Influences of Globalisation on Organisational Functions

This report evaluates the influences of globalisation on organisational governance, leadership, structure, culture, and functions. It also discusses the impacts of ethical and sustainable globalisation on organisation functions.

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1) Analyse key factors of cost, market, environment and competition that drive global
commerce and trade....................................................................................................................1
TASK 2............................................................................................................................................3
P2) Explain the complexity of strategic challenges faced by organisation when operating in
global environment.....................................................................................................................3
TASK 3............................................................................................................................................5
P3) Evaluate the influences of globalisation on organisational governance and leadership,
structure, culture and functions...................................................................................................5
P4) Evaluate the influences of ethical and sustainable globalisation on organisation functions 7
TASK 4............................................................................................................................................8
P5) Evaluate the different ways decision-making can work effectively in a global context......8
P6) Determine and articulate the various routes to internationalism on organisation may adopt
including key barriers..................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Global business environment defines as the different environment in the sovereign
countries that affects the decision-making process of an organisation. It affects the usage of
resources and capabilities of the company that is performed in order to attain maximum sales and
profit for the longer period of time (Berman, 2018). While considering the global environment
all the different businesses delivers their product and services in different parts of the world to
develop and enhance the customer share and profit of the company. This report is based on the C
M Downton that is the UK's largest and leading privately-owned logistic firm. They start their
business in-front of highly competitive industry by providing the different services. They
provides the infrastructure and scalability of a multi-national 3PL in combination with flexibility
and commitment to customer care of family run business. This report includes the key aspect of
cost and market environment that drive global commerce and trade, complexities of strategic
challenges, influences of globalisation, influences of ethical and sustainable functions of an
organisation. Furthermore, includes the different ways of decision-making work and various
routes to internationalisation.
TASK 1
P1) Analyse key factors of cost, market, environment and competition that drive global
commerce and trade
Globalisation is the process in which businesses and other organisations interact and
integrates with the different peoples, government and companies all across the worlds. It
includes the several rules and regulations of the country that affects the business of globally
connected companies as they has to follow all the laws and policy of the governance in order to
maintain balance in the business environment (Bhagra, 2018). There are different factors that
gets affected by the international trade and activities that are as cost, market and competition.
Thus C M Downton follows all the rules and policies of the governance in order to maintain
higher productivity and profitability of the business. Some of the factors that affects drives
global commerce and trade that are as follows as:
Cost factor- It is the factor that includes the price of the products and services that is
offered by the company in order to satisfy the need and demand of the customers. It is the most
important factors that generate the certain revenues of the company that further helps the
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business to manage and operates their business in effective manner. As the economic value of the
country keeps changes it affects the purchasing power of customers and buying power of
companies and transportation cost as well (Brenner, 2018). In context of C M Downton the
management team performs different functions and financial department make an investment
through which company gains the better output in terms of monetary funds. For example the
fluctuations of cost of fuel have large impact on the profit of the company as it slower the rare of
services.
Market factor- It is the factor that is related to the place from where company supplies
there goods and services to the customers and make a monetary exchange in return of their
supply. Market provides the space to the company to present their products and services for the
customers. C M Downton monitors and controls the market requirement and then generate their
services as per to fulfil the requirement of the customers. It provide the framework to the
company that provides the platform as from where they sales their products and manage their
operations in effective manner.
Environment factor- It includes the surroundings of the business that helps or resists the
performance of the company at various places (Buckley, 2018). It is the most important factor as
includes the laws as like unemployment and company must have followed that and also develop
different strategies as to manage the global trade. It also provides the support to the business in
which they manage their ethical values and goodwill.
Competition- As per today's scenario market has a lot of competition as because there are
different company that works for same goods and services and it creates a healthy competition.
Thus it is necessary for C M Downton to make some different and unique strategies that helps to
induce more creativity and innovation within the business that attracts the large number of
customer base. It further helps the company to measure long time success in their global trade as
C M Downton is the business that is owned by the family thus they manage their better
infrastructure and they delivers their services with minimum time.
