Global Business Environment: Strategic Challenges and Opportunities

This report provides a comprehensive analysis of the global business environment, examining the key factors that drive international trade and the strategic challenges businesses face when operating on a global scale. The report uses CM Downtown Ltd., a UK-based logistics company, as a case study. It explores the influence of globalization on organizational governance, leadership, structure, culture, and functions, as well as the impact of sustainable and ethical practices. The report also delves into effective decision-making processes in a global context and discusses various strategies for internalizing a business, including potential barriers. The report concludes with an overview of the findings and recommendations for businesses navigating the complexities of the global market.

Global Business Environment

Contents
Global Business Environment..........................................................................................................1
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Key factors that drive global business environment and trade..........................................3
TASK 2............................................................................................................................................4
P2 Strategic challenges faced by business while operating business in global environment
with specific examples...........................................................................................................4
TASK 3............................................................................................................................................6
P3 Influence of globalisation on organisational governance and leadership, structure, culture
and functions..........................................................................................................................6
P4 Influence of sustainable and ethical globalisation on organisational functions................7
TASK 4............................................................................................................................................8
P5 Different ways of decision making that work effectively for organisation in global context
................................................................................................................................................8
P6 Various routes that articulate and determine route to internalise a business including key
barriers....................................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
The term global business environment can be defined as the environment of different
countries by considering all aspects that relates business and its operations as they directly
impact on resource and capabilities of organisation. From perspective of global company or
organisation management deliver all of its products and services among different countries to
enhance their customer base and sales revenue. This report is written from perspective of CM
downtown limited which is one of the UK largest logistic company that is owned and run by a
family business. Along with this it is CM downtown follow three different perspective that are
flexibility, commitment and agility to satisfies customer needs effectively. Moreover, this report
highlights on key aspects that impact on global commerce and trade and strategic challenges
faced by organisation to operate business in global environment (Saleem, Adekola and Sergi,
2016). Influence of globalisation on organisational governance, leadership and structure will also
be focused in this report. In the last, methods related with decision making to work in global
context will be covered.
TASK 1
P1 Key factors that drive global business environment and trade
Globalisation concept determines changes in rules and regulations of country in which
local and international companies perform their work as per laws of a country. Cost, market,
competition and environment are some aspects that impacts on international trade and activities.
Therefore, management of CM Downtown focus on aspects to retain company productivity by
managing all work as per international rules and regulations that assist business to retain their
brand value and goodwill in market among various countries.
Cost factor- Cost is one of the crucial aspects for organisation and business which operates
and manage business beyond their local boundaries. This refers that there is change among
economy of country due to which purchasing power and transportation cost is also differ. So it is
the responsibility of management to invest capital and monetary transaction as per business
requirement (Boshyk, ed., 2016). In context of Downtown limited financial department of
organisation decide cost of its services by considering all essential aspects including fixed and
variable expenses. Example- Fluctuation in fuel prices impacts on overall profits of organisation
that relates with cost of services offered by downtown limited.

Market factor- The term market refers to the place where buyer and seller interact with
each other to exchanges within products and monetary aspects. Market performs an essential role
in expansion of business at global or local level. CM Downtown focus and monitor all essential
aspects related with market in order to identify customer needs and wants. It works as positive
factor for organisation that enhances market area to complete all task in appropriate manner by
offering services as per buyer expectation that boost trade activities at global level (Hill, 2017).
Environment factor- The term environment aspects consider all those points which
surrounds a business and its operations performing their work or activities at different places.
From recent years environment is one of the most important factor which is leading business to
manage their work to ensure safety of its environment by understanding laws of country. Along
with this it also demonstrate to perform work by understanding and making strategies that leads
business to perform work as per global trade. Further, it also helps to perform work as per ethical
value in business which generates goodwill in market.
Competition- According to existing market conditions competition among countries is one
of the crucial aspects that are impacting on business. This refers that there are large number of
companies are performing their work within similar industry due to which it is mandatory for
CM Downtown to perform its operations and functions with utilising and implementing unique
and innovative feature in its global trade activities (Kirton and Trebilcock, 2017). Moreover, CM
Downtown is a family owned business due to which they maintain quality such as better
infrastructure and less delivery time to offer better transport services to its customers. This also
results management is able to gain competitive edge in market.
TASK 2
P2 Strategic challenges faced by business while operating business in global environment with
specific examples
Global business and its rules are totally different which generates various issue for a
company to manage their task at global level. Similarly on other side globalisation also provides
various benefits such as increase in market area and revenues by approaching more number of
customers to earn more amounts of profits. Skilled, capable and potential employees are also
attracted and recruited by company through selecting candidates from various countries.
Disadvantage or challenges which are faced by downtown to expand business is difference in

