Analysis of the Global Business Environment for Dutton Engineering

This report examines the global business environment through the lens of Dutton Engineering, an international firm in steel fabrication and machinery parts. It begins by identifying key factors that drive global commerce and trade, including competition, cost, market dynamics, and the broader business environment. The report then delves into the strategic challenges faced by businesses operating globally, such as consumer expectations and cost considerations. It critically analyzes these challenges in the context of risk and diversification, emphasizing the need for effective strategies to navigate the complexities of international markets. Furthermore, the report assesses the impact of globalization on organizational functions, culture, structure, and governance, as well as the influence of sustainable and ethical practices. It concludes by exploring various decision-making processes and internationalization strategies, highlighting barriers to global expansion and offering insights into how businesses can thrive in an interconnected world. This report provides a detailed overview of the factors influencing global business operations and offers valuable perspectives for businesses navigating the international market.

GLOBAL
BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key factors of cost, market, environment and competition which drive global commerce
and trade......................................................................................................................................1
M1 Critically analyse key factors of globalisation on business in terms of benefits and
challenges....................................................................................................................................3
TASK 2............................................................................................................................................4
P2 Complexity of strategic challenges when operating in global business environment...........4
M2 Critically analyse strategic challenge in context of risk and diversification........................5
D1 Evaluation of global business environment including opportunities and challenges face by
company......................................................................................................................................6
TASK 1............................................................................................................................................7
P3 Impact of globalisation on organisational function, culture, structure and governance........7
P4 impact on sustainable and ethical globalisation on companies functions..............................7
TASK 2............................................................................................................................................8
P5 Various ways of making decision work properly at global level...........................................8
P6 Different routes to internationalisation with key barriers......................................................9
CONCLUSION..............................................................................................................................10

INTRODUCTION
Global, business and environment are three main terms which describes nature of a
business deals in international trade. It consists the fundamental way of organisation for carrying
out its operations. Doing business globally includes numerous forces which shape policies of
such companies (Ferraro and Briody, 2013). Along with this effectiveness of technological
advancement, competitive mechanics and diversification are some key drivers of international
firms. Business environment at global level starts when a company start dealing its products or
services in market of other countries this proves beneficial for them in maximising profit as well.
This make organisations to generate more revenues through which they can gain high return on
investment. In this context, a project is made on Dutton engineering. It is an international firm
which operates the business in steel fabrications and machinery parts. This file discussed about
factors of cost, market, competitors etc. which impacts on doing business at global level. It
elaborates some challenges which are faced by this company in dealing the products in
international market.
TASK 1
P1 Key factors of cost, market, environment and competition which drive global commerce and
trade
To run a business successfully in other countries, managers of organisations need to
concentrate on four main factors that are capital, market, state of affairs and competition. These
elements enable firms in driving businesses legally according to rules and regulations of
countries within which they operates. Therefore, management of Dutton engineering needs to
consider the roles of such factors while carrying out its operation globally. Thus, impact of such
attributes on business of a company can describe as:-
Competition: Before expanding business in other firms, a company should need to
consider on competitors of marketplace of those territorial regions where it want to open the
outlets. At global level there are many rivals having own strategies to avail customers on large
level. Therefore, managers of Dutton need to identify business of its competitors like on which
positions they are currently working as well as what strategies used by them to attract people.
Along with this, what type of product-service are given by them, their price rates etc. helps in
1

determining if opening outlets in their countries are beneficial (Voegtlin, Patzer and Scherer,
2012).
Cost: This factors also affects on globalisation, which is needed to concern also if a
company wants to do its business in other states or counties. Cost or pricing is fundamental for
success of an enterprise. Therefore, managers of Dutton are required to review its price strategies
in order to maximise profitability. Generally, buyers used to compare rates and brands of same
products of company before purchasing commodities. Thus, managers of companies make
appropriate strategies by analysing competitors' policies, economy of regions and purchasing
power of people. While making decisions for fixing rates of products, associations of Dutton
used to evaluate demands of people also like how much they can pay for acquiring the same.
Moreover, other things managers need to focus for making price strategies is to evaluate
investment rate of production. Addition with this, cost of raw materials, labour cost, trade
interest, etc. all expenditure which is used in making products till delivering the products to
customers. These are the internal factors that impact pricing of commodities but along with there
are external elements also which affects the same. Standardization of people, life styles,
preferences or choice, interest rates of trade etc. are external factors that influences profitability
much. This would help them in generating revenues and getting desired profits (Wild, Wild and
Han, 2014).
Market: This is the main factor which affects business of organisation at global level.
Globalisation refers to increase or decrease in degree of globalism which focuses on dynamism
of marketplace. It helps in widening businesses of companies as well as enhances sales
performance of companies at big level. Nature of market helps in evaluating what type of
products or services are demanding in a particular regions through which a company can
understand if taking risk in such area is beneficial or not. Understanding market needs help in
analysing how much organisations can gain high return on investment. Since Dutton always
ensure to produce best quality of products and customer satisfaction is its main priority.
Therefore, it is better to open outlets where people can purchase best quality of items on any rate.
Taking risk are generally beneficial for expansions in another countries. It helps in generating
much revenues as well as association can become able to maximise profitability as well (Savrul,
Incekara and Sener, 2014). Opening outlets in such markets where much competition are already
2

present is helpful in enhancing sales performance. Dutton Company is dealing in machinery
components so, expanding business in other countries is good for its business.
Environment: In global organisation, environment can be defined as an external factors
which influences decision-making process much. This factor provides many challenges as well
as opportunities for companies which includes uncertainty, surprise, turbulence and discontinuity
(Wetherly, 2014)). Furthermore, this factor consists customers, competitors, rules and
legislations of regulatory bodies, changes in technologies etc. which really impact on business
environment of all firms whether they are dealing in manufacturing sector, retailers or else. Apart
from this, globalisation helps in removing barriers among countries which generates good
relationship among countries. This process assist in increasing efficiencies like doing business in
other regions help in getting resources, developing new strategies and take challenges of
marketplace. Environment is a key factor of globalisation which drive trade and industrial
commerce in businesses. In present scenario, global environment is digitalise in nature through
Dutton can attain its objectives and goals in a profitable manner. Along with this, for analysing
impacts of factors on its business environment, it is better to analyse PEST, SWOT or Porter
Five Forces techniques by which it can take appropriate actions for the same.
M1 Critically analyse key factors of globalisation on business in terms of benefits and challenges
In today's business world, almost all countries want to expand their organisations in
international market. This would helps them in getting much revenues and high return on
investment. Since globalisation is dynamic and diverse in nature which give opportunities to
many corporations to open outlets in various regions. Furthermore, at international level,
industries have many benefits along with challenges which they need to analyse first before carry
their operations in another territorial regions. This would lead them to give high competition to
rivals as well as provide chances to extend national and international clients much. A major
benefit for enterprises which are dealing at international level is it lead them on better positions
by increasing in profit margin. With this assistance, some more benefits and challenges for
global organisation are:-
Benefits and challenges at global level:
Most benefit part of globalisation in a company is that it would help in connecting more
and more number of customers towards their products or services (Cavusgil and et. al., 2014).
Therefore, providing satisfaction to them is a major challenge as people of different nations have
3

distinct thoughts and opinion. It is a duty of such enterprises to know interest level of customers,
their preferences and desires. This would help Dutton to produce services according to needs and
desires of its various clients. Along with this, another benefit that relates with growth of
profitability is- being international company provides opportunity to purchase materials easily on
low cost as well as opening business in countries where labour cost is much low is really good
for production.
TASK 2
P2 Complexity of strategic challenges when operating in global business environment
In this arena of enterprise, is raising globalised within nature with continuously change of
technology as well as rapidly changes in a taste and preferences of consumers. Hence, flexible
trade policies made by government for raising mutual understanding effectively so that at a cross
border enterprise exchange is promoted. With this, internet support various small enterprise to
operate at higher level so that accurate and better gains can be estimated. Beside these all
advantages, there are various challenges which are faced by company which are dealing at a
global level. All these are understand by manager in a better way of Dutton engineering so that
they can able to frame policies for dealing with these problems as well as issues properly (Black,
Morrison and Gregersen, 2013).
In mixed economy India is an best example where trade barriers are less but interest of
consumers changes are high within nature. Thus, with a hope of achieving market share within
country such as India. Dutton engineering evaluate its best place for expanding a plan by which
company able to make higher profits. Hence, various strategic challenges are operating in the
environment of global enterprise are given below: Expectations of consumers: At a level of global, each user expectations are highlighted
within nature. Hence, every user perspective is very difficult in nature which challenges
are created for framing proper strategies. Thus, Dutton engineering manager have
evaluate the scenario market effectively when it help to operate set up in UK as well as
try to contain like as food goods which consume highly by the group of target market.
Cost: One of an main issue when enterprise operate at a level of global is applying cost
and organisational establishment. Hence, when enterprise operate at global level which increase
naturally. Thus, various numbers of audience are reached by internet which is more efficient
4

