Global Business Environment Report

This report examines the global business environment of Cameco, a leading uranium company. It analyzes the concept of globalization, its driving factors, and the impact of digital technology. The report also includes a PESTEL analysis of Cameco, identifying key challenges and strategic recommendations for overcoming them. Additionally, it examines the company's structure, culture, and governance using McKinsey's 7S model and Hofstede's cultural dimensions. The report concludes with an analysis of Cameco's ethical and sustainable practices and its strategic expansion routes. This report is available on Desklib, a website that provides past papers and solved assignments for students.

Global business environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1)Concept of globalisation .........................................................................................................1
2)Driven factors of globalisation ...............................................................................................2
3) impact of digital technology upon globalisation.....................................................................3
4) Pestel Analysis of Cameco ....................................................................................................4
5) challenges of globalisation and strategic challenges..............................................................5
6)Recommendation for overcome the globalisation challenges................................................6
Task 2...............................................................................................................................................6
1.Structure, culture and governance of the organisation and McKinsey's 7 S model.................6
2. Influence of organisation through Hofstede's dimension of culture.......................................8
3. Ethical and sustainable factors of organisation.......................................................................9
4. ethical and sustainable factors affecting decision making....................................................10
5) strategic expansion routes of organisation and its advantages and disadvantages ..............10
CONCLUSION..............................................................................................................................12
REFERENCES ............................................................................................................................13
........................................................................................................................................................14

INTRODUCTION
Global business environment means the societal and cultural environment of the organisation
which are influenced by the global factors that includes political, environmental, social,
technological, economical and legal. The present study is based on Cameco company which is
engaged in development of refining, uranium trading, fabrication, mining, conversion and
electricity generation through nuclear energy in many countries across the globe (Adekola, and
Sergi, 2016). Further it also includes the concept and factor of globalisation and the digital
technology that impacts the globalisation. It also describes the culture, structure and the
governance of the organisation and the McKinsey's 7 S model. The Hofstede model of culture is
used to describe the influence on the operations of the organisation in the international market.
At last it explains the ethical and sustainable factors and the strategic expansion routes of the
Cameco company.
TASK 1
1)Concept of globalisation
Globalisation is the process of integration and interaction among companies ,people and
culture. Globalisation includes three aspect that are economic aspect , political aspect and social
aspect. Economic aspect of globalisation focus on trade of goods, services and resources across
the world that impact on economic growth of the country. Social aspect concentrate on exchange
of social and culture and political aspect focus on nation government policies and regulation
which is useful for protection of human right and maintaining the security all over the world.
Globalisation is useful for economic growth , expansion of business , provide social services to
people like health services and education etc.
globalisation play significant role in all over the world because -
 Globalisation leads to expansion of market and economic growth of the country.
 It helps to exchange of goods services , advance technology , skills , innovations and
ideas across the world that helps to increase economic of scale (Toubal, 2018).
 It helps to increase foreign direct investment so country can generate income
 globalisation create employment by establishing multi national services and providing job
to needed or skilled people.
1

 It encourage to trade that will increase competition over the world so companies try to
provide quality product at lower price ultimately it is benefit for customers and also
enhance awareness among customers.
 It helps to expand market and enable to effectively use of available resources. Through
globalisation company can compete competition and reduce monopoly profits and freely
trade goods and services across the world. Pressure of competition of globalisation helps
to improve governance activities.
But globalisation also have many drawbacks because it create trade imbalance among countries.
It create unemployment because globalisation promote advance technology for enhance quality
and productivity (Homann, 2016). It also effect on small scale companies because they are can't
compete with multinational companies and can't afford advance technology.
CEMECO company expand their business over the world wide that will help to enhance profit
and build reputation.
2)Driven factors of globalisation
various factors contributed to the process of globalisation that are-
 change in Technology – It is the main driven factor of globalisation. CEMECO company
adapt advance technology that helps to reduce transportation cost and increase
productivity at lower cost. company can compete with competitors and making huge
profit by selling product at the time of demand. Advance technology also reduce
communication cost so company can take effective decision for company's profits.
 Liberalization of cross border trade- usually restrict to exchange goods and service for
protect to its own business but mostly country government reduce restriction on exchange
of goods and services because people want a high variety of goods , services and
resources at a lower rate . These factor give freedom to establish to business into the own
country and abroad it can helps to generate revenue and sales of the product.
 Economic of scale- through the globalisation cost of operation of the company will
reduce.on the other hand company provide better quality product at lower cost that would
help to maximisation of the company (Petschow, and et.al.,2017). Company use advance
technology that will help to reduce labour cost and reduce wastage of product it will
increase productivity and reduce cost of the product . Globalisation contribute to increase
GDP of the country . CEMECO company have to make strategy for reducing the cost of
2

