Global Business Environment Analysis: Clif Bar & Company Report, 2024

This report delves into the global business environment, using Clif Bar & Company as a case study. It begins by identifying key drivers of global trade, including cost, market, environment, and competition, and then analyzes the strategic challenges Clif Bar faces in international markets, such as compliance, volatile raw materials, cultural differences, environmental impact, and technology integration. The report further examines the impact of globalization on Clif Bar's governance, structure, leadership, culture, and functions, as well as the influence of ethical and sustainable globalization. Finally, it explores effective decision-making processes and various internationalization routes Clif Bar might adopt. The report offers a comprehensive overview of the complexities and opportunities within the global business landscape and provides valuable insights into the strategies companies can employ to navigate them successfully.

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................2
P1 Key factors of cost, market, environment and competitors which drive global trade and
commerce....................................................................................................................................2
TASK2.............................................................................................................................................4
P2 Complexities of strategic challenges which face by Clif bar &Company in international
environment.................................................................................................................................4
TASK 3............................................................................................................................................5
P3 Impact of globalisation on governance, structure, leadership, culture and functions of Clif
bar &Company............................................................................................................................5
P4 Impact of ethical and sustainable globalisation on organisation functions at Clif bar
&Company .................................................................................................................................7
TASK 4............................................................................................................................................8
P5 Various ways decision making which can work effectively in international context............8
P6 Determine and articulate the different routes to internationalisation which Clif bar
&Company may adopt................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES ..............................................................................................................................11
1

INTRODUCTION
Global business environment can be signifies as a place where various kinds of companies
are working in order to earn more profit and gather more market share as well. It is a wide
environment where any company enterers once it is set up properly in their home country. In
global level, a company can not only work in one country but can expand their business in
multiple no. of countries as well. It is the responsibility of business managers of the organisation
to understand the market properly and analyse that where are the opportunities available where
company can go and develop their business in an effective manner (Apăvăloaie, 2014). There are
various kinds of factors which are present in the global business environment which have a deep
impact on the functioning of the company. The organisation which will be referred in this report
is Clif bar &Company. This organisation is producing organic food materials and drinks since
1992 for their customers. This assignment will include key aspects of cost, market, environment
and competition that helps in driving the global commerce. Also, the various kinds of challenges
that will be faced by the company while doing their operations will also be discussed in this
report.
TASK 1
P1 Key factors of cost, market, environment and competitors which drive global trade and
commerce
Globalisation can be described as a process in which a company comes out of its native
nature country and starts their business n some another country in order to develop themselves in
the market. Here, basically integration happens between people, company living in different
economies of nation if it s understood in context with an organisation than it will relate it with
expansions. In this basically the company tries to create an environment where they can grow
their business in effective and efficient manner so that it can grow and develop in the market
(Axelrod and VanDeveer, 2014). Once a company enters into international market then it is
called as multinational organisation. Technology also plays a major role in developing the
concept of globalisation in economy and with the help of transportation as well they have got
support in interconnection of the economies on various social and economic grounds. If Clif bar
&Company will also think of expansion in the international market then they are required to
consider various factors which will help the company in doing expansion effectively. Brief
descriptions of key drivers of globalisation are as follows:
Cost: It can be determined as an amount which is required to be paid by the company to
expand their company in the international market. This is very essential part of the expansion
process and is required to be considered while making the budget of the company itself
otherwise company can invest more money than required and can go into losses as well (Belás
and et. al., 2014). The company is required to invest their time in this process and ascertain the
correct process and make sure that they are putting money in right idea and will be in a profitable
position at later period of time. Once the amount is determined then company make use of it in
purchasing heavy machineries and equipments to produce various kinds of products for their
customers. Direct costs involve insurance, rent; inventories etc. as they involve direct relation
with the amount of units produced and the indirect cost include those expenses which does not
have any direct connection with the quantities produced. If the company will develop in global
market then they will earn more profit and improve its productivity as well which will
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automatically reduce their cost of production.
Market: Market can be defined as a place where the company is finally selling their products
and services to their respective customers. The more immersion of the present market is the
significant explanation behind development of globalization. For example an association is doing
its task in the economy of United Kingdom and have achieved fair development. Preceding this
circumstance an association does not have any development openings hereafter organizations
developed the worldwide level to accomplish a superior productivity and development. An
association needs a correct chance to venture into specific market with right procedures and
showcasing so better motivating forces could be accomplished (Belás and et. al., 2015).
