Influences of Globalisation on Organisational Functions

This article evaluates the influences of globalisation on organisational governance, leadership, structure, culture, and functions. It also discusses the influences of ethical and sustainable globalisation on organisational functions.

Global
Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................4
P1 Analysation of key factors of cost, market, environment and competition that drive global
commerce and trade................................................................................................................4
P2 Explain the complexity of strategic challenges face by organisation when operating in a
global environment supported by specific examples..............................................................5
P3 Evaluate the influences of globalisation on organisational governance and leadership,
structure, culture and functions..............................................................................................6
P4 Influences of ethical and sustainable globalisation on organisational functions..............7
P5 various ways decision making can work effectively in a global context..........................8
P6 Determine and articulate the various routes to internationalisation an organisation may
adopt including key barriers...................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Global business environment indicate environment that exist in various countries, as it include
various factors that affect positively or negatively in the company. On the basis of resource use
and capabilities decision making can be influence. There are two type of business environment
are there first one is internal and second one is external environment (Adekola and Sergi, 2016).
The organisation that was selected in this report is RCS Logistic. It is a leading thirty party
contract Logistics Company based in Midland, United Kingdom. It is specialize in providing
transport services and supply chain warehousing in all over the UK, continent Europe and
Ireland. Canalisation of various factors to drive global trade and commerce is done in this report.
And challenges face by the organisation is also explained in detail in the assignment. Influence
of globalisation on organisational structure, leadership, governance, structure, culture and
function ethical globalisation are analyse in this report. Globalisation make influence on
decision making and different smart strategies is evaluated by the company. Various different
ways of decision making can work effectively if correct evaluation is done. Determination of
various routes to globalisation can be done by adopting different key barriers in this assignment.
TASK
P1 Analysation of key factors of cost, market, environment and competition that drive global
commerce and trade.
Key factor that drive global commerce and trade.
Cost: scope, scale and experience effects and exploiting economy in various cost factors
of manufacturing, source of product can be analysed in various locations of the world as it
assume greater importance in determinants of global strategy. The new economic scale or scope
shape strategies of incumbent in industries globally, it create more difficulty to new entrants to
develop an effective threat of competition. The rivalry also increase in the industry to increase
and reflect competition in interdependent regional as well as on national market and the fact
says that fair differentiation creates difficulty to achieve targets in a competitive environment.
Cost related issues face by company in global expansion
export fees and tariffs : If company wants to expand business globally there is need
to fulfil legal requirements and formalities as lower operating cost convert into higher cost
because heavy export fees or tariff increase the product cost which indirectly effects

business negatively because to survive in business products are sold at high cost and every
is not capable to purchase costly product so it reduces sales that reduce revenue of
business.
Market: Steady confluence for customer requirement are aspect to globalisation.
Different location audience raises the demand of same product or services, Opportunities for
scale arise standardized offerings. The needs, preferences and taste will vary for different item
and depends upon various factors like disposable income, cultural variable, degree of
homogeneity of conditions in which product is consumed. This applies to consumer and on
industrial services or product. As RCS logistic is famous logistics providers specialized in
international air, ocean and land freight forwarding, 3PL, supply chain management, trucking
transportation, customer brokerage, distribution and other solutions of logistic (Boshyk, 2016).
Needs of global customer have continued for converge? In various industries, global channel of
distribution are emerge to give satisfaction to rapid increase customer base, by causing
convergence requirement. Due to homogeneous pattern of consumption, global marketing and
branding become important to success globally.
If company expand business globally the main issues which they are facing is large
number of competitors because there are large number of firms who are selling similar products
so to survive in market smart marketing policies and strategies must be framed to attract large
audience and survive in competitive world.
Environment: Due to rise in audience mobility and wealth, rapid information transfer
across borders and revolution of technology accelerate demand continuously for global services
and product. New emerging market is taking advantage from advance communication by leaping
on economic development stage that other slogged in earlier year.
Pollution is the biggest problems as heavily polluted areas make it difficult for companies
to set their business in that particular location of the country.
Competition: Import as well as export affect the sales volume, the competitors’
diversity in terms of national origin (Rowell, 2017). The main players globalized their operations
and develop interdependence between various strategy in relation to competition in different
location of the world. High level of diversity of competition trade and interdependence increase

