Global Business Environment Report: Entertainer Case Study Analysis

This report provides a comprehensive analysis of the global business environment, focusing on the key elements driving global commerce and trade, including cost, market conditions, environmental factors, and competition. It explores the strategic challenges faced by organizations operating in a global environment, such as customer expectations, cost management, and the impact of different cultures and economic conditions. The report examines the effects of globalization on organizational governance, leadership, structure, culture, and functions, as well as the ethical and sustainable aspects of globalization. It also discusses various decision-making processes in a global context and explores different routes to internationalization, including potential barriers. The report uses a case study of a UK-based toy manufacturing firm, Entertainer, to illustrate these concepts and provide practical insights into the challenges and opportunities of global business expansion. It covers aspects such as market segmentation, customer needs, and the importance of adapting to local market conditions.

Global Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key elements of cost, market, environment and competition that drive global commerce
and trade.................................................................................................................................1
TASK 2............................................................................................................................................3
P2 Complexness of strategic challenges faced by organisation while operating in global
environment............................................................................................................................3
TASK 3............................................................................................................................................5
P3 Cause of globalisation on organisational governance and leadership, structure, culture and
functions.................................................................................................................................5
P4 Effects of ethical and sustainable globalisation on organisational functions....................6
TASK 4............................................................................................................................................7
P5 Various ways through which decision making can work effectively in global context....7
P6 Assorted routes to internationalisation which can adopt by organisation, including key
barriers ...................................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Global market refers to an area where many companies of different sectors are used to
sell their products at national and international level. In context with global business
environment, it shows factors which impact on operational function of organisation. It includes
political, economical, ecological, global warming, rapid growth of population and more. All
these elements assist industries to cope up with market changes and do modifications in business
structure accordingly (Apăvăloaie, 2014). Therefore, business tycoons who want to move
organisation at global level need to analyse concept of these factors which affect the ratios of
profit and production. In this report, a manufacturing firm of UK has been taken named by
Entertainer. This SME association deals its business in making toys at a UK marketplace. At
present, it wants to expand business in international market. Therefore, in this regard, various
factors are being discussed and the present report includes drivers for global trade and
commerce, complexity for strategic challenges and more.
TASK 1
P1 Key elements of cost, market, environment and competition that drive global commerce and
trade
Today almost every organisation whether dealing in manufacturing or retailing sector
wants to expand operational area in other countries also. This would help in selling commodities
at international market easily which gives much profitability as compared to domestic area.
However, moving business in other locations especially out of territorial region is not an easy
task. Employers need to analyse on various factors which may create hurdle in their mission in a
proper way (Epifanova and et. al., 2015.). It includes market condition of such places,
economical situations, urbanisation and more. These factors create a large impact on brand value
along with profit ratios of business both in negative and positive manner. In context with
Entertainer, they want to set up its foot in new locations across country in UK. It is a
manufacturing firm which produces toys. Therefore, it is necessary for the manager of this
company to analyse market situation of target places and other factors which may wide up its
business scale in a profitable way. Some factors are described below which need to be
considered by management of those companies who want to globalise their business:
1

Cost: It is the most important factor of an organisation whose impact is on every part of
business. Therefore, managers of firms always try to raise funds from various sources through
which they can operate functions of business in a proper manner. In context with globalisation, it
is compulsory for enterprises to find every component which may help in deceasing expenditure
of cost related to manufacture (Doh, McGuire and Ozaki, 2015). Along with this, they should
evaluate economic condition of country through which purchasing power of people can be
measured. This would help in determining whether opening outlets in targeted locations is
beneficial and increase profitability or not. In addition to this, managers are required to measure
availability of resources like raw materials, manpower, transportation cost and more along with
cost at which they are available. Getting all these things in low cost help in reducing
manufacturing expenditure which aids them in getting more profitability.
Market: It is highly amendable for management of a company to analyse situation and
various component of market which will help in formulating strategies accordingly. This is
highly essential for those companies who want to enter into new market area of foreign
countries. Factors present at marketplace which impact on profitability and productivity of
operational business of a company in both positive and negative manner are culture, purchasing
power, taste of customers etc. Therefore, in order to open outlets at new places of international
market, the management must identify culture of people first. As culture reflects taste of
customers, preference and lifestyle of them. In context with Entertainer, this firm deals in toy
manufacturing industry so, its managers are needed to evaluate demand of customers and
manufacture toys as per requirement (Axelrod and VanDeveer, 2014). This firm should made
products according to age group. For this process, managers should introduce latest technologies
in organisational system so that best quality of such products can be obtained. In addition to this,
they must purchase high quality of materials used in manufacturing of toys like fabrics,
polyolefins, ploymers, plastic and more.
Environment: Today with rapid changes in technologies, many factors have arisen which
create a great impact on environment. Usage of harmful chemicals, non-biodegradable
substances like polyethene, nylon and other products made by hydrocarbons and plastic effect
environment. Therefore, manufacturing companies are highly advisable to use biodegradable
components in products so that environment can be protected from harmful factors.
Nevertheless, in context with Entertainer, it produces toys which are mainly made up of non-
2

