Comprehensive Report: Global Business Environment for Ensoft Ltd

This report provides a comprehensive analysis of the global business environment, focusing on Ensoft Ltd, a networking software company. It explores key factors driving global commerce and trade, including cost, market, environment, and competition. The report delves into the complexity of strategic challenges faced by companies in the global market, such as political, economic, social, technological, environmental, and legal factors. It evaluates the influence of globalization, including ethical and sustainable considerations, on organizational functions. Furthermore, the report assesses effective decision-making in a global context and determines various routes to internationalization. The report provides a detailed examination of these factors, offering insights into the challenges and opportunities within the global business landscape.

GLOBAL BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key factors which drive global commerce and trade.............................................................1
M1 Critically analyse that have key factors on business in terms of benefits and challenges....3
TASK 2............................................................................................................................................4
P2 Complexity of strategic challenges faced by company in global market..............................4
M2 Critically analyse strategic challenge in context of risk and diversification........................5
D1 Global business environment including opportunities and challenges face by company.....5
TASK 3...........................................................................................................................................6
P3 Evaluate the influence of globalisation on organisation........................................................6
P4 Influences of ethical and sustainable globalisation on organisational functions..................7
M3 Global market influences in appropriate theories and model...............................................8
D2 Critique strategies that can be adopted by organisations......................................................8
TASK 4............................................................................................................................................8
P5 Evaluate ways, decision making can work effectively in global manner..............................8
P6 Determine the various routes to internationalisation.............................................................9
M4 Critically evaluate the key barriers in doing business internationally................................10
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Business environment is a factor that affect an organisation's internal policy and
procedure directly. It has two different elements as internal and external environment that affect
decision making procedure of business. It has been observe that, Global business environment
has been developing and changing very quickly. For an business organisation, this term is use to
determine a specific process in which they start to dealing their product and services at
international level. This is a useful term for a company in which they can easily generate more
profit and desired growth in effective and appropriate manner. For this an organisation need to
make specific research and analysis of different countries and places where they wants to expend
its business structure in appropriate manner (Adger and et. al., 2013). This project report is based
on Ensoft Ltd which was established in the year of 1997. This organisation is deals and
manufacturing in Networking software. This report includes key factor that drives for global
commerce and trade, complexity of strategic challenges, evaluation the influence of globalisation
and its ethical and sustainable factors. At last this report is represent evaluation ways, decision
making in global manner or different routes to internationalisation as well.
TASK 1
P1 Key factors which drive global commerce and trade
Global business market is determine different kind of commerce and trade factor that
affects a business procedure in effective manner. It includes four different kind of such as cost,
market, environment and competition. All these factors are enable to determine several aspect
that drives for global commerce and trade in target market. Framework of these factors are given
below such as -
COST
This is a appropriate factor of an organisation that needs to create in effective manner.
For this manager and management department of Ensoft Ltd has to build a attractive cost of their
products and services for customers. This process of organisation can be conduct if they have
proper knowledge of market, customers needs and product position (Arends, 2014). Through this
strategy they can easily build new and effective image of their products and services in front of
target customers. It includes two different factors such as -
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 Direct cost – This is a price of product that includes proper attribute as production and
specific goods or services. Direct cost always includes manufacturing prices, supplies and
commission as well. This cost may be related to direct labour, material cost, fuel, labour
and power consumption. It is usually control and determine by manager of firm.
 Indirect cost – This type of cost which is basically determine through a specific feature
that are not directly responsible to a cost objective. Indirect cost can be fixed or variable
in as per its nature. It is usually includes management, personnel and security costs of an
organisation. This cost is also determine various expenses that associated with
manufacturing of a particular product and also include cost of maintenance as well.
In globalisation and global commerce and trade, organisation needs to manage sot at higher level
in order to maximise higher resources easily. For this, Ensoft needs to manage funds through
different financial resources and institutions.
MARKET
Market is a place where and organisation can easily introduce their products and services
in front of target audience (Brouthers, 2013). At this place various people come for exchanging
product and services on the behalf of their money. In other hand, this is a place that can be
physical entity or virtual where buyer and seller build their connection with exchange of product
and money. Some key factor of market are given below as -
 Market for Raw materials – This a place where raw material and production goods are
available for different kind of organisations. It is a important element of market in which
an organisation can easily purchase effective material to manufacturing it is finished
goods. At this market, firm can easily bought effective products and services of raw
material to produce them in finished goods for target customers.
 Labour market – This type of market are basically determine for those candidates who are
looking for job and employment services in market. In this market different kind of
organisation's are run to hire skilled and experienced candidate according to their
working approaches.