potential in globalisation. Due to change in the characteristic of industry, competitor will
preserve and respond to competitive advantage.
Due to increasing competition at global level the main problem that are faced by the
organisation is limited availability of resources as there are large number of users but resources
are limited so problems of lack of resources are generally face by company.
P2 Explain the complexity of strategic challenges face by organisation when operating in a
global environment supported by specific examples.
By enforcing all laws global business are working in the market to enhance their
customer reliability and market size. It is to be said that business are offer their goods and
services in different parts of the World in globalisation approach. For instance in order to enter
into new market size of the business can be enhanced in which new customer can be added to
clientele. In RCS logistic skilled and experience employees help the organisation to achieve
business objective in considerable way. Following are challenge that face by company as this
describe as under:
Rules and regulation: Each country has different policies and rules that are made home
grown companies favour. RCS logistic is set up their business operation mainly inside in UK so
due to this company having as getting good support for government also. Now they are interested
to enter into new market it becomes necessary to work as per rules and regulations opf country
in effective manner so that it may not attract law suit. For instance all rules and regulations are
managed by the company as they make focus on transferring goods from one location to another.
With the help of this sustainability can be achieved by the business.
Political risk: Every country has different political environment condition so according
to that conditional rules are framed by the government so as to support companies in that country
(Chasdi, 2017). In RCS Logistic context they work according to formulate rules and policies by
government by understanding global environment and plan for enter into new areas of market.
Political factor affect business range from bureaucracy as government might be raise the rate of
taxes for some companies . The success of the firm is not only depends on the value but the
external factors like government initiative also effects the business most.
Social factor: In businesspersons of different culture and background are group together
and are engaged to achieve objectives of getting long duration sustainability and earn maximum
profit. As different people follow different culture so it creates difficulty for the business to

establish good communication with them as it have different share values. operation activity is
design in such a way that it will fulfil all their social perspective regarding stakeholders is the
major implication of this factor. As RCS logistic provide job to local people so as to render good
carrier opportunities and enhance goodwill with in market place. Furthermore in the present
scenario free trade policies are promoted by business in order to raise deep concern for business.
With global instability negative perceptions are provided by global conditions that generate
negative implication on various social trends and in this way they respond business changes.
Prevention of Child labour is the biggest issue that face by business at the time of global
expansion because in many countries strict laws are made for it . As less amount is paid to child
so the restrictions effects business negatively because now adult workers are appointed who
charge high amount of wages as compare to childs.
Monopoly market: According to the present conditions situations are complicated in
nature in which each business operates to stand in the top market position. In the context of RCS
Logistic huge commitment are received by them from their customers. As various programs are
execute by them to tackle market situation. For exam all the decisions are taken by RCS Logistic
in favour of their audience so that their requirement can be fulfil by getting top position in the
market area. In this respect flexible policies as well as rules are need to be frame by RCS ltd to
achieve positive implication in dealing with change when the market is explored by them. RCS
Logistic supply chain management is making focus on international trade laws and regulations in
order to provide great benefit for company.
Monopolies raise products prices is expand globally that make negative impact on market
because if cost of items is high that it attracts less customers because every person not afford
high cost.
P3 Evaluate the influences of globalisation on organisational governance and leadership,
structure, culture and functions.
Globalisation as well as corporate administration differentiates strategies or rules in many
manners. By using the principles regular task are perform in most effective way and new market
endeavours can easily be achieve.
Leadership: Globalisation also affect leadership in this aspect business is controlled and
managed by superiors. In respective of RCS logistic leadership style is suitable to understand the
requirement of audience in which items can be placed in global market so it can be treat as

