Strategic Challenges and Globalisation Impact: A&R Cambridge

This report provides a comprehensive analysis of the global business environment, using A&R Cambridge Ltd as a case study. It begins with an introduction to the business environment and highlights the importance of international expansion for business success. The report then delves into key factors driving global trade and commerce, including cost, market, environment, and competition. It examines the complexities of strategic challenges faced by firms in the international market, such as political, economic, social, technological, environmental, and legal factors. The report further evaluates the impact of globalization within organizations, considering ethical and sustainable aspects, and explores effective decision-making in a global context, along with different paths to internationalization. The conclusion summarizes the key findings and implications for A&R Cambridge Ltd.

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Major key factors which drive global trade and commerce..............................................1
TASK 2............................................................................................................................................3
P2 Complexity of strategic challenges which are faced by firm in international market.......3
TASK 3............................................................................................................................................5
P3 Evaluate the impact of globalisation within organisation.................................................5
P4 Effect of ethical and sustainable globalisation on organisation operations......................7
TASK 4............................................................................................................................................9
P5 Evaluate ways , decision making can work effectively in global manner........................9
P6 Ascertain the different path to internationalisation.........................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business environment involve with both internal and external factors which directly
affect on making decision procedures which are exist in united kingdom. It is necessary for
business enterprise is to develop their business structure at internationally for acquiring effective
success and growth in the large market place. Along with this, business environment is the
combination of two various factors which impact on operational and functional actions of an
enterprise. Apart from this, every organisation required to operate their business functions and
activity in international surroundings for acquiring high profitability and development in
effective manner. It is also required that company analyse and examine different factors for
expand their business operations and activities in other locations (Adger and et. al., 2013). This
project is based on A&R Cambridge Ltd which is large British manufacturing company for
providing Hi-Fi techniques which is based on different goods and products. It is small and
medium term organisation. The main purpose of this report is to understand different key factors
for global trade, difficulties in strategic condition which has been faced by firm and various
factors which directly affect on globalisation.
TASK 1
P1 Major key factors which drive global trade and commerce
Globalisation is the trend which enhancing interaction between people on international
level due to advances in communication and transportation applications. Globalisation involves
various products and services, economical resources of capital, data and methods. It is the free
movement of goods and facilities and most of the people in all the world impact by this system.
There are various key factors which assist in providing effective services and also make
contribution to manufacturing company in proper manner. It is that process which includes four
different components such as cost, environment, market and competition that is called as
international trade and commerce factors (Arends, 2014). Such aspects are need to manage and
maintain in proper manner and need to usage in easy for acquiring potential results or outcome.
There are some elements which are describe as follows:
Cost:
It is one of the most essential factors which assist in increasing different marketing
activities and also make customers loyal towards their products and services. Along with this,
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employees and management of A&R Cambridge firm are liable for developing effective and
attractive amount of their goods for building strong relationship with their customers. The cost of
product is working as promotional method which assist in developing trust and loyalty in buyers
mind in easy manner. Cost is divided into two various factors that are as follows:
Direct cost- It is generally determine as production facilities of particular goods and
services within an enterprise (Brouthers, 2013). It is very effective which consider for product
development and production for specific process.
Indirect cost- Such type of cost is not responsible for determining cost objective of the
product. This can consider different type of expenses and management activity of an organisation
in front of customers.
Maximising investment work as a motivator for numerous organisation toward large sales
amounts. An assessment of cost and global opportunities can lead A&R Cambridge Ltd to
complex decision in regard of consumer segments, market, positioning of product etc. which
need to mainly focus by organisation.
Market:
It is essential element for company and customers in which they introduce various type of
products services in large market place. In this factor, they can exchange products in the form of
cash which help in building strong relation in easy manner. There are some key elements of
market which are describe as follows:
Raw material market- It is that place where different type of organisation which are
choose raw material for convert them in finished products properly. There are various material
which are available as per the customers as well as market demand which help in developing
production procedures at easy manner.
Working class market- Such type of market are called as labour class market in which an
organisation select or hire several talented and skilled candidates according to their abilities and
knowledge (Cantwell, Dunning and Lundan, 2010).
Customer in more advanced economies is emerging more similar education term,
lifestyle, income, aspiration and utilisation of leisure time. Having an international trading
strategy does not refer to entire global market existence of organisation but render more
frameworks and structures to thrive and create revenues or sales in marketplace that is optimised
by A&R Cambridge Ltd.
