Influences of Globalisation on Organisation Structure, Culture, Governance, Functions and Leadership

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1 Analysis of key factors of cost, market, environment and competition that drive global
commerce and trade....................................................................................................................3
LO2..................................................................................................................................................4
P2 Evaluation of complexity of strategic challenges that are faced by organisations in global
environment................................................................................................................................4
LO3..................................................................................................................................................6
P3 Evaluation of influences of globalisation on organisation structure, culture, governance,
functions and leadership..............................................................................................................6
P4 Evalution of ethical and sustainable governance on organisation functions.........................7
LO4..................................................................................................................................................8
P5 Different ways decision-making can work effectively in global environment......................8
P6 Various routes to internationalisation and its key barriers.....................................................9
CONCLUSION..............................................................................................................................10

INTRODUCTION
Global business environment have a major impact or infleunce on company growth and
operations as different countries have different environmental conditions, capabilities and resources.
Internal and external are two parts of global business environment so companies in order to sustain
its business for longer time frame needs to adapt to social-economic culture of different countries.
Globalisation and innovation in technologies have lead to better inter- connection between countries
and more trade of goods and services across worldwide in order to earn more profitability. This
report is about Ray C Smith that is family-onwed business established in 1973 providing
transportation and warehouse solutions. It have discussed about key factors of cost, market and
environment drive global commerce and trade. The report has covered some more points such as
strategic challenges faced by organisations, influences of globalisation on structure, culture,
governance and functions. At last it has provided information related to different routes to
internationalisation, associated or key barriers and several recommendations to overcome them.
LO1
P1 Analysis of key factors of cost, market, environment and competition that drive global
commerce and trade
Global commerce and trade refers to exchange or import and export of good and services
between countries or international boundaries. Factors of cost, market, environment and
competition that drives global trade and commerces are discussed below:
Cost: Company in order to manufacture or delivery products and services to end customer’s have
to incurred several cost. Key factors that influence cost are labour, cost of capital, raw material, land
and transportation that need to be considered by business in order to grow and sustain it for longer
time frame. Like RayC smith cost of production fluctuate as per availability or recent price of
resources, labour and transportation cost that is incurred to delivered right product to right
individual (Hopkinson and et.al., 2018). Thus, it can be stated that company by making best
utilisation of resources is able to reduce cost thereby export its services to various countries and
enhance its overall profitability. For example: Ray C Smith has makes use of low cost strategies by
hiring labour at lower wages, making optimum utilisation of resources in order to expand its
business operation thus contributed in driving global trade.
Market: There are numerous changes in external market or in which business operates its several
function so company needs to cope up with them in order to retained its competitive advantages.

Key factors of market that drive global commerce and trade are inflation rates, government policies,
taste and preferences of customer’s or changes in digital technologies. Ray C smith management
has considered all such market factors like recent innovation, customer’s preferences and
government policies that have contributed in expansion and growth of enterprise across worldwide.
Free trade policies have provided opportunities to Ray C smith to easily expand its business
operation across worldwide or enhance its overall sales volume. Increase more demand in
international market has also drive company to globally trade in order to enjoy high profitability.
Environment: Business operates its function in external environment that keeps on changing as per
situations and circumstances so companies to meet customer’s expectancy needs to modify itself or
changes its operations. Such as most of the people have became more concerned about thier health
and safety due to increasing number of diseases. At the same time they are moving towards
sustainable management of resources or preferring companies that provide products or services
without minimum harm to environment (Kasemsap, 2016). Ray C smith while operating its function
in losgictics has ensured that it makes best utilisation of resources so that maximum value can be
delivered to end customers. So, available of resources or environmental conditions have contributed
in expansion of global commerce and trade. Company through taking steps towards sustainable
management and practices can adapt to global environment and expand its business operation.
Competitive advantages: Companies in order to gain competitive advantages or increase its
profitability, plan several strategies such as ensure quality of products, or find innovative method
that can be used to delivered services to them. Therefore, company like Ray C smith to gain
competitive advantages have always tried to provide unique and qualitative services to several
individuals (Skripak, 2016). Ray C smith by investing capital in research and development
department can find new products or method to deliver services. Strong supply chain or more ware
house can helps company in gaining competitive advantages or quick delivery of services to
customers. Thus, competitive strategy has promoted global commerce and trade as people across
worldwide wants to have services or products of such companies.
So, it can be critically stated from above analysis that every factor have both negative and
positive impact on global business environment.
LO2
P2 Evaluation of complexity of strategic challenges that are faced by organisations in global
environment
It can be stated that global business environment is ever changing or dynamic in nature thus