The Entertainer: Global Business Environment and Challenges Report

This report provides a comprehensive analysis of The Entertainer's potential expansion into the South African market, focusing on the global business environment. It examines key elements driving global commerce, including cost, market dynamics, competition, and environmental factors. Th...Read More

Global Business Environment

Contents
INTRODUCTION.................................................................................................................................3
TASK 1.................................................................................................................................................3
P1: Key elements of cost, market, environment and competition that drive global commerce and
trade...................................................................................................................................................3
TASK 2.................................................................................................................................................5
P2: Complexness of strategic challenges faced by organisation while operating in global
environment.......................................................................................................................................5
TASK 3.................................................................................................................................................6
P3: Cause of globalisation on organisational governance and leadership, structure, culture and
functions............................................................................................................................................6
P4: Effects of ethical and sustainable globalisation on organisational functions...............................7
TASK 4.................................................................................................................................................8
P5: Various ways through which decision making can work effectively in global context................8
P6: Assorted routes to internationalisation which can adopt by organisation, including key barriers
.........................................................................................................................................................10
CONCLUSION...................................................................................................................................11
REFERENCES....................................................................................................................................13

INTRODUCTION
Global business environment refers to such environment which in which multinational
companies gives tough competition to each other through providing better product and
services in market. Therefore an organisation can able to survive in competitive market
environment only when they provide differentiated quality products and services as compared
to their rivals. This will help in generating huge profit as well as build brand image in
international market. Globalising a company means expanding business to different countries
where the demand of their products and services are more. The Entertainer, a UK company
which deals in manufacturing toys for small kids is taken for the purpose of preparing this
report. The company has looking to expand its business in South Africa. The project covers
the some key factors which may be affected the decision of expanding business at
international level. Along with this, complexness of strategic challenges is also covered under
this report. At last, project also included the effects of globalisation on a decision making
process and some barriers which may affect the profitability of an organisation (Banerjee,
2010).
TASK 1
P1: Key elements of cost, market, environment and competition that drive global
commerce and trade
Every business organisation who wants to expand its business at international level
should require to carefully analysing the global environment. It includes various factors
which may affect company’s goodwill and revenue of an organisation. The management are
held responsible to make an effective decision and plans regarding handling complex
situation that may arise between the processes of expansion of business at international level.
There are various problems arises due to competitor’s legislation, taxes, various barriers etc.
thus management need to consider all such elements and accordingly make effective
strategies in order to deal with such complex elements (Wheelen and Hunger, 2011). There
are other elements as well such as cost, market, competition etc. which may affect the
decisions of expanding business to other countries thus need to be consider such element if
they want to exist in New market environment for longer period of time. Therefore, it is
important for management of “The Entertainer” to first carefully analyse market environment
exist in Africa and on the basis of which management took decision regarding expansion of

business. Different elements which should require to consider by management of “The
Entertainer” are as follows:
Competition: It refers to such factors whose existence in market largely affects the
decision of expansion. As entering into African market, “The Entertainer” may face large
number of competitors who already attained strong position in market. Thus, it becomes more
difficult for “The Entertainer” to enter into new market. Here management play an important
role in making an effective plans and strategies after identifying the rival’s strategies, quality
of products and services, working style, technology etc. which drives them to move ahead
from their competitors through taking one-step actions ahead than their rivals. “The
Entertainer” which deals in manufacturing toys for children should focus on improving their
products with the help of using new and innovative ideas. Through this, the company can
able to achieve competitive advantage and sustain in new market for longer period of time.
As Africa is a developed country thus expanding business to such country will brings
profitable result to company (Belás and et. al., 2015).
Cost: It is an important factor which should required to be consider by the
management of “The Entertainer” before deciding of expansion of business. The management
need to focus on identifying elements through which they can reduce cost of products and
services with a motive of providing them to children at affordable prices. Through this, the
company can able to grab attention of customers in ample number. In addition with this, the
company need to focus on improving quality of products as well which every customer looks
for. As it has been forecasted by management that entering into African market will increases
the cost of products and services thus it is important for management of “The Entertainer” to
find out all such aspects through which they can reduce cost which increases the chances of
their sustainability in African market.
Market: Every company have different culture and environment due to which
management of “The Entertainer” may faces more difficulties in adjusting into new
environment. Therefore, it is essentially required to make proper evaluation of market and
accordingly make an effective plans and strategies in order to exist in market for longer
period of time. There are various risk also arises which make impact on productivity and
profitability as well. For this, the management need to hire researcher who conduct research
for them regarding the new market environment and the changes they demanded from the
companies. With help of using information collected through research, the company need to

