Influence of Globalisation on Organisational Functions

Global Business Environment

Contents
Global Business Environment..........................................................................................................1
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Key factors that drive global business environment and trade..........................................3
TASK 2............................................................................................................................................4
P2 Strategic challenges faced by business while operating business in global environment
with specific examples...........................................................................................................4
TASK 3............................................................................................................................................6
P3 Influence of globalisation on organisational governance and leadership, structure, culture
and functions..........................................................................................................................6
P4 Influence of sustainable and ethical globalisation on organisational functions................7
TASK 4............................................................................................................................................8
P5 Different ways of decision making that work effectively for organisation in global context
................................................................................................................................................8
P6 Various routes that articulate and determine route to internalise a business including key
barriers....................................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
The term global business environment can be defined as the environment of different
countries by considering all aspects that relates business and its operations as they directly
impact on resource and capabilities of organisation. From perspective of global company or
organisation management deliver all of its products and services among different countries to
enhance their customer base and sales revenue. This report is written from perspective of CM
downtown limited which is one of the UK largest logistic company that is owned and run by a
family business. Along with this it is CM downtown follow three different perspective that are
flexibility, commitment and agility to satisfies customer needs effectively. Moreover, this report
highlights on key aspects that impact on global commerce and trade and strategic challenges
faced by organisation to operate business in global environment (Saleem, Adekola and Sergi,
2016). Influence of globalisation on organisational governance, leadership and structure will also
be focused in this report. In the last, methods related with decision making to work in global
context will be covered.
TASK 1
P1 Key factors that drive global business environment and trade
Globalisation concept determines changes in rules and regulations of country in which
local and international companies perform their work as per laws of a country. Cost, market,
competition and environment are some aspects that impacts on international trade and activities.
Therefore, management of CM Downtown focus on aspects to retain company productivity by
managing all work as per international rules and regulations that assist business to retain their
brand value and goodwill in market among various countries.
Cost factor- Cost is one of the crucial aspects for organisation and business which operates
and manage business beyond their local boundaries. This refers that there is change among
economy of country due to which purchasing power and transportation cost is also differ. So it is
the responsibility of management to invest capital and monetary transaction as per business
requirement (Boshyk, ed., 2016). In context of Downtown limited financial department of
organisation decide cost of its services by considering all essential aspects including fixed and
variable expenses. Example- Fluctuation in fuel prices impacts on overall profits of organisation
that relates with cost of services offered by downtown limited.

Market factor- The term market refers to the place where buyer and seller interact with
each other to exchanges within products and monetary aspects. Market performs an essential role
in expansion of business at global or local level. CM Downtown focus and monitor all essential
aspects related with market in order to identify customer needs and wants. It works as positive
factor for organisation that enhances market area to complete all task in appropriate manner by
offering services as per buyer expectation that boost trade activities at global level (Hill, 2017).
Environment factor- The term environment aspects consider all those points which
surrounds a business and its operations performing their work or activities at different places.
From recent years environment is one of the most important factor which is leading business to
manage their work to ensure safety of its environment by understanding laws of country. Along
with this it also demonstrate to perform work by understanding and making strategies that leads
business to perform work as per global trade. Further, it also helps to perform work as per ethical
value in business which generates goodwill in market.
Competition- According to existing market conditions competition among countries is one
of the crucial aspects that are impacting on business. This refers that there are large number of
companies are performing their work within similar industry due to which it is mandatory for
CM Downtown to perform its operations and functions with utilising and implementing unique
and innovative feature in its global trade activities (Kirton and Trebilcock, 2017). Moreover, CM
Downtown is a family owned business due to which they maintain quality such as better
infrastructure and less delivery time to offer better transport services to its customers. This also
results management is able to gain competitive edge in market.
TASK 2
P2 Strategic challenges faced by business while operating business in global environment with
specific examples
Global business and its rules are totally different which generates various issue for a
company to manage their task at global level. Similarly on other side globalisation also provides
various benefits such as increase in market area and revenues by approaching more number of
customers to earn more amounts of profits. Skilled, capable and potential employees are also
attracted and recruited by company through selecting candidates from various countries.
Disadvantage or challenges which are faced by downtown to expand business is difference in