Global Business Environment

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
1) Examine the key factors of cost , market, environment and competition which drive global
commerce. Also state benefits and challenges of these factors. .................................................1
2) Discussion of strategic challenges faced by firm while operating in global market..............4
PART 2............................................................................................................................................6
1) Measure the influence of globalisation on organizational leadership, governance, culture,
functions and structure. ..............................................................................................................6
2) Determine the influence of ethical and sustainable globalisation on organizational
functions. ....................................................................................................................................7
3) Explain various ways decision making can work effectively in global market......................7
4) Study and articulate several routes to internalization an firm may use including barriers.....8
CONCLUSION...............................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Global business environment can be explained as environment in various sovereign
nations, with factors outside to the home environment of a company which affect decision
making process regarding how to use resources and capabilities. Global factor influence business
politically, technologically, legally and so on. It is very essential to understand this factors so that
effective business tactics can be build. For this report Tufwell Glass is taken in order to complete
the project (Becker, 2018). It is a small and medium glass manufacture company located in
Crawley. Management is formulating strategies in order to expand the business in global market.
This assignment covers impact of cost, market, competition and environment on global business
environment. Various strategic challenges faced by company is studied. Along with this
influence of globalization on firm's leadership structure, functions and culture is examined for
better results. However, various models (Hofstede's, McKinsey's 7S model etc.) are studied in
order to ruin the business smoothly in open market place.
PART 1
Scenario:
Employees has been hired as a promoters of Tufwell Glass which is a small and medium
glass manufacturer suited in Crawley. Top level management of Tufwell Glass is planning to
grow the business in the global market so as to raise overall productivity and profitability ratio at
a tremendous scale in cut throat competitive world. Company requires expert suggestion
regarding phenomena of globalization and issues crated by globalization while entering into new
market (Brenton, 2019).
1) Factors of cost , market, environment and competition on global commerce along with
benefits and challenges of these factors
In order to grow the business in intense competitive world it is very significant to study
certain key factors such as, market, cost, competition and environment. By doing so management
is able to frame strategies in order to cope up with this key factors. These factors act as a barrier
in the smooth functioning of the business. Along with this competitive advantages is not gained
against rivalry as these key forces interpret the business working at a tremendous scale in neck to
neck competitive world. Tufwell Glass deeply study cost, competition, environment and market
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factors so as to drive global commerce and trade (Chandler, 2018). Below are briefly illustrated
this key factors which are as follows:
Cost: In order to grow the business across the boundaries it is mandatory to set the cost
of the product nominal. There should not be any kind of negligence in terms of quality. Tufwell
is looking to expand the business in other nation in order to create tough competition for other.
Organization by designing the product of glass need to set the prices which is less then the
competitor's. This will firm to drive global commerce and trade. As well as loyal client can be
build for longer time duration. All this raises overall productivity and profitability ratio at a
tremendous scale.
The Impact that key factor have upon global business environment in terms of
benefits:
 By offering high quality product at nominal and affordable price it is easy to trade and
commerce worldwide.
 Good quality product at best prices helps to attract large section of the potential
customers towards it which raises trade and commerce globally.
 Firm is able to build strong base for the Tufwell Glass goods in open market place which
is beneficial for trade and commerce (Epstein, 2018).
 Tufwell can also have an easy access to technology in UK which can help the company in
reducing its cost of production so that it can offer its products at low prices.
 Tufwell can also have bigger market in which it can deal so that it can earn large profits.
The Impact that key factor have upon global business environment in terms of
challenges:
 New business with innovative ideas is daily entering the market which raises neck to
neck competition level as well as trade and commerce is on stake.
 Every business are conducting research and development work in order to come up with
those technologies where labour cost can be reduced due to it decline trade and
commerce ratio.
Market: In order to survive for longer time period it is very essential to expand the
business in appropriate market. Tufwell Glass is thinking to expand the business in other country
so it is mandatory to scan the market place before entering with the product. Management should
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