Global Business Environment Report: Factors, Challenges, and Analysis

This report provides a comprehensive analysis of the global business environment, focusing on the key factors that drive global trade and commerce, including costs, markets, labor markets, raw materials, and environmental considerations. It also examines the strategic challenges faced by firms in this environment, such as international business structures, legal and regulatory issues, currency fluctuations, cultural and communication differences, and political risks. Furthermore, the report investigates the impact of globalization on organizational leadership and governance, as well as the influence of sustainable and ethical globalization. The report also covers various decision-making processes and articulates different routes to internationalization, providing a detailed overview of the complexities and opportunities within the global business landscape, using Boohoo.com as a case study.

GLOBAL BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key factors which drives global trade and commerce..........................................................1
TASK 2............................................................................................................................................3
P2 Complexity of strategic challenges faced by firms................................................................3
TASK 3............................................................................................................................................5
P3 Impact of globalisation on organisational leadership and governance..................................5
P4 Impact of sustainable and ethical globalisation.....................................................................6
TASK 4............................................................................................................................................8
P5 Various ways of making decision..........................................................................................8
P6 Articulate the routes to internationalisation of an company..................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Global business environment is linked with a environment in different sovereign nations.
Various factors include business environment which impact on making decision as per
capabilities as well as resources of the company. For operating activities efficiently and
effectively, enterprise have to concentrate on running at a level of international along with that
they also have to understand entire social environment of particular nation. In today's times,
thousands units of firms, i.e. large and small part of it. Globalisation is a concept of three
dimensional like as a philosophy, a process and a phenomenon. It raise enterprise running
flexibility and fast growth of local area enterprise within a future market. In this report,
Boohoo.com is a retailer of online fashion as it was established in 2006. This organisation is
earning higher profits through their experiences by keeping budgeted cost of the year 16 to 24
old persons (Cantwell, Dunning and Lundan, 2010). In this assignment also describe different
main factors that help in driving up of global commerce market. They has also describe various
challenges which are faced by enterprise while running within a global market also about routes
and barriers of internationalisation of present enterprise.
TASK 1
P1 Key factors which drives global trade and commerce
Globalisation entails by a worldwide transaction of trade integration, communication,
finance and economic. It implies by applying of domestic and local enterprises within a level of
international market with a purpose of wider outlook for making a free capital as well as goods.
In context of enterprise, it involves modifications within an organisation which is linked in a
single nation and have to operate within a various country. With this, influence of globalisation
on a practices of core enterprise are divided into two different parts like as production and
market globalisation. In this, globalisation in market decline barriers which sell in others nations
as well as manufacturing globalisation is a source of products and raw materials from other
countries for achieving higher cutting edge (Cavusgil and et. al., 2014).
Therefore, some modifications can facilities to achieve higher profitability as well as
sales within a level of international market. It raise joint ventures and mergers which arrived
within a large area of market. Some of various factors affect global traders and
commercialisation are as follows:
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Cost: It is a main thing that include in research activities, marketing, manufacturing etc.
Hence, it can said that cost is enclose with a value of finance as well as make proper practices of
enterprise. It is also used in producing products, something with quality and carry out them from
one place to other. Global trade and commerce determine the cost of enterprise.
Direct cost: Something which is definite with a cost happen within a cost object by
putting small efforts. Therefore, objects of cost are project or goods. Many of direct cost is a
variables e.g. wages incurred in concrete manufacturing, gravel cost, cement and sand.
Indirect Cost: It is which goes beyond expenses which include in manufacturing of goods
by enclosing of pricing policy which is maintained by whole company. Various supplies as well
as materials are needed in daily activities of enterprise is called as indirect cost.
Impact of cost on global trade: As international trade gives opportunities to organisations
to trade their products internationally. But it is generally affected due to transport and logistic
costs. Since, 90% of trade in the world is done by marine transport so, due to increase in rate of
fuel, shipping cost also fluctuates. Thus, increasing cost of shipping can drop international trade.
Similarly, exchange in foreign currency rates also affect trade at global scale. Thus, to afford
such expenses for conducting business in international market is not easy for small companies
including Boohoo.com.
