Global Business Environment Analysis: The Entertainer's Expansion

This report provides a comprehensive analysis of the global business environment, focusing on the challenges and opportunities faced by The Entertainer, a UK-based toy manufacturer, as it plans to expand into South Africa. The report examines key elements driving global commerce, including cost, market dynamics, competitive landscapes, and environmental factors. It delves into the complexities of strategic challenges, such as customer expectations and cost management in a global context. Furthermore, the report assesses the impact of globalization on organizational governance, leadership, structure, culture, and functions, including ethical and sustainable considerations. It also explores effective decision-making processes in a global setting and evaluates various internationalization routes, identifying potential barriers to success. The analysis incorporates relevant factors such as competition, market analysis, and environmental considerations, providing a detailed overview of the strategic considerations for The Entertainer's expansion.

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............................................................................................................................................4
P3. Cause of globalisation on organisational governance and leadership, structure, culture and
functions......................................................................................................................................4
P4. Effects of ethical and sustainable globalisation on organisational functions.......................5
TASK 4............................................................................................................................................6
P5. Various ways through which decision making can work effectively in global context.......6
P6. Assorted routes to internationalisation which can adopt by organisation, including key
barriers.........................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Global business environment can be stated as an area where various companies of
distinctive sectors gives rivals to each other so that they can enhance their profit margins and
increase their goodwill in international market. It is important for management of a firm which is
looking forward to run enlarge their business at a whole new place to examine all the external
factors that may affect both productivity and profitability of them (Apăvăloaie, 2014).
Globalising a company means developing business at international level where they are going to
deal with human needs, competency and others foreign elements. The Entertainer is a
manufacturing company of UK that makes toys for small kids has been covered under this report.
Firm is going to expand business in South Africa. Some key factors are being included under this
assignment that are related to drive global commerce and trade. Away from this, Complexness of
strategic challenges has also being enclosed. Lastly, assessment will show effects of
globalisation on a firms decision making process and few barriers that may effect profitability of
organisation.
TASK 1
P1. Key elements of cost, market, environment and competition that drive global commerce and
trade
Global environment is vital to understand for every single firm which is trying to enlarge
their business firm at targeted place. Therefore, this type of environment includes various factor
that may put impact on both reputation and profitability of a firm. When an organisation trying to
run their business at whole new geographical area that may face various problems that are
related to barriers, competitors legislations, taxes and so on. But, it has been located that if a firm
considers all the elements of cost, market, they may find positive effects on productivity and on
profitability as well at international marketplace. In this context, it is important for management
of the The Entertainer to locate all the foreign sections that may put impact on business while
enlarging their business. Some of these elements given beneath:
Competition: This is one of main element which should be considered in an appropriate
manner by a firm while expanding their business at international level. Competitors mainly
affects both productivity and profitability of a firm which introduced its products in recent
manner (Axelrod and VanDeveer, 2014). Therefore, it is vital for organisation to analyse
1

products, working style, technology which is being used by rivals. With the help of this,
management or leaders of companies can take effective decisions in order to give them rivalry or
to gain competitive advantages (Belás and et. al., 2014). By this, they can manufacture products
and services as per needs and wants of consumers. Along with this, hitting targets as become
much important for companies in today's world so that they can sustain at marketplace for a
longer period of time. The Entertainer who manufactures toys for children and trying to improve
their experiences as well with using innovative ideas. At the moment, they have analysed that
South Africa is a good place where they can expand business as it is much developed country.
Along with this, they saw that this nation has already have ample number of manufacturing firms
that are making toys.
Cost: While expanding business at international level it is mandatory for an enterprise to
locate all the elements which may aid them in reducing prices of products and services. This may
aid them in getting attention of consumers in ample number. Along with this, it has been
analysed that making quality products with less amount every single customer looks for.
Therefore, targets can get hit by management by considering all the requirements of consumers,
Away from this, it has been examined that when a firm enters international level there cost of
products and services get increases. Thus, it is mandatory for management of The Entertainer to
locate all the elements through which they can minimise cost of products and services so that
they can sustain at marketplace of South Africa. With the help of this, they may gain or make
good brand image in front of social people of South Africa.
Market: When a firm looks to enlarge their business at whole new place whee they do
not know about culture and environment that they have. It is important to analyse the market of
the targeted place through which they can make plans and strategies which may aid them in
hitting targets in short period of time. Enlarging business consist various risks which may put
impact on productivity and on manufacturing of products as well. Therefore, it is mandatory for
firms to analyse market in a proper manner of the geographical areas where they are willing to
expand their business (Belás and et. al., 2015). With gained information, firm make alterations of
their products and services in order to better serve to the people of that targeted place.
Henceforth, The Entertainer needs to understand and examine customers needs, competency,
rivals decisions and other things which may put impact on doing business at globalised level.
2

