Global Business Environment: Strategic Challenges and Solutions

This report examines the global business environment, focusing on the strategic challenges and opportunities faced by businesses operating internationally, using the case study of Allan Reeder, a UK-based wholesale dairy and non-dairy product supplier. The report analyzes key factors driving global commerce, including cost, market dynamics, competition, and the environment. It delves into the complexities of strategic challenges such as international trade laws, supply chain management, economic impacts, and environmental considerations. Furthermore, it explores the influence of globalization on organizational governance, culture, structure, and leadership, utilizing Hofstede's cultural dimensions and McKinsey's 7-S model. The report also investigates different decision-making approaches and international business routes, highlighting potential barriers to entry. Overall, the report offers a comprehensive overview of the global business environment, providing valuable insights into the challenges and opportunities for businesses in today's interconnected world.

GLOBAL BUSINESS
ENVIRONMENT

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Key factors including cost, market, competition and environment and its drive towards
global commerce and trade.....................................................................................................3
TASK 2............................................................................................................................................4
P2 Complexity of strategic challenges that are faced by organisation to operate business in
global business environment..................................................................................................4
TASK 3............................................................................................................................................6
P3 Influence of globalisation on organisational governance, culture, structure and leadership
................................................................................................................................................6
P4 Influence of ethical and sustainable globalisation on organisation functions...................8
TASK 4..........................................................................................................................................10
P5 Evaluation of different decision-making to work with more effectiveness at globalisation
level......................................................................................................................................10
P6 Various routes for making a business at international level and also including its key
barrier...................................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Global business environment is specified as the environment of diverse independent
countries, along exogenous factors that are different from home environment of a business.
Globalisation also influence on decision making as well as resources which are utilised by
organisation for performing business operation in global market. In simple terms, globalisation
business environment relates with different country unfamiliar factor that are different from
domestic environment (Belás and et. al., 2014). This report is written from perspective of Allan
Reeder and it is a well-known London based business family organisation that offer wholesale
diary and non-dairy products in and around UK premises. Further, the report highlights on cost
aspect, environment, market, competition and complexity of strategic challenges which are faced
by an organisation in an international market. Globalisation and its encouragement towards
company structure, leadership and governance. Different international routes to manage business
in the international market will also focused in the report.
TASK 1
P1 Key factors including cost, market, competition and environment and its drive towards global
commerce and trade
The term globalisation refers to the process that is operated by organisation for developing
international influence in market. By understanding different terms such as political, economic
social and many more easily explain the terms related with globalisation aspect which is used for
performing and managing business at international level. Allen Reeder is performing their
business among London with understand all macro environment aspect in order to manage

operate operations as per global level commercial activities and trade (Belás and et. al., 2015).
Some key aspect from point view of Allen Reeder is mention as below:
 Cost factor- Price or cost is one of the most crucial aspect for Allen Reeder and its
business activities as the monetary policy for local country and other country is not same.
Moreover, with change in economy of the countries management of Allen Reeder desihn
cost framework according to country policy so the needs of customers are fulfilled in an
appropriate manner. This also refers by deciding right price for products it is easy to
match between product quality and needs of customers. Thus, cost factor work as a
positive point for Allen Reeder to enter into global market that help to perform trade
activities in an appropriate manner.
 Market factor- According to present market conditions, Allen Reeder cover large market
area through providing its products in Pubs, Restaurant and five star hotels which
improve brand image of organisation. So it also refers that most of the London market is
covered by management by satisfying needs and wants of customers in an organised
manner. Further, marketing team of Allen Reeder is focused to enhance their market size
for performing its trade activities into new market (Blodgett, Hoitash and Markelevich,
2014).
 Environment factor- In the present scenario, environment aspects is most crucial aspect
for organisation that is impacting on all business operations and functions of an
organisation. Allen Reeder provides dairy products for satisfying needs as well as wants
of customers and to ensure environmental aspect management focus that all laws and
legislation are followed by organisation. Moreover, business also demonstrates by
following all ethical and legal rules it is easy for management to improve goodwill of
organisation among local market. Thus, by improving goodwill or brand image
management is able to boost its commercial and trade activities at international level that
increase profits for organisation.
 Competition- With the impact of globalisation all industries are facing intense
competition among market due to which its business operations and functions are
impacted (Botha, Kourie and Snyman, 2014). Similarly, the operations of Allen Reeder
are also impacted so top authorities of business is focused for developing competitive
edge in market. Therefore, organisation develops aspect which is boosting market area