Market of each country is different to each others. So for this, Ensoft needs to analyse
competitive market and customers behaviour in different countries to manage impact of global
factors on firm.
ENVIRONMENT
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This is an important factor in which a business organisation operate their functional and
operational activities in effective manner (Cantwell, Dunning and Lundan, 2010). Environmental
factors are directly impacting on business activity ion positive and negative manner. So for this
Ensoft Ltd is working to getting effective approach for this to cope up with them easily.
 Micro environment – These are also known as internal factor of a firm that directly affect
working of organisation. Some factors of micro environment are Customers, suppliers,
management and shareholders etc.. all those factors are controllable for those
organisation can easily build different kind of strategy to getting effective outcomes
easily.
 Macro environment – Impact of these factors are very direct on organisational procedure
and decision making approach as well. These are basically known as outside factors of an
firm such as Political, economic, social, technological, economic and legal factors etc..
For them Ensoft Ltd needs to build effective strategy to reduce its impact on
organisational procedure. These factors are uncontrollable but firm an make a effective
plan for this to minimise its negative effects (Cavusgil, 2014).
Ensoft needs to manage their business activities effectively because external environmental
factors has major impact on business procedure. These factors are hard to analyse because these
are beyond the control of firm, so for this management of Ensoft needs to requires to make
proper strategy to reduce its negative impact easily.
COMPETITION
Theses factors are known as strong rivalry of organisation who serve same services in
market. For Ensoft Ltd it is very importation to make strong research on market to analyse them
and build strong strategy to protect own organisation from those firms. Market research p0lay a
most important role in this to provide market condition, cost effective policy and customer
demand for specific product and services.
M1 Critically analyse that have key factors on business in terms of benefits and challenges
According to Colfax, Rivera, and Perez, (2010) global business environment has vast and
dynamic structure globally. For this an organisation need to conduct effective strategy to
effective outcomes of them in appropriate manner. When a organisation build their structure at
global level, they can easily get desired growth and income easily. But it has different kind of
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positive and negative impact that needs to face. There are some benefits and challenges are given
below -
Benefits
 Through this an organisation can easily attain higher growth and income easily.
Challenges
 For a new organisation it can be hard to build their image in new market, so it can be a
risky factor and challenge for them.
TASK 2
P2 Complexity of strategic challenges faced by company in global market
For business organisation it is hard to build their new structure in different and new
country. So for them it is very important to make specific research to face Complexity of
strategic challenges when they operate their functional and operational activities in new market.
In this procedure external factors of environment are directly affect on working activity of an
organisation. For this Ensoft Ltd needs to build strong strategy to minimise negative effects of
those factors. These factors can be -
Political factors – These kind of factors are basically related to government policy and
procedure of a specific country. It includes tax policy, legal procedure, marketing trade, different
tax policies, political stability, different laws for trade and manufacturing organisation's and
licensing and trade restriction that a firm needs to follow in their business procedure to getting
effective benefits easily (DeJonge, 2011). For an organisation it is required that they make
specific changes in business procedure to getting higher benefits easily. Through this process
Ensoft Ltd can easily build international stability in their policy and procedure to getting higher
benefits effectively.
Economic factors – These factors are related to economic growth of country that can
affected by different kind of organisations easily. These factors are related to Inflation, Interest
rates, Local and domestic economic policies, Trends, Import and export procedure and its ratio
as well as some exchange rate that are usually based on organisational procedure for treading in
international level and market. These elements are very important for Ensoft Ltd to making
specific strategy to protect their organisation from negative impact of these factors. Some
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elements as inflation are negatively impacts on organisational procedure because this is rises
when income of organisation are minimise and expenses are going high quickly.
Social factors – These factors are determine for customer's demand their choice for
specific product and organisational services. Social factors are related to new marketing trends
and fashion that change demand of customers and market directly. As Ensoft Ltd is a software
organisation so for them it is very important to change their procedure according to new
technology and generation (Ferraro and Briody, 2017). Through this process, they can easily
adopt quality services to serve in front of their target costumers. In it, Ensoft Ltd, can make
effective research on market to provides effective services in market.
Technological factors - As per this research report, given organisation is a software firm
which is manufacturing in Networking software. For them it is very important that they using
advance technology in their business procedure to getting effective and desired growth easily.
For this they need to make appropriate research on market and customers to analyse their choice
and demand to providing effective services easily. In this process process advance technology
play a most important role to providing effective growth and income.
Environmental factors - This factor is related to environmental friendly good that affect
business approaches and procedure easily. For Ensoft Ltd it is very important to build those
products that do not affect human health negatively. These kind of things are directly impact on
overall all country. Some times it is needed that Ensoft Ltd create a specific framework to
recycle waste material rather than throwing them anywhere. Main reason behind this is, it can
negatively affect on animals and people's life as well (Gecevska, 2010). In other hand, it is also
impact positively on working approaches of individual person. Environmental friendly product
create values of a software industry and these values are helps to getting higher growth easily.