Environment: This is one more element which should be considered by management of
firms while making or manufacturing good and services. They need to understand about all the
surroundings that consumers of targeted place have (Carneiro and Brenes, 2014). With the help
of this, targets can get hit by management if they properly realize what exactly consumers are
looking for. Along with this, customers perceptions rapidly changes therefore, it is important for
enterprise to make alterations in their products as per requirements so that users do not looses
interest from products and services that they are offering them. By this, firm can see positive
differences in their sales and profit as well. Management of The Entertainer can use PESTLE
analysis through which they can learn about all the external elements which may put impact on
running business at international level.
Therefore, it is essential for The Entertainer to properly understand all the above factors
before introducing their products and services in marketplace of South Africa. With the help of
this, they may gain competitive advantages and may also can hit targets through which they can
enhance profit margins and their reputation as well in front of social people.
TASK 2
P2. Complexness of strategic challenges faced by organisation while operating in global
environment
In modern era, most of firms are looking to enhances their business and introduce their
products and services at international level so that they can earn more and more profit. In order
to do this, organisations make alterations in their products, understand foreign cultures and
realise tax systems of foreign country which may aid them in achieving all desired goals and
objectives in an appropriate sort of manner (Globalization Challenges for Businesses, 2018).
Some of strategies in today's time are being utilised by mostly used by administration of firms in
order to deliver products and services is use of internet. Companies have introduced their own
applications through which consumers may buy products while sitting at home. They have made
strategies of giving facilities to customers like home delivery, money exchange, buy one get one,
and some other offers through which they can keep up interest of consumers in their products
and services for a longer period of time.
South African people have different cultures that are being followed by citizens.
Therefore, the entertainer can face complexities in order to make new strategies or plan of action.
3

Thus, some of the problems which a company can go through at international level are given
below:
Customer expectations: Under this, managers of The Entertainer should determine the
factors which can create a problem in operating the business in an effective manner (Cavusgil
and Knight, 2015). Expectations of consumers can vary from place to place, in some areas
demand of products is much higher when comparison is being done with other sphere. Hence, it
is essential for The Entertainer to rapidly look forward in to customers needs and make
modifications in goods if it is needed. Firm mostly targets consumers with the age in between 1
to 10. therefore, it is mandatory for this organisation to locate all needs and wants of small kids
and make toys according to them in order to sustain at marketplace for a longer period of time,
Cost: Doing operational activities at international level carries ample number of risk with
it. Here, firms can go through many problems while planning or developing strategies. At this
moment, targets cannot be achieved if an organisation will sell products with high prices. While
introducing products and services at international level. It has been analysed that cost of products
can be increased because of various excise duties, taxes and other elements. Therefore, it is
essential for administration of The Entertainer to make strategies through which they can reduce
prices of products and services. For an example: Choosing cheap labour while transporting goods
from one place to another. This can be done by firm in order to decrease prices of their
commodities that they are offering at marketplace.
TASK 3
P3. Cause of globalisation on organisational governance and leadership, structure, culture and
functions
Corporate governance is a process through which organisations are being disciplined as
well as directed. This consist of various principals, rights and laws through which various
associates are being handled in an appropriate manner. These participants are: managers,
directors, creditors, auditors and so on. Globalisation can put impact on this through various way.
When a firm is trying to expand its business at international level it has been analysed that
decisions are being affected if proper analysation is not being done by investigators (Cohen and
Kietzmann, 2014). Along with this, it is essential for firms to consider all the shareholders while
making decisions or while formulating plans as they are the one from whom an organisation can
4

