Analysis of the Global Business Environment: Clif Bar & Company Report

This report delves into the global business environment, examining key factors driving international trade and commerce, such as cost, market dynamics, environmental influences, and competition, with a specific focus on Clif Bar & Company. It explores the strategic challenges faced by businesses like BMW in international markets, including compliance, raw material volatility, cultural and linguistic differences, and environmental impacts. The report further analyzes the effects of globalization on organizational structure, administration, culture, leadership, and functions, as well as the impact of ethical and sustainable globalization on company operations. It also evaluates different decision-making approaches on a global level and determines various routes to internationalization, including key barriers to entry and expansion. The analysis highlights the importance of adaptability, ethical considerations, and sustainable practices for success in the global business landscape, particularly for companies like Clif Bar & Company.

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key factors of cost, market, environment and competitors that drive global trade and
commerce....................................................................................................................................1
TASK 2............................................................................................................................................3
P2 Complexities of strategic challenges which face by BMW in international environment.....3
TASK 3............................................................................................................................................4
P3 Effect of globalisation on structure, administration, culture, leadership and functions of
Blades jets...................................................................................................................................4
P4 Impact of ethical and sustainable globalisation on company functions.................................4
TASK 4............................................................................................................................................6
P5 Evaluation of different decision making approaches on a global level.................................6
P6 Determination of various routes to internationalisation, inclusion of key barriers................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Global environment is having an impact of various factors which directly affects the
working environment of an organisation. Basically, a business environment can be defined as a
factor is which both internal as well as external factors are present which are having an effect on
the activity which is being carried out in the organisation. It is very necessary for all the
organisation to understand the environment in which they can operate into because then only
they will be able to conduct their operations in an effective manner (Cohen and Kietzmann,
2014). The organisation which will be referred in this assignment is Clif bar & company. This
company is conducting operations about manufacturing organic food and drinks in several parts
of the world. This report will discuss about the key drivers of globalisation under various aspects
and also the various issues which a company faces while expanding themselves in the global
market will also be discussed. Along with this, several kinds of factors which influence the
organisational structure, culture and functions will also be ascertained and evaluated.
TASK 1
P1 Key factors of cost, market, environment and competitors that drive global trade and
commerce
Globalisation can be characterised as a process under which the integration and
communication between people, company and economy of the country with the rest of world. If
glbaliusation wuill be discussed in context with businesses then it can be detrmined that it helps
in economic expansion of an enterprise. In this, an environment is created in whuch investment
is brought in from several segments so that growth and development can be achieved by them.
The companies who are carrying out their operations in various parts of countries is known as
Multinational companies (Crane and Matten, 2016). The idea of globalisation is basically
supported by digital technology and transformation and then later on connects the economies of
various countries under social and economic grounds. It has also been ascertained that here are
various factors which compels an organisation to expand at an international level. It is very
important for the companies to take all the factors very seriously then only they will be able to
carry out their operations in an effective manner and desired results can be achieved. A brief
description of key drivers of globalisation are as follows:
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Cost: It can be defined as that factor in which the amount which will be paid by the organisation
so as to expand themselves at an international level. It is necessary for every company to invest
their time and resources in understanding the idea of doing expansion in an effective manner so
that they can come to know about the machineries and resources that will be required by them so
as to expand themselves at a global level (Doh, McGuire and Ozaki, 2015). The cost that will be
incurred by the business are being separated into two forms such as direct cost and indirect cost.
Direct costs relates to the factors like insurance, rent, inventories etc. as they have direct relation
with the amount of units produced. On another hand, the indirect cost comprises of expenses
which is not having any direct relation with the no. of quantities produced and the factors which
are included in this are Personnel, administration and conveyance costs. But the most crucial
reason to enter into global market is to increase the efficiency of the firms in terms cost.
Through this company is able to build competitive advantage in the market and helps in
presenting the products which is affordable to the customers as well.
Market: This can also be considered as one of the most effective factor as it is that place in
which the company will target their respective customers towards their products and services.
