Global Business Environment: Challenges and Strategies for CM Downtown

This report analyzes the global business environment, focusing on CM Downtown Limited, a logistics company. It explores key drivers of global trade, including cost, competition, market dynamics, and environmental factors. The report identifies challenges faced by organizations in a global context, such as regulatory hurdles, political risks, social factors, and market competition. It evaluates the impact of globalization on organizational structure, culture, leadership, and governance, including the implementation of Hofstede's cultural dimensions model. Furthermore, the report assesses the influence of ethical and sustainable globalization on organizational functions. Finally, it examines effective decision-making methods and strategies for business internalization, including key barriers. The report provides a comprehensive overview of the global business environment and its implications for CM Downtown Limited.

GLOBAL BUSINESS
ENVIRONMENT

Contents
INTRODUCTION...........................................................................................................................5
TASK 1............................................................................................................................................5
P1 Key aspects that drives on global trade activities.............................................................5
TASK 2............................................................................................................................................6
P2 Challenges faced by organisation at time of operating their business in global business
environment............................................................................................................................6
TASK 3............................................................................................................................................8
P3 Evaluation of globalisation on organisation structure, culture, leadership and governance
................................................................................................................................................8
P4 Evaluation the influence of ethical and sustainable globalisation on organisational function
................................................................................................................................................9
TASK 4..........................................................................................................................................11
P5 Methods of decision-making that work effectively for company at global level............11
P6 Routes to internalise the business including key barrier.................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Global business environment consist several aspects by which home or internal
department of a company is impacted. It concerns all external forces that surround business
houses and influence on decisions and operations of management. The main motive to
understand global business environment is to deal with social, political, economic and other
forces that are beyond the control of organisation (Adekola and Sergi, 2016). This selected
organisation for this report is CM downtown limited that performs its business in Logistic which
is owned and managed by a business. Further, this report highlights on key factors that drive on
global trade activities and it also focus on strategic challenges faced by organisation to operate
business in global business environment. Influence of globalisation on organisational
governance, structure, leadership and functions will also be covered in this report. In the last,
different ways by which decision making perform their work in effective manner is also covered
in upcoming report.
TASK 1
P1 Key aspects that drives on global trade activities
Globalisation is a broad concept by which an organisation is performing their work beyond
its local boundaries. It also determines that company must perform its all task as per laws of
country in which organisation is managing their business. Cost, competition, market and
environment are some aspects by which operations and functions of an organisation are
impacted. So the management of CM downtown limited focuses on all this aspects to retain in
global market.
Cost- Cost, price and monetary value of a product are the most crucial aspects for an
organisation that is operating its operations outside their origin country. It refers that economy of
each country is different from each other so cost of services and products is also impacted. In
context of CM Downtown limited management concern that actual cost of company operations
must be decrease. Therefore, company invest and manage right amount equal amount of cost for
performing all operations with cost effective approach (Deresky, 2014). Like, CM downtown
enter into market of new country through managing its fixed and variable cost due to which its
operations are performed in effective manner.

Environmental- Environment of an organisation consist all those aspects by which a
business is surrounded. In present scenario, globalisation creates more complexity in
environment. This determines organisations which are performing their work at international
level are directly impacted due to changes in international environment. CM downtown limited
performs all work as per environment laws in order to maintain goodwill of organisation among
market. Along with this it also helps companies to perform all tasks as per ethical and legal
considerations that also lead management to gain competitive edge in market (Evangelista,
Colicchia and Creazza, 2017). From perspective of CM downtown limited environmental
conditions is also leading company to perform all work in effective manner.
Market- Market refers to perform all work at a common place in order to meet with buyer
and seller to exchange within products, services and financial value. According to present market
scenario, the current market of each nation and industry is performing their work at globalisation
level. So it is mandatory for management of CM Downtown limited to formulate their strategy as
per international market. It also leads organisation to gain competitive edge in market by
formulating strategy according to market and environment conditions. It is also leading
organisation to gain top position against its rivals by performing its task in a wide market.
Competition- As per current market scenario, competition among industries is one of the
crucial factor because it directly on sale of products. Logistic industry as well as companies
performs their work at global level as they are responsible to transfer goods and other essential
products within different countries. It also refers that there are large number of organisation are
performing their work within similar industry so CM downtown limited implements flexibility,
commitment and agility in all of its functions (Guay, 2014). This result it is easy for company to
gain competitive edge in market.
TASK 2
P2 Challenges faced by organisation at time of operating their business in global business
environment
Global business performs all of its work by follow of all rules and regulations that
enhances company market area. This also refers that globalisation is offering benefits and
opportunities to all organisation at a global level. Example- to enter into new market that leads
company for completion of task as per considerations of rule that increases market size of

