Influences of Globalisation on Organisational 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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