biodegradable and hazardous elements (Belás and et. al., 2014). Thus, management is required to
use highly technical instruments in workplace which are helpful in decomposing wastages and
other harmful substances. This will help in enhancing production of company as well as
increasing brand value at marketplace also.
Competition: In this type of factor, management of association are mainly considered
upon acquiring highest position at marketplace. Along with this, expanding business is their most
admirable objectives. Therefore, in order to gain such objectives and goals, companies are
needed to globalise their business. It will help them in gaining high profitability as well as
increasing market share also. In case of Entertainer, a manager of this firm has performed
various activities in order to achieve aims. They had introduced latest technologies in business
structure and provide essential training to employees for working on new system. In addition to
this, for enhancing competition at marketplace, administrators formulate various strategies and
policies to attract minds of customers towards its products in a unique way. Furthermore, for
building effective strategies they must analyse productivity of competitors also. As increasing
competition impacts on the business of Entertainer, so this firm needs to create some
modification in production and manufacture innovative products (Belás and et. al., 2015). This
would aid in attracting minds of customers as well as retain them with longer period of time.
TASK 2
P2 Complexness of strategic challenges faced by organisation while operating in global
environment
Moving business in other countries always proves beneficial for increasing sales
performance of a company. It will help in getting high revenue as well as increasing profitability
of organisations. But before globalising business, it is essential for associations to bring
improvisation in structure and production. Managers are needed to analyse trends of marketplace
along with needs of customers. Through this, they can formulate effective strategies and policies
accordingly which are favourable to gain high achievement of business. In case of globalisation,
associated members of firms are needed to identify desires of national and international clients
and manufacture products as per their choice (Carneiro and Brenes, 2014). Therefore,
management of Entertainer used to create segmentation of marketplace in context with similar
characteristics. This would aid them in determining needs of each segment and culture of them.
3

Through this segmentation, demands of each group can be completed on time which will assist in
gaining retention of them with products or services in an appropriate way.
While operating business at global level, there are various strategical challenges faced by
organisation at international level. It includes different culture of customers, economical
conditions of targeted countries where they want to expand business, taxation policies, political
rules and more. Therefore, such companies are needed to create modification in business and
organisational structure through which they can manufacture high qualitative and wide range of
products as well. This will help in providing good impressive commodities to customers which
retain them firm for longer period of time (Crane and Matten, 2016). In case of Entertainer, its
managers have used various kinds of strategies which are implemented for utilising its resources
its resources which aid in manufacturing products at low cost. Along with this, they build
strategies for delivering products at marketplace in a proper manner and provide facilities like
home delivery and currency exchange. In addition to this, they provide various attractive offers
and discounts to customers so that interest of them in its products can be kept for a longer period
of time. Hence, some of the main issues faced by Entertainer Company in globalising are
described as:-
Customer expectations: In order to sale commodities at international marketplace, it is
essential for management of Entertainer to determine needs of clients belongs to different
culture. After identification, they should manufacture good quality of products as well as deliver
them on affordable cost as well as on less time of duration. After then get their feedback to
measure effectiveness of product's quality. Along with this, make proper interaction with
customers of different locations who have consumed such commodities in order to know whether
their products are manufactures as per expectations or not (Peng, 2016). Through this process,
they can evaluate further needs of improvement. Therefore, in order to sales its commodities in
more profitable way, management of this company has targeted mostly children of group of 3 to
15 years. For attracting minds of kids, its management used to make toys of organic materials
which are better than products of harmful toxic materials.
Cost: Since operating business at global level is a long procedure which includes lot of
documentation process, planning and operational activities. Therefore, to perform each activity
in a proper manner and open outlets in foreign countries, a company needs lot of capital. So, lack
of capital creates various kind of issues and barriers in conducting activities. Along with this, if
4

