CAMECO: Global Business Environment Factors and Challenges Report

This report provides an in-depth analysis of CAMECO, a fast-growing energy and chemical trade company, within the global business environment. It examines key factors driving global commerce, including cost, market dynamics, environmental considerations, and competitive forces. The report delves into the strategic challenges CAMECO faces, such as ethical considerations, cultural differences, and operational complexities in various international locations like Australia, Canada, and Gabon. It also assesses the influence of globalization on CAMECO's organizational structure, leadership styles, and governance, utilizing the McKinsey 7S model to evaluate the company's internal alignment. Furthermore, the report explores the impact of ethical and sustainable globalization on organizational functions, emphasizing the importance of loyalty and individual behavior within the company. The report concludes by highlighting the importance of adapting business strategies to align with global cultural norms and regulatory environments, ensuring long-term success in a dynamic global market.

Global Business Environment

Table of Contents

INTRODUCTION
Global business environment is one of the relevant concept, that actually responsible for
business expansion, growth and firm's productive regulation. This concepts actually consists of
forces that has been put on business regulation of corporate entities as well as role of economic
factors in every business entity (Sergi, 2016). In the current scenario, globalisation has led to
effective creation of business structure along with creating technological trends for growing
business regulation. This report will be analyse on CAMECO, which is the fastest growing
energy and chemical trade headquartered in South Africa. It actually deals in crude oil, natural
gaseous or chemicals. It has been expanded their business operation in different countries such as
Australia, Gabon, Canada and Mozambique.
Apart from this, report will be carry on assessment of major factors which includes cost,
market, environment and competition that drive global commerce and trade. This report will also
cover complexness of various strategic challenges generally faced by the business entity, when
operating in global culture and environment.
TASK 1
P1 Analyse key factors of cost, market, environment and competition that drive global commerce
and trade
Globalisation is the process of interaction and integration among people, companies and
governments worldwide. Actually, it is the process by which businesses or other entities develop
international influences or start operating on an international trade. Globalisation has played a
necessary role in cultural, social, political and social dimensions (Adekola, 2016). CAMECO,
which is one of the fast growing energy and chemical trade entity expands its business operation
in countries like Australia, Gabon, Mozambique, Canada etc., globalisation has played necessary
role in enhance productivity at the greater level. Especially in trade sector, globalisation has vast
and collective role to its purpose and action planning towards profit generation. This concept
actually involves international economic integration, foreign direct investment, international
business or trade. In context with CAMECO, there are various factors of cost, market,
environment and competition that really drives globalisation in context with this leading energy
entity are as follows:

Cost: This is one of necessary factor, which every business firm considers in their firm's
regulation or while they are trading on global platform. Especially in energy sector, role of cost
factor is huge or sometimes critical (Rowell, 2017). It can simply mould business units of entity
which engaged in producing energy or supplying it. In current era Iran, Saudi Arabia, USA etc.
has controlled cost & prices of energy products. As part of globalisation, CAMECO has took
measures such as technological advancement, resource management etc., to control negative
impacts of it.
Market: This is a common factor, which is responsible for future growth of business
firm. In energy sector, where market use to fluctuate with entrants of new business or
ineffectiveness (Lewis and et. al., 2017). This has impact on global trade or commerce in
positive or negative manner. Positive in sense, like strategic partnership to do trade with
collaboration etc. In context with “CAMECO”, market of energy or chemical is wide, because of
large resource platform.
Environment: Business environment is the major challenge, because of wide functioning
or structure made in energy sector. CAMECO deals with various business entity, who are deals
in same sector to generate strategic alliances, if they wants to raise higher productivity or profit
generation. Environment will most necessary concept, in case of CAMECO wants to expand
their business into other countries such as Israel, Kuwait etc. (Webster, 2018). There are
environmental factors such as growing pollution, usage of chemical role & its disadvantages,
conflicts of different nations can stop expansion of CAMECO business as part of globalisation.
South Africa needs to have bilateral talk with other nations.
Competition: This is an necessary factor, which is important to control flow of products
or services on global platform. In energy sector, where competition has took place, because of
major exporters like Saudi Arabia, Iran, Kuwait, Qatar etc. South Africa also have crude, natural
gases, chemical liquid, which they can sell to other nations. The major problem here is lack of
infrastructure and resources to carry out productions of energy. CAMECO should initializes
strategic alliances or partnership to overcome increased competition and expand business to
other locations.