The impact of social media and other application and services available to a global market
has positive impact in the relationship in between the customers and the brand and that are as
defined below as:
 Improved customer insights: It helps to make the better understanding of the C M
Downton as it allows the customers to share their insights. It helps the business to
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know more about the requirement of the potential customer by which the need of
the customer will get fulfilled in effective manner.
 Cost efficient: As the C M Downton will get managed their different operation
within the allocated budget and in that social media is most efficient platform to get
promote the products and services of the company as from the different online
websites etc. It imparts the affordable marketing and by this the business will get
more profit.
 Connectivity: The social media helps to get connect with the large number of
people and by this they easily get to know about the changed preferences and that
would easily accepted by the C M Downton.
 Better customer services: It helps the C M Downton to solve the different
grievances and issues of the customers and it imparts more assured as there
problem will get solved in timely manner.
TASK 2
P2) Explain the complexity of strategic challenges faced by organisation when operating in
global environment.
Global environment is the largest external environment that is generally not in reach of
everyone. It creates lot of opportunities as well as threat for the business and to manage that
Resources Company performs and develop different strategies (Caiazza, 2017). Organisation
gets some benefits as well that are as more number of customers, maximum shares that generates
more revenue. Business also gets the diversified knowledge in terms of employees that belongs
from different country or religion. C M Downton faced some different challenges while
expanding their business as they cover the wider society thus it is difficult to construct some
strategies at the time of promotional events. There are some challenges that are faced by the
company that are as follows as:
Political risk- It includes the rules and regulations of the governance that is develops for to
manage the different operations of the businesses. C M Downton follows the current policies of
the governance that has positive impact on the performance of the company. But as after the
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Brexit it is quite hard for the company to manage their operations in effective and efficient
manner.
Laws and legislations- Every country has their own laws and regulations that are
developed in order to provide better and safe environment to the company as well as customers
too and it helps to develop the economic conditions of the country. Thus each of the company
that takes part in the global network they must follow and perform every activity that is
associated with the government laws (Cumming, 2016). Company works on an larger platform
and spreads their services all across the world and they follow every rules and regulations of the
governance that helps them to perform all the different operations of the business in effective
manner. For example the transportation and logistics rules of the country are more flexible that
helps the company to perform their function with more sufficiency.
Social and cultural difference- Every country has a diversified culture that includes all
the people who follows different religion, area, educational qualification, background etc. For
example if the peoples of different society has more interest towards the local services then the
profit of the business gets affected and it get divided by which the revenue and profit of the
company gets reduced. Thus company provides different services and quality as per the demand
of certain market and make strong relation with the stakeholders that helps to perform all
activities in easiest manner. For this C M Downton provides employment to the local peoples
that has positive impact and enhances the global trade of the company.
Monopoly market conditions- It is the condition in which only one company is there in
the market that manages and controls all of their functions by their own. C M Downton focus to
manage the quality of their product and services that helps to make a loyal customer base for the
longer period of time and also to manage the competitive edge (Damarwulan, 2018). Thus these
strategies help to work against the monopoly marker and also provide the support while
expanding their business in global market. For examples, those countries that have quite lower
financial status that is better to the company and in this they produce the innovatory products that
act as the replica of rivals.
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TASK 3
P3) Evaluate the influences of globalisation on organisational governance and leadership,
structure, culture and functions.
C M Downton has the plan to expand their business and wants to operate their business
on global level for that they need to measure the structure, culture, leadership and functions that
helps to attains more growth and development.
McKinsey 7S model for the structure of organisation:
It is a model that is required to assist relative structure to the business and it is as
explained below as:
(Source: The McKinsey’s 7s framework, 2018)
HARD elements: Strategy: It could be used by the company to manage and controls the different functions
that is generated on random basis in the global environment. The management
department of C M Downton formulate effective rules and policies that measure to cross
over with the rivals (Hamilton, 2018). Structure: C M Downton follows functional organisational structure by which they
manage their employees and assign the work as per their education that helps the business
to measure more success.
 System: Company operates their business on global level and linked with business pattern
by which they easily manage their functions on global level.
