Impact of Strategic Management on Organizational Performance

This assignment delves into the importance of strategic management in today's globalized business environment. It examines how effective strategic planning can improve an organization's ability to adapt to changing market conditions, innovate, and ultimately enhance its overall performance. The analysis also considers the impact of technology on globalization and the role of ethics in business decision-making.

Impact And Strategic Direction
Table of Contents

INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Analyse key factors of cost, market, environment and competition that drive global
commerce and trade....................................................................................................................3
TASK 2............................................................................................................................................5
P2 Explain complexity of strategic challenges faced by organisation when operating in a
global environment using specific examples..............................................................................5
TASK 3............................................................................................................................................7
P3 Evaluate the influences of globalisation on governance and leadership, structure, culture
and functions...............................................................................................................................7
P4 Evaluate the influences of ethical and sustainable globalisation on organisational functions
.....................................................................................................................................................9
TASK 4..........................................................................................................................................10
P5 Evaluate the different ways decision making can work effectively in a global context......10
P6 Determine and articulate the various routes to internationalisation and organisation may
adopt including key barriers......................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14
INTRODUCTION
Global business environment is defined as situation in various sovereign countries having
factors exogenous that is to home environment of enterprise which helps in influencing decision
making on capabilities and use of resources (Alkhafaji and Nelson, 2013). For running
operations in global market, it is important to have proper strategies. Strategic direction is

significant force in firm which establishes system for internal responsibilities where every
department and employees work. It is necessary to provide clear vision to each and every
workers for objectives and purpose of company. This can impact business and its activities in
global context which helps for achievement of goals and objectives. The given report is based on
CAMECO which was founded in 1988 at South Africa by Neil McMillan and Tim Gitzel. It is
largest company which produces Uranium that is 18% of world production. It is chemical and
fast growing energy company that has expanded business in Canada, Australia, Gabon and
Mozambique. This report highlights key factors that drive globalisation and strategic
complexities associated with operating in global environment. Also it covers operation of global
market influences organisation's structure, culture, functions and influence of globalisation on
decision making and strategy on organisations.
TASK 1
P1 Analyse key factors of cost, market, environment and competition that drive global commerce
and trade
Concept of Globalisation
Globalisation is procedure for integration and interaction among companies, people and
companies globally. The markets where globalisation is common such as capital, credit,
commodity, gold, oil and others (Amran, Lee and Devi, 2014). This has grown because of
increase in communication and transportation technology, growth of culture, trade and ideas.
Globalisation is interaction that is associated with cultural and social aspects. It involves
services, goods, technology, resources of capital and data. There are various reasons due to
which globalisation took place. CAMECO has also grown through such phase as it helps in
achieving goals and objective in effective and efficient manner. The increase of social media,
transportation, communication, payment systems, financial products, and others leads to rise of
globalisation in business and organisation.
Driving factors of Globalisation
There are various driving factors of globalisation in CAMECO which are described. The
first is cost where digital communication assist in lowering communication and transmitting
information at CAMECO. The cost of shipping is declining because of bulk shipping,
containerisation which helps in bringing prices in country of producer closer to price in export

market (Bititci, Cocca and Ates, 2016). The second is market where globalisation has bring
different markets into single. This can help CAMECO to deliver goods and services in given
time period. Globalisation take place in market where products are transferred from one to
another. According to market scenario, trade and commerce take place that impact globalisation.
Third key factors is environment as it is dynamic where changes take place frequently.
CAMECO has faced such issue with change in environment as it running business in changing
market and environment. It is very essential to analyse environment and accordingly decision
should be made. Trade and commerce took place in environment as increase in consumption of
products has impact ecological cycle which leads to put stress on surrounding. Lastly factor is
competition that brings globalisation in market. It is very difficult for CAMECO to get
competitive edge in market as there is frequent changes took place in global era. Because of
globalisation, different organisations has entered into countries in order to expand market and
share.
Significant impact of digital technology upon globalisation
Digital technology means use of resources for effectively finding, creating, analysing,
communicating and information in digital context. It includes use of programming tools,
software applications and web tools. The digital technology has impacted globalisation because
of advancement and growth and main forces for driving it. This compel enterprise to become
global through help of increasing economies of scale and size of market. Digital technology has
significantly reduces communication, transportation cost through out nations and facilitate for
global source of inputs and raw materials (Cheng, Green and Ko, 2014). There is patent
technology which encourage globalisation to own patent and exploit other foreign market
without competition. The emergence of digital technology leads to emergence of global village
and reduces barriers of place and time for dealing in organisation. With assist of digital
technology, seller and buyer can do business at any time and place. In earlier days, digital
technology was limited to place but with rise in globalisation it is required in every business and
sectors for running activities effectively and efficiently (Impact of Technology on Globalisation,
2019)

