Global Business Environment: Ensoft Ltd Expansion Report

This report provides a comprehensive analysis of the global business environment, specifically examining the expansion of Ensoft Ltd., a UK-based software company, into the United States. The report delves into key elements driving global commerce, including cost analysis, market dynamics, environmental factors, and competitive landscapes. It identifies strategic challenges such as client demands and cost management. Furthermore, the report explores the impact of globalization on organizational governance, leadership, structure, culture, and functions. It also discusses effective decision-making in a global context, various internationalization strategies, and potential barriers to expansion. The report concludes by highlighting the importance of adapting to the US market, addressing competitive pressures, and making strategic decisions to ensure successful international operations for Ensoft Ltd.

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Key elements of cost, market, environment and competition that drive global commerce
and trade......................................................................................................................................1
TASK 2............................................................................................................................................3
P2. Complexness of strategic challenges faced by organisation while operating in global
environment.................................................................................................................................3
TASK 3............................................................................................................................................4
P3. Cause of globalisation on organisational governance and leadership, structure, culture and
functions......................................................................................................................................4
P4. Effects of ethical and sustainable globalisation on organisational functions.......................6
TASK 4............................................................................................................................................7
P5. Various ways through which decision making can work effectively in global context.......7
P6. Assorted routes to internationalisation which can adopt by organisation, including key
barriers.........................................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
International business environment is filled with ample number of opportunities for
organisations which are looking forward to expand their business from domestic to global level.
Term globalisation can be understood as a process where a firm try to develop its business all
over the world and does its operations at international level. Main aim of these companies is to
earn profit as much as they can (Apăvăloaie, 2014). On the other hand, it is required for business
firms in grabbing attention of customers right on time so that to earn good reputation in all over
world. Under this report, firm which has been taken that is Ensoft Ltd which is a software
company and was found in the year of 1997 which is located in United Kingdom and carrying
around 80 employees. They are looking to expand their business in United States. Many key
elements and other things are being developed under this assignment which are related to cost,
market and rivals that are present in the market. Along with this, problems and issues which can
be faced by firms has also been discussed under this assessment.
TASK 1
P1. Key elements of cost, market, environment and competition that drive global commerce and
trade
It has been located that when a business organisation looks forward to expand its business
business at international level, it is very much required for them to look into different aspects and
analyse them like cost, prices, targeted marketplace, competitive level and many more. If
scenario is clear in front of firms whose aim is expansion of business at global level. On the
other hand, if company do not look into these elements it may be possible that firm may face
issues which are related to their expansion. Along with this, it has been analysed that proper
enlargement asks for high funds and this needs to be properly taken care in an appropriate sense
so that profit margins can be raised in a proper manner. Through this, operational activities can
be done accurately (Axelrod and VanDeveer, 2014). In present scenario under this report, Ensoft
Ltd. which is a software company is looking forward to expand its business and there are some
key elements which needs concentration and these are understood below:
Competition: One of main key factor that needs to be understood by Ensoft Ltd. in an
appropriate manner so that to grab good position and to gain competitive advantages as well.
Rivals or competitors that are present at marketplace and are doing business at target market for
1

a long period of time. It has been analysed that they can put impact on operations, reputation,
productivity and profitability as well. In order to gain competitive advantages it is must for
Ensoft Ltd. to develop strategies through which they can see that what working way,
technologies are being adopted by them. This may lead Ensoft Ltd. to make effective decisions
that may lead them in giving good rivalry to challengers. In present context, it has been located
that United States is already carries ample number of software organisations that are delivering
its software to their clients (Belás and et. al., 2014). Therefore, it will create many complex
situations for Ensoft Ltd. where firm may find problems while expanding its business in US.
Cost: Globalisation of a firm requires high funds. Therefore, it is very much required for
business firms to look into different aspects and try to develop a budget and keep on monitory it
so that business can get enlarge at international level in an appropriate manner. If Ensoft Ltd. do
not develop a budget it is may be possible that firm may not enhance their business. Failure into
this may lead firm to stop expansion of business. On the other hand, delivering goods to
customers according to their needs may lead business firms in grabbing good position at whole
new place in short period of time. Along with this, strategic prices policies like offering goods
with less cost but with high quality will directly aid in attracting consumers high in numbers.
But, it is hard as organisation which is enlarging it has been located that firms have to go through
different phases like political, environmental, legal, technological and others as well because
these may raise prices of products and services and expenses at the same time.
Market: Setting target market is very much required for business organisations that are
expanding their business as this may lead them in attaining all goals and objectives that are
related to enlarging. On the other hand, this may lead firm in grabbing good position as well
right on time in short period of time. Along with this, enhancement of business requires to
understand all the trends and other things like updated technology that is being used by business
organisation that are already doing business at targeted market. Away with this, as Ensoft Ltd. is
expanding its business at United States which follows latest tools and techniques in order to
deliver quality items to consumers. Therefore, it will be very much essential for Ensoft Ltd. to
use updated trends and then grab good position at targeted marketplace in specific time span
(Belás and et. al., 2015). Market is filled with ample number of opportunities where if a company
grabs it is may be possible that they may start generating high revenue in short period of time.
But in order to do so, there are some factors that stay filled under market which needs to be
2

