Global Business Environment Report: Analysis of Global Markets

This report provides a comprehensive analysis of the global business environment, focusing on key factors driving global commerce and trade, such as cost, market, environment, and competition. It examines the strategic challenges organizations face when operating internationally, including customer expectations and financial constraints. The report further explores the influences of globalization on organizational governance, leadership, structure, culture, and functions, as well as the impact of ethical and sustainable globalization. It also discusses effective decision-making processes in a global context and various routes to internationalization, including potential barriers. The Entertainer, a UK-based toy manufacturer, serves as a case study, with the report analyzing its potential expansion into the Indian market. The report highlights the importance of understanding market dynamics, adapting to cultural differences, and managing costs effectively to succeed in the global business environment.

Global Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key factors of cost, market, environment and competition that drive global commerce and
trade........................................................................................................................................1
TASK 2............................................................................................................................................3
P2 Complexity of strategic challenges faced by organisation while operating in global
environment............................................................................................................................3
TASK 3............................................................................................................................................5
P3 Influences of globalisation on organisational governance and leadership, structure, culture
and functions..........................................................................................................................5
P4 Influences of ethical and sustainable globalisation on organisational functions..............6
TASK 4............................................................................................................................................6
P5 Different ways decision making can work effectively in global context..........................6
P6 Various routes to internationalisation which can adopt by organisation, including key
barriers....................................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Global business environment is considered as a place where large number of firms
compete with each other. The range of competition at such location is more as compared to
domestic market which used to understand by managers of a company (Ferraro and Briody,
2017). Thus, many small firms lead to attract at global environment with a hope of more profit
and highest productivity. This project is based on The Entertainer whom are toy manufacturer in
UK. They want to expand their business operations at global level for which they required to
conclude and determine all major environment essentials. In this project, key essential factor
which drive global business environment lead to determine properly. Although, it will also
discuss about the strategic challenges which used to face by an organisation at global market
area. It will also describe about the various ways of appropriate decision making process at
globalised level of business.
TASK 1
P1 Some of the Key factors that includes cost, market, environment and competition for driving
global commerce and trade
Some elements will provide impact to company while maintaining business at global
level effectively or efficiently. It is required for manager to identify them; therefore, by
controlling them, they will operate business activities in an appropriate manner (Wild, Wild and
Han, 2014). In context with the company, employer is going to expand their business in India.
For this, it is required for them to formulate some strategies and policies so that they will
maintain do business properly. Henceforth, to conduct business at international level, there are
some requisite components which need to be examined by organisation and these are stated as
beneath:
Competition: As firm is going to enlarge their business at global level and that time they
will face many rivals who are operating their business in same sector. Thus, to maintain
competitiveness, it is fundamental for superior to manufacture new or latest kind of products and
services for consumers (Savrul, Incekara and Sener, 2014). As a result, this will enable them in
grabbing attention of maximum number of people towards their organisation. They will apply
unique or latest techniques into their items which assist to enhance market share. It has been
analysed that, economy, culture as well as society of other nation is entirely different which will
cater affect to affiliation. For this, it is needed for manager to frame appropriate strategies or
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policies. As The Entertainer is going to expand their business in India; therefore, they examined
their competitors properly so they will manage overall operational activities effectually. This
assists them to improve profits and in addition reputation at international marketplace.
Circumstances of trade barrier is much less because persons of that place are adopting new or
latest techniques easily which make them third largest nation who are using internet in high
range. This will help company to make their business more effective as well as efficient. Along
with this, it enables them to modify business timely which aid them to capture attention of
people towards their products and services. Furthermore, India is a emerging nation so that
regulatory body promote FDI which help MNC's to make their business more successful (Peng,
2016) (Kasemsap, 2015).
Cost: This is considered as another factor of globalisation that need to be evaluated by a
company in a better manner. This is fundamental responsibility of managers to prepare strategies
appropriately so that they will easily render qualitative items and services to individuals at
affordable prices. It will assist them to take benefits from contenders in market and they will
improve client base as well. Furthermore, other thing which is related to cost is known as
investment return rate which will render huge affect on value of goods and services either in a
direct or indirect manner. Company is looking for expanding their business across the globe;
therefore, it is required for them to examine overall contenders in a proper way as it helps them
to set price of items and services significantly. As a result, through obtaining competitive
benefits firm will easily maintain their position at international market. Value of merchandise
needs to be acceptable by consumers as they are considered as an end user of any products. Thus,
it is needed to satisfy their needs and wants in a proficient way.