TASK 2
P2 Explain complexity of strategic challenges faced by organisation when operating in a global
environment using specific examples
Strategic challenges means pressures which exert decisive influences on future success of
organisations. It can be internal and external where internal means within firm such as unskilled
employees, lack of raw materials, failure of manufacturing process. Similarly, external means
which is outside enterprise such as technological or product changes, financial, risk, societal and
market or consumer needs or expectations (Coltman and et. al., 2015). While operating business
in global environment, various strategic challenges can be faced by CAMECO.
Present PESTLE analysis of organisation
PESTLE analysis is tool that is designed to analyse and monitor macro environmental
factors which has impact on performance of business. Such technique is used when new
organisation is started or entering into foreign market. The PESTLE analysis of CAMECO is
described here. There are six factors such as political, economic, social, technological, legal and
environment which affect business while operating in global environment. First is political
factor that means intervenes of government in economy that includes political stability, foreign
trade, tax policy, environmental laws and others. This factors has greatly influence CAMECO as
it is operating business in minerals and metals in various countries. In order to expand market at
global level, it is important to understand important of such sector. If organisation can easily
identify risk, level of corruption of global then it can survive otherwise has to vanish from it.
Second factor is economic factors which means way of doing business by organisation in
competitive market or economy. This includes interest rates, inflation, exchange rates and others.
If CAMECO want to spend market in global market corporation need to face strategic challenges
in terms of exchange rates, efficiency of financial markets, lack of quality in chemical and
others. It is important to consider such factors before entering into global market (Daley, 2012).
Third is social factors that means shared attitudes, believes of people including age,
health, gender, population growth. In order to avoid strategic challenges at global market, it is
necessary for CAMECO to know about education, culture, attitudes, demographics elements
before entering into global. If organisation can understand then it does not have to face issues
related with social factors. Fourth is technological factors that creates impact on product and
affect management and marketing in three ways such as new ways for distributing, producing

and communicating goods and services of target market. In order to run business in global
market, technology plays an effective role in both positive and negative way. Here, CAMECO
should is large organisation which need to understand technological diffusion, product offering
methods and technology adopted by competitors (Dubihlela and Sandada, 2014).
Fifth is environmental factors which is important because of increasing scarcity of raw
materials, carbon footprints, pollution and others. It is very important for CAMECO to
understand environmental laws before producing chemicals and supplying it in global market. As
due to difference in market, norms and values are different from each others. While supplying
products to consumers, elements such as waste management, climate change, weather and others
should be considered. Last factor is legal factors which includes equal opportunities, health and
safety, consumer right and laws, product safety and labelling. It is very important for CAMECO
to evaluate factors before entering into global market to gain competitive edge. The
products manufactured should be labelled properly and effectively. The consumer protection,
employment laws, data protection should be followed for manufacturing chemicals (Eden and
Ackermann, 2013).
Challenges of Globalisation and strategic challenges of organisation
With the increase in globalisation, challenges has been faced such as mobility of jobs,
loss of cultural diversity and partner with globalisation expert. First is mobility of jobs where
manufacturing jobs are shifted from less developed to developing countries. Due to globalisation,
many jobs has been loss which leads to low tax revenues for welfare system. Second challenges
is loss of cultural diversity where foreign culture has been adopted by individual that leads to
loss of distinctive features. Last challenges is partners with globalisation expert where
experienced partner can take help from other to take business advantage where other lack it
(Elbanna, Andrews and Pollanen, 2016).
CAMECO need to analyse strategic challenges for their business. There are various
challenges which can be faced by CAMECO as need and demand of consumer changes
frequently, financial risk, technological changes etc. It is very important for organisation to study
about each and every factors and work accordingly to avoid failure.
Recommendations on overcoming challenges
There are some recommendation given to CAMECO in order to overcome challenges.
The first recommendation is to understand importance of global culture and values. In order to

