Impact and Strategic Direction

This document discusses the impact of globalization on strategic direction and explores key factors that drive global business and trade. It also examines the influences of globalization on organizational governance and leadership, structure, culture, and functions. Additionally, it highlights the challenges of globalization and provides recommendations for overcoming them.

Impact and Strategic
Direction

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
a) Key factors that drives global business and trade ..................................................................1
The driving factors of globalisation............................................................................................1
LO 2.................................................................................................................................................2
Introduction of globalisation.......................................................................................................2
Impact of digitalization on globalization: ..................................................................................2
PEST(Political, economical, social and Technological): ...........................................................3
Challenges of globalization: ......................................................................................................4
Recommendations for overcoming the challenges:....................................................................5
LO 3.................................................................................................................................................6
a) Influences of globalisation on organisational governance and leadership, structure, culture
and functions...............................................................................................................................6
b) Influence of ethical and sustainable globalisation on organisational function ......................7
LO 4.................................................................................................................................................8
a) Different ways decision making can work effectively in a global context .........................8
b) Determine and articulate the various routes to internationalisation an organisation may
adopt including key barriers........................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES .............................................................................................................................12
.......................................................................................................................................................12

INTRODUCTION
Strategic direction introduces as a course of action that leads to the attainment of the
objectives of an organisation's strategy. It is one of the most essential forces in an enterprises. It
set up the structure for internal duties that each and every department and employees takes on.
Along with this, vision, mission, tactics, core values and strategies of an organisations plays an
important role in establishment of strategic direction. Apart from this, global business
environment can be explained as the environment in various sovereign countries. It is mainly
classified into two parts which is internal environment and external environment. All these are
directly impact on business and its strategic direction. For this project, Cameco is given largest
publicly traded uranium company. It was founded in 1988 by Neil McMillan, Tim Gitzet and
headquartered in Saskatoon, Saskatchewan, Canada. Company mainly specialise in selling in
uranium, electricity etc. This report divided into different parts which will be cover various
points such as factors of globalisation, strategic complexities etc. Along with this, influence of
global market on organisation's culture, functions and structure will also over in this report. At
last, impact of globalisation on business's decision making and strategy will also include in this
report.
LO 1
a) Key factors that drives global business and trade
The driving factors of globalisation
Cost: Cameco company is dealing in Uranium and deciding to expand in other countries
as well. Cost is the major issue faced by every firm while expansion in global village. It is the
backbone of every industry as it helps in the organization to explore and invent new product.
Before entering in to new country the pricing of the product and countries economic conditions
need to be evaluated. Cost minimization should be as low as possible while trading in the global
market to sustain and remain in the flow. If the economic conditions is stable in that particular
country the chances of growth rate is high and also purchasing power if the customers are high
which leads to more revenue generation.
Market: Uranium industry should study the market and demand in that particular country
so as to find out the targeted customers and market ratio. Evaluation of policies and regulations,
government bodies should be done to reduce entrance obstacles.
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Competition: Chemical industry are given cut throat competition to each other as
resources are less and need to be used effectively and efficiently by the firm (Grant, 2016).
Many of them are using eco friendly ways to sustain in the global market. Cameco grabs the
opportunities to invent new product by using their R&D division which will directly raise
revenue and gets chance to perform better in the global market in which business operations are
exploring.
Environment:Environment consists of both macro and micro factors like social trends,
economic changes, clients, demands etc. expanding firm in new country the existing business
holder should scan the external environment scenario to understand the actual demand and
targeted customers in the global market. The success rate of the Cameco industry totally depends
upon the effectiveness of the environment factors like, economical factor, social factor, political
factor etc.
LO 2
Introduction of globalisation
Globalization is the extended information, technology, products, and jobs across
boundaries and cultures. It is the process of integration among people, government and
companies across the globe. It has expanded due to rapid growth in communication and
transportation technology. This includes services, technology, data, goods, economic services
etc. the growth of global village liberalize the economic activities in exchange of product and
services. In the year 1820 large scale globalization took place in the market. This affect the firms
working scenario by economics, socio cultural resources and natural environment. According to
academic literature globalization is divided into three area which are: Cultural globalization,
political globalization and economic globalization.