Market: To make business globalise, it is required for superior to conduct business
activities in a wide level so that they will sell goods and services to individuals who are residing
different places (Cavusgil and Knight, 2015). As company is expanding their business; thus, risk
factor will high but with help of this, they will improve revenues and will be able to sustain at
market area for ample period of time. It is must for an employer to identify market nature in an
effective as well as efficient manner. It has been analysed that, each individual demand or
requirement is different as they all want to maintain their living standard significantly. Therefore,
it is requisite for an association to frame strategies accordingly so they will accomplish desires of
users within limited period of time. In context of The Entertainer, they are going to enlarge
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business in India so they have to prepare strategies accordingly. Persons who are living in India
having their distinctive kind of lifestyle which need to comprehend by affiliation properly. As
company is a toy retailer so that it is required for them to manufacture latest items and services
for clients. It has been examined that trade obstacles are much less in that nation because of an
open economy system.
Environment: Globalisation is considered as a procedure in which firm needs to operate
their business at huge level. This enables them in improvisation of client base and for this, it is
requisite for them to increase sales as well as production (Doh, McGuire and Ozaki, 2015). This
helps an affiliation to enhance market share so that they will maintain their business at
international market proficiently. In recent era, it is fundamental for each company to utilize
digital techniques; thus, they will produce items and services in a creative manner. It assists them
to gain competitive benefits from contenders at marketplace. It is must for an enterprise to
identify extrinsic surrounding of nation and for this, they will take support of some analysis, such
as PEST, Porter's five forces and so on. If political circumstances of country is appropriate and
stable in nature, then this will assist firm to enlarge business activities in an effective as well as
efficient way. Along with, they will run business operations proficiently and significantly.
Henceforth, it is required for superior of The Entertainer to considered each and every
component so they will be able to promote their business in an effective way. Circumstances of
market will vary as per tax system and this is termed as a major obstruction. It has been
evaluated that if rate of tax goes high then, value of products and services will also go high. This
will provide impact to the success and growth of an enterprise because they will be unable to
accomplish needs and wants of consumers effectually (Crane and Matten, 2016).
TASK 2
P2 Complexity of strategic challenges faced by organisation while operating in global
environment
In present time, each kind of affiliation needs to make their business internationalized.
They are implementing new and latest techniques as well as methods into products and services
and alter them, as per needs and desires of consumers. To improve business range, regulatory
body make their policies much flexible; therefore, they will promote exchange in a significant
way. Along side this, small enterprises are utilizing internet which aid them to gain attention of
numerous individuals towards them which help them to enhance market share. These all are
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considered as a major advantages for business when they are operating their business at
international market (Belás and et. al., 2014). Other than this, there are some challenges tat
company can face while operating its business if firm doesn't have ample amount of knowledge
of market area. As a result it can have positive as well as negative effect on enterprise while
executing their plans. Therefore, to overcome from this, they need to research market and will
formulate strategies accordingly.
This has been examined that India is considered as a mixed economy where trade
obstructions are much less and alterations in interest of clients are high. As from the above
information it can be analysed that investigator is going to expand their business activities in
other places. So, for this it is necessary company have adequate amount of information. As a
result it will assist firms in generating ample amount of money. It is a possibility that enterprise
faces different issues and problems while doing such activities so, it is crucial that organisation
make strategies for eliminating problems. Some of the issues are given below:
Customer expectations: It is required for manager of an organisation to consider this
element while conducting business at global level. Expectations of clients will be high when they
purchase items from other places (Belás and et. al., 2015). Thus, it is foremost challenge which
will be face by company at the time dealing at international level. It has been examined that, in
India each individuals requirement is entirely distinguish from others. This type of examination
will be much complicated in nature as while formulating strategies or policies, superior will face
numerous troubles. Therefore, it is requisite for administrative department of The Entertainer to
analyse entire market situation in a proper manner so that they will be able to expand business
operations in India effectually. It is needed for them to provide such kind of toy items which is
demanding such as soft toys.
Cost: This is fundamental issue which will be face by organisation at the time of
operating business at international marketplace. When, firm is doing business at global market,
value of products and services will rise automatically. It has been evaluated that, there are
numerous people who purchase items online because they think that it is much effective. It will
be much difficult for an enterprise to open their outlet in each state; therefore, they will sell
goods through website or some online stores. On which, they will also provide some discounts to
people as it assists to capture attention of numerous individuals towards them. The Entertainer is
going to expand business activities and at that time, major issues will be face by them, for
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instance finance (Apăvăloaie, 2014). They want to open store in India so that it is required for
them obtain sufficient fund so that they will recruit skilled people, conduct market research,
manage infrastructure and many others. Hence, it will create some major problems for them and
to overcome from this type of condition, superior will formulate strategies and choose some
effective option for business expansion, for example joint venture, merger, acquisition and so on.
