International Business and Globalization Challenges

The provided assignment details are based on a research paper that explores the international business environment. It covers various topics such as MNEs (Multinational Enterprises), global business strategies, cultural differences, social networking, and production planning. The assignment requires students to analyze and understand these concepts in the context of globalization challenges for businesses.

GLOBAL BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TSK1................................................................................................................................................1
P1 Key factors of Cost, market, environment and competition which affect global trade ......1
TASK2.............................................................................................................................................3
P2 Explain Complexity of strategic challenges faced by company when they run their work in
international market .................................................................................................................3
TASK3.............................................................................................................................................5
P3 Explain influences of globalisation on firms governance and leadership,structure, functions
and culture ................................................................................................................................5
P4 Explain influences of ethical and sustainable company on organisational functions ..........7
PESTEL analysis of Dutton.............................................................................................................7
TASK4.............................................................................................................................................9
P5 Explain different ways decision making can work effectively in a global context ..............9
P6 Determine various routes to internationalisation an organisation .......................................11
There are several routes related to globalisation of Dutton are explain as follows:.................11
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Globalisation is a process of expending business activities out side the country. Its
increase company's economic independence through cross boarder movement of product,
services, technology, capital and many more. Through international standard, quality of product
may improve. Various firm used globalisation as strategic tool in which they are able to rise
reachability as well as profitability. That also improve brand value of product and services. In
this assignment Dutton firm are used to analysis impact of global business activities. It is a small
scale business unit that run their function in United Kingdom. Management of Dutton want to
expand their business operations in other country (Adger and et. al., 2013). This report covers
factors of cost, market, environment, competition etc. and complexity of strategic challenges
which are faced by company. It also covers globalisation and their impact on organisation
performance and productivity.
TSK1
P1 Key factors of Cost, market, environment and competition which affect global trade
In order to expend business activities at global level firms want to develop strategies and
plan. Through this, they are able to manage or control all firm operations in an effective manner.
That increase profitability as well as productivity of the product and services, it rise customer's
satisfaction as well as their experience. But various factors and elements may effect global trade
or commerce. Some element like cost, market, environment, competition are explain as follows:
Cost factors which affects global trade: Various type of cost are create impact on the
company expansion like shipping, logical operations, technology and many more. Some
important factors which affect international market are explain as follows: Research and development: It help to develop quality of product and services which
create competitive advantages at market place (Arends, 2014). In international industry,
firm want to produce high quality goods by using global standard. It rise cost of the
product. Exchange rate conversion: Exchange rate are change on daily basis. It create negative
impact on product cost. So that, company may use hedging strategies in order to reduce
impact of exchange rate on multinational trade.
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 Taxation: With change in country location, rule and regulation of the government related
to taxation are vary. So that, Duttonmay follow all policies of that area to run whole
business task in an effective manner. Its directly affect cost of goods and services. Marketing and advertisement: Company develop marketing plan in which in includes
promotion, advertisement, budgets, finance and many more. Firm are spend lot of money
in this function. This effect cost of product.
Market factors which affect global trade: In international trade various type of market
may affect firm profitability and performance (Brouthers, 2013). Some of the important factors
which create impact on global commerce are discuss below: Geographical factor: Management of the company may keep track what going on in
selected regions in order to sale product effectively. According to needs and wants of that
area customers, firm may create product to sell or full fill demand in an effective ways. Demographic market: Identify target clients preferences, behaviours, attitude and many
more to understand purchasing habit of the consumers. That create positive as well as
negative impact on enterprises profitability in long period of the at market place. Competitors: When company decided to operate business task at global location, then
they make plan to analysis competitors strength and weakness. They find out the main
competitors of that area and their strategies to compete with them in an effective manner.
Its affect global commerce of The entertainer.
Environment that affect global trade: Internal and external environmental factors may
create impact on enterprises performance. But in international trade mostly external factors
create high impact on company profitability a as well as operations. Political and legal: Government make laws for international trade which affect
globalisation and country growth. Dutton wants to follow all rule and regulation of each
one country where they run their business operations (Cantwell, Dunning and Lundan,
2010). Political relationship between two nations may create positive as well as negative
impact on firm world-wide business. Economical: When company expand their work, then they analysis economical
condition of location where they operate. Some economical factors like inflations,
exchange rate, taxation policies etc. may affect firm performance.
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 Technological: Technologies are rapidly changes in current business environment.
