Exploring Global Business: Drivers, Challenges, and Expansion Routes

This report provides a comprehensive analysis of globalisation's impact on businesses, focusing on Mr. Biggs, a Nigerian fast-food company, as a case study for expansion into the UK market. It begins with a PESTLE analysis, examining political, economic, social, technological, environmental, and legal factors influencing the business environment. The report identifies key drivers of globalisation, such as technology advancement, intense competition, industrialisation, lower trade barriers, and financial liberalisation. It also evaluates the impact of digital technology on globalisation, highlighting its role in reducing time barriers and improving communication. Furthermore, the report discusses the challenges and complexities that internationalisation brings to an organisation, including cultural differences and currency rate fluctuations, and provides recommendations for addressing these challenges. The report concludes by emphasising the importance of adapting to societal norms and utilising protection tools to overcome currency-related difficulties, ensuring long-term sustainability in the global marketplace. Desklib provides past papers and solved assignments for students.

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Part 1 ..........................................................................................................................................1
An analysis of the key driving factors of globalisation:.............................................................4
Impact of digital technology upon globalisation- ..................................................................5
Evaluation of various challenges and complexity brings to an organisation. ........................5
Recommendations on approaching from the challenges:-..........................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8
INTRODUCTION ..........................................................................................................................9
Evaluating the influence of globalisation upon business governance, leadership, structure,
culture & functions......................................................................................................................9
An evaluation of how the above has been influenced by global operations & how the business
has been influenced...................................................................................................................11
Evaluating the ethical and sustainable components of organisation which are consider in
global market :...........................................................................................................................12
Captious evaluation of the range of strategic global expansion routes available to the
organisation...............................................................................................................................13
Conclusion ................................................................................................................................15
REFRENCES ................................................................................................................................16