Environment: This can be considered as one of the most crucial factor through which the
company is doing their operations in a corrective manner. The major factors which are
considered here is technological and political drivers and both of these factors are considered as
the base of the globalisation concept. The commercialisation and liberalisation of economy have
made it reasonably easy for administration to start their business into other nation with their
products and services. An association with the assistance of computerized instruments can
dispatch themselves in more up to date showcase in an advantageous way. The legislature have
made it to a great degree simple for association to come and direct their assembling forms
because of various advantage it provides food. A business can be for all intents and purposes
show in the nations through methodologies, for example, e-organizations and internet business.
Competition: The competition can likewise be dealt with as one of the significant drivers for
globalization. There is a noteworthy ascent in the between firm rivalry which convinces a
business into propelling their organizations at worldwide level. This activity of propelling at
universal level is additionally supported by FDI's and interdependencies among countries
through exchange (Carneiro and Brenes, 2014).
TASK2
P2 Complexities of strategic challenges which face by Clif bar &Company in international
environment
Apart from their size and structure, there are various kinds of challenges which are being
faced by the company while doing their operations at the global level. Clif bar & company is an
organisation which is carrying out its operations in the market of UK, Asia and some African
region. There are various kinds of elements which are having an impact on the working of the
company in the international market. These actors are as follows:
Compliance and Regulation: It can be considered as the biggest roadblock which comes in the
way of the management of any company while doing their activities. It is compulsory for them to
follow all the compliances and regulations in a proper manner because then only their activities
will be considered as legal. This will also given them the permission to sell goods and services
freely to their customers. It is to be noted that each and every company is having their own laws
and rules so if company is having their office in various countries then they will have to follow
different rules at different places (Cavusgil and Knight, 2015). The other part attached with it is
associated with the challenges company faces while doing import and export of goods and
services. During this process, there are various types of laws which are being made by the
government and are required to be followed because then only goods can be transported from
one place to another.
Volatile nature of raw material: This is considered as a very familiar challenge which is
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being faced by the small or medium sized companies more often in the markets of United
Kingdom. Actually companies doesn't have any choice so they have to follow the prices which
are being followed in the market so since they can't change the prices on their own. With this,
they will have to face the volatile nature of the market in an ideal manner.
Culture and language: It is very important for the companies to do competition with
each other in an effective and efficient manner on the basis of the culture prevailing in different
nations. There are various kinds of companies small sized companies who are having the
responsibility to handle the query of the company in a rightful manner (Cohen and Kietzmann,
2014). For ex. Clif bar is already doing their operations in markets of Asia and Africa. Therefore,
there will be so many operations which will be conducted by them so they will need a competent
team who will help them in doing all these operations in an effective and effective manner.
Environmental Impact: It is very important for the companies to follow all the
environmental norms in the country where they are operating because if it will not be followed
there will be many environmental issues which might arise in the company later on. It is to be
settled that establishments should incorporate sustainability in their transactions if they want to
keep their position in the market for longer period of time. Clif bar & company is also doing
their operations in an effective manner and are making sure that they do not cause any harm to
the environment and making use of the raw materials in a proper manner. The strategies which
will be formed by the company can be used by them in recycling packaging material and toxic
emission as well.
Technology and communication: It can be said that if the company is more dependent on
technology then it is not good for them because then they will not be able to survive if the
technology will not work. Also, there are various kinds of technologies which are difficult for
implementation and execution so company should make sure that they make use of it in a proper
manner (Crane and Matten, 2016). Communication is also another factor which is required to be
taken care of because if the communication is not done in the company in an appropriate manner
then they will not be able to achieve their goals and objectives in a proper manner.
TASK 3
P3 Impact of globalisation on governance, structure, leadership, culture and functions of Clif bar
&Company
It can be identified that if companies will be working in a global market then it is obvious
that they will face various types of complexities with which they will have to deal in an effective
manner. The various aspects which are connected in this are leadership, functions, structure and
most importantly culture. Therefore, organisation should make sure that they follow all these
aspects in a proper manner so that suitable results can be achieved by them (Doh, McGuire and
Ozaki, 2015). The influence on various factors will be defined in a brief manner-
Leadership: Leadership can be defined as a kind of approach which is being followed by
the company to direct and lead the employees in the correct direction. It is very necessary that
the leader should possess various kinds of positive qualities so that they can perform their duty in
an effective manner and motivate the employees as well. Through this, operations of the
company will be conducted in an effective way and goals and objectives of the company will be
achieved in a proper manner as well. If companies want that they should do their operations
properly then for this they will have to give their concentration to their team members so that
they can perform with their full capacity and help the company in many ways. Also, if company
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wants to set theory base in the international market then they will have to choose effective
leaders for the company who can guide them properly and help them in performing their
functions in different country.