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Environment:
It is one of the most necessary factor which directly affect on organisation process and
functions in proper manner. Environment is totally separated into two various components that
includes internal and external which affect on making decision procedure of company
effectively. In A&R Cambridge Ltd require for building attractive strategy which help in
reducing impact of such factors on business. Some factors are described as follows:
Internal environment- It is effective factor which directly exist within an organisation
that includes employees, management, administration, employers and investors. Firstly, internal
factors assist in affecting on working form and they have effective process of A&R Cambridge
and it is controllable and by this firm can easily manage their all strategic planning.
External environment- It is also known as macro environmental factors which directly
affect on making appropriate decisions of the company (Cavusgil and et. al., 2014). This will
includes PESTLE analysis which affect by external factors on firm in any manner. So A&R
Cambridge need to adopt all major rules and norms which are made by country government.
Increasing customer mobility and wealth, rapid transfer if information across borders
technological revolution and acceleration in service and product demands as created advanced
communicative environment and competitive business platform. In order to refrain within
country and prosper in such environment, this is requisite for A&R Cambridge Ltd to manage
global trading environment.
Competition:
These are some rivals and competitors which provide similar type of goods to their
customers and damage the goodwill of the company. So, A&R Cambridge require to develop
effective strategy for building attractive value of market which attract large number of
customers. Such competition include strong competitors and substitute manufacture firm which
also given same quality based facilities to their desired buyers. To remain more competitive,
international competitors need to intensify their marketing at global level through addressing to
refrain their benefits and create more vast market share. A & R Cambridge need to manage their
affairs at international level in regard of trading in global market and manage more competitive
recognition with huge revenues.
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TASK 2
P2 Complexities of strategic challenges which are faced by firm at international market
A&R Cambridge Ltd is British manufacturing organisation which offer effective services
in the large market place but they mainly deal with small scale firm. It is necessary for them is to
understand the macro environmental factors of market area which are acquiring growth and
success in easy manner. In such procedure, company can face difficult strategic challenges which
required to execute effectively for reducing its negative consequences in simple manner (Colfax,
Rivera and Perez, 2010). So they need to develop and make proper research for analysing
complex factors of managing strategic challenges when A&R Cambridge Ltd smoothly run the
whole business operations and functions for targetting new customers and market. There are
different external factors of market which determine that are discussed as follows:
 Political factors- Such factors are related to rules, government, norms and laws which
has been operated and regulated different type of an enterprise (De Jonge, 2011). For
A&R Cambridge Ltd which is very essential for analysing such factors such as marketing
commercialism, political orders, legal activity, tax plan of actions, various rules for
producing firms, different tax policies and licensing procedures which require an
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Illustration 1: PESTLE Analysis, 2017
(Source: PESTLE Analysis, 2017)

organisation if they can implement their process within international market place. This is
essential for A&R Cambridge which is important for understanding all such companies
norms and rules in their effective procedures for making potential goals and targets in
easy manner. While trading internationally, an organisation like A&R Ca bridge need to
consider all the determinants existing in the political environment of distinct countries
which vary nation to nation. This is a complex tasks as due to this, an organisation has to
face numerous challenges as well. Economic factors- Such factors are based on stability of economic of the country which
directly affect by using trade and commercialisation within the market. This is required
for developing and building their appropriate process as per the situation of economic of
the nation which can affect their business operations and its major functions. Economic
aspects includes inflation, interest rate, economic growth, wealth taxation, domestic and
global policy of economy which is generally based on trading procedure of the firm.
Different nations has distinct economical conditions and purchasing capacity of
customer. Hence, this is most influencing segments as company has to come up with
required modification in their services and plan as per the trading counterspy's context
while operating business globally. Social factors- These are those factors which are related to culture and current trend of
economy which should be followed by people (Ferraro and Briody, 2017). In A&R
Cambridge Ltd which is essential for analysing different social factors of the country
which can directly impact on their marketing process in easy manner. Within
globalisation, social factors play an essential role due to this it is totally based on
customers as well as market needs and requirements and also serve various goods and
services among desired buyers. Each nation as distinct interests and preferences such as
UK has different culture than China. Hence, this create more complexities for A&R
Cambridge while trading internationally as company vary activities as per the referred
organisation. Technological factors- A&R Cambridge is the production company which provides Hi-
Fi techniques based commodities. For an organisation, it is important for executing A&R
Cambridge Ltd technological factors which always build effectiveness for getting higher
profitability and productivity within an organisation. Such type of terms will introduce
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new and effective policies in firm so they easily connect them for generating more
profitability. Due to advancement in technologies, A&R Cambridge will not face major
challenges or complexities as customer prefer those organisation who perform operations
with advanced technologies in business. Environmental factors- This is that factor which is totally based on environmental
elements of the nation which can directly affect on business operations and its functions
in proper manner. In international business environment, this statement is directly impact
on production and manufacturing services for creating difficulties. An enterprise require
to understand and analyse for understanding products and services which does not harm
environment of the specific nation.
