Global Business Environment: Strategic Complexities for Cameco Corp

This report analyzes the global business environment, focusing on the strategic direction of Cameco Corporation, a global energy and chemical company. It begins by exploring the key factors driving globalization, including cost, market, environment, and competition, and then delves into the strategic complexities faced by organizations operating on a global scale. The report examines the influence of globalization on organizational governance, leadership, structure, culture, and functions. It also evaluates the impact of ethical and sustainable globalization on organizational functions. Furthermore, it investigates how globalization influences organizational decision-making and strategy, including different decision-making approaches and various routes to internationalization. The analysis includes a PESTLE analysis of Cameco, providing a comprehensive overview of the macro-environmental factors affecting the company's operations and strategic planning in the global market. The report concludes with recommendations for Cameco to navigate the challenges and leverage the opportunities presented by the global business environment.

Impact and strategic direction
(Global Business
Environment)

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1: The key factors which drive globalisation.............................................................................1
a) Analysis key factors of cost, market, environment and competition.................................1
LO 2: Strategic complexities associated with operating in a global environment...........................3
Introduction to the concept of globalisation...........................................................................3
Driving factors of globalisation..............................................................................................3
Pestle analysis of Cameco......................................................................................................4
Complexity of strategic challenge faced by the enterprise.....................................................5
Recommendations..................................................................................................................5
LO 3: Operating in a global market influences an organisation’s structure, culture and functions 6
a) Evaluate influence of globalisation on organisational governance & leadership, structure,
culture and functions..............................................................................................................6
b) Evaluate influence of ethical and sustainable globalisation on organisational functions. .7
LO 4: Evaluate the influence of globalisation on organisational decision making and strategy.....9
a) Different ways of decision-making that can work effectively in global context...............9
b) Determine and articulate various routes in internationalisation of an organisation to adopt
and include key barriers........................................................................................................10
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Strategic direction consist important role in the business success. In this regard, global
strategy defined in business terms that assist to take strategic guide in globalisation. When
businesses operate in global scale, it increases client base and their traffic from bottom line (Noe,
Hollenbeck and Wright, 2017). Increasing several numbers of customers in a particular company
has an effective way to develop mos. Present study based on Cameco Corporation which is the
world's largest publicly traded for Uranium and electricity products. Furthermore, the company
determined successful operations and functions on concentrate at pricing formula based.
For gaining insight information of the present study, it can be stated that there are several
key factors exists that are drive with globalisation such as cost, market, environment and
competition. Furthermore, it includes complexity of strategic challenges that are faced by the
organisation. Moreover, it considers influences of globalisation on organisational government. In
addition to this it covers various routes to internationalisation of an organisation which adopted
by the business.
LO 1: The key factors which drive globalisation
a) Analysis key factors of cost, market, environment and competition
Globalisation is the process of integration and interaction of people, governments and
companies. The process aid in increasing transfer, expansion of foreign direct investment, and
rising impact of wealth funds. Globalisation has become important in modern era as it supports
acceleration of cross border movements of information, ideas and goods. Further, the process has
become essential part of era as it is leading to integration of economic, political and cultural
factors. Also, it is important for millennials as it supports team work and multi-cultural learning.
Drivers of Globalisation
Communication: Inventions in the area of microprocessors and telecommunications
enabled highly effective computing and communication at a low-cost level. Further, Internet is
the latest technological driver that created global e-business and e-commerce.
Transportation: Increasing trade across borders has boosted the mode of transportation
with the motive of minimizing cost and time of transfer.
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Government Intervention: It denotes in changing political factors like liberalized
trading rules and low tariffs with the motive of allowing FDI. Further, institution of GATT
(General Agreement on Tariffs and Trade) 1947 has opening in privatization in Eastern Europe.
Migration: The factors is driven by demographic and economic forces which reflects
labour migration like free migration of labours across the globe.
However, monopolistic advantage theory is an approach to international business which
helps the firm in determining capability to compete with competitors across the globe. With
increasing globalisation. Implication of theory in Cameco Corporation can assist the firm in
deriving monopolistic advantages to operate subsidiaries across international boundaries with
profits in comparison to local business. In accordance with this approach it is important for the
firm to focus on managing superior’s knowledge of foreign market and deriving economies of
scale via vertical and horizontal FDI.