operate business in global market, if organisation can know about need and demand of consumer
then they can easily manufacture according to them and they can survive in market accordingly
(Khan and Khalique, 2014). Second recommendation given to organisation is to provide jobs to
all skilled, knowledge and experience so that they does not move from developing to developed
countries. This helps in increasing economic growth of business and country. This leads to
earning profit by the business and sustaining in competitive market for competitive edge.
TASK 3
P3 Evaluate the influences of globalisation on governance and leadership, structure, culture and
functions
The globalisation helps in influencing on governance and leadership, structure, culture
and functions which can be explained with helps of following theories: Globalisation on
governance is regarded as system of process, practices and rules through which firm is
controlled and directed. It helps in balancing interest of stakeholders of organisation such as
customer, suppliers, management (Kirchoff, Tate and Mollenkopf, 2016). With the rise in
globalisation many business has been impacted. CAMECO has also influence by corporate
governance in globalisation as it helps in promoting effective use of resources in both
organisation and economy. This ensure CAMECO to follow regulations, laws, expectation of
society. With globalisation many changes took place as it allow to use corporate assets
effectively.
Globalisation on Leadership helps in influencing leadership style of CAMECO which is
explained through theory. Here, in organisation context situational theories has been discussed. It
means when leader chose best course of action that is based on situational variables. Due to
globalisation, changes took place frequently. As various leadership styles are suitable for making
decisions (Liu and Wang, 2014). For example, when leader is experienced and knowledgeable
then authoritarian style is most suitable and when member of group are skilled then democratic
style is acceptable. With change in situation, it is very important for CAMECO to adopt style
and fulfils task that is influenced by globalisation.
Globalisation on Structure is system which outlines various activities that are directed
towards achievement of goals and objectives of an organisation. It includes roles, responsibilities
and rules. This has influence globalisation which can be explained with McKinsey's 7S model

discussed here. It is tool which analyse design of firm using 7 key elements for identifying and
achieving goals and objectives. This model was given by McKinsey consultants in 1980 which
has divided elements into soft and hard. First is strategy, where CAMECO need to develop such
strategy that helps in achieving competitive advantage. It is very important elements of this
model. When globalisation took place, then it should be flexible enough to adopt changes.
Second element is structure which represents divisions and units of business that are organised
and information regarding accountable. The structure of CAMECO is influenced by globalisation
and it should be changed as per requirement of market scenario. The third elements of model is
system which means procedure and process of organisation that present activities and decisions
to be taken. All the activities and work of CAMECO should be followed in proper system so that
task can be performed as per changed globalisation. Fourth elements is skills which indicate
abilities of employee to perform well. CAMECO should possess all skilled workers for adopting
change that took place because of globalisation. This helps in achieving goals and objectives.
Fifth is staff which represents number of employees and ways of recruited, motivated, trained
and rewarded. They are the person of CAMECO who focus on achieving objectives of business.
This elements influence globalisation effectively as they focus on completing task within given
time period. Sixth element is style that represent management of company by top level manager.
The manager working in CAMECO has different style for managing people and company in
organisation. This style influence globalisation as individual posses various style to solve issues
and perform their duties. Last element is shared value which is standards, norms and values that
guide company's actions and behaviour of employees (Noble and Nwanekezie, 2017). CAMECO
should possess shared value in their business in order to follows standards and norms.
Globalisation on Culture is knowledge and characteristics of specified group of
language, people, cuisine, religious, music, social habits and arts. The influence of globalisation
on culture in CAMECO is explained with Hofstede's dimensions. It was given by Geert Hofstede
which has represented six cultural dimensions. The first is power distance index which represent
measure of inequality which exist and accepted by individuals with and without power. All
manager working in CAMECO should work as per assigned power according to their post.
Second dimensions is individualism vs. collectivism which means if any work in CAMECO is
done by all members together then goals and objectives can be achieved. If it is done by
individual then problems may arise and cannot be completed in given time period. Third is

