Assessing the Global Business Environment for Eggfree Cake Box Limited

This report provides a comprehensive analysis of the global business environment, focusing on factors impacting businesses like Eggfree Cake Box Limited. It examines key aspects driving global trade, such as cost, competition, market dynamics, and environmental considerations. The report delves into challenges faced by organizations operating internationally, including regulatory hurdles, political risks, and social factors. Furthermore, it evaluates the impact of globalization on organizational structure, culture, leadership, and governance. The report also assesses ethical and sustainable globalization's influence on organizational functions, explores effective decision-making methods, and outlines routes to internationalization while highlighting key barriers. The report uses Eggfree Cake Box Limited as a case study to illustrate these concepts, providing valuable insights into navigating the complexities of the global marketplace.

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Key aspects that drives on global trade activities.............................................................3
TASK 2............................................................................................................................................5
P2 Challenges faced by organisation at time of operating their business in global business
environment............................................................................................................................5
TASK 3............................................................................................................................................6
P3 Evaluation of globalisation on organisation structure, culture, leadership and governance
................................................................................................................................................6
P4 Evaluation the influence of ethical and sustainable globalisation on organisational
function...................................................................................................................................8
TASK 4..........................................................................................................................................10
P5 Methods of decision-making that work effectively for company at global level............10
P6 Routes to internationalisation the business including key barrier...................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Global business environment is categorised as sum of those factors which are having
direct impact over the business. This is associated with various factors in which external forces
are putting high end influence on decision making of business. The main motive of this concept
is to recognise global factors such as social, political, economic and other external factors
which cannot be manageable by business. This report is prepared so as to understand global
business environment in the context of Eggfree Cake Box Limited which is a manufacturer and
supplier of dairy and bakery products. In this report numerous factors are taken which are
having high implications on global trade process. Furthermore some challenges which are faced
by business within their survival of global market are involved in this report (Hamilton and
Webster, 2018). On the other side impact of globalisation on organisational governance and its
structure are also associated in this report.
TASK 1
P1 Key aspects that drives on global trade activities
Globalisation is defined as the factor in which organisation is performing their functions
within global periphery. This concept is assisting in recognising laws of the nation in which
business operations are to be carried out. Cost, competition, market and environment of
business are the concepts by which high impacts are drawn out in globalisation. So within this
context management of Eggfree Cake Box Limited is requisite to put their focus on these
aspects if they are willing for long term survival within marketplace.
Cost: Cost is defined as the total amount of money by which overall value of product or
service manufactured has been calculated. This is one of the most essential aspects of the
business as this is only the deciding factor of overall profitability. Every country is having
varied cost and cost structure for their manufactured services and products so this concept is
having huge implications on the business. In the context of Eggfree Cake Box Limited their
management is highly emphasised on lowering their applicable cost in order to earn more
profits thereon. So this is necessary for the company to manage their cost structure in such a
way that it remains transparent and no complexity has been faced within business operations.

Eggfree Cake Box Limited is managing their variable and fixed cost in most manageable way
so as to get high business efficacy (Mangan and Lalwani, 2016).
Environmental: Environment is known as accumulation of all the factors and
surroundings which exists in and outside the business. Globalisation is the aspect which creates
high complications in the business as a brand new environment is faced for which may be the
business is not prepared. This is the essential factor in which assistance is received by the
business in order to run their business at global periphery. Eggfree Cake Box Limited is
operating their business within legal laws of the pertaining country so this is making them
highly efficient is getting prominent market share and goodwill as well. Along with this they
are managing their business in ethical manner so as to obtain distinct competitive edge within
marketplace. In the context of Eggfree Cake Box Limited the company is effectively managing
their environmental conditions by which they are able to capture market share in a very
effective manner. As the company is engaged in providing vegetarian cakes to their customer
which is not harming environment and making eco-friendly diet as well.
Market: Market is defined as the place in which buying and selling activities are taking
place by taking money as mediator. Within existing market Eggfree Cake Box Limited is
having their operation at global level and for this they are required to introduce various
marketing strategies in which they are operating their business at different levels. These
strategies are assisting them in achieving distinct competitive edge in the marketplace. This is
providing them immense opportunities to deal with market rivals in significant manner. Eggfree
Cake Box is following a vegan vegetarian diet so they are having distinct market identity.
Competition: This aspect is known to be the most crucial factor for the business as this
entails the pertaining market situation which is linked with selling and purchase of goods and
services. In this time Eggfree Cake Box Limited is involved in trading at global level in order to
carry out their logistic operation at global level. These aspects are defined as in form of in
marketplace there are various companies and firm which are indulged in producing and
rendering similar services and product these are called competitor. Similarly products are
distinguishable within marketplace as per the characteristics and quality possessed by them. In
the context of Eggfree Cake Box Limited the company is facing high competition with various
companies in the marketplace and their quality is providing them distinct competitive edge