properly understood in an appropriate manner. Some of them are: users need, competency, rivals
and many more which may affect expansion of Ensoft Ltd. at international level.
Environment: Atmosphere, consumer's perception and other things like which needs to
be properly managed in an appropriate manner. It has been located that both internal and external
can be stated as two environment factors that may put both positive and negative impact on
business organisation that are looking forward to expand their business. Perception of customers
which is related to reputation of company gets changes, therefore, it is very much required for
Ensoft Ltd. To look into different aspects and then take initiatives like modifications in software
according to their needs so that long term relations can get maintain with them (Belás and et. al.,
2015).
Henceforth, above discussed key elements are some major factors which can create both
bad and good conditions for Ensoft Ltd. While expanding their business. Therefore, it is vital for
this firm to deal with them and take appropriate decisions while entering United States market.
This may lead them in achieving all the goals and objectives right on time and along with this
goodwill will also get enhanced that will give them benefits for a long period of time.
TASK 2
P2. Complexness of strategic challenges faced by organisation while operating in global
environment
Expansion of business at international level in not an easy task as there are ample number
of factors that stays connected and these elements can be stated which may put impact on doing
business at international level (Carneiro and Brenes, 2014). Ensoft Ltd. is doing business at
United Kingdom which have totally different policies from United States. Therefore, it is very
much required for Ensoft Ltd. to develop their products and services according to perceptions
and needs of customers along with policies that have been developed by government of United
States. This nation is filled with various strict laws which may put both positive and negative
impact on Ensoft Ltd. right on time. Ensoft Ltd. Needs to develop their products and services in
an appropriate manner after analysing all requirements of customers as then only favourable
conditions can be created by them. Some of challenges that can be faced by Ensoft Ltd. and
some of these are given beneath:
3

Client desires: Under this, administrators of Ensoft Ltd. ought to decide the components
which can make an issue in working the business in a compelling way. Desires for shoppers can
fluctuate from place to put, in a few territories request of items is significantly higher when
examination is being finished with other circle (Cavusgil and Knight, 2015). Subsequently, it is
basic for Ensoft Ltd. to quickly look forward in to clients needs and make adjustments in
merchandise on the off chance that it is required. Firm generally targets customers with the age
in the middle of 1 to 10. subsequently, it is required for this association to find all needs and
needs of little children and make toys as indicated by them with a specific end goal to manage at
commercial centre for a more extended time frame. For eg: As in today's world customer are
being influenced by the images, so the Ensoft company has modified its software and made it
more attractive in terms of uploading more images in respect of content to get better results from
the clients.
Cost: Doing operational exercises at worldwide level conveys abundant number of
hazard with it. Here, firms can experience numerous issues while arranging or creating
techniques. As of now, targets can't be accomplished if an association will offer items with high
costs. While presenting items and administrations at universal level. It has been examined that
cost of items can be expanded due to different extract obligations, charges and different
components. Along these lines, it is basic for organization of Ensoft Ltd. to influence systems
through which they to can diminish costs of items and administrations. For a case: Choosing
shabby work while transporting merchandise starting with one place then onto the next. This
should be possible by firm with a specific end goal to diminish costs of their products that they
are putting forth at commercial centre (Globalization Challenges for Businesses, 2018).
Hence, it can be concluded that the client desires and cost should be maintained to remain
competitive and maintain the financial statement of the company.
TASK 3
P3. Cause of globalisation on organisational governance and leadership, structure, culture and
functions
Corporal administration can be considered as procedure that may aid business firms in
doing operations with ease, discipline along with directions too. On the other hand, it has also
been located that a firm can face issues that are related to products and services. Along with this,
4