Market: It is a place where various transactions are made of exchanging services as well
as goods. Global trade and commerce also determine companies market. Therefore, some
companies directly provide their goods to customers along with that certain goods are sold by
entire sellers. With this, cost of global market, value and price are traded according to supply and
demand of goods. Some of key factors of markets are as follows:
Impact of market on global trade: Since main purpose of participating at global scale is
to serve products worldwide. Therefore, trends of market, demand of particular products, taste
and preference of customers as per different culture are some factors which affect international
trade more. Therefore, any change in trend and demand of market will affect profitability of
Boohoo.com and other organisations running at small scale.
Labour markets: It is a market for those persons who are searching for a job within a
country or in a particular region. In United Kingdom, various opportunities of jobs are available.
It included driven up the market of global commerce and trades of country that help to achieve
higher competitive edge (Colfax, Rivera and Perez, 2010).
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Markets for raw materials: Raw materials and inputs is one of main substance which is
utilize in manufacturing a finish products. On other side, there is having a wider raw materials
which are sold or trade all over the world.
Environment: It involve with in a environment in which they run enterprise as well as
activities in a effective way. Environment of enterprise is modified according to time along with
that it gave a huge influence on industry operations and practices in a indirect or direct way.
Hence, it is important for firms to analyse future and determine a right work contrast for
managing all modifications properly. It included various aspects are as follows:
Political factors: It is an important uncertainty source within a fashion business. In this
factors entails with a taxation policy, regulations, government laws which are made by
government bodies. It hinder capability of top and bottom line both of an organisation in context
of its ability of customer paying and corporation taxes which are associated with income taxes.
Economic factors: It volatility get affected by profits and sales of any enterprise. At a
period of economic boom or recession, buyers cant pay much for expensive items. This factor
include inflation rates, exchange rates, interest rate, people income, unemployment etc.
Social factors: Their are important social modifications are raised in past years as well as
hinders fashion goods demands along with that which brand or goods they preferred. Hence,
global population of demographic bring out lots of threats and opportunities to online fashion
businesses.
Technological factors: In today's times, development of enterprises is linked with latest
technologies. Globalisation, utilise technology information, raised use of mobile phones for
improving the experience of shopping of persons as well as high sales, buyers choices and
marketing.
Impact of environment on global trade: As business environment consists various factors
like political relations within countries, policies, legislations and more. So, it creates a large
impact on international trade. It arise various benefits as well as drawbacks for organisations. In
this context, one of the biggest advantage for Boohoo.com is that it can expand operational
activities at global scale. As this company faces stiff competition domestically so, it also
provides a wealth of opportunities. But, participating in global trade arise various type of risks
also. It includes legal differences because every nation has own trade and other laws so, this will
be difficult for small companies like Boohoo.com, to export products in more than one country.
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TASK 2
P2 Complexity of strategic challenges faced by firms
In today's times, various issues and challenges are faced by small scale enterprise which
affect industry activities as well as working functions. Strategic barriers and challenges also
make different opportunity sources in context of enterprise expansion in whole world because of
pace of modifications and global interaction in company have outcomes in increasing complexity
(De Jonge, 2011). It makes challenges of risk management towards organisation for addressing
further obstacles or barriers which affect on industry. Some of leading complexity reasons which
became part of globalisation are innovation speed, variability of complexity, government and
regulations oversight and information management. Some of important challenges or issues
faced by company are as follows: International business structure: Foreign activities help in growth of companies as well
as modify the targets of markets. It overseas different opportunities of growth as well as
an independent classify which observe all activities of international organisation. With
this, it leads with re-organisation and amalgamation for accomplishing all activities and
tasks in a best way. Their are various departments include the structure of international
enterprise like as research and development, finance, human resource for making a good
concentration on activities expertise. All these are classified in an proper control on all
centralised functions. It is difficult to manage structure of internation enterprise as there
are some of external competitors which impact on entire performance of each company. Laws and regulations: At a time of performing within a international market, it is
important for each enterprise to remember about all legislations and laws which are
passed by government bodies for maintaining standards as well as ethics. These
protocols are taken for promoting areas of enterprise in many others nations. These laws
help for properly operating of working activities and tasks it also analyse future for
achieving strategic objectives and goals of company within a limited period of time.