enhance their product through implementing value added features in their existing products.
This will help them in achieving competitive advantage (Budhwar and Debrah, 2013).
Environment: It refers to the surroundings in which the company operated their
business operations. As environment is complex in nature which changes frequently thus
brings lots of problems and challenges towards new company to survive. Therefore, “The
Entertainer” need to identify the needs of environment and accordingly implement preferred
changes in existing products in order to attract large number of customers. For this, the
management of “The Entertainer” need to conduct PESTLE analyse through which they can
able to identify the external factors which affects their business operations after which they
are able to make corrective plans and measures in order to protect business operations from
various factors. Such factors includes political, economical, social, technological,
environmental, legal etc. which may affect business operations either in negative or positive
manner.
Therefore, to expand business at international level, “The Entertainer” need to
consider all above mentioned elements in order to ensure in achieving growth and success in
new market.
TASK 2
P2: Complexness of strategic challenges faced by organisation while operating in global
environment
In today’s world, every organisation wants to expand its business operation at
international level with an objective of generating huge revenues and profits. Therefore to
achieve all these, the management of “The Entertainer” need to make changes in their
existing products, identifying foreign cultures and taxation policies which help them in
achieving desired goals an objectives in an effective and efficient manner. Some other
strategies also required to be followed by management in relation with delivering products
and services and use of internet. Company need to focus on adopting online platform for
selling products and services which facilitate customer to get products at their doorstep.
Strategies may also be related with home delivery, money exchange, attractive discounts and
some other offers which attracts and influences the interest and buying behaviour of
customers towards purchasing their products and services.

South African has different cultures which are followed by every citizen through
which management of “The Entertainer” may face various difficulties and challenges which
are briefly explained as below:
Customer expectations: The expectations of customers from the company changes
frequently due to which the company need to make improvement in their products on regular
basis. The company need to find such areas where the demand of toys are more and
accordingly open their stores in order to increase sales figure (Carneiro and Brenes, 2014). As
“The Entertainer” is manufacturing toys for children thus their main targeted customers with
the age are in between 1 to 10.Therefore the management need to identify needs and
requirements of children and accordingly develop their product in order to maximise their
satisfaction level.
Cost: While expanding business at international level, it may difficult for new
entrances to control the cost of products and services as different excise duties, taxes etc. are
imposed on price of product due to which the company unwillingly charge high prices from
the customers. This will reduce the interest and buying behaviour of customers. Thus, the
management of “The Entertainer” need to consider all such elements through which they can
able to minimise cost of production and able to provide goods at an affordable prices. For
example, hiring labour at cheaper cost will help company in reducing cost of products
(Savrul, Incekara and Sener, 2014).
TASK 3
P3: Cause of globalisation on organisational governance and leadership, structure,
culture and functions
Corporate governance directed an organisation to operate business functions in more
disciplined manner so as to run business more smoothly. It consists of different principles,
rights and laws which need to follow by the management of The Entertainer. Globalisation
makes impact on this in different ways. While expanding business at international level, the
management need to consider the opinion of their shareholders which need to be used in
decision making process as they are the one who provided financial help to company in
expansion. Apart from this, there are some other aspects which may affects globalisation.
Such aspects are briefly explained as below:

