Strategic Expansion Routes: Global Business Environment - Mr. Bigg's

This report provides an analysis of the global business environment in relation to Mr. Bigg's, a fast-food restaurant chain. It begins with an introduction to globalization and its impact on businesses, followed by an examination of the McKinsey 7S model, evaluating how global operations influence organizational functions and culture. The report further explores Hofstede’s dimensions of culture, ethical and sustainable factors in global markets, and their impact on decision-making. It also evaluates a range of strategic expansion routes for Mr. Bigg's, emphasizing the importance of choosing the right partner and adapting clear product and service strategies to succeed in global markets. The report concludes by highlighting the need for companies to blend seamlessly into global markets while maintaining ethical practices and sustainability.

Global business
environment.

TABLE OF CONTENT
Introduction......................................................................................................................................4
Main body........................................................................................................................................4
McKinsey 7 S model.................................................................................................................4
Evaluation of the above given factors are influenced by global operations and how
organisation has adopted to operating in global markets..........................................................6
Hofstede’s dimensions of culture..............................................................................................6
Evaluation of ethical and sustainable factors to be considered in global markets and its
impact on decision making.......................................................................................................8
Evaluation of range of strategic expansion route......................................................................8
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

Introduction
Globalization refers to the inter-dependency of economies, population and culture which create s
a need of cross border trade of good, technology, services, people, information and flow of
investment. Globalization helps business in capturing markets of other countries and sell their
products in different market where they can find potential buyers (Viswanadham., 2018). It
provides greater opportunities to people and businesses to have reach to their potential customers
and to increase their customer base with the help of their quality products and services. It is
important for the companies to make sure that they are able to attract customers and are
providing best in class services and products to their customers in order to retain those
customers. In context to MR Bigg’s, it is a fast food restaurants in Nigeria who are headquartered
in Ojo, Lagos State. The company was founded in the year 1973 and is now owned by Nigerian
conglomerate United African Company. The company is currently having its presence in more
than 170 locations including Ghana . In this report, a brief introduction about globalization is
provided along with the external factors which can impact it. The report also covers the impact
of globalization and its key drivers along with different challenges of globalization. The report
will cover, the influence of global market on functions and culture of organization along with
organizational decision making and strategy.
Main body
McKinsey 7 S model
The McKinsey 7 S model was developed in the late 1970’s by Robert Waterman and Tom
Peters. They both were the former consultants of McKinsey & company. The framework
identifies the seven most important elements within an organization that are needed to be aligned
in order by the company in order to achieve goals and objectives. The seven elements of the
framework is given below:
 Strategy: It is extremely important for the company to make sure that they are having
proper strategies about how they are planning for the future. Certain decisions have to be
made within an organization which requires proper planning and implementation. Strategy
will help the company in taking decisions proactively according to the dynamic situations of
the market and will also help the company in getting competitors advantage in the market.
Strategy will help the company in moving towards the direction through which they can

achieve their goals and objectives. In context to Mr. Bigg’s , the company needs to make
strategies according to the markets of UK and according to the needs and preferences of the
customers of that market (Gabryelczyk and Roztocki., 2018). It will help the company in
capturing the market and will make sure that the company is able to provide effective
Products and services to their customers.
 Structure: It refers to the organizational structure of the company. It provides information
about the setup of different departments within the organization. Structure with help the
company in delegating the authority and responsibility within different departments
effectively and efficiently. In case of Mr Biggs, The company is focusing more on global
operations so that they can enhance the brand awareness of the company. The company has
also divided their operations into four different segments which will help the company in
analyzing the growth and market leads better.
 System: due to the global operations of the business, the systems that are considered in this
factors are finance, IT, recruitment and selection, etc (Beumer and et. al., 2018). The system
according to Mr Bigg’s is day to day acclivities which helps the workers in serving their
customers and will make sure that the customers are happy with the services of the
company.
 Skills: it refers to the skills and abilities of the workforce of the company. It is important for
the company to have a talented workforce as they will help the company in providing best in
class services to their customers. In Mr Biggs, the company makes sure that they are
providing effective training and development opportunities to their workforce which will
help them in enhancing their skills and performance.
 Style: it refers to the style of leadership that has been adopted by the leaders of the
company. It is important to understand that the leadership styles must be taken in to
consideration according to the operations of the company (Milkau., 2019). In Mr Bigg’s,
participative leadership style is adopted by the management of the company.
 Staff: the employees of the company are highly competent and are highly loyal towards the
workings of the company (Grillitsch, Rekers and Tödtling., 2019). As the company is also
providing exceptional benefits to them the employee turnovers rates of the company is very
less which is actually good for the reputation of the company.

 Shared values: it refers to the superordinate goals of the company which means the core
values of the company that they reflect in their day to day workings. It can also be related to
the work ethics of the company which they follow. In case of Mr Bigg’s, the company is
actually working according to the goals and objectives of the company which is to serve best
in class services ad products to the customers and to create a positive and healthy working
environment for the employees of the company.
Evaluation of the above given factors are influenced by global operations and how organisation
has adopted to operating in global markets
The company has effectively adopted to the operations of the global markets. The
company is also adopting changes effectively with the increase in the reach to the company. The
company is making sure that their motive of serving best to their customers is getting fulfilled
(Gruenhagen and Parker., 2020). It is important for the company to blend seamlessly in the
global markets so that they can attract potential customers and can also be able to have a loyal
customer base. The strategy of the company is working in the favor of the company which is
helping them in working according to the markets of the company.
Along with that the structure of the company is helping them in delegating the
responsibilities and authorities effectively, also the structure of the company is divided into four
segments which is helping the company in keeping a close check on the growth of the company.
Along with that the element of skills ad staff is highly supporting the workings of the company
as the staff of the company is highly skilled and is helping the company in attracting customers.
The company is also providing training to their employees so that they can develop skills
essential for that particular market segment.
The style of the company is according to the global markets as the company is following
a set style of leadership which is participative which helps the company in including new ideas in
their decision making process and will also help the company in creating effective teams. The
shared value of the company is to provide best in class services to their customers and provide
them their value for their money (Woods., 2019). The company is following only ethical policies
which can help them in enhancing their reputation and will also make sure that the customers are
satisfied with the performance and workings of the company.

