Globalisation and Business Expansion: A Strategic Proposal CEGL7082

This report examines the fundamental factors driving globalization and their impact on business expansion, particularly for Exergy Vision's sustainable energy vision for 2030. It identifies factors such as productivity improvement, rising living standards, technological advancements, political stability, and environmental considerations as key drivers. The report evaluates various market entry strategies, including direct export, licensing, franchising, and collaboration, to determine the most suitable approach for Exergy Vision. It also addresses potential issues in strategic expansion, such as rapid growth, infrastructure needs, capital expansion, and personnel management. Furthermore, the report assesses the ethical and sustainable implications of globalization, recommending a policy framework to ensure responsible and sustainable business practices. The analysis emphasizes the need for Exergy Vision to balance economic growth with environmental and social responsibility in its global expansion efforts.

Running head: MANAGEMENT
Management
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Executive summary
The report is based on identifying the fundamental factors that affect globalisation and the
manner in which it can be used in order to solve the problems related to expansion of a
company in a global market. The focus of the report is on Exergy Vision and its quest to
attain global sustainable energy as a vision for 2030. The report analyses the factors that drive
globalisation and evaluates the strategies that are required for entering a foreign market.
Factors such as productivity improvement, growing standard of the people, technological
scale, politics and environment are identified. Strategies such as direct export, licensing,
franchising and collaboration are discussed to identify the suitable market entry strategy for
Exergy Vision. At the same time, proposal for the expansion of the business is identified such
as fast growth, need for infrastructure, expansion of capital and personnel issues. The ethical
and sustainable implications of globalisation are identified with recommendations for
adopting a suitable policy framework.

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Table of Contents
a. Fundamental factors driving globalisation.............................................................................2
b. Strategies required for entering and succeeding in new markets...........................................4
c. Issues in strategic proposal for the expansion of business.....................................................5
d. Assess the ethical and sustainable implications of globalisation...........................................7
e. Recommending a suitable policy framework.........................................................................8
f. Summarise the findings..........................................................................................................9
Reference..................................................................................................................................11
Appendices...............................................................................................................................13
Appendix 1...........................................................................................................................13
Appendix 2...........................................................................................................................13

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a. Fundamental factors driving globalisation
Globalisation can be considered as a process that helps in the interaction and
integration between people and government on a worldwide basis. According to Beck (2018),
the growth of globalisation around the world is mainly due to the development of
transportation as well as communication technology. However, other factors also exist that
may be involved in contributing to the globalisation among the market (Hirst, Thompson and
Bromley 2015). In this regard, an analysis of the factors that are the driving forces behind
globalisation can be examined. The focus is on the development of a sustainable business
strategy for Exergy Vision with an aim to improve globalisation.
Improvement of productivity: The improved productivity of an employee is always
the main aim of an organisation and for that expansion and analysis of the external business
environment is needed. In order to improve productivity, it is necessary that an organisation
understands the factors that contribute for an increase in productivity. As stated by Steger
(2017) the improved productivity can help in the development of strategies within an
organisation and ensure that concern for stability in an organisation is maintained. With
respect to the case study, an improved productivity can act as the stepping-stone for
undertaking a sustainable energy development project (Hitt et al. 2016).
Growing standard of the people: The growing standard of the people can be
considered as another factor that drives globalisation. According to Baylis, Smith and Owens
(2017), it is necessary to access the standard set by the people before trying to formulate any
form of strategies, as suitability of the demands and needs of the people are required to be
fulfilled. In this case, the development of sustainability can help in enhancing the standard of
life among the people. Therefore, it is important that Exergy Vision take into account the

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standard of the people be taken into account before formulating strategies related to
globalisation.
Technological scale: The technological scale is by far the most advanced source that
can be related to globalisation. As stated by Pieterse (2015) it is necessary that every
organisation maintain technological competence so that it can continue to gain a competitive
advantage in an organisation. For the development of the objectives of Exergy Vision, it is
necessary that the technological factors be taken into consideration as it can help in the
growth of industries, domestic sector while improving the provisions that are required for
maintaining the sustainable energy development.
Political stability: The political stability of a country can be the cause of concern for
the development of any project. This is mainly because the interference from the Government
can act as a negative impact for the development of an organisation. Hence, it is necessary
that the political stability of a country be identified before developing any form of strategies
(Crane and Matten 2016). The Government mainly due to the fear of exhaustion of the
natural resources can ban the excessive use of energy. For example, combustion of fossil
fuels can degrade an environment and for this reason, the Government may be reluctant to
pass positive sentence on this particular activity.
Environment: As pointed out by Milanovic (2016) the environmental factor is
considered as the most important globalisation strategy mainly because the focus remains on
the sustainability development of the global market. In the case of Exergy Vision, the
environmental factor plays an important role, as the use of the excess energy can be the cause
for the degradation of the environment. Hence, it can be said that the environmental presence
can act as one of the important drivers in the development of globalisation in the market
(Roach 2017).

