Thought Leadership Article : Competing in a Global and Complex World

This is an assignment brief for a Higher National Diploma in Business (Business Management) course. The student's name is BUI THI THU PHUONG (ELSIE) and the unit is Unit 25: Global Business Environment. The assignment is titled "Thought Leadership Article – Competing in a Global and Complex World" and is due on 23 October 2022. The submission should be in the form of a thought leadership article with a recommended word count of 2,000-2,500 words. The article should analyze the key factors that drive globalization and determine the strategic complexities associated with operating in a global environment. The student will develop transferable skills such as commercial acumen, digital literacy, and communication. The vocational scenario involves working as a Global Strategy Analyst for McKinsey & Company, a global management consultancy firm. The assignment activity involves drafting an article for the company's business journal, Global Business Quarterly, addressing the complexities associated with operating in a global environment.

Higher Nationals
Assignment Brief – BTEC (RQF)
Higher National Diploma in Business (Business Management)
Student Name/ID Number BUI THI THU PHUONG (ELSIE)
Unit Number and Title Unit 25: Global Business Environment
Academic Year 2022 – 2023
Unit Assessor Ms Phuong-Thao Nguyen
Assignment Title Thought Leadership Article –
Competing in a Global and Complex World (AB 1 of 2)
Issue Date 30 August 2022
Submission Date 23 October 2022
IV Name
Date
Submission Format:
The submission is in the form of a ‘thought leadership’ article that makes reference to contemporary
examples, case studies and images The article should be written in a professional format, making use of
appropriate headings, columns, bullet points, titles, subtitles and charts. Citations and a bibliography using
the Harvard system (or an alternative system) should be given. Inaccurate use of referencing may lead to
issues of plagiarism if not applied correctly.
The recommended word count is 2,000–2,500 words, although you will not be penalised for going under or
exceeding the total word limit.

Unit Learning Outcomes:
LO1 Analyse the key factors which drive globalisation.
LO2 Determine the strategic complexities associated with operating in a global environment.
Transferable Skills and Competencies Developed:
 Commercial acumen based on an awareness of the key drivers for business success
 The ability to analyse and evaluate a range of business data, sources of information and
appropriate methodologies
 Strong digital literacy
 Articulating and effectively explaining information
 Communication and listening, including the ability to produce clear, structured business
communications in a variety of media.
Vocational Scenario:
Organisation
McKinsey & Company is a global management consultancy firm which have European headquarters
based in London, Asian headquarters in Singapore and Hong Kong, and Americas headquarters in Sao
Paulo. The business was founded in 1926, it works across private and public sectors, and counts
numerous ‘blue-chip’ companies as clients. Its mission statement is ‘To help our clients make significant
and lasting improvements to performance in a global, digitalised world’. Annual turnover for the
organisation, broken down by region, is:
Europe – £55 m
Asia and Africa – £20 m
Americas – £80 m
China – £35 m
The business aims to support and help its clients grow and build capabilities and leadership skills at every
level, especially in the areas of digital and ecommerce. The focus is on working with organisations that
want to expand their global reach and manage the challenges and complexities that result from operating
in an international and global context. Typical consultancy projects take between one to six months. One
Senior Partner is attached to the projects, together with an Engagement Manager and two or three
Business Analysts.
The company publishes a business journal Global Business Quarterly – a ‘thought leadership’ publication
that offers an insight on existing and prospective clients.
Role
You have recently joined the organisation as a Global Strategy Analyst, and you have been working on a
range of consultancy projects with large FTSE350 UK-based businesses that want to expand and develop
globally. Your role involves extensive quantitative and qualitative research in order to conduct market

