Strategy in the Global Business Environment
Added on 2020-12-18
23 Pages6704 Words345 Views
Impact and strategic direction(Global BusinessEnvironment)
Table of ContentsINTRODUCTION...........................................................................................................................1LO 1: The key factors which drive globalisation.............................................................................1a) Analysis key factors of cost, market, environment and competition.................................1LO 2: Strategic complexities associated with operating in a global environment...........................3Introduction to the concept of globalisation...........................................................................3Driving factors of globalisation..............................................................................................3Pestle analysis of Cameco......................................................................................................4Complexity of strategic challenge faced by the enterprise.....................................................5Recommendations..................................................................................................................5LO 3: Operating in a global market influences an organisation’s structure, culture and functions6a) Evaluate influence of globalisation on organisational governance & leadership, structure,culture and functions..............................................................................................................6b) Evaluate influence of ethical and sustainable globalisation on organisational functions. .7LO 4: Evaluate the influence of globalisation on organisational decision making and strategy.....9a) Different ways of decision-making that can work effectively in global context...............9b) Determine and articulate various routes in internationalisation of an organisation to adoptand include key barriers........................................................................................................10CONCLUSION..............................................................................................................................13REFERENCES..............................................................................................................................14
INTRODUCTIONStrategic direction consist important role in the business success. In this regard, globalstrategy defined in business terms that assist to take strategic guide in globalisation. Whenbusinesses operate in global scale, it increases client base and their traffic from bottom line (Noe,Hollenbeck and Wright, 2017). Increasing several numbers of customers in a particular companyhas an effective way to develop mos. Present study based on Cameco Corporation which is theworld's largest publicly traded for Uranium and electricity products. Furthermore, the companydetermined successful operations and functions on concentrate at pricing formula based. For gaining insight information of the present study, it can be stated that there are severalkey factors exists that are drive with globalisation such as cost, market, environment andcompetition. Furthermore, it includes complexity of strategic challenges that are faced by theorganisation. Moreover, it considers influences of globalisation on organisational government. Inaddition to this it covers various routes to internationalisation of an organisation which adoptedby the business. LO 1: The key factors which drive globalisationa) Analysis key factors of cost, market, environment and competitionGlobalisation is the process of integration and interaction of people, governments andcompanies. The process aid in increasing transfer, expansion of foreign direct investment, andrising impact of wealth funds. Globalisation has become important in modern era as it supportsacceleration of cross border movements of information, ideas and goods. Further, the process hasbecome essential part of era as it is leading to integration of economic, political and culturalfactors. Also, it is important for millennials as it supports team work and multi-cultural learning. Drivers of GlobalisationCommunication: Inventions in the area of microprocessors and telecommunicationsenabled highly effective computing and communication at a low-cost level. Further, Internetisthe latest technological driver that created global e-business and e-commerce.Transportation: Increasing trade across borders has boosted the mode of transportationwith the motive of minimizing cost and time of transfer.1
Government Intervention: It denotes in changing political factors like liberalizedtrading rules and low tariffs with the motive of allowing FDI. Further, institution of GATT(General Agreement on Tariffs and Trade) 1947 has opening in privatization in Eastern Europe.Migration: The factors is driven by demographic and economic forces which reflectslabourmigration like free migration of labours across the globe.However, monopolistic advantage theory is an approach to international business whichhelps the firm in determining capability to compete with competitors across the globe. Withincreasing globalisation. Implication of theory in Cameco Corporation can assist the firm inderiving monopolistic advantages to operate subsidiaries across international boundaries withprofits in comparison to local business. In accordance with this approach it is important for thefirm to focus on managing superior’s knowledge of foreign market and deriving economies ofscale via vertical and horizontal FDI.In order to determine globalisation in Cameco Corporation, it can be stated that there areseveral benefits in developed countries ascertained with desired level of effectiveness. In thisconsideration, several numbers of factors influence to the business. They are as follows:Cost: Cost is one more element that influence global business in large consideration. Inthis regard, it can be stated that across the different areas process of procuring goods,services and capital determined in several advantages (Kuratko, Hornsby and Hayton,2015). Cost drivers with increasing globalisation denotes opportunity CamecoCorporation for building global scale and high product development cost.New Market: In international market, there are several elements exists that influence tothe business environment in large consideration. With this consideration, it can be statedthat companies of all sizes are establishing several operations in foreign areas (Grant,2016). This new market is a type of expansion provides several advantages whichincrease more opportunities for market growth and diversification towards CamecoCorporation. Environment: Within international areas, there are several functions and operations existthat influence Cameco Corporation and impacted by many factors included in it. In globalareas, the company facing issues and problems such as natural disasters, populationgrowth, pollution, etc. (Annarelli and Nonino, 2016). All these aspects create largeimpact on functions and operations of the organisation. 2
Competition: With respect to remain competitive, global rivals have intensifiedmarketing in each areas of the business environment. In this consideration, sustainableadvantages can be successfully gained to deal in worldwide operations and functions.Hence, Cameco Corporation introduce, upgrade and distribute several products faster(Epstein, 2018). Competition across international boundaries is supported by stronginterdependences across boundaries, two-way trades and actions of FDI. In accordance, with the discussion, it can be said that globalisation has led to wide range ofchange in business and their services. It offers growth and opportunity on large scale where it isimportant for the firm to focus on drivers of globalisation influencing business. LO 2: Strategic complexities associated with operating in a globalenvironment Introduction to the concept of globalisation Globalisation can be defined as the process through which organisations or businessesdevelop international influence or begin to operate on a global scale. It refers to the integration ofmarkets within the international markets in the global economy, resulting to the enhancedinterconnectedness of national economies. Globalisation is the term which is used to describeincreasing social, economic and political interaction. It also considered interrelationship acrossthe political and cultural boundaries. Process of globalisation considered advantages anddisadvantages for social, political and economic development. In Cameco Corporation,globalisation describe way to integrate and interact and make international trade easier. Driving factors of globalisationDigital communication – The internet has dramatically lowered the cost ofcommunicating and transmitting information. Digital communication has stimulatedglobal trade in knowledge product for example, outsourced media content and series,software etc. 3
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