Globalisation, Strategy, and Business Environment: Thermax Limited

This report provides a comprehensive analysis of the business environment, focusing on factors affecting global trade, strategic challenges faced by organizations, and the impact of globalization on organizational governance, leadership, culture, and various functions. The report uses Thermax Limited as a case study, examining market factors, cost factors, and competition in the context of global trade. It also delves into the complexities of strategic challenges, including foreign trade laws, diversification strategies, supply chain management, and technological changes. Furthermore, the report explores the effects of globalization on organizational structure, culture, leadership, and governance, highlighting how these elements influence business functions. The report also discusses different decision-making types, internationalization routes, and related barriers. Ultimately, the report aims to provide a thorough understanding of the business environment and its implications for strategic decision-making in a global context.

BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1) factor of cost, market and competition that effect global trade ......................................1
TASK 2............................................................................................................................................3
P2 Explain the complexity of strategic challenges faced by organisations when operating in a
global environment.................................................................................................................3
TASK 3............................................................................................................................................4
P3 globalisation effects on organisational government and leadership, organisation, culture
and various functions..............................................................................................................4
P4) Impact of Ethical and Sustainable globalisation on organisational functions.................6
TASK 4............................................................................................................................................7
P5) different type of making decision which help in organisation.........................................7
P6) different routes for internationalisation of organisation by considering various barriers8
CONCLUSION...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
The business organisation run in a proper surrounding and this type of business model
called business environment. Environment of business are such as politics, culture, economics
and new technology which is admire by organisation. In order to take strategies for a
organisation there are various factor which affect the business and analyst observe it. The
organisation need to know what type of global environment that is entering into. In context with
following context, Thermax Limited is analysed (Anderson and et. al., 2016). This company is
about engineering company which is focus on energy and environment. This companies is deal
about the manufacturing boilers to harness the power of stem. This company is starting with
small once through they baby boilers. Thus, the Thermax deal with the branches off into waste
heat recovery, absorption with cooling pattern and power generation is used. Play a vital role in
country energy shift form oil to coal and biomass, to waste heat solar and other forms of clean
energy. In this topic it is discussed about the various factor which influence the organisation
globalisation. The sustainable and ethical emerging in globe and its effect on future decision
making.
TASK 1
P1) factor of cost, market and competition that effect global trade
When firm of various countries had join their hand to make a trade for the global and
individual advantage this trade is called the globalisation. Globalisation have various factor
which affect the organisation like marketing structure , finance plan, operation impact and
distribution channels. Factor such as cost, market, competition in various region against
organisation (Björklund and et. al., 2017). This all factor affect globalisation and their trade. The
ways in which these factor can be initiative of global trade and firm position of globalisation is
given below:
Market factor: There are various market factor which influence the market which
comprise of demand, supplies, equilibrium, product, prices and many more. This is happened
many of times in which various factor are affected the organisation to be go for global aspect. In
context with Thermax Limited, various factor affected the organisation which help him to rise on
global level. Th organisation deal with energy and environment this is compatible with for trade.
When other company lead to globalise their organisation Thermax Limited need to allocate
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himself in various market of different countries. So many of countries globalising and expanding
their business which worked for Thermax Limited to do they want to do.
Cost factor: There are various price charged in different location of same product. This
variance occur due to unavailability of some goods and services is various countries. Due to
insufficient supply of product and services the price rise. The reason behind this factor is global
allocation that causes the global sourcing. This means the manufacturing unit and their head find
the right way to get raw material in lesser price and start producing goods and in aspect to lower
the cost of product and services. Thermax Limited using cost factor and entering into various
countries like India with a labour cost which lower in rate that make it sufficient to use human
resources.
Environmental factor: There are many of business which is facing this factor which is
related to environment issue. In addition with technological, social, legal and arisen political
factor that affect the social inclination of moral and norms of society (James and et. al., 2016).
Thermax Limited is dealing with energy and sometime this variance create the factor of
environmental concern. The selected organisation facing the issue of political and legal. So as
per this Thermax Limited follow the rules and regulation of government policy while they
entering into various countries.
