Unit 18: Global Business Environment - CAMECO's Strategic Analysis

This report provides a comprehensive analysis of CAMECO's global business environment, focusing on the impact of globalisation on its strategic direction. The report begins by examining the key factors that drive global commerce and trade, including political, economic, social, technological, environmental, and legal considerations. It then delves into the complexities and strategic challenges faced by organisations operating on a global level, such as cultural differences, market research, tariffs, human resources, financial planning and regulatory compliance. The report offers specific recommendations for CAMECO, including formulating effective marketing plans, conducting thorough market research, and developing robust financial strategies. The conclusion emphasizes the importance of understanding the global environment for effective strategic decision-making, providing a valuable resource for students and professionals alike. The report utilizes various academic sources to support its arguments and recommendations.

Impact and
strategic direction

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.

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.

Cont….
• 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 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.
• 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.

Cont….
• 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.
• 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.

Cont….
• 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).
• 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.

Cont….
• 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.

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
operations which are been carried out by the firm.
• 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).

Cont…..
• 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.

Cont….
• 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.

Cont….
• 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.

Cont….
• 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.
• 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.

Cont….
• 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.

Cont….
• 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.

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.

REFERENCES
• Aguilera, R. V. and Crespi-Cladera, R., 2016. Global corporate
governance: On the relevance of firms’ ownership structure. Journal of
World Business. 51(1) pp.50-57.
• Akter, S. and et.al., 2016. How to improve firm performance using big
data analytics capability and business strategy alignment?. International
Journal of Production Economics.182. pp.113-131.
• Alon, I. and et.al., 2016. Global marketing: contemporary theory,
practice, and cases. Routledge.
• Appelbaum, D. and et.al., 2017. Impact of business analytics and
enterprise systems on managerial accounting. International Journal of
Accounting Information Systems. 25. pp.29-44.