Global Business Environment Essay - Dutton
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Added on 2020-07-22
Global Business Environment Essay - Dutton
Added on 2020-07-22
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GLOBAL BUSINESSENVIRONMENT
Table of ContentsINTRODUCTION...........................................................................................................................1TSK1................................................................................................................................................1P1 Key factors of Cost, market, environment and competition which affect global trade ......1TASK2.............................................................................................................................................3P2 Explain Complexity of strategic challenges faced by company when they run their work ininternational market .................................................................................................................3TASK3.............................................................................................................................................5P3 Explain influences of globalisation on firms governance and leadership,structure, functionsand culture ................................................................................................................................5P4 Explain influences of ethical and sustainable company on organisational functions ..........7PESTEL analysis of Dutton.............................................................................................................7TASK4.............................................................................................................................................9P5 Explain different ways decision making can work effectively in a global context ..............9P6 Determine various routes to internationalisation an organisation .......................................11There are several routes related to globalisation of Dutton are explain as follows:.................11CONCLUSION .............................................................................................................................11REFERENCES..............................................................................................................................13
INTRODUCTIONGlobalisation is a process of expending business activities out side the country. Itsincrease company's economic independence through cross boarder movement of product,services, technology, capital and many more. Through international standard, quality of productmay improve. Various firm used globalisation as strategic tool in which they are able to risereachability as well as profitability. That also improve brand value of product and services. Inthis assignment Dutton firm are used to analysis impact of global business activities. It is a smallscale business unit that run their function in United Kingdom. Management of Dutton want toexpand their business operations in other country (Adger and et. al., 2013). This report coversfactors of cost, market, environment, competition etc. and complexity of strategic challengeswhich are faced by company. It also covers globalisation and their impact on organisationperformance and productivity. TSK1P1 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 andplan. 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'ssatisfaction as well as their experience. But various factors and elements may effect global tradeor 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 thecompany expansion like shipping, logical operations, technology and many more. Someimportant factors which affect international market are explain as follows: Research and development: It help to develop quality of product and services whichcreate 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 theproduct. Exchange rate conversion: Exchange rate are change on daily basis. It create negativeimpact on product cost. So that, company may use hedging strategies in order to reduceimpact of exchange rate on multinational trade. 1
Taxation: With change in country location, rule and regulation of the government relatedto taxation are vary. So that, Duttonmay follow all policies of that area to run wholebusiness task in an effective manner. Its directly affect cost of goods and services. Marketing and advertisement:Company develop marketing plan in which in includespromotion, advertisement, budgets, finance and many more. Firm are spend lot of moneyin this function. This effect cost of product. Market factors which affect global trade: In international trade various type of marketmay affect firm profitability and performance (Brouthers, 2013). Some of the important factorswhich create impact on global commerce are discuss below: Geographical factor: Management of the company may keep track what going on inselected regions in order to sale product effectively. According to needs and wants of thatarea customers, firm may create product to sell or full fill demand in an effective ways. Demographic market: Identify target clients preferences, behaviours, attitude and manymore to understand purchasing habit of the consumers. That create positive as well asnegative impact on enterprises profitability in long period of the at market place. Competitors: When company decided to operate business task at global location, thenthey make plan to analysis competitors strength and weakness. They find out the maincompetitors 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 maycreate impact on enterprises performance. But in international trade mostly external factorscreate high impact on company profitability a as well as operations. Political and legal: Government make laws for international trade which affectglobalisation and country growth. Dutton wants to follow all rule and regulation of eachone country where they run their business operations (Cantwell, Dunning and Lundan,2010). Political relationship between two nations may create positive as well as negativeimpact on firm world-wide business. Economical: When company expand their work, then they analysis economicalcondition of location where they operate. Some economical factors like inflations,exchange rate, taxation policies etc. may affect firm performance. 2
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