position by providing items and services in according to needs
and wants of public.
Thus, these are various components which business person consider while designing
system and execute business operations in according to market situations. Leadership,
organisation culture, function and structure are various components that have impact on
globalisation. These components are taken care by administration of Amtek Plastics Ltd. to
execute changes in system and tactics. Hence, this benefits company to enhance sales and
generate adequate profit from business.
P.4 Influence of ethical and sustainable on organizational functions
Ethical and sustainable globalization can support the organization to operate its different
functions and activities in an effective manner. Hence as a result they can take efficient and good
decision for the firm. Major advantage is that firm can present good and strong position in the
market and in front of all consumers. This it can easily enhance their sales and profits. Amtek
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plastics Ltd can easily expand their business and they can operate in a better manner through
solving all problems and issues in a better ad effective manner. Through this it can satisfy all
needs and wants of all users. Hence impact of sustainable and ethical globalization on various
points in Amtek plastics Ltd are-
 Consumer confidence: Through practising of ethical and sustainable tourism firm can
create good quality of products and services (Kasemsap, 2015). Amtek plastics Ltd is
small limited company so hence it is very difficult that company has to follow all legal
and ethical practices in the firm so hence it can maintain superior position in the firm. By
delivering of good quality of items it can capture many customers in less time and hence
as a result it cannot create many items. Thus it can create positive reputation and image in
market as well as in front of all users (Laszlo and Cescau, 2017).
 Ethical selection and recruitment of applicants: It can only operate on various nations
if it follow regulations in ethical and sustainable practices. Hence Amtek limited follows
all legal and ethical practices in the selection and recruitment procedures. It do not
practice child labour. Company gives equal opportunity to all people in selection for a
required job,. They do not make discrimination on basis of religion and caste and other
factors etc. It can also follow the rules and regulations which are created by the
government. Hence as a result they can create good image.
 Promote positive environment at workplace: Through practising of ethical and
sustainable rules in the firm it can create various ethical practices in the firm it can spread
positive environment in the company. It can follow all legal procedures and rules in the
company in various methods and procedures. It includes various good and ethical
practices in recruitment, selection processes. It also gives compensation according to
their performance. Fixed salary is given to employees according to their job positions. So
hence it do not make discrimination among all employees. Through this it can create
positive and friendly environment in the company. Thus it can improve performance of
all workers.
 Support in maintaining health and care: Company uses various safety equipments in
the firm. Through this it provides safer environment in the company. Amtwek plastics
Ltd can use the raw materials which are environment freaky and they protect life of all
workers who are working in the company. Thus as a result they can maintain good health
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of employees and manager etc. Thus it can maintain strong position in the market.
Through this they can maintain good position in the market. Hence as a result they can
easily diversify and expand the business (Laudon and Laudon, 2015). So it can maintain
good image in the company.
TASK 4
P.5 Various ways in which decision making can work in global context
There are different ways through which company can create different plans and polices through
which it can create various decisions (International business expansion, 2018). Decision
making is very crucial so that they can deal with various changes. They can also deal
with various risk in the market. Thus as a result it can run its operations in an smooth
manner. Through this it can also create strong position in the market (Laudon and Lewis
and et. al., 2017). Hence as a result it can Amtek plastics has to take various decisions
so hence it is crucial that it can determine all the factors and can take effective and
efficient decisions. Through this it can easily survive in the market and can earn more
revenues. It can also expand and widens their business. Through rational decisions it
can fulfil all needs and wants of all users. Hence it can also run their processes and
methods in smooth manner. There are 2 methods which helps in impacting the company
in many ways. 2 methods used by Amtek plastics U.K. are described below:
 Programmed decision making: In this company can take decisions on daily basis. So
firm can create different products according to target market. Through this they can
implement activities and operations in an effective and efficient manner. Amtek plastics
Ltd had create different and effective mechanism so that they can take better decisions.
Company can solve all issues bad problems of all users so that they can satisfy all needs
and wants of all users. Hence as a result it can earn more revenues and can enhance the
market share. Hence Amtek can easily accomplish their targets and objectives. This leads
to growth and development of firm. Firm can take effective decisions which give many
benefits to the firm. It can also create different plans and policies to monitor the external
and internal environment. So hence it can take decisions to deal with external factors
such as political and social etc. It can also create different policies to satisfy all needs of
internal stakeholders.