cost of production is high then companies should sell these products at high cost. Due to this,
customers are avoid to purchase toys which are beyond their purchasing power. It will impact on
sales performance as well as profitability of business too. Thus, to cope up with this problem,
managers of Entertainer are required to develop strategies for decreasing down the expenditure
of manufacture.
TASK 3
P3 Cause of globalisation on organisational governance and leadership, structure, culture and
functions
Globalisation is a process of moving a business on international level and establish their
organisation in other countries. Generally, companies try to open their outlets in such territorial
regions where level of economy as well as income of people is high and sustainable. It will help
in increasing sales performance of them. But making business globalise create much impact on
corporate governance, leadership, business structure, culture as well as operational function of
such companies (Savrul, Incekara and Sener, 2014). Organisational governance can be defined as
a process through which environment of business hold its discipline. For controlling operational
activities, functions of enterprises and work of employees, employers set rules and regulations
for each and every kind of action. In case of Entertainer, this firm needs to set policies and rules
which are required to follow by all people which helps in taking better decision. Some other
factors which are affected by globalisation and present within firm can be described as:-
Leadership: In an enterprise, managers and leaders are main the persons who take
various responsibilities in order to manage workforce and entire functions of organisations. They
used to influence workers towards goals and objectives of a company by providing them clear
vision. In addition to this, they also give necessary training to employees if any changes has been
occurred in enterprise. In context with globalisation, due to this functions of managers are
impacted a lot. Due to this, they have to redesign the business structure, set new policies, mission
and vision of business etc. In addition to this, due to changes in set strategies, work of employees
also get disturb and it arise various situation in workplace like resistance of workers, conflict,
labour turnover and more (Kolk, 2016). Therefore, leaders and managers have to change their
managerial skills and adopt new leadership styles. It will help them in resolving such issues and
5

convince employees to work in effective manner so that higher outcomes can be obtained and
demands of international clients can be completed on time.
Structure: Business structure of an enterprise also gets affected due to globalisation.
When firms are establishing business in new place or sell commodities in international markets
then it is needed for them to change organisational culture. In this process, they need to recruit
new employees at workplace of diverse culture who have gained knowledge in how to deal with
national and international clients (Cavusgil and Knight, 2015). Through efforts and contribution
of them, managers can determine needs and demand of clients easily as well as can make good
communication with them. This would aid them to hit up the set objectives in an effective
manner. Along with this, when employees are much skilled and experienced then managers get
advantage to take effective decision as well.
Culture: This factor also get impacted due to globalisation. When new employees are
recruited in workplace having different background then it will arise various problems. It
includes conflicts among employees, therefore, management of organisation needs to make
effective relationship among them. In context with customers, when clients belong from different
culture, religion and area then it creates various problems for employers to understand desires of
each and manufacture products as per their expectations (Wild, Wild and Han, 2014). Therefore,
Entertainer is required to provide a wide range of toys at marketplace as per need of customers
by considering their culture most. It would help in enhancing sales performance and increasing
profitability of company.
Functions: When a company is going to step up its foot in new era, then it needs to
create so many changes in function and operational activities. For bringing modification at
workplace and organisational system, they require to evaluate demand of marketplace in a proper
way. Therefore, it is essential for management to create alteration in production and manufacture
innovative products as per desires of clients.
P4 Effects of ethical and sustainable globalisation on organisational functions
As per situation, entering into new market is all about the unexpected transformation.
Therefore, the firms which have large organisation are needed to make various types of strategies
and policies as per political rules of targeted country. In addition to this, they should introduce
ethics in business which creates positive impact on organisational behaviour as well as on
employees too (Cohen and Kietzmann, 2014). Since Entertainer wants to expand its area of
6

