Impact of Globalization on CAMECO: Organizational Analysis Report

This report examines the profound impact of globalization on CAMECO, a South African chemical company operating globally. It begins with an introduction to globalization and its drivers, such as containerization and technological advancements, and analyzes the strategic complexities and challenges CAMECO faces, including political, economic, social, technological, legal, and environmental factors (PESTLE analysis). The report further explores how globalization influences CAMECO's organizational functions, culture, structure (hierarchical), governance, and leadership, using McKinsey's 7S model to assess alignment. The report also evaluates the influences of sustainable and ethical factors on CAMECO's operations and decision-making processes within a global context, and explores the internationalization of the firm. The report concludes by summarizing the key findings and implications of globalization on CAMECO's strategic direction, providing insights into how the company can navigate the complexities of the global market.

IMPACT AND STRATEGIC
DIRECTION

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1 Introduction to concept of globalization...........................................................................1
P2 Challenges faced by organisations while operating in global environment......................2
P3 Influences of globalization on organizational functions, culture, structure, and governance4
P4 Evaluation of the influence of sustainable and ethical factor on functioning of CAMECO. 6
Critical Evaluation..................................................................................................................7
P5 Decision making in global context....................................................................................8
P6 Internationalisation of the firms........................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Globalisation is one of the most important aspect that has shaped our world since the past
30-40 years. Today, organisation across the world thrive in an environment where its easy for
them to grow on a large scale by using appropriate strategies and developments. The below
report identifies the key factors which drive globalization and its impact on the businesses. The
chosen organisation is CAMECO. The organisation is a chemical country based in South Africa.
The company is having 3,300 employees working globally (Pepper, 2017). The report
determines the strategic complexities which the company faces while operating in a global
environment. Along with it, it analyses in what manner operating in a global market influences
the structure of its organisation and its culture and functions. Also, the report evaluates the
influence of globalization on organizational decision making and strategies.
MAIN BODY
P1 Introduction to concept of globalization
An integration of markets in global economy is known as Globalization. This concept has
led in increasing of interconnections between national economies. Due to a number of reason the
pace of globalization has increased since past few decades. The reason include a rising demand
of product and services in international markets, the arrival of internet, social media etc.
In context of CAMECO, globalization has enabled worldwide access to sources of raw material
which are cheap. Also, it has enabled the organization to be cost competitive in its market.
Driving factors of Globalization Containerization: Today, cost of ocean shipping has came down. Due to this, bulk
shipping and other efficiencies have become more cheaper, and for companies such as
CAMECO it has become easy to transport and buy products from different countries
across the world easy. Technological Change: Technological change has allowed organizations across the
world to reduce the cost of communicating and transmitting easy. It has made companies
to build platforms where they can share information fast and provide effective products
and services to their consumers. This in terms, has led globalization to rapidly increase. Economies of scale: Economists across the world believe that from an increase in
minimum efficient scale associated with some industries. From the rising of MES, the
domestic market has become too small to satisfy the selling needs of these industries.
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This has made companies such as CAMECO to look for global consumers and fulfill
their needs. This has rapidly brought globalization in an increase and countries to fulfill
their economic needs.
Impact of digital technology upon Globalization
Digital technology has transformed the way we see our world today. The rise in digital
technologies has allowed people across the world to share their views, opinions, likes and
dislikes etc. on a single platform easily. This has brought cultures, nations, individuals closer to
each other. Along with it, it has made people efficient in choosing what they want easily and
fulfill their personal needs and demands. The demands have made industries and corporations
across the world such as CAMECO to produce its products on large scale and earn good
profitability. Digital technology has also allowed firms across the world to advertise and promote
their products easily on platforms such as social media, and internet. These advertisements and
promotions have increased the demand of products from global consumers and has helped to sell
their products in global market. Hence, it has brought a huge increase in globalization and has
allowed companies to gain new markets altogether.
P2 Challenges faced by organisations while operating in global environment
PESTLE Analysis of CAMECO
 POLITICAL - The political environment across the world and majorly in the countries
where CAMECO is selling its products and services have a large impact on the
organization. Factors such as government resource allocation and time scale has made it
difficult for the company to make its place in United States. The government of the
country have allocated very fewer resources to the organization to thrive in the markets of
USA. This has done so that the domestic companies dealing with chemicals and products
in America tends to earn large profits and bring growth to the economy of USA.
