Global Business Environment Analysis: Thermex Ltd Report

This report provides an in-depth analysis of the global business environment, focusing on the key factors driving globalization, such as technological advancements, containerization, economies of scale, and the strategies of multinational companies. It delves into the strategic complexities that businesses face in a global environment, including political, economic, social, environmental, and legal challenges. The report further examines how operating in a global market influences an organization's structure, culture, and functions, referencing the McKinsey 7S model to assess Thermex Ltd's structure, skills, staff, and style within the global business environment. It also explores the impact of globalization on organizational decision-making and strategy, providing a comprehensive overview of the challenges and opportunities in the global market.

GLOBAL BUSINESS
ENVIRONMENT

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
Task 1...............................................................................................................................................3
LO1..................................................................................................................................................3
Key factor which drives globalisation.........................................................................................3
LO2..................................................................................................................................................5
Strategic complexity....................................................................................................................5
TASK 2............................................................................................................................................7
LO 3.................................................................................................................................................7
Operating in global market influences an organization’s structure, culture and functions.........7
LO 4.................................................................................................................................................9
Influence of globalization on organization decision making and strategy..................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Drivers and challenges of globalizations are the drivers which are impacting on the
globalizations of the organization and it is very important for the organisations to understand the
importance of the drivers and the key factors which is affecting and impacting on the global
market (Barac and et.al., 2016). The report will explain the key issues which initiative
globalizations and the strategic complexities which are associated with working in a global
environment. The report further explains the global market influences on organizational
structure, culture and functions.
Task 1
LO1
Key factor which drives globalisation
There are a lot of key factors which influence and drives globalization. globalization is
very important and Thermex limited need to utilize the best of the globalization factors so that
they can work and perform better. key factors which drive globalization are as follows:
1. Technology changes
But a big change of technologies is one of the key factors which is driving globalizations
toward the success. rapid and sustained technology change reduced a lot of costs and the cost of
transmitting and communicating information. technologies are helping a lot do the organisations
so that they can perform better in the global market and provide product and services in the
global market with better facilities and quick (Brenner, 2018). utilization of web technologies are
the new ways in which the globalization is impacted and it is helping as it is a key factor of
behind red by using knowledge product in web technologies.
2. Containerisation
Earlier the shipping which used to cost a lot to the organization but nowadays the cost of
ocean shipping has come down due to the factor of containerization. shipping in bulk and other

efficiencies which are providing a positive effect due to containerization is helping the
globalization factor. The lower the unit of shipping products around the globe, need the global
economy help better prices in the country of manufacture and gets more of the profit from those
in the export market. it also helped in making the market more contestable globally.
3. Economy of scale
Economy of scale refers to the armorial situation of the countries in which the
organizations are working. There are a lot of economist who believed that the increase in the
minimum efficient scale in industries. There are a lot of countries which have their own
transmission Corporation so that they can and hence the economy of the country is very
important for industries to work in the global market to increase the profit and also increase the
economy of the country (Fabus, 2018).
4. Growth strategies of transnational and multinational companies
In the pursuit of income and profit growing there are a lot of organizations and the
companies with different brands are investing significantly in expanding internationally. working
in the international market helps organization in increasing their profit and the brand value and it
is very important for them to expand their business in the global market so that they can provide
their product and service to the different people. it can also help the organization in achieving all
the business objectives and goals. in today's world it is very important to work in the
globalization market an Thermex limited need to work in a globalized market so that they can
utilize the market for better profit.
5. Different in tax system
The desire of corporate to benefit the unit labour cost & lower the unit labour cost
another favourable product factor. every country has their different text system and it is very
important for the organizations to understand that if they want to expand their business in
different countries, they need to work according to the country’s tax system and therefore
indirect investment should be done according to the text policies of the countries in which they
are working.
6. Resources and market

Resources and market other factors which drive the globalization as it is very important
to have all the natural resources including cold, minerals, oil, human resource, gas, water etc it is
very important contribution in globalization and organizations need to understand that resources
are very important to work in a global market and it needs to be done in the proper way. It is very
important for the organizations to maintain all the raw material and all the other resources which
are required in the industry and in global market.
LO2
Strategic complexity
It can be defined as the mean for change is facilitating & the achievement of long-term
goals in competitive pressure, uncertainty and complexity. Strategic complexity operating in
global environment, the business environment is global when they trade across different national
boundaries and removed enable bigger integrations of productions this and operations with the
capital market flow of financial resources. it needs to be understood that a business environment
is global and it is very important for the organizations to understand that to work best it is very
important to make the business global and improve the productivity and profitability in a global
market. here are some of the complexity’s others follow:
• Political complexity
Political complexities referred to the complexities which the organizations and business
face in due to political changes and challenges. When a manager of the organizations plans to
meet long-term goals, they faced different political tasks (Tallman, Luo and Buckley, 2018). due
to uncertainty of the future, they do not know whether in future the political environment will
remain stable. In the long-term benefits of the organizations. the changes in the text policies can
also affect the organization and it is one of the complexities which organization faces in the
globalized market and global environment.
• Economic complexity

