Global Business Environment Influence on Organisation

Global
Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1 .................................................................................................................................................1
P1 Analyse the key factor of cost, market, environment and competition that influences global
commerce and trade................................................................................................................1
LO2..................................................................................................................................................3
P2 Complexities of strategic challenges face by organisation to operate in global market.. .3
LO3..................................................................................................................................................6
P3 How global market influences organisation's culture, structure and function..................6
P4 Influence of ethical and sustainable globalisation on organisation function....................7
LO4..................................................................................................................................................9
P5 Different ways of decision-making in context of globalisation........................................9
P6 Different routes to internationalisation ..........................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Globalisation is process of trading goods or services across international boundaries. It is like
sharing of goods and a joint venture. It meets the demands of customers globally and gains
competitive advantage. Present study lay emphasise on CAMECO. It is an energy and chemical
company which is highly growing nowadays. It trades uranium worldwide. It is second largest
uranium producer with approximate 18% of world production. This unit includes presentation on
factors which drives globalisation related to cost, market, environment and competition. It also
frames PESTEL analysis to analyse complexities faced by organisation to operate global market.
Influence of Globalization on Governance, Leadership, Structure, Culture and Function is been
analysed. It also includes analysis of different routes to internationalisation (Hitt and et.al.,
2016.).
LO1
P1 Analyse the key factor of cost, market, environment and competition that influences global
commerce and trade
Globalisation refers to develop international influence and to start operation on international
market. It increases interaction between public and employees of companies which adds
value to organisation.
Transportation Cost
Factors which enhances global trade and commerce is transportation of goods and services. To
transport goods from one country to another, it includes rates to transfer either through
airways or seaways. Cameco uses ocean shipping generally as cost is less due to
containerisation and bulk shipping of uranium. As uranium is highly chemical product so it
is advantageous to transport it through seaways. It has also different impacts in tax system
which saves cost of company and also it is a competitive advantage in terms of nations
because every country as its own tax system (Basu, 2016). Transportation through airways
then, it is very disadvantageous because uranium is highly reactive component and can make
a destructive hazard.
Technological change-
As technology is getting enhanced speedily due to which every company has to adopt technology
to stand in competitive environment. To have global trade effectively then, by taking help of
technology like online platforms where information is being shared in seconds so that,
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clients of company get their product on time without any interruptions involved. Technology
helps to trade qualitative product by analysing and mentoring through artificial techniques
like robotics which attracts customer attention. Changes are always being welcomed by
Cameco and implement them in their company to have better global trade and commerce.
Cameco is energy and chemical company such that its product is uranium which is used to
generate electricity by nuclear fission and fusion. It is highly demanded project in terms of
future trend. That's why Cameco is enhancing its network internationally by adopting new
technology to make more and more clients worldwide.
Demand-
Increasing demand of particular product is an important part of global trade. Company need to be
in favour of demand of customers and make them satisfied. Company can also launch
another product against favourable brand at lowered price to gain competitive advantage.
Managers should be flexible to mark their products according to competitive market and
make the environment to maintain customer loyalty, trust and belief. Such shifting in
demands has a great impact on global trade and commerce (Dechezleprêtre and Sato, 2017).
On and off demands should be analysed by managers and gain economic market information
to have more profitability.
Pollution-
Through globalisation, chemicals used in industry to make their products affect environment and
make it polluted. As plastic is analysed as main toxic material because it is non
biodegradable and creates environment pollution to harm animals. Material used in
manufacturing, transporting of products should be of environment friendly. Cameco is a
chemical industry such that its wastage material being throw into sea. It creates water
pollution and affect aquatic life. For globalisation, company need to be analyse the products
and make mechanisms to control pollution. By adopting new technology, company can
make their products environment friendly.
Outsource Manufacturing-
When a company choose another developing country to manufacture their product then it makes
a competitive advantage to have low manufacturing cost. Developing country offer cheap
labour and low production cost. So, By outsourcing manufacturing, Cameco gains a
competitive advantage and increases their market share. It also increases publicity as well as
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