 ECONOMICAL: Factors such as availability of core infrastructure in the countries in
which the organization wants to grow itself impact the company and its decision making
as well. For example, recently CAMECO wanted to set its new plants in Tanzania in
order to produce raw materials in order to improve its products availability.
 Lack of availability in the country to set up the core infrastructure made it difficult for the
country to set up its plants and ensure new product availability in the market. Although,
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better exchange rates in countries has helped the company to sell its products and services
easily and has allowed it to grow on large scales.
 SOCIAL: The education level of the community in which CAMECO is selling its
products and services, the power structure, gender roles, societal norms and hierarchy are
the major social factors impacting the company. For example, the increasing trend of
inequality in western countries has altered the power structure which was persistent in the
society from the past 6-7 decades. The global debate of gender equality and feminism has
made the organization to recruit more individuals from different genders.
 TECHNOLOGICAL: The arrival of new technology in production of chemical products
in global market is making CAMECO to adopt these technologies to serve its consumer
fast. Along with it, Artificial Intelligence has allowed the organization to adopt AI and
reduce the usage of manpower.
 LEGAL: Strict policies in different countries such as heavy taxation and legal
implications while selling of products and services impacts CAMECO on a large scale.
For example, while selling of its chemical products and providing energy services in the
market of China, the company has to go through a variety of procedures and implications.
These implications later creates difficulty for the company to earn set profits and gain
desired market growth.
 ENVIRONMENTAL: Environmental factors such as global warming and climate
change impact the company and its services on a large scale. For example, the recent pact
on Paris Climate Agreement, 2017 signed between countries across the world has made
energy and chemical producing organizations to install emission control systems. This in
terms has increased their expenses and has reduced profitability.
Strategic challenges and complexities faced by CAMECO in global markets
 UNDERSTANDING OTHER LANGUAGES AND CULTURES: It becomes hard for
the company to set its foot in the countries without understanding languages and cultures
easily. CAMECO has to develop its resources according to the cultures and people
residing into its to sell its products and services and make strategies accordingly. For
example, while setting up its infrastructure and new plants in Sub-Saharan continent the
organisation has to understand the particular needs of the people residing in these nations
and what is are their needs. Along with it, their language needs to be understood as well
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to remove the language barriers. The organisation in order to deal with this has made use
of strategies such as setting up a team to understand the culture and needs of the people,
and recruiting local individuals in order to reduce the barriers of language.
 COMMUNICATION AND TECHNOLOGY: Different countries have different
technologies serving their needs and purpose. The updates in technology takes time to
reach different places across the globe. CAMECO in order to ensure better product and
service efficiency needs to have advanced technology. The late arrival of update in
technology in different countries and places which are still developing makes it hard for
the country to maintain its efficiency.
 SUSTAINABILITY: Today, sustainability is one of the major requirement seen in the
global scenario. Organizations across the world are being more sustainable in order to
serve their consumers well and better their products and services. For CAMECO, it has
become important to ensure sustainability as well. In order to become more sustainable
and being environment friendly the company has adopted strategies such as installing
emission control systems, increasing awareness about being environmental friendly and
making the surrounding environments of its plants more green and sustainable.
P3 Influences of globalization on organizational functions, culture, structure, and governance
CULTURE, STRUCTURE, GOVERNANCE AND LEADERSHIP IN CAMECO
Cameco structure is hierarchical. The organisation is having a set of board of directors,
Chief executive officers and managers along with the employees. These all people have their
separate duties and tasks. This structure helps the organisation to increases CAMECO's overall
profitability and business. The organisation is also having a diverse workforce from which it
generates a variety of ideas to overcome complex situations and build new strategies. Along with
it, the organisations governance states that the Board of directors are solely responsible for
management and supervising business and its activities. All of them maintain the framework of
governance in order to implement the broad areas of responsibilities which includes proper
balancing and checks in order to manage an effective decision making (Pepper, 2017). It
showcases that the workforce in CAMECO is responsible for day to day activities taking places
in the organisation and is having a committee which performs their own separate responsibilities.
Also, it can be seen as it's not appropriate for the business to find a suitable leadership style to
mange the business which in turn also impacts the organisation and its business.