SOFT elements:
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 Shared values: C M Downton manages the values and ethics of the company and also
controls the belief of customers but it doesn't has any effect on the business while
working on global level. Skills: It is the mandatory part of the company as they need the skilled and knowledgable
employees that emphasised the performance of the company. Staff: Company has managed their staff by providing excessive services that also fulfil
the basic requirement of the employees by providing rewards (Kasemsap, 2020).
 Style: C M Downton follows democratic leadership style and manages the strong
relationship with the other employees and customers as well.
Using Hofstede's dimensions of culture
This will be used in order to builds the positive environment within the workforce and
culture has a huge impact on the performance of business on global level. While C M Downton
follows this to enlarge the productivity of the business and that is as explained below as:
Power distance index: It supports the C M Downton to manage equality and diversity
within the business and also helps to reduce the complexities from the business.
Individualism vs collectivism: Company uses collectivism approach in order to build the
better environment that helps to provides more positivism within the business.
Masculinity vs femininity: C M Downton must use femininity that reduces the gap
between the men and women and reduces the different issues as like biased behavior and unequal
care (Khajeheian, 2018).
Uncertainty avoidance index: C M Downton uses this to resolve the different issues that
are generated from the misunderstanding that affects the motivation level of the employees.
Pragmatic vs normative: Company uses normative approach that provides easiest
environment within the business by which equal opportunity is provided to all to enhance their
work performance.
Indulgence vs restraint: C M Downton uses indulgence by which freedom is provided to
the employees by which they easily provides their reviews and makes an effective
communication.
Influence of globalization based on this model on the following features: Governance and leadership: Globalization provides the adequate platform in which a
large number of people make their interactions that means that governance and leadership
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must be get changed by which people of different culture work effectively within the
company (Liébana Cabanillas, 2018). C M Downton uses democratic style of leadership
that enhances the decision-making process of the company. Structure: The structure of organizational affects the working process of the company
and also affects performance as well. Thus it must be designed in a manner by which
each and every function of the company must be performed in effective and sufficient
manner. Culture: It states the values and belief of the company that is shared with the customers
as to maintain long term sustainability within the business.
 Functions: It reflects the different task that has been performed by the company to gain
high competitive advantage in the market.
P4) Evaluate the influences of ethical and sustainable globalisation on organisation functions
Globalisation includes the wider services and covers both ethical and sustainable factors
in order to manage their goods and services that is offered by them while operating their business
on global level (Mikurak, 2018). In addition to this, C M Downton develops different set of
tactics and strategies to fulfil the requirement of governance and stakeholders that has
contributed in the success and growth of the business. The ethical and sustainable functions help
the business to make more advantage from the competitive environment on global platform. On
the other hand, these functions are important as it develops the long term balance in the company
that assist the better conditions for the organisation. There are different types of functions that
are existed in global market and it is necessary for the business to follow that functions to make
their strong presence and these functions are as defined below as:
Integrity in business relationship: It is related to the sustainable factor that is required
when business will be operated on international level. With the help of it business will make a
strong connection with the customers and the other parties that has direct link with the
performance of the company. C M Downton makes the better relationship with the stakeholders,
employees, customers, clients, suppliers, competitors and many others as to take the long term
advantage in the marketplace.
Treat workers fairly: It is the ethical approach of the business that promotes the better
environment for the employee's to get performed in. It inserts the well beingness and
connectivity between the employees that emphasised the performance of each individual that is
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working in the company. It provides the security and safety of the employees and thus C M
Downton provides different facilities as like flexible working hours, insurance, adequate salary
and many others too. The better and fair treatments provide the better brand image that helps to
generate more loyalty (Newman, 2020).
Engage in sustainable activities: It is also be an ethical approach that is required for the
company to effectively manage the different operations that is generated on random basis. C M
Downton make different strategies and policies that helps to gain better advantages in the
international market and also develops the favourable surround that enhance the performance of
the company.
TASK 4
P5) Evaluate the different ways decision-making can work effectively in a global context.