TASK 3
P3 Influences of globalisation on organisational governance and leadership, structure, culture
and functions
Organisational governance is considered as a procedure that is, essential for management
in making an effective control as well as hole on entire business practice. When company is
going to expand their business at international level then at that time management governance
will get affected and this is not efficient for maximum period of time. When affiliation is doing
their business at international market then they will easily obtain many bondholders as if they are
linked with firm then, it aids to improve market share as well as goodwill of organisation
effectually. It assists to improve working of enterprise in an effective manner (Axelrod and
VanDeveer, 2014).
Company is operating their operational activities in a wide range which will easily
enhance their number of exercise; as a result, profits get maximized proficiently. It is required
for manager to give appropriate guidance to employees and workers as it will assist them in
easily accomplishing their work within limited period of time; otherwise, it will have an adverse
affect on organisation. From the above study it has been analysed that, with support of
globalisation an enterprise will easily improve their profits and market share in an effective
manner. Along with, to run or regulate business properly, it is essential for them to find out those
elements which can have an impact on business in a direct or indirect manner depends upon
situations.
Furthermore, it is must to alter working culture; thus, they will be able to fulfil
requirements of people timely. They have to modify items of firm which enables them to
accomplish desires of individual (Epifanova and et. al., 2015). Along with, there will be some
modifications in business structure due to enhancement in operational activities. It is required for
manager to provide training to workers so that they will manufacture qualitative items for users.
Therefore, employees will deal with adverse circumstances without any fear.
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With the help of report, it has been analysed that firm wants to expand its business and
for this it is necessary hat company makes appropriate strategies and plan of action which firm
can applied for their future proceedings. While making strategies it incorporates certain factors
like culture, structure, leadership etc., thus, all the above mentioned elements is crucial for
guiding employees so that they can perform the task in an effective manner. As a result it will
maintain a better environment at workplace.
It has been analysed that, globalisation will affect framework of business or their working
directly or indirectly. Along with this, it is crucial that superiors of company make modifications
in working strategies and pattern as well so that company can gain maximum benefits.
Globalisation is considered as a modification which will be accept by people or not. Henceforth,
it is prime duty of managers to identify things that can help an individual as well as companies in
taking appropriate decisions so that they can take their business in forward direction. Thus, it
will enable organisation in completing their task under speculated time frame. (Huhtala and et.
al., 2014).
P4 Influences of ethical and sustainable globalisation on organisational functions
Ethics are considered as a value or norms which are connected with firm and on this,
superior of affiliation need to acquire critical review. As company wants to operate their business
at international market; therefore, it is must for them to maintain an effective value or ethics at
that time. By completing work in an ethical way they will easily make their operational activities
more effective and appropriate. Along with, they will easily promote positive working in a
significant manner. While conducting business at global level, number of market will be
enhanced so that they will face many ethical trouble at that time.
It is fundamental for each and every kind of company to follow ethics in a proper way
otherwise, business practice will get affected either in a direct or indirect manner (Kolk, 2016).
Manager has to formulate some strategies or policies which need to be follow by staff members.
Therefore, they will be able to operate business in an ethical manner and in addition maintain
their brand image in front of consumers in a significant way. By acquiring maximum maximum
market share, organisation will easily make globalisation sustainable. In return it will assist
company in taking and analysing benefits from rival companies so that they can sustain in the
market for a longer period of time. For this it is essential that The Entertainer make and use
appropriate strategies that are according to the globalisation as a result it will enable them in
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providing better services to its customers. This will help firm in dealing with different kinds of
companies that are working globally. Therefore, it has been analysed that globalisation puts a
great impact on functioning of organisation. If these are accepted by enterprise in a positive
manner than it will provide maximum benefits but if it is not done than this can be vice-versa.