Impact of digitalization on globalization:
It plays a vital role in expansion of business at global level. In terms of Cameco, business
is exploring it's operations at international level. So, the impact of digital technology on its
operations are as follows:
Improved communication process: Here Cameco can enhance communication strategies with
the help of 128 bit encryption technology. It will directly help the firm to secure data and store it
at any other platform or can be used at any platforms (Slack and Brandon-Jones, 2018). Thus it
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can be said that fluent communication will help in smooth running of the business in the near
future and leads to effective outcomes.
Securing sensitive information: Company is dealing in Uranium which is nuclear material so,
their formation should be kept confidential from the public. There are certain tools to store this
information like: data classifications,cloud data protection etc. by using such apps or technology
data can be secured and operations can be run-ned smoothly.
The Mckinsey model is used to in the organization so that business can work smoothly in the
market and is able to satisfy customers. There are 7-s framework which are explained as follows:
Strategy: It is will help the Cameco firm to build competitive advantages over the
competition in the global market. Which will lead to capture huge market ratio.
Structure: Effective structure helps the firm to achieve the goals on time as well reduces
employees turn out ratio from the cameco firm.
Systems: Effective regulations helps the Cameco firm to meet the set targets on time as
well as employees are aware about their responsibilities and whom to report.
Shared values: Cameco shares the values with the common goals so, that desired targets
are met on time and employees are satisfied with the firm. It helps to generate productive results.
Style: Better results can be meet by the Cameco industry if the leaders are effective
enough and motivates employees on time to work efficiently.
Staff: Cameco hires effective employees to meet the productive results. Inefficient
employees lead to unproductive results which leads to decrease the value in the eyes of the
customers.
Skills: Cameco firm requires effective and turned skills to meet the set goals on time.
Trained employees help the firm to generate maxim profit.
In Hofstede model there are five cultural dimensions which assign particular country's
beliefs, norms about each of the dimensions. This helps the Cameco organization to better
understand the market which will help in successful growth of the business. Here are some of the
dimensions like, individualism, masculinity, power distance, uncertainty avoidance index and
long term orientation all this helps the business to flourish in the market successfully.
PEST(Political, economical, social and Technological):
Cameco uses PEST tp evaluate all the factors to avoid future risk which can be
determined below:
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Political factor:Political factor includes political terms and conditions, government
norms, foreign policies, philosophy etc. which creates direct impact on the company Cameco.
Example: When Cameco came to India to explore it business at a global level, they were
permitted to set up business because the political conditions was stable at that point of time.
Economical factor: It includes tax rate, inflation rate, economic rate etc. company all
this to reduce the cost and maximum profits can be reduced. Example: When Cameco planned
to globalize the business, they determined low trade obstacles in India by which firm exploited
this opportunity for expansion their customers and raised productivity and maximised profits.
Technological factor:To maximize the profit for long run Cameco company needs to
determine certain modern tools like technology investments, technology bin markets, technology
applications etc. Example: While expanding Cameco in India they implemented proper
communication system at work place as India was having low communication cost and company
garbed that loop holes as opportunity and expanded an organisation empire.
Social factor: To sustain and remain in the compaction Cameco firm need to follow social factor
as well. It helps the business to expand and increase productivity at a large scale. By following
social services like health care, fire services etc. helps to capture market share. Example:
Cameco came to India for growth of business and also followed social norms accordingly
without damaging the environment. They registered the groceries items in the market before
selling them in the market.
Challenges of globalization:
There are distinguished challenges faced by the firm Cameco while trading business
operations at global village or at international platforms. Many times this challenges turn out to
be obstacles for the business due to which company has to deal with amended numbers of
problems in performing smooth functioning. Here are some of the challenges faced by the
Cameco firm while globalising their organisations are discussed below:
 It can be seen that Cameco firm is always trying to invest finance in structure and value
chain which requires huge investments and time as well. This directly creates obstacles
for the organization in adding more areas to their value chain. Every single country has their own rules and regulations designed for uranium and
electricity field which must be followed by the business associates while trading or
globalising the business at a large scale. Cameco company need to follow all the terms
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and conditions designed by the government as it is a harmful element and can cause
damage to the people.
Strategic challenges:
Cameco can face distinguished strategic challenges while trading in global village due to
which trends of customers and customers etc. which indirectly creates negative impact on
business operations. Here are some of the open challenges faced by the firm are as follows:
 The main issue faced by the business associates is the promotional plan or strategies as
the organization need to study the preferences and taste of the customers before steeping
into the new market.