product that will helps in increase selling and generate profit. Lower cost and high
production leads to growth of the country because country can enhance export.
 Political factor- This affect the globalisation because country have stable rules and
regulation which affect to trade of goods services and resources. Government make
effective rules regarding taxation, accounting , minimum wages and also responsible for
all security. Strong rules and regulation helps to provide product at lower rate.
3) impact of digital technology upon globalisation
Advancement in technology have considerably facilitated globalisation. In fact
technological progress has been one of the main forces driving the globalisation. Technological
breakthroughs compel business enterprises to become a global by increasing the economies of
scale and the market size needed to break even. There is a strong impact of digital technology on
globalisation.
 Technological advancement reduces the cost of transportation and communication across
the nation, as Cameco is energy and chemical company and it need to large amount of
raw materials and has to deal with other nations as well (Regan, and.et.al., 2018).
Technology facilitates global sourcing of raw materials and other inputs.
 This technological changes effects the investments. It reduces the barriers of time and
place in business dealings. Buyers and sellers can now make transactions at any time and
any part of the globe.
 In today's world, customers, investors, shareholders, competitors all want to know about
the companies they interact with and purchase from. In order to build loyalty brand need
to be transparent, this particular have been done with the help of the digital technology.
Cameco is a fast growing company in across nation, so it need to be transparent that will
help the company to grow more and expand their business across nation.
 In essence, to achieve digital success, businesses across industries need to be aware of the
pace of the change and invest in learning and development. Through the technology it
becomes easy that before expanding their business and before investment they can know
about the current market changes and environment.
 It is a great impact of technology on globalisation that it change the quality of production,
goods and services and method of production.
3

 This technology is easily transferable where high tech production can be combined with
low wages that increases the production and business can grow more in the global market
world.
 Digital technologies are transforming globalisation is through the creation of online
platforms that facilitate cross-border exchanges of goods, services, money, and even
labour
4) Pestel Analysis of Cameco
Political Factors
This includes government policy, political stability,corruption,labour laws etc. Cameco is
working with many different countries and all countries have their own government policy so if
in any country the political condition is not good then it will affect the trading for Cameco.
Corruption also affect the working of the company (D'Silva, and Webster, eds., 2017). Changes
in tax policy of the country will lead to huge loss for the company because of decreasing foreign
trade.
Economic Factors
These include Inflation rate, interest rate, exchange rate etc. At the time of inflation the
prices of products gets higher which will impact on purchasing power of the consumer ultimately
it will impact on the sales of the company. Changes in exchange rates will affect the export and
import of goods from other country. If the political condition of the country is not normal then it
will impact on the GDP rates of the country.
Social Factors
This represents the demographic characteristics, customs,values,lifestyle etc. Advertising
plays an important role in influencing people to buy a particular product or not. Word of mouth
also influence the reference groups for purchasing which will affect the sales of the company.
Sometimes gender roles also influencing the decision in the family which will directly impact on
the Cameco company. As liberalisation is increasing the attitude of the consumer also changes
which will affect the company's operation.
Technological Factors
Cameco have to spent its money on research and development because it plays an
important part for the company to know about the latest technological changes in the market.
Latest technology implemented by the competitor of Cameco will affect the working of the
4

company and also increases operational cost for the company (Short, 2016). Due to changes in
the technology the supply chain management of the company also influenced. Marketing
department have to keep suppliers happy.
Environmental Factors
This includes ecological and environmental aspect like weather,climate environmental
balance etc.Environmental scanning affects the operations of the Cameco company. As seasonal
change in the environment would affect the normal functioning of the company.
Legal Factors
This includes laws such as discrimination,employment, consumer protection and health
and safety laws. As Cameco is uranium company it will have to follow all the safety rules of the
country so that it will not harm the environment. Business laws that the country follows will also
impact the company. Use of unreserved copyright or patent will affect the goodwill of the
Cameco company.
5) challenges of globalisation and strategic challenges
 Economic conditions of the country is a major challenge for any organisation to standup
their business in new country. As Cameco is energy and chemical industry which require
a large amount of financial support from the government of that country, if there is p[oor
economic condition of that country, cameco can not setup and expand their business.
 Public image and branding are critical components of the most businesses. Building these
relations potential in a new geographic region in an enormous challenge (Hamilton, and
Webster, 2018). For Cameco its challenge to building brand image in new geographic
region.
 Every nation has a unique laws and regulations governing business. These laws and
regulations can affect the Cameco's marketing strategy and plans thereby its business may
fall down. So the Cameco organisation need to access to legal expertise help them to
help them understand in in-country laws and comply with applicable regulations.
 The level of technology development of a nation affects the attractiveness of doing
business there, as well as the type of the operations that are possible. Company like
Cameco which need technology to produce energy or chemical, may encounter a variety
of technological challenges doing business in foreign countries, such as training worker
5