Competition factor: This factor helps to develop the profit and revenue by implementing
new plan and strategies to promote organisation in various level of market and after that is help
to lead to fix in market. In the context with Thermax Limited this is based on engineering which
deal with energy and environment and manufacture boiler and they deal with waste sources. And
their competitors are ABBLTD Affordable Robotic & Automation Ltd., AFFROB Honeywell
Automation India Ltd., HONAUT ISGEC Heavy Engineering Ltd., SARIND Siemens Ltd.,
SIEMLT Triveni Turbine Ltd., TRISRI.
Thermax Limited is facing various set of action because organisation is dealing with
natural core of factor. They take many many initiative which is relevant to nature. This also
include in many events which required appropriate resources to setup firm by choosing different
regions and generation of logistic and pathway for short duration of time. Thermax Limited
involving in may project which is based on government and part of development of countries
they used to give hundred percent and complete their project with perfection. This help to raise
the goodwill and market share. A huge digit of organisation uses the technology and factor which
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is provided by Thermax Limited create many of advancement such as development of country,
new nature sources and high effective environment and create positive aspect of living (Lüdeke-
Freund and et. al., 2017).
TASK 2
P2 Explain the complexity of strategic challenges faced by organisations when operating in a
global environment
In business challenges are likely to be occur because of many factors such as change in
market situations, customer behaviour etc. Strategic challenges are necessary to be analyse so
that decisions are being undertaken in proper manner. In this competitive era, it is duty of
manager to make assure that challenges which are being faced are solved and identified in most
efficient way. This challenges lead sometime very crucial and major difficulties which cant be
ignore by organisation while this challenges create the loss in profit of firm.
In relevance of Thermax LTD, they also faces many strategic challenges which are faced
by firm & are mentioned below-
Impact of foreign trade law- It is major strategic challenge which is faced by businesses
when operating at global level (Pfisterer and et. al., 2016). In reference of selected firm, they also
faces challenging as they operate at within international market & due to foreign or international
trade they have to pay higher prices to intermediaries to release their products in market at larger
scale. In foreign trade, laws are different from country to country & it is necessary to be properly
follow these laws so that operations can be carried out appropriately.
Diversification strategy- It is another strategical challenge which is being encountered by
Thermax Ltd. In this diversification strategy, company launch their new products into new
markets. To properly use this strategy it is crucial to have appropriate knowledge about
challenges that can be occurred such as unfamiliar situations and trends of market, change of
customers demands etc. Thus, it is necessary to deal with these challenge so that objective are
achieved effectively. Diversification strategies are adopted by global businesses to widen their
operation activities. This strategy tend to develop new challenges and new threat for organisation
while they dealing with new product and introduce in new market. The risk factor are arises
sometime can cause the loss of profit and revenue of organisation
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Complexities in supply chain management- In business field, suppliers and supply chain
play important role as without them it is difficult to access to customers and fulfil their demands
for products. As organisations operates globally, they complexities in supply chain management
are likely to occur due to external as well as internal factors (Raszkowski and Bartniczak 2018).
In relevance of selected firm, they have large supply chain and distribution network all around
the world, which shows that they have large supply chain management & wide range of
suppliers. Thus,decisions making is to be done accordion to number of people involved within
process which leads to issues & problems.
Technological change- It is another challenge in which changes in technology from
locations to location leads to risk and challenge in business. In context of selected company, they
are operating worldwide and they have to update their technology as well as other software,
hardware accordingly. It is a difficult tasks which need to solved properly. Moreover, it has been
also examined that these technological challenges are necessary to be solves so that functions &
operations can be carried out in appropriate manner. This changes sometime influence working
of organisation in which the employee must tend to develop in such a way to adopt new
technology and they should trained and developed as they do their work in very effective and
proper manner.
Therefore, above explained matter states that it is necessary to be aware about these
strategical challenges as they help in making improvements in within business which is
beneficial for growth & development.
TASK 3
P3 globalisation effects on organisational government and leadership, organisation, culture and
various functions
The way of governance consist of many number of rules and law which help to regulate
the various function of organisation for performing their task in ethical ways. The corporate
governance is regulated and taking the responsibility for making new business which reach the
objective and goal which is given by organisation (Schaltegger and Burritt 2018). Vision and
mission of organisation is stated to every employee also consist while performing and preparing
corporate governance.