company by approaching new customer. In the present scenario, skilled and potential workforce
of CM downtown limited leads company to complete its task in effective manner. Some of the
dis-advantages which are faced by organisation due to changes in company are mention as
follow:
Rules and regulations- all countries develop a set of rules and regulations that protect
interest of local companies. CM downtown performs its functions and operations majorly inside
UK premises so it is easy for company to manage their operations in effective manner. But as per
concern of company management is now focused to manage its operations in other countries. So
it is essential for company to follow rules of a particular country in effective manner (Hakanen,
Helander and Valkokari, 2017). Example- logistic company manage all of it task as per state and
country law as main concern of organisation is to transfer products between two different places.
Moreover, rules and regulations of company also lead management to gain sustainability in
market.
Political risk- Ruling government of each country formulates laws related which are
developed with motive of providing flexibility to companies in order to complete all task
appropriately. CM Downtown limited performs all functions as per policy, strategies and
methods decided by government. So it is easy for company to manage their work according to
global environment through understanding political aspects of each country. Example- Brexit
impacts on rules and regulations of country but by monitoring company policies it is easy for
management to manage all functions properly as per under political considerations.
Social factor- In an organisation individual belongs to different background are engage in
operations for accomplishing goals and objectives. Similarly, residents of a country also follow
different culture, value and background so it is essential for company to complete their work by
coordinating between organisational functions and society culture due to which all task are
performed by company within positive manner. The main concern for social factor is to design
task of company according to society perspective in order to develop healthy relations with local
stakeholders. Example- CM Downtown limited provides employment opportunities to perform
all work in effective manner that leads to increase goodwill of company in market.
Monopoly market- As per current market situation it is complex for companies to gain
top position of single seller in market (Kasemsap, 2016). CM Downtown limited is able to gain
more advantages due to its commitment and ability in all programs. This result it is easy for

management to expand their market area. Along with this management of CM downtown limited
perform all work as per management considerations that lead company to gain competitive edge
in market. So with implement of strategies in organised manner it is easy for company to deal
with monopoly situation in market. Example- With implement of flexible rules, regulation and
management CM downtown limited easily enter into new market to perform its operations
effectively.
TASK 3
P3 Evaluation of globalisation on organisation structure, culture, leadership and governance
Globalization and corporate administration characterizes different framework related with rules,
strategies, guidelines and some more (Lasserre, 2017). With assistance of this principles and
guidelines the board is playing out its errand to coordinate association endeavors towards
objectives and targets of association. By guiding all jobs towards everyday activities all errand
are finished inside sorted out way that leads organization to increase wanted outcomes (Lewis,
2019).
Leadership- Initiative Pioneer, director, predominant and other top specialists assumes a
fundamental job in association which leads organization to increase top situation in advertise.
Cm Downtown is a family claimed business so they are answerable for actualizing every
inspirational hypothesis which help execution of representatives by satisfying their needs and
needs. Number of tasks to hold in showcase is additionally expanded because of globalization
perspective. In this manner, to manage hierarchical changes pioneers likewise guarantee that its
structure is very much produced for going into global market. Like, to impact representatives
towards new structure pioneers of CM Downtown receives vote based initiative style from
dictatorial to deal with their activities in suitable way.
Culture- There are various task as well as operations are managed and performed by
organisation that are directed towards accomplishment of work as per culture. CW downtown
manages and completes its task as well according to culture of organisation. This result it is easy
for management to increase productivity through performing all work according to
transformational leadership (Laudon and Traver, 2016). Along with this company also focus on
to complete their work according to geographical area so it is easy for management to gain

sustainability in market. As management perform all work according to needs of society and
culture trends.
Governance- With viable administration or governance an association accomplish their
objectives by keeping up steadiness in advertise. Inside setting of individual association long
haul just as transient objectives are overseen by organization with dealing with its activities
according to the executives and its groups. Administration likewise play out a fundamental job in
settling on compelling choice for association by assessing arrangements that are structured with
intention of increasing top situation in serious market. Further, by follow of all enactment
Downtown is going into new just as current market to play out their activities according to
nearby society, worth and morals of a nation.
Functions- The fundamental capacity of an association is to finished their work with
appropriate transportation of administrations. From the point of view CM Downtown association
is performing various jobs that lead the board to grow their business at worldwide level. It
likewise confirms that association is driving new and imaginative business to play out all
undertaking inside legitimate way (Rowell, 2017). This additionally verifies organization deal
with their completed items by utilizing creative items to play out their work by dealing with its
objectives and targets. It is additionally overseen by driving association to oversee and finish all
assignment and activities to impact all capacities that creates laws and enactments according to
capacities.
Hofstede’s culture model
CM Downtown limited is focused to expand their business in other areas so to monitor
the aspects of macro environment Hofstede model is implemented which is mention as follow:
Power distance index- It refers to those degree that exists and accept within people and without
power. CM Downtown Limited utilise PDI index to enter into developing countries by
centralising the organisation.
Individualism versus collectivism- This refers to the strength that ties persons with each other
and also in community. CM Downtown develop high IDV score as it helps management to
generates more responsible action in operations that leads to make positive results.
Masculinity versus femininity- According to masculinity it refer to those roles that are
performed by men and femininity determines roles that performed by women. In context of CM