Decision-making is the process that helps to achieve better outcomes by applying
applicable strategies within the business. The higher authority C M Downton uses this in order to
enhance the performance of the employee's and that influences the participation of them that
helps to achieve effective outcome within the certain period of time in an international level
(Nikolaev, 2018). To attain the better sustainability in the business environment the managers of
the company performs complete analysis of different marketing conditions and then make
strategies as per those conditions. While C M Downton apply this in their business and that is as
described below as:
Command: It is the formulation of different strategies that is developed by the managers
of the C M Downton to enhance the involvement of all the employees. It is the best way to
manage the staff and make an efficacious alliance of all the several activities to reduce the
complexities and uncertainty of the business.
Collaborative: It includes the participation of all the individuals that are working in a
team. It refers the condition in which every employee is free to give their suggestions and
feedback that helps to make an effective outcome. A leader plays an important role in which they
lead the company and ensures that all the functions performed with much more sufficiency. In C
M Downton leader has huge influence on the team members and makes the decision as per the
different situations.
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Consensus: It is the approach of the manager of a company to form various strategies
with the help of decision-making process and it generates the mutual understanding between all
the employees that has positive effects on the performance of the company. In addition to this, C
M Downton has the supreme and well managed staff that helps to perform their work and gain
higher advantage in the global level (Ronit, 2018).
Convenience: It is the power that is assigned to the higher authority of the C M Downton
and they are the leaders and managers that have that ability to influence the performance of both
an employee and the company. It helps to make and develop effective coordination that make a
path way to the efforts that is applied by the company. It also helps while dealing with the
international clients and fulfils their requirement to maintain more sustainability.
Evaluation of different ways of decision-making
As from the above discussion of decision-making process it has been defined that
collaborative is the best approach that fit and match ups the different functions that is performed
in the global market. It also helps to develop the values and belief of all the employees that are
associated with the company and enhances the performance of the business. It also develops the
strategic capabilities of the employees and with this there is the better utilisation of all the
resources that helps to gain the competitive advantages (Trad, 2019). Democratic leadership is
the style that helps to make an effective decision-making within the company.
Approaches of handling risk:
Risk is the factors that come as the complementary with the success and it could be
handles as like by avoidance, transferral and acceptance. Whereas, avoidance helps to take a side
from the risk and company measures their own strategies to overcome from that risk. Transferral
includes the transfer or conversion of risk that is generated from the market.
P6) Determine and articulate the various routes to internationalism on organisation may adopt
including key barriers.
There are different barriers in the route of internationalism and it has negative impact on
the performance on C M Downton that are as follows as:
Financial barrier: The companies that works on global level has suffered a lot in terms
of financial aspects and it is the most usual barrier and it also influences the performance of C M
Downton and for this they prepare the adequate budget and a portfolio to manage the effective
decision-making.
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Managerial barrier: The management is also the one that act as the barrier of an
organisation and it inserts a lot of uncertainty in the working culture of the business (Uhl, 2016).
C M Downton develops the plan as to manage the different functions that is performed and
managed by the company that helps to operate different functions within the business.
Routes of internationalisation:
As to expand the business different strategies has been adopted by the company in order
to reduce the different barriers that resist the performance of the company. C M Downton applies
different strategies to develop the success in the expansion of the company at global level and
follows some strategies that are as defined below as:
Merger and acquisition: It is the combination of two different business that is merged to
achieve higher sales and more profit. In this shares of the company will be taken by the other
company and C M Downton has positive impact on the performance of the company and with
more effectiveness.
Licensing: It is a process through which C M Downton will make the legal agreements with
the existing companies of the market. Thus company takes the license from the licensee and sale
the product and services of different brand. In this the licensee company charge some amount to
the licensor and it acts as the earning source of the company and reduces the risk of the business.
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CONCLUSION
It has been concluded from the above report that that business environment is very much
importance in the global market and it also influences the different operations of the business. It
is measured that global market has various factors that drives the performance of the company. It
is analysed that cost is the factor that drives that growth of the business on international level. In
addition to this, macro environmental factor has been analysed that has direct influence on the
performance of the company. There are different techniques and strategies that is opted by the
business in order to develop more sales and better revenues.
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ONLINE
The McKinsey’s 7s framework. 2018. [Online] Available through:
<https://expertprogrammanagement.com/2018/11/mckinsey-7s-framework/>.
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