uncertainty avoidance which means members feel anxiety when unknown and uncertain
situations arise in organisation. When globalisation took place in CAMECO it influence decision
making capacity of manager. Fourth is masculinity vs. femininity means there should not be
difference between male and female in organisation and both should be work together. Fifth
dimensions is long term vs, short term orientations which means associates connection of
current and futures challenges and actions. It is very important for CAMECO to work for
organisation in order to achieve goals of business. Last is indulgence vs. restraint which means
degree of freedom which is given to individual in order to fulfils their desires. The manager of
CAMECO should work as per organisation according to their comfort level. This model helps in
influencing globalisation in business (.Okeke, Onuorah and Jakpa, 2016).
Globalisation on Functions can positive as well as negative impact of globalisation on
business functions. Due to globalisation, there is high increased in competition because of
foreign investment. Greater awareness rise as need and demand of customer changes frequently
and prefer high quality products and services. Economies of scale can be gain by large
production as it is selling products in many countries. With rise in globalisation, there is
increased in merger and joint ventures as allowing for large market and associate advantage of
cost (Owolabi and Makinde, 2012). There are some negative impact which can provide to
CAMECO as fluctuation in prices arise in business because of competition. With rise in
globalisation, job insecurity in business occurs as firms outsource jobs to developing countries.
P4 Evaluate the influences of ethical and sustainable globalisation on organisational functions
There are various organisational functions which need to be carried out by CAMECO for
achievement of their goals and objectives. The influences of ethical and sustainable globalisation
on organisation functions are discussed here. When business operates in global level, there is
interaction of various culture in home country. According to ethical globalisation, it is very
important to treat each and every employees of CAMECO in fair way. There should be
employment promotion where worker should be provided with safety and security while they are
working in business. It is essential to match objectives of firm with ethical polices and rules to
meet reputation and job satisfaction. Ethical globalisation focus on maintaining business
relationship with others in order to supply goods and services to consumers. All working

department should interact with each other in ethical manner so that there should not be any
issues and problem arise in CAMECO (What Are the Functions of Ethics in Business, 2019).
Sustainable development are development of organisation that provide long term
benefits. This helps in making wider use of market, use of latest technology, managing link to
global economy and strengthening decision making (Slack and Brandon-Jones, 2018).
Sustainable globalisation influence all business functions of CAMECO. In order to grow
sustainability of firm, various elements should be ensured such as: improvement in quality of
services and relationship among suppliers. Another elements is improving human resources
management for organisational change. The sustainability of globalisation is not same for all
nations and directions. Here, some can experience improve good environment whereas other
deteriorating one. Thus, there is high influence of sustainable globalisation in CAMECO
organisation as various changes took place in firm that helps in achievement of goals and
objectives (How globalisation improves sustainability in organisations, 2019).
TASK 4
P5 Evaluate the different ways decision making can work effectively in a global context
There are various changes which took place in organisation due to which decision
making is influenced. The decision should be made according to changing world. Here, it is very
important to maintain direct relationship with business decision making. First factor is to accept
changes that is predictable whether in international or domestic market by business practitioners.
Nowadays, decision making should be based on modern techniques which is important for
business. In past days, internal factors indicate organisational performance and external
conditions as constant. It is very important for organisation to be aware of external changes in
terms of global, regional, national, state economic trends. In order to make decision at global
level, each and every factors within organisation should be understand by manager and leader
and work accordingly. The variable can be measurable and non measurable which impact
performance of enterprise in order to anticipate decision making. There should be relationship
among macro economic and key company variable for making effective decisions (Decision-
Making in a Global Environment, 2019)
In order to improve decision making in an organisation, following steps should be
considered. The first is improving setting which means meeting should be made for globalisation