Through latest technology, firm are capable to gain competitive advantages in
international industry. Dutton may develop strategies to make differentiated product as
compare to their competitors on that area where they run business. That provide
competitive benefits as well as high brand value.
Competition that affect global trade: When firm operate business task in well developed
country then they face high competition. But developing nations like India, china etc. have more
potential to provide high profitability in low competitive environment. Dutton expend their
business activities into Africa, North America and Asia in order to gain high market share
(Cavusgil and et. al., 2014). Enterprises develop strategies in order to complete competitors in an
effective manner in given time frame.
TASK2
P2 Explain Complexity of strategic challenges faced by company when they run their work in
international market
Management of the enterprises have develop strategies in order to operated whole
business activities in international level in an effective way. In this, they make team which
analysis condition related to economical, technological, political, competition, suppliers, legal,
employees, culture and society or many more of that country where they sell their product and
services. Its help to make plan to compete competition. In order to manage all these elements,
manager of Dutton has face strategic challenges like goals, objective, selling support action,
collaboration, strategic alliance rule, sustainability etc. Some of the important challenges are
explain as follows:
Core competencies: A global marketing manager of the company face strategic
challenges those are associated with their product or services core competencies. These are
strategically-developed competencies that are provide various benefits to firm in different type of
market location. If these all core competencies are weakened over time that affect firm market
share in a negative ways and their competitors take advantage of that situations in order to gain
high profits as well as costumer attraction (Colfax, Rivera and Perez, 2010). So that, it is a
management responsibility to safeguard their knowledge and strategies with their competitors
and gain competitive benefits. Some important core competencies of Dutton are effective
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channel management, customers retentions, brand advertisement, strong communication,
strategic market assessment and new product development. Through this, enterprises are capable
to gain high profits form market in given time frame.
Sustainable business strategy: International marketing manager organise training
program in order to enhance employees skills and knowledge. Trained and talented workers may
help to achieve long term sustainability in global market. Management firstly develop business
strategy to sell product in other country. Through this they are capable to rise brand values as
well as profits. The challenges, for developing successful work practices, company want to
manage their production as well as operational cost. That helps to give economic price product
to customers in order to gain higher satisfaction. It is very important for an organisation to make
plan to overcome form this challenges that helps to provide agonistic profit at market place.
Sustainability helps to gain high market share in long time period.
Global collaboration: It is not enough to all workers into global or regional project
teams, so that, management of the company may develop strategic direction. Through this, they
manage and control all employees which are work in other country (De Jonge, 2011). It is a one
of the most important factor because in other nations, culture and social environment can be
change. So that, HR policies of one nations may not be work in other location. So, management
of Dutton has make different human resources practises for various international location.
Global manager of the company can not help to international market in order to successfully
handle challenges in various market situations.
Common goals: A strategic challenges is how develop firm objectives. Management of
enterprises is using central strategy in order to make common goals to run all business activities
in international level. Company have different goals for different country because it affect with
that nations working environment. That create negative impact on an organisation performance
as well as profitability. For example, manager of Dutton has apply marketing strategy that work
in Africa, Asia as well as North America in order to gain high market share and sustainability.
Event through employees in these location collaborate with workers who is work in United
Kingdom, the same marketing strategies may not be work. They need different plan to effective
gain competitive advantage in international market. Consumer's needs and demands might differ
in various antithetic location in a global level. Manager of enterprises is must used this method
which are necessary to achieve marketing goals and objectives in an effective manner.
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TASK3
P3 Explain influences of globalisation on firms governance and leadership,structure, functions
and culture
Globalisation is a one of the important factors of current business environment that affect
company's performance as well as profitability. Management of an organisation has develop
strategies in order to expand their enterprise operations in specific time period. They manage and
control all employees with in institute to enhance product quality as well as features. Through
this, they are capable to rise customer's satisfaction as well as brand value at market place.
Globalisation may affect firm tasks in a positive as well as negative ways (Ferraro and Briody,
2017). So that, management of Dutton has manage economic process in an effective ways with
in a working place. They consider all internal factors of firm to implementing global scheme in
international level. Clients preferences, behaviours, attitude, needs, wants, demand and
perception etc. may vary with change in location or nations. It is very important for management
to develop product those are able to full fill consumers requirement in an effective manner. Its
almost impossible for firm to fulfil complete all requirement of customer's in an effective ways
because their demand and unlimited in nature. So that they focus on certain needs and make
marketing plan accordingly. Globalisation may affect firm internal culture, structure, function,
leadership and governance are explain as follows:
Leadership: Management strategies and plan may change with location. So that, leaders
choose their leadership style according to needs and wants of that area employees. At global
firm, large number of workers may work together those are came for different location.
