Comprehensive Report: Global Business Environment of Allan Reeder

This report provides a comprehensive analysis of the global business environment, focusing on the case of Allan Reeder, a manufacturer and supplier of dairy and bakery products. The report explores key aspects driving global trade activities, including cost, market dynamics, competition, and environmental factors. It delves into the challenges organizations face in a globalized business environment, such as regulatory complexities, political risks, social factors, and market monopolies. Furthermore, the report evaluates the impact of globalization on organizational structure, culture, leadership, and governance, and examines the influence of ethical and sustainable globalization on organizational functions. The report also discusses effective decision-making methods at the global level and explores routes to internationalization, including associated barriers. Overall, the report provides a detailed examination of the global business landscape and its implications for businesses like Allan Reeder.

Global Business
Environment

Table of Contents
INTRODUCTION ........................................................................................................................3
Key aspects that drives on global trade activities...................................................................3
Challenges faced by organisation at time of operating their business in global business
environment............................................................................................................................5
Evaluation of globalisation on organisation structure, culture, leadership and governance. .7
Evaluation the influence of ethical and sustainable globalisation on organisational function9
Methods of decision-making that work effectively for company at global level.................11
Routes to internationalisation the business including key barrier........................................13
CONCLUSION............................................................................................................................15
REFERENCES ...........................................................................................................................16

INTRODUCTION
Global business environment is categorised as sum of those factors which are having
direct impact over the business. This is associated with various factors in which external forces
are putting high end influence on decision making of business (Hamilton and Webster, 2018).
The main motive of this concept is to recognise global factors such as social, political,
economic and other external factors which cannot be manageable by business. This report is
prepared so as to understand global business environment in the context of Allan Reeder which
is a manufacturer and supplier of dairy and bakery products. In this report numerous factors are
taken which are having high implications on global trade process. Furthermore some challenges
which are faced by business within their survival of global market are involved in this report.
On the other side impact of globalisation on organisational governance and its structure are also
associated in this report.
Key aspects that drives on global trade activities
Globalisation is defined as the factor in which organisation is performing their functions
within global periphery. This concept is assisting in recognising laws of the nation in which
business operations are to be carried out. Cost, competition, market and environment of
business are the concepts by which high impacts are drawn out in globalisation. So within this
context management of Allan Reeder is requisite to put their focus on these aspects if they are
willing for long term survival within marketplace.
Cost: Cost is defined as the total amount of money by which overall value of product or
service manufactured has been calculated. This is one of the most essential aspects of the
business as this is only the deciding factor of overall profitability. Every country is having
varied cost and cost structure for their manufactured services and products so this concept is
having huge implications on the business. In the context of Allan Reeder their management is
highly emphasised on lowering their applicable cost in order to earn more profits thereon. So
this is necessary for the company to manage their cost structure in such a way that it remains
transparent and no complexity has been faced within business operations. Allan Reeder is
managing their variable and fixed cost in most manageable way so as to get high business
efficacy (Mangan and Lalwani, 2016). For Allan Reeder this aspect is proven to be the msot

advantageous for them as they are highly concerned in order to earn more profit in global
environment. The company is willing to tap into new global market and for this cost is the
dimension which is to be emphasised by them on prominent manner and Allan Reeder is
keeping this aspect very high.
Environmental: Environment is known as accumulation of all the factors and
surroundings which exists in and outside the business. Globalisation is the aspect which creates
high complications in the business as a brand new environment is faced for which may be the
business is not prepared. This is the essential factor in which assistance is received by the
business in order to run their business at global periphery. Allan Reeder is operating their
business within legal laws of the pertaining country so this is making them highly efficient is
getting prominent market share and goodwill as well. Along with this they are managing their
business in ethical manner so as to obtain distinct competitive edge within marketplace. In the
Allan Reeder context of Allan Reeder the company is effectively managing their environmental
conditions by which they are able to capture market share in a very effective manner. As the
company is engaged in providing vegetarian cakes to their customer which is not harming
environment and making ozone-friendly diet as well. Within this factor Allan Reeder is making
their products safe to be used by every class of people so that it get fitted into their preferences
and due to that huge enhancement can be seen to marketplace goodwill of the company as well.
Furthermore the company is willing to enter into a brand new international market and for this
environmental scanning is mandatory similarly internal rules are required to be framed as per
rules existed in the business environment of that particular market.
Market: Market is defined as the place in which buying and selling activities are taking
place by taking money as mediator. Within existing market Allan Reeder is having their
operation at global level and for this they are required to introduce various marketing strategies
in which they are operating their business at different levels. These strategies are assisting them
in achieving distinct competitive edge in the marketplace. This is providing them immense
opportunities to deal with market rivals in significant manner. Allan Reeder is following a
vegan vegetarian diet so they are having distinct market identity. In order to expand their
market size the company is analysing market situation so as to modify their offerings. The
company is already having ample capture over various market and this enable them to