in terms of focused agenda, current and detailed information, and others. This step should be
very clear by decision maker for achievement of final goals and objectives. Second step is use of
logical techniques where approach should be in purposeful and logical manner. All problem,
issues and data should be gather collectively in order to make better decision for future
perspective. Third stage is evaluate decisions and decision making patterns where evaluation
should be done on basis of attention and making teams and individuals effective to make
decisions. In globalisation, decision making pattern can be different from each other as it
depends upon size and structure of business. Last stage is determination of appropriate levels of
decision making where firm need to sure that decision making are at right level. In order to make
decision at global context, it is necessary to make effective level and made by manager and
expertise.
Apart from above, there are various elements of decision making in an organisation at
globalisation level. It includes problem context, problem finding and agenda setting. In order to
make any decision in business, it is necessary to make agenda so that goals and objectives can be
achieved. This helps a lot in business. If any situation arise in organisation, it is essential to make
effective decision so that work can be carried out in effective manner (Shi, Sun and Prescott,
2012).
For example, there is sudden change in taste and preference of consumer and
manufactured products need to be sold in market. In this scenario, it is very important for
manager to make effective decision which does not provide any loss to organisation. The already
manufactured goods should be sold in market with discount and offers so that maximum gain can
be achieved. After this according to new trends products should be manufactured for their target
consumer. In this scenario, if decision is made then it can create loss to business. In this way,
decision making affect organisation and its profit. Thus, it is recommended to firm to do proper
market research and work accordingly (DECISION MAKING, 2019).
P6 Determine and articulate the various routes to internationalisation and organisation may adopt
including key barriers
Internationalisation or foreign entry mode is the process in which organisation employs to
new market. There are various ways through CAMECO can enter into internationalisation which
are given below: first is licensing which means CAMECO can charge royalty or fee for use of
brand or technology. There are two parties involved in this entry such as licensor and licensee.

This has both advantage and disadvantages for CAMECO. Advantage can be creating
opportunity for passive income, opportunities for new business, reduction of risk for both parties
and easier way to entry into foreign market. This entry creates self employment opportunities for
individuals and provide freedom for developing unique marketing approach. Apart from pros,
some cons are chances for threat of intellectual properties. The user of license has dependency
upon licensor that add competition in market. The user has to pay huge amount which is valid for
certain period of time after that renew can be done. There is no guarantee of revenue and damage
reputation of parties using such license (Pathak, Hoskisson and Johnson, 2014).
Second entry is exporting which means process for selling goods and services produced
in one to another countries. CAMECO can easily adopt such exporting entry for their business to
supply products and services. This are some benefits of exporting such as increasing
competitiveness which allows to gain ideas, management techniques and practices and others.
CAMECO can easily increase sales through exporting goods and services. The increase in profit
is high as compared to other along with occurrence of low cost. There are various challenges
associated with exporting in terms of competition, cost, product modification, risk. In order to
export goods and services, there is high competition in market. The taxes imposed by countries is
different from each other which leads to increase in cost. There are various risk faced while
doing adopting exporting entry mode such as financial, transportation, cultural difference and
commitment (Scott, 2013). The above mode can be used by CAMECO for better result
achievements.
CONCLUSION
From above report it can be concluded that strategic directions are very important for
organisation to run their successfully and effectively in competitive market. Globalisation is the
process of integrating world into a single market. There are different key factors for increasing
global trade and commerce through cost, market, competition in order to achieve goals and
objectives. Before operating business in global context, PESTLE helps to make effective
decision for business. The globalisation influence structure, cost, governance and leadership as
according to theses factors decision making should be done in organisation. There is frequent
changes in firm which need to be accepted by each and every and decision should be made
accordingly. Different mode of entry at international level helps in achieving goal and objective

of business. In order to make decision in business each and every factors should be considered so
that work can be done effectively.

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