Global Business Environment: Strategic Direction and Challenges Report

This report delves into the global business environment, utilizing Cameco, a uranium producer, as a case study. It explores the key factors driving global business, including cost, market dynamics, competition, and environmental considerations. The report analyzes the impact of these factors on the global business environment, highlighting both benefits and challenges. Strategic challenges faced by global businesses are examined, with a focus on human resources, cultural differences, and communication complexities. The report also covers risk and diversification strategies, supply chain flows, and decision-making processes within a global context, including the application of models like McKinsey's 7-S and Hofstede's cultural dimensions. The report concludes with recommendations for overcoming barriers to global business, providing a comprehensive overview of the complexities and opportunities inherent in operating in the global marketplace.

Global business
environment/impact and strategic
direction

Table of content
Table of Contents
Table of content...............................................................................................................................2
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1. Key factors of cost, market, environment and competition which drive global business.1
LO2..................................................................................................................................................3
P3. Strategic challenges faced by global business..................................................................3
LO3 .................................................................................................................................................6
P3. Impact of globalisation on organisational governance, leadership, structure, culture and
functions.................................................................................................................................6
P4. Influences of ethical and sustainable factors of globalisation on organisational functions. 8
M3. Global market influences by applying theories and models in relation to organisational
structure and culture...............................................................................................................9
LO4. ................................................................................................................................................9
P5. Different ways decision making can work effectively globally.......................................9
P6. Various strategic expansion routes and their advantages and disadvantages.................10
M4. Recommendations on overcoming the barriers in doing business globally..................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Globalisation is the process of international integration arising from the interchange of world
views, products, ideas and other aspects of culture. The present study is based on Cameco
company which deals in generating the electricity and provides uranium across the globe. Further
the report describes the concept and driven factors of globalisation. It also explains about the
pestle analysis of the organisation and the impact of globalisation on organisation's governance,
culture and structure. The Mckinsey's 7 s model and the Hofstede model is also described under
the study and the decision making styles with the barriers faced by the company are mentioned in
this report.
LO1
P1. Key factors of cost, market, environment and competition which drive global business.
There are many factors and drivers which drives the global business commerce and trade. Those
factors helps in encouraging the global business by providing variety benefits which enhance the
global business and encourage businessman to trade at international level.
Cameco is uranium producer which also get benefits from different factors to expand tehir
business at inter national level. Some factors which helps in driving the globalisation are:-
Cost- cost is the crucial and the useful drivers of business to leads towards the way of
globalisation as costs of transportation including ocean shipping got reduces because of
containerisation, bulk shipping and various other efficiencies which ultimately leads to fall in
cost of ocean shipping which brings the price of the manufacturer country closer to price oif the
export market. Hence, it enhances the export of the goods in different countries which enhance
globalisation.
Market- the market drivers include some forces which compel customers to buy the product and
pay for the services they receive. Trends of the market helps them to grow and develop. The
most common and important market drivers are demand by the consumers, government policies
and supply. Businesses evaluate what customers actually need and according to their
requirements and demand, goods should produced and then supplies into the market as customers
have increasingly knowledgeable regarding the products and they are willing to try the
alternative foreign products. The people of the market which have different tastes and

preferences can also affect the business to trade at global level and to satisfy the customers needs
and wants.
Competition- as every business is affected with their competitors as competitors are able to take
off their profit margin, to win over the competitors it is required by the Cameco to take the
necessary steps and make its business at global level by providing quality services in such a way
that they can attract more customers. Company generally find the ways through which they can
win over their competitors which leads business to drive towards the globalisation to expand
their business and to create a strong brand value all over the world.
Environment-globalisation is a n important concern for environment as every business is focused
towards the activities of the Business sin direction of economically feasible and environmental
friendly. As Cameco producing nuclear energy which has high demand in other countries as they
were not been able to produce such energies then Cameco being environmental feasible company
is providing the energy and power to nation country's well as in foreign countries as it increase
the profit margin of the company in addition to this satisfying the people of other countries also
by benefiting the environment and focusing on the corporate social responsibility as well. to
contribute towards the environment Cameco business start developing the energies which is
environmental friendly and doses not harming The environment which leads to its demand in
different countries of the world and hence brings business towards the globalisation and help in
developable the business at global level.
The impact of key factors on global business environment in terms of the benefits and
opportunities.The key factors including costs, market, environment and competition have a great
impact of globalization somewhere it helps business to grow and develop at global level as well
as challenge for the business to act on global level.
Benefit of factors on global business environment
As cost of transportation and shipping reduces which leads the business to export their products
and services to different countries which help them in expanding their business
Market factors benefited the global business as Cameco is fulfilling the demand of the foreign
customers by providing them the services according to their needs and wants which resulted in
increasing demand of Cameco products and services in international market and hence market
share of company increases at global level.Competition leads the business to produce more
efficient goods and services to satisfy the customers in such a way that they can win over their

