Influence of Globalization on Organization Governance and Leadership

GLOBAL BUSINESS
ENVIRONMENT

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
Key Factors of Globalization.......................................................................................................3
LO 2.................................................................................................................................................4
Complexity of Strategic Challenges Faced by Organisations When Operating in a Global
Environment................................................................................................................................4
LO3..................................................................................................................................................6
Evaluate the influence of globalization on organization governance and leadership, structure,
culture and functions....................................................................................................................6
Influences of ethical and sustainable globalization on organizational operations.......................8
LO 4.................................................................................................................................................9
Different Decision Making Strategies for Globalisation.............................................................9
Various Routes to Internationalisation an Organisation May Adopt, Including Key Barriers..10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Global business environment is combination of different external market factors which
differs according to country. These external factors also impact the decision making of the
business organization and increase the potential to compete in the market effectively. it is also
bvery essential for business organization to analyse current resource to develop strategic
planning for future growth and survivability in the market. Global business environment also
consists on internal factors which impact the performance of the business organization to attain
opportunities to become leader in the market and gain higher profit margins effectively. in this
report there is brief explanation about key factors of globalisation which impact performance of
Allan Reeder company which is one of the biggest dairy products and non-dairy company in UK.
report also discusses some challenges which are faced by Allan Reeder in globalisation of their
business in the market, thus different theories and strategies is provided in the report to increase
opportunity.
LO 1
Key Factors of Globalization
It is very essential for business to analyse all the key factors of globalisation which helps
to increase the growth and expansion of the organisation effectively (Pikhart, 2017). Due to
increase in the demand of customers and change in health concerns the demand of dairy products
has increased which also increases the opportunity for Allan Reeder to increase their market
share by satisfying customer needs. This also increases the brand value of the company and
provides better opportunity to compete in the rising competition effectively. Allan Reeder also
needs to develop effective strategies which increases the potential to become more effective and
understand all the market factors to attain core competency effectively.
Trade Liberalisation
Trade liberalisation is the factor w which helps Allan Reeder to gain opportunity to
expand their business outside UK at lower cost. UK government provides fewer restrictions in
export to support potential business to grow and increase economic value of nation effectively.
After Brexit UK has developed new trade policies which help business sector to increase their
sales outside UK and support economic growth of the nation effectively. Increase in business
potential has helped to increase the globalisation in the market and gain more profit effectively.

This also helps to develop better goodwill by improving the products and services which will be
analysed by different customer base from different market segments effectively.
Change in Technology
Technology is the one of the key factors which has helped business to grow and globalise
effectively. With the help of digital technology and internet platform it has connected different
markets and customer bases very closely (Bhagra and Sharma, 2018). Allan Reeder is also very
effective in implementing all the digital techno logy which led to increase their sales in UK and
improve their quality of dairy products in the country effectively. Company has implemented
effective management information system which allows evaluating all the market trends and
making effective decision to compete in the market and gain higher market share by expanding
in global markets effectively.
Different Cost Markets
As every country has different external factors which can impact the cost performance of
the business organisation. This also increases the demand of products in developing countries to
increase the sales of business organisation (Keivanpour, Ait Kadi and Mascle, 2017). there are
many factors which has improves the opportunity for Allan Reeder to expand in new markets
which are developing which also has lower cost of operation and products and better
opportunity to establish brand in the market. this improves the potential for company to increase
their sales by investing in marketing and providing better information to make decision
effectively. Company has increases their employment opportunities which in return increases the
economic growth of nation to create better facilities for their citizens effectively.
LO 2
Complexity of Strategic Challenges Faced by Organisations When Operating in a Global
Environment
Increase in globalisation and liberalisation in trade activities it has increased various
challenges which national business organisation faces while becoming international. Increase in
the competition in the global market can impact the survivability of Allan Reeder as company do
not have proper experience of global trade which can impact the business in long term (Lasserre,
2017).
Legal Factors