In order to determine globalisation in Cameco Corporation, it can be stated that there are
several benefits in developed countries ascertained with desired level of effectiveness. In this
consideration, several numbers of factors influence to the business. They are as follows: Cost: Cost is one more element that influence global business in large consideration. In
this regard, it can be stated that across the different areas process of procuring goods,
services and capital determined in several advantages (Kuratko, Hornsby and Hayton,
2015). Cost drivers with increasing globalisation denotes opportunity Cameco
Corporation for building global scale and high product development cost. New Market: In international market, there are several elements exists that influence to
the business environment in large consideration. With this consideration, it can be stated
that companies of all sizes are establishing several operations in foreign areas (Grant,
2016). This new market is a type of expansion provides several advantages which
increase more opportunities for market growth and diversification towards Cameco
Corporation. Environment: Within international areas, there are several functions and operations exist
that influence Cameco Corporation and impacted by many factors included in it. In global
areas, the company facing issues and problems such as natural disasters, population
growth, pollution, etc. (Annarelli and Nonino, 2016). All these aspects create large
impact on functions and operations of the organisation.
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 Competition: With respect to remain competitive, global rivals have intensified
marketing in each areas of the business environment. In this consideration, sustainable
advantages can be successfully gained to deal in worldwide operations and functions.
Hence, Cameco Corporation introduce, upgrade and distribute several products faster
(Epstein, 2018). Competition across international boundaries is supported by strong
interdependences across boundaries, two-way trades and actions of FDI.
In accordance, with the discussion, it can be said that globalisation has led to wide range of
change in business and their services. It offers growth and opportunity on large scale where it is
important for the firm to focus on drivers of globalisation influencing business.
LO 2: Strategic complexities associated with operating in a global
environment
Introduction to the concept of globalisation
Globalisation can be defined as the process through which organisations or businesses
develop international influence or begin to operate on a global scale. It refers to the integration of
markets within the international markets in the global economy, resulting to the enhanced
interconnectedness of national economies. Globalisation is the term which is used to describe
increasing social, economic and political interaction. It also considered interrelationship across
the political and cultural boundaries. Process of globalisation considered advantages and
disadvantages for social, political and economic development. In Cameco Corporation,
globalisation describe way to integrate and interact and make international trade easier.
Driving factors of globalisation
 Digital communication – The internet has dramatically lowered the cost of
communicating and transmitting information. Digital communication has stimulated
global trade in knowledge product for example, outsourced media content and series,
software etc.
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 Low transport cost – Costs of ocean shipping haver come down, due to bulk shopping,
containerisation and other efficiencies. This assists in bringing prices in the country of
producer closer to prices in the export market.
 Higher profit and stronger position as well as market access in global markets.
 Containerisation : With respect to considered cost of ocean shipping, it can be stated that
due to containerisation, bulk shipping and other efficiency it comes down. Lower unit
cost of shipping products in the world successfully develop to bring price in the country
to make markets more contestable.
 Technological change : Rapid and sustained technological changes diminish cost of
transmitting and communicate information. Key factor behind the trade in knowledge
products for using web technology in Cameco Corporation.
 Economies of scale : Many economists believe that there is increase minimum efficient
scale that is associated with some industries. When it is rising, domestic market may be
regarded for satisfy selling needs of industries.
 Differences in tax systems : Desire of the businesses is to beneficial from lower unit
labour cost and other favourable production factors. In this consideration, countries are
encouraged to adjust ex systems that helps to attract foreign direct investment. There are
many nations engaged in tax competition between each other so that lucrative foreign
investment project need to be looked.

Impact of digital technology on globalisation
Development in technology have significantly facilitated globalisation, in fact progress in
technology has been one of the major forces driving globalisation. Technological innovations
force organisations to become global by enhancing the economies of scale and market size
needed to break even. Technological development helps in reducing cost of communication and
transportation across countries, and thereby facilitate global sourcing of raw materials and other
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inputs. Patented technology motivates globalisation as the organisation owning patent can exploit
international or foreign markets without much competition.
