Global Business Environment: Evaluating Challenges & Opportunities

This report provides an analysis of the global business environment, focusing on the factors that influence global commerce and trade. It examines cost, market, environmental, and competitive elements, using Mr Biggs, a Nigerian fast-food restaurant expanding to London, as a case study. The report critically analyzes the impact of key factors on the global business environment, highlighting both opportunities and challenges. It further explains the strategic challenges faced by organizations operating globally, such as entry fees, legal frameworks, tough management and cultural complexity, and evaluates these challenges in the context of risk and diversification strategies and supply chain management. The report concludes with recommendations for Mr Biggs to maintain its competitive position, including increasing brand awareness, leveraging its vertically integrated value chain, and investing in technology. Ultimately, the report highlights that while globalization offers numerous opportunities for economic growth, businesses must carefully navigate the complexities and challenges of the global environment to achieve success.

Global business environment

Table of content
 Introduction
 About company
 P1 Examine the cost, market, environment, and competitive elements that influence global commerce and trade.
 M1 Critically analyse the impact that key factors have upon the global business environment in terms of
opportunities and challenges.
 P2 Explain the complexity of strategic challenges faced by organisations when operating in a global environment
supported by specific examples
 M2 Evaluate strategic challenges in context of risk and diversification strategies and the supply chain flow.
 D1 Critically evaluate the global business environment, including the opportunities and challenges faced by
organisations.
 Recommendations
 Conclusion

Introduction
The globalization is a procedure for placing the local things in the
world with the usage of the network at international level of the global
business as well as operations. A global business environment can
referred to as the condition in various sovereign states with the
exogenous elements, that is, those outside of the company’s home
environment, which influences the process of decision-making on the
capabilities as well as allocation of resource . The report in Part A
discusses factors that drives the globalisation and determines the
strategic complexities that is linked with operations in the global
environment.

About Company
The report is based on Mr Biggs which is one of Nigeria fast food
restaurants founded in 1973. This was established by Derrick Van
Houten dealing in products of fast food, involving Nigerian
delicacies and UAC foods branded products. As Mr Biggs prepares
for starting major branch in London. There are currently around 170
locations in Nigeria involving drive-through restaurant.

P1 Examine the cost, market, environment, and competitive
elements that influence global commerce and trade.
The globalisation can be defined as a process for integrating and interacting in the businesses, people and company globally.
The globalisation is an interaction which is related with features of cultural and social. This includes services, goods, resources of capital
and data. The globalisation takes place because of various reasons. This is the process by which the world links with many countries
through the exchange of products or services across national borders.
PESTEL Analysis influencing organisation such as Mr Biggs in global
 Political factor
 Economic factor
 Social factor
 Technological factor
 Environmental factor
 Legal factor

Continue…
Factors influencing global trade and commerce
 Cost
 Market
 Environment
 Competition
Significant impact of digital technology upon globalisation
The technology at digital level defines usage of the resources for effective creation, analysation and communicating
information in context to digital which involves usage of the software applications as well as web tools. It has affected the
globalisation because of its advancement as well as growth. It pressurises the organisation to become the global with help of increased
economies of scale and market size. There is significantly reduce in communication, transportation cost through digital technology
along with this it facilitates global source of inputs and raw materials (Grazzini and et.al., 2021). The technology which is Patented
promotes the globalisation as the company which owns the patent may earm profit from the foreign markets with less of the
competition.

M1 Critically analyse the impact that key factors have upon the
global business environment in terms of opportunities and
challenges
The global business strategies have both advantages and issues in globalization competition, costs, environment, marketing
and business. The planning of moving into foreign business brings some advantages over challenges of strategies. The global business
environment changes fast which requires company to change accordingly in order to sustain in business. The advantages of Mr Biggs
global business involves scale of economics and the technical amplification by the usage of a big number members for fast food
activities. The larger sales figures are being taken over by the huge number of consumers in a global project management field. The
multicultural presence of Mr Biggs workforce and the innovation in the HR technology by the use of handheld devices for self-use of
Mr Biggs Machineries services for fast and fast online management of customer transactions, such as the resource process during the
process phase monitoring and control, in a work shall make source of resources, develop the team and then manage team processes,
during the execution process phase, while critically analysing an impact of pros and challenges on a scope baseline when the cost-
performance index or ratio of quality conforms to the standard term of the services offered by Mr Biggs to ensure that the triple
constraints (scope, cost, schedule) are met, the plan resource management process agreed by control panel of the experts from the
(PMO) project management office and the estimated activity resources (Iran and et.al., 2019).

