Report: Impact and Strategic Direction (Global Business Environment)

This report, prepared for the board of directors of CAMECO, a South Africa-based energy and chemical company, analyzes the impact and strategic direction within the global business environment. It examines key factors driving global commerce, including political, economic, social, technological, environmental, and legal considerations, emphasizing their influence on CAMECO's operations. The report identifies strategic complexities such as cultural differences, marketing challenges, tariffs, human resource issues, and the importance of choosing the right country for expansion. Furthermore, it evaluates the effects of globalization on organizational governance, leadership, structure, culture, and functions, including ethical and sustainable considerations. The report also assesses the impact of decision-making processes in a global context and explores key routes of internationalization and barriers affecting organizational performance. The analysis provides insights into managing uncertainties, financial planning, and adapting content to diverse cultures, offering comprehensive guidance for CAMECO's global expansion strategies and overall business development.

Impact and strategic direction
(Global Business
Environment)

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
LO1..................................................................................................................................................1
a) Key factors of cost, market, environment and competition to drive global commerce and
trade.............................................................................................................................................1
LO2..................................................................................................................................................3
a) Complexities of strategic challenges faced by an organisation on global level of
environment ................................................................................................................................3
LO3..................................................................................................................................................6
a) Evaluate the impact of globalisation on organisation governance and leadership, structure,
culture and functions...................................................................................................................6
b) Influences of ethical and sustainable globalisation on organisations functions.....................9
LO4................................................................................................................................................10
a) Different ways decision making impacts on global context.................................................10
b) Key routes of internationalisation and its key barriers affecting performance of organisation
...................................................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Globalisation operations and measures that are been undertaken by an organisation that
will help and organisation to perform its business on international level. It requires specific
planning’s and development of strategies. The proper analysis of the strategic planning of the
operations will help in effective growth and development of operations and gaining a good
control over the business operations and this will help ion improving the performance of
organisation in a significant manner. Especially, the operations like globalisation will be deeply
influenced by the factors and other key drivers that may impact the performance of an
organisation. the globalisation operations will help in effective planning of operations which
assists an organisation to have an effect6ive growth and make suitable strategies for it. The
present report is presented in reference to South Africa based energy and chemical company,
CAMECO.
The report will lay an effective emphasis on the factors that impact cost, market,
environmental and competitive factors that will help in proper planning of the global trade and
commerce. Besides this, strategic challenges faced by the organisation while operating in global
environment. Besides this, the impact of organisational governance, leadership, structuring,
culture and function of the organisation with reference to ethical consideration. Also, different
ways of decision making and key barriers of industrialisation are been analysed that will help the
organisation top effectively carry out the globalisation measures within organisation.
MAIN BODY
LO1
a) Key factors of cost, market, environment and competition to drive global commerce and trade
Globalisation is a practice undertaken by an organisation to carry out its operations and
other business activities on international level. CAMECO will look after the proper planning of
the operations that are been carried out within the organisation that will help in carrying out of
services and business operations within multiple countries. The firm is required to look after the
costing, marketing and environmental factors that will help in carrying out of business operations
(Chua, Roth and Lemoine, 2015). Some major key factors that are been undertaken by the
organisation for globalisation purpose are:
Political: The political instability, Brexit and other governmental issues are certain
factors that can impact the performance of an organisation on a higher level. This will help in
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improving the quality of services that will help in proper rise in the operations and carrying out
of the facilities and functions which will help in carrying out the service measures and thus,
influences the performance of an organisation in a significant manner. Advantage of this factor is
that good and effective governmental support will help in carrying out of the operations that
leads to rise in carrying out of services by organisation. On the other hand, disadvantage is that it
can impact performance of an organisation in a negative way.
Economic: The financial condition of a country, GDP, purchasing power of people and
costing of products are certain factors that are been undertaken in consideration by CAMECO.
The biggest advantage of this factor is that it will help in proper planning of the services and
thus, supports in effective assessment of the cost related operations that can influence the
revenue generation of a firm. However, the negative factor is that financial factors like valuation
of currency, Inflation rate and other factors will influence their performance and thus, can impact
the performance of an organisation in an adverse way. Purchasing power and currency valuation
is lower in African countries as compared to other nations.
Social: On the demographical level, CAMECO is operating in Africa, which is one of the
most culturally rich regions. Hence, the firm is required to look after the varied needs
requirements of their buyers in different countries. Factors like innovations, CSR measures etc
can be followed by the firm. The biggest advantage of this factor is that it supports the
organisation to get a loyal and targeted audience to develop their business strategies effectively
and according to their demographical and cultural needs. On the other hand, the cultural
difference or restrictions for their services for example, chemical based products may lead to
failure of company’s structuring and business operations.
Technological: For an energy and chemical based organisation like CAMECO,
maintaining of technological factors are the most crucial and effective key factor that is required
to look after. It will help in proper rise in the execution of operations and developing an effective
innovative product that will impact the sales of the organisation. The geographical condition of