Leadership: A leader is one who has an effective skills and capabilities of taking
major initiatives and motivates employees to perform well in order to achieve desired goals
and objectives within limited period of time. Impact of globalisation may affect plans,
strategies, vision and mission which need to be considered and analyse by the leaders in order
to handle risk and problems in an effective and efficient manner. “The Entertainer” introduces
wide range of toys products in South Africa thus the leader need to identify the taste and preference
of customers and accordingly motivate employees to make required changes (Doh, McGuire and
Ozaki, 2015).
Structure: Globalisation can affect the structure of an organisation in various ways.
For example, of an organisation enters into international market and open stores at new
locations. Then it must require for company to hire new candidates of same country in order
to deals with customers having different culture and backgrounds. Through this, the manager
of may take new ideas and suggestions from the employees as they are having enough
knowledge of customer’s taste and preferences.
Culture: It is also one of the major element which affects and influences
globalisation. The administration of “The Entertainer” should required to direct production
department to produce quality products according to the taste and preferences and as per the
culture which are bring followed by them. Such should be considered by “The Entertainer” at
the time of formulation of plans and policies regarding expansion of business at international
level. Recruiting people of South Africa fro new office will help company in dealing with
people having different culture thus able to communicate information about the products they
offered to the customers. It improves the sales figure and generate huge revenues.
Functions: As “The Entertainer” expand its business from UK to South Africa due to
which they need to make an alteration in their functions which may related wit profits, risk
involvement, investments etc. They need to expand their business functions as well in order
to produce products and services for large number of customers (Dos Santos, 2011).
P4: Effects of ethical and sustainable globalisation on organisational functions
In today’s world, changes are happened frequently due to which an organisation
should focus on implementing such change in their business structure in order to survive in
competitive market environment for longer period of time. It is important for every
organisation to operate business operations according to the rules and regulation formulated
by government. Ethics includes moral behaviour of company which influences the behaviour

of employees in positive manner. As “The Entertainer” decide to expand its business in South
Africa thus it is important for management to understand all legal laws, standards, guidelines
which were made by parliament of South Africa. Performing all business activities in ethical
ways will help company in building good image and reputation in front of the customers due
to which the company successfully able to retain their loyal customers. Ina addition wit this,
there are number of issues and challenges which ay faced by the management of “The
Entertainer” at the time of expansion of business. Thus, it is essentially required to manage
and examine all influencing issues which can be resolves as quickly as possible (Kasemsap,
2014).
It is the responsibility of management to ensure that an organisation has followed all
rules and regulation made by African government during implementation of an effective
strategies. Through this, the company can successfully establish its business at global level.
However if an organisation failed to consider ethics then it may damage their existing image
and goodwill. Apart from this, the management also required to make suitable strategies in
order to enhance performance of employee which directly impact on the performance of
company in positive manner (Ferraro and Briody, 2017). It will help organisation to capture
large market share than their competitor and attained strong position in competitive market.
Therefore, “The Entertainer” need to implement advanced technology in production and
marketing process through which they can easily produce quality products and advertise them
in market so as to influence buying behaviour of customers. Therefore it mist required for
“The Entertainer” to perform all business function in more ethical and disciplined way after
following all rules and regulation implemented by government if they want to sustain in new
market for longer period of time.
TASK 4
P5: Various ways through which decision making can work effectively in global context
Leaders and managers both perform different roles and responsibilities in order to
achieve common goals of an organisation. They both focuses on finding new and innovative
ways or performing several business activities at global level in order to increase productivity
and profitability. Therefore, it is also required for leaders and managers of “The Entertainer”
to focus on making alteration in working structure as per the needs and requirements of
employees. “The Entertainer” decide to enter into market of South Africa with their goods

and services thus it important for the management of an organisation to first identify the
techniques and tools used by their competitors and accordingly make an effective decision
which brings them ahead of their rivals and achieve desired goals and objectives. Managers
generally formulate plans and policies and performs different responsibilities such as
allocation of task to employees on the basis of their skills and knowledge. After which
leaders are liable to motivate workers through providing them suitable training in order to
bring self confidence among them which help them in performing in right direction. Decision
regarding competing with rivals in terms of providing quality products should be made in
order to achieve competitive advantage. Through this, the management of “The Entertainer”
is successfully established products and services in South Africa. There are mainly two types
of decision which can help an organisation to sustain in new market (Gecevska and et. al.,
2010).
Programmed decision making: Such type of decision has been formulated by both
managers and leaders after analysing the previous outcomes. It is pre-planned decision which
is taken after considering all aspects and factors which affects business to expand at global
level. With the help of past experiences, the management are able to make an effective
decision and suitable plans regarding achieving desired goals and objectives in an effective
and efficient manner. For example, “The Entertainer” previously follows traditional strategies
which gives them profitable outcomes thus the management need to adopt same strategies in
future as well in order to maintain performance level.
Therefore, it must required for management of “The Entertainer” to make all decision
which has been made previously and use them in future as well as per the circumstances.
Unprogrammed decision making: As business environment is complex and
contingent in nature which changes frequently thus brings lots of risk and challenges in front
of business organisation through which they find difficulties in operating their business
operations. Therefore, an organisation can compete under such complex environment only
when they have an effective management who has sufficient skills and capabilities to make
decision in a quick moment. For example, the cost of products increases due to which the
demand of products falls therefore the management should take quick decision regarding
implementation of advanced technology in production process so as to reduce cost of
production through minimising wastage (Griseri and Seppala, 2010).