that is beyond market of home country. In order to monitor competitive factor respective
organisation monitor its rivals stepson constant basis.
TASK 2
P2 Complexity of strategic challenges that are faced by organisation to operate business in global
business environment
International rules and regulations are different from local organisation it means if other
organisation operates its business beyond local country than they rules and regulation are
different from local organisation. This also refers that there are various task and operations
performed by management that is leading business houses for enhancing its market area. Allen
Reeder is facing challenges because there are various task and operations is performed such as
storage of products, delivery of order etc. Thus, it creates various challenges for business that
impact on operations of organisation. It refers that international trade law impact on business of
Allen Reeder to perform work with more efficiency. Some aspect that help to understand
strategic challenges are mention as follow:
 Impact of international trade law- In the present scenario, each country government
develop local law that are designed for ensuring interest of global company. Allen Reeder
face first challenge when recently the decision of Brexit is taken by government. This
results all rules and regulations to manage business in Europe is modified (Deasy and et.
al., 2016). Now it is mandatory for Allen Reeder to formulate new strategy for managing
business in local market. This is also identified by management that by formulating
policy according to business conditions it is easy to work at global level. Example- For
delivery order now transport cost of business is enhanced. So organisation face challenge
to perform work at different locations.
 International supply chain management- The term international transport or supply
chain management refers to the process of providing products and goods by organisation.
Supply chain management refer to flow of goods that is used in managing product form
the acquisition to the customer base and to complete the process management need to
cross minimum one international border. Allen Reeder is managing most of its operations
in local market so it generate challenging situation for organisation to manage supply

chain at international level. For instance- Tesco improve its strategy related with supply
chain management to increase its product portfolio (Ganamotse and et. al., 2017).
 Economic of globalisation- With impact of globalisation strategy the first that is
performed by business is to enhance global economy of country. In the present scenario,
the global economy is impacted and strategic global challenges also faced by Allen
Reeder in the year 2008 due to recession period that take place among all over the world.
Moreover, Allen Reeder is also facing business complexity because of Covid-19 impact.
For example- Large hotel such as Marriot demand few products because customers are
visiting outside business. Moreover, it impact on supply chain management because of
strict rules it is complex for suppliers to deliver company products on time.
 Environment impacts- With the analysis of different activists it is identified by
management that globalisation leads to enhance in consumption of products. It also
impact on the ecological cycle for Allen Reeder is more impacted because according to
present market conditions demand for diary and all other products is reduced at global
level. For example- The oil and petroleum products are impacted due to the organisation
as it is complex to manage business due to strict rules of business environment.
Moreover, it impact on business strategy as now organisation perform operations with
new strategy for completion of task in proper manner.
TASK 3
P3 Influence of globalisation on organisational governance, culture, structure and leadership
The term globalisation as well as cooperate governance explains various systems that are
related with rules, policies, regulations etc. Allen Reeder utilise different models that leads
management to understand influence of globalisation on leadership, structure and culture. With
managing work according to the decided rules that leads management to accomplish company
goals and objectives (Gooris and Peeters, 2016). Some theories that are used to understand
culture and structure of organisation is mention as follow:
Hofstede’s cultural dimension
Hofstede’s culture dimension was developed by Greet Hofstede that is used for
understanding the culture of a country. In context of Allen Reeder the Hofstede’s framework aids
management to formulate strategy according to culture of a particular country.

 Power distance index- This consider the extent of inequality and power that is tolerated
among organisation. Allen Reeder enter in low power distance index as they follow
decentralise structure and encourage employees to participate in decision making.
 Individualism vs. collectivism- From point view of Allen Reeder management is
focused to complete project with implementing collectivism aspect. This leads
organisation to gain top position in market by completing all work in effective manner.
 Uncertainty avoidance index- The uncertainty avoidance index considers that with
extent of work according to uncertainty aspect it is easy to work with more efficiency but
for this the uncertainty avoidance index must be high. So Allen Reeder implement strict
rules to minimise risk of uncertainty.
 Masculinity vs. femininity- This aspect lead individual to understand “tough vs. tender”
and it is used to consider the preference for society achievement. Allen Reeder managed
coordination between both aspects for completing all work in an appropriate manner.
 Long term orientation vs. short term orientation- Allen Reeder focus and attempt to
implement persistence and perseverance because it helps to accomplish long term success
in the organisation (Kasemsap, 2014). This also refers that short term orientation generate
challenge for management to sustain for longer period in market.
 Indulgence vs. restraint- Allen Reeder is enhancing its business with motive of
completing work with the help of restraint aspect as it leads organisation to work with the
society norms in which company manage its business.
Implement of McKinsey’s model to understand structure
This is important for organisation to understand organisational structure so management
develop positive influence about Allen Reeder in the society. Factor of 7’s model is mention as
below:
 Strategy- Allen Reeder refer to a family business that manage function with help of
formulating strategy that make positive influence among departments to complete work
according to decided goals.
 Structure- Sequential structure is followed by Allen Reeder that lead company to work
with positive point and it also lead organisation to make competitive edge by
implementing structure for all functions.