understand fluctuations in various market. Furthermore within this aspect Allan Reeder is
recognising the best strategies for positioning their product in marketplace so as to tackle their
competitors in successful manner.
Competition: This aspect is known to be the most crucial factor for the business as this
entails the pertaining market situation which is linked with selling and purchase of goods and
services. In this time Allan Reeder is involved in trading at global level in order to carry out
their logistic operation at global level. These aspects are defined as in form of in marketplace
there are various companies and firm which are indulged in producing and rendering similar
services and product these are called competitor. Similarly products are distinguishable within
marketplace as per the characteristics and quality possessed by them. In the context of Allan
Reeder the company is facing high competition with various companies in the marketplace and
their quality is providing them distinct competitive edge (Knight and Liesch, 2016). Allan
Reeder is making highly identifiable cakes which are egg less due to which any egg allergies
can be prevented and this is giving them additional edge within marketplace. As the products of
Allan Reeder is highly identifiable in nature and this is giving them distinct competitive edge
within marketplace and prominent power to deal with rivals. This dimension is providing them
identifiable image in marketplace which is helping the company to attain long term
sustainibility.
Challenges faced by organisation at time of operating their business in global business
environment
Global business is the aspect in which all the laws are enforced in order to increase
customer base and their reliability. In approach of globalisation product and services are offered
at global level by the business. In order to get entered into some new market customer base is
required to be increased and for these efforts in various directions is to be made. In the context
of Allan Reeder, their skilled employees are helping them to attain their business objectives in
prominent manner. Some of the disadvantages related to the company are elucidated as under:
Rules and regulations: Every country is having their rules and regulations which are
required to be followed by every company operating in that country. Allan Reeder is providing
their business operation inside UK and these are having positive impact on their functions as
government is providing high support to them. Similarly they are planning to enter into new

market place in which all the laws and regulation will have to be enforced by them in order to
avoid any law suit and legal framework. For example they are executing their business
operation within rules and framed regulation in order to attain high market sustainability
(Wright and Nyberg, 2017). The European community is highly organised and are making
highly efficient parliament and commission in a very optimal manner. Businesses in UK are
well protected with national court and this is protecting rights of the businesses.
Example: For example US consists strong and rigid law of trade and this is creating
difficulty for Allan Reeder in their global business expansion. Trade law are defined as the
policies which are made by the government in order to manage and control trading activities in
their nation. So this factor is proven to be another big challenge for Allan Reeder and requisite
to analysed by them.
Political risk: Every business is having distinct political conditions and environment in
which various rules and regulations are framed by which government is providing support to
the operating companies. By these rules flexibility are drawn by the business. In the background
of Allan Reeder they are having they are formulating policies in a manner that they can
establish interrelation with governmental laws so as to get support of government while tapping
into new market. For example due to Brexit implication of political power is more within UK
and EU which is creating high level of business uncertainty. As the company is planning to tap
into new market and political risk can be ascertained by them in any market segment which
may create high complexities in running their business.
Social factor: In the business people are linked with different background and beliefs in
which they are planning to achieve sole aim of attaining long term sustainability and
profitability as well. Varied cultures are adopted by people of various cultures and this becomes
a barrier of communicating with them in effective manner. In order to design operational
activities these factors are having high implications and by these objectives of society are being
fulfilled which are pertained to various stakeholders. For example Allan Reeder is rendering
employment to local people and by this high career opportunities are being seen by them which
are resultantly enhancing overall goodwill.