Therefore, at the time of expansion of business at international level “The
Entertainer” should be ready with unprogrammed and programmed decision in order to face
various issues and challenges. Moreover, it also required to analyse environment with an
objective of fulfil required needs and preferences of customers through providing quality
products and services.
P6: Assorted routes to internationalisation which can adopt by organisation, including
key barriers
There are large number of barriers which may brings difficulties towards an
organisation while expanding business at international level. The management play an
important role in identifying such barriers and risk associated with them in order to make an
effective decision and plans to remove such barriers. It is important to analyse all
departments in an organisation such as marketing, sales, finance and operation. Apart from
this, there are many obstructions that could face by “The Entertainer” in terms of different
culture and backgrounds. The taste and preferences of foreign country may also change due
to which the company required to make alteration in products and services accordingly.
Operational activities should be performed in most effective way as they are liable to
produce quality products with the help of utilising available resources. The management of
“The Entertainer” should require to hire researcher who conduct research for them and given
sufficient information about the interest level and buying behaviour of customers. It the
company fails to remove such restrictions then it may difficult for them to expand business at
global level (Hamilton and Webster, 2015). Merger is another way of sustaining into new
market within short period of time. Moreover, there are many restrictions and barriers which
may affect the decision of expanding business of “The Entertainer” in South Africa. Such
barrier are briefly described as below:
 Requirements of adequate funds are must required by an organisation as expanding
business at global level incurred lots of expenditures. Through this, they should
require to approach shareholders, investors and financial institution to avail funds on
cetin rate of interest. The management of “The Entertainer” should required ton
conduct meeting with their shareholders and share the plans and strategies wit them
for the purposes of getting financial help from them.
 Cultural differences are also one of the main barriers which bring difficulties which
restricts an organisation to meet customer’s needs and requirements. Thus, the

management are liable to understand culture in order to maximise them in an effective
and efficient manner. Another way of removing cultural barriers is to recruit
employees having different cultures and backgrounds due to which they can able to
deal with different cultural people in an appropriate manner and thus able to convince
them through providing relevant information about the product and services they
offered (Huhtala and et. al., 2014).
 Technology is another barrier which restricts an organisation to produce quality
products and services for the customers. For example, due to lack of funds the
company unable to install advanced technology due to which they can produce low
quality products with using more resources. It brings disinterest among the customers
as well. Therefore, raising funds from shareholders help them in upgrading existing
technology in production process so as to manufacture quality products. This will help
in increasing the image and reputation of company in market and thus can easy attract
large number of customers.
 Due to large number of competitors in South African market will bring difficulties
and challenges towards “The Entertainer” to sustain in new market for longer period
of time. Therefore, the management should required to first identify the rival’s
strategy, plans, quality and variety of products they offered, marketing strategies etc.
and after that make an effective decision and plans that will bring them ahead of their
competitors. The company should required to provide value added products which
makes their different from their rival’s product. This will help company in generating
huge sales figure and high revenues.
Therefore, it must required for the management of “The Entertainer” to consider all
such barriers in order to prevent losses and discrepancies. Through eliminating such barriers
the organisation can able to achieve huge profit and can survive in new market for longer
period of time (Globalization Challenges for Businesses, 2018).
CONCLUSION
It has been concluded form the above project report that global business environment include
various elements which need to essentially require to be considered by the management if
they want to expand business at international level. Identifying the needs of market and taste
and preference of customers will help an organisation to make an effective plans and
strategies in order to fulfil them in an effective and efficient manner. Alteration in products

and services according to the changing market environment will help in generating huge
profits. Various barriers which restrict organisation to expand business at global level should
also require to be considered.

REFERENCES
Books and Journals
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Doh, J., McGuire, S. and Ozaki, T., 2015. The Journal of World Business Special Issue:
Global governance and international nonmarket strategies: Introduction to the
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University Press, USA.
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