Globalisation is occurring in the companies because the market in which they are currently
operating has become mature and now it is no more fruitful for them. Like, if a company is doing
their operations in UK for a longer period of time and have reached the maturity level so now the
situation has come when the company will think of shifting to some other place so that they gain
the profitability once again in new markets. So, if the company is thinking of expanding at global
level then it is very profitable for them if they are in this kind of situation then right strategies is
required to be implemented (Epifanova and et. al., 2015).
Environment: This is also ethanol factor which is taking into account two very important
factors which are Technological and political drivers. Both these factors are having a string
connection with globalisation. It is also noted that commercialisation and liberalisation of
economies have made very easy for all the companies to conduct their work operations into
another country along with their goods and services. If the organisation is having the support of
digital technologies then they can launch themselves in the another country in an effect manner.
Also, the government is providing them support for conducting their operations in an effective
manner. Due to digitalisation a company can be virtually present at various locations at one time
and these kinds of approaches are also called as e-businesses and e-commerce.
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Competition: The competition can also be treated as one of the major factor about the
globalisation. There is significant rise in the inter-firm competition which affects the business
into launching their companies at an international level. FDI's is also helping the company for
launching themselves at the international level and in interdependencies between various nations
as well (Ferraro and Briody, 2017).
TASK 2
P2 Complexities of strategic challenges which face by BMW in international environment
Apart from the sizes, there are various factors which are required to be encountered by
the companies while doing their operations at an international level. Clif bar & company is also
carrying out their operations in market of UK, Asia and some of the african countries as well.
The factors which help the company in carrying out their operations in international market in an
effective manner are as follows:
Compliance and Regulation: This is considered as one of the biggest challenge which can be
faced an organisation in another country. The small and medium companies required to
understand the rules and regulations so that goods and services can be sold to customers at an
effective level. It is also considered that each person is having their own set of laws which is
related to tax or some kind of ethics to carry out their work activities in a proper manner.
Volatile nature of raw material – This is also a very important factor which is being faced by the
companies who are working at small as well as medium level. The case is same if the company is
operating in UK. It is effective because there is no means than to follow with the ever changing
cost of the raw material and to create strategies as well so that this changing nature of market can
be defined by the company in a suitable manner. The aftershocks which emerge in terms of
prices of raw material is to be countered strictly with the help of financial tools (Huhtala and et.
al., 2014).
Culture and language: This is very important for all the companies to understand the culture
and language of the country in which they are operating into. It is also determined that there are
marginal no of small and medium sized companies who are handling various kinds of issues in
the correctly manner. For instance: Clif bars & company is already carrying out in its operations
in the market of Asia and Africa. Therefore, requires a competent team of individuals who can
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handle service calls from the customers so that strategic complexities can be handled in an
effective manner.
Environmental Impact: It is very important with environmental norms of countries as there is a
strong impact on the dealings with the global environment issues. The companies are also
required to incorporate sustainability in its operations (Kasemsap, 2015). Clif bar & company is
conscious of all its efforts relating to procuring of raw material and environmental footprint.
Technology and communication: The dependence on technology is increasing day by day but it
is complex as well so it is required to be used in an effective manner so that desired results can
be gained from it. There should not be lack of communication as otherwise it will become a
major road block for the company and they will not be able to expand themselves at the
international level in a proper manner. The objectives and instructions to the employees by the
management will not be communicated in an effective manner. Through this they often tend to
loose their targets as well.
TASK 3
P3 Effect of globalisation on structure, administration, culture, leadership and functions of
Blades jets
The process of becoming global is a complex approach therefore it needs to alter
numerous aspects of business so that suitable results could be achieved. The influence on various
factors will be defined in a brief manner:
Leadership – Leadership refers to that approach which assist in directing and guiding a
leading a group of person towards achieving company goals and objectives in proper manner. A
leader possess a huge set of opportunities and have challenges that can be countered so by this
business operation will be performed these functions effectively. The globalisation concept
mainly involves for giving best employees which help in satisfying all customers needs and
wants. The international leader having advanced and modern technology which are compare with
national company. It is required for leader to thinking at global level which diverse the culture
and form equilibrium of culture can be developed or built (Kolk, 2016).
