Global Business Environment Task 26

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.
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 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
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