Global Business Environment Contents

Global Business Environment

Contents
INTRODUCTION...................................................................................................... 3
TASK 1................................................................................................................... 3
P1: Key elements of cost, market, environment and competition that drive
global commerce and trade................................................................................ 3
TASK 2................................................................................................................... 5
P2: Complexness of strategic challenges faced by organisation while operating
in global environment......................................................................................... 5
TASK 3................................................................................................................... 6
P3: Cause of globalisation on organisational governance and leadership,
structure, culture and functions..........................................................................6
P4: Effects of ethical and sustainable globalisation on organisational functions 7
TASK 4................................................................................................................... 8
P5: Various ways through which decision making can work effectively in global
context............................................................................................................... 8
P6: Assorted routes to internationalisation which can adopt by organisation,
including key barriers....................................................................................... 10
CONCLUSION....................................................................................................... 11
REFERENCES........................................................................................................ 13

INTRODUCTION
Global business environment refers to such environment which in which multinational
companies gives tough competition to each other through providing better product and
services in market. Therefore an organisation can able to survive in competitive market
environment only when they provide differentiated quality products and services as compared
to their rivals. This will help in generating huge profit as well as build brand image in
international market. Globalising a company means expanding business to different countries
where the demand of their products and services are more. The Entertainer, a UK company
which deals in manufacturing toys for small kids is taken for the purpose of preparing this
report. The company has looking to expand its business in South Africa. The project covers
the some key factors which may be affected the decision of expanding business at
international level. Along with this, complexness of strategic challenges is also covered under
this report. At last, project also included the effects of globalisation on a decision making
process and some barriers which may affect the profitability of an organisation (Banerjee,
2010).
TASK 1
P1: Key elements of cost, market, environment and competition that drive global
commerce and trade
Every business organisation who wants to expand its business at international level
should require to carefully analysing the global environment. It includes various factors
which may affect company’s goodwill and revenue of an organisation. The management are
held responsible to make an effective decision and plans regarding handling complex
situation that may arise between the processes of expansion of business at international level.
There are various problems arises due to competitor’s legislation, taxes, various barriers etc.
thus management need to consider all such elements and accordingly make effective
strategies in order to deal with such complex elements (Wheelen and Hunger, 2011). There
are other elements as well such as cost, market, competition etc. which may affect the
decisions of expanding business to other countries thus need to be consider such element if
they want to exist in New market environment for longer period of time. Therefore, it is
important for management of “The Entertainer” to first carefully analyse market environment
exist in Africa and on the basis of which management took decision regarding expansion of

business. Different elements which should require to consider by management of “The
Entertainer” are as follows:
Competition: It refers to such factors whose existence in market largely affects the
decision of expansion. As entering into African market, “The Entertainer” may face large
number of competitors who already attained strong position in market. Thus, it becomes more
difficult for “The Entertainer” to enter into new market. Here management play an important
role in making an effective plans and strategies after identifying the rival’s strategies, quality
of products and services, working style, technology etc. which drives them to move ahead
from their competitors through taking one-step actions ahead than their rivals. “The
Entertainer” which deals in manufacturing toys for children should focus on improving their
products with the help of using new and innovative ideas. Through this, the company can
able to achieve competitive advantage and sustain in new market for longer period of time.
As Africa is a developed country thus expanding business to such country will brings
profitable result to company (Belás and et. al., 2015).
Cost: It is an important factor which should required to be consider by the
management of “The Entertainer” before deciding of expansion of business. The management
need to focus on identifying elements through which they can reduce cost of products and
services with a motive of providing them to children at affordable prices. Through this, the
company can able to grab attention of customers in ample number. In addition with this, the
company need to focus on improving quality of products as well which every customer looks
for. As it has been forecasted by management that entering into African market will increases
the cost of products and services thus it is important for management of “The Entertainer” to
find out all such aspects through which they can reduce cost which increases the chances of
their sustainability in African market.
Market: Every company have different culture and environment due to which
management of “The Entertainer” may faces more difficulties in adjusting into new
environment. Therefore, it is essentially required to make proper evaluation of market and
accordingly make an effective plans and strategies in order to exist in market for longer
period of time. There are various risk also arises which make impact on productivity and
profitability as well. For this, the management need to hire researcher who conduct research
for them regarding the new market environment and the changes they demanded from the
companies. With help of using information collected through research, the company need to