Impact and Strategy Direction

This report examines the impact of globalization on CAMECO, a leading chemical company based in South Africa. It analyzes driving factors of globalization, strategic challenges faced by CAMECO in a global market, and the influence of globalization on organizational structure and decision-making. The report also explores the influence of ethical and sustainable factors on organizational functions and outlines routes for CAMECO's global expansion. Desklib provides past papers and solved assignments for students.

Impact And Strategy
Direction

Table of Contents
INTRODUCTION
............................................................................................................................................................
1
LO1
............................................................................................................................................................
1
P1 Driving Factors Of Globalisation........................................................................................1
LO2
............................................................................................................................................................
3
P2 Strategic Challenges Faced By Organization In Context Of Global Market......................3
LO3
............................................................................................................................................................
5
P3 Influences of globalisation on organizational structure......................................................5
P4 Influence of Ethical and Sustainable on the Organizational Function................................7
LO4
............................................................................................................................................................
9
P5 Ways to Make the Decision Making Effective...................................................................9
P6 The routes' organization may adopt for the global perspective...........................................10
CONCLUSION
............................................................................................................................................................
12
REFERENCES
............................................................................................................................................................
13

INTRODUCTION
The procedure of integration of worldwide into huge marketplace even political and
geographical limitations turn out to be beside the point. Accordingly, company dedicate itself
heavily with numerous manufacturing place round the world and offers products in several
various industries (Beck.2018). Thus, this report will highlight the factors of globalization that
impacts the operations of CAMECO which is the leading chemical company established in South
Africa and is planning to expand in other countries as well. Further, the project will frame the
impact of digital era on globalization and along with it will frame the PESTLE analysis of
CAMECO and on the basis of that it will comment on the strategic challenges face by the
company. Further, the report will highlight the organizational governance analyzed with the help
of McKinsey's 7S and Hofstede's model of cultural dimensions, Eventually, the assignment will
highlight the influence of globalization on the decision-making process of company.
LO1
P1 Driving Factors Of Globalisation
Globalization is the movement of human beings, goods, and services throughout barriers. This
motion is controlled in a unified and incorporated manner. Thus, it is able to be visible as a
scheme to open the global economic system as well as the related growth in change. However,
globalization means combining of economies via cross country exchange of data, opinions,
technologies, goods, offerings, assets, business etc.
Key Factors Of Cost
Fuel Cost: For CAMECO, the charges of marine and land shipping is, of route, related to
the fee of fuel. As fuel prices fall, field ships and load vans turn out to be inexpensive to perform
and the rate of delivery goes down and if petrol costs boom, the company will pass the extra fee
directly to merchandiser (Bejinaru, and Baesu.2018).
Labor Market: Growing wages and opposition among carriers for truck drivers have an
impact on transportation prices of CAMECO because as the previous drivers retire, company
struggle to find new drivers for transporting their products and recruiting new drivers is hard and
generally requires a one-of-a-kind magnificence of driver license.

Key Factors Of Market
Inflation Rate: Inflation is one of the primary economic marketing elements that affect
CAMECO's clients purchasing power. Thus, It represents the rate at which the cost of products
and services are growing. The higher the inflation rate, the greater buying strength decreases.
So, the company will have to work a lot harder to steer customers to purchase their products even
though they will no longer have profits to spare (Bell, Bryman, and Harley. 2018).
Changes In Disposable Income:The changes in disposable income will impact the
revenue of CAMECO as it affects the consumer spending like if unemployment level increases,
the demand for goods and offerings of the company will drop and clients may additionally no
longer be capable of to buy the company's product, which will directly affects the sales of the
company. Thus, this reduces disposable income and buying power of clients of CAMECO.
Key Factors Of Environment
Sustainability:Environmental sustainability should be initiated by CAMECO generally attention
on principal areas: restricting pollution and decreasing greenhouse gases. Thus, if the CAMECO
that take steps to lessen air, land and water pollutants can boom their status as appropriate
company citizens whilst additionally benefiting society as an entire (Byrne, and Shepherd.2015).
Ethical Practices: The primary cognizance of CAMECO should be on ethics by offering
fair practices for company's personnels as well as the personnel of their suppliers. Fair enterprise
practices encompass of equal pay for equal work and providing salary compensations.
Economic Responsibility: Economic duty of CAMECO makes a speciality of practices
that facilitate the growth of the company, whilst additionally assembly the standards set for
moral, environmental and philanthropic practices. Thus, by fulfilling their economic
responsibility, CAMECO can enhance their operations at the same time as additionally
accomplishing sustainable practices. For example, company can modifies its manufacturing
techniques to include recycled products, which can advantage the corporation with the aid of
doubtlessly reducing the cost of materials and additionally benefit society by consuming lesser
resources (Fozer, and et.al.,2017).
Key Factors Of Competition
Competitors: CAMECO has two strong competitors namely: Areva and Kazatomprom
which are equal in size as of CAMECO thus, irrespective of whether the competition is new or

