Impact of Globalisation on Culture and Leadership

This report explores the impact of globalisation on culture and leadership in the context of Allan Reeder, a London-based distributor. It discusses the influence of globalisation on governance, leadership styles, functions, and cultural norms within the company.

Global Business Environment

Table of Contents
Contents
Contents...........................................................................................................................................1
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
P1 Key elements of cost, market and competition that drive commerce and trade.....................1
P2 Demonstrate the several strategic challenges faced by corporations in a global environment
.....................................................................................................................................................3
P3 Determine the impact of globalisation on culture and leadership..........................................4
P4 Determine the influence of ethics on globalisation................................................................6
P5 Evaluate different ways of making decision in an organisation.............................................8
P6 Examine various routes of internationalisation of business in global context.......................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Globalisation involve the exchange of goods or services and bring new and advanced
technology and also meet the expectations of customers across the globe (Ahi and et.al., 2017).
In relation to this, it helps the firm to come up with latest trends and fashion so as to achieve
competitive position within marketplace. Also, it does not involve restrictions of trade barriers
and provide easy movement of goods across the boundaries of the country. This report is based
on Allan Reeder which is headquartered in London. It deals with range of merchandises such as
butter, milk, cream, cheese and many more as it is largest distributor in UK. The main aim of a
respective firm is to provide excellent quality of products at a reasonable price to gain maximum
satisfaction of clients. This report comprises of key factors that drive the growth of globalisation
and several challenges that are faced by the firm in context of global environment. This report
also includes the influence of globalisation on culture, leadership, function and structure and also
various ethical ways to achieve sustainable development. At last, it covers several ways of
making decision and modes of entering the business at an international level.
P1 Key elements of cost, market and competition that drive commerce and trade
Globalisation involve the connection and interdependence of merchandise or services in
between people, companies as well as government across the globe (Arora and Squier, 2019). It
helps in bringing new and advanced trends by emphasising on elimination of trade barriers
across the boundaries of the countries. Economic globalisation aids in development of nation by
ease in exchange of currencies and FDI which provide assistance to gain sustainable position
within a marketplace. Looking towards the social dimensions, there is increase in use of transport
and communication due to which there is high growth rate of globalisation as it meets the needs
and expectation of customers and accelerates the profit margin. In the context of political
condition, it allow free movement of ideas, people, ideas and technology as there is lack
interference of government and removal of several tariff and non-tariff barriers which facilitate
smooth operation of a corporations. In the context of Allan Reeder, various key factors are
prescribed below:
Innovative technical awareness: This is most crucial element which involve new and
innovative technology as there is increase in use of artificial intelligence which saves time and
aids in conducting fast operation of a business with greater accuracy and efficiently. The
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manager of Allan Reeder uses such sophisticated machines that maintain proper systematic
procedure and hierarchy in a business. The new and innovative technology used by Allan Reeder
would simplify the overall working procedure and facilitate smooth operations of a business.
Foreign Direct Investment (FDI): This provide a vast opportunity to Allan Reeder to
capture more market share and attract investment facilities from different parts of country
(Bhagra and Sharma, 2018). This allow the business to grow at a global level and help in
generating multiple streams of revenue across the globe. In addition to this, it enhances the
productivity and boost the sales within a marketplace. FDI provide a great prospect to Allan
Reeder to make their business at an international level and promote more growth and prosperity
to nation.
Better transportation facilities: Due to the reason of globalisation, there is great
improvement in transportation and communication facilities as it allows easy movement of goods
from point of production till the point of consumption. The senior authority of Allan Reeder
delivers fast service among their customers at a global level and use refrigerator in
transportations so that it could not allow to spoil its products and ensure greater transparency.
Allan Reeder could use great transportation facilities so that it can render fast services and avoid
the wastage and spoilage of goods in an efficient manner.
