HNBS 318: Drivers and Challenges of Globalisation and Strategic Impact

This presentation analyzes the drivers and challenges of globalization and their impact on strategic directions, with a focus on the case of Thermax Ltd. The study begins with an introduction to globalization, followed by an examination of the key drivers and challenges that affect businesses operating in a global environment. It further explores the influence of globalization on organizational leadership, governance, structure, functions, and culture. The presentation also evaluates the impact of global factors on the chosen brand and discusses influences of ethical and sustainable globalization on Thermax Ltd's functions. Additionally, it covers decision-making processes, barriers to global market entry, different routes to internationalization, and provides recommendations in the context of Thermax Limited. The presentation concludes with a summary of strategic challenges faced by firms in different countries and suggests ways to mitigate risks.

Drivers and Challenges of Globalisation and
Their Impact on Strategic Directions
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Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
PART 2..........................................................................................................................................17
Influence of globalization on organizational leadership, governance, structure, functions and
culture...................................................................................................................................17
Evaluate and analyse impact of global factors on varied things relate to chosen brand......19
Influences of ethical & sustainable globalization on Thermax limited functions................19
Critical evaluation based on organization consideration in regard to ethical & sustainable
elements................................................................................................................................20
Decision making and tactic influence by global market forces............................................20
Barriers for entering and managing business in global market............................................20
Different modes decision making can work effectively in international context.................20
Different routes to internationalization an company may adopt, including barriers............20
Recommendation in context of Thermex Limited................................................................21
CONCLUSION..............................................................................................................................21
REFERENCES..............................................................................................................................23
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INTRODUCTION
Globalization is all about speed-up movements and exchange of service and goods at all
over the world. The present study is also helps to understand the drivers and challenges which
direct cause negative impact upon the business. The study is based upon the case study of
Thermax Ltd whose headquarter is in India and is operating in energy, environment and
chemical sector. The study will explain the concept of globalization and determine the key factor
that affect the business in opposite manner. Moreover, study will explain the complexity of
strategic challenge face by the firm while operating in global environment. Report also evaluate
the influence of globalization or governance and leadership, also it determine the different ways
decision making can work effectively in global context and determine routes of
internationalization.
PART 1
Slide 1
Slide 2
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Slide 3
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Slide 4
Notes:
Hence, it is define as a set of process that also contribute to relationship between societies and
individual around a world with rapid spread of technologies.
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Slide 5
Notes:
 Technological change:In the modern era, every company wants tostay ahead in the
competition and for that they use technologies. Hence, a rapid and sustained
technological change reduce the cost of transmitting and communication information. So,
a stage of technology in a particular field also give a rise to import and export of product
and service from one to other country.
 Economies of scale:It increase in the minimum efficient scale which is link with some
industries. Hence, a domestic market is also regarded as too small to satisfy the selling
need of an industries. Thus, this factor creates a positive impact upon the business and
leads a business towards success.
 Difference in tax system:Every country have different tax rate and labor cost which
encourage countries to adjust their tax system in order to attract FDI. Hence, many
countries become engage in tax competition between each other but invest in order to
meet the define aim.
 Cost:While dealing in different countries, transport cost is also involve. Such that
Thermax Ltd is already deal in 75 countries and to sell the product and service to another
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country, freight charges are applied. Thus, increase in the cost may cause negative impact
upon the business and this in turn affect the results as well.
 Market condition: It is the major challenge or factor for the business because market
condition are keep changes and to meet the same, business have to meet the trend and it is
possible when the business have enough knowledge with regards to same to implement
the changes.
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Slide 6
Notes:
Political factor:Change in the political factor affect the business in opposite manner such
that there terrorist attack or terrorism may lead to affect the sale in opposite manner. Hence it is
examine that with the help of effective strategy company always tries to stable the political factor
and leads a business towards positive manner.
Economic factor:It is deal with economy of the country, such that fluctuation in the
economy of a country may lead a business towards adverse manner. For example, due to
recession, most of the customer do not spend the amount and that is why, Thermax Ltd
profitability got affected in negative manner.
Social Factor: The views of people changes as per market trend changes. For the same, it
is necessary for the company to develop policies and strategies that assist to attract customer
towards it. Moreover, it is examine that most of the people are shift towards sustainable product
and for the same, Thermax Ltd is also planning to invest in such field that helps to grab attention
of many customer towards it.
Technological Factor: It is deal with advance technology and implementing new
technique within a business may lead a business towards success direction. Thermax Ltd also
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uses the same in order to improve the business operations. Therefore, it is clearly reflected that
through implementing advance technology at workplace, company improve its financial
performance and take a business at further level of success.
Legal Factor: it is all about laws and regulation that cause direct impact upon the
business operations. In the same way, Thermax Ltd is also comply with range of laws and
regulation i.e. employment law, discrimination law that helps to implement strategy in better
manner. However it is also critically analyzed that if company did not adhere with laws, then
they have to pay penalty and this cause opposite impact as well.
Environment factor:This factor deal with environment safety and protection. For the
same, it is analyzed that quoted firm comply with sustainability act in which it offer the product
and services which do not cause any negative impact upon business. As it is deal in energy,
chemical sector company has to make sure that there is no wastage which cause opposite impact
upon environment. On the other side, comply with law may lead to creates positive impact upon
business as well.
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Slide 7
Reporting requirement: There is a great transparency and investor confidence while
tackling the money. Hence, it is examine that during globalization, company has to commit to
exchange information under different standard which is develop by the firm.
Legislative changes:Sudden change in the laws and legislative affect the business
operation such that their intention may also create positive impact upon business. For example,
post Brexit affect the business in opposite manner and this in turn lead to change in the company
structure.
Risk:
 Ethical risk is consider one of the highly influence risk that affect the overall business in
negative manner. Under this, operating in global market lead some business to question
their values and understand the social condition which is vary from one country to
another.
 Language barrier is another risk which is associated with the company while dealing
globally and that is why, there is a need to minimize the same. As every country have
their own religion and language and while dealing at different country, it is not possible
for the business to understand things easily. So it is considered as a challenge.
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 Resistance to change is another barrier that affect the business because due to different
custom and values, it is not possible for the company to operate better manner.
 Opting the best diversification strategy among all is also considered as a challenge that
affect the business in opposite manner. To operate in different country, company has to
opt the best method which assist to lead a business at furtherlevel of success.
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