analysis and identify growth opportunities, building rapport with internal and external stakeholders to
ensure that projects are delivered on time.
Assignment Activity and Guidance:
On the basis of your experience to date, your Senior Partner has asked you to draft an article that will
feature in the next edition of Global Business Quarterly journal.
The aim of the article is to address the complexities associated with operating in a global environment. As
part of this, you will need to analyse the key factors that are driving globalisation. The journal is distributed
to existing clients and is also used as a promotional tool to attract new and potential clients.
You are required to research and produce the journal article, it should include the following.
 An introduction to the concept of globalisation.
 An analysis of key factors that drive globalisation and trade, with reference to cultural, economic,
political and social dimensions, and the complexities this necessitates.
 A critical analysis and evaluation of the impact that these factors have on the business
environment in terms of opportunities and challenges.
 Evaluation of the impact of digital technologies on globalisation and the role of innovation.
 Recommendations on how organisations can respond to, and thrive in, a globalised, digitalised
world.
The article should include contemporary examples, as well as reference to relevant academic theory and
models.
Recommended Resources
Please note that the resources listed are examples for you to use as a starting point in your research – the
list is not definitive.
Weblinks
Entrepreneur. How to Take Your Company Global. Available at:
https://www.entrepreneur.com/article/159252
Inc. 6 Tips for Writing Compelling Thought Leadership Articles. Available at:
https://www.inc.com/entrepreneurs-organization/6-tips-for-writing-compelling-thoughtleadership-
articles.html
World Business Culture. How to do business worldwide. Available at:
https://www.worldbusinessculture.com/
Velocity Global. Global case studies, videos and reports. Available at:
https://www.velocityglobal.com/resources
HN Global (2021) Reading Lists. Available at: https://hnglobal.highernationals.com/learningzone/reading-
lists
HN Global (2021) Student Resource Library. Available at:
https://hnglobal.highernationals.com/subjects/resource-libraries
HN Global (2021) Textbooks. Available at: https://hnglobal.highernationals.com/textbooks
Journal articles
John Cantwell (2017) Innovation and international business, Industry and Innovation, 24:1, 41-60, DOI:

10.1080/13662716.2016.1257422: https://doi.org/10.1080/13662716.2016.1257422
Fred Hu and Michael Spence. (2017). Why Globalization Stalled and How to Restart it, Foreign Affairs.
Mukherjee, Sonia. (2018). Challenges to Indian micro small scale and medium enterprises in the era of
globalization. Journal of Global Entrepreneurship Research. 10.1186/s40497-018-0115-5
Textbooks
Bartlett, C. and Beamish, P. (2018). Transnational Management: Texts, Cases, and Readings in Cross-
Border Management. 8th Ed. Maidenhead: McGraw-Hill
Daniels, J. D., Radebaugh, L. H. and Sullivan D. P. (2018) International Business Environments and
Operations. 16th Ed. Harlow: Pearson
Peng, M. (2016) Global Business. 4th Ed. Cengage Learning
Pearson Education 2018
Higher Education Qualifications
Assignment Brief

Learning Outcomes and Assessment Criteria
Learning Outcome Pass Merit Distinction
LO1 Analyse the key
factors which drive
globalisation
P1 Analyse key factors
of cost, market,
environment and
competition that drive
global commerce and
trade.
M1 Critically analyse
the impact that key
factors have upon the
global business
environment in terms of
benefits and
challenges.
LO1 & 2
D1 Critically evaluate
the global business
environment, including
the opportunities and
challenges faced by
organisations.
LO2 Determine the
strategic complexities
associated with
operating in a global
environment
P2 Examine the
complexity of strategic
challenges faced by
organisations when
operating in a global
environment,
supported by specific
examples.
M2 Evaluate strategic
challenges in context of
risk and diversification
strategies and the
supply chain flow.
Pearson Education 2018
Higher Education Qualifications
Assignment Brief

STUDENT ASSESSMENT SUBMISSION AND
DECLARATION
When submitting evidence for assessment, each student must sign a declaration confirming
that the work is their own.
Student name:
Bui Thi Thu Phuong (Elsie)
Assessor name:
Ms Phuong-Thao Nguyen
Issue date:
30-Aug-22
Submission date:
23-Oct-22
Submitted on:
Programme:
Pearson BTEC Level 5 Higher National Diploma in Business (Business
Management)
Unit:
Unit 25: Global Business Environment
Assignment number and title:
GBE1: Thought Leadership Article – Competing in a Global and Complex World
(1 of 2)
Plagiarism
Plagiarism is a particular form of cheating. Plagiarism must be avoided at all costs and
students who break the rules, however innocently, may be penalised. It is your
responsibility to ensure that you understand correct referencing practices. As a university
level student, you are expected to use appropriate references throughout and keep carefully
detailed notes of all your sources of materials for material you have used in your work,
including any material downloaded from the Internet. Please consult the relevant unit
lecturer or your course tutor if you need any further advice.
Student Declaration
Student declaration
I certify that the assignment submission is entirely my own work and I fully understand
the consequences of plagiarism. I understand that making a false declaration is a form
of malpractice.
Student signature: Phuong Date:

