Influences of Globalisation on Globalisational Governance and Leadership

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Analyse key factors of cost, market, environment and competition that drive global
commerce and trade....................................................................................................................1
TASK 2............................................................................................................................................2
P2. Explain the complexity of strategic challenges faced by organisations...............................2
TASK 3............................................................................................................................................4
P3.Influences of globalisation on globalisational governance and leadership, structure, culture
and functions...............................................................................................................................4
P4. The influences of ethical and sustainable globalisation on organisational functions...........6
TASK 4............................................................................................................................................7
P5. Evaluate different ways of decision making that can work effectively in a global context. 7
P6. Various routes to internationalisation an organisation may adopt including key barriers....7
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
The term “Global business environment” refers to environment where an organisation
performs operations across the borders with different aims and objectives. Basically, global
business environment consists of different elements like culture, economy, politics, and some of
other factors that may help a company in performing different operations with an aim of earning
profit. Over the years, many organisations has faced number of alterations within the
international market therefore it has become vital in today's time for companies to analyse the
environment in order to take decisions for their own betterment (Aithal, 2017). This report, the
organisation that has been taken into consideration is C M Downton Ltd. this organisation is
dealing in logistic industry and it was found in the year of 1955. Along with this, assignment will
put light on different key factors that mostly drive globalisation and helps company in reducing
different complexities of global business environment. On the other hand, this report will also
deliver the information related to globalisation is influence over ethical and sustainability. Lastly,
different ways of decision making and various routes of internationalisation will also describe
that can adopt by companies.
TASK 1
P1. Analyse key factors of cost, market, environment and competition that drive global
commerce and trade
The term “Globalisation” is referred to the element in which different companies conducts their
operations over different nations considering the trade related rules and regulations (Rupidara
and Darby, 2017). Has been analysed that, most of the business functions are affected by
globalisation of a business. If it is talk about C M Downton Ltd. then this organisation also got
affected by globalisation where some of the major factors are competition, environment, market,
cost and many more other and all of these driving forces are presented underneath:
Cost factor- This factor is considered as the primal force on the factor that drive
business companies towards globalisation. Basically, expense all things considered or benefits
contrast starting with one nation then onto the next. Cost drivers likewise incorporate expense of
crude materials, work and so on. Every one of these elements help a firm to be cost effective in
Market just as in advertise abroad (Soundararajan, 2018).. Worldwide sourcing is discovering
minimal effort different raw materials that logistic industry is importing and exporting around
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the globe. With assistance of it business benefits can be expanded through cost decrease and
expanded income in worldwide market. It is much needed by C M Downton Ltd. investigate
cost related elements cautiously before going for globalization (Vokoun and Daza Aramayo,
2017) Market Factor- Major forces that came in front is supply, demand, equilibri um, prices
of products and services of this factor. There are many reasons like saturation within domestic
market, companies within logistic industry collects a number of opportunities in rising
globalised market. If it is talked about C M Downton Ltd., then it is also dealing in the same
industry and got affected due to globalisationt. When companies go global, they will need
logistics to export their products. Downton is taking benefit of this market situation while
executing plans for expanding its operations to other countries (Trad and Kalpić, 2017).
Environment factor- The surrounding in which a business operates is called
environment. Environment consists of major factors which are social, technological, legal and
political. Downton took care of all these factors while going global (Wang and Peyvandi, 2018).
The rules and laws, social norms and government intervention, all these matters were looked by
Downton while expansion.
Competition- Another force, which majorly impacts upon company's productivity and
profitability. It made companies to gain ample number of strategic strategies to gain competitive
advantages. Under this industry some of the rivals like Wincanton plc, Purolator, CEVA
Logistics, XPO Logistics are some of the major competitors of Downton. Company critically
looks into working of all its competitors , their strategies and technologies used by them before
globalising.
There are various difficulties looked by organization going worldwide. Downton being a
logistical business organization have diverse arrangement of difficulties looked by organizations
managing right now. One of the significant trouble is providing to prominent and social
occasions. An appropriate store network must be set to meet explicit expectations of these
particular clients. These social occasions are remarkable tasks. Disappointment in conveying
these administrations could contrarily influence profitability and productivity of organization.
Alongside these difficulties C M Downton Ltd. and other logistic multinationals need an
accomplice to carry on their coordination’s business. Therefore, it can easily be said that
considering Globalization, it will be required by C M Downton Ltd. to look into some other
technological factors as well, so that it could reduce all the risks linked with globalisation.
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