TASK 2
P2 Complexity of strategic challenges faced by firms when operating in a global environment
Every business firms operates with specific challenges or issues, when they deals with
other firms or global business environment. Organisation faces challenges, because of various
factors such as varied culture aspects, critical political scenario, rule of conflicts & issues in
similar business environment (Hamilton, 2015). Also, their complexity are also high, which
actually depends on its nature or how this actually behaves in favour of business regulations. In
context with CAMECO which is originated in South Africa and operates in different nations
such as Australia, Canada, Gabon etc., has faced several related issues such as high wages rate in
Australia, cold climate in Canada, lack of skilled manpower in Gabon etc. As, Climate is not any
strategic challenges, but it can effects business functioning of “CAMECO” in Canada. Apart
from these, “CAMECO” has faced several strategic challenges are as follows:
 One of the major challenge faced by this globalised firm is lack of ethics in people of
Gabon and who have no skills & talent as well as their knowledge was not appropriate to
work in CAMECO. This region have lack of medical & people safety as well as medical
support, in case of urgency.
 In Australia, challenges such as costly resources, high wage labour along with continues
increasing of transportation cost & expenses to delivery manufactured goods to different
regions.
 Mozambique has less population, out of which majority is less skilled and not perfectly
knowledgable and also influences of crime is high and severe (Cavusgil and Knight,
2015). This is an critical issue, which has stop of investment into the country economy &
business regulations.
 There is one more strategic challenge of growing ethical conflicts among different region
or countries, because of different culture, norms, regulation etc. In intense, it has become
strategic challenge for “CAMECO” which they needs to overcome in early period of
time.
Measures to overcome these challenges:
There are various measures which are required to considered for overcoming strategic
challenges in context with”CAMECO” are as follows:

 Strategic planning is required to take measures to overcome issues going into Gabon and
led opportunity to give information/education to people, so that, there involvement in
business operation will give suitable results or outcomes (Yoshikawa, 2017). Advancement into the technology is required to overcome these strategic challenges by
the help of following what trends are running for production activities.
 “CAMECO” should focus on overcoming these challenges through continuous making of
rules & regulations to overcome political conflicts going into the business operations of
the “CAMECO”.
Brief summary: These challenges are required to be avoid through making structure of
its business, which actually suits culture & regulation of that country in an effective manner, in
case of operating in global platform. Nations culture or internal environment is important to hold
globalisation scenario for longer period of time.
TASK 3
P3 Evaluate influences of globalisation on organisational structure, leadership and governance
Globalisation is the process of interaction and integration among people, companies and
governments worldwide. It is clear process of expanding business into the different regions or
countries to raise firm expansion for longer period of time (Caiazza, 2018). When expanding to
other nation, it is necessary for companies to check at what level globalisation has impacts on
culture, leadership, structure and functions. CAMECO follow matrix organisational structure,
where sub-division are located on the basis of different business functions. The major reason
behind taking this structure is that, they have business operation controlled in different other
countries or nations. Also, they are using Autocratic leadership style, in which decision making
has only been taken by top level authorities along with less priority to team members. This
assessment will be discussed through McKinsey's 7s model, which is actually shows about the
culture & governance of this business organisation.
McKinsey's 7s model: This is a model for generating an organisational effectiveness which
claims that, their are seven factors of any business entity, that actually needs to be aligned and
also reinforced in order to be get successful (Wood and et. al., 2015). This model will be helpful
to show what are various measures, which has long lasting control over structure of business

entities. This cultural model consists of two common parts: Soft and Hard elements, which
involves different elements are as follows:
Hard elements: This element involves 3 different S's such as strategy, structure & system.
Strategy: It is a plan, which was developed by business firm's to achieve sustained and
long term business advantage and successful compete into the market (Ozaki, 2015). For
“CAMECO” sound strategy is actually one that's clearly articulated and also which is long term
to achieve compete advantages.
Structure: This represents way, by which business divisions & units are organised
defined information of who is accountable to whom. In layman language, structure is the chart of
a firm.
System: This are processes and procedures of business firms, which reveals business on
daily basis and how decisions are made.
Sources: McKinsey's 7s model, 2018
Soft elements: These elements involves four different S are as follows:
Skills: These are abilities that firm's employee's perform very well. It involves ability and
competencies of business entity, in relation to business functioning & regulations.
Illustration 1: McKinsey's 7s model

Staff: This level of this model is majorly concerned with what type & how may
employee's a organisation needs to have and how many they employee's needs to be get trained,
recruited or rewarded.
Style: This S represents a manner, when organisation are required to be managed by top
level manager's, how they interact, what actions do they take and their symbolic values
( McGuire, 2017).
Shared values: This S is the core of McKinsey's 7s model. They are the defined standards
that guides an employee's behaviour and company actions. These are actually considered as the
major foundation for every business organisation.
P4 Evaluate influences of ethical and sustainable globalisation on organisational functions
Globalisation is the practices, which involves expansion of business unit into different
zones or location. These practices should be done with ethical & sustainable measures to lead the
business operation at the higher level. This actually involves strategic planning, work with right
intention, role of manpower to lead it on front line or basis. In context with “CAMECO”, factors
related to ethical or sustainability such as loyalty for work, behaviour path of an individual etc.,
will put positive influences on functioning of “CAMECO” business. The discussion over these
factors are as follows:
Loyalty: Being loyal to work is necessary for leader's and employee's in every business
entities. In this business firm, manager and leader's are needs to be loyal about their defined
duties or defined task to get motivate their junior in a productive way. Being loyal is necessary to
stay with business entity for longer period of time, but these efforts are required to be made by
companies in order to know what actually motivates them to stay in the job for long. Such loyal
decision will help “CAMECO” to get maximum customer base along with enhanced branding.
Behaviour of individuals: This factor is very broad concept, as it completely deals with
overall reaction of an individuals. It has been considered as key term that is combination of an
internal & external behaviour of an individuals (Tregear, 2015). In context with “CAMECO”, it
has observed that employee's are partially motivated, as their behaviour are used to be varies on
how they interacts with different people or person. There is a need of personality development of
various employee's into the “CAMECO” to raise their productivity or performance.

