Influences of Globalisation on Organisational Governance and Leadership

GLOBAL BUSINESS
ENVIRONMENT
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Table of Contents
INTRODUCTION...........................................................................................................................3
Analyse key factors of cost, market, environment and competition that drive global commerce
and trade.................................................................................................................................3
Task 2...............................................................................................................................................5
Explain the complexity of strategic challenges faced by organisations when operating in a
global environment supported by specific examples..............................................................5
TASK 3............................................................................................................................................7
Evaluate the influences of globalisation on organisational governance and leadership,
structure, culture and functions..............................................................................................7
Evaluate the influences of ethical and sustainable globalisation on organisational functions.9
TASK 4..........................................................................................................................................10
Evaluate the different ways decision making can work effectively in a global context......10
Determine and articulate the various routes to internationalisation an organisation may adopt,
including key barriers...........................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
The present study aims at having analysis and understanding of firms that has its operations
at global level. A business today is very dynamic with immense competition among similar firms
that sales their goods and services in order to have higher profits and a strong brand image in
industry (Amaechi, 2021). In order to maintain competitive position many firms operates in
more than one market that is beyond the boundaries of home country which are referred as global
companies or globalisation. Any business that has its operations which gets effect from certain
environment that is either internal or external that influences organizations in its decision making
or planning is categorised as global business environment. Internal environment means some
forces like employees, suppliers, top level team or stakeholders that influence organization to
take decisions according to them. On the other hand, external refers to such forces that come
from outside the walls of business firm like political, economic, social, technological, legal and
environmental which are entirely uncontrollable by company. The present report discusses some
key factors that drive globalisation and some strategic complexities that are associated with it.
An analysis of global market operations that influences company’s structure, culture and
function along with its influence on decision making is being considered in report for Ray C
Smith.
TASK 1
Analyse key factors of cost, market, environment and competition that drive global commerce
and trade.
A term globalisation refers to a connection of different companies, government or people
from various countries across globe. This is a process that connects markets of different nations
in which any company can have its operations in any foreign country market with a motive to
earn higher revenues from its large sales (Chen and et. al., 2020). It allows businesses to have
huge production of their products or services along with an achievement of economies of scale.
Any company can go global by adopting various entry modes into international market by
following some legal or other laws that host country demands before entry into their market. The
trend of globalisation is continuously emerging in today’s world as every company wishes to
entry into global business so to have a competitive advantage along with strong brand image in
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industry across globe. The main reason behind globalisation is enhancement in technology,
culture, trade and commerce, transportation, communication and innovative ideas. There are
several reasons that drive globalisation such as availability of capital, updated technology,
adequate resources, economies of scale, etc. Ray C Smith is transportation and warehousing
service firm that offers its services to manufacturing or retail firms. A company has experienced
globalisation which assists in attaining its objectives or goals effectively. Enhancement in
transportation, payments, social media presence or communication gave birth to globalisation of
business firms in market.
Key factors that drive global commerce and trade:
There is a presence of numerous factors that drive global commerce and trade for Ray C
Smith which is mentioned below:
 Cost: Cost refers to any expense or amount that is involved in manufacturing of goods or
services along with various other expenses such as on promotion, transportation,
warehousing, etc. that all are added in the price of such item (Dubrovski, 2020).
Globalisation helps Ray C Smith to have high volume of shipping through its
transportation services which reduces its cost in shifting from one place to another. The
transportation services include less cost in terms of operations which provides an
opportunity for companies to get entry into international market. This also helps Ray C
Smith in achieving economies of scale at large level of operations.
 Market: Market refers to a place where sale and buy of certain goods and services takes
place. Market as a driver of globalisation helps businesses to sale their items in various
places not only into home country but also in international market (Huridi, Jamaludin and
Hashim, 2020). A global market brings more and more customers to the firm as
compared to home country market for Ray C Smith by which it can generate more
revenues through its large sales. It becomes easy for companies in global market to
diversify its sales and expand scope of higher profits.
 Environment: Market environment is very dynamic in nature and takes very frequent
changes which sometimes becomes tough for companies to react on those happenings
(Jiang andCao, 2020). The environment plays a very important role in success or failure
of businesses as it has a great impact as well as influence on decisions along with
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