Higher Nationals -Assignment Feedback Form
Student Name/ID Bui Thi Thu Phuong (Elsie)
Unit Title Unit 25: Global Business Environment
Assignment Number 1 of 2 Assessor Ms Phuong Thao Nguyen
Submission Date 23th October, 2022 Date Received 1 st Submission
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Table of Contents
Introduction............................................................................................................................1
Overview of the company.........................................................................................................2
Driving factors of globalization...............................................................................................4
Challenges of of these factors on the Milensea corporation.....................................................8
The influence of digital technology..........................................................................................9
Recommendation...................................................................................................................10
Conclusion............................................................................................................................11
Works Cited...........................................................................................................................12

Introduction
The potential of globalization is being fully tapped by international organizations. They are
expanding and concentrating on overseas markets in order to boost their financial growth and
market share. As the company expands, there are many challenges and obstacles to overcome.
In addition to a discussion of the main drivers of globalization and their impacts on the business
environment in terms of challenges and possibilities, this article discusses the difficulty of
functioning in a global setting.
This paper will go at the foundations of globalization and also provide a globalization concept.
Itwill also feature a PESTLE view of the organisation and a discussion of digital
technology'sserious influence on globalization. An introduction of globalization
problems as well as thestrategic issues experienced by the chosen corporation. Finally, it
will offer recommendations for how the organization might overcomethese challenges.

Overview of the company
McKinsey & Company, founded in 1926, is a multinational management consulting firm that
works with corporations, governments, non-governmental organizations, and nonprofits.
McKinsey and Company assists their clients by helping them improve their performance and
create critical goals. McKinsey acts as a business advisor or as an employee coach. McKinsey
and Company is a member of the "big trio" of management consulting firms and is well-known
throughout the world for its services.
McKinsey paid out more than $600 million in 2021 for his part in the drug crisis. According to a
New York Times article, McKinsey is being investigated for advising Purdue Pharma on how to
"accelerate" its opioid sales.
During our country's opioid epidemic, McKinsey advised PurduePharma on how to increase
sales of the narcotic medication Oxycontin. In addition to assisting the corporation in promoting
medicine sales, McKinsey advised Purdue Pharma on how to deal with drug enforcement limits.
Along with the monetary settlement, McKinsey was barred from working with additional
addictive medications, revealing any conflicts when bidding for state contracts, and making
documents linked to opioid activity public.

Driving factors of globalization
1. What is globalization?
As cultural and economic systems collide, globalization is fueled. The connection,
integration, and interdependence of nations are encouraged and strengthened by this
convergence. The globe grows more global when nations and regions become more
interconnected on a cultural, political, and economic level. (Lutkevich, 2022)
Globalization might be considered as a huge network of interrelated economic, cultural,
social, and political processesthat spread beyond national borders. Even this, it acknowledged
that "globalization isnot a policy option, but a fact that policymakers must confront."
2. Forces driving globalization
The four fundamental forces behind globalization are markets, governments, costs, and
competition. The fundamental circumstances for the possibility of globalization across
industries are influenced by these external influences, which are extremely unexpected by
individual enterprises. (UKEssays, 2018)
 Market Drivers
The market driving factor is one of the forces for globalization everywhere. Due to the
marketing of more or less standardized services, chances for scale are created as a result of
the increased market presence of similar customer wants and tastes.
For instance, supply chains are progressively moving in the direction of a more contemporary
path with the help of digitization and information technology, comparable demands in the
area of digital and e-commerce. The e-commerce industry is growing more active, offering

new prospects from market demand based on changing consumer purchasing patterns, such
as migrating from conventional shopping habits to acquiring items through e-commerce,
particularly in the context of the COVID-19 pandemic. (MOIT, 2021)
As needs continue to converge, global customers have emerged. Big firms like
DuPont,Boeing, and GE demand the same degree of quality from either the purchase of
supplies,independently of where they are purchased. Global distribution channels are
growing innumerous industries to meet the needs of an increasing wide variety of consumers,
result ina convergence of needs. Finally, as customer experience becomes more
homogenized, global branding and marketing will become more critical to global success.
 Government Drivers
The government initiative is the next factor. A corporation must satisfy the standards of the
governments of the nations where it plans to conduct business in order to function on the
global market. Tariffs, non-tariff barriers, trade policy liberalization, subsidies to domestic
businesses in the target nation, ownership limitations, monetary discrepancies, capital
barriers, and consistent technical standards across all industries are only a few examples of
obstacles.
This diversification of significant strategy exemplifies a competitiveness but real shift in the
power balance between national government and large corporations, then it is likely to have
significantimplications for how plan and regulatory disparities global arerectified in the
foreseeable future.
 Cost Drivers
The cost drivers are discussed in the section that follows. The first is to support scale
economies. The production of goods in huge amounts or volumes is referred to as having
economies of scale. Gaining economies of scale lowers costs, especially if there are
substantial development costs. The economic health of the nation, logistics costs, and any
other cost components associated with manufacturing and operations management that vary
by nation are additional cost variables. Because they affect investments and further
globalization, the firm must take all of these factors into consideration. Additionally, there
may be chances for cost reductions in international operations due to variations between
nations. The true outcomes include lower consumer costs, easier access to finance for

