Influences of Globalisation on Organisational Governance and Leadership, Culture, Functions and Structure

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key factors of cost, market, environment and competition which drive global commerce
and trade.................................................................................................................................1
TASK 2............................................................................................................................................3
P2 Complexity of strategic challenges which are faced by organisation when operating in
global environment.................................................................................................................3
TASK 3............................................................................................................................................5
P3 Influences of globalisation on organisational governance and leadership, culture, functions
and structure...........................................................................................................................5
P4 Influences of ethical and sustainable globalisation on organisational functions..............6
TASK 4............................................................................................................................................7
P5 Different ways decision making can work effectively in a global context.......................7
P6 Determine the various routes to internationalisation an organisation may adopt, including
key barriers.............................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
International business environment defined as an internal as well as external aspects of
different nations that impacts on the business activities locally and globally (Laudon and Laudon,
2015). This will influence on the decisions of companies related to the capabilities and resources.
In the global environment two or more companies work together for earning mutual profitability
by trading with each other’s. This would help in developing dependency of all countries on one
another to make improve mental decisions for fast development. Every business requires to
understand changes of external environments and its impacts on business success in which the
co0mpany operates their operations. For this project report, C M Downturn Limited is to be
considered which is a leading logistic business of UK that is owned by Conrad Michael
Downturn since year 1955. But in 2018 company was acquired by Hong Kong private equity
investor Emerge-vest for the purpose of innovation and continual investment. Under this
assignment, key considerations of cost, environment, market and competition are determined
along with the influences over globalisation as well as strategic complexities which are directly
affect business operations at global level. Also, influences of globalisation on structure, culture,
leadership and governance of business are discussed along with the ethical and sustainable
globalisation. Lastly, discuss about the routes of internationalisation and decision-making
procedure.
TASK 1
P1 Key factors of cost, market, environment and competition which drive global commerce and
trade.
Globalisation refers to the interrelatedness of people, nations, business and government to
the political, social, economic, cultural over the international (Savrul, Incekara and Sener, 2016).
This is related to that kind of process that assists in increasing trade as well as technological
exchanges which is positively impacts on the developing and developed countries because
education technology as well as investment standards can be raised through the
internationalisation. Whereas, there are negative affects of globalisation as the richest countries
gets huge profitability due to the differences in taxation policies within different nations. There
are various key factors that is essential for the management of businesses which will drive the
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internationalisation process of business. With respect of C M Downturn, some of these factors
are as follows:
Cost driver: It is termed as an essential aspect for business functioning that helps in
expanding their operations at international level. With respect of C M Downturn, manager
expands business operations at international level so huge investment of money is needed. but
when the funds are not available on time when it requires that it can lead hamper productivity of
company (Voegtlin, Patzer and Scherer, 2018). Whereas, cost driver helps in facilitating the high
productivity and profitability of C M Downturn along with the good image as well as reputation
within the global market.
Market driver: Market is a place where buyers and sellers meet for exchanging the goods
and services in against of specific period of time. In order to expand businesses wither in local or
global nations it is essential to have stable market conditions that is crucial for C M Downturn
manager in analysing customers requirements. For the internationalisation manager of company
need to conduct proper and detail market research that will assist in gaining better satisfaction of
customers and accomplish economies of scale.
Environment driver: It can be defined as surroundings of human as well as non-human
beings that facilitate various conditions for the effective growth and development. While
expanding businesses, several environments needs to be evaluated such includes political, social,
technological, economic, cultural and so on. All these factors are essential for the clear
understanding of various laws and regulations that are followed in the different countries. This
will help manager of C M Downturn in designing appropriate strategies that assists in successful
expansion of business.
Competition driver: Competition is considered as an essential aspect that requires to be
evaluated by all the business organisations so that they can take advantage of global expansion.
In the context of C M Downturn, manager has competitive edge in the logistic operations over
their competitors (Zhang and Huang, 2019). Through the FDI the company raise their
interdependence within several nations that would assist in leading organisations in the
competitive way over its competitors. With the help of foreign direct investment C M Downton
increase their interdependence in various countries which would help in leading business in
competitive manner over their rivals.
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