Organisational structure: It can be defined as a structure in which the management is
performing their operations in a proper manner. If the company will think to launch themselves
in the international market then they will have to design an appropriate structure for them which
they will follow in that country. This will be very effective as all the operations of the company
will be completed within specified time and customers will also be satisfied with them. The
company is having options to either redefine their structure it form a new one because then only
they will be able to function in an effective manner.
Functions: Once the company enters into international market then there are various
kinds of changes which will be faced by the company as their way of working will also change.
After this, they will become more dependent on the technologies which will be available in the
country. The main reason behind using this is that they can reduce the cost of the goods and
services which will be produced there so that the company can earn more amount of profits and
thus achieving higher position in the market. If the company will do this kind of activity in a
proper manner then it will be advantageous for the company (Epifanova and et. al., 2015).
Culture: It can also be termed as an element which will have a significant impact on the
functioning of the organisation. Through the process of globalisation, the organisation will be
able to understand the cultures of various companies in a proper manner as this will help them in
various forms. With the implementation of technology, employees will get the time to interact
with each other and thus relationship between them enhances. If companies will respect the
culture of different countries then it will be matter of dignity for the company as they will gain
respect there and will be able to survive for the long period of time as well (Ferraro and Briody,
2017).
HOFSTED'S CULTURAL DIMENTIONS THEORY
GEERT HOFSTED defined five cultural dimension theory for cross culture
communication. A organisation enhances its business across the countries and every country has
its own culture and also employees that are working in organisation have their own culture. This
theory helps to understand how these differences effects the working of the organisation . These
cultural dimensions are defined as :-
• POWER DISTANCE INDEX : PDI defines distribution of power according to which in
an organisation power to the members of the organisation is distributed unevenly at lower
level, by taking a higher degree index a clear hierarchy is established.
• INDIVIDUALISM VS. COLLECTIVISM : This index works on the behaviour of the
people to be in a group or looses its tie with people and survive individually. It focuses on
“we” by removing “I” as it gives a team spirit and combines goals of all employees in the
organisation.
• UNCERTANITY AVOIDANCE : Business organisation is full of uncertainty as any
event which is highly unexpected may take place. A business to survive in this fast
changing environment must have strategy regarding the adaptation of some unforeseen
changes .
• LONG TERM VS. SHORT TERM ORIENTATION : In long run changes in the
environment are adopted and in long run it is necessary to solve each problem for
economic development nut in short run every changes can not be adopted and economic
development get suffered.
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• INDULGENCE VS. RESTRAINT : Indulgence is defined as a society which sets its
human to be free to be happy and enjoy life and have fun. Whereas restraint is a society
which have certain strict norms and it controls life and emotions and do not set them free
to act according to their feelings.
P4 Impact of ethical and sustainable globalisation on organisation functions at Clif bar
&Company
Sustainable globalisation can be refereed as an approach which tells the manner in which
the business will expand themselves in the large scale. It is noted that the attention of sustainable
globalisation is being given to the overall ecosystem which consists of human beings,
communities and natural resources so that effective future can be formed. Other than this, ethical
globalisation focuses upon integration of human right forms so that the efforts which is being
done by the company to improve their workforce will be supported.
Clif bar & company is a type of company which is doing their operations in a proper
manner and they are not keeping any direction relation with the quantities produced and the
factors which are included here are personal, Administration and conveyance costs. One of the
main advantages which is being gained by the company by launching themselves in the
international market is that they have attained efficiency in cost related matters. Through this, the
company is getting an opportunity to gain competitive advantage in the market and helps them in
providing goods and services to the customers at an affordable prices.
They are also making use of green friendly approaches so that sustainability in the
environment can be obtained. Now, the cafe is making use of organic products so that health of y
the customers can also be maintained and they are doing their operations in a proper manner as
well (Huhtala and et. al., 2014). This medium sized enterprise is known to save approximately
90,000 pounds of plastic which costs around $400,00 yearly. The impact of various measures of
sustainability is very high. These can be described as follows:
Higher costs: In this element, it is discussed that since the company is shifting from their
regular products to the organic products then it is obvious that the company will have to include
more amount of cost in their budget because the organic materials are available at a very high
rate in the marketplace whereas the plastic material will be available at a very cheap rate so it
this method will cost more to the company. But the higher cost will have a direct impact on all
the business functions which will be carried out in the company but the concentration will be on
reducing the wastage of the company as well (Kasemsap, 2015).
Harnessing latest technology: It is being noticed that clif bar and company are making
use of various kinds of technologies to conduct their operations like bar code scanning and metal
detectors. If they want to organically produce and deliver their products and services then it is
required that they should implement advanced supply chain system so as to enhance
sustainability in the organisation.