wealthy nations, easier access to employment for underdeveloped nations, more competition,
and higher global productivity. (Yip, 1995)
 Competitive Drivers
Opportunities for globalization are also produced by the competitive dynamics of
globalization. Globalization is seen in this context as an integrated worldwide strategy rather
than a just international one. By encouraging activity interdependence between nations,
globalization fosters the development of global networks. Competitors are under pressure
from globalization to use their rivals' techniques. This boosts the competitiveness and
advantage of multinational corporations. (Yip, 1995)
Theopportunity for economic globalization is strengthened given high levels of trade,
competitivecomplexity, and interconnection. Industry expansion would also be a factor.
Competitors willadapt to the changes in the industry's primary characteristics in order to
maintain and increasetheir competitive edge. This can sometimes facilitate the globalization
of organizations. Theglobalization cycle can also be reversed, as in the example of the global
major appliancecompany.
3. PESTLE Analysis about company
o Political
Political globalization is the term used to describe the growth and development of political
ties globally. In "The Political Dimension of Globalization," a number of crucial political
issues are revealed, including how these processes affect the concept of state sovereignty, the
expanding power of intergovernmental organizations, the prospects for future global and
regional governance, global migration patterns, and environmental regulations that affect our
planet. (Steger, 2017).
Politics has a big influence on brands; it has a very strict set of laws and regulations that
businesses must follow to stay in business. In addition, they must adhere to strict criteria of
not using any harmful drugs in their merchandise. More aware of political developments and

they can access information quickly over the internet. People are more likely than ever to
support businesses that have a percentage of their own value.
o Environment
The brand's sustainability goal is to achieve environmental sustainability. They also
significantly reduce CO2 emissions during the manufacturing process. The company
enhances this engagement by staying in constant communication with all of the brand's
stakeholders in order to collaborate on greener. As part of their 10-year sustainability plan,
they are undertaking studies to identify methods to minimize their total impacts by 2030.
They also intends to promote the use of these environmentally friendly materials.
o Economic
Low-income or fluctuating-income countries are always a concern. McKinsey, like all other
businesses, has been impacted by the Covid-19 crisis. Despite the fact that their purchasing
pattern has changed significantly throughout the crisis, they were able to increase sales by
5% in the second half of 2020 thanks to their good performance and commitment. The
brand's impeccable internet presence was a key factor in their success during these attempts.
Thanks to the clever use of the growth of internet channels, e-commerce has worked wonders
for them.
o Social
In terms of how it affects people's everyday lives, work, families, and society, this is referred
to as the social component of globalization. The effects of globalization on employment,
working conditions, income, and social protection are frequently discussed as concerns and
issues. The social component outside of the job includes aspects such as safety, culture,
identity, inclusion or discrimination, as well as family and community harmony.
People are more beauty conscious than ever, especially on social media platforms. Makeup is
the biggest fashion trend that never really gets boring. Although they currently claims to be a
vegan company, meaning that their product formulations are purely animal products, the term
vegan in the brands goes even further, the ingredients. must include testing of new goods on
animals.
o Technology
McKinsey's current focus is on combining green science and digital devices in order to
provide evolutionary and sustainable technology developed with the support of cutting-edge
research and technology. It also allows consumers to try treatments before they buy.

Individuals interested in in-depth diagnostics can also get tailored solutions through them.
"Perso's Smart Skin Care" is one of the most technologically advanced. While makeup
functionality would be considered acceptable, the tool can effectively suggest custom skin
care products, lipsticks, and foundations on the scene. This widget is integrated into an
application where you can enter your specific information. It allows you to determine the
level of pollution you are facing, your skin condition (pigmentation, fine lines, wrinkles, etc.)
treatment is right for you. In fact, you can send a photo of your face to the app to get an AI
diagnosis of your skin condition and the necessary remedial action.
Challenges of of these factors on the global corporation
 Employee Immigration Management
Immigration causes a lot of problems, which is why tech leaders in the United States and the
United Kingdom list it as one of their top difficulties. Immigration regulations change
regularly, and acquire for foreign national employees in some areas can be extremely
challenging. The United States, in particular, is growing more stringent in awarding visas,
raising concerns about the prospects for immigration to the United Kingdom.
 Tariffs and export charges are incurred
Import tariffs and export fees are another issue raised by both US and UK IT executives in
the evaluation, which is a barrier to their global operations. Buying products for sale in
another region can be expensive depending on the market.
 Payroll and compliance challenges
Another big impediment to worldwide expansion is managing international payroll and only
being compatible with employment changes and taxes. This management effort becomes
much more challenging when you try to operate a business in different markets.

