Global Business Environment

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1: Key factors which drive global commerce and trade...........................................................1
TASK 2............................................................................................................................................3
P2: Complexity of strategic challenges faced by company in global market.............................3
TASK 3............................................................................................................................................4
P3: Evaluate the influence of globalisation on organisation.......................................................4
P4: Influences of ethical and sustainable globalisation on organisational functions..................5
TASK 2............................................................................................................................................7
P5 Different ways of decision making work effectively at globalised level...............................7
P6 Various routes to internationalisation with key barriers........................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
There are large number of fast growing manufacturing small and medium sized
organisations in the United Kingdom which look further in order to expand their area of business
operations in different countries and cities as well. Generally, the firms conduct research and
formulate plans and strategies before thinking of expanding their business to different places as
different places have different cultures and norms which need to be understood by an
organisation if they want to achieve growth and success in new areas. Every country has their
own government protocols due to which company may find difficulties in setting up their new
branch. Rowlinson Knitwear, a UK company which deals in providing wide variety of clothing
products to people of UK. The project covers the factors such as cost, market and environment
which requires to adopt an effective strategy to face challenges in global environment. There are
various routes and ways for making business internationalisation (Ferraro and Briody, 2017).
TASK 1
P1. Key factors which drive global commerce and trade
Global business environment need to be considered while formulating strategy and
decisions so that business activities can be done in an effective and efficient manner. There are
several factors which direct the global trade and commerce in different ways and thus, they also
affect efficiency of company in better working too. Global business environment will provide
influence to company either in a direct or indirect way. For this, they will prepare some policies
as well as strategies. Such key factors are as follows:
COST: It refers to the value of money which is used in producing something in good
quality which attracts lots of customers to buy their products. In Rowlinson Knitwear, It involves
the cost which is incurred in production, research and marketing, etc. through which customers
pay attention towards company's products and services (De Jonge, 2011).
Direct cost: This refers to those costs that remain unchanged with the production of
products and services. Example of such cost includes factory rent, rent, insurance charges, etc.
Thus, the manager needs to control such cost in order to provide positive results to company.
Indirect cost: It refers to the expenses which are incurred to support the sales figure of
company's product through investing amount in advertising, maintenance and supervision, etc.

which help in making products more successful in the market. Such cost can be easily recovered
as incurring cost will indirectly bring positive outcomes to company.
Rowlinson Knitwear, a UK company which wants to expand its business to Africa, Asia
and North America. It requires huge investment due to which the company need to raise funds
from various sources such as financial institutions, banks, venture capital etc. The management
also required to reduce cost of operation due to which the company can able to offer products
and services to the people at an affordable prices. Through this, the company can easily attract
lots of customers from new countries.
MARKET
Market refers to the place where the buyers and sellers of a specific product or service
interact with each other in order to facilitate an exchange. There are different types of markets
where people come together to exchange the goods and services either physically or online.
Labour market: This is the market in which the people who can work with a motive of
earning income in order to enhance their standard of living. In Rowlinson Knitwear, it is related
with employment opportunities available in market so as to improve livelihood of people in the
UK.
Market for Raw materials: It refers to the materials which are used in production process
in order to produce quality products without wasting any material. Such materials are available
in market at reasonable prices which need to be acquired by company with a motive of
converting into finished goods for the purpose of sale in market (Colfax, Rivera and Perez,
2010).
Rowlinson Knitwear decide to expand its business to different countries therefore to run
business in new areas in more successful manner the management need to find out the locations
where they can easily get skilled and knowledgeable employees at low labour cost. They also
required to prefer such market where they can easily get raw material used in manufacturing
clothing products at reasonable prices which help in increasing their profit and revenue.
In Rowlinson Knitwear, the management of this company can expand its business with
the help of cost, resources and market so that it can provide its services to its potential customers
and fulfil their needs and demands.
ENVIRONMENT