Influences of Global Business Environment on Organizational Functions

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1. Analyse key factors of cost, market, environment and competition that drive global
commerce and trade....................................................................................................................4
M1. Critically analyse the impact that key factors have upon the global business environment
in terms of benefits and challenges.............................................................................................5
TASK 2............................................................................................................................................6
P2. Explain the complexity of strategic challenges faced by organisations when operating in a
global environment supported by specific examples..................................................................6
M2. Critically analyse strategic challenges in context of risk and diversification strategies and
the supply chain flow..................................................................................................................7
D1. Critically evaluate global business environment considering the opportunities and
challenges....................................................................................................................................7
TASK 3............................................................................................................................................7
P3. Evaluate the influences of globalisation on organisational leadership, structure, culture
and functions...............................................................................................................................7
P4. Evaluate the influences of ethical and sustainable globalisation on organisational functions
.....................................................................................................................................................8
M3. Critically evaluate global market influences in application to appropriate theories and
models relating to organisational structure and culture..............................................................9
TASK 4..........................................................................................................................................10
P5. Evaluate the different ways decision making can work effectively in a global context.....10
P6. Determine and articulate the various routes to internationalisation an organisation may
adopt, including key barriers.....................................................................................................11
M4. Critically evaluate the key barriers in doing business internationally and make
recommendations on how they can be overcome.....................................................................12
D2. Critique significant strategies which are opted for business environment and justify
recommendations......................................................................................................................12
CONCLUSION..............................................................................................................................12

REFERENCES..............................................................................................................................13

INTRODUCTION
Global business environment is the concept which significantly explain the overall
environmental conditions undertaking the prominent research of market considering various
factors. For this, the significant factors leads to impact the decision making and other strategies
of organisation which is concerned with running an organisation (Kokodey, Gnezdova and
Lomachenko, 2018). Global business environment is the broad concept undertaking various
opportunities and resources and also consider risk factor as well. To carry forward this study,
HSBC Holdings Plc is considered which is the British multinational bank and financial service
holding company and also has well reputation in Europe. Company also has around 3900 offices
in 65 countries across Africa, Asia, Europe, North America and South America. The report
covers the effective analysis of key factors including globalisation and identifying the strategic
complexities which are involved in global business operations. Influential global business
practices are considered regarding culture, structure and functions and other concerning
strategies are taken which leads to impact decision making.
TASK 1
P1. Analyse key factors of cost, market, environment and competition that drive global
commerce and trade
Globalisation is the essential part of modern business practices that leads to offer huge
platform to company considering the operations and revenues without any issues for the
domestic and international market (Shageeva and et. al., 2017). Hence, globalisation is the
process of segregating market in the global economy that leads to enhance the effective
connection for the business and separate economies. Few factors of cost, market, environment
and competition tends to drive for the global trade and also tends to undertake trade or
globalisation. These factors are discussed below for HSBC:
Cost
Difference in taxes: It leads to depict the prominent desire of company which is
beneficial only because of lower labour cost and other factors which are present across the nation
and also influence global trade. For example, in China labour cost is low which is beneficial and
profitable considering the opportunities for HSBC to work and save cost for market.
Market