Therefore, implications of taxes are accomplished to make trading much successful and
effective in other countries. Therefore, labours and employment needs are vary from
other nations (Ferraro and Briody, 2017). Currency rates: Its payment and prices is an much imperative barriers for enterprise
entities due to changes in rates of currency affect on profits and sales of company. It also
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involve one of main issue which is navigated by Boohoo.com. It is important to analyse
interest and exchange which is charge to enhance enterprise in other nations. They are
needed to make techniques as well as take a decisions for saving themselves from
changes in rates of currency for higher advantages within a market. Cultural and communication difference: It is an main aspect which is needed to
enhance enterprise all over the globe. Proper communications help in improving area of
networks of a company entity hence, it is very easy to reach higher numbers of
customers within a limited period of time. While enhancing strategy of international
market, managers have to focus on maintaining a free flow of interaction within top to
bottom level of management. It outcomes will give suggestions as well as best will be
applied (Gecevska and et. al., 2010). In other side, differences in cultural will affect
global trade as their demands and needs of country vary from one other. Before
enhancing a enterprise in other region, Boohoo.com have to organise a research as well
as understand the culture of nation in which it run for retaining and attaining buyers for a
long run.
 Political risk: It is being unstable as well as uncertain because of economic recession
and crises by this it affect the stability of political in UK. Therefore, having a strong
stability in political is consider as a biggest opportunity as well as in other nation it
hinder the business functional area in context of decreasing sales because of unstable
situation of political, enter target market of organisation. In this, requirement to make a
assessment of risk which is associated with economic and political aspects which are
difficult within nature.
TASK 3
P3 Impact of globalisation on organisational leadership and governance
Globalization is a process and ideology that became dominant cultural, economical and
political force in modern times. Process of globalisation is a evolution which is increasing at a
time of global economy merged mainly by tapping of low foreign labour market, free trade and
free flow of capital. Before current trends are raising globalization, organisation mainly include
market as well as buyers base to their nation of origin. Therefore, fastly spread of diversity.
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Impact of globalization in a positive and proper way to enterprise entity. Hence,
management have to enhance effective techniques so that they can take good decisions within a
perfect directions. Some of aspects are globalised which have a great impact are as follows: Leadership: Each business analysed future foe expanding their enterprise in other
countries so they can achieve higher share of markets as well as rising opportunity. It is
having a higher influence on working situation as well as styles of a company in various
ways and sometime it can close overall company. It indicates research that supervisors
have to take a effective decisions as well as have to make proper techniques by using
adequate tool of data collection (Hamilton and Webster, 2015). Execution of efficient
leadership can do all work and functions in a perfect direction along with it aid in
dealing various conditions also. With that, a leader encourage other worker to do all
work in a best way which can raise output and performs level of company. It also
improve work life quality by accepting all the challenges of environment because of
modifications in enterprise, leaders have to determine adjustments ways and adopt
modifications. Variations of environment related with inabilities to be a open minded
towards latest ideas, cultural, beliefs and thoughts are represent particular to move
forward. Enhancement of integration and globalisation of latest technologies force
manager to again think of how they can do a business as well as lead by making daily
reinvesting and improving of an organisation. Organisation cultural: It is a set of values, opinions, symbols, attitudes and ideologies
which are shared by companies. Mainly, culture of firms affect a way by which company
can achieve the objectives of firms. Making a framework in which organisation make
policies. Boohoo.com run within the world as well as always analyse forward looking for
expanding itself in other nations for higher profits. Organisation manufacture qualitative
clothes according to the trends of markets, its outcomes is person have to buy goods and
services in a very high quality. Therefore, a company moves in other nations then it
needed to maintain an imperative culture of companies in which workers can easily
communicate with higher authority. It also include workers faith, morales, beliefs and
values as they are ready to perform in other nations. Hence, for maintaining a companies
culture it aid in taking to a right direction.
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 Governance: In previews decades, individual living standards are increased and
improved. All this have to accomplish to govern things in a right way, hence if a
company governed or control its activities of enterprise in a proper way by giving
training and development assistance of workers in a indirect and direct way (Kasemsap,
2014). Organisational structure:Every company has its own structure which shows how
different departments and functions are linked with each other to accomplish a specific
goal. Therefore, to blend this process in globalisation, managers of Boohoo.com are
required to consider some main aspects. In includes planning strategy, purpose which
this company need to achieve and changes in structure accordingly. In order to conduct
business at global level, an assessment of plans is required firstly. Since 'one-size-fits-all'
is not an effective strategy therefore, Boohoo.com is required to adopt some approaches
which should be backed by logic and careful planning.