operations in international market, therefore, it is highly recommendable for its managers to
understand legislations of territorial regions made by their government. It will help in carrying
business operations in targeted countries in a legal manner. In context with this, when such
companies take out their operations in other countries, then they have faced various issues in
expansion. It includes economical issues, political problems and more. So, to cop up from these
problems and resolve on time, it is necessary for them to analyse these factors and make
planning properly to comply workforce with all such laws.
By complying business operations with all rules and regulations, entire performance of
enterprise will get enhance in a high manner. Therefore, ethical consideration is necessary while
making strategies which will help in maintaining positivity at workplace and create good impact
on employees. In addition to this, managers are needed to provide proper guidance and training
to workers which make them able to work as per business demand. It would aid in getting high
retention of workers in companies as well as reduce heavy labour turnover.
TASK 4
P5 Various ways through which decision making can work effectively in global context
In an organisation, whole responsibility of managing workplace along with planning,
staffing, organising, financing and more are taken by leaders and managers. They perform
various activities in order to increase productivity of enterprise and enhance growth of business
in a proper way. They also take responsibility to create changes within working organisation and
operational activities for manufacturing creative and innovative products at marketplace. Along
with this, they introduce high techniques and latest technologies in business structure for creating
better modification. Along with this, they should motivate employees to work in a proper manner
and give their contribution in achievement of business success. All these processes, can be done
by taking proper decision in order to gain sustainability at marketplace of new countries. In
addition to this, keeping changes in business structure on regular basis help in utilising resources
in more effective way. In context with Entertainer, for operating business in different countries,
it wants to develop quality of products as well as provide wide range of them.
Managers are required to formulate new aims and objectives of association as per
business requirement. Along with this, provide proper guidance to employees and assign work as
per their skills. It will help in gaining their productivity and high contribution to hit target of
7

business as well (Globalization Challenges for Businesses. 2018). All these processes, can be
done by taking two type of decision as discussed below:
Programmed decision making: This type of decision is stated as tried and tested process
which is taken by leaders and managers of a company in order to obtain better outcomes. They
collaborate with each other in taking programmed decision by allocating the past performance of
company. It includes various strategies through which aims and objectives can be accomplished
in an effective way. Moreover, these are the proper and traditional strategies which was being
utilised and thus gave the positive outcomes. Example can be taken up of employees which
mainly resolve the issues by troubleshooting them. This is being done by an individual in
repetitive manner. Hence, it is necessary for management of Entertainer to make proper
decisions. Along with utilise all decisions on right time.
Unprogrammed decision making: This factor includes the factors which are exists in
external environment and impact on business activities. Therefore, it is essential for managers to
determine impacts of these and make decisions in short period of interval. Decisions involved in
such type of process are taken for changing existing technologies and adopt new ones.
(Kasemsap, 2015). This would help in increasing productivity of workplace along with
enhancing profitability.
P6 Assorted routes to internationalisation which can adopt by organisation, including key
barriers
There are various type of barriers come while launching business at international market.
Hence, it is necessary for associations including Entertainer to identify these factors and find
solutions to resolve the same (Ferraro and Briody, 2017). Through proper determination, they
can take decisions in an effective manner which helps in expanding business easily. Some
obstructions in this process can interrupted as:-
 Lack of funds is an important factor which creates a large interruption in running
business at global level. So, to reduce this barrier SME’s can take loans from banks or
convince investors to make investment in their firms
 Culture is also acts a barrier which needs to be considered by managers in a proper way.
It will help in carrying out operation of business at international level in an economical
manner. Therefore, it is advisable for employers to recruit high talented workers in
organisation and give them proper training.
8

 In order to launch business in new market area, a company needs to make innovation in
its products. It may include various types of risks in creating modification in business
structure. But taking risks by analysing all factors in a proper manner help in enhancing
business as well as acquiring good position at marketplace from competitors. (Huhtala
and et. al., 2014).
Route to internationalisation:
Joint venture: It refers to a business contract under which two or more companies make
agreements to join business for some period of time. It helps them to reduce shortage of funds
and resources by joining their business, because each of the parties are equally responsible for
profitability, loss and costs. Thus, it seems to be a perfect way for small companies like
Entertainer to launch business in international market. Therefore, joint venture is considered as
an important tool for international expansion which allows enterprises to access the
complementary resources as well as capabilities of each other and achieve targeted objectives as
well.
Franchising: It has proven as best route for successful expansion of business
internationally. In manufacturing sectors like Entertainer, use franchising to grow business in
emerging markets in strategical manner. In UK alone, franchising accounts for turnover of £850
billion. The main reason behind this is that it provides real benefits to both brand owner and
franchisees. Therefore, firms like Entertainer can generate income stream by a franchise business
model for international expansion.
CONCLUSION
From this report, it has summarised that globalising the business enhance sales
performance of a company. Along with it helps in increasing profitability as well as gaining high
advantage of competition. But for expanding business at global level it is necessary for such
companies to analyse factors which are present in internal and external environment. These
factors create huge impact on business operation in both positive and negative manner. By
compiling business with rules and regulations of countries where they want to expand business
helps in reducing negative impact and increase profitability.
9