CAMECO: Globalisation Impact and Strategic Direction Analysis Report

This report provides a comprehensive analysis of the impact of globalization on CAMECO, a rapidly growing chemical and energy firm. It begins by defining globalization and exploring its driving factors, including technological advancements, political drivers, and increased demand. The report then examines the significant influence of digital technology on globalization, highlighting its role in minimizing communication barriers and reducing transportation costs. A PESTLE analysis assesses the political, economic, social, technological, environmental, and legal factors affecting CAMECO's operations. The report identifies key challenges of globalization, such as currency fluctuations, cost considerations, legal frameworks, and cultural identity loss, and offers strategic recommendations to overcome these challenges, including market research, strong consumer relationships, and adherence to legal guidelines. The report also explores strategic expansion routes for the organization, and concludes with an overview of the 7S model and Hofstede's cultural dimensions. The report's findings are crucial for understanding the complexities of operating in a globalized environment and developing effective strategies for sustainable growth.

IMPACT AND STRATEGIC
DIRECTION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Concept of globalisation..........................................................................................................1
2. Driving factors of globalisation...............................................................................................2
3. Significant impact of digital technology upon globalisation...................................................3
4. PESTLE analyses of CAMECO..............................................................................................3
5. Challenges of globalisation and strategic challenges for organisation....................................4
6. Recommendations to overcome these challenges....................................................................5
TASK 2............................................................................................................................................6
1. Structure, culture and governance of organisation, Mckinsey’s 7S model.............................6
2. Explanation how 7S’selements influenced by global operations, application of Hofstede’s
dimension of culture....................................................................................................................8
3. Ethical and sustainable factors that need to be considered by company.................................9
4. Influence of these factors on decision making in global context.............................................9
5. Strategic expansion routes available for organisation...........................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
In the recent era each firm aims to expand its business into international market. This
supports in raising profitability of company and gaining competitive advantage as well. Present
study is based on CAMECO company, it is the fastest growing chemical and energy firm.
Recently firm is operating its business in Australia, Gabon etc. many countries (Pagano and
et.al., 2016). Uranium, NUKEM and fuel services are three major segments on which enterprise
is recently working. Recently it has employed 3300 employees those who are working across the
world. Furthermore, in the year 2016 it has generated 2.431 billion revenues. Current assignment
will discuss concept of globalisation. Furthermore, it will describe significant impact of digital
technology upon globalisation. Report will explain challenges of globalisation for the CAMECO.
In addition, 7S model will be explained. At last study will discuss expansion routes of
organisation with their advantage and disadvantage.
TASK 1
1. Concept of globalisation
Globalisation can be defined as integration of markets that leads to enhance
interconnectedness between nations. It is the process through which companies can make
connection with other nations and can exchange values, ideas, goods easily. This is the concept
that encourage producers and support business in raising economic of scale of company.
Globalisation has helped in reducing monopoly profits and have also helped in raising its brand
image in international market (Tie, 2019). Now organisations have benefit of free movement of
labour. There are so many countries that have strong economic position and have successful
trade agreements with other regions. If any firm plans to enter into such markets, then it supports
business in generating more funds and gaining more return over its investments.
Globalisation has enabled firms to source raw material at affordable rates thus, now
companies are able to run its operations in cost effective manner. That is the reason that now
many big firms are able to fulfil needs of stakeholders successfully. It is seen as phenomenon
through which technologies, social cultural values can be transformed to other countries. Now
enterprises have benefit to import, export goods and services across the world (Zajda, 2015).
There are so many reasons that have supported in boosting opportunity of globalisation.
One of the major reason is development of technology. Over last few years’ technologies have
helped in improving communication with foreign consumers and now c shipping of commodities
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can be done easily at extremely low cost. Capital mobility, free trade movements act as stimulus
(Hernández and Nieto, 2016).
2. Driving factors of globalisation
There are so many components that drive globalisation, these are explained as below:
Technological advancement
This is one of the major factor of globalisation, sustained changes in technologies has
helped in reducing transmitting cost. With the help of latest technologies firms can communicate
with international consumers easily. As CAMECO is planning to enter into global market thus,
use of advance technologies support the firm in making connection of foreign consumers and
knowing more about market condition (Czaika and Neumayer, 2017). Web based technologies
have reduced time and cost that aid companies to successfully enter into global market.
Containerisation
As shipping cost has been reduced, now bulk shipping is also possible. This facility aids
in minimising transportation cost and minimising unit cost of products that ultimately helps in
raising profit of organisation (Ferro and et.al., 2017).
Political drivers
This is another essential factors that drive globalisation, liberalized trading rules, foreign
direct investment policies allow and motivate companies to enter into international market.
CAMECO is operating in Australia, Canada and many more nations. Political stability and
liberalised norms support organisation in running its operations in global market successfully.