P2 Explain the complexity of strategic challenges faced by
organisations when operating in a global environment supported
by specific examples
When a corporation considers expanding its restaurants operations beyond its geographical area, it faces a variety of
strategic problems, ranging from financial to non-financial. As an example, are as follows-
 Entry fees
 Legal framework
 Tough management
 Cultural Complexity

M2 Evaluate strategic challenges in context of risk and
diversification strategies and the supply chain flow.
In the global operation of its Fast-food business, Mr Biggs must be exposed to a variety of risks. These
dangers could be tactical or strategic. The corporation must take different dimensions in its variants to properly
minimise the danger of worldwide operations. The Mr Biggs operation's risk condition will be improved through risk
diversification of the product as well as services, rotation of employee, and measures of diversification of risk. As an
outcome, the quantitative analysis of the extent of risk will determine risk measure, and a risk reduction approach's
measures will introduce the appropriate actions of the risk diversification. Because of global presence of fast-food
organisations, good supply chain management is the most important factor in risk management of issues in Mr Biggs.
Supply chain preference for diversified operations will result in improved output for risk diversification of fast-food
restaurants firms like Mr Biggs global expansion operations (Lundsgaarde, E., 2017).

D1 Critically evaluate the global business environment,
including the opportunities and challenges faced by
organisations.
Global change is influenced by the highly uncertain global environment. Global forces and trends have a direct
impact on business on a regular basis. Growing urban populations, the rise of emerging markets, technology
advancements, and climate change are some of the problems that the corporation faces. Untapped markets, expansion, and
diversification, managing teams, currency and inflation rates are some of the other challenges. The Mr Biggs look for
ways to accomplish the economies of scale by the items which are mass-producing in the markets wherein labour and
many other inputs are being significantly less expensive. On alternate basis, these could seek scope economies by
expanding horizontally in the new geographic markets. Both of the tactics, if it is effective, brings in the result in more
earning of the revenue and/or of the higher profit margins. In the markets where there if high economic growth is also
expected, there is a particularly good chance for corporate expansion. The business practices which are Ethical in nature
in areas like product safety, labour, regulatory compliance and corruption have all played a major influence in the success
or failure of the multinational players in the past. Every state has its own laws and regulations relating to business.

Recommendations
The company was given recommendations for retaining its competitive position in the market by increasing brand
awareness and brand loyalty through promotion using new print and digital advertising styles. Mr Biggs value chain is
vertically integrated, allowing them to manage the entire process from design to delivery. Supply chain management
facilitates the efficient operation of distribution centres and warehouses that transport products across a large geographic
area. Mr Biggs should invest in technology, particularly on the internet front, in order to create customer relationships and
have the opportunity to explore the market (Patterson and et.al., 2017). Before entering for foreign expansion there needs to
be analysis of market and customer of local operation. It is also recommended to have proper knowledge and information
regarding legal and political environment which needs to be acquired before entering into respective countries for business
services.

Conclusion
From above it has been concluded that globalization brings many opportunities for several states to have economic
growth. It is an increase in the dealing of products and services that is manufactured by the economy over the time. The
global expansion of the service-oriented companies such as Mr Biggs is not always expected to yield the better outcome
for business growth. The operations at global level can face more of the unexpected challenges in the global business
environment. These issues or challenges will eventually bring out the negative things in the business operations
together with the better outcome. For this reason, Fast-food business will accomplish an optimized result from the
global expansion of the service through a planned as well as designed stage. Various developments in the market are
affecting the organization's performance and growth. Because the environment has an impact on businesses, it is vital to
examine environmental factors as well as market changes.