there are ample number of principals, laws and some rights which stays related to business and
are being considered or reasoned as cause of globalisation (Cohen and Kietzmann, 2014). Apart
from this, it has also been located that there ample number of company people stay connected to
various impact and some of these are: managers, directors, creditors, auditors and many more.
Along with this, it is important for Ensoft Ltd. to keep on delivering products and services
according to needs of customers that are present in United States so that to grab good position
right on time. Some of elements that are being affected by Ensoft Ltd. which are related to doing
business at international level and some of these are given beneath:
Leadership: This can be considered as a process where a person is filled with various
responses like directing, motivating, supporting and coordinating can be known as leadership. In
present context, Nigel Stuart who is leader and director of Ensoft Ltd. Have to deal with ample
number of phases and carries many responsibilities. This can be considered as the human who
takes initiatives and along with makes determinations which may put both positive and negative
impact on business firm. Organisational structure can also put positive and negative impact on
business Ensoft Ltd.
Structure: As United State's people likes to live their life in a disciplined manner and
looks into different aspects as well. On the other hand, it is being located that board of directors
of Ensoft Ltd. should recruit people who were doing work in other organisation of United States.
As they are the people who already know about all trends and other stuff which are related to
goods and employment of nation.
Culture: Majorly, when an organisation is looking forward to expand its business it is
may be possible that firm have to deal with some unknown culture that organisation consumers
according to their needs and wants and as per culture which are being followed by them. This
should be considered by Ensoft Ltd. while making proper plans and at the time of introducing
goods at marketplace of United States. On the other hand, it is very much required for business
firms in grabbing attention of customers right on time and if it is needed for Ensoft Ltd. in
specific time of period (Crane and Matten, 2016). Citizens of US follows totally different culture
from United Kingdom. Therefore, it is very much required for Ensoft Ltd. to deliver products
and services as well at the same time according to necessities that United state's people have.
Functions: It is being located that there are various sort of problems are being considered
as a company can face while expanding its business. Therefore, it is very much required for
5

Ensoft Ltd. to deliver products as per requirements of consumers that they have. Under this,
modifications plays an important role which needs to be properly understood by Ensoft Ltd.
while enlarging its services. With the help of this, profitability and productivity can be raised in
an appropriate manner.
P4. Effects of ethical and sustainable globalisation on organisational functions
Present day time is brimming with remarkable change. The greater part of firms which
are substantial in nature are utilizing adequate number methodologies, following standards and
controls of nations in which they are working together (Doh, McGuire and Ozaki, 2015). Morals
incorporates organization's spirit which may help them in affecting staff individuals conduct in
positive way. As Ensoft Ltd. is anticipating extend its business in United States. Accordingly, it
is critical for them to see every one of the enactments, demonstrations which has been made by
parliament of United States. Operational exercises should be possible of an association by
utilizing every one of the morals in a proper way.
Alongside this, different issues are looked by chief at the season of extending their
business at worldwide level. So that, it is imperative duty of administrator to look at all the issues
in powerful path by which issues can be comprehended that are being looked by firm while
expanding the business. It is imperative for business association to successfully take after every
one of the standards and direction at the season of actualizing techniques. With the assistance of
this firm improve their general execution level at worldwide market. On the off chance that, if
organization bombs in considering morals then it puts negative effect on organization's picture.
Away from this, supervisor likewise plan successful arrangements and methodologies to
enhance labourers execution in which they give them better course. By this they successfully
work whole business work. This will help business association to catch bigger piece of the pie
shape its opponents and built up positive brand picture. Accordingly, Ensoft Ltd. ought to adjust
appropriate innovation and influence systems through which they to can hit their objectives in
considerably more compelling and ways. At current minute, it is imperative for Ensoft Ltd. to
utilize successful approach which may leads in enhancing positive picture and in the meantime
likewise decrease the odds of emerging issues. This will helps in improving gainfulness level by
serving quality support of its clients. Subsequently, impacts of moral and appropriate
globalization postpositively influence the hierarchical capacity which may leads in
accomplishing upper hands in viable way (Epifanova and et. al., 2015).
6

In Ansoff Consulting limited the ethical issues are the the open source code which can be
used by any software developer, another issue arise is using the illegal software, and reversing
the engineering code process should be taken under consideration as it establish the complexity
of the programming, the most important one is not addressing the different bugs in the
application program by which lags or some error comes while running the software or program,
Taking the talent from the competition place them in the advantages position and then that
company will get the ownership of the information about the latest technology which can put the
overall competition disadvantage.
The factor which affect the business of Ansoff Consulting limited are the name of
powerful brand which ensures every business sustainability,partnership and collaboration
between two companies makes the IT business more sustain and stable, another factor which is
important in sustainability is the retention of the customer. Ansoff Consulting limited always to
retain their customer's by giving them after sales services for the limited time period and also by
applying the flexible work process and by using some flexible leadership style the sustainability
in the business obtained.
TASK 4
P5. Various ways through which decision making can work effectively in global context
Decision making process in every single organisation whether it is small or big in nature
can be considered as major part which can be played by both leaders and managers. These are
two major personalities who takes initiatives and try to obtain strategies from other organisations
(Ferraro and Briody, 2017). On the other hand, it is very much required for business firms in
grabbing good position in short period of time so that profit margins can be raised right on time.
It has became vital for sustaining at global market to deliver products and services. Apart from
this, Ensoft Ltd. Is continuously looking forward to expand its business in US and in other
countries as well it is being analysed that it is very much required for them to adopt best
approaches, tools and techniques so that benefits can be gained in much effective and in efficient
manner. There are two sort of decision-making process which is being adopted by them and
these are given beneath:
Programmed decision making: One of the traditional approach that is being used by
most of business organisation that are operating their business and filling needs and wants of
7