(Knight and Liesch, 2016). Eggfree Cake Box is making highly identifiable cakes which are
egg less due to which any egg allergies can be prevented and this is giving them additional edge
within marketplace.
TASK 2
P2 Challenges faced by organisation at time of operating their business in global business
environment
Global business is the aspect in which all the laws are enforced in order to increase
customer base and their reliability. In approach of globalisation product and services are offered
at global level by the business. In order to get entered into some new market customer base is
required to be increased and for these efforts in various directions is to be made. In the context
of Eggfree Cake Box Limited, their skilled employees are helping them to attain their business
objectives in prominent manner. Some of the disadvantages related to the company are
elucidated as under:
Rules and regulations: Every country is having their rules and regulations which are
required to be followed by every company operating in that country. Eggfree Cake Box Limited
is providing their business operation inside UK and these are having positive impact on their
functions as government is providing high support to them. Similarly they are planning to enter
into new market place in which all the laws and regulation will have to be enforced by them in
order to avoid any law suit and legal framework. For example they are executing their business
operation within rules and framed regulation in order to attain high market sustainability
(Wright and Nyberg, 2017). The European community is highly organised and are making
highly efficient parliament and commission in a very optimal manner. Businesses in UK are
well protected with national court and this is protecting rights of the businesses.
Example one: The general agreement on tariffs and trade popularly abbreviated as GATT
which is making fair trade policies and reduces trade barriers. This is helpful for Eggfree Cake
Box as this law is allowing them to form relationship with various countries.
Example two: Tariff duty which is known as prominent income of the country and UK is
very rigid over these laws. As government has imposed various restriction due to which

domestic markets are having positive implications and Eggfree Cake Box is facing negative
implications as well.
Political risk: Every business is having distinct political conditions and environment in
which various rules and regulations are framed by which government is providing support to
the operating companies. By these rules flexibility are drawn by the business. In the background
of Eggfree Cake Box Limited they are having they are formulating policies in a manner that
they can establish interrelation with governmental laws so as to get support of government
while tapping into new market. For example due to Brexit implication of political power is
more within UK and EU which is creating high level of business uncertainty.
Social factor: In the business people are linked with different background and beliefs in
which they are planning to achieve sole aim of attaining long term sustainability and
profitability as well. Varied cultures are adopted by people of various cultures and this becomes
a barrier of communicating with them in effective manner. In order to design operational
activities these factors are having high implications and by these objectives of society are being
fulfilled which are pertained to various stakeholders. For example Eggfree Cake Box Limited is
rendering employment to local people and by this high career opportunities are being seen by
them which are resultantly enhancing overall goodwill.
Monopoly market: This market condition is the situation in which a business is having their
sole operation within that industry market and they operate as price maker. In the context of
Eggfree Cake Box Limited the company has many commitments form their customers and they
are planning for various programs within marketplace so as to tackle their customer and market
situation in prominent manner. Eggfree Cake Box Limited is taking numerous decisions which
are taken in the favour of their customer and other stakeholders. Within this aspect Eggfree
Cake Box Limited is framing flexible rules and policies which can be modified in order to take
out positive impact over the business (Tidd and Bessant, 2018).

TASK 3
P3 Evaluation of globalisation on organisation structure, culture, leadership and governance
Globalisation and corporate administration are differentiated by rules and policies within
numerous aspects. Routine activities can be carried out in effective way with the help of these
principles in order to attain overall business objectives in prominent manner.
Leadership: Globalisation provides high implications on leadership because with the
help of leadership business is managed by higher level authorities in effective way. In the
context of Eggfree Cake Box Limited their leadership approach is apt for understanding needs
and requirements of customer in specific manner in order to position their product at world-
wide level. In every country market trend is different so according to that manner leadership
style are to be selected by Eggfree Cake Box Limited so as to get effective business operation
in every country. Leadership style is known as the manner in which control is to be enumerated
over the business and by which policies can be implemented over there (Masciulli, Molchanov
and Knight, 2016). It can be said that every country is having their own utilised style of
leadership which is impacting global business positively and negatively. In term of negative
implications it is seen that controlling measures are hard to establish and in terms of positive
impact high expertise are introduced due to global operations.
Culture: In business culture is said to be a significant factor in which functions can be
managed as per the pertained culture so as to establish collaborative working and create positive
environment. In the context of Eggfree Cake Box Limited they are working by keeping their
culture open to adapt new things and new ideas by which high productivity and efficacy can be
drawn out. The company is having main focus on serving customer from various geographical
backgrounds and for this they are performing their business operations according to the needs
of society and its culture. For example UK and India are having varied culture and this is
creating cultural diversity in organisation due to which large conflicts can be created in
business.
Governance: With the help of governance steadiness can be created within business
objectives and long term business benefits can be enumerated. Governance is the rules within
organisation which are helpful in managing people and business objectives in prominent
manner. In the background of Eggfree Cake Box Limited the company is having various
governance rules within their organisation by which they are effectively able to recognise needs
of customer and satisfying them by their offerings. As Eggfree Cake Box Limited is having
sufficient governance in their business due to this they are able to control their business in
prominent manner and immense positive impacts are drawn on the business as well.

