Impact and Strategic Direction

This report discusses the key factors that drive global commerce and trade, the complexities faced by organizations in the global environment, and the influence of globalization on governance, leadership, structure, culture, and functions. It also explores different ways of decision making in a global context and various routes to internationalization. The report is based on CAMECO, a fast-growing energy and chemical company, and provides recommendations to overcome the challenges of global expansion.

IMPACT AND
STRATEGIC
DIRECTION

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key factors that drives global commerce and trade...............................................................1
TASK 2............................................................................................................................................3
P2 Complexities faced by organisation at global environment...................................................3
TASK 3............................................................................................................................................5
P3 Influence of globalisation on governance, leadership, structure, culture and functions........5
P4 Influences of ethical and........................................................................................................7
sustainable globalisation on organisational functions................................................................7
TASK 4............................................................................................................................................8
P5 Different ways of decision making in global context............................................................8
P6 Various routes to internationalisation CAMECO can adopt with its barriers.......................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Strategic refers to course of action which helps to achieve goals and objectives an
organisation. There is requirement of different strategies through which organisation can achieve
aims and objectives in effective and efficient manner. There are changes taking place in external
business environment, so it is important and significant to analyse these factors which is
significant to make changes in business operations (Al Shobaki and et. al., 2017). In order to gain
god brand image in industry, it is important to consider external forces which affects business
operations. This report is based on CAMECO which is fast growing energy and chemical
company. This organisation wants to expand in different parts of country. In this report, there is
discussion about factors which drive globalisation, complexities associated with operating at
international level, influence of structure, culture and functions on global market and influence
of globalisation on decision making and strategy.
TASK 1
P1 Key factors that drives global commerce and trade
Concept of globalisation
Globalisation describe as the process of intensification of social ,political and economic,
cultural relations across international boundaries. Cultural globalisation describe as the
transformation of new ideas, meaning and values in a way to extend social relation. Political
globalisation define growth of political system in term of size and complexity. This system
includes national government, their governmental and intergovernmental organization. Social its
leads effective interaction among the various kind of population. Economic globalisation define
as growing scale of cross border trade of commodities and services. CAMECO is a fast growing
energy and chemical company based in South Africa. This company has also expanded into
Canada, Gabon and Australia they hope to expand it in other countries (Bititci, Cocca and Ates,
2016).
Factors that drive globalisation:
International economic integration, foreign direct investment, international business and
trade are the factors that drive globalisation. There are main four areas which drivers of
globalisation are cost , market , environment and competition.
Cost:
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In the area of cost CAMECO is able to gain new economics of scale by selling it at
higher quantities. In this foreign direct investment help in increasing interdependence among the
countries and organisation. In a common term its the monetary value of goods and services that
producer and consumer purchase at international level. CAMECO cost of supply is influenced by
its mix of produced min material and purchase. Product which is purchase also affect the cost of
CAMECO.
Market:
Globalization basically define as a economic integration activity but its influences many
other factor one of them are market. At international level a market is the place where production
are purchase,sold and the market for raw materials. CAMECO should adjust their product and
services to meet the markets changing needs. This organization should target new market which
can replace current one market. CAMECO should apply or implement different policies to make
its business successful (Elbanna, Andrews and Pollanen, 2016).
Environment:
International trade allow CAMECO to expand and explore its new market. At
globalisation level there is many environment factors that affect business such as legal
practices,social structure and technology.
Competition:
At internation level it is define as the number of competition CAMECO face , relative
size of competitors and interdependence within the industry. CAMECO should be ready to face
competitive environment which is very different from the one that have been facing . At present
time all companies face competition from all over the world.
Impact of digital technology upon globalization :
Digital technology play a important role, it is one of the main forces of driving
globalisation. It reduces the cost of transportation and easy communication across the world.
Impact of digital revaluation is to create better product and services at lower price , impact of
social media and other application (Helfat and Martin, 2015). Connecting the global community
design ,manufacture and distribution system to making product and services available at global
level, all this are given below:
 When CAMECO show its product on social and online its create awareness in the mind
of customer. Its create easiness to sale the product which reduces cost of company.
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Through digital technology CAMECO cover the large area for distribution which make
product and services available.
 Through digital technology companies product are available on all sites at global level so
customer can easily purchase. This help in cover the large area of market which is
profitable for the organisation.