The different factors of globalisation allow the business enterprise to increase the
exposure and contribute to greater success in future. This improve the overall performance and
help the Allan Reeder to generate revenue. The elements such as cost, market, environment and
competition which provide desirable level of outcome. The appropriate framework of these four
elements are presented as follows:
Cost: It is a broader term that include several aspects such as sales volume, price,
revenue and many more. There is cost variation due to demand and supply of merchandise
present in the market. The operation manager of Allan Reeder acquires in bulk quantities so that
it could decrease the shipping cost as well as saves time and thus accelerates the profitability
within the confines of dairy industry. Allan Reeder could make acquire goods in large quantities
from suppliers so as to minimise the overall cost of operations of a business and thus generate
more profits.
Market: The top manager of Allan Reeder could focus on penetration strategy so that it
could improve the market share. Also, it could focus on more marketing and promotional
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campaigns which help in gaining large access of clients and create brand loyalty among them
(Candelo, 2019). It can expand its operations in different regions in order to increase revenue and
operations around the world. Allan Reeder could use social media platforms such as Facebook
and Instagram in order to create more awareness of merchandise among its clients.
Competition: It is necessary to analyse this factor because of globalisation. Allan Reeder
would determine its rivalries and adopt new and creative technology so as to gain competitive
advancement within a market. Also, it renders a specialised training among staff and provide
excellent offerings among their clients which develop more satisfaction and increase the brand
awareness among the buyers. The concerned firm also emphasise on conducting market research
to identify the latest trends and nature of competitors which in turn boost the sales . The top
manager of Allan Reeder would follow product differentiation strategy so as to grab more
attention of buyers and develop brand loyalty and thus create a strong rivalry edge.
Environment: These are categorised into two parts that is internal and external
environment which affect the operations of a company.
Internal environment: These are controllable in the hands of company which involve
employees, management, working procedure and other internal affairs of the business enterprise.
In the context of Allan Reeder, it has an efficient manager who control the operation and make
proper strategy and also it makes proper utilisation of resources which allow to follow proper
hierarchy in an organisation. Also, hiring and recruiting best candidate in case of Allan Reeder
would generate advanced ideas and ensure growth in a desirable manner.
External environment: It consist of various factors such as political, social, economic and
legal factors which are beyond the control and affect the operations of the company. There is
stable political situation in London which allow company like Allan Reeder to make long term
plan and policies due to its constant ruling parties and also it maintain high standards by
rendering good quality of merchandise to maintain smooth operations of a business in an
effective manner (Evangelista and Mac, 2016). But at the same time, impact of Corona Virus
which has been widespread has affected the overall operations of a company and thus lead to
negative consequences.
Therefore, these elements have a positive influence on the company that give rise of trade
and commerce which help in contributing majorly towards the success of the company.
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P2 Demonstrate the several strategic challenges faced by corporations in a global environment
International trade laws involve the rules and customs which are operating in a global
market and provide systematic regulation of currency across the globe (Gandhi, 2017). The main
motive of World Trade organisation is to promote an optimum balance between the trade that
allow to enjoy greater economy of scale and access to more capital. The international trade laws
in case of GATT provides the agreement among the two countries that emphasise on minimising
trade barriers or quotas as it covers the negotiations on an international trade level. In the context
of Allan Reeder, several strategic challenges are given beneath:
Supporting example 1. The manager of Allan Reeder could facilitate easy exchange of current
among the nations which provide assistance to a customer as they could acquire merchandise in a
best possible manner which provide coordination.
Supporting example 2. Allan Reeder would acquire licensing and approval of government by
setting its business at an international level as it accelerate more sales and remove any kind of
tariff.
Mobility of jobs: There is giant losses of job opportunities as there is risk of obsolescence
and artificial intelligence that allow the business enterprise to follow automatic procedure and
use of innovative technology as it replaces people. This is one of the major challenges faced
which decline the living standards of people and create poverty.
Huge loss in cultural diversity: Due to an era of globalisation, there is greater chances of
cultural clashes which create difference in opinions and language barriers. This results in
creating confusion and misunderstandings among them.
Size: The size of Allan Reeder is small as they have limited infrastructure as well as
fewer resources which hamper the growth of a firm and thus affect the profitability and minimise
the sales.
Lack of expertise advice: For a small business-like Allan Reeder, it is difficult to hire an
expertise or technical knowledgeable person because it requires huge sum of investment. In a
competitive era, it is necessary to hire a consultant who can render a proper advice so as to
achieve a rivalry edge and help in gaining an effective growth in future (Kasemsap, 2018).