Functions: The major need of the business is to meet up their objectives and executing
business activities in prominent manner. In the context of Eggfree Cake Box Limited the
company is highly efficient in performing their operation at global level without facing any
major complexities. By this they are ensuring that all the operations are performed by taking
care of laws and legal obligations in order to achieve their foremost aim. This has been
observed that the company is completing their assignment by enforcing all the applicable laws.
Hofstede’s culture model
Eggfree Cake Box Limited is focused on their business expansion within different areas
in order to position their brand at a prominent place within marketplace. For the major purpose
to understand macro environment factors which are shown as under:
Power distance index: This is known as the degree of acceptance in which without any
prominent power commands are exhibited by the business. In the context of Eggfree Cake Box
Limited PDI index is used by them in which country in which planning is executed in order to
enhance working in centralised manner.
Individualism versus collectivism: This is defined as the power in which community
are connected. In the context of Eggfree Cake Box Limited they are willing to expand their
business across various countries and for this the country which is high on IDV is the best
suitable for them.
Masculinity versus femininity: Within this aspect roles are performed by men and
women are included. In the context of Eggfree Cake Box Limited they are involved in
managing business within these roles in order to achieve their objectives by the help of their
employees.
Uncertainty avoidance index: This aspect is linked with operational management
within time frame and anxiety. In the context of Eggfree Cake Box Limited they are focused on
increasing creativity of their employees and render them concise path of growth.
Long versus short term orientation: This is defined as time horizon within individual
and society as togetherness so as to achieve high end success. In the context of Eggfree Cake

Box Limited the company is focused on achieving short term objectives and this is adding more
value to their business as well.
Indulgence versus restraint: This concept is associated with the aspect that high scoring IVR
country is consisting of high power of understanding emotions of their employees (Pieterse,
2019).
P4 Evaluation the influence of ethical and sustainable globalisation on organisational function
Ethical globalisation is involved to provide integration of economy and culture within
society. These aspects are having positive impact over the business as they are associated with
value and ethics. Besides this high brand image is inculcated within global level when ethical
and sustainable practices are followed by the business.
Systematic processes are included with sustainable business organisation as within these
concepts success in linked in direct manner. In the context of Eggfree Cake Box Limited they
are focused on expansion of their business within worldwide level. So for this a stable position
is required to be attained by them which could be possible if company adopts global standards
in their business. Some of the major aspects are elucidated as under which are having high
impact over global business:
Human resources: Employees and other persons who are directly linked with the business are
known to be assets and major resource of the company. These are helpful in providing top
position to the business within marketplace by giving their overall efficacy to the business and
taking out high productivity. This is a method by which most suitable candidate can be selected
by whom high degree of productivity can be taken out due to which prominent market position
can be received by the business. In the context of Eggfree Cake Box Limited they are providing
high degree of training to their employees by which they are rendering guidance to their
employee so as to achieve business objectives (Crane and et. al., 2019).
Finance: This is known to be the most prominent aspect of business as whole the money
measures are associated with this. Within this factor budget is prepared and all the funds which
are needed for market expansion are released from here only. This is the function by which all
other functions which are associated with money are controlled and monitored. Form the point
of view within Eggfree Cake Box Limited the company is using various accounting and