antique, it's far vital for the company to take a look at their rivals by recognizing their product
providing, market penetration, strategic position, and pricing records. Further, the company
should prepare a statistical data of every competitor and the area of interest they pursue and the
basis of such data, CAMECO should prepare tactics to compete with their rivals.
Consumer expectations — It's essential for the CAMECO to understand a client’s
expectations towards their products and services as few clients are very fee-sensitive even as
others are more aware of quality while some customers are less involved with fee as the provider
they receive is faultless. Nevertheless, other customers are being motivated through a
tremendous service offered by their competitors. Thus, the factor greatly impacts the competitive
advantage of CAMECO (Hirst, Thompson, and Bromley. 2015).
LO2
P2 Strategic Challenges Faced By Organization In Context Of Global Market
Impact Of Digital Technology On Globalization
Advancements in technology have notably leads to globalization and in reality
technological development has been one of the most important forces riding globalization. Thus,
Technological breakthroughs compel companies to emerge as worldwide via growing the
economies of scale and the market size in which they want to operate.
Technological improvements lessen charges of transportation and verbal exchange
throughout countries and thereby facilitate international sourcing of raw substances and other
inputs. Further, Patented era encourages globalization as the company owning the patent can
exploit overseas markets without plenty opposition (Nainggolan, How, and Verhoeven. 2016).
Thus, digital era has led to the development of globalization.
PESTLE Analysis:
Political: These factors in global market consist of –authorities policy, political balance
or instability in foreign places markets, overseas change policy, tax policy, labor law,
environmental regulation, exchange restrictions and so forth. Thus, the CAMECO is planning to
expand in china but its political factor like china's government have introduced formal and
informal rules which the CAMECO needs to follow and which impacts the working of the
company.

Economic: The Macro surroundings elements of global mark are – inflation rate, savings
price, hobby rate, foreign exchange price and financial cycle determine the combination call for
and combination funding in an economic system (Pearson.2017). While micro environment
elements such as opposition norms effect the aggressive advantage of the company. However,
while expanding in china, CAMECO company uses financial aspect of china growth rate,
inflation & enterprise’s economic indicators together with business Metals & Minerals industry
growth rate, client spending of china and many others to forecast the growth aspects of company
in china.
Social: Society’s culture of global market impacts the subculture of companies in an
environment. Shared beliefs and attitudes of the populace play a super role in how marketers of
Cameco in china will understand the clients of a given market and the way they design the
advertising message for business Metals & Minerals enterprise customers. Thus, there are certain
social factors of china affects the Cameco like Demographics and talent level of the population,
lifestyle which includes gender roles, social practices etc (Savur, Provis, and Harris. 2018.).
Technological: Digital era of global market is rapidly cuting off numerous industries
across the globe. Thus, while expanding in china there are various factors like china's technology
will impact the products of Cameco, company's cost structure will be affected because of
different accounting software, technological advancements of competitors in china etc.
Environment: Distinct markets have distinct environment norms that can effect the
profitability of a business enterprise in those markets. Thus, Cameco can be affected by the
china's environmental laws like producing only ecological products or putting health tax on
company to use renewable resources etc.
Legal: These factors of global market includes discrimination law antitrust laws,
employment laws, patent law etc. Thus, while expanding in china, its legal factors like
employment law of china may impacts the managing model of company.
Challenges:
Ethical Practices: The major challenges faced by Cameco is to conduct moral practices in
regions together with hard work, product safety, environmental sustainability, corruption, and
regulatory compliance have historically performed a dramatic function inside the fulfillment or
failure of worldwide players (Szeto.2017). Thus, maintaining the highest moral requirements