social and culture difference due to which its promotional techniques or operations are impacted.
Some of the challenges faced by organisation are as follow:
Laws and legislations- Each political environment of a country formulate local laws
which are designed to ensure the interest of local and global companies to perform their
operations in their country as it increases economic of country. This also determines that all task
are performed by management within proper manner by performing task as per rules of country.
CM Downtown is performing their business within different countries by following all rules and
regulations which work as positive aspect for organisation (Lasserre, 2017). Example-
Transportation and logistic rules within developing countries are flexible so it is for Downtown
to perform all task effectively. Laws also enhancing market area for business by retaining
sustainability in organisation functions.
Social and cultural difference- individuals and residents of a country follow different
values to perform their work. It also determines that background, culture and social aspects
which are followed by the public also impacts on operations of business. Example- if society and
buyers are biased towards local organisation then transaction rates of business is not sufficient or
low to retain for longer period in market. This also determines that there are various challenges
leads company to manage its work and perform all task and project by generating positive
relations with local stakeholders of organisation. CM downtown enhances employment
generation which work as positive aspect to increase global trade.
Political risk- Political aspect of a country undertakes all rules and regulations that are
developed and implemented by ruling government of a country. From the perspective of CM
downtown company focuses to manage their work that not impacts on global environment to
perform its operations by current policy of organisation. Respective company is performing their
work with motive of as per changes in current policies of country. Like due to Brexit company
face challenges but due to stable government and policies it is easy for management to perform
all tasks within effective manner (Laudon and Traver, 2016).
Monopoly market conditions- In this situation organisation is able to perform their work
with single seller in market. This is positive as well as negative aspects for CM Downtown to
perform their work with motive of completing all task and projects as per expansion policies in
market. From perspective of CM downtown limited they are performing and managing its work
as per conditions that provide competitive edge against monopoly conditions of market. It also

refers that with expansion of business leads to become an international company which assist to
gain positive point to work as per monopoly conditions in market. Example- developing
countries organisation are low in financial sector. So it work as positive aspect for CM
Downtown to develop new and innovative system which is complex to replica by competitors.
TASK 3
P3 Influence of globalisation on organisational governance and leadership, structure, culture and
functions
Globalisation and corporate governance defines various system related with rules, policies,
regulations and many more. With help of this rules and regulations management is performing its
task to direct organisation efforts towards goals and objectives of organisation. By directing all
roles towards day to day operations all task are completed within organised manner that leads
company to gain desired results (Lewis, 2019).
Leadership- Leader, manager, superior and other top authorities plays an essential role in
organisation which leads company to gain top position in market. Cm Downtown is a family
owned business so they are responsible for implementing all motivational theories which boost
performance of employees by fulfilling their needs and wants. Number of operations to retain in
market is also increased due to globalisation aspect. Therefore, to deal with organisational
changes leaders also ensure that its structure is well developed for entering into international
market. Like, to influence employees towards new structure leaders of CM Downtown adopts
democratic leadership style from autocratic to manage their operations in appropriate manner.
Governance- With effective governance an organisation achieve their targets and goals by
maintaining stability in market. Within context of respective organisation long term as well as
short term goals are managed by company with managing its operations as per management and
its teams. Governance also perform an essential role in making effective decision for
organisation by evaluating policies that are designed with motive of gaining top position in
competitive market. Further, by follow of all legislation Downtown is entering into new as well
as current market to perform their operations as per local society, value and ethics of a country
(Miller and Jentz, 2017).
Functions- The main function of an organisation is to complete their work with proper
transportation of services. From the perspective CM Downtown organisation is performing

different roles that lead management to expand their business at global level. It also determines
that organisation is leading new and innovative commercial business to perform all task within
proper manner. This also determines that company manage their finished products by using
innovative products to perform their work by managing its goals and objectives. It is also
managed by leading organisation to manage and complete all task and operations to influence all
functions that generates laws and legislations as per functions.
Culture- There are various task and operations managed by organisation for enhancing its
task and operations that perform work as per culture. CW Downtown perform its operations and
functions to complete task and functions that generates tangible and beneficial results to gain
productivity as per transformational leadership. It also requires large number of cultural
differences with approach to maintain geographical areas. Due to globalisation companies are
also performing their work that changes and influences with approach of gaining long term
results with same approach. Along with this to influence work as per globalisation there are
various task are performed by management which is impacting on goals and objectives by
influencing more number of persons (Slack and Brandon-Jones, 2018).
P4 Influence of sustainable and ethical globalisation on organisational functions
Ethical globalisation means integration with economics, societies and culture that are
performing their work at global within ethical and valuable manner. According to present global
market conditions an organisation influence customers, suppliers, shareholders etc. to perform
their work at global level.
Sustainable organisation determines as a systematic process that relates with development,
enhancement, diversification and expand of business at global level. Along with this it also
increases survival and profit maximisation of organisation through increasing number of
customer base. This also refers that with stable position among market CM Downtown is also
able to complete all task as per international level by overcoming from loopholes in organisation.
The concepts of sustainable globalisation refer to the principle that is oriented based and
perform all task as per value services and collaboration. This also refers that it emphasis to
perform work with proper utilisation of resources and support that build long term financial and
human capital. Moreover, it also increases capability to perform their task at international level
through understanding some below aspects:

