Global Business Environment Analysis: Drivers, Impacts, and Challenges

This report provides an in-depth analysis of the global business environment, examining key factors that drive global commerce and trade. It explores the factors that contribute to globalization, such as cost and market dynamics, and assesses the impact of digital technology. The report uses PEST analysis to evaluate political, social, and other factors. It also identifies and discusses several challenges of globalization, including leadership and technological changes, along with strategic challenges such as organizational structure issues. Finally, the report offers recommendations to overcome these challenges, emphasizing the importance of proper power distribution within organizations like CAMECO to improve operational efficiency and decision-making at the international level. The report concludes by highlighting the significance of comprehensive analysis of costs, markets, and competition in achieving global success.

GLOBAL
BUSINESS
ENVIRONMENT
(Task 1, 2)

Table of Content
 Introduction
 Key factors that drives global commerce and trade
 Factors that drive globalisation
 Impact of digital technology upon globalization
 Challenges of globalisation
 Strategic Challenges of globalisation
 Recommendations to overcome this challenges
 Conclusion
 References

Introduction
Globalisation business environment is formed with three
words i.e. global, business, environment. Global refers to
working outside the geographical region. Business refers to
the activity where goods and services are performed in
order to exchange in lieu of money.

Key factors that drives global commerce
and trade
Global business environment refers to the business entity
which is relevant to make strategies according to external
market. It is important and signifiant to analyse changes
according to external business. There are many elements
which has to be considered by managers of association in
order to gain good image at international level.

Factors that drive globalisation
Cost: Cost is the amount which is required to ready services
for consumers. As “CAMECO” is dealing is providing
Uranium fuel which is used for the purpose of generating
base role electricity.
Market- Market is the platform where buyer and sellers
meets with each other. While expanding business of
“CAMECO” at international level, there must be planning
related to market analysis i.e. to analyse cost approach.

Contd....
Environment: Environment refers to the component which are
related to business environment. In environment there are
different components such as competitors, suppliers,
consumers, employees, etc.
Competition- Competition is one of the major factor which
affects business operations at international level. It is important
and significant to alter business policies which according to
competitor's policies.

Impact of digital technology upon
globalization
Digital technology refers to use of
digital technique to transform
manual work with computer.
These days, there is more us of
social media, artificial intelligence,
etc. for performing business
operations. There is ease in
conducting operations according
to change in plans and policies.

PEST Analysis
Political factors- Political factors refers to the roles of
political parties in an organisation while running business at
international level. Political policies, laws, etc. are considered
under this concept. While expanding business at international
level, local political parties plays important and crucial role.

Contd....
Social factors- Social factor refers difference in
demographics, gender, traditions, core values, etc. of
consumers as per change in geographical region. “CAMECO”
has to analyse social factor when they are thinking to expand
business in different regions.

Challenges of globalisation
Leadership- Leadership is most important component
which has to be considered by managers of
“CAMECO” which helps to perform business
operations in effective and reliable manner.
Technology- Technological changes are taking place with
rapid speed, such as there is use of social media sites,
online advertisement, etc.

Strategic challenges of globalisation
Organisational structure- Organisational structure refers to
the framework under which whole organisation is
working. There is issue in organisational structure of
“CAMECO” which refers to improper working style
because of irregular distribution of power. Fr instance: At
international level, it is not possible to make decisions by
asking with top level personnel so it affects working style
of workers.

Recommendations to overcome this
challenges
There must be proper distribution of power among
employees of “CAMECO”, so they can perform assigned
roles and responsibilities in effective and efficient
manner. In case some actions are taken buy employees,
then they are responsible for outcomes. This creates
awareness among employees and they perform activities
in reliable and authentic manner.