P4 Impact of ethical and sustainable globalisation on company functions
Sustainability globalisation define the transformation approaches and concepts which
refers in any manner where business expand in better manner. The main focus of sustainability
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globalisation is on entire ecosystem which help in undertaking with human beings, society and
natural resources so this is very favourable thing that can be developed or created in proper way.
In ethical globalisation, they mainly focus on combining the effective human rights rules and
regulations so that the local and national efforts are totally associated with manpower that can be
supported (Apăvăloaie, 2014).
Clif bar and company is an enterprise which are diverting their efforts for conducting
green friendly concepts or approaches by this environmental sustainability can be emphasised in
better manner. An organisation switched towards organic inputs so that customers are exiting
with major goods and services which are friendly and gain high nutritional values and prices.
Such medium size organically is called to save around 80,000 pounds of plastic that create costs
which has approximately in $30000 year. For adopting and using sustainability measures which
directly impact on firm activities and functions which are described as follows:
Higher values- This is major facts which adopting organic that define for carry out the
business operations will be cost a business for lot more as packaging material that includes
plastic can easily accessible at reasonable rate. Thus, this can be determined that business have
pay heavy price of adopting sustainability that means to bring out business operations. Along
with this, high cost will directly impact on business activities and functions are carry out and this
will reducing the wastage during manufacturing procedures.
Harnessing latest technology- Clif bar and company which are known to posses a
massive certainty on technology that includes bar code scanning and metal detectors. For
producing and delivering such specific goods so an enterprise have to executing and
implementing measures for modern supply chain that increasing sustainability within an
organisation (Axelrod and VanDeveer, 2014). The company required to adopt latest techniques
and methods which create an impact business activities for carry out in the firm.
Workplace environment – This can be define that adopting sustainability expansion to
carry out major impact on manpower of an enterprise. The company can providing efforts whose
aim is to developing and formulating main abilities and capabilities for future generation. The
firm staff members convince for adopting high approaches and concepts for doing individual
work in proper manner. In an enterprise, there will be high shift in the employment dynamic and
social or economic factors that can be transformation (Belás and et. al., 2014). For expanding
their business operations and functions, they will be able for gaining positive response with their
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greener approaches and this outcome have inability to giving appropriate employment to the
people in proper manner. Along with this, inability for changing such dynamism regarding sound
environment that can create results for losing their jobs.
Lower requirements of marketing approaches – Clif bar and company have successful
developing and forming sustainable goodwill and reputation in the large market place and
emerged to top organic goods caterer in huge market. There is lower demand for promoting
effective goods and services in the market to paid medium. The motivation of business of
sustainability and nutrition which assist company in possessing the pleasant brand name in the
large market which occurs reduction requirements for marketing promotions and tactics.
TASK 4
P5 Evaluation of different decision making approaches on a global level
Decision making is that concept which main aim is to choose the best alternative among
desired ones. Along with this, there are various choices that should be identified and make ideas
that estimated towards best opinions for encountered the issues by an enterprise. An enterprise
can carry out this for adopting effective approaches for making decisions. Clif bar and company
increasing their business expansion in other country and also face number of problems that are
related to acquisition of raw material, maintaining the efficiency level and customers relationship
in better manner (Belás and et. al., 2015). There are certain approaches related to decision
making that are described as under: Unilateral decision making – It is that approach which is one of the common measures
of making decision in which emphasised on top down approaches. This tend to be rigid
which can bring out their business activities and functions and it is not comfortable in
describing each factors of business associated with their staff members. The main
advantage are accessible for adopting such approach which help in making best decisions
that can provide and create difficulties in different business situations can be dealt
effectively by lead with the help of procrastinating complex decisions for the company. Ad hoc decision – It is that concept and approach which is lower emphasised so there
will be high participation of their staff members and it is involved in this. The company
leader are also carrying this approach for altering their team members, take various
decisions and number of factors which help in this concepts (Carneiro and Brenes,
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2014). Along with this, there is lower involvement of stakeholders while making
effective decision and they are mainly concentrate on employees inputs impact of leaders.
