(PDF) The Global Business Environment
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Added on 2020-10-22
(PDF) The Global Business Environment
Added on 2020-10-22
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GLOBAL BUSINESSENVIRONMENT
Table of ContentsINTRODUCTION - ........................................................................................................................1TASK 1............................................................................................................................................11) Concept of globalisation - ......................................................................................................12) Driving Factors of Globalisation - .........................................................................................23) Impact of Digital Technology upon Globalisation - ..............................................................34) PESTLE Analysis of the organisation -..................................................................................35) Strategic challenges of organisation - ....................................................................................66) Factors to overcome these challenges:....................................................................................7TASK 2............................................................................................................................................71)Impact of globalisation on organisational structure, culture and governance and alsoapplying Mckinsey's 7S Model to illustrate an overview of organisation..................................72) Factors influenced by global operation in a global market and apply Hofstede's Dimensionsof culture to illustrated the impact of organisation - ..................................................................93) Ethical and sustainable factors that organisation has to consider in global market - ........114) Factors affecting in Decision making in Global Context - ..................................................125) Advantages and Disadvantages of strategic expansion routes of the organisation - ...........12CONCLUSION..............................................................................................................................13REFERENCE ................................................................................................................................14
INTRODUCTION - Globalisation is a process by which national and regional economies, society and culturebecome integrated through the part of global network, trade, commerce and transportation.CAMECO Canadian Mining and Energy Corporation company was formed in 1988. It is thefast growing energy and chemical company based in South Africa. Present study is based onCAMECO company, as new CEO has taken over the organisation and entering into the world ofglobalisation. This report includes the key factors such as cost, environment, market and competitioninfluencing the global commerce and trade. Further it describes the complexity of strategicchallenges faced by organisation when operating in a global environment and also relate thisstatement with PESTLE Analysis. This report also describes the points as how globalisationinfluence the market in application to appropriate theories and models relating to organisationalstructure, culture and function and lastly the different barriers in international business and thedecision making power work effectively in the global context.TASK 11) Concept of globalisation - Globalisation derived from the word globalize which means emerging the internationalmarket of the economic system. Globalisation in easier words means widening, deepening andspeeding up the global interconnection in terms of local, regional and national market.Globalisation is the social, political, legal and cultural phenomena as ~ Socially it gives opportunity to the company to interact with many people(Salvatore,2015).Politically globalisation has shifted its attention and changes to intergovernmentalorganisation like world trade organisation [WTO] and United nations [UN].Legally globalisation has discussed and altered the international law is created andenforced.Cultural globalisation express and represents the thought, ideas and values of theirculture.1
Thus, globalisation is resulted in increased international trade market; free moment ofcapital goods and services; greater dependence in the global economy and helps to create morewealth in developing countries(Hamilton and Webster, 2018)2) Driving Factors of Globalisation - The factors which influencing the company factors are cost, environment, market andcompetition and how company can overcome with these factors. A brief description about thesefactors influencing company ~1.Change in Technology – Technology is that thing which company amends timely tobring innovation in the market. As company adopts one change in form of telephonicconversation to digital satellite communication resulted in increasing informationnetwork. Company new and innovative technologies give a vast business to the companyas others companies want to connect to those companies who uses new technologies.2.Liberalization of cross border trade - After Liberalization, company can easilyexpand and reduce other tariffs barriers in terms of import tariffs which is a coreelement of globalisation. As in International Monetary Fund [IMF] CAMECO companycan easily import their services at low costs. CAMECO company examines that loweringof trade barriers included the attachment of national economies at global trade andservices(Virakul, 2015).3.Economics of scale – Lower transportation costs and lower communication costs are themain parts of the economies of the scale. Company can deal with more services becauseof lower in transportation cost Similarly with communication cost also, as the cost ofinternational and overseas costs rate reducing the last two decades which results in moreprofit in the market. 4.Political factors – The political factors in the organisation make globalisation a bigchallenger because the country which is strong in politics and which has their own rulesin that case CAMECO company has top make some other strategy to work in thatcountry because when there is political instability in the country, globalisation role isleast effective on that purpose(Gaspar and et.al., 2016).2
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