whilst running in any country like china is a critical attention for Cameco.
Organizational Structure: Another sizable hurdle for Cameco is the ability to efficiently
and successfully include new areas in the cost chain and corporate structure. Further, global
enlargement calls for tremendous capital investments in lots of cases, together with the
improvement of a specific strategic enterprise unit (SBU) with a purpose to manipulate these
operations.
Public Relations : Public relation and branding are two important components of
Cameco. Thus, constructing this public relations new geographic location is a giant assignment,
each in effectively localizing the message and in the capital prices essential to create strength.
Overcome Of Challenges
CAMECO can overcome from above mentioned challenges by following various sustainable
activities like avoiding the carbon footprint products that harm the environment and health of the
society members (Venkatraman, and Nayak. 2015).
Further, in order to get success the CAMECO should adopt the corporate structure that
enable them to get expansion in other countries as well and lead to increase its profit by
accomplishing the goals of company.
Moreover, the company should maintain good human relation with their customers by
producing those products and offerings the services which are according to the wants and needs
of customers.
LO3
P3 Influences of globalisation on organizational structure
CAMECO have incorporated organizational governance and leadership on the basis of
McKinsey 7S is a framework designed to assist enterprise owners and executives understand
how aligned their corporation is, and in which it could be advanced.
Strategy is the program deployed by means of an organization that allows Cameco to
remain competitive in its enterprise and market (Beck.2018).
Structure of the Cameco is made of its company hierarchy, chain of command, and
divisional structure that outlines how the operations function and interconnect.

Systems of the Cameco consult with the everyday tactics, workflow, and choices that sets
the standards under which company will operate.
Shared Values: The subordinate desires or the core values which get meditated within
the company's way of life or affect their code of ethics.
Style: This lays emphasis at the leadership pattern of Cameco and the way it impacts the
strategic choices, personnel motivation and company's overall performance.
Skills:These are concern with each of the talents of the corporation and those of the
employees.
Personnel: These are concerned with general body of workers or the abilities of the
personnel and how these personnels get training and how they accomplish the goals of the
company (Bejinaru,and Baesu.2018).
Further, CAMECO follows various cultures which is analyzed through Hofstede's model:
Hofstede's cultural dimensions idea is a framework for cross-cultural communication,
evolved through Geert Hofstede. It describes the outcomes of a society's lifestyle on the values of
its members, and how these values affects the behavior of people.
Power Distance : This factor of Cameco culture says that the less powerful people of a
society deal with the unequal distribution of rights among the people. Thus, the essential problem
right here is how a society handles inequalities amongst human beings.
Individualism Versus Collectivism: Individualism means in which people are predicted to
take care of only themselves and their on the spot families. While in Collectivism is a framework
in society in which people can anticipate their family or members to take care of them in
alternate for absolute loyalty (Bell, Bryman, and Harley. 2018).
Masculinity Versus Femininity: The Masculinity aspect of Cameco represents a choice in
society for fulfillment, courage, self-assertiveness, and material rewards for success. Its opposite,
Femininity, stands for a desire for cooperation, modestness, worrying about the susceptible and
quality of lifestyles.
Uncertainty Avoidance :The definition of ‘uncertainty‘ within the Hofstede Cultural
Dimensions of CAMECO refers to the degree of anxiousness that people of society feel when
they are faced with uncomfortable circumstances. High scoring nations avoid unsure situations

through rules and guidelines. While Low scoring nations enjoy new events and procedures
(Charles ,and et. al., 2017).
P4 Influence of Ethical and Sustainable on the Organizational Function
Influence of the Ethical Factors
The factors that can affect the ethical behaviour of the employees by influencing the
individual knowledge, values, morals, personal goals and personal factors. This factors affect the
different functional department of an organization. Here the affect of the ethical factor on the
HRM and marketing are explained (Nainggolan, How and Verhoeven, 2016).
1. HRM- The main operation of HRM in the organization is the administration, recruitment,
job analysis and employee relationship. In the HRM function the HR department handles
the employee relation and the recruitment process, mostly this department is affected by
the ethical factors. To manage the better HRM apply different practices to maintain the
better relationship between the employees. To conduct various activity the HRM should
have knowledge of the ethical behaviour and be more effective the activity should be
according to the employees value and their morals. In an organization different type of
employees works for the profit of the organization and if they are not ethically not
satisfied then it will demotivate the employees and may lead to less belief in the Cameco
(Bell, Bryman and Harley, 2018).
2. Marketing- Work of the marketing ids to deal with the customers. The strategies of the
marketing department are dependent on the customer. The promotion and advertisements
can hurt the feelings of the customers and it will create the negative marketing and it can
reduce the market share of the company product. The ethical behaviour of the customer
force and influence the marketing to the take the decisions accordingly. The beliefs and
moral values can affect the selling of the Cameco product if the marketing process is
hurting the ethical feelings and their values. That is how the ethical values like personal
morals, knowledge and their belief can influence the marketing department and their
strategies.
Influence of Sustainable Factors
This factors are related to the resources which are non renewable and are using as the raw
material in the industry for the production of the goods. The natural resources like coal, and

