Global Business Environment Analysis: CAMECO's Strategic Report

This report provides an overview of the global business environment and its impact on CAMECO. It begins with an introduction to the global business environment, emphasizing both internal and external factors that influence business objectives. The report then defines globalization and its importance for CAMECO, highlighting the benefits of free trade, foreign direct investment, and economies of scale. Key drivers of globalization, including technology, transportation, emigration, and government information, are discussed in detail. The report examines the significant impact of digital technology on globalization, emphasizing its role in communication and customer engagement. A PESTEL analysis is conducted to assess the political, economic, social, technological, environmental, and legal factors affecting CAMECO's performance. The report also addresses globalization challenges, such as rising inequality and trade imbalances, along with strategic challenges related to legal compliance and corporate social responsibility. Finally, the report offers recommendations to overcome these challenges, emphasizing the importance of effective strategies, awareness of legal and political factors, and the adoption of advanced technology. The report concludes by summarizing the essential role of globalization in economic growth and the impact of various factors on business performance, particularly for CAMECO.

Global Business
Environment

Introduction
 Global business environment which impact on decision making on allocating
the resources. It includes internal factor and external which strongly affect to
business objective and goals.
 Internal factors are those factor which is controllable by company which helps
in enhancing strength and overcome the weakness of the company.
 In the other side external factors which is not controllable by company and it
impacts on over all business. Example – technology changes , political factors
etc.

1- Concept of globalisation
 Globalisation is the process of integration and interaction
among people , government and companies worldwide.
 It is important to expand their business by free
movement of goods , services , technology across the
world which helps to enhance company potential by
providing goods and services according to preference and
needs that leads to increase growth and maximise the
profitability.

Importance of globalisation
 Globalisation is essential for CAMECO company because they able to free trade
of goods and service across so company would easily provide goods and services
according to customers’ needs and preferences which improve living standard of
people.
 It encourages to foreign direct investment which boost advance technology
transfer and innovative idea can be exchange which is helpful for growth of the
world.
 It increases economic of scale because company easily provide quality goods and
services at the lower rate that support to business as well as economic growth.

2- Driven factor of globalisation
Technology / communication-
 CEMECO company adopt advance technology for enhancing market
share in the market.
 Company can easily identify and discuss about the trends of
particular area that effect on production activities.
 Effective technology has facilitated exchange of innovative idea
and strategies that helps in increase profitability.
 Company can enhance awareness by using technology like email,
mobile, television which overcome the challenges like delay in
information.

Contd..
Transportation –
 CAMECO Company can transfer its products and service all over the world. It
use to meet out customers’ needs by providing innovative product to customer.
 Company can transfer product at the lower cost which helps to increase
profitability and company can identify new market and expand existing market
so that helps to increase selling and increase market share.
 Company can take competitive advantage and opportunities by exchanging
goods and services across the border.

Contd..
Emigration –
 When own company settle into the other country because of lack of labour ,
facilities and growth of the company.
 It helps to increase market share by providing goods and facilities to needed
people which helps in effective utilisation of resources so production cost can
be reduce so they can provide goods at the reasonable price.
 It helps to maximise the profitability so company can compete with
competitors by adopting skills and innovative ideas.

Contd..
Government information –
 It is the important factor of globalisation. If company changes in tax policies,
foreign exchange policies that directly impact on business.
 If government reducing tax rate and changes any policies which is favour of
company that will encourage the foreign trade of goods and services.
Company can internationally exchange goods that helps to increase
profitability.
 Ultimately it increase market share and it helps to compete with competitors
and take future opportunities.

3- Significant impact of digital
technology on globalization
 Digital communication create growth for CAMECO Company because it is
customizable and cheaper form of enhance the scale of business through
globalization.
 Company able to measure conversion rate through real time and it is easier
way to connect with customer (Lasserre, 2017).
 It is essential that helps to redress problems of customer and solve as soon as
possible that build trust among the customer and also build reputation in the
market.