Downtown limited manage its business with engagement of both employees in order to gain
huge success in market.
Uncertainty avoidance index- This dimension describe how individuals manage with anxiety at
the time of work. CM Downtown limited must focus that individuals are clear, concise and
straight about their work because it helps employees to perform work with more creativity.
Long versus short term orientation- It refers to all dimensions that describe time horizon of
individuals and society. From the perspective of selected organisation top authorities are
attracted towards short term countries as they perform work with implement of principles and
value in operations that help to generates positive results.
Indulgence versus restraint- This refers the countries with high IVR score encourage and allow
all individuals to perform their task with own drives and emotions. Therefore, citizens and
employees are more motivated to complete their operations accurately.
P4 Evaluation the influence of ethical and sustainable globalisation on organisational function
Ethical globalisation works as the integration of society, economic, culture, trends etc. by
which organisation perform their work at global level. It works as a positive manner that leads
company to implement value and ethics in all functions of organisation. Along with this
organisation also influence all stakeholders by enhancing company image at global level.
Sustainable organisation also works as a systematic process which is relates with
development and success of company. In context of CM downtown limited management is
mainly concerned to expand the business size of company at international level. Moreover, by
increasing number of operations and market size profits for the organisation is also increased.
This result it is for company to gain stable position within market by managing work according
to strategy that leads firm to complete work as per global level (Slack and Brandon-Jones, 2018).
Along with this by implement of right strategy organisation is also able to overcome from
loopholes that impacts business on international level. Moreover, it also increases capability to
perform all tasks at international level by monitoring some below aspects:
Human resources- Employees, individuals or personnel etc. are most important asset for
organisation which leads company to gain top position in market. This also refers that
organisation prefer to select right and potential candidates which leads company to perform work
as per their skills and capabilities. The main concern for CM Downtown limited is to implement

training and development methods due to which organisation manage their work as per ethical
considerations.
Finance- Monetary and financial aspects of the organisation are most important factor for
company that leads company to earn sufficient amount of profits by maintaining budgets. With
management of funds in appropriate manner it is easy for organisation to perform their
operations in organised manner (Slack and Brandon-Jones, 2018). From perspective of CM
downtown management adopt and implement new software system and also recruit professional
person who are trained in finance management easily concern to complete operations at
minimum cost.
Marketing- The term market is a broad concept for CM Downtown limited as it includes
large number of functions such as advertisement and promotion of products, to understand
consumer needs and wants, delivery of products and many more. Along with this management of
CM downtown limited complete all marketing function with motive of gaining sustainability in
organisation functions by satisfying consumer needs and wants in appropriate manner. Along
with this marketing aspects also leading companies to perform their work in organised manner
for gaining long term benefits in market.
In the last, with implement of ethical and sustainable aspects in organisation company is
performing all work as per decision making process of international level. Along with this there
are various issue are also faced by management such as rules and regulations. This refers that
each country follow and develop their own rules so management must follow specific country
rules to perform all task appropriately. On the other side, tax rates in Europe are flexible for
SME but other countries custody more tax. Therefore, it also create challenge for management to
manage business. In the last, exploit of labour rights is the major concern which impact on goals
of company due to high dissatisfaction level of employees. Similarly, by managing task and
operations as per value and ethics it is easy for management to gain top position in market
because all functions are performed with implement of right and ethical decisions.
TASK 4
P5 Methods of decision-making that work effectively for company at global level
Decision making can be defined as a process which assists company to select right,
effective and potential course of action for completing all projects effectively. Top authorities of

CM downtown limited also focus on completion of task and projects in decided time period.
According to present market conditions, CM downtown limited focus on enhancing their
business at international level (Stacey, 2016). So it is easy for management to gain sustainability
in market by performing its work as per market analysis. Some methods through which CW
downtown enforce decision making is as follow:
Command- CM downtown is performing their work, task or project into different nations
by engaging team members to accomplish organisational goals and objectives. Further, it also
helps management to complete task as per feedback or perspective from customers. This result it
is easy for organisation to take right decisions by understanding organisational needs and
accomplish them as per international level. The main motive of command is to make right
decision that reduces risk, uncertainty and issue from organisational operations.
Collaborative- Top authorities such as leader, manager, stakeholder etc. perform a crucial
role in an organisation to make right decision. With right decisions CM Downtown limited is
able to gain long term benefits such as sustainability in market. In order to make final decisions it
is mandatory for an organisation to involve more number of persons to take right decision. Thus,
with effective and accurate decisions it is easy for management to earn more revenues that leads
company to earn more profits from its operations.
Convenience- Responsibility and authority both work as a similar pillar that leads
organisation to hold top position in market. It determines that by delegating right power to right
individual management easily enhances organisational productivity. Cm Downtown limited
expands its business size so convenience works as a positive aspect to make decision within
minimum time period. Moreover, decision making power also leads company to accomplish
company goals and objectives by overcoming from international issue and challenges.
P6 Routes to internalise the business including key barrier
Globalisation and internationalisation are key aspects for an organisation that extend a
company to perform their work beyond national boundaries (Taneja, Sewell and Odom, 2015).
This also refers that business size will increase as company perform business outside the local
market. Further, by adopting globalisation methods it is easy for company to improve economy
of country and profitability of business by performing business with international countries.
Along with this company which trade in international market are interconnected between local
and global market. It results business organisation perform their work into effective manner by