Africa supports the usage of solar and wind based energy that can prove out to be major business
opportunity for the firm. On the negative side, this can be said that these technological measures
require high end equipments that require constant maintenance and back up support. Also, not all
the company will readily implement these tools or techniques, affecting business of the
organisation.
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Environmental: This is a very complex factor that is required to look after by CAMCO.
The geographic or demographic environment will act as a catalyst for the organisation to carry
out their business operations in an effective way. On the other hand, the competitive environment
of a market is also required to look after by selected organisation. This will help in carrying out
of business operations and other growth measures (Meyer, and Peng, 2016). The major
advantage of this factor is that it supports the development of suitable strategies for the
organisation to carry out their business. However, the CSR measures and environmental
concerns are required to be followed by the organisation that will help in proper assessment of
operations in an effective way.
Legal: Legal obligations, employment laws and other legal considerations are been
followed by an organisation while carrying out of globalisation operations. The major advantage
of this factor is that it helps in improving performance of an organisation. Besides this, it will
help in setting up of effective code of conduct that will help in carrying out of services and thus
will lead to rise in effectiveness of firm to carry out business operations. On the other hand,
failing to meet any sort of legal requirements on international level will influence the business
operations and activities to a greater extent, impacting performance of CAMECO.
Besides this, the driving factors of globalisation like need of operating on international
level and improving the overall performance of organisation, will help in executing the business
operations on international level. Other than this, the digitalisation and emerging markets on
global level are also a very important factor that leads to implement the globalisation.
The use of digitalisation and technological tools which are implemented within the firm
for the sake of implementing the globalisation measures will help in enhancing the overall
performance of the organisation. This will help in analysing the market trends and customers
needs and develop the products or services accordingly the measures.
All these factors or drivers will influence the carrying out of strategic and growth
measures which will help in proper rise in performance and executing the trade operation on a
global level.
LO2
a) Complexities of strategic challenges faced by an organisation on global level of environment
Several complexities are been faced by organisation that will impact the sales and
operations of an organisation which will help in proper assessment and evaluation of the
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operations which are been carried out by the firm. This will help in executing the operations and
setting up of proper strategies and growth measures which will help in proper rise in carrying out
of marketing and promotional measures which will help in suitable rise in carrying out of
strategic management operations by the firm. Organisation like CAMECO will look after these
challenges which will help in carrying out of the business operations and growth measures in an
effective way. As globalisation is a risky process, maintaining it will lead to effective placing of
the operations that will impact the performance of the organisation in a significant manner.
For a company to go global can be a worthy attempt but it also brings some challenges
for the company so it is important for the company to have a proper plan in order to address the
challenges (Neil, 2018). There are various challenges which are faced by CAMECO due to
globalisation some important challenges can be described below:
Unfamiliar cultures: CAMECO may be unfamiliar of the culture of the country in
which it wants to expand into. The way in which people interact with each other in a social
setting, a company may be unfamiliar with the lifestyle of the people which may bring a huge
challenge for the company. CAMECO need to over come the cultural challenges in order to take
the business global.
Master marketing: Company should be familiar with the buying process of the country
in which a company wants to expand (Kasemsap, 2016.). It is important for the organisation to
reach to the prospective customers which is key element for taking the business to global level.
Another challenge faced by the organisation for the global marketing is trans-creation that is
adapting to marketing content of foreign market.
Tariffs and exports fees: Every country has some type of tariffs which is charged to the
company for brings goods into the country so CAMECO should know about the tariffs which it
has to incorporate in to its financial planning and is a challenging task. Also, company should
also have the knowledge of legal side of the globalisation as it may have to pay different kind of
fees like shipping and logistics.
Human Resource: It is an important challenge which may be faced by the company i.e.
meeting the requirement of manpower for the organisation. As company need to hire a new team
which may require the additional investment and selecting suitable employees is another
challenge for an organisation.
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Choosing the right country: Choosing a right country to sell company's product is
another challenge for an organisation and it needs enough research to understand the suitable
place for expansion.
Properly adapting content to the culture and documents: Adapting to the documents
and content to the culture is challenge for an organisation so that potential customers could be
able to read and understand the sales materials, instructions and documents which are important
for operating the business in different countries. CAMECO has to do more than translating the
documents but it also adapting to the culture of the country so that a company is optimally
understood by the people.
Organisational communication: It is also one of the huge challenge which may be
faced by the company by going globalisation i.e. the way of handling the team members and the
efforts to communicate, report and track their efforts is also a challenging task.
Addressing the global challenges will help the company in meeting the global challenges
which can be done formulating the proper strategies (Lang and Heasman, 2015). A company also
face the challenges in developing the strategies in addressing the global challenges some of them
are mentioned below:
Uncertainty: Uncertainty about the future is a strategic challenge which is faced by
CAMECO as it is not possible to predict the future like customer trends, market trends, policies
etc of the country in which a company wants to enter into. Future uncertainty brings the
challenge in the strategy development for meeting the challenges of globalisation.
Financial planning: It is another strategic challenge which may be faced by the
organisation is preparing a proper financial plan for going globalisation it has to make many
financial decisions like cash flow, profit margins, operating costs, salary, etc (Aguilera and
Crespi-Cladera, 2016). These are the financial challenges which may be faced by the
organisation while addressing the challenges of globalisation.
Regulation and compliance: As CAMECO deals in uranium products and is the world's
2nd largest uranium producer as Uranium may result in to many harmful effects on the human
beings. So it is important for an organisation to abide the rules and regulations of the country and
any mistake may result loss of the organisation.
5