Human resources- Human or personnel are the most valuable asset of an organisation that
leads CM Downtown to perform their work as per international level. Management of respective
organisation manage their work by delegating right roles and responsibilities to workforce as per
company goals and objectives. Along with this company is also performing their work by
determining effectiveness among human resources that maintain globalisation operations.
Further, with equal responsibility and authority human asset of organisation also maintain right
operations ( Stacey, 2016).
Finance- Monetary transactions of a business are most important part of an organisation
which leads to run and manage its operations in smooth manner. Financial perspective also
includes different perspective that runs business to manage operations. CM Downtown manage
finance operations by recruiting right and professional personnel to provide equal rights of
living. It also helps company to manage their work as per ethical manner and sustainability to
perform all operations in systematic manner.
Marketing- Promotion, advertising and marketing are most important for CM Downtown
limited that is promoting business activities at multi-national level. Main concern of marketing is
to understand existing customer needs and wants. Along with this it also helps to understand
current trends of market. Managers also manipulate its products that customers focuses to
produce products which leading business to gain sustainability and manage its work to promote
business with sustainable operations as per globalisation aspects to gain long term impact in
market.
With sustainable and ethical aspects organisation is performing their work as per decision
making in global context (Slack and Brandon-Jones, 2018). Along with this task and operations
work as moral philosophy that is motivating personnel as per age, gender and market conditions
that generates experience for organisation to decide right and appropriate function for
organisation. Along with this subordinates and superior also perform all tasks efficiently as they
manage work as per ethical decision making process.
Globalisation also relates with growing economic interdependence for countries at worldwide
level. This determines with increase in volume and variety of cross-border transaction goods and
services as well as international capital flow also spread rapid diffusion to come up with
technology. Example- forced labour generates issue for organisation like it is complex for
company to perform work due to demotivate workforce.

Labour turnover is the another issue that is faced by management as management face
challenges because majority of workforce is not aware about the skills that are required to
manage business at international level.
Rules and regulations also impacts on the work performance of the organisation because
it country develop their own rules and regulations for ensuring the interest of local companies in
market.
Intellectual rights also work as a positive aspect for CM Downtown as company expand
their business in other countries. So with trademark method management ensures safety for there
tools.
With the growing trade and flexible travel policy, human trafficking is also raised so it
work as a challenge for company to manage. Further, CM Downtown offers jobs to local
individuals of country to manage in which they perform their work. So it is easy for company to
deal with human trafficking with ethical approach.
From recent years environment safety is major concern for all organisation and industries
due to globalisation. So CM Downtown implement CSR practices specifically to ensure
environment safety with leads company to gain sustainability in international market.
Evaluation of global market influence for implement appropriate theories and model related with
organisation culture and structure
It is essential to understand impacts of culture on organisational culture, structure,
functions and leadership. Therefore, Mckinsey 7's model is implemented to understand
globalisation aspect.
 Strategy- CM Downtown Limited is a family business so management formulate long
term strategy due to less turnover of employees. So with formulate of strategy as per
structure and culture better results are gained by management.
 Structure- It defines how company organise their work as per teams and structure.
Company follow sequential structure so it work as positive points and influence
workforce to work as decided structure.
 System- It is not influence by organisation because management formulates system as
per routine and daily activities for completing job in proper manner.
 Shared value- Value and ethics are core element for organisation so it is essential for
respective company to influence and motivate employees as per their value.