Competitive driver
High competition is another driver of globalisation, this high competition force
CAMECO to enter into international market and develop relationship with other countries
through trade activities (Geppert, Matten and Williams, 2016).
Increase demand
Improving income sources, standard of living of people raise demand of products to great
extent. As now consumers like to buy high quality products. Most of the firms are engaged in E-
commerce and increasing demand encourage the firm to establish their branch in that location as
well. Customers look upon the quality of products first and also check its availability in near
market. This element drive globalisation and organisations start operating their business in
international market alone with domestic market (Trindade d’Ávila Magalhães, 2018).
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3. Significant impact of digital technology upon globalisation
There is significant relationship between globalisation and digital technologies.
Advancement of technologies minimise communication barriers and support in raising demand
of products and services in international market. As with the advancement of technologies
transportation cost has been reduced thus, global sourcing has become possible at affordable
rates. Patented technology is another significant point that has impact upon globalisation. Firm
that has its own patent rights can exploit international market without emphases of competition
(Rexhepi and Berisha, 2017).
With the help of digital technologies consumers can buy products of such company that
has no physical presence at local area. This supports in gaining attention of mass audience and
generating more profit to business unit. Online payment system, online shopping are benefits of
digital technologies. Now buyers have facilities to buy their required products and services any
time without going to physical stores (Bourn, 2018). Even now companies are offering home
delivers as well thus, digital technologies support companies in minimising cost and gaining
attention of mass audience. CAMECO operates in energy sector, earlier there are many
companies those which were operating in this sector were limited to operate into only rich
countries but now digital technologies has supported in reducing production cost thus, CAMECO
can enter into emerging market as well and can raise its global presence to great extent ( Coutts
and Gudgin, 2016).
4. PESTLE analyses of CAMECO
There are many factors that impact on operations of company to great extent. These are
explained as below:
 Political factor: It plays significant role in business environment, political stability helps
in getting continuous support from government by this way CAMECO can manage its
operations effectively. On other hand industrial safety regulations, changing oil, energy
polices create burden on the firm that sometimes impact on sustainability of organisation
to great extent (Marquardt, Olaru and Ceausu, 2017).
 Economic factor: If there is high GDP or good economic growth rate then it would be
beneficial for CAMECO in order to enhance demand for product and expand business in
other countries successfully. Because by this way value of money will be high that would
support in conducting operations smoothly. But high exchange rates, instability in host
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country currency impact negative on CAMECO, as firm fails to manage its operational
cost well (Jyoti, Kour and Bhau, 2015).
 Social factor: Education level, cultural values impact on life style of consumers. By this
way their attitude gets influenced that affect demand and supply of products to great
extent. If people have leisure interest, then CAMECO will be able to get high profit.
Increasing support towards renewable energy will be threat to CAMECO as this will
affect its operational efficiency.
 Technological factors: development is technologies create opportunity for business,as by
this way operational cost get reduced in CAMECO and firm become able to enter into
global market significantly (FakhrEldin and Elsawy, 2018). Now- a- days availability of
renewable energy technology has been increased thus, it has helped the firm in taking
care of natural resources. But implementation of new latest techniques enhances cost and
burden of firms as well.
 Environmental factor: It is very important for CAMECO that to emphases on ecological
components, Availability of recycling materials are high thus, it is opportunity for
CAMECO and firm can protect environment condition very well. This helps in fulfilling
its corporate responsibilities and raising brand image of company as well. But increasing
consumption of energy, limited oil reserves also create threat to business (Robinson,
2018).
 Legal factor: Now- a-days government is continuous monitoring working of energy and
chemical companies because activities of these firms affect atmosphere badly.
Authorities have made changes in waste disposal laws thus, now CAMECO has to make
changes in its operations as per the guidelines of this law. Furthermore, intellectual
properly protection law create opportunity for business and help the firm in in gaining
competitive advantage.
5. Challenges of globalisation and strategic challenges for organisation
There are many issues that face by firm due to globalisation (Globalization: Meaning,
Advantages and Disadvantages, 2018). These are as below mentioned:
Fluctuation in value of currency
This is one of the major issue that face by CAMECO when it plans to enter into global
market. Inflation, deflation affect demand and supply to great extent. In such condition company
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will have to face huge completions in order to run its operations in global market successfully. In
such condition CAMECO will have to make changes in its strategies thus, it would create
strategic challenges for the organisation to great extent (Rexhepi and Berisha, 2017).
Cost
This is another issue that can be faced by CAMECO due to globalisation, as if the
company plans to enter into international market then entity will have to invest allot for
researching foreign market, buying equipment’s and setup infrastructure etc. In such condition if
the firm fails to generate sales then it would not be able to recover its cost. That would affect
sustainability of organisation to great extent. CAMECO has to consider cost element and
accordingly has to make changes in its strategies so that it can get high return over its
investments (Trindade d’Ávila Magalhães, 2018).