Technology: It another strategic challenge which may be faced by CAMECO is adoption
of the technology and this factor have an impact on the business a company is in. As, different
countries have got different technologies it may be a challenge for an organisation the type of
technology to adopt.
Market research: Market research is one of the most important challenges which an
organisation have to face (Efrat, Gilboa and Yonatany, 2017). Market research is not an easy task
it requires huge investment and it is important for an organisation to do the market research
properly which will form the base of global strategic decisions in meeting the global challenges.
Recommendations:
 A company should formulate an effective marketing plan for entering the potential
markets.
 It should make a proper market research which will help to meet the challenges.
 It should hire the financial consultant of the country which it wants to enter into.
 It should develop an effective financial plan by framing an effective budget for meeting
the challenges like human resource, technological needs, documentations, etc.
 It should properly analyse the political and legal factors related to the business that
CAMECO is in.
LO3
a) Evaluate the impact of globalisation on organisation governance and leadership, structure,
culture and functions
Globalisation measures that are been carried out by the organisation will impact the work
culture, and functions will help in carrying out corporate governance measures. The globalisation
functions undertaken by organisation will help in improving its performance. It helps in carrying
out of services that supports in improving the globalisation measures of the organisation. The
international expansion operations carried out within the organisation will help the firm to
improve their performance (Mohd Suki, Skjærseth and Skodvin, 2018.). Global leadership can be
termed as the leading the organisation ans its operations on international level.
6

Structure: Other than this, they will lay a significant organisational structure of
organisation that will support a rise in communication within the firm. The development of
proper work culture will be is observed in order to maintain globalisation measures of the firm.
Functions and organisational governance: In order to improve performance and
cultural stability, management of selected enterprise will see through the governance measures to
monitor functionality of every employee and department of enterprise. The globalisation
practices will help in proper assessment of operations and thus will lead the organisation to carry
out the growth measures within the firm in an effective way.
Culture: Culture can be defined as the set of functions and mindset that will help in
improving the overall establishment of globalisation measures by organisation. Globalisation by
CAMECO will look after the adoption and recruiting of culture and work force from different
background, respectively. As per Hofstede's cultural dimension, it will promote collectivism and
assist in uncertainty avoidance (Teece, 2018). Besides this, the assessment of power distances
will help in setting up of proper planning of the strategies leading to have the functionality and
setting up of operations that will help in carrying out of globalisation measures. Other than this,
the organisation will help in setting up of a masculine work culture, which will help the
organisation to have competitive advantage within international market.
This will include different theories like McKinsey's 7 S model top have better
understanding about impact laid by globalisation on governance and leadership, structural
functions and culture of the firm. It includes:
7

This will include the hard and soft elements which will impact performance of the
organisation in a significant manner. It is as follows:
HARD elements:
Strategy: This will include the details of globalisation strategy that will be followed by
CAMECO. It helps in setting up of ideas and guidelines which will impact performance of the
organisation. The issues associated with globalisation are identified proper solution are been
presented for it.
Structure: It includes the organisational or divisional structuring of CAMECO and will
help in improving communication and thus, supports the execution of proper operations and
facilities. It assists management of an organisation to carry out globalisation measures within the
organisation.
8
Illustration 1: McKinsey's 7S Model
Source: Story, 2019