Recommendations on overcoming strategic challenges
The manager of Allan Reeder would create a strong relation with suppliers so that it can
purchase the required quantities in proper time period. They provide excellent raw materials in
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limited cost so as to gain maximum exposure across the globe. It could make an appropriate
planning by deciding the course of action and organising of work so as to avoid duplication of
activities which help in making judicious usage of resources. Also, the manager would evaluate
and monitor the activities by judging the accuracy and comparing the actual performance with
standards which help in accomplishment of task in a limited time period. In addition to this, the
manager should provide protection towards the environment as Allan Reeder focus on reducing
carbon footprints adopt the strategy of reduce, reuse and recycle so as to gain positive image
within a marketplace. They could recruit the potential candidate who could work with
enthusiasm and zeal and aids in accelerating the efficiency and produces a desired level of
output. Networking is another major prospect which help the company to grow at an
international level and generate more sales and positive reputation.
P3 Determine the impact of globalisation on culture and leadership
With reference to Allan Reeder, the influence of globalisation on culture, governance,
leadership and structure are detailed below:
Governance: The company has to follow several rules and regulations and policies and
procedures which varies from countries to countries and also it helps in maintaining cordial
relation with stakeholders such as investors, shareholders, suppliers, creditors and many more
(Keivanpour, Ait Kadi and Mascle, 2017). Also, the manager of Allan Reeder maintains proper
code of conduct and follow proper culture so as to maintain proper diversity and it implement
proper laws and legislations that provide an enormous growth of a business in a fair and
transparent manner.
Leadership: The leader of Allan Reeder would use situational theory as it aids in making
modifications in a business due to globalisation. This provide a positive atmosphere in a
company and help in making necessary transformation so as to achieve a sustainable advantage.
The manager of respective firm also makes use of democratic style by inviting the ideas and
suggestions of staff and motivate and inspire them so that they could work in an effective manner
and this brings positive consequences towards the growth of a company.
Functions: There is both positive and negatives aspects of every job. The
internationalisation has a major impact on competitive environment as it allows the company to
determine the taste and preferences of customers and to satisfy their requirements. This allow to
enjoy greater economy of scale and generate greater access of capital across the globe. The Allan
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Reeder could focus on merger and acquisition as well as joint venture so as to expand its
operations and boost the sales and generates maximum output.
Culture: This cover various norms, traditions and rituals that has a major influence over
the operations of corporation (Marwansyah, 2017). Allan Reeder uses Hofstede culture which is
described with six dimensions that are mentioned below:
Power distance index: Allan Reeder has power to allocate the task among the
subordinates in accordance to their specialisation as it help in attainment of business objectives.
Individualism verses collectivism: In this, group of people formed together to attain
targets in a respective time period. The manager of Allan Reeder provides compensations and
incentives and also appreciate their efforts so that they could work beyond their potential and
promote a sense of team spirit among them.
Masculinity verses Femininity: This emphasise on division of roles and responsibilities
between men and women in accordance of their talent. The manager of Allan Reeder should
make proper use of opportunities and promote equalities in their workplace.
Uncertainty avoidance index: This describes a situation among the team members in such
a manner that they deal with anxiety due to work pressure. The senior authority of concerned
firm deal with changes and provide training among their staff so as to prepare them for upcoming
challenges due to globalisation.
Long verses short term orientation: The senior authority of respective firm prepares long
as well as short term goals so that they could ensure a greater success and thus ensure a proper
growth within limited time period.
Indulgence versus Restraint: People are indulged towards the attainment of targets as
they are optimistic in nature (Rantšo, 2016). Allan Reeder focus on feedback and render an
effective solution to their clients and also provide a work life balance which ensure a greater
success.
Structure: Allan Reeder use McKinsey 7S model to make changes in a business
environment as these are presented below:
Strategy Allan Reeder use market penetration strategy and use promotional campaigns to
capture the large market share and contribute a significant position within a marketplace.