Legal frameworks
Each country has different norms and regulations that need to be followed by business in
order to run operations smoothly. Laws related to climate force CAMECO to make changes in its
existing strategies so that natural resources can be preserved and environmental condition can be
improved This factor creates strategic challenge for company and firm has to take appropriate
strategic decision so that it can avoid legal complexities in business (Czaika and Neumayer,
2017).
Loss to cultural identity
As firm has to adopt cultural values of that country in which it is operating its business
thus, globalisation affect cultural identity. Employees have to behave according to new culture so
that they can provide quality services to consumers and can resolve their issues timely. But due
to loss of cultural identity CAMECO has to make changes in its management strategies.
6. Recommendations to overcome these challenges
In order to resolve strategic issues, CAMECO has to implement various strategies:
 Company has to conduct market research and has to analyses legal guidelines of the
nation where is going to operate its business. Market research will help in knowing about
lifestyle of people so firm would be able to train its workers. Furthermore, research will
help in analysing market situation thus, CAMECO would be able to take correct strategic
decisions (Pagano and et.al., 2016).
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 In order to get high return over its investment company should develop strong
relationship with consumers. It has get make link with buyers through social networking
sites so that firm can know about their needs and preferences. This will help in offering
them satisfactory services that will enhance its sales. This is the best way through which
CAMECO can overcome issue of cost significantly.
 Implementation of latest technology is another great solution to overcome economic
fluctuations (Tie, 2019). As CAMECO can implement latest technologies can be
minimise its transportation cost and other unnecessary wastage can be minimised.
Enterprise should adopt recycling model so that effective utilisation of resources can be
done. This is the way through which economic issues can be managed effectively.
TASK 2
1. Structure, culture and governance of organisation, Mckinsey’s 7S model
CAMECO follows tall organisational structure. It helps business in taking quality
decisions and minimising chances of confusion as well. Task culture is follows by the firm,
enterprise allot work to staff by looking upon their abilities and capabilities. This type of culture
helps business in raising confidence of people and motivating them. As CAMECO motivates its
workers by giving them incentives and rewards. they are being treated by top management as
assets of the firm. That is why staff turnover ratio is very low in the company (Hernández and
Nieto, 2016).
CAMECO follows guidelines of corporate government properly. Board of director are
responsible for managing and supervising business practices. All the affairs are looked upon by
top management. Higher authorities optimise financial returns and ensure improving corporate
values. Board of directors elect suitable candidates and promote them. Risk committee has to
prepare succession plan so that risk can be managed and can be avoided as well (Czaika and
Neumayer, 2017).
McKinsey 7S model
It is strategic planning tool that supports business in understanding its working pattern
and analysing strategies in order to achieve organisational goal.
Strategy
This element describes strategy of business and identify weather firm is able to gain
competitive advantage by implementing this strategy or not. CAMECO implements focused
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differentiation strategy. It emphases on vertical integration and make long term contracts with
suppliers. This aids in running operations successfully and minimising chances of failure as well.
This long term contract agreement strategy is helpful in getting raw material on time and
provides goods and services to consumers timely (Trindade d’Ávila Magalhães, 2018).
Structure
It is another element that describes how an entity arrange its resources. CAMECO
follows top down centralized or tall structure. Top management takes all the decisions for
organisation. This type of structure supports the firm in taking expert decision and running
operations in smooth manner (Marquardt, Olaru and Ceausu, 2017).
Systems
CAMECO implements safety system so that it can avoid hazardous activities at
workplace. Alpha nuclear radiation detection system is followed in the firm that helps in
effective utilisation of energy and help in minimising wastage of natural resources. It has well
developed research and development system and experienced science integration team those who
continuously work for meeting organisational goal.
Style
It empowers its workers so that they feel happy and valued in business unit. 360-degree
approach of performance review is implemented so that firm can know level of performance of
its staff members (Jyoti, Kour and Bhau, 2015).
Staff
CAMECO motivates workers and time to time arrange training for employees. By this
way people get developed and perform well in organisation.
Skill
In order to conduct operations in smooth manner CAMECO has hired technical skilled
people in organisation. They have good management skills and have knowledge of mining and
fuel manufacturing. Company provides competitive compensation to its staff and give them
training as well for their professional development (Bourn, 2018).
Shared Values
Safety and environment protection are the main concern of CAMECO. It ensures
implementing ethical business practices. It promotes fairness and give respect to all employees
so that they feel happy and retain in the firm for longer duration.