market representative (Cherunilam, 2016). Trend of market leadership style is different in each
and every country so if business is globalised than leadership style is need to be modified by
RCS logistic so it get high success market in global market. For better control over the business
style of leadership become effective. It is to be notice that every country has different leadership
style and it provides both negative as well as positive impact to the business. As per positive
aspect it is to be concluding that high experts can be provided to business on the other hand it
negatively impacts the business by establishing controlling measures.
To run business at global level organisation must adopt transformational and
situational style of leadership .
Culture: In business, work culture plays an important role so it is necessary by them to
operate and functions in accordance with culture. In the context RCS logistic work according to
their work culture to attain whole benefits of organisation. This give positive impact on
efficiency and productivity of the business as transformational style of leadership is adopted by
the company (Perry-Kessaris, 2016). On the other hand major aim of the company is to serve
their customer as per geographical area due to this high sustainability is received by them as
management of the company perform the activity as per their needs as well as demands of
society and work culture. For example UK and India is different culture from each other as with
the help of cultural diversity high productivity can be introduced on the other hand it may also
create high conflict. In context of Indian business environment, it is concluded that they use to
involve all top level executives while making the decisions. On the other hand, American
companies use autocracy.
Cultural adaption in the manner you do business is essential for organisation operate
business in foreign market. To expand business overseas , flexible culture is followed by
company.
Governance: with administration and effective governance business objective have
steadiness to get long term benefit of the business. Governance is defined as rules of the business
that is create by management and followed by every person at the work place. In context of RCS
logistic major governance is to inculcate the need of the customer and then satisfy from business
offering by keeping in mind all social implications and harm of environment. For example RCS

Logistic plans to take entry into the new market by following all the morals and rules provided
by the society.
Functions: The main requirement of the business is to complete business related
activities within time. As per RCS logistic context are performing activities related to business
operation to get great position at global market. It also ensures that all transactions are
performing by giving attention on relevant laws and legislations.
P4 Influences of ethical and sustainable globalisation on organisational functions
Ethical globalism is characterized as a mechanism through which information, technologies,
data, resources and other important items get transferred in ethical way from one organization to
other (Hamilton and Webster, 2018). That's also primarily a broad concept wherein evaluation of
key parties including society, owners, government; customer, suppliers , employees etc are
pursued with and seek to involve each of them in organization decision - making processes to
drive further efficient development. Sustainable globalism is described as a market practise
through boundary by which organisation can guarantee its long term viability in strategic edge. It
encourage company to achieve their productivity, in this phase organization undertake numerous
modifications in their organizational structure as per as per business development requirements
that is required for them all to thrive. Although in order to do business at foreign market sector
there's many range of obstacles due to regulatory necessity as well as directness which can be
met by company alongside fierce competition. Ethical and sustainable globalism, productive
operations, the brand profile, shares and sales, have a huge effect on business operations. In
order for the organization to have a positive effect, those actions that are described below are
therefore necessary:
Human resource: The Company is thereby expected to choose and position skilled and future
employees in an organization. The HR department has the utmost obligation to have a healthy
workplace wherein professional and qualified workers will achieve their objectives. With respect
to the logistics of RCS, it is a crucial duty of HR to determine the regulatory effect on corporate
transactions and to carry out all the legal acts of the nation in which it plans to grow (Keegan,
2017). Together with this legal department, it is important to recognize and better meet the

diversity needs of workers through various practices to ensure effective growth and to execute
their roles in an ethical and welcoming way by allowing employee involvement.
Marketing: This is one of the most important, but very complicated and crucial roles of a
corporation that allows individuals to control and keep them informed of the corporate bid. In
this business, the target customers are identified and their real desires and demand analyzed to
provide them with the highest degree of satisfaction. In connation with this RCS, some policies
are necessary in the initial phase to draw large numbers of customers to achieve full share on the
global market. In this marketing team RCS is responsible for designing and introducing a series
of advertising activities focused on foreign culture and adapting them to customers ' tastes in
order to achieve the greatest success.
As per the assessment, it was assessed that the enterprise is influenced by a broad variety of
elements. This agency has to be managed in a structured way by the human resources,
communications and other teams in order to ensure that day operations are carried out ethically
and sustainable by changing and implementing innovative methods and actions for achieving its
objectives.
Ethical issues that every business face if expand at international level is corruption. As
due to corruption large part of income is paid as bribary that increase the chances of money
laundering also.
P5 various ways decision making can work effectively in a global context
Management staff' decision-making plays a crucial role in any enterprise as it makes an
appropriate contribution to the execution of activities (Kirton and Trebilcock, 2017). It is
considered as a process for determining the most efficient choices for carrying out operations.
Therefore, decision-making by analysing variables such as industry dynamics, future needs and
other activities is critical for upper management. In particular, it is determined to enable the
organisation to increase its efficiency level and profitability by successfully implementing both
processes and operations. RCS logistic is responsible for making decisions and determining all
considerations accurately by the higher authority or upper management. It allows enterprise to
accomplish the desired targets within a certain amount of time.
Steps for improving decision making-
There are numerous steps that can be taken to enhance decision-making and the first is the
clarification of priorities and expectations for all employees of the organisation. The second step