 The other hurdle is to set the prices of the product and to decide accordingly weather the
set prices are favourable or not to the customers in the market.
 Least but not the last issue faced by the firm is exporting uranium product as all the legal
norms or policies need to be followed by the business to sustain or remain in the
competitive world.
Recommendations for overcoming the challenges:
Cameco can defeat the challenges of the globalization by using the recommendations
which are explained as follows:
1. Company cameco need to use the upgraded modern technology in their business
operations to uplift the quality and mass production capacity. By this step firm can
overcome the technological barriers.
2. Before launching the product in any country business associates need to thoroughly their
culture, trends, beliefs, customs etc. to emit the hurdles occurring at the time of
promotion or advertisement.
3. The most common issue faced by each and every company is financial stability. Cameco
firm needs to examine the cost or prices associates with the production processes or other
operations for resolving the issues of finance or funds.
4. Organization need to hire legal technician for understanding the various norms framed by
the countries government for the use of chemical and uranium in order to abide by them.
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LO 3
a) Influences of globalisation on organisational governance and leadership, structure, culture and
functions.
Global leadership: During the past 40 years the global exchange goods and services has
raised from 30% of GDP (Gross Domestic Product) to 60%. It has increased from few global
leaders about the financial sovereignty of countries across the globe. They have raised
interactions across distinguished cultures to hire efficient candidate to help firm succeed in a
global village. Due to which culture has influenced who global leaders hire and how they govern
their business. It has directly impacted political and governments around the globe (Acquaah,
2013). Globalization has affected leadership as they need to motivate employees to perform
better to meet the desired goals. It also pushed for finding new communication strategies which
raised cost of the Cameco firm. As well as creates open challenges to pursue balance of cultures
in the industry for smooth functioning in Uranium sector.
Cultural globalization: Cultural globalization refers to transmission of values, meanings
and idea across the globe in Oder to explore intensify social relations. This involves the
arrangement of shared values or norms and knowledge with which customers join their collective
and individual identities. Cameco is dealing Uranium industry where diversified employees work
to meet the common goal of the firm. Increasing globalization is creating cut throat competition
in the market and due to which firms’ norms and values are on stake in some cases.
Organizational governance: There is empirical relationship between governance and
globalization due to which the countries with higher levels of integration with other world tend
to be better governance results (Voegtlin, Patzer and Scherer, 2012). The concept of
globalization strapping with quality of governance are social and economic integration. This
aggregation is not influenced by the involvement of explanatory variables like: legal origin, GDP
per capita, degree of fractionalization, natural resources, government size etc. Rapid increase in
the globalization has forced to the organizational governance to change their policies to meet the
emerging needs of the customers. Uranium is a chemical industry and the policies, norms etc. are
framed to meet the international demands to sustain in the market.
Organizational structure: Globalisation has changed amended number of
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infrastructures and geographical location of the firm. The reason behind integration and
competitiveness is to change the business structure accordingly (Bharadwaj and et. al., 2013). In
early days’ firm structure was traditional form of communication but the scenario has changed to
modern ways of communication like: social media, direct mail, blogging, instant message etc.
Globalization has created huge impact on the Cameco industry. This firm is the major economic
contributor in terms of salary, local procurements, wages etc. Due to globalization company is
able to generate job opportunities across the globe as well as donating funds in health, education,
culture creation etc. Which helped to build brand image in the eyes of the customers.
Globalization is also affecting the various functions of the organization due to which set goals
are not meet on time and profit maximisation is less.
b) Influence of ethical and sustainable globalisation on organisational function
In current scenario globalisation is a familiar term for every organisation as it refers to an
extension of company beyond national boundaries which enable them to adapt several
opportunities in order to promote its efficiency and increase profitability. Understanding the
importance of ethics in business is the key to success. Customers, management, and employees
appreciate honest and ethical practices. Business ethics are vital because they help maintain a
great reputation, help avoid significant financial and legal issues, and they ultimately benefit
everyone involved. In order to achieve high level of efficiency, CAMECO should focus on
business ethics which enable them to gain competitive advantage and add value to their brand
image. (Bititci, Cocca and Ates, 2016). Some of the influence of ethical and sustainable
globalisation on CAMECO function are as follows:
 Improves decision making: For every successful company they require effective
decisions which improves the morale of employees as well as enrich the productivity of
company. However, an ethical attitude enables the company to take better decisions i.e.
decisions which are in favour of employees, public and also towards organisational long
term goal. Apart from this respect towards ethics force or encourage the company to
include the important aspects like economic, social – culture ethics in decision making
process. By this company can easily capture the market and gain competitive advantage.