System: It will include the processing units and IT tools that contributes in application of
globalisation measures by an organisation. Being an energy and chemical service provider
enterprise, CAMECO will look after proper management of services that supports an
international expansion of organisation.
Soft elements:
Staff: It includes the employees or human resource of an organisation. Proper team
building measures and optimal utilisation of their knowledge and skills will be observed that
supports globalisation of the firm.
Skills: It includes the specific knowledge or attributes that will help in carrying out of
globalisation measures which supports a good rise in expansion measures undertaken by the
firm. It encourages a team or department to improve globalisation measures by and organisation.
Style: This factor will include the cultural aspects of the organisations that indicates the
leadership measures or styles taken by organisation. This will help in identification of measures
an allocation of services and resources to an employee or department (Ferrell and Fraedrich,
2015).
Share Values: It includes all the ethics and other value based considerations which will
help in improving performance of the organisation. These ethics will drive the organisation to
implement the effective cultural and legal obligations within CAMECO.
All these factors will help in proper planning of services and effective growth measures
which supports implementation of globalisation measures undertaken by the firm. An effective
application of suitable leadership skills and organisational style that will help in suitable
implementation of hierarchical measures within organisation (Mellahi and et.al., 2016). Besides
this, the operational functions of an organisation, leading to expansion of organisation on
international level. Currently, CAMECO is operating within energy and chemical industry,
globalisation will play a crucial role in setting up of growth measures which will help in
implementation and sustaining internationalisation functions within the chosen enterprise.
b) Influences of ethical and sustainable globalisation on organisations functions
The globalisation measures will help in proper planning of the operations that will help in
proper management of operations which supports the sustainable existence of CAMECO in
international market. This will help in carrying out the operations which will help in improving
the operations and thus will lead to setting up of ethical policies which will help in proper
9

planning and operations which will help in carrying out the operations leading to management of
operations that will help in proper assessment of operations that will help in carrying out of the
operations and thus will lead to rise in setting the business enterprise to establish on international
level (Alon and et.al., 2016). Different functional department of CAMECO will look after the
proper planning of globalisation measures in an effective way such as:
 The following of ethical work policies will help in setting up of suitable work
environment within organisation which will help in improving the performance of
organisation and its work place. The employees will work in coordination which will help
in setting up of business operations which will help in carrying out of operations in an
effective way.
 The marketing department will see through suitable promotional measures and execute
the work policies and functions which will help in improving awareness of customers
about the products offered by CAMECO, leading to increase in brand equity. Other than
this, this will help in carrying out of business operations effectively.
 Sales department will look after the stable and ethical collection of sales data which will
help in proper planning of services and development of products or goods by the chosen
firm. The higher sales is a KPI for the increased brand awareness and equity in local as
well as foreign marketplace (Chiu, 2018.).
 Logistics department will look after allocation of various resources and raw material to
develop high quality products and services for the firm. Different quality standards that
are been set within various countries will look after proper rise in operations which
supports improvement of product quality and having a sustainability within a foreign
market.
Besides this the globalisation operations will see through setting up of effective work
environment policies which will help in improving development facilities within the firm. This
will help in setting up of operations which will help in improving the quality of services and
thus, will help in carrying out of operations related to globalisation. It assists the organisation to
improve the quality of products and services that are been taken within organisation (Akter and
et.al., 2016).
The ethical consideration will help in proper planning of services and thus will lead the
organisation to improve the sales quality and thus, will improve the operations which will help in
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setting up of the operations which recategorise the marketing and globalisation measures which
are been carried out by the organisation. Following of these ethics will help in carrying out of
operations which will improve the overall performance of organisation.
Suitable implementation of ethical policies and functions which will help in proper
assessment of operations which will help in carrying out of strategies leading to globalisation by
CAMECO. Following of employment laws, trade regulations, quality standards etc will help in
improving establishment of organisation on international level.
LO4
a) Different ways decision making impacts on global context
On the global business environment, the decision making by the organisation like
CAMECO will lay a significant influence on globalisation operation's. This measures will help
in improving the performance of the organisation on a higher level (Young, 2020). This will help
in proper planning of operations and gaining a good control over the operations which supports
expansion of business activity on international level. The decision making is a task extensive
process, includes the effective assessment of requirements which will help in suitable planning of
activities and thus will lead to rise in carrying out of globalisation measures. It also supports a
good planning risk factors, in order to sustain proper globalisation operations, which will help in
improving the performance of selected business enterprise. The setting up of operations will help
in deciding the policies for expanding the business on global level (Kostova, Marano and
Tallman, 2016).
There are various factors which are been taken within an organisation that will help in
setting effective operations and other policies which will lead to rise in expansion measure of
CAMECO. Some major factors of decision making that will influence global existence of the
organisation on the higher and significant level are:
Customer and investors demands: Customers and investors are two major and most
important stakeholders of a business. Hence, in this case, the organisation is required to look
after proper planning of strategies that will impact the sales and operations which will help in
meeting the operations and thus will help in setting up of operations which will help in carrying
out the decision making process within an enterprise. The assessment of needs of customers and
undertaken by the organisation helping in meeting their needs and thus, improves the
performance of organisation (Thompson, 2015).
11