It is very hard to predict the Prince of the economic factors. the issue of different
economic policies and the laws made by the countries affect the business. One of the examples
of economic complexities is the Brexit. The implementation of Brexit is affecting a lot of
businesses in the UK. This is one of the reasons by which many organizations and firms are
relocating their headquarters to other countries you do the implementation of Brexit in the United
Kingdom. The changes of the economic laws and policies are affecting their business globally.
• Social and culture complexity
Social And cultural complexities arise from social cultural issues which are due to the
changes in the lifestyle trends of the people and the change of their taste and preference toward
the product and services of the organizations. every country has their different demographic
factors and dictation the preference of consumers according to their religion believe and
corporate social responsibilities awareness. the utilization all social media which is changing the
consumers preference unpredictably with the first information flow on the social medias are
making a huge impact on the organization’s product and services as people are changing their
distant preferences according to the social media trends and policies and it is affecting the
business of the organizations (Shageeva and et.al., 2017).
• Environmental issues
Strategic complexities can arise from different environmental issues due to the increased
awareness of the green operations and sustainable productions. the more the people are getting
aware about environmental issues the more it is increasing in the strategic complexities of
organisations. It is very important for the organizations to understand then were mental issues
and make policies in product and services according to the situations so that they can reduce their
strategic complexities in a global market. environmental issues can affect the overall image of
organization as if the organization doesn’t follow the green issues in the countries where
environmental issues are very important then it can reduce the image of the organization in a
global market.
• Legal complexity

Legal complexity refers to the international trade laws and different laws of different
countries. It is very important for the organisations while working in the global market to
maintain all the legal Lowe’s and trade laws of international markets so that they can work in a
better functional area. it is very important for them to maintain all the necessary work, and
follow all the laws and policies of the countries to work better.
• Complexity of global supply chain
The flow of supplies and then put including material, information and knowledge from
the original suppliers and the producers so that the supply chain can be maintained in the West
trees and can increase the profit and productivity of the organization. it is very important for the
organizations to maintain their global supply chain in the international market so that they can
provide services faster and can provide various type of production services in the market with a
good supply (Kokodey, Gnezdova and Lomachenko, 2018).
• Technologies
The changes in the technologies are one of the major strategic complexities which are
impacting the global market as the rapid change in technologies requires a lot of financial
resources to the organizations and it requires regular changes so that the organization can
maintain the working.
TASK 2
LO 3
Operating in global market influences an organization’s structure, culture and functions
Business in the market have to make certain that there is going to be effective balance of
culture which is being maintained in organization so that there would be good functioning which
would be present. With the help of McKinsey’s 7S model there is going to be higher
understanding of leadership, structure, cultural and functioning of Thermex Ltd in bazaar which
is going to help firm be able to make right decisions in future as well.
 Structure

Thermex Ltd is having a very strong structure for themselves in the market so that there is
going to be an improved wisdom of direction and the company will be able to operate
effectively. There is going to be higher clarity which would be present in all employees making
the company be able to operate successfully in market as well (Cepel and et.al., 2019). Thermex
Ltd will also be able to get an aggressive advantage in bazaar since there is going to be better
planning and decision making which is going to get structure of the firm effective.
 Skills
The productivity and operations of the company will have to be higher because the demands
and expectations of clients in bazaar are also increasing which needs to be coordinated.
Employees are well trained and developed from time to time so that the changes in organization
can come in easily and the quality of the products and services of Thermex Ltd are not going to
get affected. All productivity and processing need different skills therefore hiring the right
employee in the market is very important so that firm will be able to operate well.
 Staff
There have to be talented employees and experienced employees which are required in
Thermex Ltd so that there is going to be superior presentation which is going to be present in the
organization. Hiring right employees is going to make working environment healthier and
improve the decision making of the organization as well as effective and efficient. Employees
are the backbone of Thermex Ltd therefore they have to be strong which is going to help firm be
able to increase satisfaction level and loyalty of the customers in the organization.
 Style
The leaders and managers of Thermex Ltd will have to use the right methods and functioning
so that there is going to be higher functioning which is required. The leaders have to adopt a
style which is going to be appreciated by the entire workforce and that is going to be a great
factor for the organization to have in the market. Leaders have to guide the employees therefore
having a healthy relationship with the workforce is very important for the leaders and that can be
possible when there is a use of right strategy in the market making the company be able to work
successfully (Hooper, 2016).