Accordingly, leaders select best method to influences team members behaviours and attitude in
order to achieve predetermine goals and objectives in accurate manner.
Structure: Firm structure may affect globalisation. In this structure, company have
different departments like finance, marketing, operations, human resources, research and
development or many more. Management make strong structures of the company in order to run
business operations at global level (Gecevska and et. al., 2010). Through this, they are able to
established strong communication network that solve problem of exchange information and
knowledge. By this, they are manage all business activities in an effective ways in specific time
period.
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(Sources: Organisation structure, 2015)
Culture: An organisation which are run their business activities in international level
have different types of culture. Employees working culture as well as social environment may
vary with change in working location. So that, human resource manager of the company may
develop different HR policies according to working environment of that location. In a global
firms, diversify culture may increase quality of product and services because workers came form
different location. They have various knowledge and innovative working process according to
their living environment (Hamilton and Webster, 2015). That affect work positively and help to
work in a innovative manner in order to achieve goals and objectives. Its also rise conflicts
among employees as well as between management and staff members at work place. Internal
and external both are affect an organisation performance in global market.
Function: A company which run business activities at global level have various
functional departments like finance, marketing, research and development, human resource and
many more. All functions may differ with location of branch. Parent company have more
complex functions structure as compare to branch which are located in different nations.
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Illustration 1: Organisation Structure

(Sources: Organisation Function, 2017)
Governance: Government of the nation may develop rule and regulation that are follow
by company to run enterprises in an effective manner. It is change in country to country. So that,
management of an organisation manage or control all governance with in work place. Its include
various factors like vision, mission, objectives, smart goals, policies, procedures, accountability,
transparency, monitoring, internal control, legal framework and many more.
P4 Explain influences of ethical and sustainable company on organisational functions
Duttonhas a British retail store that provide various type of toy to their consumers. They
mainly focus on children and accordingly develop product to gain high profitability as well as
sustainability at market place (Kasemsap, 2014). Pastel analysis of Dutton are explain as
follows;
PESTEL analysis of Dutton:
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Illustration 2: Organisation Function

Political factor: This component includes rules and regulations of government in respect
to taxation, safety laws and trade. It is necessary that management formulate appropriate policies
and plans to make organisation function properly (Colfax, Rivera and Perez, 2010). Dutton
which is small enterprise, so executive require to make system function appropriately.
Administration had frame effective tactics which help them to make firm in according to
government laws.
Economical factor: Interest, inflation, exchange and growth rate are various elements
which impact on firm and market functionality. Administration of Dutton require to utilise funds
properly and deliver adequate items and services in marketplace. As, business is conducted in
single country; so changes in exchange rate will not impact on system. If there is inflation, so
people will have adequate money to purchase items in respect to their requirements.
Social factor: This component defines that organisation should provide adequate
products to fulfil needs and wants of people. So, management require to deliver different
varieties of items to grab attention of large number of customers and enhance sales (Cavusgil
and et. al., 2014). Companies which are conducting corporate social responsibility will be able to
increase market goodwill and reputation.
Technological factor: This element specifies that administration should implement
appropriate tools and techniques in system, so that adequate products are produced. Dutton
which is small firm need to use latest technologies, which help members to deliver innovative
and unique items in marketplace. This helps company to utilise resources efficiently and provide
quality things to customers.
Environmental factor: This component defines that management require to take care that
natural assets are utilised properly. It is necessary that adequate tools are implemented in system,
so that resources are used efficiently. With help if internet, members of Dutton are able to avoid
using paper to keep record. This help company to improve market position and image.
Legal factor: This element specifies various legislations that are formulated by
government to protect rights of workforce and take care that employees get positive working
environment. In Dutton, management makes system function legally and improve market
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goodwill (Cantwell, Dunning and Lundan, 2010). Workers are given opportunities on basis of
their performance and outcomes. Apart from this, administration don't discriminate staff
members on ground of gender, religion and caste. So they are able to retain skilled and
competent people.
TASK4
P5 Explain different ways decision making can work effectively in a global context
For effective business organisation, management have execute various kind of activities
in their operations process which are assist in build strong decision making procedures for The
Entertainer. In this process, manager as well as leaders of the company can easily manage all
employees with in firm to make desire outcomes that are helps to gain goals and objectives in an
effective manner. Along with this, they both are capable to take decision and provide guidelines
to all staff members for acquiring high business growth and success in an effective manner.