minerals which are using in the Cameco for the production are limited and the sustainable factors
are forcing prevent the using of natural resources and minimise their use in the industry.
Sustainable factors mostly affect the production and the R&D department of the Cameco
(Charles and et. al., 2017).
1. Production- The production department is the department which manage the importing
of the raw material and use of them (Stock and Seliger, 2016). The sustainable factors
affect the production department by affecting the method use for the production of the
company product. If any of the company product is harming the nature and consuming
more than usual can be affected by these factors. If any of the company procedure is
affecting the environment like air pollution and water pollution this may lead to face
some restriction in the production. The excessive use of the natural resources and
affecting the environment are the factor can affect the strategy and procedure of the
production. To reduce this affect Cameco needs to change the production methods and
use the raw material which can be synthesize within the organization. That how the
sustainable factors affect the working of the production department (Bejinaru, and Baesu,
2018).
2. Research & Development- The R&D department performs the research work for the
development of the current product and introduce new product in the market. The
research and development department of the Cameco allow the company to introduce
their new product in the market to improve the sales and the market of the company
(Venkatraman, and Nayak, 2015). The sustainable factors the research of the research and
development department of the company by forcing them to minimise the use of the non
renewable natural resources and use the raw material which can be synthesize in the labs
to reduce the consumption of the non renewable resources and raw material. This will
help the company to play a part in saving the nature. The sustainable factors force the
research and development to improve the methods and procedure to reduce the pollution
and to reduce the impact of organizational procedure on the nature.

LO4
P5 Ways to Make the Decision Making Effective
To develop new market in the context of the globalization, the most important thins is to
take the right decision for the goods of the organization. Right decision making can help the
organization to penetrate the new market and gain the share of the consumer and run with the
profit in the new market. There are different ways to improve the effectiveness of the decision
making of the organization. By conducting market research, the company can gain the market
information, by improve the relationship with the employees, by using proactive methods and by
using the contingencies' theory of the decision making. These are the ways which can make the
decision making more effective (Savur, Provis and Harris, 2018).
Market Research
The decision making of the Cameco can be improved by conducting the market research.
Market research can help the organization to know more about the market and market trends to
decide the marketing strategy and set the organization goal in the global market. This research
can provide the interest of the consumer and information that can help the management to take
the better decision. This research can help the organization by providing the data related to the
global market, population, market trends, demand of the product, information of the competitors
and local culture, by the help of the research the company can take the better decision to
introduce the product in the market. The population and the demand data will help the Cameco to
set the production goal. Market trends and demand of the product will help the organization to
take the better decision regarding the marketing and promotion of company product.
Employee Relation
The relation between employees and the management can improve the decision making
process by including the employees in the decision making process. This will improve the
number of the opinions and it will help to take the right decision for both employees and the
management. By the analysing the decision making from the both perspective will improve the
chances of the success. This improved relationship between the management and employees will
improve the internal environment of the organization. By this method the trust and belief of the
employees in the organization will improve which is good for Cameco to work as global
organization.

Proactive Method of Decision Making
By applying the proactive methods in the decision making strategy and goal setting also
can improve the chances of success. The meaning of the proactive planning is to take the
decision with the backup plans. By evaluate all the presumptions and conditions of the
organization goals and planning will improve the decision making process of the organization
and the Implementation of the decisions. Well planes decision will help the organization to grow
in the global market with the sufficient profit. This method judges the future chances of success
and the possible problems which will create barriers in the way of the organization. In the time of
the backfire of the implementation or planning the alternate method will help the organization to
achieve the predefined company goals. The contingency planning is the procedure of different
action to make the effectiveness of the organization for different condition which may or may
not going happen in the future. This prepare the organization for the future condition which may
affect the company goals. By using this method the success ratio of the company will improve
and the implementation of the decision will also effective because the predicted events for the
future are pre calculated.
P6 The routes' organization may adopt for the global perspective
An organization can user various method to expend the business to the globalized level.
The business expansion means, to increase the number of branches of the Cameco on worldwide
level. There are various methods to expend the business on the global platform. Franchising,
partnership, own the business and acquiring are the main methods of the business expansion
(Byrne and Shepherd, 2015).
Franchising
This is the one of the famous way to expend the business. In this method the company
allow other company to operate with name and brand status of mother company. Through in
other nation the local companies buy the franchise of the business and conducts with brand name
with the product standards. In this method the operation of the branch is handled by the local
individual or organization and some profit of the organization will go to the main branch. The
whole expenses are managed by the company who buys the franchise. For the Cameco it is not
right way to expend. This methode is good enough fot the restaurant business not for company