Workplace environment: It is being said that if company will implement the
sustainability expansion then they will impact the workforce of the company as well. Since the
man aim of every company is to develop themselves in the market so for this they will have to
focus on their employees as well because they are the ultimate ones who will perform the
operations of the company. The efforts which were being taken by the company were like they
were told to adopt a greener approach rather than travelling individually to work.
Lesser requirement of marketing approaches: Clif bar & company have been flourishing
in forming sustainable repute in the marketplace and come out to be top organic product supplier
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in the market. So, they do not need to make use of any kind of paid medium to promote their
products and services in the marketplace. This will help the company in making a good image in
the marketplace and thus promotional activities are not being utilized.
TASK 4
P5 Various ways decision making which can work effectively in international context
Decision making can be defined as an approach which is being implemented by the
company so as to choose the best alternative among all the options available with them (Kolk,
2016). The option which will be selected should be the best so that it can solve all the issues
which are prevailing in the company. In the referred company, they are also facing various kinds
of issues in arranging the resources for their company like procurement of raw material,
customer relationship etc. There are various kinds of approaches which will be utilised by the
company in doing decision making. These are:
Unilateral decision making: One of the major benefit which can be applied by opting
this approach is that decisions will be conducted in a quick manner and the company will also be
able to handle all types of complex situations in the market as well in an effective manner.
Ad hoc decision: This approach will be given much importance because here the
employees are also involved in this process and the stakeholder are not given much importance.
Whereas leaders are also having a right to bring changes in the teams that are working in the
company and can modify the decisions taken by them as well (Peng, 2016).
Administrative decisions: These kind of decisions are being taken after long process and
discussion and no workforces are being included by the management in this. It is beneficial to
them in various forms like through this in-depth information is being included about all the
subject topics. The information obtained can further be leveraged to improve decision making in
the future.
Collaborative decision making: It can be considered as one of the most effective factor
for the decision making because this will help the company in taking right decisions for the
company. This one takes more input from the stakeholders and leaders as well.
MCKINES 7S MODEL developed by business consultants Robert H. Waterman , Jr and
Tom Peters in the 1980s. This is a management model that works on organisational effectiveness.
According to this theory an organisation needs to work on its seven internal factors to become
successful. These 7S are system, skills, style, staff, structure, strategy and shared values. These
seven elements are determines below as :
• SYSTEM: A well set procedure in the organisation for distribution of its resources.
• SKILLS : Every organisation have different capabilities and strength in some of its core
areas .
• STYLE : It is a format or pattern of organisation and human resource working in
organisation to react in a particular manner.
• STAFF : Human resource capital and their educational qualification.
• STRUCTURE : Reflects coordination and division of responsibility and work in the
organisation.
• STRATEGY :A business plan that focuses on increasing competitive strength and helps
in setting future goals.
• SHARED VALUES : Each business organisation work on certain values that helps
organisation to create its different image for its consumers.
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Main objective regarding this model is to continuously increasing organisations
performance and always be adaptive to the changing environment and by focusing on all these
7s organisation is much confident to introduce a new strategy.
P6 Determine and articulate the different routes to internationalisation which Clif bar &Company
may adopt
The various routes of internationalisation are being discussed as:
Exporting: Exporting is referred as an progressive approach through which operations of
an organisation can be expanded in the international market. This strategy will help the company
in selling the goods and services in the market without being present their physically. Here, the
production of clif bar and company will be the same as above and can successfully manufacture
organic and nutritional bars to other nations.
Relocation: This is a kind of approach which is being used by the companies to expand
its operations in a global level. Here, only a part of business is transferred to another country
where more sales are required to be made (Savrul, Incekara and Sener, 2014).
Strategic alliances: Here, the company is sharing their approaches and efforts in
satisfaction of needs of the particular community. Clif bar & company can form alliances with
organisation dealing in the same segment so that so that expertise could be pooled and better
products are offered.
CONCLUSION
As per this report it can be analysed that Global environment is worried about various
elements which specifically influence to the home climate of an association. Condition is
principally characterized as different angles, for example, inside and outside which
straightforwardly influence on business activities and its capacities. Universal exchange is
predominantly characterized as the trading of capital, items, items or administrations among
individuals and association at worldwide level and diverse countries. BMW association has been
exist in various countries so by this they can think about number of methodologies while
growing their business tasks and its capacities. There are diverse variables which
straightforwardly affect on business in the event that they are moving towards expansion of
organization which are exchanging the worldwide market region, so it is credible for happen in
various number of issues identified with globalization. At the present day and age, it is simple for
achieving economical achievement or development in the focused environment.
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