There are several types of factors which can determine for organising best decision making
process for an organisation. They are try to expand their business activities as well operational
functions are described as follows: Analyse and examine issues- It is a one of the most important factor which affect firm
performance and profitability. In this they are includes various problem or issues that are
arise in different situations. Along with this procedures, they are capable to draw valid
outcomes in an effective manner in given time frame. Management of an organisation
established strong communication network with in firm or with other branches which are
located in different nations (Laudon and Laudon, 2015). They manage and observe
employees performance and appreciated their participation in decision making process. In
this, workers provide innovative ideas and through for completing task effectively.
Strong communication has make healthy relationship between management and
employees which are help to resolve problem as well as barriers form working place. Determine solution- After analysing several different business operations, its directly
affect decision making process of leaders as well as manager. Through this, management
are able to reduce conflicts among employees and administration or workers. All such
resolution are totally based on managers decision for solve major problem at global level.
In order to determine appropriate communication process for international branches.
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Management of Dutton has develop different communication strategies for all countries
in order to achieve predetermine goals and objectives in specific time period. Evaluating the effectiveness- In order to receive better solution, in is necessary for both
manager as well as leaders to analysis effectiveness of management practices. Through
this, they are capable to manage whole business activities in global market (Louhiala-
Salminen and Kankaanranta, 2011). Effectiveness of operations may assist
implementation process of strategies with in an organisation. It is a human resource
manager responsibility to develop training program in order to enhance employees skills
and knowledge. By this, they are capable to develop quality of product and services, its
increase customer's satisfaction. Outcomes of training event is very effective when
performance and productivity may increase. On the other hand, entire function and
operational activities of the company may directly affect global trade. In this process,
institution are able to evaluating different directions for taking appropriate actions which
helps to gain sustainability in long period of time.
 Executing in business process- After completing analysis, management of firm can
easily execute their business strategies and plan in order to resolve several problem,
disputes and barriers that occurs with in an organisation. It is a one of the crucial step
where firm are face difficulties.
There are two major styles that are develop effective decision are explain as follows: Rational- A rational style of decision procedure is totally based on effective utilisation of
available resources with in an organisation. Through this, company are able to manage all
task effectively (Peng, 2016). Most of the conventional economic approaches are develop
under rational decision making process by all individuals who are participate in specific
activity.
 Analytical- Analytical knowledge in management has helps to achieve goals and
objectives by developing strategies. Analytical decision making process are helps to
choose best suitable alternative form all available solutions. Also find out best result in a
specific time period. Its based on logic and accuracy of interpretation of data and
information. Through this, they are able to manage all work effectively in determining
appropriate figures and facts.
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P6 Determine various routes to internationalisation an organisation
There are several routes related to globalisation of Dutton are explain as follows: Export- This concept helps administration to provide items and services in domestic and
international market. Internationalisation tools helps Dutton to deliver products to various
countries. This help firm to increase customer base, sales and profitability.
 Franchising- This tactic is efficient device which helps firms to establish branched in
several nations to provide options for customers, thereby make them purchase items in
according to their taste and preference (Brouthers, 2013).
 Joint venture- It is efficient tool which defines that executive can conduct business
activities appropriately. By joining system with popular firms, help Dutton to utilise
resources effectively and deliver adequate items and services in marketplace.
 Merger- This tool specifies that administration can integrate with other firms to enhance
productivity and profitability. This helps members to use funds appropriately and make
system function adequately.
 Acquisition- This concept specifies that if firm is acquired by other company. Then
executive will be able to construct trust with people at international market.
There are various barriers that includes trade restrictions legislation are describe below: Embargo- This is obstacle which position problems to trade products at foreign nations.
It is defined as government institution which secure exports to another place. This
legislation restrict transfer of items from one country to another (Arends, 2014).
 Quotas- It is another barrier which defines that regulatory bodies impose trade
restrictions such as monetary values, number to obstacle export and import of items from
one country to another.
CONCLUSION
From the above report in is concluded that through globalisation, company are able to
manage all business activities at global level. For this, they develop global marketing strategies
in order to increase profitability and market share. Manager of Dutton may find out a way to
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arrange staff form all part of world in order to breaking down geographical boundaries. With out
share content or ideas in creative and supportive working environment, even if this occurs in
virtual world.
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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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