Brief summary: It has to be revealed that ethical consideration is necessary for business
regulation & continue its process for long lasting period of time. Business functioning has to be
continued with ethical work or practices to maintain global working in the result based manner.
TASK 4
P5 Evaluate the different ways decision making can work effectively in a global context
Defined ethical and sustainable factors has been resulted into process of decision making
effectively in context with globalised firms or business organisation. Factors related to ethical
and sustainable work practices has led effective and outcomes based decision making for this
South Africa based energy sector (Sánchez-Fernández, 2018). At the global platform, decision
making is necessary for managing business along with suitability for future profit or productive
results. In “CAMECO”, ethical and sustainability factors have influences its business to cater
needs of the market with fulfilling needs and wants of their customer. On one hand, loyalty has
brought positive thought process into the mind of manager and leader' to work fairly and take
pure and strategic decision making at every stage of energy business. Especially, leader needs to
be loyal towards what is assigned to them and how they will accomplish defined goals &
strategic targets. Being loyal is important, because this will led leaders and manager of this
company to focus on its defined and structured goals or targets of the business.
In the same flow, behaviour of an individual is also necessary to know how employee's
act, when there is any critical situation lies into the business operation and what will be their
efforts for business based decision making and strategic contribution to accomplish each-every
business goals or targets. In organisation, which is globalised at an international platform, needs
to understand how employee's behaviour has significant impact on business function of this
energy organisation (Liébana-Cabanillas, 2016). It has been noticed that those business entities
who don't have support of their leader's and manager in organisational functioning, all those
business can't run for longer period of time or they cannot expand themselves to the global &
international platform.
Decision making needs to be done with appropriate strategic thinking and full support of
an individual person who are capable to take it in appropriate period of time. It has been noticed

that business entity at different platform or global stage needs to have one featured leader, with
the help of which, CAMECO can expand business to the different market or global platform.
P6 Determine and articulate the various routes to internationalisation an organisation may
adopt, including key barriers
When any organisation expand its business to other location or zone, they actually need
to look out for most preferred strategy to do business expansion (Charter, 2017). As, it is most
critical task for business entities, because actually involves lots of risk as well as threats for
business & related business operations. Also, there are several barriers, which every business
entity needs to be take care before expanding their business are as follows:
Financial problems: This is the major barrier, which is necessity to be overcomes, while
going for business expansion. Strategic expansion must have financial strengths to bear various
expenses such as buy back of stock or shares, acquiring stated asset or bear out liabilities, after
take over of the business. CAMECO needs to do budget planning, if they wants to go into other
market or area of trade.
Location: This is most common barrier, because of different nations have their own issue
of location such as high mountains, geographic problems or lack of resources to undertaken
business activities for expansion or increased profitability.
Lack of resources: This is bigger barrier, because for expanding business of energy and
petrochemical etc., it is required that location where CAMECO has been expanded must have
resources for longer period of time (Trebilcock, 2017). Resources involves the man, materials,
machinery etc., to starts with business operation or functioning.
Measures to overcome these challenges for barriers:
 In order to solve financial problems, “CAMECO” must ensures that adequate investments
and adequate funds must be their to handle any kind of crisis or shortage of money for
related activities.
 Along with budgetary control, proper planning is also required in context with finding of
suitable location as well as giving preferences for starting of business operation of this
energy company “CAMECO”.
 Resource planning is required to fulfil required availability of resources along with its
proper and complete allocation for business benefits and business expansion.

After the complete analysis of barriers and its measures to overcome, joint venture is best
way to strategic expansion, by doing the strategic partnership with well-known energy sector
based venture to facilitates easy access to resources and strategy at one point of time. Also, this
route of expansion has moderate risk, but growth and business future has been predicted as high
and long for “CAMECO” business. This expansion route will be suitable in future for CAMECO
to raise its business operation along with increased profits and business revenue for the longer
period of time. But, before expanding into different location, CAMECO needs to do complete
extensive research & knowledge development for initiating this expansion process or regulative
procedures.

CONCLUSION
From the above report, it has been concluded that business environment are components,
which involves business structure, culture or hierarchical structure of every business firms. This
has been resulted from complete organisational capacity to generate or continue basis for longer
period of time. It is necessary to have ethical consideration or effective working in an business
entities to continue or regulate working on an effective basis. It has been proved that global
business platform is huge and severe along with higher suitability to expand existing business
operation into other different region or location to continue business as well as market share into
the future. It is significant to have effective business structure, culture, hierarchy into business
firm to keep flow of working for longer period of time.