 System- The system aspect is at moderate approach because mostly system area
designed with motive of performing work as per daily routines.
 Shared value- Ethics and value are most important factor for organisation so Allen
Reeder develop similar value for all individuals that area engage in company
operations.
 Style- It refers to the style that is adopted by management to motivate individuals by
analysis of current situation autocratic style is adopted to influence management of
formulation right structure.
 Staff- Allen Reeder recruit professional and skilled individuals in order to enhance
overall productivity of organisation operations. Further, it influence to complete project
in minimum time period.
 Skill- Skills as well as capabilities of Allen Reeder employees leads management and
its employees to perform job role in an effective manner.
Globalisation influence on organisation governance
The organisation governance of UK is impacted due to implement of Brexit. It refers that
interconnection between different countries leads to make trade activities, capital flow and
economic rules that lead globalisation to encourage presence of corporations for generating
subsidiaries to make effective results (Kasemsap, 2016). In the context of Allen Reeder the key
element of globalisation make trade and capital flow that is used to create structural support. It is
also used to influence cooperate practices towards organisational goals and objectives.
Influence of globalisation on organisation leadership
Globalisation influenced the leadership by changing in market size, customer base,
competition and customer base. This governs Allen Reeder perform their work after
globalisation at large level so now leaders must influence workforce to perform its role according
to decided workforce. Moreover, employee’s locations are also interchanged such as authorities
of Allen Reeder transfer skilled individuals to global areas for establishing business in an
appropriate manner.
Influence of globalisation on function of organisation
In the present scenario, there are various task and operations performed by management
but with globalisation aspect management functions and operations are also influenced because
now Allen Reeder must perform work according to international rules and regulations that leads

to make accurate results. So by performing all task and operations and functions according to
international trade it is easy to generate effective results which lead to improve market areas in
developing countries.
P4 Influence of ethical and sustainable globalisation on organisation functions
Ethical or Moral globalization implies incorporation with financial aspects, social orders
and culture that are playing out their work at worldwide inside moral and important way. As per
present worldwide economic situations and association impact clients, providers, investors and
so forth to perform their role at worldwide level.
Sustainable organisation decides as an efficient procedure that relates with improvement,
upgrade, enhancement and grow of business at worldwide level. Alongside this it likewise builds
endurance and benefit boost of association through expanding number of client base. This
additionally indicates with stable situation among Allen Reeder is likewise ready to finish all
project according to worldwide level by defeating from escape clauses in association.
Human resource- Personnel or workforce are most important asset for organisation as it
lead Allen Reeder to motivate them for completion of task as per international level. Moreover,
this also leads management for formulating competitive edge in market by engaging them to
work with ethical rules and regulations.
Finance- Another important term for Allen Reeder is to use finance tools to perform
work according to decide budget (Kasemsap, 2017). It also leads organisation for managing all
operations with low aspect that leads for completion of work with low cost. It result management
obtain sustainability in market.
Marketing- The last aspect which is used by organisation to perform business in global
market refers to promote business trade with use of marketing activities. This results it is also
easy to make focus on overall products of Allen Reeder whether it is dairy or non-dairy product
in order to increase overall profitability of business.
Some strategies that impact on decision making process and structure of organisation
Globalization likewise relates with developing monetary relationship for nations at overall
level. This decides with increment in volume and assortment of cross-fringe exchange products
and enterprises just as global capital stream additionally spread fast dispersion to think of
innovation. Model constrained work produces issue for association like it is mind boggling for