 Cultivate strong teamwork: More than an individual performance team work is very
effective and efficient which benefits the company with several innovative ideas or
opinion for achieving their goal (Wamba and et. al., 2015). A better ethical enable the
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firm to develop an effective team and strengthen the morale of employees as they put
their best effort towards the organisational objectives. Apart from this it reduces conflict
of interest, create better working condition and enrich the positive attitude in employees
which increase company's volume of sales or proficiency.
 Promote company's image: In a competitive world one of the biggest challenge of
company is to maintain its branding among particular industry. For attaining the same an
organisation should have excellent ethical practices which enable them to sustain for long
term bases in market and gain competitive advantage (DaSilva and Trkman, 2014). Along
with this, an ethical pattern helps companies to develop an excellent reputation which
help in bringing more customers, generates positive publicity and can help or support the
organisation in time of crises and challenges to take appropriate course of action in order
to attain high profitability.
From the above explained statement it signifies that ethical and sustainable globalisation
plays a vital role in the enlargement of CAMECO. Apart from this it gains customer, employees
attraction and creates positive attitude among them towards the organisational objective which
increase the efficiency and potentiality of company to sustain firmly in the market (Verbeke,
2013).
LO 4
a) Different ways decision making can work effectively in a global context
Globalised business means trading internationally or across the globe with the
advancement of technology, innovative products and adapting enormous opportunities which
improves the overall performance of company. Some of the different ways of decision making
which helps CAMECO to work more effectively are described below:
Analytical intelligence: It is nothing but it is the ability or capability of an individual to analyse
or evaluate ideas, solve problems and make effective decisions. It involves planning,
implementation and evaluation of problem solving process (Ferraro and Briody, 2013). In
context to CAMECO an analytical intelligence ensures better working condition which improves
the morale of employees and increases the satisfaction level among them. Apart from this,
managers of company should involve and encourage employees in decision making which enable
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them to acquire several innovative ideas and it helps managers to take corrective course of
action.
 Openness: A leader should be flexible and adaptive in nature as they always ready to face
any challenges and always seek for opportunities which enhance the efficiency of
company. Apart from this in order to stand firmly in the market manager should consider
or respect the different culture, their values and treat everyone equally in order to gain
their trust towards company (Grant, 2016). Furthermore, in some business situation it's
outcome will be unpredictable which totally hamper the work of company. Thus, leader
should be positive attitude or encourager in order to maintain productivity and
profitability.
 Effective leadership style: For an impressive and effective working culture leader should
apply appropriate leadership style without harming the moral value of employees. As the
employees are backbone of company so it's a responsibility of managers to satisfy and
encourage them for putting their full effort towards organisational goal (Stahl and et. al.,
2012). Apart from this it enables them to handle or manage the complex business
situation, financial crises and make effective decision which enable them to attain pre-
determined goal and maximisation of profit.
From the above mentioned idea it explains that a fair and effective decision enrich the
CAMECO brand image and add value to its employees. Along with this make its mangers to be
more flexible which increase the efficiency and gain competitive advantage.
b) Determine and articulate the various routes to internationalisation an organisation may adopt
including key barriers
Globalisation and internationalisation has two different aspects i.e. globalisation is the
end goal on the other hand internationalisation is a task that has to be completed in order for the
end goal to be achieved (Milne and Gray, 2013). In other words, internationalisation is the
designing of product in such a way that it will meet the need of many users across the globe.
Some of the various strategies or ways of internationalisation which CAMECO may applies
which is described below:
 Licensing: It's an agreement that allow someone to copy, use or resell commodity and it
is one of the useful strategy for entry into foreign market. Apart from this, it requires
lower capital but it provide larger return on investment (Oestreicher-Singer and
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Zalmanson, 2012). It is designed in such a way that it reduces the risk of both the parties
i.e. from the point of licensee and licensor as it's an easiest way tom enter into foreign
market. Licensing enable the CAMECO to face the barriers of import and investment and
also provide the legal protection in order to capture the market in target environment.