on unfamiliar equipment, poor transportation system that increase production and
distribution cost, poor communication facility etc.
6)Recommendation for overcome the globalisation challenges
Following recommendation will help to overcome from these challenges
 International expansion will help in overcome from these challenges as development of
different business units in the company to manage operations of the company (Tallman,
and et.al., 2018). By investing in the different sectors of the company can grow and earn
profits.
 By building good public relations with the customers and developing a brand image
which help to overcome from these challenges. Increasing brand portfolio will also help
Cameco to overcome from these challenges.
 Leadership plays an important part in any company there will be a leader in the company
with appropriate knowledge and skills which can guide the employees and helps to
empower employees to do work effectively and efficiently.
 It is important for the company to understand the rules and regulations of the country
before entering into the market if the company will follow it will beneficial for it.
 If the Cameco adopt the advance technology which the country is using already it will
help to overcome from the problem to survive in the market easily.
 By providing better services to customer which is useful for them then company can
overcome the challenges and create opportunities.
 Company should have to make effective strategy for build image in the market or over
the world so that would increase in profit and help to overcome the new challenges.
Task 2
1.Structure, culture and governance of the organisation and McKinsey's 7 S model
 Cameco company follows the tall organisational structure as the major decisions
in relation to strategies for the operations are taken by the top executives and then the
decisions are communicated to the upper and the middle level management leaders who
build methods to convert the goal into reality.
 The company follows the workplace and safety culture where they believe that the
employee has full right to work in a respectful and positive work environment with
proper safety (Kim, 2018). As the company is a chemical company so the workers deals
6

with the safety sensitive work so they take appropriate care and measures towards any
uncertainty.
 As governance Cameco company ensure the framing of the necessary documents for
achieving their goals, vision, objectives and strategies and the related documents that are
needed for the approval. They also oversee that the implementation and the compliance
is as per the system which includes that the employees are functioning in accordance
with the social and ethical factors or not. Ensuring integrity and dignity of the internal
control of the corporation, high safety standards, full disclosure and financial reporting
as per the laws and legislations.
 McKinsey's 7 S model:
 Strategy- the strategy of the cameco company is set in relation to the challenging
environment in which they provide strong way to long-term foundations driven through
increase in population and higher demand of electricity (Egbuta, and Gilbert, 2018). It
uses nuclear energy that facilitates the power affordably and safely without air pollution
so that sustainable economy can be developed.
 Structure- they follow vertical structure where the information, strategies and the vision
flows from the top leaders to the management level and accordingly the implementation
of the strategies are done for driving to the vision.
 Systems- the managers of the Cameco company assigned the task to their subordinates
and instructs and directs them to function in the way it is guided so that the workers are
well clear about the tasks and the expectation of the superior and performs efficiently as
per the standards.
 Shared values- this company strives for bringing several nuclear energy benefits across
the world. They shared a business of making money with the ecological and healthy
environment.
 Style- Visionary leadership style is established in the organisation that mobilize
employees to perform in accordance to the vision.
 Staff- Cameco has the staff with excellent skills and are knowledgeable which enables
the organisation in achieving the goal efficiently and as per the standards set
(Klepac, and Berg, 2019). They appoint right person at the right job so that the work get
completed on time with quality.
7