The influence of digital technology
Digital technology has advanced more quickly than any earlier inventions. The
worldwide movement of ideas, people, money, and materials is improved by digital technology
and is now quicker and more frequent than before. Interaction between global economies,
governments, and cultures is beneficial. Numerous technologies are developing in a variety of
ways. By improving connection, including financial, access to trade, and governmental services,
technology may be an excellent balancer. Modern AI-powered medical technology, for instance,
is increasing life spans, identifying diseases, and saving lives. facilitating online and remote
learning. Thanks to AI and blockchain-powered technologies, public services are also becoming
more accessible and accountable while using less bureaucracy.
Through the vertical transfer of capabilities, globalization fosters innovation by domestic
businesses in developing market economies. Countries may increase their competitiveness,
investment appeal, and readiness to deal with new economic, social, and environmental concerns
brought on by the development of globalization through fostering and boosting innovative
performance. Simply said, increased productivity, or the ability to create more with the same
input, can result from innovation. The economy expands as a result of higher productivity, which
results in the production of more commodities and services.

Recommendation
Promotion strategy The Group retains a strong position in the market as a major brand in
the management consulting industry today, having been around for more than a century.
On the other hand, new brands and products are constantly evolving, posing a challenge to
market position, as users are more likely to try something new and forget about previous
products. As a result, the company can link up with well-known and well-liked celebrities, social
media stars, beauty experts or key opinion leaders (KOLS).
Adapting innovation and geography-based business Learning and using new approaches,
as well as catching up with international standards, are all part of globalization. The use of new
technology can not only assist the company in establishing new product lines that will market to
new types of consumers, but it can also assist the organization in inventing different product
lines that will attract new customers, new types of customers. Globalization will help the
company to adapt and change its products in response to other countries and regions. Customers
will feel that the organization is interested in seasonal things or limited edition service that are
only available in specific regions, which will help them grow their market

Conclusion
This report discusses the benefits and drawbacks associated with business expansion. Regardless
of the size and nature of the business, global expansion is challenging and includes threats such
as cultural diversity, currency fluctuations, poor organizational structure, and more. It requires
management to comply with international laws and regulations. The global pricing strategy
creates problems for the company. Taxes, fees, charges and other charges will vary depending on
the location. It also indicates opportunities related to business expansion. By running businesses
in the global arena, companies gain a large number of customers. It not only improves the
company's profits but also enhances the company's brand awareness. Cultural diversity brings
positive results, as companies better understand from a marketing and management standpoint.
Finally, it discusses the measures that management must take to combat the adverse effects of
globalization.

Works Cited
Company, 1996. Our purpose, mission, and values. [Online]
Available at: https://www.mckinsey.com/about-us/overview/our-purpose-mission-and-values
Lutkevich, 2022. Globalization. [Online]
Available at: https://www.techtarget.com/searchcio/definition/globalization
UKEssays, 2018. George Yip's Drivers of Internationalization.. [Online]
Available at: https://www.ukessays.com/essays/economics/george-yips-drivers-of-
internationalisation-economics-essay.php?vref=1
MOIT, 2021. Phát triển thương mại điện tử trở thành một trong những lĩnh vực tiên phong của
nền kinh tế số.. [Online]
Available at: https://moit.gov.vn/bao-ve-nen-tang-tu-tuong-cua-dang/phat-trien-thuong-mai-
dien-tu-tro-thanh-mot-trong-nhung-linh.html
Yip, 1995. Yip’s Framework of Globalization.. [Online]
Available at: https://finance-notes.com/yips-framework-of-globalization/
Steger, 2017. The cultural dimension of globalization.. [Online]
Available at: https://doi.org/10.1093/actrade/9780199662661.003.0005
Drew, 2017. Technological Globalization – Examples, Pros And Cons.. [Online]
Available at: https://helpfulprofessor.com/technological-globalization-exmaples-pros-cons/