 Functions: Globalisation includes transfer of information, exchange of technology,
skilled employee mobility, flow of financial funds and more. So, it creates a large impact
on functions of a company also. In context with Boohoo.com, to take business on global
scale, it has to develop strategies, policies and introduce latest technologies in business.
So, all these process will change working structure and functions of business as well.
P4 Impact of sustainable and ethical globalisation
Globalisation leads to integration of different culture, economics and regional societies
by proper communication, transport and trades. It is linked with a integration of domestic into a
foreign economics so it will achieve a higher competitive edge. Proper sustainable global and
ethical firm will help a organisation to grab the opportunities of market, level of customer
satisfaction and improve strength of financial. In fact, ethical acquisition or legislation method
improve enterprise standards as well as work life quality whereas some practices of marketing
carry out some issues and risks. Boohoo.com is a global company by having a higher range
goods and operates their business in a whole world. Hence, it is very complex to give and
manage the aspects of ethics and business sustainability.
For example: if a country changes its trading functions it allow free capital flow as well
as make easy migration process. It also retain possibility of fruitful technological and economical
process. Organisation wealth depend on its nature of raising engagement and sustainable
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development of foreign funds by seeing the value of ecological ethics. Some of areas impact on
sustainable and ethical globalisation are as follows: Consumer confidence: Boohoo.com is enhancing their retailers of online fashion which
put mark on mind of consumer in a whole world by acquisition of ethical company
cultural at working environment. It outcomes improves the quality of serves as well as
goods. Hence, it is a main for enterprise to manage quality services and market value so
as to achieve high competitive edge. As a small scale of enterprise, Boohoo.com has a
various rivals within a level of international market like as Lime-road, Shein, H&M, Zara
etc. all this capture a higher share of market. In this relationship, mention enterprise
entity need to conduct attractive campaigns of marketing for improving the value of
brand. Hence, to get a higher level of satisfaction company have to improve clothing
quality (Laudon and Laudon, 2015). Reduction of financial liabilities: While running a worldwide business, Boohoo.com
require to decline its financial liabilities as well as focus on raising assets. Increasing of
liabilities lead towards diminishing the image of market as well as unethical practices of
organisation. Effect on process of recruitment and selection: Enterprise need to apply some legal
practices at a time of hiring a particular person who are having a better abilities and skills
to execute all working functions. Management have to follow all laws and guidelines,
terms and conditions that are pinned by a British government such as labour practices and
labour law. Beside this, Boohoo.com has made a team who is liable for defining all legal
aspects of training and development as well as hiring and selection. They also follow the
law of child labour.
 Health and care: This involve various ethical barriers and aspects, enterprise are needed
to apply effective measures which maintain a positive as well as healthy workplace. For
example: in manufacturing industry of Boohoo.com there is having a use of chemical
which invites various health problems (Louhiala-Salminen and Kankaanranta, 2011).
Company need to make proper actions for declining consumption of chemicals which are
not healthy.
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Through using these components, any enterprise can easily improve standards of markets
and maintain legality. Some laws and rules help an company to finish its techniques objectives
and goals within a given period of time.
TASK 4
P5 Various ways of making decision
When enterprise, such as Boohoo.com is expanding a enterprise at a global level. It
always organise a good research market for collecting important information about targeted
market which help unit to collect a good marketing techniques as well as take proper decisions. It
will contribute to improve their capabilities within the company as it is very easy to perform in
various conditions. Both management as well as guides to select a best plan of working which
purpose is to raised the share of market of an organisation.
Different ways to make decisions in an organisation are:-
 Create a constructive environment: As decision-making is one of a complex process
which affects whole working environment of a company. Therefore, creating a
constructive environment will help in exploring the situation where workers and other
stakeholders give their opinion to take right decisions. It will aid to obtain high
commitment of others in implementing a plan.
 Investigate a situation of business in detail: In order to take right decisions, it is
essential for managers of Boohoo.com to understand whole situation first. For example-
To enhance productivity of business, it is necessary for managers to analyse in which
area they need to change first. This would help in making decisions to determine whether
introduction of new technologies is beneficial or not.