 Legal factors- This is mainly related to government policies and rules which can directly
affect on business operations and functions in easy manner. A&R Cambridge Ltd require
to understand all major rules, laws, norms, ethics and acts which can regulate and operate
all trading organisation in effective way.
Strategies of organisational structure:
Cost leadership – This will help in establishing a competitive advantages with having lower cost
of business operating and regulating within the industry. Cost leadership is mainly driven by firm
related size, efficiency, scale, scope and cumulative experienced.
Focus and differentiation – The differentiation refrs as creating quaklity based products and
services in effective manner on the other side, focus are offer specialised services in the niche
market area.
Value chain – This will help in set all functions and activities for operating specific industry
performance for delivering effective goods and services in the large market area. A&R
Cambridge Ltd required to maintain and manage their business operations and its effective
functions.
TASK 3
P3 Evaluate the impact of globalisation within organisation
Globalisation is that process where an enterprise begin their working activities or
functions in various nations (Gecevska and et. al., 2010). So these type of elements can impact
negatively on different activities of company. A&R Cambridge Ltd need to create and form
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effective strategies for acquiring higher profitability and growth in easy manner. It is an
production organisation and it is require to manage and maintain their activities within the
market. The company require to make and develop their personal values for manage them in
specific manner. There are certain factors of such procedures which are as follows: Cultural and functions- It is one of the most important components of the nation where
culture and functional activities mainly determine on their roles (Hamilton and Webster,
2015). A&R Cambridge Ltd required to evaluating that they can maintain and manage
their whole business activity as per their culture and functional activities of the country.
Such kind of elements create direct impact on business process which are appropriate for
making and implementing proper strategies of the company. Globalisation vent the
communication and transportation of different cultures and numerous functional
techniques within the organisation that assist in introducing an organisation such as A&R
Cambridge and country to create changes in their core services and products accordingly. Leadership- It is necessary for business activity which require to be done in proper
manner for encouraging some employees in easy way. Leadership process required for
expanding their business operation and its major functions in different countries. These
type of functions and activities are need to achieving desired goals and targets in effective
manner. It is specific concept which assist in increasing skills and abilities of workers for
accomplishing potential targets and goals of an organisation. This procedure will help in
developing and making effective decisions for making new structure within large
marketplace. Leadership techniques and methods managed on global trade aid
organisation in adopting such technologies, techniques and approaches of leadership
which are entertained or optimised on global level. Henceforth, the company make
changes as per the international trade to meet the standard criteria. Thus, globalisation
influence the leadership factors of organisation as well as nation.
 Governance bodies- It is one of the most essential factor of the company which executing
in various types of laws and rules for the company. On the other hand, governance bodies
are higher authorities of nation and firm need to evaluate all those rules and regulations
which build appropriately in better manner. These factors are directly impact on company
process and they will require to understand their values for developing best suitable
strategy for getting high business benefits. Globalisation has great influence on
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governance bodies of a company as the company who trade in international market, has
to come up with the policies and plans of distinct country in which they deal in.
There are some other points which describe poor and rich people gaps that are as follows:
Exploitation of resources- This is necessary for company is to properly manage and
maintain their all resources for gaining maximum profitability and productivity. So this can
directly affect on business enterprise which create harm for all functions and activities in
negative manner (Kasemsap, 2014).
Unfair trade- The unfair trade practices refers to that trade practices whose main
objective is to promoting sale and usage of delivering products and services, adopt partial
techniques and methods in effective manner. This is directly impact on business operations and
activities in badly manner and sometime this will help in maintaining selling process with
customers and provide them better knowledge about specific goods.
Increase in wealth- In this factor, it is clearly state that with the help of globalisation,
company can enhance their wealth by selling different products and services for their
international customers in proper manner (Laudon and Laudon, 2015). This will assist in
increasing their wealth if they does not bias among people according to their age, gender, caste,
religion etc. ad does not partial among rich and poor individual.
World economic growth- Economic growth is increasing the inflation which adjusted
market value of specific goods and services that manufacture by an economy in all given time
frame. With the assistance of globalisation, it will help in enhancing international growth of firm
by dealing with different type of organisation.
The positive and negative impact of globalisation:
Disparity between rich and poor nations – This will help in clearly describing the picture
of rich and poor people with the assistance of globalisation. Alos they required to maintain all
major issues and problems in better manner.
Unfair trade – This required for delivering the specific products and services which are
offer to their customers if they are make complaint about their product so company need to make
proper changes and alterations.
Increasing in wealth – It is the positive point in which the globalisation help in enhancing
the company income and profitability in effective manner so by this they can easily build good
picture of the company in the large market place.
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