TASK 2
P2 Complexities faced by organisation at global environment
The manager of the CAMECO company is thinking to trade in the global market. But
there are several challenges that are required to face to enter in the international market. The
impact of globalisation is not limited to the economy. It also affects many factors such as
political, economical, social as well as technological (Kirchoff, Tate and Mollenkopf, 2016). The
key factors that has a strong impact while operating the organisation globally are -
 Political factor – The intervention of government plays an important role in the
economy. The political factors includes government policies, tax and foreign trade
policies, environmental law etc. As the firm deals with chemical solutions, its the
responsibility of manager of CAMECO to adjust their marketing policy according to the
recent as well as the future norms. This will help the firm to compete globally.
 Economical factors – Inflation, economic growth, exchange and interest rates etc. are
some of the economic factors that will have a strong impact on the association. As
CAMECO wants to globalise its business, it must analyse the export import policies
properly. For instance, if the firm imports raw material required for their chemical
solution from another country, it should be aware of the tax rates, the country apply on
import. If the rate is high than the initial cost of the product gets affected, which will be a
loss to the company (Noble and Nwanekezie, 2017).
 Social factors – Culture, taste, religion of one person differ from another. The manager
of CAMECO should understand the attitude and belief of the customers, as it has a direct
effect on the market. Globalisation helps the company in increasing the life of the
existing product as the market and customers are new for the organisation. More the sales
of the existing product more will be the profitability of the firm. For example, company
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can contribute to the green house effect to minimise the waste, which will reduce the cost
of the production with increase in profit.
 Technological factors – In the modern world, the future of every business is shaped by
the technology. Technology helps in innovation and advancement. CAMECO should
decrease the use of human labour with an increase in the use of machines which will lead
to higher production in less time and cost. This will help the company to face competition
and make a competitive advantage in the international market (Olanipekun and et. al.,
2015).
Challenges of globalisation:
CAMECO face many challenges at global level.
 Cultural differences: This difference face by the CAMECO in which company
and customer will separated by thousand miles it create the cultural and regional
differences.
 Job security and lack of security :It allowed CAMECO to assign job to the
population who is away from their physical location . Resulting in location
population loosing their jobs.
Strategic challenges of globalisation:
 Challenge of complexities in the international supply chain, challenge of
controlling the cost. In CAMECO it is about operating cost which is in pressure
by rising fuel cost. Challenge of maintaining good relation with supplier for the
better performance.
 Global strategic complexities is define as the dominance of regional over the
global. If CAMECO wishes to go get world wide customer acceptance than it
must be balance (Slack and Brandon-Jones, 2018).
Recommendations to overcome this challenges:
1. It is recommend ate that CAMECO should communicate about all the decision.
Employee must know about the strategies so they can understand goals of
organization and overcome the complexity.
2. CAMECO should conduct the training session for employee for achieving
comfort level with new strategic procedure. This can be helpful in understanding
strategic challenges.
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TASK 3
P3 Influence of globalisation on governance, leadership, structure, culture and functions
At global level, there is difference in working style of employees. Hence there is
requirement of proper leadership, governance through which employees gets an direction to
conduct business operations. There is different policies which has to be considered by managers
of CAMECO to get positive outcome (Al Shobaki and et. al., 2017). With proper leadership,
structure, culture positive outcome can be achieved. At international level, with proper
governance it is easy to make changes in operations which is relevant for conducting operations
according to change in culture, values of consumers.
At international level, managers of CAMECO has to guide employee for achieving set
targets and goals. While operating business operations in different countries, GOVERNANCE
plays crucial role. It is important and significant to make changes which in operations. Hence at
global level, proper governance helps to get positive outcome in the form of good relations with
workers and motivate them to work at international level. With proper governance, it is easy to
communicate with workers and understand their views about globalisation.
There is impact on ORGANISATIONAL STRUCTURE of CAMECO in the form of
proper division of work among departments. There is proper structure of whole organisation
while operating at international level. With the help of McKinsey 7S model impact of
globalisation on organisational structure can be understood. Managers of McKinsey 7S model
has to look their structure while working in different countries.
Strategy is the platform which help to frame plans and policies which are important for creating
awareness among employees how to operate at international level. This also helps to maintain
good brand image and achieve competitive advantage in industry (Bititci, Cocca. and Ates,
2016).
Structure of CAMECO helps to maintain proper working style within organisation.
Organisational chart must be clear and visible so business activities are performed in proper and
relevant manner.