competitors and provide the quality services to their customers in international market also
which ultimately help the company to grow and expand their business globally.These all re the
factors which directly or indirectly benefiting the company to expand at global level.
Impact of factors on global business environment in terms of Challenges
As cost reduction help business organisations to expand its business global level but it is also a
challenge for the business globally is not that easy .shipping of the goods may carry less cost but
other formalities contains heavy costs which has to be pay by the business to export their
products and services to another nation and expanding the business sin different country in the
market is a great challenge for every business.
Market forces including demand and supply also affect the business to expand their activities
globally as every country have different tastes and preference in their own way and to expand the
business in different countries it is required by the business s to produce the quality which
satisfies the need and wants of those people to get success in foreign markets and to satisfy the
foreign demands.
The production of goods according to the importers country is necessary to successfully
accomplished the business at global level.
LO2.
P3. Strategic challenges faced by global business
There are many challenges which can be faced by global business a strategic decisions
are the crucial part of the organization which help the company to expand its business and grow
in international market.Strategies formed by the Cameco may be successfully implemented in the
nation country but it is not necessary that it also accomplished successfully in different countries
For successful implementation it is necessary to continuously monitor the performance of the
company relating to global business that they are going into the direction of strategies or not.
Strategic challenges are basically the pressure that exert a decisive influence on organisation
chances of future success. The strategic challenges may include market needs or expectations,
any technological and product change, financial, social and other various risks or needs.
Some strategic challenges faced by organization are :-
Human resource- companies operating at global level needs to focus on hiring the right people
at the right place while implementing a global strategy as human resources are important for
driving the global business successful. it requires continuous coaching to the leaders so teht they

can adopt the different cultural environment while working with leadership skills. For eg an
airline company hiring the staff which is not reuired in that place which laeds tro wastge of te
resources as wella sfailure of achievemnt of organsiational goals.
Catering to different market is necessary for Cameco to understand the requirements of global
market as it is not necessary that the requirement of domestic market works in other market as
well. The perceptions, needs, attributes, and other factors must be considered by the organisation
as it affects the decision making process related to customers in market in order to satisfy the
customers and giving them the solutions. Hence, it is required by the company to conduct a
thorough analysis regarding to market to deliver the localised products and make alterations
according the reference of the foreign customers if required. For example a fashion brand
company producing the fashion gowns for women's which is according to the domestic
customers taste and they exporting the same good in different country where it is not demanding
at all as women's of that country like to wear T shirts which will lead to failure of the
achievement of business objective.
Communication-expanding the business globally and spreading out across multiple countries
makes it difficult for the organisation to communicate which is big complication and slows down
the decision making process which is huge barrier in success of the company. The strategy of
encouraging the leaders to use the company intranet sites is followed to get in touch and
collaborate with peers in different countries, regions and multiple businesses electronically. This
can be used to share business practices and it allows allow the business to collaborate\rate with
each other and make a common understanding of each other's gaol.
Unfamiliar culture- the strategies made by the nation company must be communicate to
different countries which make difficult for the people of other countries to understand as they
may be from different cultures, background. It is need to formulate the strategies according to the
culture of the people of particular country so they can understand the strategy efficiently and can
implement the same in direction of organisational goal. Overcoming the cultural challenge is
important as it takes the business global so that they can assimilate with the people who will be
the customers of the company.
Mastering marketing- the company must having the best knowledge
Regarding the buying process og another country in which they are expanding their business .
The way to reach the customers of different countries is another element which takes the