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b. Strategies required for entering and succeeding in new markets
As stated by Beck (2018) entering a new market requires finance as well as support
from the employees so that the expansion can be completed without any hindrance. However,
proper strategies are required to be adopted so that success can be guaranteed while entering
a new market (Hirst, Thompson and Bromley 2015). In the case of Exergy Vision, an analysis
can be made about identifying the suitable market entry strategy so that it can promote the
importance of sustainability and energy that is needed to improve the living standard in the
global population. Various strategies that can be adopted by Exergy Vision are as follows:
Direct export: Direct export implies selling directly into the market that has been
chosen. Most companies turn to agents after developing a sales program so that it can
represent the sellers in the future. For Exergy Vision, this particular strategy can be
considered as suitable mainly because the choice of agents and distributors are based on the
hiring of key personnel staff. However, as stated by Steger (2017) promoting a business
strategy using direct export cannot be considered as viable as direct exporting does not
provide opportunities for maintaining steady promotion of a project.
Licensing: The licensing can be considered as a sophisticated arrangement between
organisations in transferring of rights related to the use products or services to other firms are
made. According to Baylis, Smith and Owens (2017) the advantage of this type of strategy
can be well received in case a large market share exists. Licensing is usually undertaken for
marketing and production and in the case of Exergy Vision; the company can adopt licensing
as a marketing strategy to enter new markets. Gaining a license for practising sustainability or
for the development of energy sources can be considered as a way of developing the market
(Pieterse 2015).

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Franchising: This strategy can be considered for expanding the market rapidly. This
can help Exergy Vision to gain rapid popularity in the market and ensure that the company
gain the required exposure for the development of its project. However, as stated by Crane
and Matten (2016) one of the considerations that are needed to be made is the fact that
franchising can take place only if a business has repeatable outlets. In the case of Exergy
Vision, such repeatable business does not exist and thus franchising cannot be considered as a
suitable option for ensuring brand recognition in foreign markets (Beck 2018).
Collaborating: As pointed out by Milanovic (2016), one of the most necessary market
strategies that are needed to be adopted while entering foreign market is collaboration with an
existing yet supporting company. Exergy Vision needs to identify the companies that can
help in the development of resources so that sustainability and effective use of energy can be
conducted. Collaboration can help in gaining knowledge of the local market, which can be
used by Exergy Vision to enhance its growth. However, the profit earned as well as risks
perceived are divided between the two companies engaged in collaboration.
c. Issues in strategic proposal for the expansion of business
The issues that may arise while trying to expand a business can affect the growth and
smooth productive nature of the business. Crane, Kawashima and Kawasaki (2016) stated
that the expansion of companies means setting up new challenges and trying to start from the
beginning in a new competitive environment. Therefore, an analysis of the issues that may
arise during the expansion can be done so that Exergy Vision can formulate mitigating
practises and ensure a smooth transition in the international market. These issues include:
Fast growth: Fast growth can be considered as a common problem that is faced by
organisations. According to Bourguignon (2017), success of a business is wonderful but a
rapid growth may have a negative impact on the business. In the case of Exergy Vision,

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similar issue can arise that may have a negative impact on the development of the business.
The fast growth rate strikes on the operational end of a business and thus, the demand for the
services offered by Exergy Vision can outgrow the services it provides. Hence, Exergy
Vision need to ensure that the physical needs of the company does not outgrow the present
facilities of the company.
Infrastructure needs: It is necessary that an outsourced business receive proper
infrastructure so that it can continue with its development and expansion. Infrastructure
includes a proper set up of business as well as support from resources that help in its
development (Croucher 2018). In the case of Exergy Vision, the company need to ensure that
proper structure is available so that it can reach it vision in 2030. Hence, adopting a strong
infrastructure support for the company can be challenging if Exergy Vision indulge in taking
loans from banks. At the same time, communication system is also taken into account so that
adequate support can be provided in the business.
Expansion capital: While expanding in a market, additional financing is required so
that stability of the business can be maintained. As stated by Smith (2018) the additional
finance is required for conducting an analysis of the internal as well as the external factors
that may affect the business in a foreign country. Exergy Vision needs to plan so that it can
gain the required finances for expansion as well as for conducting effective research.
Marketing strategies need to be equipped so that an advantage can be gained for securing
finances before expansion. In this regard, the valuation of the assets possessed by the
company need to be done so that possible future sells of the assets can be made (Ritzer and
Dean 2015). At the same time, technological expansion is also needed so that the company
can cope with the technical advantages that may be developed in 2030.