customers right on time. On the other hand, this sort of technique is mostly used by business firm
that are doing business at international level who don't want to go through any sort of problem.
Majorly, firms at global level deals in high funds. Therefore, it has been located that plan which
is being formulated by managers and leaders of Ensoft Ltd. In order to expand business at
international level requires high amount. Traditional approaches and other things may lead this
firm in grabbing attention of customers high in numbers. Henceforth, Ensoft Ltd. should mostly
use this sort of decision-making process may lead them to attaining goals and objectives right on
time.
Non - programmed decision making: These sort of determinations stays filled with high
risks. On the other hand, firm mostly deals in different sections where sometimes they have to
make quick decisions. Managers and leaders both faces many situations where they have to go
through difference aspects and through this they can take firm to both phases like increase in
reputation or decrease in it. Therefore, it is very much required for these business people to grab
good position right on time (Huhtala and et. al., 2014). For example: Ensoft company before deal
with the software of oracle, but due to advance technology and demand of customer of software
Java, the company has introduced the software so that it can meet the customer needs and remain
competitive in the market.
Hence, if can be concluded that if the above decision are programmed properly and the
company meet the customer needs then the company will grow rapidly.
P6. Assorted routes to internationalisation which can adopt by organisation, including key
barriers
Expansion of business stays filled with high risk along with barriers as well. Therefore, it
is important for business firms in grabbing good position in short period of time through
removing all the barriers that can be faced by business organisations. Prevention tools and
techniques should be properly adopted by management of Ensoft Ltd. Along with this, company
can hit their targets if they make proper and effective decisions. Apart from this, if firm is rapidly
fulfilling needs and wants of customers then it is may be possible that organisation may develop
products and services as well both at the same time (Kasemsap, 2015).
Including this, operations of business organisations may also get affected by different
barriers as well which needs to be properly understood right on time. This may put negative
impact as well on business organisation which may reduce their productivity, sales, profitability
8

along with other things as well which needs to be properly understood by organisations so that to
grab good position in short period of time. Research and development department of Ensoft Ltd.
should keep on analysing business market right on time. Some of barriers are given beneath:
 If Ensoft Ltd. Would not develop a proper budget it is may be possible that organisation
may easily enhance its reputation in short period of time. On the other hand, it is also
very much required for business person to adopt best approach which may not cost much
to them. For example: If Ensoft do not maintain its budget properly then it can face the
problem of cost, performance and will not be able to predict the cost which will incur in
future and them with outside pressure.
 Another hindrance is culture, which ought to be considered in a suitable way by firm
while extending business at worldwide level. With the assistance of this, organizations
can hit their objectives and positive condition can likewise be made by them ideal on
time which may help them in accomplishing objectives and goals in brief time frame.
Alongside this, cooperation is must among worker who has a place with various culture.
They are said to be a benefit for an association and there is no hope without them.
Consequently, organization should lead preparing for them with a specific end goal to
upgrade their aptitudes and learning (Kolk, 2016).
 Innovation is another obstruction which ought to be remembered while entering a radical
new market. This can expedite both positive or negative effect business firm. Along these
lines, it ought to be considered in fitting way and ideal on time. Examination of market
and continue finding zones in which rivals have influenced changes to can help in various
regions and to run business in substantially more viable way (Peng, 2016).
Hence, from the above points we can conclude that if the international barriers are
removed the company will be able to hire skilled and talented employees and will also be able to
retain talented employees of their company.
CONCLUSION
Lastly, from above mentioned assignment, it has been summarised that expansion of
business at international level requires high funds along with capabilities in order to run business
in successful manner at a whole new place. Strategies along with high potentials of business
organisation can help them in grabbing good position at totally new market. Through this, goals
and objectives can be attained right on time through which profitability and productivity along
9