Style The leader of concerned firm uses democratic style of leadership as it creates a
harmonious environment and boost the morale and motivation of employees.
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Skill the manager could set a target and train their staff in order to accelerate their skills
and knowledge base which in turn maximise the efficiency.
Structure the senior authority maintains delegation of authority and unity of command in
their workplace so that there is no sort of confusion and misunderstandings among them.
Staff the staff of respective firm are dedicated towards their work and work with proper
coordination and cooperation that build a sense of team spirit among them.
Shared values the manager of Allan Reeder maintain code of conduct and ethics in a
business which create goodwill among the customers.
System the manager of Allan Reeder maintains a proper hierarchy which facilitate smooth
flow of activities and also it uses Enterprise Resource Planning to monitor and evaluate the
activities of staff which promote a better decision making and aids in completing task.
P4 Determine the influence of ethics on globalisation
There are various ethics and value and norms which is essential for running the
operations of a business in a coordinated manner. In an era of globalisation, Allan Reeder
emphasise on adding greater value proposition among their customers by ensuring quality
specification as it uses natural ingredients in their working procedure (Rowley, 2017). This built
an efficient trust and loyalty of brand among the buyers at a global level. With reference to Allan
Reeder, the same is showcased below:
Integrity: This involve maintaining proper integrity and honesty in a workplace so as to
built trust and coordination in an organisation. The senior authority of Allan Reeder maintains
proper moral principles and show respect among their staff so that it could enhance greater
productivity and coordination in a workplace. It provides direction of action and evaluate the
overall activities which develop accountability and transparency. This assist the firm to complete
its targets within set time frame and help in gaining more productivity.
Fair treatment with staff: There is various laws and regulations that provide safety
among their workers. The manager of Allan Reeder deal with health and safety laws as well as
employment laws so as to promote the interest of workers and boost their morale and motivation.
This provide assistance to firm to increase maximum job satisfaction and employee retention.
There are several departments in a business entity which includes human resource,
finance, marketing and many more as it helps in completing targets. The company has to follow
various legal formalities in order to survive at an international level and help in gaining
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sustainable advantage. Various functions of organisation are given beneath that are concerned to
several ethical factors:
Finance: Finance is considered as the blood of business as it helps in various aspects of a
business. It involves preparation of budgets, cash flows, financial statements like provision and
reserve account, depreciation account which depict the true picture of a corporation. Also, the
finance manager of Allan Reeder makes proper financial planning so that it could make optimum
utilisation of funds in a right place and also it could emphasise on diversification and
modernisation which help to maintain sustainability in a long run. Allan Reeder make an
appropriate strategy regarding the utilisation of funds so as to improve the overall effectiveness
and help in expansion of its operations.
Marketing: This is regarded as the core department in every organisation as it involves
brand equity, labelling, packaging, grading and standardisation and many more (Shageeva and
et.al., 2017). The manager of Allan Reeder creates a strong promotional campaign and
advertisement so that it could contribute more sales at a global level which in turn maximise the
profit ratio in a marketplace. This also accelerates the market share and bring proper
coordination which bring fulfilment of task. Allan Reeder could focus on segmentation and
positioning of product so as to gain a prominent leader in a marketplace.
Human resource: The role of Human Resource is valuable in a corporation as it involves
recruitment, selection, training and development and so on. The HR manager of Allan Reeder
follow proper systematic laws and legislation so that it could hire a best candidate who could
prove to be advantageous and produces maximum output. Also, it renders an effective training
among their staff so as to increase their skills and make them capable of providing them with
promotions and transfers. Allan Reeder could have best selection procedure so that it has
attracted and talented workforce which enhance the overall growth.
These department has interrelation with one another and work together so that they could
achieve that targets within a short time period. The manager of Allan Reeder coordinates all
activities in a systematic manner in order to maintain ethical and sustainable advantage for the
company.
P5 Evaluate different ways of making decision in an organisation
The firm should make an appropriate planning by deciding a best alternative among the
various options available by assigning the work in suitable manner which ensure proper
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allocation of resources (Solarin, 2018). This assist the company in making proper decisions and
thus lead to fulfilment of targets within limited time. While referring to Allan Reeder, the
procedure of decision making are as follows:
Determine an issue: The manager of Allan Reeder analyse the problems and interact with
employees and listening their issues. This help the company to determine the aspect of a problem
in order to facilitate smooth conduct of activities.
