Global business environment and strategic complexity Research Paper 2022

2019 UNIVERSITY OF SUNDERLAND HONG KONG
Global Business Environment
Assignment Title
Global business environment and strategic complexity
LEUNG SIN KI
(Student No.189130103)
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Running head: Business Globalization
Abstract
Globalization is the process of expanding the world’s economy, culture by expanding the
exchange of technology, goods and services and many others. This research paper is going to
analyze the impact of globalization in context of the Hong Kong based food industry.
Globalization gathers higher profit for the organization by enhancing its market presence and
reputation. However, there exists some internal and external organizational factors that might
create strategic complexities for the particular process. This paper is going to discuss the impact
of globalization on the structure, culture and decision making of the business.

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Table of Contents
Introduction......................................................................................................................................3
Globalization....................................................................................................................................3
Key factors driving towards globalization.......................................................................................4
Containerization...........................................................................................................................5
Technological change..................................................................................................................5
Economics of scale......................................................................................................................5
Differences in the tax system.......................................................................................................6
Less protectionism.......................................................................................................................6
Effective growth strategies..........................................................................................................6
Strategic complexities in operating in a global environment..........................................................7
SWOT analysis........................................................................................................................7
PESTEL analysis.....................................................................................................................9
Complexities of the international supply chain management........................................................11
Impact of global market on culture, structure and function of the organization...........................12
McKinsey’s 7S model................................................................................................................12
Influences of ethical and sustainable globalization on the organizational functions.....................14
Hofstede’s dimension of culture theory.....................................................................................15
Influence of business globalization on the strategy and decision making of the organization......17
Strategic Expansion Routes of Yummy Foods..............................................................................18
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Conclusion.....................................................................................................................................19
Reference.......................................................................................................................................21
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Introduction
The term globalization is mainly used for describing the emerging interdependence of the
world’s cultures, populations and economies that are brought about by the cross-border trade of
technology, information, investment, people, services and goods. Under this phenomenon
different countries have built efficient economic partnerships for facilitating these movements in
several centuries. According to Dunning (2014), globalization can be explained by the change in
the world where in which the individuals moving from the self-contained countries to an
integrated world. Globalization in case of business describes a business change of a firm that
associated with a particular country to one, which operates in several different countries.
Globalization, in recent days has become an important matter of concern due to the growing
demand of high tech technology and industry revolution around the globe; working globally,
business or the industries can have the potential capacity of making huge profits (Castello and
Ozawa 2014).
This report is going to give a broad description about the business globalization; the key
factors responsible for driving towards the globalization along with the strategic complexities of
globalization in context of the Hong Kong based emerging fast food chain named Yummy Food
Limited. The market opportunities and challenges for this business will be explained by
performing the SWOT and PESTEL analysis. Hofstede’s Dimensions of Culture will be also
discussed here for demonstrating the influence of globalization on this organization.
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Globalization
According to the information provided by Ghemawat (2017), broader than the concept of
international business, globalization explains a shifting toward an integrated economy, where the
world evidences exchange of ideas, beliefs and culture along with exchange of different
resources, goods and services. In a simpler term, the process of globalization indicates that the
world is getting smaller and due to the invention of new communication and transportation
technologies, individuals around the globe can geographically and virtually connect with each
other (Bond and O'Byrne 2014).Globalization, as explained by Velthuis (2013), is the spread of
technology, products, information as well as jobs across the national borders. Explaining it in
economic terms, the process explains an interdependence of different nations around the world
fostered by the free trades.
Mainly, globalization can be identified as a cultural, legal, political and social
phenomenon: Socially, this process leads towards a wider interaction between various
populations (Govil and Rashmi 2013). Culturally, it describes the interchange of artistic, ideas
and values, among various cultures. Legally, the process can be related to the process in which
international laws are created as well as enforced and politically, the process explains how to
shift attention to the intergovernmental organizations. Evolution of the recent economic systems
has enhanced the process of industrialization and created major financial opportunities for many
countries. Additionally, the government is also focusing on discarding the existing barriers
related to the trade and giving opportunities for promoting the international commerce (Kaynak
and Hassan 2014).
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