is to make decisions and adapt them to a variety of incidents so that they can be successfully
overcome. In addition, an accurate review of actions made by management would enhance
decision-making (Kotabe and Helsen, 2020). when company integrate at global level the smart
leadership style helps in emerging market and also increase international revenues.
P6 Determine and articulate the various routes to internationalisation an organisation may adopt
including key barriers.
International and globalisation are the major aspects that denote extension product and services
of business across national boundaries of company. It also reflects that business is promoting its
activity globally and also expands the size of the business. This helps organisation of being a part
in giving contribution to GDP of the country (Lasserre, 2017). In globalisation method
international and global companies are interconnected with each other and it shows efficient as
well as effective management of all the work as per administrative perspective. And help
company to expand audience base and offering to clients globally.
Joint venture: With contractual agreement contractual relationship formed between two
parties in Joint venture. The main reason to formulate joint venture is to enter into an agreement
between parties to share their resources, process, and technology and share capital with each
other and develop and offer to customer which is for both parties. In context of RCS logistic it
enters into a joint venture with some party and develop cost effective product.
Franchising: On the idea of advertising it works that tends to business growth and
expands business globally. In this there is great understanding and agreement between franchisee
and franchiser as relates to business activity. It is a type of permission that is given by franchiser
to use its name as well as space , and give product to audience and in return agreed sum of return
is provide to franchiser on continuous basis (Lee, 2017). In RCS Logistic context they try to
evaluate different brands by offering franchisee as if name & space is use by them in foreign
country that it can increase their revenue and audience base.
Permitting: It is a process in which right and approval is provided to a business to
perform defined set of activities and to sell product and offer in the concerned market of outside
their national boundaries. With complete business right a company can start business in outside
the nation. By offering their items in the market the organisation works remotely across the globe
by providing their item in the market (Peng, 2016). It regulates and controls the competition in

the market since permitting is type of approval process, which is processed by government
authorities.
Barriers in
Joint venture While governments use tariffs to interact
strategically with other governments and
foreign firms, joint ventures need to manage
the co-integration of markets.
Franchising In case of franchising, it is seen that there
should be good bond shared among the
franchiser and franchisee.
Permitting There is need to permit different laws and
regulations which are required for completing
the business operations.
CONCLUSION
From the deep study of report it is to be concluding that an essentials role is played by
business environment with global expansion of business. Business management and smart
managers formulate the business effectively. And made strategies related to objectives so as to
develop path and motivate people to achieve all the goals of the business As with the help of
proper business structure business target can be handle in such a way so that it can achieve in
less span of time by expand business globally.

REFERENCES
Books and Journals
Adekola, A. and Sergi, B. S., 2016. Global business management: A cross-cultural perspective.
Routledge.
Boshyk, Y. ed., 2016. Business driven action learning: Global best practices. Springer.
Chasdi, R. J., 2017. Corporate Security Crossroads: Responding To Terrorism, Cyberthreats,
and Other Hazards in the Global Business Environment. ABC-CLIO.
Cherunilam, F., 2016. Business environment. Himalaya Publishing House.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Hillary, R. ed., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Kaynak, E. and Lee, K. H. eds., 2018. Global Business: Asia-Pacific Dimensions (Vol. 14).
Routledge.
Keegan, W. J., 2017. Global marketing management. Pearson India.
Kirton, J. J. and Trebilcock, M. J., 2017. Hard choices, soft law: Voluntary standards in global
trade, environment and social governance. Routledge.
Kotabe, M. M. and Helsen, K., 2020. Global marketing management. John Wiley & Sons.
Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
Lee, I. ed., 2017. The Internet of Things in the Modern Business Environment. IGI Global.
Peng, M. W., 2016. Global business. Cengage learning.
Perry-Kessaris, A., 2016. Global Business, Local Law: the Indian legal system as a communal
resource in foreign investment relations. Routledge.
Rowell, A., 2017. Green backlash: Global subversion of the environment movement. Routledge.