System refers to the process with which daily activities of organisation can be maintained. There
is requirement of proper decision making and mange organisational change.
Skills are core competencies among workers. At global level, managers of CAMECO has to
distribute resources through which they can conduct operations in best and reliable manner.
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Staff refers to number of employees who are working in organisation. Managers of CAMECO
has to motivate employees through which they can motivate, train, recruit workforce to get
positive outcome.
Style is the way through which working style of CAMECO gives positive outcome. In other
words, leadership and management style changes at international level. There is requirement of
proper leadership among workers which helps them to outshine at international level.
Shared values are the values, norms which CAMECO has clear core values which maintains
code of conduct in ethical manner. This helps to outshine at global level by conducting
operations in appropriate manner.
CULTURE of country is important because of change in values, structure of country. It is
important and relevant to understand culture of various countries in which managers of
CAMECO are thinking to launch (Elbanna, Andrews and Pollanen, 2016). For instance: there is
requirement of high voltage electricity as per demand in country, so it must be considered by
managers of CAMECO. In order to understand influence of globalisation on culture, Hosftede
dimensional cultural model has to be discussed-
Power Distance Index refers to distribution of power among employees. In case country has
culture of high power distance index, then there is difference in power among employees. While
if country has low power distance index, then in this case organisation has flat culture within
organisation. In this case it has participative leadership, hence managers of CAMECO has to
analyse power distribution then distribute power among workers.
Collectivism vs. Individualism refers to change in working in team or at individual level. In case
of individualism, employees focus on “I”, while in case of collectivism, preference is given to
team work. For instance: in Great Britain there is culture id working collectively, so in case of
expansion there mangers has to prefer team work.
Uncertainty Avoidance Index Refers to uncertainty in environment. This is the concept under
which unknown situation or events are analysed. There are some countries such as Canada where
people are not ready to take risk, while in this case US people are ready to take risk. This must be
kept in mind by managers of CAMECO while they are operating at global level (Helfat and
Martin, 2015).
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Femininity vs. Masculinity refers to gender difference. There are some countries in which there
is equal rights to male and female. Hence while operating at international level, managers of
CAMECO has to consider this factor to conduct change in operations.
Short-Term vs. Long-Term Orientation considers the extent to society with considering time
horizon. Long term sustainability refers to long term growth in industry. While short term targets
works for getting short term objectives.
While operating at international level, there is influence of globalisation on
LEADERSHIP AND FUNCTIONS. There is requirement of proper guidance to workers
through which they can communicate with workers in order to get success in market. At
international level, there is requirement of various leadership approaches to make employees
aware about roles and responsibilities (Kirchoff, Tate and Mollenkopf, 2016). There is
requirement of proper functioning of departments at international level, so there is no delay in
supplying fuel and electricity of society. Hence with globalisation of CAMECO, there is
requirement of more leadership which helps to get good image at international market. Hence it
is clear that due to globalisation of business, there is proper leadership and distribution of
functions which helps to conduct operations properly and in appropriate manner.
P4 Influences of ethical and
sustainable globalisation on organisational functions
At international level, there is more scope of working within organisation. There is
difference in plans and policies as compared to domestic market. There is more scope of
working, competition, consumers, etc. so it is important to consider policies of international
market which makes business operations in effective and relevant manner. In case business
operations of CAMECO are not done in ethical and sustainable manner, then there is negative
impact on growth of organisation in international market. Some ethical factors which has to be
considered by CAMECO while operating at international level are discussed as under-
“No” to harassment and discrimination- There must not be harassment at workplace.
There must not be discrimination among workers on the basis of gender, income, caste, etc. At
international level, there is requirement of numerous workers, hence when organisational
environment is free from discrimination and harassment, then this helps to maintain long term
relations with workers. With maintaining good environment within CAMECO, personnel
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working in various departments does not hesitate to communicate with each other (Noble and
Nwanekezie, 2017).
Diversity and respectful workplace- As at international level, there is requirement of
workers to conduct operations in effective and relevant manner. It is important to frame policies
through which respectful environment can be maintained within organisation. This helps to get
success because workers are satisfied with CAMECO. When employees from different
geographical region are working in department, this helps to maintain respect to others which
helps to maintain good environment and culture within CAMECO.
With ethical and sustainable globalisation of CAMECO, departmental heads are aware
about code of conduct and ethics of organisation. Managers motivate workers to work in ethical
reliable manner. With working in ethical manner at international market, consumer satisfaction
can be achieved. At international level, there is important role of government parties, when
CAMECO is working in reliable manner, then there is less possibilities of political interference
which helps to improve brand image in industry.
