Global Business Environment: Factors, Challenges, and Impact

Unit 18 Global Business
Environment

INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
P1 Analyse key factors of cost, market, environment and competition that drive global
commerce and trade................................................................................................................4
TASK 2............................................................................................................................................4
P2 Complexity of strategic challenges that has been faced by organisations while operating
their functions in global environment.....................................................................................4
P3 Globalisation influence on an organisational governance and leadership, structure, culture
and functions..........................................................................................................................6
P4 Influences of ethical and sustainable globalisation on organisational functions..............7
P5 Various ways decision making can work effectively in a global context.........................8
P6. Various routes to internationalisation including the key barriers..................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
Books and Journals........................................................................................................................12

INTRODUCTION
Global Business Environment is termed as an environment in which diverse range of
sovereign countries along with many influencing factors like culture, geographical location,
politics are included that affect organisation decisions on resource capabilities and use. Global
business has significant impact upon business operations of corporate and economic activities
that they undertake place across different countries (Kasemsap, 2020). Main component of
global business environment include demographic, political and legal, social and cultural,
economic and technological environment. Globalisation facilitate business organisation to
undertake advanatge of potential level of talent and other resources from various geographical
locations that further facilitate organisation to increase their overall growth with great efficiency.
Along with this, globalisation also allow to expand their business operations that will further
assist them to gain more prominent advancements. Proper understanding of all these functions
allow organisation to develop formative strategies and measure through which entity can
undertake profit making opportunity for their business growth, international reputation and
international growth. Present report has been made own Allan Reeder trusted dairy suppliers that
supply butter and cream to bakeries, coffee shop, restaurant, hotel pub, contractor and more. This
organisation offer wide range of dairy products with high quality with a commitment to make
their consumers happy. Present report includes formative discussion upon factors like
environment, cost, competition, market drive, global commerce as well as trade. In addition to
this report include complexity of strategic challenges that organisation is facing, along with

sustainable and ethical globalisation impact upon entity functions. Lastly in this report wide
range of internationalisation roots is being involved along with key barriers.
TASK 1
P1 Analyse key factors of cost, market, environment and competition that drive global commerce
and trade
Globalisation is defined as an exchange of services, products, information’s, labour,
technologies etc among different countries. However it include different factors that are
influencing business operation and further provide different type of advantages to country such
as job opportunities, increasing per capita income, easy availability of resources etc.
Globalisation allow free trade movement of data, technology, products, services through which
entity can maximize their effectiveness performing their operations in different countries where
there services have not reached yet. In context to Allan Reeder this has been evaluated that as to
maximize their international market shares effectively organisation is looking forward to expand
their business services in Spain marketplace in order to drive their profitability in upward
margin. However in this process that are wide range of driving factors that can have influence
upon organisation expansion process such as market factors, technological advancement, cost,
competition and more.
Market Factor:
It has been evaluated that market involves different type of factors which entity can
undertake effectively in order to ensure that successful expansion at global stage. In the present
case scenario by taking assistance of global business expansion Allan Reeder can get maximum
shareholding, in this entity is required to evaluate actual needs and importance of consumers and
further fulfil them accordingly in order to generate more effectiveness.
Cost Factor:
It is one of the most important factors and has number of variations according to
countries (Rajagopal, 2020). In this Allan Reeder is required to evaluate cost factors in Spain in
terms of sales volumes, raw materials, production process etc in order to successfully operate
that business in respective entity.
Competition: