Global Business Environment: Amazon's Internationalisation Report

This report provides a comprehensive analysis of the global business environment, using Amazon as a case study. It explores the influences of globalization on organizational governance, leadership, structure, culture, and functions, utilizing the McKinsey 7S model to evaluate these impacts. The report also examines the role of ethical and sustainable globalization on organizational functions, highlighting their importance in building reputation, attracting customers, and delivering high-quality products. Furthermore, it evaluates effective decision-making processes in a global context, incorporating Hofstede's cultural dimensions theory to understand cultural influences. Finally, the report determines and articulates various routes to internationalization that organizations like Amazon may adopt, along with associated barriers, providing valuable insights into navigating the complexities of the global business landscape.

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1&2.......................................................................................................................................1
TASK 3............................................................................................................................................1
P3 Evaluate the influences of globalisation on organisational governance and leadership,
structure, culture and functions..............................................................................................1
P4 Evaluate the influences of ethical and sustainable globalisation on organisational
functions.................................................................................................................................2
TASK 4............................................................................................................................................3
P5 Evaluate the different ways decision making can work effectively in a global context...3
P6 Determine and articulate the various routes to internationalisation an organisation may
adopt, including key barriers..................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Globalisation is very important for a business to increase its organisational activities as
well as expansion of company into different area (Smith and Cockburn, 2013). This will help in
improve customer bases as it is a linkage of between business and countries, people as well as
global economy. Global business environment is full of opportunities and it consist of various
factors which can have huge impact on organisation. Company chosen for this report is Amazon.
This is one of the leading American multinational company which is dealing in E-commerce
market area. This company was founded in 1994 and founder of this organisation is Jeff Bezos.
Amazon headquarter is located in Washington, US and it is providing its services to various parts
of the world. This report consist of various factors such as cost, competition, environment that
drive the global trade. This includes different challenges that is faced by organisation which is
dealing in global business environment. It consist of influence of globalisation on organisational
governance and leadership as well as ethical or sustainability. Apart from this different way
decision making is evaluated as well as various routes to internationalisation has been
determined.
MAIN BODY
TASK 1&2
(Covered in PPT)
TASK 3
P3 Evaluate the influences of globalisation on organisational governance and leadership,
structure, culture and functions.
Globalisation will have huge impact on organisation as it will affect its business
activities, leadership, culture as well as functions. It is very important to analyse the influence of
globalisation on organisation governance of Amazon company (Salvatore, 2015). In order to
analyse impact in more effective and efficient manner company needs to evaluate McKinsey 7S
model. This is an effective tool which is developed in 1980 by Tom Peters, Robert Waterman
and Julien Philips. This model consist of seven internal factor that is helpful in successful
business and it is a framework for organisation. This model has divided its factors into hard and
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soft elements. Hard elements includes strategy, structure and system where as soft element
consist of shared values, style, staff, skills.
 Strategy: This includes all those strategies which will help in gaining competitive
advantage over other rival companies. Amazon company needs to develop those
strategies that will lead to smooth functioning in global business market.
 Structure: Amazon company needs to develop its organisational structure as per needs
of globalisation. It is important that company has well organised structure so that
business activities can flow in correct manner.
 System: Globalisation will have impact on business process, procedure as well as
employees. This will directly affect the leadership activities and organisational culture.
 Shared values: This is the core value of Amazon company which reflect its culture as
well as business ethics. Globalisation of business operations will have influences on
environment and culture of respective organisation.
 Style: This refers to the behaviour pattern of employees as well as team (Groşanu and
et.al., 2015). Globalisation will affect the working style of employees as they have to
conduct business activities at different market area.
 Staff: Amazon company staff members will be affected by globalisation as through this
company will be able to attract more talented staff member within organisation.
 Skills: Globalisation will have influence of skills as well as core competencies of
organisation. Amazon company needs to develop its skills and capability while
conducting business operations at global market.
P4 Evaluate the influences of ethical and sustainable globalisation on organisational functions.
It is very important for company to operate it business functions by considering all ethical
and sustainable factor. Ethical and sustainable globalisation will have huge impact on
organisational functioning as it will help in smooth flow of business activities. Amazon company
is dealing in highly competitive environment so by considering ethical business practices
company will be able to develop its market image. It is essential for company which is offering
its products to differenced market area (Pikhart, 2017). Globalisation will have direct impact on
business activities as well as its performance. Impact or influence of ethical and sustainable
globalisation on functions of Amazon company.
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Reputation building: Ethical and sustainable globalisation will lead to increase the
reputation of business. It is very important for a company to follow all rules and regulations as
well as take business decisions by considering business ethics. This will lead to develop image of
company in market area.
Attracting customers: Globalisation will have positive impact on company and it will
lead to increase the customer bases of company. This is very helpful in attracting more and more
customers towards Amazon company. By considering ethics and sustainability in business
process company will be able to maintain strong and positive relationship with customers.
High quality products: Ethics and sustainability will have direct influences of
organisational functions and it will help in developing high quality products and services. It is
very important for company to offer products and services by keeping right quality. Its product
should not provide any harm to customers.
TASK 4
P5 Evaluate the different ways decision making can work effectively in a global context.
Decision making is a crucial part of organisation as it helps in conducting business
operations in effective and efficient manner. There are various factor which can have impact on
decision making. It is very important for Amazon company to take right business decisions as it
will have direct impact over performance as well as productivity (Kokodey, 2013). There are
different ways to take better business decisions and improve the work quality. While conducting
business operations at global level it is significant for respective company to take better decisions
as well as develop strong strong. Decision-making will work more effectively in global context
when it is taken after analysing and evaluating internal and external business environment. This
will help in identifying which factors can have positive impact on business and which can have
negative impact on organisation. This will help take better business decisions and improve work
quality. There are different factor such as culture, society, behavioural and many more. It is
significant for respective company to consider culture, society in order to take better business
decisions.
In order to analyse different culture as well as their impact on global business market it is
essential for company to analyse Hofstede's cultural dimension theory. This theory in context of
Amazon company is mention below.
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 Power distance: This dimensions includes the power which is distributed in
organisations and market (Kasemsap, 2016). In this high power indicated that culture
accepts inequality where as low represents that culture does not accept inequality.
 Uncertainty Avoidance: This factor refers to the impact of uncertainty on the global
business environment. High uncertainty avoidance indicates a low tolerance of
uncertainty.
 Individualism VS Collectivism: Individualism refers to the degree to which society are
integrated into groups and collectivism indicates the grater importance is provided to
common goals.
 Masculinity VS Femininity: This factor defines the toughness as well as tenderness of
society. Masculinity refers to distinct gender role and femininity is majorly concerned
with life quality.
 Long term VS short term: This defines the time horizon of organisation as long term
show the future success or gratification where as short term involves short term success.
 Indulgence VS Restraint: In this indulgence refers to free gratification where as restrain
indicate society gratification of needs.
P6 Determine and articulate the various routes to internationalisation an organisation may adopt,
including key barriers.
There are different ways which provide routes to internationalisation of business. It is
very important for respective company to adopt most effective and accurate route for enhancing
its performance at global market (Fabuš, 2017). These routes has some barriers which needs to
be evaluated carefully. Various routes to internationalisation of organisation is mention below.
Direct exporting: This is considered as one of the most common route for business to
expand its product and services to different market area. This will help in selling product and
services of respective company to new market area. It consist of high risk as company is only
distributing its products to different area.
Joint venture: In joint venture company is comprising its business activities with
different company. In this route company will have to share its profits and loss with other partner
company (Tregear, 2015). All power and rights are distributed equal with other company in joint
venture. This include huge cost for a business.
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CONCLUSION
From the above report it can be concluded that globalisation will have various positive
impact on organisation as it will help in enhancing overall performance of organisation. This will
be very helpful for company to increase its market share as well as expand business operations. It
is very important for a company to manage challenges and issues in effective and efficient
manner so that company can achieve desired goals and objectives. Globalisation will be very
helpful for organisation to increase its market share as well as attract more and more customers
towards business. McKinsey 7S model is very effective tool for company to identify as well as
evaluate various factor which influence business operations. There are different ways which will
affect decision-making making while conducting business operations at global level. It is
significant to determine various routes to internationalisation of organisations.
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REFERENCES
Books and Journals
Smith, P.A. and Cockburn, T., 2013. Dynamic leadership models for global business: Enhancing
digitally connected environments. Business Science Reference.
Wetherly, P., 2014. The business environment: themes and issues in a globalizing world. Oxford
University Press.
Kerr, W. and Perdikis, N., 2014. A guide to the global business environment: the economics of
international commerce. Edward Elgar Publishing.
Black, J.S., Morrison, A.J. and Gregersen, H.B., 2013. Global explorers: The next generation of
leaders. Routledge.
Parhizgar, K.D., 2013. Multicultural behavior and global business environments. Routledge.
Savrul, M., Incekara, A. and Sener, S., 2014. The potential of e-commerce for SMEs in a
globalizing business environment. Procedia-Social and Behavioral Sciences. 150.
pp.35-45.
Salvatore, D., 2015. Managerial economics in a global economy. OUP Catalogue.
Groşanu, A. and et.al., 2015. The influence of country-level governance on business environment
and entrepreneurship: A global perspective. Amfiteatru Economic Journal. 17(38).
pp.60-75.
Pikhart, M., 2017. Managerial communication and its changes in the global intercultural business
world. In SHS Web of Conferences (Vol. 37, p. 01013). EDP Sciences.
Kokodey, T.A., 2013. History of the global business environment in the polycyclic conceptual
framework. Applied Econometrics and International Development. 13(2). pp.5-14.
Kasemsap, K., 2016. The roles of knowledge management and organizational innovation in
global business. In Civil and Environmental Engineering: Concepts, Methodologies,
Tools, and Applications (pp. 1156-1180). IGI Global.
Fabuš, M., 2017. Current development of business environment in Slovakia and Czech Republic.
Tregear, R., 2015. Business process standardization. In Handbook on Business Process
Management 2 (pp. 421-441). Springer, Berlin, Heidelberg.
Aggarwal, R. and Goodell, J.W., 2014. Personal leadership development in international
business.
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