 Iterative Convergence- This technique is also known as Delphi method under which
members of a company give suggestions and feedback on a particular condition. It will
help in generating ideas through which major decisions can take to enhance profitability
of business.
Some ways of taking a decisions which make a task imperative are as follows: Pinpoint the issues: For taking a imperative decisions of enterprise, firstly supervisor
have to highlight or pinpoint all problems which occurs at a time of expanding a
company all over the world. Hence, it will give best guidance to a organisation as well as
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manage proper criteria of working. Environment of market is also modify according to
time by accomplishing wider organisation research will come to know various factors
which hinder enterprise practices also (Peng, 2016). Determine solution: Organisation will work hard for knowing the issues raised in future
as well as they find out best solution of it. Actions or decisions are taken which do not
affect company working situation and profits as well as sales. These steps aid in finishing
a objectives and goals in a effective way. Implement solution: When organisation analyse forward looking as well as expand
enterprise. It need to execute effective solutions which help in facing a challenges of
market and problems are eliminated. Hence, apply a solution in a proper manner aid
Boohoo.com to sustain at a higher competitive edge.
 Evaluate the effectiveness: At end, organisation who analyse future requirements to
measure properly as well as potency of all decisions. It also depends on evaluating
present issues as well as reasons behind this have to resolve by measuring a proper
actions (Simic and Dimitrijevic, 2012).
P6 Articulate the routes to internationalisation of an company
After the period of globalisation various enterprise have to start enhancing a enterprise
functions properly. But there are various issues that are linked with a procedure it lead to modify
the factors of environmental and other components. Boohoo.com have to face various problems
to select a various options which are available as well as they have to execute effective decisions
according to it. It is an management responsibility to analyse all steps and actions that are
represented as well as evaluate it effectively so that most effective step can be organise which
will lead to meet final targets as well as purpose in a efficient and effective way. Various
problems as linked with this as given below: Legal protection: It is refer to a various rules as well as regulations that have to perform
by enterprise in various manner. As several nations have different legal protections rules
to lead a issue of generation linked with it (Tarique and Schuler, 2010). Monopoly: It is a procedure that stop organisation while entering within a new place of
market. Therefore, it includes single enterprise which enjoy right transactions and
operations. It pose a very big issues for various rivals as a specific organisation which can
not run activities free and smooth way. With this, monopolies help to collect various
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problems that may be a issue for enterprise entity as no one can enter easily within a
market. It need that owners have to licences as well as patents which represent
manufacturing of similar substitutes.
 Corruption problems: There are various nations which are facing issues of corruption
linked with problems. It restrict performance of enterprise in different manner as well as
thus can hinder organisation function in several ways. It stop entity to introduce their
process of work internationally (Trompenaars and Hampden-Turner, 2011).
All these pints which are discussed above are basis restrictions that allow company to go
beyond national boundaries. Therefore, effective steps can eliminate various barriers that lead to
raised issues as well as cause various problems within a enterprise system.
Routes to internationalisation: The expansion of business in international market drives
rapid success to a company. In this regard, some routes to internationalisation for small
companies like Boohoo.com are explained as below:-
 Joint Venture:It refers to a type of business agreement where two or more organisations
make contract to share resources, capital, risks and revenues. It will help them to gain
access in new niche markets. Therefore, to take business on global level, Boohoo.com
can joint their business with other small companies.
 Franchise: It is a proven route for a company to successfully expand its business market.
As within domestic market of UK, potential for growth is high therefore, franchising
reduce the need of capital investment for small companies. So, franchising will aid to
Boohoo.com to access the required capital for growing business internationally.
CONCLUSION
As per above report it is concluded that globalisation is a wider term which gave a high
influence on all functional areas of enterprise. It linked with consolidation, appearance and
development of global markets for improving economic success as well as growth. Their are
various factors like as environment, markets and cost which raise global enterprise trade.
Boohoo.com is an small scale enter[prise retailer which deals to manufacture innovative and new
clothing goods for an age of 16 to 25 age peoples. Structure of company rules as well as
regulations of the rates of currency, political situations etc. are major challenges which are faced
by running within a global market. With this, globalisation has a high influence on functions,
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cultural, structure, governance and leadership in this companies relations are needed to evaluate
external and internal components which affect decisional function. Therefore, main route of
internationalism are corruption, bribery, legal protection and monopoly.
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Online
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