Global Business Environment Assignment Sample - CAMECO
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Added on 2020-12-30
Global Business Environment Assignment Sample - CAMECO
Added on 2020-12-30
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GLOBAL BUSINESSENVIRONMENT
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3P1 Key factors of cost, market, environment and competition that drive global commerce andtrade.............................................................................................................................................3TASK 2 .........................................................................................................................................5P2 Complexity of strategic challenges faced by organisations when operating in a globalenvironment ................................................................................................................................5TASK 3............................................................................................................................................6P3. How operating in global market influences organisation's structure, culture and functions......................................................................................................................................................6P4 Influences of ethical and sustainable globalization or various organizational functions.......9TASK 4..........................................................................................................................................11P5 Different ways decision making works effectively in a global context...............................11P6 Various routes and key barriers to internationalism on organisation ................................11CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................14
INTRODUCTIONA global business environment is defined as environment of different countries whichinfluences decision making. The global business environment consists of external and internalenvironment. The organisations must understand the concept of globalisation while operatingglobally or internationally. This report describes the various factors that influence globalisation(Rowell, 2017). The company considered in this report for analysing global businessenvironment is CAMECO. It is the largest company that trades uranium. CAMECO corporationis based in Saskatoon, Saskatchewan and founded in the year 1988. This report explains keyfactors of cost, market, environment and competition that drive global commerce and trade,complexity of strategic challenges faced by organisations when operating in a globalenvironment. It Influences of globalisation on organisational governance and leadership,structure, culture and functions. It also describes influences of ethical and sustainableglobalisation on organisational functions and the different ways of decision making. In last partof report various routes and key barriers to internationalism on organisation is described. TASK 1P1 Key factors of cost, market, environment and competition that drive global commerce andtradeGlobalisation is defined as the exchange of goods and services with foreign countries.There are various factors that drive globalisation. Globalisation affects overall functionality ofbusiness. The driving forces are market, cost, technological advancements, etc. which influencesa company's expansion globally. These factors are described below-Cost factor- There is a cost variation in every country (Miller and Jentz, 2017). There areother opportunities of Cost drivers that help in building economies of global scale and highproduct development. Key factor is a limiting factor that for determining sales volume, labour,production and materials. CAMECO considers all these factors while expanding globally. Market factor- In recent years there is a saturation of domestic markets, it has givenopportunities for global expansion and overcome this problem. The opportunity for using globalmarketing channels, having common customer needs and transferring of market are opportunitiesof internationalism.
Environment factor- Environment is the surroundings in which business is operated.There are various factors which influence globalisation like social, technological, legal andpolitical. These play an important role in developing and growth of companies at global level.CAMECO formulates various strategies that help in operating business at foreign countries. Competition- Competition is an important factor to analyse before operating in foreignmarkets. CAMECO is the manufacturer of uranium and it has competitive advantage in miningindustry. The company has to adopt new technology and innovation in their functioning to becompetitive in market. CAMECO uses artificial intelligence for dealing with heavy equipmentthat gives a great competitive advantage. Employees are treated well by this organisation. Theyare given insurance policies, incentives, safeguards for supporting their workers. PESTEL Analysis of CAMECO:Political factors- Political factors are significant for determination of profitability oforganisation in other country or market (Saleem, 2015). CAMECO corporation is dealing inindustrial minerals and metals in various countries and it faces different political issues.Companies have to analyse all rules and regulations of that country before expansion andoperation. CAMECO is affected by various political issues, laws and regulations. Economic factors – CAMECO faces different economic factors while operating indifferent countries like inflation rates, interest rates, savings rate, foreign rates, and economiccycle that helps to determine demand and investment (Lewis, 2019). CAMECO considersdifferent economic factors before doing PESTEL analysis like type of economic system,exchange rates, efficiency of financial markets, inflation rate, etc. If the inflation rate increasescompany's product rates will go high. Social factors- Societal culture affects the environment of organisation. Factors analysedby CAMECO corporation while expanding globally are demographic and skill level ofpopulation, culture, attitude, leisure interest, entrepreneurial spirit, class structure, hierarchy andpower structure. If population of any country is less, then CAMECO can enter that market andmake profits. Technological factors- Technology is a rapidly growing and organisation should workaccording to the new changes in innovation and technology. CAMECO corporation involvesdifferent factors for conducting technical analysis like – impact of technology on productoffering, rate of technological diffusion, impact on cost structure, etc. As when their
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