Impact of Globalisation on Culture and Leadership

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
1

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
2