This decision making concept is not referred due to this this will excluding the
stakeholders that are essential elements in decisions in the global organisation. Management decisions – Such decision will taking into determination with long
procedures and it does not involved any input by the manpower. In addition to this,
decision making approach mainly focus on difficult process that are entertained within an
enterprise. The main advantages that can be available with the help of making different
approaches that provide innovative facts and figures on the subject topics that assist in
selecting right alterations among desired ones. The data and information should be
obtained can leveraged for improving effective decision making in the future time period.
It is that approach which have lack of key inputs from staff members and stakeholders
leading towards forming improper decisions in better manner. An organisation like Clif
bar and company does not prefer this specific methods and techniques for making
decisions.
 Collaborative decision making – It can be define as one of most essential decision
making approach that can be used by company to make the accurate decisions. Along
with this, collaborative form of decisions making developing and making high level of
input from stakeholders and it will consist with higher level of procedures (Cavusgil and
Knight, 2015). A leader are capable for identifying the major role and responsibility that
has been play by inputs from staff members forgathering facts and figures from the same.
It is lengthy process for selecting other opinion which make sure that accurate measures
that are taken through assistance of possession of correct information or data in proper
manner. An enterprise emphasizing on such concepts that can lead towards forming and
developing accurate decision at international level.
P6 Determination of various routes to internationalisation, inclusion of key barriers
In the current time period, it has became important for organisation for expanding at
global level so that business can increasing and enhancing in the large competitive market along
with services and facilities for improving effective infrastructural and commercialisation of
products needs and wants in better manner. There are various ways where business can venture
into global market that are as follows:
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 Exporting – Exporting is define as progressive manner with the help of business
operations and functions where an enterprise can be internationalised in better manner. It
is that strategy which help in selling effective goods and services without becoming
existing in the nation (Cohen and Kietzmann, 2014). The production of Clif bar and
company will be similar and can be get success and growth of producing organic and
nutritional bars expanding in the another country in proper manner. Along with this,
exporting of products and services can be carry out with the help of two measures such as
direct or indirect. The direct approach is gain when business main motive is to retain their
management over business, on the other hand, indirect approach take help from
intermediate in merchandising goods and services within an organisation. Relocation – It is another concept or approach which can assist an enterprise foe
expanding their business operations and functions at international level. In such
approach, it is the best part of business that has transferral to other nation which can carry
out with desired sale of merchandise and gaining achieving profitability through
accessibility of reasonable rate of labour or innovation. Strategic alliances – It can be known as to approach where an organisation can agree to
share resources and make endeavour in delivering effective needs and requirements for
specific society. Clif bar and company can make alliances with company for dealing in
the same segmenting area so that they are expertise should be pooled and appropriate
goods can be offered. This is that approach by which opportunities in the large market
place that can provide availability in fast manner and there are existing in low barriers
and issues in the large market area (Crane and Matten, 2016).
 Adoption of technology – For expanding at global level this can be reached with the
assistance of technology in better manner. This is required for business is to make strong
capturing of new technology and methods in the large market area. They need to adopt
current technology and methods which assist firm in increasing their income and revenue
amount. It does not create and make sale which assist in identifying the business
measures with the help of ROI and profit margins that can be evaluated and identified.
This will help in giving accurate direction towards correct path and routes where
company can adopting effective methods and techniques.
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CONCLUSION
From the above mentioned report it can be analysed that it is essential for company for
expanding their business at international level so that main competitiveness and efficient cost can
be obtained. Sustainability globalisation define the transformation approaches and concepts
which refers in any manner where business expand in better manner. In ethical globalisation,
they mainly focus on combining the effective human rights rules and regulations so that the local
and national efforts are totally associated with manpower that can be supported. Along with this,
there are various choices that should be identified and make ideas that estimated towards best
opinions for encountered the issues by an enterprise. In the current time period, it has became
important for organisation for expanding at global level so that business can increasing and
enhancing in the large competitive market.
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How SMEs Can Internationalize. 2015. [Online]. Available through:
<https://www.forbes.com/sites/iese/2015/04/20/how-smes-can-internationalize/
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