business at global level which will allow the company to establish the customer base which is
necessary to be successful at global level in long term. Without knowing the buying process of
different markets it is very difficult for the company to expand globally they need to overcome
these challenge effectively and efficiently.
Analysis of strategic challenges in relation with risk and diversification strategies and the
supply chain flow
All the strategic challenges are subjected to te risk a s implementing the strategies
according to the change of different countries and taking into considerations the other countries
factors which is a complicated task any company faces.
Human resources challenge for the company contain high risk as wrong selection of people at
work place may brings the organisation failure in achievement of the success.
Unfamiliar culture might not lead the company to mange its human resource or employees of the
company efficiently which will result in failure of organisational as well as individual goal.
Catering to different markets is another risk faced by the business as producing the goods
according to the taste and preference of the domestic market is quite easy but producing the
goods according to the different market tastes and preference s and fulfilling their demand is
difficult and complex task which a company faces. These all are the risk through which company
fail to achieve its objective of being globalised. The company can diversify all the risks through
different factors so that thy can diversify and hedge their position. Supply chain flow contains
many risks related to natural disasters, electronic attacks, economy, politics which can make
disrupts the supplier that they will not be able to meet the company's needs. These disruptions
can impact on the customers' delivery, perditions and utilizations which ultimately cost the
company's time and money and leads to the wastage of the resource. Supply chain diversification
helps Cameco to mitigate its risk by making sure that they have diverse the supplier base
irrespective of any problem.
The strategies which can be adopt the company operating at global level by valid and
justified recommendation regarding how they should adapt the organisational structure
and decision making process.
There are many strategies which can be adopted by the business which help them in their
decision making process. some strategies which helps company are :-

Multinational strategy which involve d many markets beyond their domestic markets . But the
company requires to make a distinctive strategy for each market as customers demand and
competition are different in different countries
Global strategy treats the world as combine a one market and also consider it one source of s\
supply with little variations . Competitive advantage is developed on global basis by effective
evaluation of the competitors of the Cameco company.
International strategy the company objective si related directly to its domestic home market in
addition to those they also have objective relate to overseas activities and hence needs an
international strategy which help them to expand their business globally and making prompt
decisions regarding the business activities which will direct the company towards its goal.
LO3
P3. Impact of globalisation on organisational governance, leadership, structure, culture and
functions
Globalisation is a process that integrates world economies, culture, technology and governance.
It involves the transfer of information between developed countries and developing countries.
Governance- Cameco functioning in the global market need to ensure framing of necessary
management documents for its business so that it can achieve its objectives, strategies and
develop policies appropriately as required for the approval from the board. The company has to
develop systems in relation to fulfil social responsibility and to work sustainably and ethically.
Ensuring safety and integrity towards the internal management of the Cameco. The organisation
has to follow all the laws and legislations to remain stable in the global market operations.
Culture- It includes the languages, beliefs, customers and traditions. The culture of indigenous
and national peoples all over the world have been changed by globalisation through trade,
mitigation etc. Globalisation impacts the culture in both ways positive and negative as through
worldwide operations Cameco has created trading opportunities in many places while it has
faced dominating cultures and lose the national identity.
Structure- To meet the need of globalization Cameco has developed and designed its
organisation structure in such a manner which is adaptive with the changing environment. The
company follows the divisional structure to organise its business in several regions and markets
across the globe.

Leadership- globalization has influenced the leadership in different ways through the
competition, customers, markets and increased opportunities. A leadership style that Cameco
follows varies from one country to another as a good leadership in one country may be not good
as per the other country. This reflects the individual skills of encouraging others and not focusing
on creating their own position. For running the business in the global market, Cameco has
adopted collective leadership style to remove the loopholes from the department.
Functions- Globalization affects the managerial functions in the company in relation to
managing the dynamic environment, Using the latest technology, innovation and creativity etc.
Planning, organising, staffing, directing and controlling functions of the organisation sholud be
executed keeping in mind d the global effects.
McKinsey's 7 s framework-
Strategy- Cameco set strategy in relation to the challenging environment and focuses on long
term aspects. It strives towards meeting the increasing demand of the electricity with increase in
population. The corporation facilitates nuclear energy that avoids air pollution and people can
use the power at an affordable price with safety which leads development of the economies.
Structure- Divisional structure is followed by the Cameco where each organisational function
are grouped into a division as per the geographic locations. This structure enables the firm in
focusing on new markets and can grow along geographic lines across the world.
Systems- the tasks are performed as per assigned by the managers of different divisional
departments. Work is performed in accordance with the strategies set and the policies made by
the managers. Timely review of the performance is done to ensure that functions are performed
as per the set target. Proper functioning helps the Cameco in achieving the goals effectively and
efficiently.
Shared Values- This company ensures safety of their workers and the public. It creates the
environment that minimizes hazards and maximizing quality. The overall work culture of
Cameco is assuring workforce with high safety standards and environmental protection so that a
value can be created by the company in the international market.
Style- visionary leadership style is adopted by the organisation that creates and articulate a
realistic and attractive vision of the future for Cameco. Such leaders have a vision and aim to
implement it. The leaders prepare the employees to assume greater responsibility so that any
uncertainty could be met in the future and can grow in the changing circumstances.