Legal factors – These kind of factors are related different legitimisation and law that
regulated by government of a country. It includes some elements such as international
legislation, employment law, customer protection act, health and safety law, tax regulation and
further legislation that organisation needs to implement in their business procedure in effective
manner.
Human Resource:- when respective organization wants to expand globally they must
have to meet the requirement of manpowers in that country. The company need to hire new team
members which required additional investment or they can send their exist employees.
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Tariffs and Export Fees:- The company have to pay some type of tariff or fee when
they bring goods into other countries. The organisation must know about these tariffs for the
global expansion so that they can add it into the financial planning or budget.
Mastering Marketing:- Before interring into new market the company must do
appropriate study about the buying process of that country and make marketing plans
accordingly. This will help them to establish the customer base which is necessary to being
successful globally in long term.
Choosing the Right country:- Before entering the company should do enough research
to understand which country is best for them to expand. The organization must study about the
benefits and drawbacks of each country and compare them, then decide which country is
beneficial for them to be globalised.
M2 Critically analyse strategic challenge in context of risk and diversification
According to Hamilton and Webster, (2015) when a organisation expend their structure
globally, they can face various challenges and risk for diversification. For this they need to build
effective strategy and planning top reduce its negative impact easily. For Ensoft Ltd, it is very
important to understand values and importance of all factors and also know what kind of
consequence people can face after adopting their products and services.
D1 Global business environment including opportunities and challenges face by company
Globalisation is a factors that provide positive and negative impact on a firm. For this
they need to build effective strategy and planning to analyse what kind impact an organisation
facing after expended their business on international level. Through global business structure an
organisation can easily adopt various opportunity and challenges that always help them to
provide desired outcomes. There are various challenges and opportunities are given below that a
company face such as -
Opportunities -
 Through this process an organisation can easily getting free trade opportunity in different
kind of countries or in international level.
Challenges -
 Build trade market in new country and different place.
 Create different strategy for business environmental factor.
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TASK 3
P3 Evaluate the influence of globalisation on organisation
For a business it can be a positive when they establish their business structure in different
countries to getting effective growth and desired outcomes easily. In this process globalisation
play a important role that impact positively and negatively on business procedure. It is require
for Ensoft Ltd to influence effective method in their business procedure to getting higher benefits
and approaches easily (Kasemsap, 2014). So for this, Ensoft Ltd needs to creates its own values
and mange them in specific manner. In such terms software organisation needs to establish new
and effective approaches to manage their products that build positive growth in market. There
are some other factor of this approach are given below such as -
Governance bodies: These are most important factor of organisation that influence in
business procedure easily and affect its procedure directly. So for this Ensoft Ltd needs to build
appropriate strategy to getting higher profit. For Ensoft Ltd, it is required that they create direct
and specific changes in their business policy and procedure to getting higher benefits easily. In
the regarding of globalisation, Ensoft limited needs to manage tax policy, treading rate and
interest policy that are regulated by governance bodies of different countries. These factors
influence globalisation of different countries. Government bodies play important role while
market expansion at global level because every nation have their rules and regulation which must
be followed by the enterprise.
Culture and functions: This is a specific process in which Ensoft Ltd needs to analyse
culture and functional activities of a country to getting effective analysis easily. Through this
process they can easily expend their business structure in different country in appropriate
manner. These activity of a firm help them to maximise their profit and growth in through its
market position and customers demand. When Ensoft Ltd established their business in new
country then culture and function of this country get influenced in exact way (Laudon and
Laudon, 2015). Every nation have their own culture while doing business at global level Ensoft
have to do proper analysis of these factors. So that, they can produce as per particular area
cultural people.
Leadership: This is a effective approach of organisation which is always help to build
effective guideline for employees of organisation. When a organisation looking to expend their
business in different country then they needs to create skilled workforce who help to achieve
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their objective and goal easily. Through proper leadership message or any important information
related to global level will be easy to transfer. Leadership is a quality approach for an
organisation that will help Ensoft Ltd to make effective strategy and decision to getting
organisations objective in appropriate and effective manner. Their is requirement of proper
leadership to the employees of Ensoft while to business at global level.