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MCKINSEY'S 7S MODEL
This model is created in order to help a business such as CAMECO and its management to
understand in what ways their organization has been aligned. Also, at what places where it
requires improvement. The McKinsey's 7s model explored below:
 Structure: The structure of the is made in a way in which both informal and formal task
allocation and responsibilities are performed by the employees and the managers in order
to attain the major objective of company such as earning profitability and gaining market
advantage (Planter and Ferguson, 2018). The organisation structure is development
oriented and supportive. In order to develop as per the global needs, it has been seen
important for the organisation to improve itself as per the consumer demands and its
needs of profitability. .
 System: The system or processes of CAMECO are quite easy. It is made in such way that
the employees tend to generate a variety of ideas which helps the organisation to
accomplish the set goals.
 Style: The leadership of the organisation conveys a single message to the management
and employees of the company which is to work as per their full potential. The leadership
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(Source: McKinsey's 7S model, 2016)

style of the company is very participative in which the leaders are very involved into the
process of decision making.
 Staff: The organisation is having a very diversified cultured members of staff in which
they perform their personal duties and tend to help each other in required situations.
 Skills: The organisation has recruited such people which are having the skills needed to
be deliver in the transformation of cost strategies of management for a better and efficient
system functioning (Planter and Ferguson, 2018).
 Strategy: It organisation needs to be adopting different set of strategies in order to
succeed. For this CAMECO needs to compete in a environment which is uncertain,
complex and volatile.
 Shared values: The company is serving to to provide the top quality chemicals and
materials to its customers across the globe.
CHECKLIST
Structure The structure of the organisation is very supportive and its leaned towards
fulfilling customer demands
System The system of the organisation is management oriented and its serves the
purpose of fulfillment of the needs of customers.
Style The style is Autocratic and serves the purpose of growth and learning.
Staff Its staff is understanding and skilled as per the needs and requirement of
organisation goals and duties.
Skills Good decision making, and critical thinking. Improvement is needed in
leadership
Strategy The strategy is to develop core areas for employees to improve and provide
them with new skills to improve decision making and critical thinking.
Shared Values The culture of the organisation is harmonizing, growth oriented and
successful.
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P4 Evaluation of the influence of sustainable and ethical factor on functioning of CAMECO
In CAMECO, the organisation is dealing with a number of sustainability and ethical
factors which impact the business while dealing which impacts the market dealing in global
products and services. These factors are explained below:
 CAMECO while following the sustainability and ethical guidelines, reduces the risk of
being impacted by the environmental damages being done to the organisation. It can be
seen that an organisation or a business creates its value from the generation of consumer
demand and from making its future earnings secure. CAMECO when follows all
sustainability and critical laws, it tend to develop a image of the organisation and its
business on a global level.
 While following rules and regulations of sustainability the business of CAMECO creates
a positive impact on the activities of its business and overall functioning of the
organisation (Oliver and OĻzberk 2016). This helps the organisations ethics to be valued
where the needs to change itself and the priorities which are set in order to correct the
forces helps to promote the activities of business and increase its profitability and growth.
 When CAMECO follows its ethics, the organisation tends to generates a new demand for
services and products to its customers. It has been seen that the organisation while
dealing with chemicals maintain its business to follow the required ethics. It helps the
organisation to maintained its standards and works according to the set regulations.
Critical Evaluation
Above evaluations critically evaluates that Cameco's working culture is diverse in which
it is having different employees which are helping in raising its overall profitability of the
company.
Hofstede's dimension of Culture
This cultural dimension is used to identify the communications which are cross-cultural
and its also describes the impacts which it is having on the society and its culture. Along with, its
explains which values are used within the organisation and in what ways these values plays an
important role in the behaviour. All the four dimension of the Hofstede's culture are explored
below:
 Individualism: The individualism culture showcases a degree in which people of a
society are set and integrated in groups. It has been found out that an individualistic
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society tend to have loose ties which are said to be in relation with an individual. The
individual culture often tends to brings success but it requires a lot of attention and
determination by the one who is involved in the process. In case if it is adopted in
CAMECO, it is making it hard for the organisation to achieve set growth and
development.
 Uncertainty avoidance: In this culture the members of a particular society tend to
respond to ambiguity or uncertainty. Cultures which are seen to be scoring high on the
dimension of uncertainty avoidance, often avoids risk-taking. Organisations performing
with these set of cultures tend to have large rules in place in order to ensure that the
which are working for them are not deviating from the standards accepted by the
organisation (Hassan, Arnold et. al., 2018). Along with it, these culture make the
organisation avoid risk-taking and risks both. Also, Uncertainty avoidance helps the
leadership of the organisation to achieve development and growth in making its workings
easy.