4- PESTEL ANALYSIS
P(Political )-
 CAMECO company performance can be impact by government policy ,
foreign trade policy , tax rate and political stability.
 This factor helps to assessing the potential of the market which helps to
reducing risk and improve performance so company can increase efficiency
and generate profit by international trade.
 Example- In US , trump government policies define minimum wages rate so
all company which establish in that country then have to pay wages as per
government policies.

Contd..
E (economic)-
 CAMECO company analysis economic factors like savings rate, exchange rate
, inflation rate , interest rate , economic cycle , employment rate that directly
impact on business.
 It effect on purchasing power of consumer and profitability of the company.
 Example- CAMECO company trade goods and services across the world and
exchange rate is higher than own country. On that situation they encourage
export rather than export it helps to generate huge profit and build image of
the company (Venkatachalam, 2018).

Contd..
S(social)-
 This factor includes demographics, cultural , education level , attitude
and belief and lifestyle. CAMECO Company understand this factors and
target to customer which leads to enhance selling and profit
maximization.
 Company must understand demographic factors like age, income and
lifestyle and also identify social and cultural factor. Company can
determine they doesn’t provide such product that impact on public
cultural and ethics.

Contd..
T(technology)-
 Company able to identify advance technology that impact on business
operation activities.
 Advance technology encourage awareness among the customers so that
company can compete with competitors and take future opportunities.
 It helps to utilize resources that leads to compete sales target and profitability
target.

Contd..
E(Environment)-
 CAMECO can critical evaluate this factor before introducing new product
and expand existing product that directly impact on business operation
which helps to reduce wastage of money and meet the customer demand
on the time.
 Company must identify climate, weather and environment offset. It also
leads to corporate social responsibility and conduct that work which is
benefited for public.

contd..
L (legal) –
 It is essential for those company who trade worldwide. CAMECO Company
can set strategies and policies by analyzing rules and regulation of the
government.
 Company can take future opportunities and reduce treats that helps to build
image and increase profitability.
 It includes law and legislature like welfare act, human right law, labor law etc.

5- Globalization challenges and
strategies challenges of
organizationGlobalization challenges
 Recently many countries are developing and poor country. They can’t afford
advance technology because of the higher price that is the cause of rising
equality. Companies don’t take advantages and expand their business in
competitive world.(Lasserre, 2017).
 It is the cause of trade imbalance because CAMECO company the part of
develop countries have surplus money and advance technology to expand their
business across the world so they are able to enhance export that creating
difficult situation of developing countries.

Contd..
Strategic challenges
 Multinational Company have to follow all legal compliances different country
taxation policies, government policies that become complex to follow.
 In global business environment Company must follow environment factor.
Corporate social responsibility in the global market because company conduct
such services which put positive impact on environment as well as community.
They have to conduct such business which are not polluted to countries.

6- Recommendations to overcome the challenges
 CAMECO Company have to prepare effective strategies which helps to
overcome the future critical situation so company can achieve the goals and
objectives.
 Manager should aware about the legal factors and political factors that helps to
identify future changes so they can easily take opportunities.
 Company must adopt advance technology because company able to provides
quality goods at the lower level which helps in customer retention.

CONCLUSION
 Global business environment presentation summarized that globalization is
essential for economic growth because it allow to exchange goods, services,
ideas and skills all over the world.
 Company can expand their business across the world which leads to improve
employment rate and standard of living.
 Further, change in technology, government policies some driven factors of
globalization that impact on performance of the business.
 This report also included that digital communication channel is important to
CEMECO which helps to increase market share by build image and also
increase selling across the worldwide.

REFERENCES
Books and journal
 Hamilton, L. and Webster, P., 2018. The international business environment. Oxford
University Press.
 Perry-Kessaris, A., 2016. Global Business, Local Law: the Indian legal system as a
communal resource in foreign investment relations. Routledge.
 Boshyk, Y. ed., 2016. Business driven action learning: Global best practices. Springer.
 Lasserre, P., 2017. Global strategic management. Macmillan International Higher
Education.
 Venkatachalam, A.M., 2018. Identifying dynamics of growth in a competitive and
transitioning lighting industry using PESTLE and SWOT analysis.