Render a solution: the senior authority of respective firm would render an effective
solution among their employees through an excellent communication skill so as to avoid any sort
of confusion and help in achieving future goals.
Evaluating the effectiveness: The manager of Allan Reeder would evaluate the working
procedure and maintain strict discipline in their workplace so that task is accomplished within set
time period.
Controlling and monitoring: This is most crucial aspect which involve the senior
authority of concerned firm to direct and monitor the overall activities and compare standards
against actual performance which help in achieving predetermined goal in a respective time
period.
It is necessary for Allan Reeder to listen the ideas of everyone in an organisation as it
collects necessary information which help the firm in making best decision. Brainstorming is
another technique that provide an effective solution to their clients and help in generating an
excellent idea which help in attainment of business objectives successfully.
P6 Examine various routes of internationalisation of business in global context
There are several ways to make the business at international level as it renders an
enormous opportunity for business to grow at a global level as it helps in diversification and
expansion which allow the firm to have greater access of capital (Wei, Thurasamy and Popa,
2018). With reference to Allan Reeder, the same is detailed below:
Joint venture: This involve the combination of two or more firm which share the pool of
resources for achievement of common task. The manager of Allan Reeder would provide a
greater opportunity to become a prominent market leader and access to new markets and also it
prove to be the benefit for making new and advanced innovations as it minimise the cost of
production by acquiring goods in huge quantity and thus generates a strong brand name within a
marketplace.
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Merits: This assist Allan Reeder to share resources which provide technical knowledge
and help in producing desired level of output.
Demerits: The drawback is that there is greater chances of loss which reduce the
effectiveness of Allan Reeder.
Franchising: It is a broader term which allow the firm to takeover the name of business
in return for fee. The manager of respective firm could use this strategy as it is a speedier process
of growth with limited employees and enhance the brand equity by maximising the market share.
This improve the overall performance and minimise the risk by taking the responsibility of
working capital and thus contribute more success.
Merits: This provide an opportunity to Allan Reeder to open its outlets at a global level
which help in expansion of a business in a competitive era.
Demerits: There is chances of conflicts and disputes which decline the overall
productivity and improve the overall cost of operations.
Direct Exporting: This consider the process of purchasing goods or services directly
from manufacturers which minimise the cost (Wu, Chen and Jiao, 2016). The top manager of
Allan Reeder would purchase raw materials and other essentials from the production department
as it saves transportation cost and thus decline the production cost and maximise more sales in an
entity.
Merits: Allan Reeder could minimise the production cost and improve the profit margin
that proves to be more beneficial.
Demerits: it could lead to decline in profit margin as products are sold at a low cost in
case of Allan Reeder.
The senior executive of Allan Reeder after analysing all factors would opt joint venture.
This help in minimising the burden of risk as it assists in rendering an expert advice which
involve sharing of resources which aids in achievement of objectives within shorter period of
time. Also, it provides flexibility and modification in business that provide a growth of entity at a
global level. This enhance the overall productivity and allow to enjoy greater access of economy
of scale in a marketplace. Therefore, the manager makes proper evaluate the activities of
subordinates and take corrective actions in case if there are any deviations arise.
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CONCLUSION
From the above report, it can be summarised that the emergence of globalisation has
bring various changes in a business in an effective and efficient manner and help in achievement
of task within limited time period. Globalisation is most significant aspect in todays modern era
as it helps in bringing advancement of technology and expertise knowledge that bring proper
coordination and cooperation within a marketplace. It has been analysed that various factors such
as excellent transportation and communication facilities as well as FDI promote the growth of a
business at a global level. Also, McKinsey model and Hofstede culture is used to determine the
influence of globalisation and various strategic challenges faced by business at a global level is
discussed. Decision making procedure and expanding the business through franchising, joint
ventures and direct exporting help in gaining the maximum exposure of a business at a global
level.
REFERENCES
Books and Journals
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