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2. Explanation how 7S’selements influenced by global operations, application of Hofstede’s
dimension of culture
As CAMECO follows centralised or tall organisational structure, this is influenced by
global operations because when company enters into international market then it has to make
changes in its structure asper the behaviour of workers so that people can contribute well in
accomplishing goal of business unit. For example, people of UK do not like to be bounded they
want full freedom thus, in such condition CAMECO will have to implement flat structure so that
it can give authorities to its workers. Otherwise entity will not be able to sustain in market for
longer duration (Rexhepi and Berisha, 2017). Furthermore, CAMECO offers incentives to its
workers and conduct ethical practices. But when it has to operate the business in global market
then it is essential to look upon ethical aspect or values of new country otherwise it would not be
able to sustain in market for longer duration. Staff, strategies, skills need to be managed as per
the global operational requirements.
Hofstede cultural dimensions
Low power vs high power distance
It explains existence on inequality, if there is high power index that means inequality is
high. CAMECO has to track working of company and has to give equal opportunities to all
individuals. In order to work smoothly in foreign country CAMECO has to empower its workers
equally that may help in sustaining in market for longer duration (Marquardt, Olaru and Ceausu,
2017).
Individualism vs collectivism
Recently CAMECO promotes individualism, high score is given to individualism that
means poor interpersonal connections and no sharing of responsibilities. But due to global
operations CAMECO has to make changes in its culture and has to focus on collectivism. This
may help in raising respect and loyalty among employees (Rexhepi and Berisha, 2017).
Masculinity vs feminity
CAMECO need to considered values of society and accordingly has to modify its culture.
Society is consensus-oriented thus, firm has to give equal opportunity to male and female.
Low vs high uncertainty avoidance
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If CAMECO operates in high scoring nation, then company has to avoided complex
situation through effective controlling but in low scoring nation there should be informal attitude
so that employees can feel happy and comfortable (Geppert, Matten and Williams, 2016).
Short vs long term orientation
Company’s cultural values get influenced by traditional norms and values of that country.
As if it is operating in low scoring nations then firm has to promote high creativity and if there is
high score orientation then company has to make changes in its culture accordingly (Hernández
and Nieto, 2016).
3. Ethical and sustainable factors that need to be considered by company
There are so many ethical and sustainable factors that are required to be considered in
order to run business in global market successfully. CAMECO has to look upon the ethical
business practices such as fulfilling corporate social responsibilities, taking care of giving respect
to others, emphases of social values. If these components are being ignored by enterprise then it
would be difficulty for CAMECO to sustain in market for longer duration. CAMECO has to
ensure that its activities do not affect environmental condition and wastage of natural resources
can be minimised (Pagano and et.al., 2016). Furthermore, before entering in foreign market firm
has to search about values and traditional norms of that country and accordingly has to design its
operations so that it can gain loyalty of consumers.
CAMECO needs to consider code of conduct and standards that are required to be
followed to work in this industry smoothly. Transparency of information, clear sharing of
mission statement of business with partners or other stakeholders etc. are several ethical and
sustainable factor that should be considered by CAMECO in order to run its business in global
market successfully (Geppert, Matten and Williams, 2016).
4. Influence of these factors on decision making in global context
It is very important for organisation that to evaluate ethical and sustainable factors and take
decisions accordingly. If CAMECO plans to enter into new location that it has to ensures social
values and traditional norms of that country. Accordingly, company is required to make changes
in its marketing and production decisions. If this thing is ignored, then firm will not be able to
satisfy its consumers and will fail to run business in international market successfully.
Furthermore, it is essential to emphases on code of conduct and standard values (Robinson,
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2018). By this way CAMECO will have to make changes in its management strategies and
operational activities so that it can match standards.
Transparency of information, sharing of data with stakeholder, ignorance of hiding
financial transactions are another ethical and sustainable factors that need to be considered by
CAMECO. By this way firm has to make changes in its financial accounting management
judgements and have to make changes in its corporate governance principles as well so that it
can meet the values of that nation and can gain competitive advantage as well (FakhrEldin and
Elsawy, 2018).
5. Strategic expansion routes available for organisation
There are so many expansion routes are available for CAMECO that may help the firm in
entering into international market successfully.
Merger and acquisition
Company can get merged with other local firm or can acquire local company in order to
sustain in global market successfully.
Strength
 One of the main benefit of this route is that firm may get information about local market
thus, it would be easy to know more about needs of consumers and providing them
satisfactory services (Jyoti, Kour and Bhau, 2015).
 Cost of expansion is comparatively low and enterprise can generate more profit.
 As organisation is acquiring the firm which is operating in the same industry thus,
competition can get minimised and firm will have to spend less amount in marketing
activities.
Disadvantage
 Sometimes employees of acquired company do not accept changes after merger and
acquisition. Thus, it increases conflict situation in business unit.
 There is high possibility that stakeholders do not like business ideas and they will not
accept changes easily (FakhrEldin and Elsawy, 2018).
Franchising
It is the popular and most commonly used expansion strategy in which firm can enters
into agreement and franchisor can sell goods and services
Advantage
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