Example: For example India is the country in which problem of supply chain
management may be faced by the companies. for Allan Reeder in order to expand their business
in global level this problem is prominent to them and may create barrier for the company to
grow. Supply chain is the system in which products are supplied to ultimate customer and errors
in this system may lead the company to face negative image within marketplace.
Monopoly market: This market condition is the situation in which a business is having their
sole operation within that industry market and they operate as price maker. In the context of
Allan Reeder the company has many commitments form their customers and they are planning
for various programs within marketplace so as to tackle their customer and market situation in
prominent manner. Allan Reeder is taking numerous decisions which are taken in the favour of
their customer and other stakeholders. Within this aspect Allan Reeder is framing flexible rules
and policies which can be modified in order to take out positive impact over the business (Tidd
and Bessant, 2018).
Evaluation of globalisation on organisation structure, culture, leadership and governance
Globalisation and corporate administration are differentiated by rules and policies within
numerous aspects. Routine activities can be carried out in effective way with the help of these
principles in order to attain overall business objectives in prominent manner.
Leadership: Globalisation provides high implications on leadership because with the
help of leadership business is managed by higher level authorities in effective way. In the
context of Allan Reeder their leadership approach is apt for understanding needs and
requirements of customer in specific manner in order to position their product at world-wide
level. In every country market trend is different so according to that manner leadership style are
to be selected by Allan Reeder so as to get effective business operation in every country.
Leadership style is known as the manner in which control is to be enumerated over the business
and by which policies can be implemented over there (Masciulli, Molchanov and Knight,
2016). It can be said that every country is having their own utilised style of leadership which is
impacting global business positively and negatively. In term of negative implications it is seen
that controlling measures are hard to establish and in terms of positive impact high expertise are
introduced due to global operations.

Culture: In business culture is said to be a significant factor in which functions can be
managed as per the pertained culture so as to establish collaborative working and create positive
environment. In the context of Allan Reeder they are working by keeping their culture open to
adapt new things and new ideas by which high productivity and efficacy can be drawn out. The
company is having main focus on serving customer from various geographical backgrounds and
for this they are performing their business operations according to the needs of society and its
culture. For example UK and India are having varied culture and this is creating cultural
diversity in organisation due to which large conflicts can be created in business.
Governance: With the help of governance steadiness can be created within business
objectives and long term business benefits can be enumerated. Governance is the rules within
organisation which are helpful in managing people and business objectives in prominent
manner. In the background of Allan Reeder the company is having various governance rules
within their organisation by which they are effectively able to recognise needs of customer and
satisfying them by their offerings. As Allan Reeder is having sufficient governance in their
business due to this they are able to control their business in prominent manner and immense
positive impacts are drawn on the business as well.
Functions: The major need of the business is to meet up their objectives and executing
business activities in prominent manner. In the context of Allan Reeder the company is highly
efficient in performing their operation at global level without facing any major complexities. By
this they are ensuring that all the operations are performed by taking care of laws and legal
obligations in order to achieve their foremost aim. This has been observed that the company is
completing their assignment by enforcing all the applicable laws.
Hofstede’s culture model
Allan Reeder is focused on their business expansion within different areas in order to
position their brand at a prominent place within marketplace. For the major purpose to
understand macro environment factors which are shown as under:
Power distance index: This is known as the degree of acceptance in which without any
prominent power commands are exhibited by the business. In the context of Allan Reeder PDI

index is used by them in which country in which planning is executed in order to enhance
working in centralised manner.
Individualism versus collectivism: This is defined as the power in which community
are connected. In the context of Allan Reeder they are willing to expand their business across
various countries and for this the country which is high on IDV is the best suitable for them.
Masculinity versus femininity: Within this aspect roles are performed by men and
women are included. In the context of Allan Reeder they are involved in managing business
within these roles in order to achieve their objectives by the help of their employees.
Uncertainty avoidance index: This aspect is linked with operational management
within time frame and anxiety. In the context of Allan Reeder they are focused on increasing
creativity of their employees and render them concise path of growth.
Long versus short term orientation: This is defined as time horizon within individual
and society as togetherness so as to achieve high end success. In the context of Allan Reeder the
company is focused on achieving short term objectives and this is adding more value to their
business as well.
Indulgence versus restraint: This concept is associated with the aspect that high scoring IVR
country is consisting of high power of understanding emotions of their employees (Pieterse,
2019).
Evaluation the influence of ethical and sustainable globalisation on organisational function
Ethical globalisation is involved to provide integration of economy and culture within
society. These aspects are having positive impact over the business as they are associated with
value and ethics. Besides this high brand image is inculcated within global level when ethical
and sustainable practices are followed by the business.
Systematic processes are included with sustainable business organisation as within these
concepts success in linked in direct manner. In the context of Allan Reeder they are focused on
expansion of their business within worldwide level. So for this a stable position is required to
be attained by them which could be possible if company adopts global standards in their

