Unit 18- Global Business Environment
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Added on 2020-12-09
Unit 18- Global Business Environment
Added on 2020-12-09
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Unit 18
INTRODUCTIONGlobal business expansion refers to the strategy where business organisations plans toexpand their business operations beyond national boundaries. The motive of expanding businessglobally is to enhance productivity and profitability of the organisation (Vance and Paik, 2014).While doing so, managers and top authorities faced many adversities and complexities. In thiscontext, this report will focus on analysing key factors of cost, market, environment andcompetition that drive global commerce and trade for Black Penny. Black Penny is medium sizecafe operating in United Kingdom, which is planning to expanding its operations in variouscountries. The complexities of strategic challenges which faced by the organisation will be assessin this report. The impact of globalisation on Black Penny's governance and leadership structurewill be assess in this report. The influences of ethical and sustainable globalisation will beaddress in this assignment and eventually, articulation of various routes to internationalisationwill be assess in this report.TASK 1P1 Key factors which drive globalisation in context to Black Penny.There are mostly four major sectors of drivers for globalisation such as competition,government, cost and market. Potential of globalisation in regard to Black Penny is externallydrives the influence the condition for which they are not in controlling. The drivers ofglobalisation are represented as follows:Market- In the market drivers, it contains several types of such as demands, transferablemarketing or customer needs etc. the manufacturing industry like Black Penny getting highlyinfluenced by the globalisation which is conducted to enter in a new market (Kirton andMaclaren, 2018). Moreover, Black Penny has to be make changes in their industry operations fordeveloping goods to fulfil new demands in a global market. To become a successful should befollow the rules and regulations of the organisation.Government- The government is manipulator for the globalisation, Black Penny is necessarily tofollow several policies and laws imposed by the government of UK while change of market intonew markets such as Africa and China, the industry needs to select or follow new policies withrespect to the market they are entering into. In the global market, every market or nation has itsown taxation policies, trading policies, etc. which greatly influence the business operations in themarket. Therefore, the rules and regulations of the government should be strictly followed.1
Cost- In the company Black Penny, to succeed a new economics of measure by marketing theirproducts at higher prices in new market place. Another term, in the company to gain the profitand benefit of low cost of production through the import and outsourcing. The most importantand essentially major part is the cost for the organisation or business. The economic conditions and cost of product in a market place is greatly affected by the businessstructure plan of act and purpose.Competition- In the new market, it has also brought new competitors for a company. In thecompetitive market, when the company is entering into a new global market is highly rated andexposed in the market (Roper, Hopkinson and Hawkins, 2017). There are several companies whoare operating in a similar industry and choosing economic process to spread out or increase theirenterprise and cover a large market section that develops a highly competitive market for BlackPenny. In state to control and keep up in the competitive market, the modification of business isaccording to the scheme.. The company should be always in the competition stratifies to gain andhaving a knowledge of whatever is going in the market.TASK 2P2 Strategic challenges faced by Black Penny when operating in global environmentConducting business globally is not as easy as it looks. Management faced manychallenges and obstructions while working within global environment. With the rise oftechnologies and internet revolution, anyone can obtain all the knowledge and informationregarding aspects of organisation (Story, Luthans and Bovaird, 2014). Every country hasdifferent laws and regulations which are mandatory to be followed in order to sustain in theirmarket economy. Furthermore, tastes, preferences, culture and perceptions of customers arevaried in different countries. In this context, the strategic challenges faced by the management ofBlack Penny while operating in global economy are described as follows:Foreign Laws and regulationsIn order to operate efficiently in foreign country, it is essential for management of BlackPenny to have comprehensive understanding of local laws and legislation which governs itstarget market (Charles Jr, Schmidheiny and Watts, 2017). From tax implications through tradinglaws, navigating legal requirements is a central function for any successful internationalbusiness. This is major strategic challenge faced by Black Penny while operating in globaleconomy.2
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