raise funds in order to attain specific goals and objectives. Away from this, there are some other
elements as well of firm which can be affected by globalisation and these are given below:
Leadership: A leader is the one who takes major initiatives and directs its subordinates so
that they can achieve goals and objectives of their own in short period of time (Crane and
Matten, 2016). They also motivate them in order to make employees much more effective at
workplace. Impact of globalisation may affect plans, strategies, vision and mission as well which
has been made by leaders. Therefore, it is must for leaders to keep on analysing all of the
elements which may bring risk for them. In context of The Entertainer, leaders are going to
introduce all new toys in South Africa but it is mandatory for them to understand first that what
exactly consumers are looking for. This may aid them in manufacturing toys as per need of
clients.
Structure: Globalisation can affect structure of a firm in different ways. If a firm is
introducing products and services at international level and they have opened their office at a
new place. Then it is must for them to recruit candidates from an existing company of that sphere
so that they can take suggestions from him/her. This is being done in order to hit their targets in
much more effective ways. Under this, board of directors of The Entertainer may take ideas from
that person who is working and previously in United Kingdom they were using old and
traditional system in which information is being transferred from top to middle and then to lower
level management.
Culture: This is another element which may get influenced by globalisation.
Administration of a firm keeps on manufacturing goods and services as per perceptions of
consumers according to their needs and wants and as per culture which are being followed by
them. This should be considered by The Entertainer while making proper plans and at the time of
introducing goods at marketplace of South Africa.
Functions: As a firm starts doing business from domestic to international level. It is may
be possible that they have to alter products and services as per consumers needs and trends which
are being followed by other companies in that targeted sphere (Doh, McGuire and Ozaki, 2015).
Therefore, it is must for administration of The Entertainer to make alterations in their functions
which are related to profits, risk involvements, investments and so on.
5

P4. Effects of ethical and sustainable globalisation on organisational functions
Modern era is full of unprecedented transformation. Most of firms which are large in
nature are using ample number strategies and are following rules and regulations of countries in
which they are doing business. Ethics includes company's morale which may aid them in
influencing staff members behaviour in positive way (Epifanova and et. al., 2015). As The
Entertainer is looking forward to expand its business in South Africa. Therefore, it is important
for them to understand all the legislations, acts which has been made by parliament of South
Africa. Operational activities can be done of an organisation by using all the ethics in an
appropriate way. Along with this, various issues are faced by manager at the time of expanding
their business at global level. So that, it is important responsibility of manager to examine all the
issues in effective way by which problems can be solved that are being faced by firm while
enlarging the business.
It is important for business organization to effectively follow all the rules and regulation
at the time of implementing strategies. With the help of this firm enhance their overall
performance level at global market. In case, if company fails in considering ethics then it puts
negative impact on company's image. Along with this, manager also formulate effective policies
and strategies to improve workers performance in which they provide them better direction. By
this they effectively operate entire business function. This will help business organization to
capture larger market share form its rivals and established positive brand image. Therefore, The
Entertainer should adapt proper technology and make strategies through which they can hit their
targets in much more effective and ways. At current moment, it is important for the Entertainer
to use effective approach which may leads in improving positive image and at the same time also
reduce the chances of arising issues (Ferraro and Briody, 2017). This will helps in enhancing
profitability level by serving quality service to its customers. Thus, effects of ethical and suitable
globalisation postpositively affect the organizational function which may leads in attaining
competitive advantages in effective manner.
TASK 4
P5. Various ways through which decision making can work effectively in global context
Leaders and managers are both their who keep on making alterations in operational
activities of a firm in order to enhance productivity and profitability while doing business at
6

international level (Huhtala and et. al., 2014). Therefore, it is must for both leaders and
management of The Entertainer to continuously look into making modifications on a regular
basis and this can be done by taking appropriate decisions in order to sustain at marketplace of
South Africa for a longer period of time. As The Entertainer is going to introduce products and
services of them in South Africa it is essential for them to understand all techniques, tools and
technologies that are being used by rivals so that effective decisions can be taken under in order
to attain all the desired goals and objectives in an appropriate manner. Leaders mostly formulates
aims and objectives of a firm and make proper determinations like assigning tasks to individuals
or staff members. Through this, management of The Entertainer may aid firm in hitting targets in
much more effective ways and will successfully establish business in South Africa. It has been
examined that mostly executives makes two type of decisions and these are given below:
Programmed decision making: This type of decisions can be made by both managers
and leader by locating previous results. These can be stated as the tried and tested process which
gives final outcomes. This includes, organisations policies through which they can hit the targets
in much more effective ways. Along with this, these are proper and traditional strategies which
are being previously used and gave positive results. For an example: A staff members
responsibility is to resolve troubleshooting issues if it has been faced by an organisation. This
can be done by an individual in repetitive manner.
Therefore, it is must for administration of The Entertainer to locate all decisions which
has been taken by them previously and utilise them right on time whenever it is needed.
Unprogrammed decision making: Global world includes various risks and at times it
becomes vital for management of firms to make determinations in a quick moment. They may
also be new like adapting new technology at workplace in order to enhance productivity and
profitability. This may aid firm in hitting targets in much more effective ways.
While enlarging business at international level The Entertainer they may face various
issues where they had to make both unprogrammed and programmed decisions (Kasemsap,
2015). Henceforth, it is must for them to locate and analyse environment so that they can adapt
best sort technique in order to make perfect decisions which will help firm in gaining a good
reputation at international level.
7