P4 Influences of ethical and sustainable globalisation on organisational functions
Earlier globalisation was not supported by many people because they feel that it is not
sustainable. But the concept of ethical and sustainable globalisation is now getting popular due to
its positive impact on organisational functions. Ensoft Ltd is known for developing networking
soft-wares. They are a medium sized company this does not means that they do not get affected
by globalisation. Below is influence of sustainable as well as ethical globalisation on the function
of enterprise:
Better customer service – This organisation has many rivals who are running their
business globally. Ethical globalisation give a positive business environment to the companies
(Louhiala and Kankaanranta, 2011). Through this, Ensoft Ltd can easily provide effective
services to their customers to getting higher growth and profitability easily in the global market.
This process of organisation will help in provide appropriate image and goodwill in global
market to getting higher growth easily.
Positive corporate culture – Influence of ethical sustainability is helping to expend
business structure in market through new product services. For this Ensoft Ltd needs to create
positive working environment in their business to getting higher benefits easily. Positive
corporate culture always helps build motivation and positive working approach for employees.
Through this positive culture process the respective company can easily getting higher business
advantages and future objectives in a effective manner at global market.
Reduction of financial terms – For a business firm it is important to manage their
financial funds and terms in effective manner to getting effective and desired outcomes easily.
In this process they need to increase their assets valuation and reduce amount of liabilities that
helps to improve their financial terms easily (Peng, 2016). Maximisation of liabilities of an
organisation leads unethical activity which will directly impacting on organized formulation in
doing appropriate activity and business terms easily. So if the organization want to expand
globally they must have to manage their financial funds.
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Effect on recruitment and selection process – For a business organisation it is required
that they analyse their employees skill in effective manner to providing appropriate training and
development easily. At some times organisation needs to recruit new employees in their firm
who helps them to attain business activities in effective manner. In this, human resource
management of organisation help to build effective recruitment and selection process to getting
higher business advantages easily. So if the respective company wants to grow globally, then
they have to hire new employees according to requirement or they can train their existing
employees.
Influence of both factors(Customers services and recruitment and selection) on
organisational functions -
 Though this, employees of Ensoft can easily provide quality services to their customers
on the bases of their requirement and need.
 These factors assist in getting higher competitive advantages from target market.
M3 Global market influences in appropriate theories and model
According to Simic and Dimitrijevic, (2012) Global market is play a most important role
for an organisation that wants to expend their business in one country to another. For this Ensoft
Ltd necessarily create positive and effective working environment in their enterprise to acquiring
high profit easily. In this process, software organisation as Ensoft Ltd needs to set up new and
impressive activities to manage their products and its quality that build positive growth in
market.
D2 Critique strategies that can be adopted by organisations
For an organisation it is requires to adopt effective strategy and planning process to deal
with global and external market environment easily. For this, Ensoft Ltd needs to supply
appropriate services to their consumers for acquiring higher growth and maximum profitability
easily. In this process leadership approach and managing business activities helping to expend
their business structure in new and target market easily.
TASK 4
P5 Evaluate ways, decision making can work effectively in global manner
For a business organisation it is requires that they build positive decision making process
for their organisation to getting higher benefits easily (Tarique and Schuler, 2010) in the global
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market. In it manager of Ensoft Ltd need to build appropriate approaches to making effective
decision according to different kind of situation. Decision making skill of a leader and manger
helps to provide effective direction and guideline to employees and this is helpful for overall
organisation on the prospective of global expansion. There are different kind of decision
making ways are analyse that helps to determine working approach effectively in global manner
such as -
Analysis and examine the issues: Before taking any decision it is require that a manager
and management staff of organisation analyse different issues that rises and impacting on
business procedure directly when the company is expanding on global market. These factors and
issues are needs to analyse because they affect business procedure in direct and effective manner.
Through this they can easily take appropriate decision to solve them in well manner which is
important for the business growth decision.
Determine solution: After analysing different problems of firm, this is required manager
of firm can take effective decision to solve them easily. All those things are directly affecting on
judgemental procedure. After analysing problems of organisation, higher authority can easily
provide appropriate solution that are require on timely bases. It is the duty of manager to take
appropriate decision and solve the problems for the expansion of the business.
Evaluate the effectiveness: This is also a procedure that evaluate different ways of
decision making to work effectively or in global manner. Analysis effectiveness of solution for
different kind of problems identify different ideas in right way. Through this problem and issues
can be resolved by various solution or in creative manner (Trompenaars, 2011).
In order to enhance productivity of business and achieve sustainability at marketplace,
Ensoft Limited Company concerns more on its decision making processes. For effective taking
decisions related to business policies, its managers needed to concern on ways by which it could
impact in following manner:-
Programmed decision making: This kind of decision can be defined as tried and tested
process that is mostly taken to obtain better outcomes. Therefore, by working in collaboration,
managers and leaders of respective company can take programmed decision through evaluating
past performance of business. This would help in taking better decisions for achievement of aims
and objectives in given period of time.
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