 Facilitate to globalisation :Advancement in technology helps to considered facilitates
which determine technological progress in systematic manner. In this regard, Cameco
Corporation can progress with main forces of driving in globalisation. Technological
breakthrough compel to become global and increasing economies of scale.
 Reduce cost of transportation and communication : Furthermore, technological
advancement reduce costs of transportation and communication across the nations and it
is facilitated with global sourcing of raw material and other input. In Cameco Corporation
patented technology helps to encourage globalization so that they can exploit foreign
market without competition.
 Emergence of the global village: Information technology has led with emergence in
global village. Therefore, world wide web reduce barriers of time and place to deal in
business. Buyers and sellers of the chosen business can make transactions to determine
technological changes that affect investment as well.
 Outsourcing labour intensive services : High technology production was limited to
facilitate countries with more wages. This is because, new technology easily transferable
in developing nation. They can easily combine with low wages so that large numbers of
firms deal in advanced for outsourcing labour intensive services.
Pestle analysis of Cameco
PESTLE analysis is strategic tool that considered in macro environment of the business. It is
stand for political, economic, social, technological, environmental and legal factors. They are as
follows:
1. Political factors – Political factors plays a vital role in determining the factors that can
influence Cameco corporation’s long-term profitability in a specific market or country.
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The organisation is operating in metals and minerals industry in various countries and
exposing itself to several types of political environment & risks. These factors include
Risk of military invasion, level of corruption, tax rates, pricing regulations etc. UK is
considered as popular destination as per FDI. The decision of Britain exit from WU
is awaited while made pound weaker and there is an uncertainty of future trade
restrictions.
2. Economic factors – The external environment factors like saving rate, inflation rate,
foreign exchange rate, interest rate determine the aggregate investment and demand in a
particular economy. Cameco corporation can utilise country’s economic factors such as
inflation, growth rate etc in their strategic planning and decision making. Increasing
trade, movement of capital and labour denotes link of two economies with increasing
globalisation. Economic factors also create impact on Cameco Corporation in
consideration of inflation rate, saving rate, interest rate, foreign exchange rate, etc.
Economic cycle determined aggregate demand and investment in particular economy. As
a result, different aspects of economic factors develop more benefits in the nation such as
growth rate, inflation & industry's economic indicators, etc.
3. Social factors - Society’s culture & means of doing things influence the culture of an
association in an environment. Shared attitudes & beliefs of the population play a great
role in how marketers at Cameco Corporation will recognise the customers of a given
market and how they design the marketing message for Industrial Metals & Minerals
industry consumers. The population is getting older as well like In 2016, 18% of people
were aged 65 and over, while 2.4% were aged 85 an over and the increasing segregation
of population group denotes support for different firm with increasing globalization. For
instance, shared belief and attitude of population play great role so that it determined that
how marketers understand customers and their requirements to design marketing
message. As a result, Cameco Corporation considered demographics and skill level of
population, class structure, hierarchy & power structure in society.
4.
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5. Technological factors – Technology is increasingly affecting organisations or business
all around the world, Cameco utilises various technologies that helps to improve
efficiency and effectiveness of the firm. It also helps to design and develop new products
or services to achieve competitive advantages in the market. Technology is fast disrupting
in different industries across the board. Cameco Corporation deals in electricity products
and services so that recent technology development helps to determine different aspects
of the enterprise. In this consideration, it can be stated that rate of technological diffusion
also assists to develop significant advantages in the business.
6. Environmental factors – These factors include climate, change in weather, laws related
to environmental pollution, waste management etc. Cameco needs to consider each
element or factor related to environmental sustainability in order to conduct their business
practices ethically and legally in different countries. Different market consist distinctive
norm so that environmental factors create impact on the business. Environmental
standards can impact on profitability of an organisation. Therefore, Cameco Corporation
need to focus on weather, climate change, laws regulating in environment pollution, etc.
Furthermore, they need to focus on recycling and waste management so that desired level
of efficiency can be successfully develop in the business.