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 Un programmed decisions: In this firm can face different problem and issues and then it
take quick and rapid decisions. Company do not have full data related to business and this
it cannot easily take decisions (Aronczyk, 2013). But then also it take different decisions
which is based on other criteria. Firm can create different contingency plans so that it
can deal with any risks which is involved in the market. It can create different assessment
plans in which it can measure various types of risks and thus it can create various plans
and policies to deal with risks (Adekola and Sergi, 2016) . It is very beneficial for every
company as firm can create advanced strategies to deal with the future risks which are
involved in the market and in the firm. Through this it can reduce risks and it also
increase the efficiency and effectiveness of company. Thus as a result they cannot take
proper decisions.
Through these activities firm can easily internationalize the different activities and can easily
take decisions. When company is performing it activities in various countries then it
has to take various decisions. So hence company has taken various unprogrammed
decisions though which it can create contingency plans to deal with future risks. Hence
for surviving and to earn more profits it can create create unique strategies and take
better decisions
P.6 Different routes that can be used by organization for internationalization
There are different methods through which company can choose various methods.
Through various routes it can easily perform the operations and activities in many countries.
Through selecting of various methods it can also deal with various changes and it can easily
survive in the market. Thus as a result it can earn more revenues and can enhance the market
share. Different modes selected by Amtek Plastics Ltd are:
 Licensing: Company take license of various activities and tasks. It is a very popular
method in expanding and diversifying the business in different ways. Through this no
company can use the technology or any activities. Hence as a result it can easily operate
in various countries. Firm takes huge fees from other other companies if it uses
technologies and other processes of Amtek plastics Ltd. Thus as a result they can create
unique and effective technologies and other processes. Hence as a result it directly
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increase the efficiency and effectiveness level of all operations and tasks. Thus firm can
easily survive in different countries and they can easily earn more revenues.
 International agents: There are different persons who take commission from company
and they can sell goods in various countries (Black, Morrison and Gregersen, 2013).
They charge certain percentage of commission from the company. Thus single agent
means only one representative at a single point of time (Briscoe, Tarique and Schuler,
2012) .
 Strategic appliances: It includes relationship with different companies which are
operating its various countries on large scale. Thus as a result they can easily perform all
activities and operations in many countries through these strategic alliance. As 2
companies are working together they can attract many customers in less time.
 Joint ventures: There is another agreement in which companies share the resources with
each other. Thus in this technique two companies can share profits and losses with each
other. Hence as a result both companies can work together and thus they can operate their
activities and tasks in various countries.
 Exporting: Under this technique organization promises with all people and they gives
their commitment of work. Through this they can control they own brand and thus they
can easily accomplish their objectives. Through this they can operate in different
countries and can perform all activities in an effective and efficient manner.
These are the policies and strategies applied by he company to operate its tasks in various
countries. Different problems faced by the organization during globalization are-
 Cost is the major factors which can create barrier on operating the activities in different
countries. Huge money is required so that they can use advanced technologies to operate
in various countries. Due to lack of funds firm cannot perform all the activities and
operations on large scale.
 Culture and language also creates different problem: People faced many problems in
operating in various countries. Thus as a result they cannot operate their different
activities and tasks in various nations.
 Technology is also a factor which is major barrier in the country. It has to use advanced
technology so that it can operate various activities in proper manner. Then only it can
survive in market (Caiazza, Shimizu and Yoshikawa, 2017).
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CONCLUSION
From above report it can be concluded that global business environment consists of
internal and external factors in the market. It is crucial for the company to properly evaluate
these factors so that they can perform all activities and task in an proper manner. Company has to
evaluate all key factors which can drive globalisation process. There are various strategic
complexities which are associated with operating in global environment. Firm has to properly
monitor the methods in which market can influence organization culture, structure and functions.
Firm also evaluate influence of globalization on organizational decision making and strategies.
Through evaluating of proper factors firm can easily operate in many countries and they can start
their operations in many nations.
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REFERENCES
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Adekola, A. and Sergi, B.S., 2016. Global business management: A cross-cultural perspective.
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of leaders. Routledge.
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Caiazza, R., Shimizu, K. and Yoshikawa, T., 2017. Cross‐border M&A: Challenges and
opportunities in global business environment. Thunderbird International Business Review.59(2).
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Hamilton, L. and Webster, P., 2015.The international business environment. Oxford University
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Johnson, G., 2016. Exploring strategy: text and cases. Pearson Education.
Kasemsap, K., 2014. The role of social networking in global business environments. Impact of
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Kasemsap, K., 2015. The role of cloud computing adoption in global business. Delivery and
adoption of cloud computing services in contemporary organizations, pp.26-55.
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Laszlo, C. and Cescau, P., 2017.Sustainable value: How the world's leading companies are
doing well by doing good. Routledge.
Laudon, K. C. and Laudon, J. P., 2015. Management Information Systems: Managing the Digital
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Lewis, H. and et. al., 2017. Design+ environment: a global guide to designing greener goods.
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