 Power distance: The power distance culture is defined as to a set extent in which the
members which are having less powers in an organisation accepts that power is being
distributed unequally in the organisation. A higher degree of index, on the other side
showcases that company's hierarchy is established clearly and is executed properly.
 Masculinity/ Femininity: CAMECO's working culture is seen to very diverse in nature.
It does not discriminates its people their genders. It explains that the businesses in which
masculinity is observed are having more members which are male in the cultural
workings and is often dominated by the male members. Businesses which are feminine
dominated have a huge sum of working women members (Siddiqui and Dincer, 2017).
The culture of the organisation is neutral and it is neither dominated by female or male
members.
P5 Decision making in global context
The decisions are made upon base of knowledge and sound reasoning helps a business to
creates prosperity and growth. Allowing better decision for the company is always leads it
toward success and growth (Green, 2018). The major role of legal department in daily operation
of the business organization in the career choices a takes a business towards success and growth.
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There are different ways of decision making so that Cameco can work in effective way and some
of them are as follows:
 As Cameco wants to enter into new market, then it is quite essential to first develop a
good market research so that it helps to take a better decision for the growth of a
business.
 The manager can collect enough information regarding the ethics so that it helps to take
effective decision for the company's welfare. Apart from this, enough information is
collected, then manager present this data in meetings is and then different person present
their views on it (Kasemsap, 2018).
 It has been analysed that evaluation is especially helpful in the business environment
because of interdependency of an individuals and department in executing task and also
addressing the goals.
 Apart from this, the business needs to follow all the ethics and laws when a firm wants to
enter into another country so that they take better decision for welfare of the company.
P6 Internationalisation of the firms
There are many entry modes for internationalisation for a firm, some of them are as
follows:
Exporting: It is one of the most simple process of selling goods and services from one
country to another. Such that in direct sales, the company directly sell their products and it is one
of the traditional and well established methods in order to reach in target country, because of no
investment in foreign production.
Advantages: The biggest advantage of using this mode of entry is that it is fast entry
mode and a company needs not to face any risk (Erpenbeck, 2017). The method is also
traditional and mostly used when a company wants to maximize their profit by other country.
Disadvantages: There are variety of disadvantages using this mode of entry such that the
negative environmental impact upon the transportation and if the owner have low local
knowledge then it also affects the business in negative way. Therefore, most of the company did
not follow this entry mode.
Franchising: It is one of the most common method which is used by many large
business. It refers to business relationship in which the owner authorises another party that use
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their brand, product and business system and the process in return for adequate consideration as
well.
Advantages: It is one of the less risky strategy and provide better marketing support.
Disadvantages: Sometimes, it may be difficult for maintaining control over franchisee
and opening a franchise rather than starting the own business. Owing a personal offers a
guarantee of a success because it is entirely based on the franchisor's success.
Joint Venture: This is the strategy when company wants to enter into foreign market by
joining the hands and also sharing the ownership and management with some another company
(Connelly and et.al., 2018). Further it is used when two or more companies wants to achieve
same objectives and then they expand the international operations as well. This entry mode is
useful in order to meet out the shortage of financial resources as well.
Advantages: It requires an optimum use of resources and even the partners are also able
to learn from each other and develop strategy to overcome the complex situation as well.
Disadvantages: This strategy is considered costly and there may be conflicts in
management as well. It is also realised that cultural and political stability also cause a threat for
the successful operations.
Merger and acquisition: It is also one of the most common method which can be used
by Cameco in which a merger is a combination of two or more distinct entities into one, and a
company may also merge into single servicing entity. While on the other side, an acquisition is
controlling interest in a company by another firm. But it does not mean that the company lead to
dissolution such that its shares are not acquired.
Advantages: It is one of the most simple method and the company also did not want to
invest any high amount on it. Simple and cost effective method than all other routes.
Disadvantages: This strategy creates distress within the employee base for each
organization and may also increase the amount of debt that is owed. Further, it is not easy to
consolidate because of the difference between corporate culture.
Justification: From the above mentioned entry routes, it is recommended to Cameco to
adopt franchising as an internationalisation route because this method is less risky and there is
no need to invest high amount to sustain its brand image in other country. Apart from this, the
method is also not as risky as others methods are and if the quoted firm used Franchising then
there is no need to make efforts for attract customers. Apart from this, the firm also take advise
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