P6. Assorted routes to internationalisation which can adopt by organisation, including key
barriers
There are ample number of barriers that can be faced by an organisation while enlarging
business at workplace. Therefore, it is must for them to keep on locating all the risk factors so
that effective decisions can be taken by them. By this, prevention can be done from various
losses and from decrease in reputation as well (Kolk, 2016). Along with this, company can hit
their targets if they make proper and effective decisions. Management should keep on analysing
all the department of the enterprise like, marketing, financial, sales and others. Away from this,
while enlarging business at South Africa, a main obstruction that can be faced by The Entertainer
is that they have different culture and perceptions of citizens of their could be different as well.
Operational activities should be effective of this company. Thus, researcher should locate
all the risks and other factors which may put bad impact on this department. Decrease in
reputation can be seen if they are not providing exact good and services to clients. Customers
need plays vital role in context of expanding business (Wild, Wild and Han, 2014). Merger can
be adopted by this firm in order to gain competitive advantages. Henceforth, in this connection
there are numerous obstructions which will face by organisation during globalisation and these
are stated as beneath:
 Proper funding is much needed while expanding business at international level. SME's
can take loan from banks and they can sell their shareholders through which funds can be
raised. To do this, management should keep on conducting various meetings in order to
share what there plans are and what exactly they are going to achieve.
 Another barrier is culture, which should be considered in an appropriate manner by firm
while expanding business at international level. With the help of this, firms can hit their
targets and positive environment can also be made by them right on time which may aid
them in achieving goals and objectives in short period of time. Along with this,
collaboration is must among employee who belongs to different culture. They are said to
be an asset for an organisation and nothing can be done without them. Therefore,
administration should conduct training for them in order to enhance their skills and
knowledge.
 Technology is another barrier which should be kept in mind while entering a whole new
market (Peng, 2016). This can bring both positive or negative impact on business firm.
8

Therefore, it should be considered in appropriate manner and right on time. Analysation
of market and keep on locating areas in which rivals have made alterations can aid in
different areas and to run business in much more effective manner (Savrul, Incekara and
Sener, 2014).
Therefore, it is must for this The Entertainer to look into areas in which they may face
ample number of losses. With the help of this, they can earn more profit right on time.
Various Routes of internationalisation are stated as under -
 Strategic Alliances – It is made between foreign partners in order to accomplish set of
goals and meet business needs and wants in more critical manner. Strategic alliances
encompasses with exchange, sharing and co-evaluation of products, procedures and
processes. In this, each partner seeks to augment its competences by combining its
resources with those of the other partners and improve their market presence and
competitiveness. Strategic alliances has made for certain time period and for completion
of specific project or task.
 Franchising – It is a strategic way to diminish independence upon domestic market and
expand market presence in global areas by growing new revenues and profitability.
Expansion of a business at world level also include low risks and require minimal
investment as well as offering vast potential opportunities. Franchising is a pool of
resources and abilities in order to obtain strategic marketing, sales goals and distribution
of a company. In this process, franchisor grants to an individuals the right to run a
business by selling products under the franchisor's brand name or business model.
Although, for this purpose franchisor also take certain initial fee that must payable while
making franchising agreement.
CONCLUSION
As comprehended on above report, it has been analysed that global business environment
have different elements which should be considered in an appropriate manner by firm which is
looking forward to expand its business in foreign countries. With the help of this, targets are
going to get hit, goals and objectives are going to be attained and by this organisation will gain
many competitive advantages as well. Along with this, revenues can be generated in huge
amount if firm is selling quality goods and services to consumers with less prices at international
9

level. Away from this, firms should keep on making alterations in products and services by doing
proper analysis of marketplace. Various barriers are there which may put impact on decisions of
executives. Therefore, it is must for them to take proper initiatives by which firm can see hike in
goodwill and brand image.
10