TASK 4
P5 Different ways of decision making in global context
There is discussion about some factors which has to considered by managers of
CAMECO while they are operating at international level because they affects decision making
policies. While considering diversity facto, mangers of CAMECO has to different in cultural
values of employees and make strategies to respect them. While recruiting workers, they must be
aware about equality among employees. This helps them to maintain code or conduct which
helps to operate in sustainable manner at global level (Olanipekun and et. al., 2015).
Process of internationalisation refers to performing business activities in more than one
country. This is the way through which integration of political parties, consumers, suppliers
possible in more than one country. International expansion strategies includes export, licensing,
franchise, joint ventures, etc. This helps to perform, business operations in effective and relevant
manner and maintain good brand image in industry. There are different risk associated with these
modes, so managers of CAMECO has to conduct each aspect. For instance: in case of export,
there is risk off more cost and there is no control of core company in foreign countries. Hence
managers of CAMECO has to consider it while framing strategies for expansion.
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There are different barriers which managers of CAMECO face in expansion of business
at international level. These barriers also affects decision making of managers in expanding
business at international level. There are different barriers such as governmental or legal barrier,
financial barrier, informational barrier, etc.
For instance: there are more legal rules and regulations in UK, then in this case, managers
of CAMECO can change their decision to expand in this market. In case of more legal
responsibilities, there are possibilities that this is time and cost consuming process. Hence this
affects decisions of mangers in expanding at international market.
There is difference in marketing activities of products and services as per change in
geographical region. For instance: there is more competition in Australia, so managers of
CAMECO has to consider marketing strategies (Slack and Brandon-Jones, 2018). Hence this
affects decision making regarding marketing activities and strategies of CAMECO in order to
expand at international level.
In Canada, there is high transportation and shipping cost for mines and electricity, hence
this affects decision regarding channel of distribution.
P6 Various routes to internationalisation CAMECO can adopt with its barriers
Routes of internationalisation:
This is define as the entry mode of an organization in the market. International market are
the channel which in which an organization gain entry to international market. here is
considering various modes of entry into international market such as direct export, indirect
export and franchising.
Direct export :
This is define as the most basic mode of exporting made by the CAMECO. If this
company use direct export than they have advantage that: In this there not a single
intermediaries is pre3sent. This is best at the time when volumes are small . It is a better
protection of trademark ,patent, goodwill and any other intangible property. Disadvantage of this
are: when it come in direct exporting is it require higher investment of time and also require
personnel and organizational changes (Taks, Chalip and Green, 2015). This is not good at high
volume.
Indirect export:
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In this exporters has no control on its product in the market. If CAMECO use indirect
export than they have advantages which is: There is low risk present for who consider domestic
market and also low risk for the company who still developed. There is no direct handler of
export processes. They provide fast market access which is the great part. Disadvantage of this:
they have no control on on sales. Distribution and marketing as opposed to direct marketing .
Franchising:
When one party allowed other party to use its trade name as well as certain business to
produce good and services are known as franchising. If CAMECO use this approach then
advantage of using franchise is that: They have low political risk and low cost. This allowed
continuous expansion into different regions of the world (Al Shobaki and et. al., 2017).
Disadvantage of franchising is : They maintain control over franchise it may be difficult and Its
included legal disputes. In this there is a disadvantage of franchisees that they acquired
knowledge from the organisation and become competitors in the future . It required ongoing
assistance for evaluating and monitoring the performance .
Conclusion:
from above routes of internationalisation it defined that direct export is effective for
CAMECO. This is much effective for this company because it treating and filling overseas order
like domestic orders . In CAMECO Direct export have control on selection of foreign market
and also foreign representative companies. If this organisation use this route for than its create a
great sale and greater profit for CAMECO.
CONCLUSION
From the above discussion, it is clear that cost, market, competition, etc. are the factors
which affects globalisation of business operations. With the help of PEST analysis, it is easy to
understand external environment factors. Lack of knowledge about culture is issue which face by
organisation at global level. With the help of McKinsey's 7 S model helps to understand change
in structure, style, staff, etc. at international level. With Hofstede's Dimensional model managers
are able to understand culture of geographical region and then plan operations related to it.
Policies has to be framed for diversified and respectful workplace by managers helps to work in
ethical manner at global level.
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