business. Some of the major aspects are elucidated as under which are having high impact over
global business:
Human resources: Employees and other persons who are directly linked with the
business are known to be assets and major resource of the company. These are helpful in
providing top position to the business within marketplace by giving their overall efficacy to the
business and taking out high productivity. This is a method by which most suitable candidate
can be selected by whom high degree of productivity can be taken out due to which prominent
market position can be received by the business. In the context of Allan Reeder they are
providing high degree of training to their employees by which they are rendering guidance to
their employee so as to achieve business objectives (Crane and et. al., 2019).
Finance: This is known to be the most prominent aspect of business as whole the money
measures are associated with this. Within this factor budget is prepared and all the funds which
are needed for market expansion are released from here only. This is the function by which all
other functions which are associated with money are controlled and monitored. Form the point
of view within Allan Reeder the company is using various accounting and financial software so
as to maintain their financial records. This is helping them to save additional cost which was
earlier used in providing training to individual for making them learn about accounting
techniques.
Marketing: This aspect is a broad aspect under which numerous concepts are associated
such as promotion, examination of needs and demands, advertising, product and brand
promotion, satisfying customer need and many more. In the context of Allan Reeder marketing
concepts are efficiently followed by them as they are appropriately recognising market demand
and trying to satisfying the same with their product offerings. This is known to be the most
effectual concept in which long term sustainability can be achieved by them.
With the help of executing business operation in ethical manner international identity
can be received by them due to which market share can be enhanced. There are numerous
challenges which are faced by the business such as adherence of rules and regulations. Every
country has formed their rules and in order to survive within global level businesses are
required to follow these rules without any ifs and buts. By executing business operation in

ethical manner brand value of the business can be enhanced (Chams and García-Blandón,
2019).
Ethical and sustainable globalisation factors
Environment: This is defined as the surrounding in which business is operated by companies.
This is the factor which is having high implications on sustainable globalisation. For Allan
Reeder as the company is tapping into some new international market and environment is the
factor which is responsible for their sustainability. In order to be in the business environment
Allan Reeder is required to adopt ethical business practices so that to avoid any complexities.
On the other hand in the absence of abnormal scanning of environment Allan Reeder may face
failure of their business in new market segment.
Employee well being: This is defined as the framed policies in order to upkeep interest of
employees in prominent manner. For Allan Reeder this is required that they make those policies
by which welfare can be obtained for employees in order to give them value and obtain their
fuller efficacy. The positive aspect with this point is that by making policies for well being of
employee Allan Reeder will be able to receive high dedication and involvement of employees.
On the other hand disadvantage with this factor is that it is costly that may hamper profitability
in adverse manner.
Climate: Climate is defined as weather condition which are changing as per season change. For
Allan Reeder being a cake manufacturer they require favourable conditions which is moderate
or cold weather for them. As in cold weather their product doesn't get melted and its durability
also get increased. On the other hand in the presence of unfavourable weather conditions the
company will face high wastages which hampers their sustainability in long term.
Recommendations: As Allan Reeder is willing to tap into new international market so as to
attain high sustainability. The company is adopting ethical practices for the same so as to
achieve their desired level of sustainability. Some factors are observed by the company which
are having direct impact over their sustainability. For example environment, for maintain
pertained condition within environment Allan Reeder is required to analyse market conditions
in most effective manner so that to release prominent complexities. On the other hand for
welfare of their employees the company is required to frame flexible policies by which benefits

can be rendered to their workforce. At last within dimension of climate, Allan Reeder is a
manufacturer of bakery products so they are required to analyse climate condition of the market
in which they are entering so as to enhance durability and life of their product.
Methods of decision-making that work effectively for company at global level
Decision making is stated as the process in which power is ascertained by the business of
taking right plan of action by following various steps and processes in order to take out
effective decision as well. In the context of Allan Reeder they are focused on completing their
assigned task within rendered time limit. Within the current market situation Allan Reeder is
planning to tap within new international markets and trying to enhance their global presence.
This is easy for the company to attain high sustainability as they are completing their tasks
within given time frame in effectual manner. Some of the methods which are used by Allan
Reeder within decision making process are elucidated as under:
Command: Allan Reeder is performing their task within different nations and they are
handling very huge team in order to achieve their organisational task and objectives. For the
management this is essential that they obtain feedbacks are collected by them so as to recognise
customer perception about their product and services. This is resulting in taking some decisions
which are highly effective in nature regarding earning high profitability. These decisions are
helpful in getting high end sustainability and expanding business within global level. The major
purpose of command is to decrease their risk of uncertainty occurring in the business (Jarrahi,
2018).
Collaborative: In business manager is performing crucial role of managing stakeholder
and employee in such a way that right decisions are taken out by them. Within right decision
high profits can be earned by business and sustainability can also be achieved. In order to frame
accurate decision employee must be included in taking out valuable results thereon. By
including employees in opinion setting high end positive results can be drawn out. In the
context of Allan Reeder they involve their employees in decision making so as to positions their
brand at prominent level.
Convenience: This is the responsibility of holding overall authority in order to take out
effective position within marketplace. This aspect is essential in delegating proper