 Skills- the company ensure timely review of the performance of the employees that they
are working with the skills set or not and if there exists the skill gap then they take
appropriate steps for outsourcing and recruitment to fill the gap.
2. Influence of organisation through Hofstede's dimension of culture
The McKinsey's 7 S model has influenced the operations of the Cameco as it operates
worldwide so the strategy of challenging environment enables the organisation in functioning
effectively and efficiently in today's changing environment and can overcome the hurdles that
hinders the growth of the firm. As it follows the tall structure so it becomes easy for the
corporation to expand its business globally because the decisions and visions are set by the top
leaders and communicated to the managers for performing the task accordingly so that there exist
the clarification within the work environment and could function its operations smoothly (Cox,
and et.al.,2018). The shared values that Cameco delivers influences the operations positively as it
strive towards the ecological and sustainable environment and the company can perform its
operations across the world ethically and sustainably. The visionary style enables the firm in
reaching to the set visions with skilled and specialised staff in the international market and can
diversify its operations across the globe.
 The Hofstede's dimensions of culture includes 5 phases that influence the
operations of the organisation.
 Low power distance v/s high power distance- It means the degree of existence of
inequality which is accepted by the people having power and people without power.
Cameco company has high score on the power distance index that means there exist the
high power distance which leads to respectful and centralised hierarchical level. On the
other side lower score of the PDI reflects the low power distance in the firm.
 Individualism v/s collectivism- this cultural dimension indicates the tie of the mutual
understanding among individuals within the community. This company has achieved a
high score in this as the workers and the managers do not share the responsibility and
value for the time of the people. Staff works hard for getting the reward that leads to
smooth and effective operations of the enterprise (Cox, and et.al.,2018). On the other
hand low score indicates high collectivism among the individuals which leads to sharing
the work within the community exist.
8

 Low avoidance of uncertainty v/s high avoidance of uncertainty- Cameco achieves
low score in avoidance of uncertainty because they accept the uncertain events and has
the courage to take risk against any change and initiate towards the new events so that
the organisation does not get affected and keep growing in this changing and competitive
environment. While, the company with high score has the habit of avoiding the uncertain
situations.
 Short term v/s long-term orientation- the corporate has considered to be low scored in
this phase as they drive towards the innovation and creativity and participate innovative
ideas and implement and execute such plans so that they could strive towards the new
technology which helps the company in reaching the leading position in the market.
High score hinders the growth of the organisation as no creative ideas are participated at
the workplace.
3. Ethical and sustainable factors of organisation
 It is essential for every organisation to function in accordance with the ethical and
sustainable factors. Some of these factors are as follows-
 Respect&Honour- Cameco facilitate a respectful work environment where all the
people respects each other and perform their task so that a feeling of dignity can be
created among the individual and due to that they could perform to the best of their
potential. This corporation rewards the best performers and appreciate the employees
who performs their task beyond the target so that they work with full motivation and
high morale that leads to increase in the growth and profitability of the business.
 Risk-taking- Cameco company thrive and grow by taking the risk. It adopts and
innovates new things so that they could re-invent something new (Cox, and et.al.,2018).
They attract those employees that has the willingness to take risks and encourage them
for the risk taken.
 Corporate Social responsibility- It is the ethical responsibility of the company to
contribute towards the society and to fulfil this responsibility it provides a pollution free
environment to the society and provide electricity at reasonable price so that low income
people can avail the services.
 Sustainable manufacturing activity- Reducing wastage by recycling is a sustainable
production practise that is used by the firm which acts as a positive sign for the
9

corporation in relation to the environmental policy as it minimises the cost and
maximizes the ecological balance of the environment in the global market.
4. ethical and sustainable factors affecting decision making
The ethical and sustainable factors affects the decision making as-
As cameco operates on a global scale so it has to perform its ethical and sustainable
responsibility in adequate manner so that it could take decisions effectively. If the company does
not contribute to society then it cannot be able to build its image in the international market so it
is important for the organisation to take necessary decisions regarding the corporate social
responsibility (Shaqrah, 2018). Practises like sustainable manufacturing enables the organisation
in making logical decisions regarding the raw material and the other resources which leads to
optimum use of resources with profit maximisation. For rewarding and honouring the employees
it is essential that the firm should use performance management through which it can take the
decision correctly in relation to the best performer or the top achievers of the business. Through
integrity in the work environment an enterprise can make decisions more deliberately by
organising and defining the alternatives and choosing the best from those alternatives. For
making decisions regarding innovating and creating a new product it is essential that the
employees are willing to take risk so that challenging decisions can be taken by the enterprise.
5) strategic expansion routes of organisation and its advantages and disadvantages
Cameco company plans to grow their business by increasing in sales level and profits. All
companies implement expansion strategy for expand their business for surviving in the market.
organisation expand their strategy by market development , market development , product
development and through diversification .
Market development – Cameco company adapt market development strategy for expand
their business. In this strategy company identify new market segments for selling the existing
product of the company (Shiri, and et.al., 2015). company want to increase sales level and
current market by new users. Company can be change current product and its packaging for
selling in the existing market.
These expansion of strategy helps to increase in market segment , customer retention and
make new customer base. This strategy also helps to increase in sales and share of the market
that will help to profit maximisation and growth of the company.
10

Market penetration – Cameco company also adapt market penetration strategy in which
company want to sell their existing product in existing market. Effective strategy helps to
increase in sales in current / existing market. This strategy maintains and enhance market share
from the existing product and company able to boost the usage of product by its existing
customer So Cameco company can increase market share through existing product and existing
market.
Diversification- this strategy is important for all business. Cameco company produce
new product and sell into the new market. Diversification strategy become more risky when
company do not take research about the market and needs of the customers. But Cameco
company adapt this strategy for growth of the company and diversify product according to
geographically.
Advantages of strategic expansion-
New market- Through strategic expansion company can enter into new markets and can grab the
large customer base so that profits of the company can be increased and they could gain the large
market share.
Competitive advantage- international business enables the company in reaching the competitive
position in the market and can gain the edge against its competitors so that the goodwill of the
company can be enhanced and it could lead to well known global presence.
Disadvantages of strategic expansion-
Financial challenges- for expansion Cameco has to look on to some major important financial
investment that has the chance of converting into losses if the entity does not go with the
obligations. This lead to a limitation for the organisation as it can suffer a huge loss and lack of
funds.
Employee turnover- with the expansion of the business globally it becomes essential for the
company to recruit and train the employees because skills of the employee does not grow with
the expansion of the firm which leads to increase in the cost of the entity.
11

CONCLUSION
From the above report it is concluded that it is important for every corporation to efficiently
address the factors of global business environment so that organisation can raise its standard of
living in the international market and could increase the export sales at a wide market share.
Through global business environment company can build better international relations in the
market and can customers get import benefits by getting products at lower price. Operating
business globally could lead to achieve competitive position in the challenging environment. As
Cameco company is functioning in an international market so it could gain the opportunity for
investment in the foreign market and can take the benefit of the currency exchange rate.
12

REFERENCES
Books and journals
Adekola, A. and Sergi, B.S., 2016. Global business management: A cross-cultural perspective.
Routledge.
Channon, D.F. and Caldart, A.A., 2015. McKinsey 7S model. Wiley encyclopedia of
management. pp.1-1.
Cox, A.M. and et.al.,2018. Extending McKinsey’s 7S model to understand strategic alignment in
academic libraries. Library Management.
D'Silva, J. and Webster, J. eds., 2017. The Meat Crisis: Developing More Sustainable and
Ethical Production and Consumption. Routledge.
Egbuta, I.C. and Gilbert, L.L., 2018. Problems Financing Small Business Enterprises in the
Current Economic, Business, and Organizational Environment in Nigeria: With
Recommendations for Future Support Initiatives. In Financial Entrepreneurship for
Economic Growth in Emerging Nations (pp. 111-128). IGI Global.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Homann, K., 2016. Globalisation from a business ethics point of view. In Globalisation and
business ethics (pp. 15-22). Routledge.
Kim, H., 2018. Assessing The Global Nonmarket Environment: The Political And Social
Environment In The Global Business Environment. International Journal of Business and
Management Invention.7(7).p.33.
Klepac, G. and Berg, K.L., 2019. Proposal of analytical model for business problems solving in
big data environment. In Web Services: Concepts, Methodologies, Tools, and
Applications(pp. 618-638). IGI Global.
Petschow, U. and et.al.,2017. Governance and sustainability: New challenges for states,
companies and civil society. Routledge.
Regan, Á. and.et.al., 2018. Ethical, moral and social dimensions in farm production practices: a
segmentation study to assess Irish consumers’ perceptions of meat quality. Irish journal of
agricultural and food research.57(1). pp.9-14.
Shaqrah, A.A., 2018. Analyzing business intelligence systems based on 7s model of
McKinsey. International Journal of Business Intelligence Research (IJBIR).9(1). pp.53-63.
13

Shiri, S. and et.al., 2015. Identifying and prioritizing of readiness factors for implementing ERP
based on agility (extension of McKinsey 7S model). European Online Journal of Natural
and Social Sciences: Proceedings. 4(1 (s)). pp.pp-56.
Short, S.D., 2016. Building an Ethical and Sustainable Model for Health Professional
Recruitment. In Health Workforce Governance (pp. 63-78). Routledge.
Tallman, S. and et.al., 2018. Business models in global competition. Global Strategy
Journal.8(4). pp.517-535.
Toubal, F., 2018. Comment–The impact of globalisation and technology on local labour
markets. Economie & Statistique. (497-498). p.145.
online
Global Business Environment.2018.[online].available
through<http://www.icmrindia.org/courseware/Global%20Business%20Environment/
Global%20Business%20Environment.htm>
McKinsey’s 7-S Framework.2019.[online].available
through<https://www.managementstudyhq.com/mckinsey-7s-framework.html>
14