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Structure: Structure is defined as the taking new responsibility and also enhance flow of
roles and power in an organisation. When taking context of Thermax Limited the structure is is
different, ideas and information are flowing is such a way which flow hierarchy. In that the
information is flow form upper to lower and data of information flow in Thermax Limited is
horizontally between manager at level of various departments and advice is going through
upward direction which is from superiors. As per this the structure of Thermax Limited is
smooth because they deal with energy and environment. They deal various aspect of boiler and
waste heating energy before this organisation was dealing with baby boilers. There structure very
safe and oriented and created in such a way to help the worker and staff for smooth functioning.
Culture: In which it is defined as the belief and value of an organisation which is taken to
create ethic and morals. Thermax Limited follow number of ethics and other factor which create
soft culture (Strupeit and Palm 2016). A practice in which major task to organisation create
tangible and non tangible goals provided to employee and treat in equal importance. The
growing culture in Thermax Limited it easy for employee to take advantage which helps
organisation also. The selected firm manage the human resource and also select new employee
and provide proper training and development.
Leadership: Thermax Limited follow the transactional and participative leadership. In
this the organisation structure are in such a way which create help in sense of belongingness
amongst employee. It is helpful for organisation to create positive environment for working. The
leader is very essential for an organisation who lead their team member and help him to achieve
the completion of task in an effective way. This help to create growth of self personality and
confidence within employee and create the spirit to complete the task.
Governance: This help organisation Thermax Limited to take step in globalisation. It
help to making new policies and procedure which help venturing within various countries.
Functions: the function of Thermax Limited is produce energy and save environment and collect
waste which is harmful. Organisation is all about engineering based functions.
Hofstede's model: Greet Hofstetde develop this model. It state that organisation have
their various culture which comprise of practices, belief and innovation of firm which are
different form others.
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Masculinity vs femininity- In this the Hofstede model power and regulation are given to
male and female both. In the context with Thermax Limited company have in term of energy
and their resources.
Uncertainty avoidance- In this the behaviour of employee is analysed and observed.
Individualism vs collectivism- In context with Thermax Limited in this they reduce the
time for making decision.
Power distance- This element help in organisation to delegate power and duties to more
than the one person even to superior of firm.
P4) Impact of Ethical and Sustainable globalisation on organisational functions
Ethical globalisation consists of overall goods and services information kept for a long
term in an ethical way to encourage stakeholders of the organisation including employees,
suppliers, customers, society and government at a broad level (Tsironis and et. al., 2017).
Sustainability of work processes in the organisation help them in generating more revenue and
profits. Increased market share of the firm help generate goodwill in the industry.
Expansion of business means developing it at an international level through sustainable
globalisation in a long run. Today's highly competitive market demands a suitable structure for
sustainability in business operations and management. This technique ensures running of
business for a longer period of time with increased profits. Organisation's function influence the
ethical and sustainable aspects adopted by companies such as of Thermax Limited stated in
following points:
Marketing function: Marketing is one of the primary and significant function of
management in a business. Based on the demanding wants of the consumer market, Thermax
Limited keeps a closer check at all the dynamics of marketing needs. Analysis of all needs help
in spreading information to society and also create awareness of their products and services.
Marketing function is helpful in making useful strategies to know how their product can reach
maximum no of buyers in less time adding on to the increased revenues of the firm. In a long run
, rise in the profit margins help generate maximum revenue with wide expansion of chosen
company.
Human resource management: Organisation without employees is almost an
impossible task and therefore, human resources are an important source towards growth and
development. In order to go global, Thermax Limited should recruit enough staff to carry on all
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the operations in different places it has started its business in. It is important to recruit right
people for chosen corporation who can meet the roles and responsibilities of particular job
profiles. The company also need to introduce to the new employees organisation's culture and
beliefs for their proper training. If employees are clear about what work they have to do, it will
help them achieve objectives effectively (Wrigley Bucolo and Straker 2016). Individual goals of
employees can be met with group goals if they are trained accordingly.
Finance Function: Finance is an important factor to run any business in a long-run.
Whatever operations new or old the company performs requires financial assistance. That is why
this function makes sure that there is no shortage of funds and cash while running any new
initiatives for a sustainable period of time. Thermax Limited make sure the finance manager is
available with adequate funds for any function and it is his duty to manage and arrange fund
when needed. Finance hereby can be managed in many different possible ways by the manager.