 Style- This refers to the style which is adopted by top management. Democratic
leadership is implemented by CM downtown to influence employees for completing
work towards company goals and objectives.
 Staff- Workforce and individuals are most powerful asset so by implementing right
models it is easy to complete task in minimum time period.
 Skill- This are the actual skill, capabilities and competencies which are required to
perform job role in effective manner.
In the context of sustainability and performing of work as per ethical reasons it is identified that
company performs all task with positive approach so it is easy to complete project with in
minimum time period. Example- CM downtown perform work by encouraging morale of
employees to perform their work in effective manner. Further, management also concern about
there intellectual rights which is patent and copyright as it help company to represent all
premises of company similar among other countries.
TASK 4
P5 Different ways of decision making that work effectively for organisation in global context
Decision making is a process that helps for selection of right, specific and effective course
of action to complete all project effectively. Manager and employees of CM Downtown also
focuses that workforce of company participate in organisation projects to analyse interest of
stakeholders to make effective decisions which enhance business at international level. Along
with this sustainability in market is also achieved by company through market analysis. Ways
through which leader of CM downtown enforce decision making is mention as follow:
Collaborative- Leaders of an organisation perform major role to take right decisions and
implement them as per view and opinion of customers (Stacey, 2016). Final decisions of
company are also take by management through involving large number of individuals in
effective decision making of company. Staff members and workforce are engage in company
decision making to consider right roles for each personnel.
Command- Most of CM Downtown projects which are performed at global level leads by
teams and group members. So management includes all individuals because they provide right
feedback to perform company task due to their involvement in organisation. Best way of

decision making is to make proper alignment of personnel as per global level that leads leaders to
reduce uncertainty and risk from operations of company.
Convenience- Delegation of power is one of the key aspects of convenience that is leading
company to perform work with in teams. This determines by dividing power to team and its
members better intellectual capabilities gained by management because it increases morale and
motivation of workforce through providing them responsibility to accomplish company goals
and objectives that deals with international issue and challenges.
There are various issue are also faced by respective organisation while performing their work at
global due to changes in market conditions and region. Strategic capability is one of the major
issue that is impacting on operations of company by non-implement of plans on organisational
goals and objectives. This also refers that it is mandatory for CM Downtown to formulate right
strategy for there work. Leaders and other top authorities also perform an important role to make
right decisions but to complex business environment it is complex for leaders to formulate right
assessments for their work. In the last, to deal with all this issue organisation concern right
strategy and also enhance development skills of leaders to make accurate and right decisions
which also solve issue for companies.
P6 Various routes that articulate and determine route to internalise a business including key
barriers
Internationalization intends to extend their business at a worldwide level. It says that their
business is gone into an outside market for working their business exercises. Globalization or
internationalization helps in improving their business exercises which likewise upgrade their
development or profitability and furthermore to build up an economy successfully. This idea says
that various organizations are interconnected or interlinked with numerous nations which
encourage their business to turn into a globalized (Taneja, Sewell and Odom, 2015). In setting of
CM Downtown., their primary thought process is to catch an enormous number of pieces of the
overall industry and to pull in various clients by giving a decent and one of a kind nature of items
and administrations at commercial centre.
They utilized numerous practices during a period of growing their business at a worldwide
level, for example, joint endeavors, permitting, trade import, etc. which are talked about as
beneath:

Joint venture- Joint venture is one of the official business agreement within two and more
parties that work for similar and common purpose. Both parties demonstrate their interest in
profit sharing, risk, decision making and ownership of business. Joint venture work as positive
aspect for CM Downtown as it develop and contribute new asset and tools that satisfies needs of
customers and wants within appropriate manner. It also works as positive factor which is
enhancing economy of a country by enhancing number of business activity. On other side, it also
impacts on internal culture of organisation due to which its operations are impacted (Taylor,
Doherty and McGraw, 2015).
Permitting: A permit is an understanding which intends to give an official authorization for
accomplishing something, to duplicate or to exchange products (Slope, 2017). It is a procedure
which permits or gives a consent for assembling an item starting with one organization then onto
the next organization after instalments for a predetermined period. There are a few points of
interest of permitting, for example, effectively went into a remote market, gives different
chances, etc. Though, significant hindrance of authorizing, for example, huge number of rivalry
at commercial centre, effects on their notoriety, loss of control, etc.
Franchising It is an advertising idea which helps a business for growing their business at
worldwide level. Diversifying implies there is an understanding between two gatherings, for
example, franchiser and franchisee. At the point when one gathering gives a privilege to another
gathering for utilizing their exchange name for creating a merchandise and enterprises on a
correct time. There are a few advantages of diversifying which incorporates wellsprings of
financing gets simpler, handily went into an outside commercial center, catching a piece of the
partial products, etc. While the significant downside of diversifying are some of the time cost
might be higher, incorporates different limitations, etc.
By evaluating all the ways it is identified that organisation perform all work as per strategic
capabilities due to which all task are performed according to right decisions. Leadership or
leaders are most prominent persons that leads individuals to perform work with positive
approach. So to enter in global market management delegate right responsibility and authority to
all individuals for performing work in effective manner. Decision-making is also an important
task by which organisation manage their task in appropriate manner. So with right decisions it is
easy for management to complete task and gain long term results in market.
Challenges to globalise a business