Supply chain management: Being a production firm, CAMECO will look after proper
planning of the operations which will help in proper assessment of the operations will help in
carrying out of the operations which will enhance the quality of services in an effective way. The
management of selected organisation will see through planning of services which will help in
carrying out of services that will lead to effective carrying out of services. Meeting the supplies
and deciding effective policies will help the organisation to improve their performance of
international level.
Ecological factors: The environmental and ecological factors that are been carried out by
the organisation will see through the effective planning of services which will help in effective
planning of the operations and thus will help in carrying out the operations which will help in
carrying out the decision making process in order to maintain the CSR and other environmental
factors taken by the organisation (Dorobantu, Kaul and Zelner, 2017).
Governance and political factors: CAMECO will look after proper development of
strategies which will help in proper assessment of operations which will help in carrying out of
services which will help in improving qualities of operations and other influencing factors which
will support a good rise in capabilities which will help in supporting effective work practices and
operations.
b) Key routes of internationalisation and its key barriers affecting performance of organisation
An organisation like CAMECO will look after the proper planning of the
internationalisation process that will help in carrying out the operations and thus, supports
meeting of operations which will help in carrying out of the operations which supports an
effective rise in the overall performance of the organisation (Wang and et.al., 2016). Some major
routes that can be effectively undertaken by the firm for the international expansion of the
business operations that are taken by the organisation.
Head office: CAMECO can operate from South Africa to various countries which will
help in carrying out of operations that will help in proper assessment of operations and thus will
help in proper planning of the strategies to expand on international business. Besides this, the
organisation will look after the proper planning of structuring of operations leading to and
effective route for international expansion.
Franchising: Firms can promote setting up by the collaboration with their local agents
through proper planning of services and accessibility of operations to initiate their business
12

operations in foreign market place (Waddell, 2017). The firm can also opt for providing
franchising which will help in selling the products of the and hence, will look after improving
sales. It further helps in penetrating within the foreign market. This will help in carrying out of
services that supports a rise in business operations of the organisation, emerging as an effective
route for market expansion.
Joint venture: Selected enterprise can also enter into a contract with other firm in a
foreign country. This will help in improvement of operations and thus will lead to rise in
carrying out of sales and market expansion. However, using this expansion route is not much
beneficial as the profit and market share is divided among various partners.
Acquisition of a foreign enterprise: CAMECO can opt for acquiring a small but
established company within local as well as foreign market as expansion route. This is a
beneficial approach of internationalisation as it increase the product portfolio and improve
market presence of selected enterprise (Fussler, Cramer and Van der Vegt, 2017).
Besides this, different barriers of globalisation can impact the international routing of
organisation. Some major expansion barriers are:
 Breaking cultural barriers : As CAMECO is operating in South Africa, its cultural
background is very different from that of other countries within and outside Africa.
Hence, bridging this cultural gap is important to carry out globalisation measures.
 Technological advancement: Technical advancement is higher in western countries as
compared to Africa. Thus, crossing this barrier and meeting technological standards
within a country is very important.
 Legal obligations: CAMECO is required to look after different laws, terms and
regulations that are set by different countries and trade unions which will help in
improving brand performance and image in market.
 Cultural factors: Difference in socio cultural factors and mindset will be a major factor,
that CAMECO will look after within Africa and other foreign countries in order to
sustain its globalisation measures (Appelbaum and et.al., 2017).
CONCLUSION
It can be concluded from the report that for an organisation in order to go global it has to
understand the global environment as there are various factors which have an impact on the
strategic decisions of an organisation. Present report also concludes that there are various
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globalisation challenges which an organisation has to face and in order to address these global
challenges it also brings many strategic challenges for an organisation. It can also be concluded
that globalisation may an influence on an organisational culture which can have an impact on the
structure, governance and culture of an organisation. So it is important for an organisation take
the decisions which can help the organisation to meet the different challenges of globalisation. It
can also be concluded from the report that there are various routes of internationalisation which
help the organisation.
14

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