The head of finance department choose one way of keeping in mind cost of each financial fund
in Thermax Limited to know actual status of all liquid and current assets of the company.
Finance manager of the company should be well aware of all facts to take decisions accordingly
for the sustainable longing of organisation.
TASK 4
P5) different type of making decision which help in organisation
As a leader, making decision is very tough and major task which is performed under
organisation. There are advantage and disadvantage while making in decision but making new
decision with a vision for organisation to gain maximum profit. In Thermax Limited there are
various factor which affect situation, so according to that while failing in decision helps to
improve decision. The main motive behind the decision making to minimise issue and factor
which affect the organisation.
Steps involved in decision making: there are various step taken is decision making. This
type of step is followed by Thermax Limited are mentioned:
identifying decision- Manager of Thermax Limited identify the issue which is permanent
or temporary and analyse the solution and implement their decision to solve this.
Gathering revenant information- In the Thermax Limited leader are gather and
collecting the information and data which is useful while making and implementing new
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strategies and plan in aspect of decision making. Employee also contribute to provide the
relevant information to leader.
Identifying all alternative- Leader must take responsibility to identify possible
alternative that help in solving problem. in Thermax Limited gives opportunity to involved in
alternative plans.
Weighing evidence- In Thermax Limited employee have various ideas and innovative
technique and leader and manager take this ideas with evidence. Evidence are such as proper and
liable information about strategies that suggest to find solution.
Select alternative- The manager of Thermax Limited go with all alternative as well as
evidence provided by employee manager comes to take decision to choose any one.
Taking decision- It is responsibility of leader of Thermax Limited to execute the plan.
And this is implemented by leader and manager.
Reviewing decision- This is last step in reviewing of decision. It is major important part
of decision making operation (Yuliansyah and et. al., 2016). It is important for manager in
Thermax Limited to see that decision which is applied and analyse it how useful it is for
organisation.
P6) different routes for internationalisation of organisation by considering various barriers
Organisation follow various ways to promote their product and service worldwide to
make global of their firm. Which help him to take the advantage of global market.
Internationalism is operation or process of taking organisation to global market and handle their
resources according to global market. These are adopted by various firm to create a path for
globalisation. In which Thermax Limited also use this.
Licensing: It is defined as the process which is formulated in term to provide legal
permission of any organisation to do their work under the supervision of government policy. In
the context with Thermax Limited, they also use this for certification of quality and create a
venture with government policy. Which help him to go in international market with their service
and product. If they use this as in mean of international aspect then automatically they will reach
to level of license. The license provide to organisation and those who provide this called as
licensor. There are various factor which affect the profit of organisation are they do not need
large capital investment of new market, they will help to provide the benefits of knowing market.
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Joint venture: With the help of all the above mentioned practices it can be analysed that
there are a number of methods that can be successfully adopted by Thermex ltd. While they are
venturing into the global market. All the strategies have their own benefits as well as
disadvantages for the business. However, using licensing will successfully help the organisation
as certification of best quality. There are several profit like using technological structure,
improvement in market strategies and market research, knowledge of customer behaviour. There
are various factor which create trouble because of change in organisation structure of firm.
Exporting: It is method of internationalism in which firm is used to go global and itself
by exporting its product and services in various market of different nation. Exporting is safest
and cheapest core of internationalization of firm regards with product and goods. This also help
to enhance the profit margin of various organisation those who are globally active with their
service of product. The risk of be as a local or national brand of organisation is completely
removed and helps to increase the revenues (Zakaria and et. al., 2016). This analysis process
have many disadvantage which affect market of company. But for collecting more and more
profit and competitive advantage without any risk and expand with low cost of investment. This
method is efficient and effective and this also helps as a tool to identifying external market.
As per the above discussion this is clarify that Thermax Limited should follow the
concept of licensing as method of international, this is useful for firm and their product and
services. This help enterprise to get market advantage in new market without implementing huge
investment.
CONCLUSION
Business environment play very vital role in business which help in achieving the goals
and objective of organisation. There are many factor which affect organisation external
environment which not useful for firm. The governance also make some profit, revenue and
market share. The manager of organisation formulate policy and regulation in such a way which
effective and working in organisation.
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