TASK 4
P5 Different ways decision making can work effectively in global context
It is not much easy for take an appropriate judgement for affiliation as this will provide
impact to entire working process either in a direct or indirect manner. There are numerous things
which are linked with each other which need to be taken into under consideration by superior at
the time of decision making process. This needs to be taken by higher authority and for this,
certain steps will be followed by them (Cohen and Kietzmann, 2014). Along with, it is must for
them to to consider stakeholder also because they are having interest in firm which will not be
affected through judgement of superiors. In relation to The Entertainer, They are going to enlarge
their business operations in India; therefore, it is necessary for them to concentrate on judgement
making procedure. If it is taken in an effective manner then, staff members will get motivated
towards work. If it is much efficient then, firm will be able to complete coveted targets and goals
within limited period of time. As a result, sales as well as profits of an enterprise will get
improved. Henceforth, there are basically two kinds of decision making which are connected
with organisation and these are stated as beneath:
Programmed decision making: In an enterprise, employer needs to take judgement on
regular basis so that it can be taken into consideration because this will cater impact to overall
operation activities. It has been evaluated that nature of these concern is planned, for example:
concentrate on issues which are facing by clients, modify business by implementing innovative
thoughts, numerous activities and so forth. Henceforth, these judgements are much useful in
nature because through this managers will easily maintain their brand image in front of
customers or the country where company wants to establish their business. (Carneiro and Brenes,
2014).
Unprogrammed decision making: Whenever, circumstances of risk is much high and
along with numerous uncertainties will be face by affiliation then, this is termed as
unprogrammed decision making. This kinds of decisions are highly based on logic; therefore, it
contains maximum risk.
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Globalisation is regarded as more effective procedure and under this there is a need to
management to take some of the effective unprogrammed judgement that depends on facts and
figures and also promote the effective working. This will assist company to improve number of
activities in an effective as well as efficient manner. This will aid affiliation in order to
maintainto maintain position in competitive market for maximum time period. (Ferraro and
Briody, 2017).
P6 Various routes to internationalisation which can adopt by organisation, including key barriers
Globalisation is considered as a procedure which help to make operational activities
broad. With assistance of this, they will be able to enhance profits as well as market share; as a
result, they will easily take benefits from rivals at competitive world. Risk will be connected
with this, which need to be considered by superior. It is required for an enterprise to produce
latest kind of items and services for consumers as this will help them to gain attention of
maximum individuals towards them.
The Entertainer is going to enlarge their operational activities in India and for this
purpose, they will opt merger because it is an effective option for them (Wild, Wild and Han,
2014). This will help them to gain maximum revenues as well as return; as a result, they will
maintain their position at marketplace. In addition to this, under this, there are various
obstructions face through company at the time of globalisation and these are given below as
above:
 It is required for an enterprise to arrange proper finance for them; therefore, they will
easily accomplish their work in an effective manner. As Entertainer works expand
business activities, so this is fundamental for them to utilize some promotional activities
as it assists them to capture attention of numerous people towards them. Through invest
an adequate amount of money, firm can get the better results. Entertainer business firm
works on enlarging its business in India, where interest rate of FDI is minimum. In
context to this, funds are regarded as a main barrier for this organisations and there is a
requirement to company to work on over come from them by using methods of
globalisation like merger and acquisition. They will use some methods for globalisation,
such as merger and acquisition (Savrul, Incekara and Sener, 2014).
 The Culture of each nation is varied from the each other and it is require for every person
or company to follow it in proper manner. It will be helpful in enhance sales, generate
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more revenue and also attain the large market share. This will help organisation to
improve their revenues and obtain growth. Along with this, there is a requirement to
manager to take some appropriate judgement for company because it enable them to be
retain at competitive market for long time period.
 Each country is using distinctive kind of technologies which will be used by companies
who are operating their business over there. Therefore, superior needs to utilize those
methodologies which help them to motivate effective working at workplace. In context of
The Entertainer, they have to use innovative tools while producing goods and services for
people because this enables them to attain coveted targets within limited period of time.
 Instability in politics will be considered as an obstacle for affiliation as continuous
alteration in it will create troubles for firm to conduct business operations. Therefore, The
Entertainer needs to find out and examine India that political party of company is much
stable in nature. Hence, they will begin their operations over there because it is much
easy for them to manage it effectively (Peng, 2016).
CONCLUSION
It has been concluded from the above given report that global business environment is
defined as component which influence firm and its operations in diverse ways. It is essential that
management that system function appropriately, so that adequate amount of revenue is
generated. For this, efficient strategies and decisions are to be taken by administration which are
beneficial for business. In organisation, there are different barriers which influence entry of firm
into new market; as superior require to make various changes in system in according to execute
business in stable way. This assignment consists decision making process and various methods
that are used for ascertainment of appropriate solution and making system function effectively.
There are various key factors which support management in driving of trade and commerce of
firm. Thus, appropriate strategies and solution made for making company function globally.
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