(Solved) Global Business Environment

IMPACT AND STRATEGIC
DIRECTION

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1 Introduction to concept of globalization...........................................................................1
P2 Challenges faced by organisations while operating in global environment......................2
P3 Influences of globalization on organizational functions, culture, structure, and governance4
P4 Evaluation of the influence of sustainable and ethical factor on functioning of CAMECO. 6
Critical Evaluation..................................................................................................................7
P5 Decision making in global context....................................................................................8
P6 Internationalisation of the firms........................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Globalisation is one of the most important aspect that has shaped our world since the past
30-40 years. Today, organisation across the world thrive in an environment where its easy for
them to grow on a large scale by using appropriate strategies and developments. The below
report identifies the key factors which drive globalization and its impact on the businesses. The
chosen organisation is CAMECO. The organisation is a chemical country based in South Africa.
The company is having 3,300 employees working globally (Pepper, 2017). The report
determines the strategic complexities which the company faces while operating in a global
environment. Along with it, it analyses in what manner operating in a global market influences
the structure of its organisation and its culture and functions. Also, the report evaluates the
influence of globalization on organizational decision making and strategies.
MAIN BODY
P1 Introduction to concept of globalization
An integration of markets in global economy is known as Globalization. This concept has
led in increasing of interconnections between national economies. Due to a number of reason the
pace of globalization has increased since past few decades. The reason include a rising demand
of product and services in international markets, the arrival of internet, social media etc.
In context of CAMECO, globalization has enabled worldwide access to sources of raw material
which are cheap. Also, it has enabled the organization to be cost competitive in its market.
Driving factors of Globalization Containerization: Today, cost of ocean shipping has came down. Due to this, bulk
shipping and other efficiencies have become more cheaper, and for companies such as
CAMECO it has become easy to transport and buy products from different countries
across the world easy. Technological Change: Technological change has allowed organizations across the
world to reduce the cost of communicating and transmitting easy. It has made companies
to build platforms where they can share information fast and provide effective products
and services to their consumers. This in terms, has led globalization to rapidly increase. Economies of scale: Economists across the world believe that from an increase in
minimum efficient scale associated with some industries. From the rising of MES, the
domestic market has become too small to satisfy the selling needs of these industries.
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This has made companies such as CAMECO to look for global consumers and fulfill
their needs. This has rapidly brought globalization in an increase and countries to fulfill
their economic needs.
Impact of digital technology upon Globalization
Digital technology has transformed the way we see our world today. The rise in digital
technologies has allowed people across the world to share their views, opinions, likes and
dislikes etc. on a single platform easily. This has brought cultures, nations, individuals closer to
each other. Along with it, it has made people efficient in choosing what they want easily and
fulfill their personal needs and demands. The demands have made industries and corporations
across the world such as CAMECO to produce its products on large scale and earn good
profitability. Digital technology has also allowed firms across the world to advertise and promote
their products easily on platforms such as social media, and internet. These advertisements and
promotions have increased the demand of products from global consumers and has helped to sell
their products in global market. Hence, it has brought a huge increase in globalization and has
allowed companies to gain new markets altogether.
P2 Challenges faced by organisations while operating in global environment
PESTLE Analysis of CAMECO
 POLITICAL - The political environment across the world and majorly in the countries
where CAMECO is selling its products and services have a large impact on the
organization. Factors such as government resource allocation and time scale has made it
difficult for the company to make its place in United States. The government of the
country have allocated very fewer resources to the organization to thrive in the markets of
USA. This has done so that the domestic companies dealing with chemicals and products
in America tends to earn large profits and bring growth to the economy of USA.
 ECONOMICAL: Factors such as availability of core infrastructure in the countries in
which the organization wants to grow itself impact the company and its decision making
as well. For example, recently CAMECO wanted to set its new plants in Tanzania in
order to produce raw materials in order to improve its products availability.
 Lack of availability in the country to set up the core infrastructure made it difficult for the
country to set up its plants and ensure new product availability in the market. Although,
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