within nature. Thus, it is impossible for each company to set a store in a choose country as well
as initial deal at low cost but due to internet it became possible. Dutton engineering determine as
an main challenges due to it help to construct stores in other country they require more accurate
fund for this aim due to requirement of market research, infrastructure, putting in building,
workers recruitment etc. hence, it is an hard option for enterprise and create problem for
operating effectively (Laudon and Laudon, 2015). Therefore, this difficult condition get rid down
by making techniques such as joint venture etc.
M2 Critically analyse strategic challenge in context of risk and diversification
There are many challenges and risk in opening business at global level. It requires much
capital for investment and production. Globalisation demands existing and new firms to made
effective strategies and policies in order to attract customers. Along with this, these industries
need to offer products on affordable rates so that people can purchase their commodities. When a
company start its business in another country then it needs to promote its products in such
regions through effective marketing techniques. Organisations should use strong networking and
distributing channels for advertisement. Furthermore, implementing risk and diversification
helps Dutton Company to formulate strategies in a proper manner which would help in supply
chain management. Taking risks always good for companies in increasing growth and capital of
firms. This process also improves working conditions of employees as well as gives much
opportunity for employment. Opening outlets and branches in other countries needs much human
resources, therefore, it helps in reducing unemployment also. Thus, doing businesses at global
level is not only beneficial for firms but also for people who living in these countries (Zhang and
Huang, 2012).
D1 Evaluation of global business environment including opportunities and challenges face by
company
Globalisation generate employability as well as enhance economy of a country too. It
increases competition level much which impacts on business environment of companies too.
Sometimes in order to compete with competitors, firms offer their products on much low cost.
Selling products on easy rates effects on quality of products as well as impacts negatively on
brand image. Due to which after sometime, customers used to move on in searching of good
quality products. But doing business globally also creates many benefits if done in proper
manner. Hence, in context with Dutton Company, it also face number of opportunities and
5

challenges which it evaluate by using PEST (Political, Economical, Social and Technological)
and SWOT (Strengths, Weaknesses, Opportunities and Threats)analysis. It has evaluated
following opportunities as follows:
 The major opportunity for this company is free trading which helps in increasing sales
performance
 It would create diversity in organisational culture also
With the opportunities, challenges and problems for Dutton can be describes as:
 Managing business internationally is a complex process as it demands to comply
organisation with all legal formalities.
 It forces companies to review and change strategies and techniques timely.
TASK 1
P3 Impact of globalisation on organisational function, culture, structure and governance
Companies governance is a process in which management make an accurate control and
hold over each practices. Hence, at a globalisation time governance management get influenced
which is not accurate for a long term and various harms reflected. At a level of global, many
numbers of associates as well as stakeholders get related with organisation and it consider each
individual effectively for making this accurate. Thus, their impact on an working association get
enhanced (Simic and Dimitrijevic, 2012).
Various functions at a level of blog also enhanced which is supported by firm to higher
profits. But in negative way, various numbers of activities need proper directions and cost so that
appropriate working could be enhanced. Globalisation make a double aspects on enterprise in
which both concepts like negative and positive are determined effectively. Therefore, they
require to change their working culture as well as which require them as per their changes within
the company. Enterprise structure also get modified due to local level not take so much changes
within a place but due to typical changes in operations require more difficult structure which is
influenced by workers.
Dutton engineering have to expand enterprise operations for which they require to
determine every concept effectively which are their culture, leadership, governance and
structure. All such thought require proper direction into enterprise so that it can promote better
working (Kasemsap, 2014). Globalisation in their operations of enterprise made impact on their
6

