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Impact of Strategic Direction

Added on - 08 Dec 2020

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IMPACT AND STRATEGICDIRECTION
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11. Concept of globalisation..........................................................................................................12. Driving factors of globalisation...............................................................................................23. Significant impact of digital technology upon globalisation...................................................34. PESTLE analyses of CAMECO..............................................................................................35. Challenges of globalisation and strategic challenges for organisation....................................46. Recommendations to overcome these challenges....................................................................5TASK 2............................................................................................................................................61. Structure, culture and governance of organisation, Mckinsey’s 7S model.............................62. Explanation how 7S’selements influenced by global operations, application of Hofstede’sdimension of culture....................................................................................................................83. Ethical and sustainable factors that need to be considered by company.................................94. Influence of these factors on decision making in global context.............................................95. Strategic expansion routes available for organisation...........................................................10CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12
INTRODUCTIONIn the recent era each firm aims to expand its business into international market. Thissupports inraising profitability of company and gaining competitive advantage as well. Presentstudy is based on CAMECOcompany,it is the fastest growing chemical and energy firm.Recently firm is operating its business in Australia, Gabon etc. many countries(Pagano andet.al., 2016).Uranium, NUKEM and fuel services are three major segments on which enterpriseis recently working. Recently it has employed 3300 employees those who are working across theworld. Furthermore, in the year 2016 it has generated 2.431 billion revenues.Current assignmentwill discuss concept of globalisation. Furthermore, it will describe significant impact of digitaltechnology upon globalisation. Report willexplain challengesof globalisation for the CAMECO.In addition, 7S model will be explained. At last study will discuss expansion routes oforganisation with their advantage and disadvantage.TASK 11.Concept of globalisationGlobalisation can be defined as integration of markets that leads to enhanceinterconnectedness between nations. It is the process through which companies can makeconnection with other nations and can exchangevalues,ideas, goods easily. This is the conceptthat encourage producers and support business in raising economic of scale of company.Globalisation has helped in reducing monopoly profits and have also helped in raising its brandimage in international market(Tie, 2019). Now organisations have benefit of free movement oflabour. There are somany countriesthat have strong economic position and have successfultrade agreements with other regions. If any firm plans to enter into suchmarkets,then it supportsbusiness in generating more funds and gaining more return over its investments.Globalisation has enabled firms to source raw material at affordable rates thus, nowcompanies are able to run its operations in cost effective manner. That is the reason that nowmany big firms are able to fulfil needs of stakeholderssuccessfully. It is seen as phenomenonthroughwhichtechnologies, social cultural values can be transformed to other countries. Nowenterpriseshave benefit to import, export goods andservices acrossthe world(Zajda, 2015).There are so many reasons that have supported in boosting opportunity of globalisation.One of the major reason is development of technology. Over last few years’ technologies havehelped in improving communication with foreign consumers and now c shipping of commodities1
can be done easily at extremely low cost. Capital mobility, free trade movements act as stimulus(Hernández and Nieto, 2016).2. Driving factors of globalisationThere are so many components that drive globalisation, these are explained as below:Technological advancementThis is one of the major factor of globalisation, sustained changes in technologies hashelped in reducing transmitting cost. With the help of latest technologies firms can communicatewith international consumers easily. AsCAMECOis planning to enter into global market thus,use of advance technologies support the firm in making connection of foreign consumers andknowing more about market condition (Czaika and Neumayer, 2017). Web based technologieshave reduced time and cost that aid companies to successfully enter into global market.ContainerisationAs shipping cost has been reduced, now bulk shipping is also possible. This facility aidsin minimising transportation cost and minimising unit cost of products that ultimately helps inraising profit of organisation (Ferro and et.al., 2017).Political driversThis is another essential factors that drive globalisation, liberalized trading rules, foreigndirect investment policies allow and motivate companies to enter into international market.CAMECO is operating in Australia, Canada and many more nations. Political stability andliberalised norms support organisation in running its operations in global market successfully.Competitive driverHigh competition is another driver of globalisation, this high competition forceCAMECO to enter into international market and develop relationship with other countriesthrough trade activities (Geppert, Matten and Williams, 2016).Increase demandImproving income sources, standard of living of people raise demand of products to greatextent. As now consumers like to buy high quality products. Most of the firms are engaged in E-commerce and increasing demand encourage the firm to establish their branch in that location aswell. Customers look upon the quality of products first and also check its availability in nearmarket. This element drive globalisation and organisations start operating their business ininternational market alone with domestic market (Trindade d’Ávila Magalhães, 2018).2
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