organization to perform work due to demotivate workforce as ineffective employees are not able
to generate better result for Allen Reeder.
Worker or employee turnover is the another issue that is looked by the executives as the
board face difficulties due to dominant part of workforce doesn't know about the aptitudes that
are required to oversee business at worldwide level (Kasemsap, 2020). So the decision for right
training must be implemented by management.
Rules, regulations and guidelines additionally impacts on the work execution of the
association and also for Allen Reeder since it nation build up their own standards and guidelines
for guaranteeing the enthusiasm of nearby organizations in advertise in order to engage more
individuals for performing work in an effective manner.
Scholarly rights additionally function as a positive viewpoint for Allen Reeder as
organization enhance their business in different nations. So with trademark strategy the executive
ensure that its instruments are more effective and better than rival organisation.
TASK 4
P5 Evaluation of different decision-making to work with more effectiveness at globalisation
level
Decision making process is used by organisation for the selection of right and effective
activities as it aid management to complete work with more efficiency. Manager and top
authorities of Allen Reeder monitor all projects that make more probability to make right
decisions because authorities constantly monitor work performance of employees. Some decision
that are more effective for Allen Reeder to make better decisions for improving effectiveness at
global level is mention as follow:
 Collaborative- Leader and manager perform an essential role for making right decisions
for Allen Reeder. So both individuals interact with each other that lead to generate better
collaboration among individuals. Collaborative is also used by management of respective
organisation to engage all employees among decision making so each individual perform
right role in organisation (Lilley, Barker and Harris, 2014). Further, it generate positive
results because employee feel motivated and put efforts to make right and effective
decisions. The negative for Allen Reeder is that collaboration is a time consuming
process which make delay in operations.

 Command- Allen Reeder started to operate their business at different locations so it
leads teams as well as group members to engage individuals for performing work and
providing review about their job role. This results organisation focus on those steps that
is impacting on organisation goals. For example- lack of resources generate complexity
to work than manager command to gather all essential source as it improves decision
making process of organisation that leads to work with more efficiency at global level.
The positive aspect for command aid management for completion of task in minimum
time period. Moreover, negative aspect defines that command sometimes generate
confusion for organisation to follow its decision.
 Convenience- Delegation of power is the key aspect that makes convenience for
organisation to perform work according to decided teams. It refers through dividing
power Allen Reeder management and its employees perform all work in an effective
manner. Moreover, it also increases possibilities to enhance morale of employees which
work as a positive aspect for organisation. It also leads management to obtain better
position in global market (Prajogo, 2016). It is also identified by management that
convenience of power makes negative results if power is not balance as per authority and
responsibility.
P6 Various routes for making a business at international level and also including its key barrier
The international aspect intent for enhancing business at global level and it is used for
performing business outside the local market. Allen Reeder implements international routes for
completing task within global market. This is also used by management to exercise business as it
used in generating profitability for business. Further, Allen Reeder focus on those country which
economic is more improved and it is focused to adopt methods such as joint venture,
Franchising, permitting and also challenge that are faced by management while adopting
international routes are mention as beneath:
Joint venture- Joint venture is an official business understanding between two and more
gatherings that work for comparative and similar reason. The two players show their enthusiasm
for benefit sharing, hazard, dynamic and responsibility for. Joint endeavor function as positive
viewpoint for Allen Reeder as it creates and contributes new resource and devices that fulfil the
needs of clients and needs inside suitable way. It additionally fills in as positive factor which is
improving economy of a nation by upgrading number of business movement. On opposite side,

the barrier which is faced to adopt joint venture is the change between culture of companies due
to which it is complex to work together (Silvius, 2018).
Permitting- License is an understanding of right which provide plans to give an official
approval for achieving results with help of copy or to trade items as a single identity. It is a
system which allows or gives an assent for collecting right or authority for beginning with a
single association then onto the following association after portions for a foreordained period.
There are a couple of focal points of allowing, for instance, adequately perform work in remote
market that gives various possibilities, and so on. However, Allen Reeder monitors and observes
the barrier or critical restraining of approving because it is expensive. for instance, colossal
number of competition at business focus, impacts on their reputation, loss of control, and so forth
which create complexity to manage business properly.
Franchising- The term franchising is to promote a business for developing their business
at international level. Franchising suggests there is a comprehension between two social
association or occasions, for instance, franchiser and franchisee. Right both parties work together
that gives a benefit to each other in society for using their trade name for making a product and
endeavours on a right time (Campbell, Jardine and McGlynn, 2016). There are a couple of focal
points of enhancing which joins wellsprings of financing gets less difficult and it work as a
barrier that helpfully went into an outside business place, getting a bit of the incomplete items
etc. While the huge drawback or barrier for Allen Reeder that relates with enhancing of business
refers to a portion of the time cost may be higher, joins various confinements which make
challenge for accomplish company goals.
CONCLUSION
With the above mention report it is concluded that global business environment of an
organisation is one of the most important aspects and it leads an organisation for achieving better
position in market. Along with this an enterprise also formulates objective and goals that is used
for making better business premise and position in international market. Further, it is also
mandatory for organisation to cultivate right strategies and it leads organisation to work
according to present existing conditions. It also helps company to accomplish trends which leads
to enhance organisational products. In the last, with understanding international routes and
analysing barrier of route it is to perform work at global level.