7. Legal factors – In many countries, the legal institutions and framework are not healthy
enough for protecting the intellectual property rights of a company or business. An
organisation such as Cameco needs to evaluate the legal framework carefully before
entering into a new market. The laws that needs to be considered includes Data
protection, employment law, discrimination law etc. Legal factors influence to the
company in term of framework and institutions which robust and protect intellectual
property rights of an enterprise. Therefore, firm need to carefully evaluate before entering
in such markets. Cameco Corporation considered different laws in their business which
helps to protect them in systematic manner. For instance, health and safety law, data
protection, consumer protection law, etc.
8.
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Complexity of strategic challenge faced by the enterprise
Expanding business in different areas of the world is not easy task so that there are
several elements exists that create complexity in the enterprise. In this regard, following are
different challenges occurred at Cameco Corporation, International company structure -In order
to compete globally, international company structure highly influence functions and operations
of the business. In this regard, it can be stated that the chosen business needs to concentrate on
several aspects such as coordination among team members, organisation of structure, etc. (Kim
and Chai, 2017). Hiring in local market also understand culture of target market to work
centrally. Cameco Corporation offers effective multinational structure so that it demonstrates
diverse global presence and products are also controlled centrally. Another challenge faced by
the company is Foreign laws and regulations, Along with getting company structure, it can be
stated that gaining comprehensive understanding towards local laws and regulations also
governing in target market (Cioca, Ivascu and Ionescu, 2015). With this regard, Cameco
Corporation need to considered tax implications with trading laws that navigate legal
requirement with central function for successful international business. Eligibility to trade also
significant consideration so that potential tariffs and legal cost associated with entering into new
market. Another issue for the organisation is International accounting, It is one of the main
legal areas which is considered to come and perform international business. Hence, tax
compliance is perhaps and most crucial. International accounting can be present with challenge
in multinational businesses. Different tax systems, rates and compliance requirements make
accounting function of multinational enterprise and significant challenging (11 Biggest
Challenges of International Business in 2017, 2017). This is because, accounting is key to
maximise revenue in the business. . Last but on the least Cost calculation and global pricing
strategy, Setting pricing is considering products and services which present challenges to do
business and perform several tasks. There are several considerations in strategy to remain
competitive (Welford, 2016). Hence, Cameco Corporation ensuring that profits and revenue will
be successfully generate with researching price of direct, local market competitors. It helps to set
benchmark to gain desired level of results. For instance, it includes cost of production, labour,
shipping, distribution, etc.
Job mobility: It is one of the major challenge in front of the Cameco Corporation. This is
because, global trade system especially dealing in manufacturing jobs which is less developed
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for developing countries. Due to lower skilled workers, the chosen business face manufacturing
of jobs in developed nation.
Western dominance: Furthermore, despite with huge growth in emerging market, capital can be
successfully flow from one country to another. This is because, non-western countries also bring
disaster finance results so that Cameco Corporation focuses on developing world deepens
poverty.
Loss of cultural identity: Moreover, globalisation has made with foreign cultures easier to
access. In this regard, success of certain cultures also served in all over the world so that it
stimulate lifestyle and culture for distinctive features. Hence, Cameco Corporation loss global
diversity.
Job mobility: It is one of the major challenge in front of the Cameco Corporation. This is
because, global trade system especially dealing in manufacturing jobs which is less
developed for developing countries. Due to lower skilled workers, the chosen business face
manufacturing of jobs in developed nation.
Western dominance: Furthermore, despite with huge growth in emerging market, capital can be
successfully flow from one country to another. This is because, non-western countries also
bring disaster finance results so that Cameco Corporation focuses on developing world
deepens poverty.
Loss of cultural identity: Moreover, globalisation has made with foreign cultures easier to
access. In this regard, success of certain cultures also served in all over the world so that it
stimulate lifestyle and culture for distinctive features. Hence, Cameco Corporation loss global
diversity.
Evolving technology :Technology advances also profound impact on different businesses.
Therefore, it considered several key tasks to solve potential problems. Technological advances in
the industry also helps to gain competitive advantages so that it helps to increase online
effectiveness.
Delaying partnering with employees : In order to consider long term goals, relationship can be
identify to create adverse relations to lead with disputes. As a result, it is recognised to seeking
mutually which increase several options to achieve shared goals.
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