Influences of 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