 Franchising: It provide a whole system of product and management to a foreign firm for a
fee in order to attain career growth for a company (World Health Organization, 2016). It
is mainly opted by small business who cannot afford much finance and capital investment
for a business start-up. Apart from this, franchise business is immensely profitable as it
provides enormous platforms to CAMECO to enrich their business. Moreover,
franchising develop CAMECO brand as it provides access to make better deals for office
equipment, vehicles and other business purchases which increase their profitability.
 Joint Venture: Joint venture is a strategy where two international firms jointly set up a
separate legal entity and share the management and returns. It's a very productive strategy
but it contains risk (Peng, 2016). Furthermore, it helps CAMECO to grow faster, increase
productivity and generate greater profit as it accesses the company to new market and
helps in enlarging their distribution network which enhanced or increased capacity or
potentiality of a firm. Along with this, it enables CAMECO to grow without having
borrowed fund which makes them more flexible and sustainability.
From the above mentioned strategies licensing is appropriate for the growth of company
as it contain limited risk, limited capital requirement and protect patent or trademark registration.
By this CAMECO can attain higher level of profitability or productivity by entering into new
market in new geographical region which add value to is brand image.
Some of the key barriers of which every business face while globalising their business to a
foreign market or globally are as follows:
 Technological barriers: In the modern world technology is one of the integral element for
the growth of company. But at the same time it generates several obstacles to company
and its impact its productivity or profitability (Spieth, Schneckenberg and Ricart, 2014).
Apart from this it requires trained and experienced manpower to operate or handle and
also it has set of rules and to function. Furthermore, it reduces the effort of human capital
which leads to increase in unemployment and it impose huge amount on introducing and
implementing in new geographical region within a short period of time.
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 Cultural barrier: In globalised business one of the key barrier is cultural barrier as people
from different culture find difficult to communicate not only from language but also from
cultural differences (Rothaermel, 2015). Furthermore, expansion of company faces
several hurdles like in depth knowledge of existing market channel, customer taste and
preference and government rules and regulations which influence the CAMECO growth
and proficiency.
 Ethical barrier: In current scenario this issue is very common and challenging to handle
by company as it directly impacts its reputation and brand image. Some of the ethical
issues which every globalised business face i.e. issues in gaining integrity and trust from
public as well as employees.
Recommendation to overcome the barriers
From the above discussed barriers of globalised business it influences negatively on the
expansion of CAMECO. Some of the ways by which CAMECO can overcome its barriers are as
follows:
 When company decide to establish its business in new geographical region they should
consider the values, culture, beliefs which helps the company to improve the brand image
and add value to its goodwill (Slack and Brandon-Jones, 2018).
 Company should provide effective training in order to develop employees hidden talent
and make them to be more flexible and encourage them to put their full effort towards the
organisational goal.
CONCLUSION
From the above mentioned report it has been concluded that globalisation plays a vital
role in the growth of company as it considers whole world as a one family. In order to attain
effectiveness company should always be predictable and flexible in nature in order to face the
challenges or hurdles in an effective way. Apart from this company should implement fair
decisions which improves the morale of employees and gain competitive advantage. Along with
this company should always adapt innovative and advance technology in order to promote the
efficiency and attain maximisation of profit.
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REFERENCES
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the performance management practices of organisations. International Journal of
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Ferraro, G. P. and Briody, E. K., 2013. The cultural dimension of global business. Upper Saddle
River: Pearson.
Grant, R. M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
Milne, M. J. and Gray, R., 2013. W (h) ither ecology? The triple bottom line, the global
reporting initiative, and corporate sustainability reporting. Journal of business ethics.
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Oestreicher-Singer, G. and Zalmanson, L., 2012. Content or community? A digital business
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Peng, M. W., 2016. Global business. Cengage Learning.
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practice for strategic impact. Pearson UK.
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and future challenges for the field. R&d Management. 44(3). pp.237-247.
Stahl, G. and et. al., 2012. Six principles of effective global talent management. Sloan
Management Review. 53(2). pp.25-42.
Verbeke, A., 2013. International business strategy. Cambridge University Press.
Voegtlin, C., Patzer, M. and Scherer, A. G., 2012. Responsible leadership in global business: A
new approach to leadership and its multi-level outcomes. Journal of Business Ethics.
105(1). pp.1-16.
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