Hofstede’s dimensions of culture
 Power distance: It refers to the degree up to which the society rejects and accept unequal
distribution of power within the organisation. In high power distance, the company provide
high level of respect to age, status and titles whereas in low power index the company does
not provide much formal attitude and follow informal style of working. In case of UK, the
organization follow informal style of structure and has low power index.
 Uncertainty avoidance: It refers to the level up to which the government is uncomfortable
with risk or change (Spigarelli and et. al., 2019). In case of high uncertainty avoidance
index, they prefer predictability and try to avoid uncertainty. In case of UK, the companies
have a culture to take risk which refers to low uncertainty avoidance index.
 Individualism and collectivism: It refers to the degree up to which the society put emphasis
on individual accomplishments as compared to the accomplishments of groups. In case of
UK, the country and the society is highly focused on individual accomplishments and
interests. The country and society are highly competitive and like to put additional efforts for
individual accomplishments.
 Masculinity and femininity: it refers to the level up to which the society is putting value on
assertiveness and materialism as compared to feelings, relationship as well as quality of life
(Amah, Amah and Barlow, 2019). It can also be refers to as the tendency within the
organization to provide gender specific roles which can also be considered as biased. In
context to UK, the companies make sure that they are not following any gender specific
roles and responsibilities whereas they put more emphasis on materialistic things.
 Short term vs long term orientation: in short term orientation the company focuses on
their short term goals and believes in short term success and gratifications whereas in long
term orientation where the company focuses on their long term goals and try to avoid any
short term success and gratification in order to achieve their long term success. In case of
UK, the company is highly focused on long term orientation and try to focus on their long
term goals rather than short term success.
 Restraint vs indulgence: it refers to the degree up to which the society can control their
desires ad impulses. Indulgence indicates that the society is relatively lives free and believes
in enjoying life as well as having fun. On the other hand, restraining factors tells that the

society suppresses gratification and try live life through social norms. In case of UK, the
society generally tends to believe in indulgence and life a carefree as well as fun life.
Evaluation of ethical and sustainable factors to be considered in global markets and its impact on
decision making
The ethical factors that are needed to be considered by the company is first of all the
safety of food. It is important for the company to provide safe and fresh food to their customers.
The company must make sue that the food they are providing to their customers are not
contaminated which can have an impact on their health (Ojo and Ojewale., 2019). On the other
hand the sustainability factor which is needed to be considered by the company is to make sure
that they are avoiding plastics and its wastage which can cause harm to the environment. The
company must make sure that they are using recyclable material and are encouraging
sustainability in he market.
Evaluation of range of strategic expansion routes
The best 5 ways in which the company can opt for strategic global expansion are given below:
 Pick up the right partner: before entering any new market it is important for the
companies to find an experienced partner which can help them in gaining insights about the
market and will also make sure that the company is not facing any issue related to the laws
and regulations of the market (Marques and et. al., 2020). It will help the company in
gaining the advantage of the existing customer segment of the partnered company.
 Adapt a clear strategy for products and services: the company must make sure that they
are adapting a clear and specific products as well as services so that they can get clarity in
there workings. If the company is unable to find clarity then the systems of the company will
work on vague instructions which can have a direct impact on the workings of the company
as well as the services that the company is providing to their customer. It is important for the
company to make sure that their products and services are working according to the needs
and preferences of the customers of the company.
 Think proactively: it is important for the company to keep each and every aspect of the
market in to consideration. It will hep the company in taking quick decisions and will also
help the company in thinking proactively so that they can avoid uncertainties and
contingencies (Vhumbunu., 2019). It is important for the company to make sure that they are

analyzing all the external as well as internal factors beforehand so that they will be able to
deal with the changes and the dynamic environment of the market as well as industry.
 Reinvest in the business: the company must look the gains from expansion as an
opportunity to reinvest. It is important for the companies to make sure that they are working
according to the goals and objectives of the organization and are reinvesting their money in
order to have mote growth in the market as well as in the business (Hill and et. al., 2021). It
will help the company in enhancing their profitability as well as growth in the market as they
will be able to invest more money in the technological advancement which will help the
company in enhancing their products and services in a better way and will also make sure
that the company is able to work according to the expectations of the customers.
 Go lean in new markets: lean business approach offers the flexibility to Fast Fail. The
company must quickly learn what works and what doesn't work in the market. It is important
for the company to grab opportunities after entering the market as it will help the company
in making sure that they are working according to the market (Lourenço and Pinto., 2019). It
will also facilitate quick decision making in the organization and will help the company in
capturing the market fast with the help of their quality of products and services as well as
with the help of understanding about the market.
 By following these five expansion strategies the company will be able to survive effectively
in he market ad will also be able to capture the market with the help of its large customers
base.


Conclusion
From the above report it is concluded that, it is important for the companies to make sure that
their internal as well as external management is proper and according to the society or country in
which they are going to enter. It is important for the companies to take small changes in to
consideration so that their management can work according to the environment of the society. In
order to survive it is important for the companies to make sure that they are able to attract
customers and are able to understand the needs and demands of the customers. It will help the
company in attracting potential customers and will make sure that the company is having a loyal
customer base. In order to understand the society of UK, a Hofstede model is provided in the
above report along with McKinsey 7S Model which will help in understanding the internal
aspects of the company.

References
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