enterprise structure along with its working. Leaders require to modify their style of working
effectively otherwise various risk get effected into an companies policies. Therefore, it is an kind
of modification which cannot resist. Hence, enterprise require to determine all these effectively
and take a proper decisions for that effective as well as better working can be enhanced.
P4 impact on sustainable and ethical globalisation on companies functions
Ethics meaning is values as well as norms which are linked with enterprise on which
organisation manager have to review typically. Hence, enterprise have to follow effectively all
values as well as ethics within enterprise at such point when they start operating at a level of
global. Hence, managers require to make every ethical of operational within nature so that
effective and better working could be enhanced. Because of marketing globalisation lead to raise
numbers of markets which deal with different ethical problems (Lee, Olson and Trimi, 2012).
Ethics have to follow by each company in an effective way. As these enterprise practices
get influenced. For creating a image and reputation in front of buyers, management require to
frame as well as follow proper techniques so that it can enhanced better working. Globalization
is sustaining when an company effectively raise effective market share for which they can beat a
market effectively. Dutton engineering have to consider both globalization effectively. So that
they able to deal at a place of market appropriately. Impact of sustainable and ethical
globalisation made a vast influence on the functions of company which are very useful for proper
working.
TASK 2
P5 Various ways of making decision work properly at global level
Process of making a decision is not an easy for the managers of company. Their are
various things which are interlinked with an organisation as they have to consider whenever any
tough as well as harsh decision will be carried. It is important for higher authority to adopt and
use such steps which are giving advantages to nature as well as determine every stakeholder as
well. Dutton engineering have to globalise enterprise functions in which management require to
make concentrate on process of decision making so that effective and better working can be
promoted. Hence, managers of enterprise of reference organisation determine two better ways of
making decisions which are given below:
7

 Programmed decision making: In enterprise various decisions have achieved straight
forward within nature which do not need more consent to get evaluated in most proper
way. Hence, these planned decisions are within nature such as concentrating on
customers daily compliant, enterprise modernization and its various functions.
 Unprogrammed decision making: When having a higher chances of risk within nature.
Their are various uncertainties faced by enterprise they have to take a decision of
unprogrammed into consideration by taking logically account. These type of evaluating
judgement best return as logically as a highly based (Alqahtani and Saba, 2013).
Enterprise globalisation is refer to a process where management require to make a
decisions which are unprogrammed within nature as they are base on facts as well as logic which
signifies proper and better working. Dutton engineering require to take decisions of
unprogrammed which is linked with higher numbers of functions. Hence, managers require to
give some judgement which are logical so that proper working can be enhanced.
P6 Different routes to internationalisation with key barriers
It is a process by which operations of enterprise became able to operate at higher level. It
is an one of typical process when an company wants to collect higher profits for their enterprise
so that sustainability chances and gain a competitive advantage. One of a way for making
globalised enterprise in nature is acquisition and merger by which company able to enhance
various operations in others country.
Dutton engineering wants higher operations in UK as well as they can choose a best
option of merger. Hence, by this internationalisation, it able to make higher profits as well as
gain higher return in some perspective. Therefore, there are different barriers which are
evaluated effectively which are linked with internationalisation for Dutton engineering which
are given below:
 Cost is an one of barriers for a organisation in which management require to invest higher
by others country. Hence,organisation manager have to evaluate such countries where it
can invest easily for increasing better as well as proper results.
 Culture barriers is an organisation restriction which is evaluated culture of organisation.
Hence, it will restrict enterprise for achieving success as well as increased profits of
enterprise. This barriers get results only by adopting culture of organisation a it will help
8

enterprise to evaluate functions accurately and properly in nature (Solomon and et. al.,
2014).
 Technological barriers are consider as an major restriction for a organisation due toeach
new country latest technologies are included. Dutton engineering managers are using
modern and latest technology for accomplishing targets as well as goals effectively for
managing their profits and productivity.
 Political instability is an one of an organisation barriers due to continuously
modifications in policies. As it make complex for large organisation to operate practices
effectively. Hence, it is responsibility of manager to start operations in countries as well
as manage various operations effectively for making proper operations within nature
(Ramamurti, 2012).
CONCLUSION
From this file it has concluded that doing business at global level requires much analysis.
A company needs to concern on internal and external factors which can impact on its business
environment either in positive or negative manner before opening outlets in another countries. Its
management is required to look out rules and regulations of different territorial regions. Along
with this, interest and preference of people which vary according to their nationalist are also
needed to understand through which a company can determine what type of products it need to
manufacture.
9