 Systems
All daily and goals of organization have to be planned effectively so that firm will be able to
operate well and efficiently in market which is a very essential factor for the organization to
have. Monitoring and controlling of the employees by the leaders and manager has to be present
which is going to help company be able to activate efficiently.
 Shared values
Culture of firm must have all the functioning of firm is present so that business will be able
to operate effectively. There have to be same goals and objectives which all the organization
must have in company so that there is going to be higher performance and participation of all the
employees in the task to be completed.
 Strategy
To company needs to build themselves in an international market therefore it is very vital for
the organization to be able to operate effectively by having the right strategy. It is after analyzing
the market the organization will have to plan their strategies accordingly so that the company
will be able to make the right plans and avoid the risks which the company may have to face
while expanding themselves in different markets (Komljenovic, Loiselle and Kumral, 2017).
LO 4
Influence of globalization on organization decision making and strategy
Decision making of an organization changes when the company is having a global
presence since there are a lot of changes in the company. There has to be effective measures
which have to be taken by the company because entering into a new market is difficult since the
company needs to make a lot of investment and need to have the right experience in order to be
able to achieve success in that field (Miftari, 2018).
Key barriers

There would be a lot of barriers which are going to be present and that is departing to
impact the company to be able to compete in market. There are going to be well establishments
which are going to be present in the international market and due to lack of experience the
company will not be able to gain the loyalty of the customers. There is a lot of investment which
the companies will have to make in order to be able to expand themselves in the market which is
going to be beneficial for business to have in market. The culture is going to be different and so
are the beliefs of the employees in other countries which will have to be understood for the better
functioning of the internal factors and that would help the company be able to make the cultural
values and beliefs of the customers also be present in the company which is a great factor
(Okeyo, Gathungu and K’Obonyo, 2016). The export policies and political factors can create a
great barrier for Thermex as well which the company will have to maintain. Licensing and taxes
are going to make the company have to invest further to make sure that their company is being
able to operate successfully and resourcefully in market.
Various Strategies to adopt
There are a lot of strategies which can be used for making sure that company is being
able to operate effectively in bazaar. Business will have to understand the customers and
employees of the country in which the organization is expanding them so that there is going to be
higher implementation and operations which are going to be present in the organization. The
company will have to make sure that there is good functioning and efficiency which is going to
be present in the organization so that business will be able to develop higher competitive
advantage in the market (Chukhray and Mrykhina, 2018). There must be good communication
and control on the employees of organization so that there is going to be good functioning which
would be present and make the organization be able to gain higher competitive advantage in
market which is a very essential issue.
Recommendations
Thermex Ltd will have to make sure that they have right strategy in market so that they
would be able to operate effectively in bazaar. The company is having experience to be able to
expand them which is a huge factor for business to have in market. Company will have to make
sure that they are having the correct decision making so that the company will be able to gain

loyalty and trust of customers in firm so that the brand reputation and value in the market is
going to be present. Business is going to take advantage of the developing countries by
expanding in them which is a great factor for organization to have in the market (Hahn and Kim,
2016). There has to be good global presence of the organization so that there is going to be
higher performance and recital which is going to be present and there is a set standard which the
company is having making the organization be able to increase operations. Standards have to be
well lived up to by business in order to be able to make the loyalty of the customers be present
and feedback of them is going to make firm be able to operate better in bazaar.
CONCLUSION
From report it can be concluded that businesses in bazaar have to have a strong decision
making and planning before making the company be able to take any actions so that there are
going to be lesser risks and the company will be able to operate effectively and smoothly in the
market. The competition in market is high and increasing rapidly as well therefore it is very
important for the organization to make the right decisions in the organization which would make
the company are able to operate successfully and powerfully. There are a lot of barriers and other
factors which can impact the company to be able to operate effectively in the bazaar which have
to be controlled by the organization so that to hand are going to be higher functioning which
would be present of company in international market.

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