financial software so as to maintain their financial records. This is helping them to save
additional cost which was earlier used in providing training to individual for making them learn
about accounting techniques.
Marketing: This aspect is a broad aspect under which numerous concepts are associated
such as promotion, examination of needs and demands, advertising, product and brand
promotion, satisfying customer need and many more. In the context of Eggfree Cake Box
Limited marketing concepts are efficiently followed by them as they are appropriately
recognising market demand and trying to satisfying the same with their product offerings. This
is known to be the most effectual concept in which long term sustainability can be achieved by
them.
With the help of executing business operation in ethical manner international identity
can be received by them due to which market share can be enhanced. There are numerous
challenges which are faced by the business such as adherence of rules and regulations. Every
country has formed their rules and in order to survive within global level businesses are
required to follow these rules without any ifs and buts. By executing business operation in
ethical manner brand value of the business can be enhanced (Chams and García-Blandón,
2019).
TASK 4
P5 Methods of decision-making that work effectively for company at global level
Decision making is stated as the process in which power is ascertained by the business of
taking right plan of action by following various steps and processes in order to take out
effective decision as well. In the context of Eggfree Cake Box Limited they are focused on
completing their assigned task within rendered time limit. Within the current market situation
Eggfree Cake Box Limited is planning to tap within new international markets and trying to
enhance their global presence. This is easy for the company to attain high sustainability as they
are completing their tasks within given time frame in effectual manner. Some of the methods
which are used by Eggfree Cake Box Limited within decision making process are elucidated as
under:

Command: Eggfree Cake Box Limited is performing their task within different nations
and they are handling very huge team in order to achieve their organisational task and
objectives. For the management this is essential that they obtain feedbacks are collected by
them so as to recognise customer perception about their product and services. This is resulting
in taking some decisions which are highly effective in nature regarding earning high
profitability. These decisions are helpful in getting high end sustainability and expanding
business within global level. The major purpose of command is to decrease their risk of
uncertainty occurring in the business (Jarrahi, 2018).
Collaborative: In business manager is performing crucial role of managing stakeholder
and employee in such a way that right decisions are taken out by them. Within right decision
high profits can be earned by business and sustainability can also be achieved. In order to frame
accurate decision employee must be included in taking out valuable results thereon. By
including employees in opinion setting high end positive results can be drawn out. In the
context of Eggfree Cake Box Limited they involve their employees in decision making so as to
positions their brand at prominent level.
Convenience: This is the responsibility of holding overall authority in order to take out
effective position within marketplace. This aspect is essential in delegating proper
responsibility to personnel by which overall productivity can be improvised. In the context of
Eggfree Cake Box Limited as they are willing to tap within new international market and this
factor is putting positive impact on them in order to enhance efficacy and cohesiveness. This
factor is helpful in motivating employees so as to complete their task within given time frame
along with high critical approach (Lu and et. al., 2016).
P6 Routes to internationalisation the business including key barrier
Globalization and Internationalization are the two important terms denoting extension of
business operations beyond national boundary of the enterprise. It shows that business is
growing its business and getting in the league of multi-national companies. As the company
globalizes its profitability performance and revenue are improved and along with that, it plays
an important part and role in a countries GDP performance since they are bringing the revenue
for a nation from other countries. (Yuen and Lim, 2016)

Globalization also ensures that local and international companies are connected with each
other and can share their resources and ideas. This inter-connection may help business to
manage the whole organization effectively and efficiently both from administration as well as
performance point of view and this will ultimately result in improved performance and
increased customer base. Some of the basic practices followed by organizations are as follows:-
Joint Venture: - Joint Venture is a legal contractual agreement or partnership between two
different organizations agreeing to share each other’s resources. In this type of Globalization
practices organizations do not have to start from scratch instead, what they do is they collide
with any established organization and both of them share their raw materials, finance, resources
etc. for the period defined in the contract. Example for this kind of practice is that Eggfree Cake
Box Limited as it is a bakery organization it can enter into a joint venture with any organization
manufacturing bakery related raw materials and they both can combine and manufacture their
final product. This way it would lead to lower cost of raw material to Eggfree Cake Box
Limited and supply source to other party.
Franchising - Franchising is a concept in which an organization can use brand name and
image of some other organization or chain to sale its products. This concept is somewhere
relates to advertising where two parties enter into a contract where one gets the right to use
name of the brand of the other to sale its products whereas the brand owner gets some amount
of return or royalty against that grant. Eggfree Cake Box Limited can research and evaluate a
famous supply chain in the foreign market and purchase its franchisee to sale its products in the
local market smoothly and increase their customer base.
Challenges to manage business at global level
Financial challenges: In order to perform functional activities in prominent manner so
many financial challenges were faced by Eggfree Cake Box Limited such as fluctuations in
exchange rate, export taxes and many more. The major challenge in global business was of
gathering of funds which were prominently faced by Eggfree Cake Box Limited.
Culture difference: As the company is operating their business at global level and
every nation is having own set of ethics, rules and regulations. So this was the major barrier for