like the Cameco (Pearson, 2017). This is the fastest way to grow on the global level with some
limitations as follows-
 Profit generation is based on the performance of the franchised branch.
 The brand image can be compromised by bad performance.
 Main branch have less control on the business.
Joint Venture
This method is also known as the partnership. In this method the company runs its
business in the other nation using the help of the local organization. Through this method the
organization sign an agreement with the local company for the business. The responsibilities are
divided in both organizations. For global business the administration and the production is
handled by the company and the resources, supply chain and local marketing department are
handled by the local company. This type of division of the responsibilities help the Cameco to
run the business in the other country with the precision and profit. In this type of industries the
profit is divided as per the ratio of the responsibilities and investment of individual (Chisholm,
R., 2017). Limitation in this method are-
 Profit division between the organization may lead to the conflict.
 The division of the responsibilities may lead to bad implementation.
 The communication gap reduce the efficiency of the organization.
Start Own Business
In this way the owner of business or the organization start the business in other nation
and completely own the whole business. The all functions and operations of the company is
handled with divisional office in the particular nation. The whole procedures and investment are
made by the organization and the management of the resources and supply chain is also managed
by the organization. This method needs large amount of investment and hard work to start a
business in other country. The arrangement of the infrastructure of the organization is developed
and implemented by the organization.
 Needs large amount of funds.
 Infrastructure is needed to initiate the business
Acquiring business

This is also one of the best way to start the business on the global level. In this way the
organization buy any local organization which is in the same kind of business. This help the
organization with the basic infrastructure to initiate the business and then improve the
infrastructure step by step. For the Cameco its is a good option to globalized its business. The
limitations in this way are-
 To convince any owner to sell the business is hard.
 The developing the brand image over the previous takes the extra efforts.
The implementation of the new business is and company technology needs time.
CONCLUSION
This report gives the analysis of the key factors that lead the globalization of an
organization and explain key factors like cost, market, environment, and competition to make the
procedure more effective. The challenges faced by the organization on the global level related to
the complexity of the global environment are explained in the report. The report presenting the
evaluation of, how the globalization influences the governance, leadership, structure culture and
function of the organization. The influence of the sustainable and ethical factors on the different
organizational function are explained in the report. The ways to make the decision making more
effective are given in the report. The method of the expansion of the business are explained with
the barriers of individual.

REFERENCES
Books and Journals
Beck, U., 2018. What is globalization?. John Wiley & Sons.
Bejinaru, R. and Baesu, C., 2018. CONNECTING APPROACHES OF SUSTAINABLE
DEVELOPMENT AND ORGANIZATIONAL CHANGE IN BUSINESS
COMPANIES. The USV Annals of Economics and Public Administration. 17(2 (26)).
pp.87-94.
Bell, E., Bryman, A. and Harley, B., 2018. Business research methods. Oxford university press.
Byrne, O. and Shepherd, D.A., 2015. Different strokes for different folks: Entrepreneurial
narratives of emotion, cognition, and making sense of business failure. Entrepreneurship
Theory and Practice. 39(2). pp.375-405.
Charles Jr, and et. al., 2017. Walking the talk: The business case for sustainable development.
Routledge.
Chisholm, R., 2017. Interorganizational decision making. Routledge.
Fozer, D. and et.al., 2017. Life cycle, PESTLE and multi-criteria decision analysis of CCS
process alternatives. Journal of cleaner production.147.pp.75-85.
Hirst, P., Thompson, G. and Bromley, S., 2015. Globalization in question. John Wiley & Sons.
Nainggolan, Y., How, J. and Verhoeven, P., 2016. Ethical screening and financial performance:
The case of Islamic equity funds. Journal of Business Ethics. 137(1). pp.83-99.
Pearson, R., 2017. Business ethics as communication ethics: Public relations practice and the
idea of dialogue. In Public relations theory (pp. 111-131). Routledge.
Savur, S., Provis, C. and Harris, H., 2018. Ethical decision-making in Australian SMEs: a field
study. Small Enterprise Research. 25(2). pp.114-136.
Stock, T. and Seliger, G., 2016. Opportunities of sustainable manufacturing in industry
4.0. Procedia Cirp. 40. pp.536-541.
Szeto, M.C.H., 2017. 2 Challenges for a community of practice: recognising complexity with the
mckinsey 7s framework.
Venkatraman, S. and Nayak, R.R., 2015. Relationships among triple bottom line elements: Focus
on integrating sustainable business practices. Journal of Global Responsibility. 6(2).
pp.195-214.

Online
Scanning the Environment: PESTEL Analysis.2016.[Online].Available
through:<https://www.business-to-you.com/scanning-the-environment-pestel-analysis/>
McKinsey 7S Framework.2018.[Online].Available
through:<https://www.toolshero.com/strategy/mckinsey-7s-framework/>