Staff- the leaders of the enterprise constantly take necessary steps to improve their team so that
they could perform with more efficiency.
Skills- the employees of the company are highly skilled and perform their task with the best to
their potential so that the enterprise can achieve its goals and objectives with quality performance
and this leads to build the image of the company in the global world.
P4. Influences of ethical and sustainable factors of globalisation on organisational functions.
Corporate social responsibility- A preoccupation with business ethics and the social
dimensions of business activity has been around for a very long time. It is an obligation that
required by law and economics. For Cameco to pursue long term goals, corporate social
responsibility are good for society. It is the continuing commitment by the business to behave
ethically and contribute to economic development while improving the quality of the workforce
and their families as well as that of local communities and society at large. It is essential for the
company to contribute towards society to enhance the reputation in social and environmental
areas. Social performance increasingly influences investors decisions, as ethical market grows
with a high pace in the global market. CSR enables the Cameco in strategic management of
internal and external risks in social and environmental areas.
Sustainable environment-As the organisation generates nuclear energy that leads to pollution
free environment which creates sustainability of the environment in the future. Cameco builds
strategies to cope up with the challenging environment so that it could attain the stability in the
changing condition and can grow the market worldwide. It helps the enterprise in increasing the
general welfare of the people.
Health and safety standards- The corporation focuses on high safety standards as the task
performed by the worker are safety sensitive so it takes proper measures regarding health and
safety of their employees by setting the safety equipment and fire alarms etc.

M3. Global market influences by applying theories and models in relation to organisational
structure and culture
Explaining global market influences by applying Hofstede Cultural dimensions-
Low power v/s High power distance- Under this the inequality in the organisation is measured
by power distance index. Higher the score of power distance index, higher the inequality exist in
the corporate while lower score indicates lower inequality. Cameco has higher score because
hierarchical relationships are present at the workplace that means a respect has to be devoted
towards the higher authority.
Individualism v/s collectivism- this dimension reflects the mutuality between the members
within the work environment. Higher score indicates that there exist very little sharing of work
and responsibility. The individual value the time of the people and respect their reward for good
performance. This company has low score of this cultural dimension. Low score states the strong
cohesion of the group which means a huge respect and loyalty towards the workplace. Working
with harmony is the motive of the employees so that everyone can focus on the organisational
goal and work towards one direction.
Low v/s high uncertainty avoidance- Cameco has low scoring in this dimension as they accept
the change and not avoid the uncertain situations which sustain their growth even at the times of
recession or unstable economies and environment. It takes initiatives and invites the innovation
in the market so that it could lead to competitive position in the global market. On the other hand
low scoring shows that the company avoids the uncertainty and does not work with planned
policies.
Short term v/s long term orientation- this dimension states the rules that are based on the
customs and traditions in relation to the long term and the short term aspects. In this cultural
dimension Cameco has low scoring as it promotes the individualism where everyone are ready to
help each other and all the people are treated equally. The members show willingness towards
the innovative ideas and execute those ideas with effective planning. On the other hand, high
scoring indicates that higher values are given to the higher authority.
LO4.
P5. Different ways decision making can work effectively globally
There are four basic decision making styles that can be used by the managers to work in a global
market effectively-

Command- When the leaders of the Cameco wants to make decision quickly then they use
command style where the decisions are made by them without any discussion and consultation
with their teams. It is effective when the team needs immediate guidance and for taking decisions
regarding financial matters.
Collaborative- In this style leaders make decisions in consultation with their team members by
taking feedback so that mutual understanding can be build within the team. By this the members
works with free mind and high morale as their opinion and perception are taken into
consideration.
Consensus- This decision making includes the voting of all the members in the team so that
majority decisions of the group people can be taken. It works well where the final decision
impacts the team as a whole. For making decisions on major issues this style works better for the
Cameco to function with excellence across the world.
Convenience- For creating the abilities of the managers in making decisions this style enables the
organisation in making effective decisions worldwide as complete delegation is been done under
this style for making the decisions as per the convenience. The team is empowered to make and
choose the best alternatives.
P6. Various strategic expansion routes and their advantages and disadvantages
Market Development- For attaining the worldwide market capture Cameco has developed its
marketing strategies by increasing the sales of its existing products in the new market. Through
this strategic route company can attain its competitive edge against its rivalry and creates a
healthy competition in global market.
Advantages Disadvantages
It helps in reaching the sales target across the
country.
Restricts the access by competitors.
Increase the cost of the marketing like
advertisement.
The distribution cost also increases with
moving into a new market.
Diversification- Cameco has innovates the nuclear energy power and set up their plants across
the global market so that it could have new market with its innovative products and this leads to
increase in the profits of the firm.