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Introduction to Global Business Environment
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Added on 2020-06-05
Introduction to Global Business Environment
Added on 2020-06-05
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GLOBAL BUSINESSENVIRONMENT
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Key factors which drives global trade and commerce..........................................................1TASK 2............................................................................................................................................3P2 Complexity of strategic challenges faced by firms................................................................3TASK 3............................................................................................................................................5P3 Impact of globalisation on organisational leadership and governance..................................5P4 Impact of sustainable and ethical globalisation.....................................................................6TASK 4............................................................................................................................................8P5 Various ways of making decision..........................................................................................8P6 Articulate the routes to internationalisation of an company..................................................8CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................11
INTRODUCTIONGlobal business environment is linked with a environment in different sovereign nations.Various factors include business environment which impact on making decision as percapabilities as well as resources of the company. For operating activities efficiently andeffectively, enterprise have to concentrate on running at a level of international along with thatthey also have to understand entire social environment of particular nation. In today's times,thousands units of firms, i.e. large and small part of it. Globalisation is a concept of threedimensional like as a philosophy, a process and a phenomenon. It raise enterprise runningflexibility and fast growth of local area enterprise within a future market. In this report,Boohoo.com is a retailer of online fashion as it was established in 2006. This organisation isearning higher profits through their experiences by keeping budgeted cost of the year 16 to 24old persons (Cantwell, Dunning and Lundan, 2010). In this assignment also describe differentmain factors that help in driving up of global commerce market. They has also describe variouschallenges which are faced by enterprise while running within a global market also about routesand barriers of internationalisation of present enterprise. TASK 1P1 Key factors which drives global trade and commerceGlobalisation entails by a worldwide transaction of trade integration, communication,finance and economic. It implies by applying of domestic and local enterprises within a level ofinternational market with a purpose of wider outlook for making a free capital as well as goods.In context of enterprise, it involves modifications within an organisation which is linked in asingle nation and have to operate within a various country. With this, influence of globalisationon a practices of core enterprise are divided into two different parts like as production andmarket globalisation. In this, globalisation in market decline barriers which sell in others nationsas well as manufacturing globalisation is a source of products and raw materials from othercountries for achieving higher cutting edge (Cavusgil and et. al., 2014). Therefore, some modifications can facilities to achieve higher profitability as well assales within a level of international market. It raise joint ventures and mergers which arrivedwithin a large area of market. Some of various factors affect global traders andcommercialisation are as follows: 1
Cost: It is a main thing that include in research activities, marketing, manufacturing etc.Hence, it can said that cost is enclose with a value of finance as well as make proper practices ofenterprise. It is also used in producing products, something with quality and carry out them fromone place to other. Global trade and commerce determine the cost of enterprise. Direct cost: Something which is definite with a cost happen within a cost object byputting small efforts. Therefore, objects of cost are project or goods. Many of direct cost is avariables e.g. wages incurred in concrete manufacturing, gravel cost, cement and sand. Indirect Cost: It is which goes beyond expenses which include in manufacturing of goodsby enclosing of pricing policy which is maintained by whole company. Various supplies as wellas materials are needed in daily activities of enterprise is called as indirect cost. Impact of cost on global trade: As international trade gives opportunities to organisationsto trade their products internationally. But it is generally affected due to transport and logisticcosts. Since, 90% of trade in the world is done by marine transport so, due to increase in rate offuel, shipping cost also fluctuates. Thus, increasing cost of shipping can drop international trade.Similarly, exchange in foreign currency rates also affect trade at global scale. Thus, to affordsuch expenses for conducting business in international market is not easy for small companiesincluding Boohoo.com. Market: It is a place where various transactions are made of exchanging services as wellas goods. Global trade and commerce also determine companies market. Therefore, somecompanies directly provide their goods to customers along with that certain goods are sold byentire sellers. With this, cost of global market, value and price are traded according to supply anddemand of goods. Some of key factors of markets are as follows: Impact of market on global trade: Since main purpose of participating at global scale isto serve products worldwide. Therefore, trends of market, demand of particular products, tasteand preference of customers as per different culture are some factors which affect internationaltrade more. Therefore, any change in trend and demand of market will affect profitability ofBoohoo.com and other organisations running at small scale. Labour markets: It is a market for those persons who are searching for a job within acountry or in a particular region. In United Kingdom, various opportunities of jobs are available.It included driven up the market of global commerce and trades of country that help to achievehigher competitive edge (Colfax, Rivera and Perez, 2010). 2
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