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Personnel issues: Expanding companies need to hire new personnel so that it can
establish growth in the new market. For Exergy Vision, it is necessary that the company hire
local talents so that the local market can be analysed. Nayak (2016) stated that the issue in
this case could be the reliability of the market as well as the financial capability that the
company possesses. Hence, it is necessary to hire experts that are specifically suited for the
job. Exergy Vision need to ensure that capital of the company is not entirely spend on
marketing and analysis of the external factors. Instead, as pointed out by Ritzer (2016) it is
necessary that the company spend enough finances for finding the suitable talents required
for the success of the business.
d. Assess the ethical and sustainable implications of globalisation
Globalisation can be linked with business ethics as a part of the culture followed in an
organisation. The difference in terms of cultural behaviour and belief need to be taken into
consideration for the development of globalisation. In the case of Exergy Vision, it is
necessary that the company understand the differences that exist in the cultural behaviour of
the countries in which it aims to expand. According to Stearns (2016), the combination of
business ethics as well as globalisation can be considered as an attention-seeking factor that
usually becomes an important part for the development of the society.
For Exergy Vision, globalisation can help the company to understand the different
manner in which energy sources are used in different companies. It has been seen that the
world has managed to reach a stage in which growth of demand have resulted in the rapid
depletion of fuels (Rodrik 2018). Hence, for Exergy Vision the urgent necessity is to reduce
the impact of GHG concentration so that global change can be brought about by reducing air
pollution and acid rain contribution. However, ethical constraints need to be considered

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which includes understanding the effects that the changes may have on the people residing in
a country.
On the other hand, the sustainability implication of globalisation can be understood by
the fact that one of the driving forces of the world has been the sustainability of the resources.
This is because the world is depended on production and the products manufactured in an
organisation need to be done using sustainable techniques. According to Gill (2016), it is
necessary to understand that development of ethical as well as sustainability practises remain
in line with the development of environment. Hence, for a company like Exergy Vision it is
necessary that promotion of factors that account for sustainability be made by following the
trend set by the globalisation of resources.
The establishment of agencies that monitor the existence of sustainability need to be
maintained. It is for this reason that Exergy Vision promote the urgency with which climate
changes in the systems be made so that energy resources are not used in excess. The
utilisation of energy during every season can be made sustainable by identifying the damage
that the loss of energy may cause (Yúdice 2018). It is necessary to maintain a clean and
healthy environment so that Exergy Vision can grow in the market and ensure that it
continuous to develop its business prowess even after expansion.
e. Recommending a suitable policy framework
After the analysis of the issues, strategies as well as approach for the development of
Exergy Vision it can be said that the suitable policy framework that can be used by the
company need to be based on its aim. It has been seen that the company aims to develop a
sustainable environment keeping in mind the expected condition of the market in 2030.
Therefore, it can be said that for Exergy Vision to develop and continue to grow in the world
market, it is necessary that the company develop a strategic framework that can help in the

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development of globalisation in the world (Payne and Askeland 2016). A suitable policy
framework that can be applied by Exergy Vision is that of the stakeholder management.
The reason for the application of this is mainly that the stakeholders can help in the
development of the interests of the company and ensure that a holistic approach is developed
so that Exergy Vision can promote its services. From the case study, it can be seen that for
Exergy Vision to attain a high sustainable energy development it is necessary that it take into
account an analysis of every factor for the development of renewable source of energy
(Rowntree et al. 2015). Environmental degradation can stop if the company can formulate a
steady vision that can be acted upon by the help from the employees. At the same time,
support from the Government is also needed so that fair operating practises are adopted for
the development of sustainability (Stiglitz 2017).
On the other hand, apart from sustainable development and globalisation, it is also
necessary that Exergy Vision develop strategies for expansion into a new market and
maintain its status. The aim needs to be directed towards the development of a sustainable
practise that provides an automatic entry into foreign market. As already seen from the
analysis earlier, the most suitable market entry strategy for Exergy Vision is to form
collaboration with different business so that it can gain an easy into the market. In this regard,
it can be said that for the company to succeed, the analysis of the external market
environment need to be undertaken with the aim of developing a competitive advantage
(Baars et al. 2016).
f. Summarise the findings
Based on the analysis of the case study and the identification of the various issues,
strategies and approaches it can be said that for Exergy Vision to develop its vision it needs
to implement the best and most suitable strategies. From the analysis of the issues related to

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globalisation it can be seen that improvement of productivity, technology as well as political
factors play crucial role in causing a negative impact for the company. Hence, these issues
need to be solved so that globalisation among the countries can be conducted in an effective
manner.
At the same time, the choice of strategy to enter a foreign market needs to be made
depending upon the suitability and the effective promotion of the work done by the company.
From the analysis, it can be said that Exergy Vision can select collaboration as a type of
market entry strategy mainly because it involves doing business with local companies. This
can lead to globalisation and Exergy Vision can hope to promote its vision by considering the
growth that may be witnessed in 2030. However, issues need to be resolved in order to
expand the business in a global manner.
Issues such as fast growth, infrastructure and capital needs are required to be resolved
before the company can implement policies related to sustainability. In this regard, it can be
said that Exergy Vision need to link the ethical considerations and sustainability factors so
that the implication of globalisation can be done in a smooth manner. The effective use of
sustainability policy framework is needed for Exergy Vision to gain success and continue
with the development of energy saving sustainability practise in the global environment.