INTRODUCTION
Globalisation refers to the process of growing the business operations in international
market with the expectation of making relation with all the business operations. In general
terms it can be state that it works as the key development in the procedure of production of
goods and services (Zinchuk, and et., al., 2021). Expansion of organisation in global market
leads in growth of business in international market, with the technology, information, culture
and many others. The selected organisation for this report is MR. Biggs it is a fast food
company, it is Nigeria based company which is planning to expand the business in UK market
place. It headquarter is in Ojo, lagos state it was founded in 1973 by derrick van houten.
This report will cover the explanation of globalisation further it will explain the pestle analysis
in relation of the company along with an analysis on key factor of globalisation. Afterwards it
will explain the effect of digital technology on the globalisation along with the challenges
faced by the respective company due to internationalisation.
MAIN BODY
Part 1
Pestle analysis -
It is a framework which is being considered as an instrument which are utilised by various
kinds of organisation in regards to determine the external factors which are faced by the
organisation. Concern successfully responds to the macro surrounding components which
can enjoy the competitive benefits over rivals. In relation of Mr Biggs, the pestle analysis has
been listed in below:
1. Political factors – the factor directly influence the feature of the business which
includes the political stability of the nation, tax policy, trade restriction and many
others. In relation of MR. Biggs, the manager of the organisation is need to
concentrate on trade policy, taxes and many others for the effectual operating. As the
stability of UK governing bodies is very high and because of this they don,t have to
create alteration in their policy on daily basis. The taxes which are applied by the
government is also low so due to this Mr Biggs can enjoy the long term
sustainability in the competitive market.
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2. Economical factors - this factor states the effect on the profitability of the company
which includes GDP, buying or spending quality of the user, interest rates, exchange
rates, inflation rates and many others. In relation of Mr Biggs, as the company has a
good value in the market and the GDP of the great Britain in also better. Because of
this it is very simple for the management of the company to improve a good brand
image in the UK market. This develops the visibility as well as the profit margins of
the organisation.
3. Social factor - this considers those components which directly linked to the culture
and attitudes of the society. Taste and preferences of the users, belief, population ratio,
age distribution and many others. The manager of the Mr Biggs concern have to
concentrate on the quality of the goods which assist them in raising the users base in
UK. Produce goods and services as per to the requirements and wants of consumers
grows the sale as well as the profit.
4. Technological factors - This components is also being considered as the most crucial
factor on which the management of the company have to pay concentration. By
performing more investment in technology a company can bring lots of chances and
advantages for them. In context of Mr, Biggs the management of the company have
to use advance technology in order to satisfy the demand of UK consumers. With
the utilisation immense technology in their various business operations they can reduce
their price and enjoy the high revenue.
5. Environmental factors – It is very essential for am institution to create various policies
to implement the environment changes in a very effective way. This factor comprises
whether situation, climate changes, pollution and mostly essential are rules and
regulations which are created by governing bodies in regards to the safety and
protection of the environment. In relation to Mr, Biggs, the manager of the company
have to focus on the various surroundings policies of UK like control of pollution act,
the surrounding protection act and many others. Which control the wsate management
and disposing in the environment (Wildschütz, L., and et., al., 2019).
6. Legal factor - this component define that what an organisation can or cannot do.
This component basically includes the licensing and permits, rules and regulations
linked to industries and most crucial the laws linked the laws related to the welfare
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of the workers as well as the society. In context of Mr, Biggs, the management of the
organisation have to concentrate on various rules which are made by the court of
law like wages law, equity law and many more. For the systematic working they have
to execute all the rules of Britain.
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An analysis of the key driving factors of globalisation:
Globalisation is the process of free movement of goods, services and people outside the
boundaries of country in an integrated manner. The role of globalisation is to foster economic
integration between countries of the world. The key driving factors of globalisation are as
follows:
 Technology advancement: The recent technological innovations has played a huge role
in accelerating the growth of globalisation. The improvement of technology in the
process of transportation and communication has significantly reduced the cost of
shipment charges which in turn influenced the growth of globalisation. In addition to this,
Introduction of commercial jet has also increased the pace of globalisation. Furthermore,
Development of micro processors and efficient telecommunication channels provide an
opportunity to seamlessly connect from anywhere in the world. In addition to this, The
introduction of internet turned globalisation to greater heights by allowing the platform to
seamlessly share business information and providing easy access of information just by
single click (.Galli, and et., al., 2019).
 Intense competition: High competition among firms in domestic market is the important
factor for influencing the growth of globalisation. Due to this, the domestic firms look
ways for diversifying its products and services in international markets. Furthermore,
Foreign Direct Investment has increased interconnectedness between countries which
help domestic players to explore foreign markets. In addition to this, the competitive
drivers provides an opportunity for country to turn its economy into global economy
through global channels which plays a crucial factor in the growth of globalisation.
 Industrialisation: The growth of industrialisation was also a noted factor in influencing
the growth of globalisation. The recent growth of industrial output in Asian countries
helped in increment of its global GDP which has also accelerated the speed of
globalisation. Furthermore, the output growth of small and medium industries has
significantly increased the global production level that can be noted as an important
factor of globalisation (Meier, García, and Konjer, 2021).
 Lower trade barriers: The policies of government aimed at reducing trade barriers such
as import tariffs lead to liberalisation of global trade which is a crucial factor for
globalisation. Due to this, Reduction in transportation and communication costs helps the
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competitive players to tap into foreign markets in cost effective manner. Furthermore, the
reforms such as deregulation is also pointed out as a driving factor of globalisation.
 Financial liberalisation: The government policies aimed towards financial sector
liberalisation has increased the financial integration of different economies across the
world. It helps in creating the mutual relationship for financial borrowings among
different countries which positively impacted the growth of liberalisation. In relation to
this, financial deregulation has also increased financial globalisation among different
countries. Furthermore, The recent design of an online platform for exchanging money
from one currency to another like pay-pal has accelerated the growth of globalisation. In
addition to this, the advancement in financial payments has led to an increase in capital
flows around the globe which is a significant factor for creating the path for globalisation.
Impact of digital technology upon globalisation-
The improvement of technology In the international market has been categorized as the
main reason of globalisation. With the assistance of digital technology all business institution
have chances to raise their scale of economic structure and market size. Technological
advancement not only assist in minimising the value of transportation but also develops
the communication between the countries (Della Posta, 2021.).. Digital technology reduces the
time barriers as well as gives a place for operating business. The presence of technology in
the various operations of business develops the productivity and assist the business to attain
a successful position in the global market. In relation of Mr, Biggs, the participation of
digital technology with in the company assistance help in developing good and effective
relations with their users. They can also utilise this as a instrument which assist them in
understanding the various trends of the market along with the requirements and wants of
the users. By performing they can operates their functions in a very appropriate way an
enjoy the long run sustainability in the market place. Hence, digital technology has a great
effect on globalisation.
Evaluation of various challenges and complexity brings to an organisation.
With the effects of internationalisation organisation not only operate their various business
functions in appropriate way but also improves policy as per the dynamic market which
assist them to stand in the market for a long term. Because of the immense competition of the
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concern at the global market there is a high possibility and challenges face by the business.
In context of Mr. Biggs, following are the challenges and difficulties face by them has
listed in below:
1. Cultural Differences - various kinds of culture and language have been seen all
across the nations. To operate the business in a particular nation it is very crucial for
the organisation to understand the culture and learn the languages of the particular
country. When Mr. Biggs, operate their operations in the market place of UK they
determine the varied languages and trends. The brand have to implement their trends,
languages and preferences in regards to develop the market place. It is very essential
for person to understand their trends for the systematic operations of the industry
(Usman, and et., al., 2020).
2. Currency rates - this is common hurdles which are faced by the company when a
business man wants to operate their business at the international level they must have
to face the currency rate as a challenge. When the management they have to
concentrate on the variable exchange rate of the nation.
Recommendations on approaching from the challenges:-
1. If the administration of the Mr. Biggs wants to overcome from the problem of loss
of culture determine first of all they have to adjust their mind set according to the
society and start communicating with them. This procedure will take time but
assist them in achieving a good position in the market place. By performing this
they can develop a good and positive picture in the global market.
2. If the management of the Mr. Biggs wants to overcome from the difficulty and
challenges of currency ratio they have to utilise the protection tools, investment
like security ETF is included by the company in regards to invest their funds
(Roccu, and Talani, ., 2019).
CONCLUSION
It is concluded from above report that it has been that from the business mindset
globalisation plays a vital role not only in the development of company at the global market
place but also develops an external analysis with the assistance of pestle analysis which is
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determine the various external factors which effects the operations of the company. This
report also concluded the varied key driving factors which drive the global commerce and
trade among with the effect of digital technology on the globalisation in respect to the Mr.
Biggs company. Further this report explained the challenges and complexity face by the
organisation and recommendation to overcome from the issues face by them.
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REFERENCES
Books and Journals
Roccu, R. and Talani, L.S., 2019. Introduction: The Globalisation Debate—From De-
Globalisation to the Dark Side of Globalisation. In The Dark Side of Globalisation (pp.
1-17). Palgrave Macmillan, Cham.
Usman, O., and et., al., 2020. Enhancing sustainable electricity consumption in a large
ecological reserve–based country: the role of democracy, ecological footprint, economic
growth, and globalisation in Brazil. Environmental Science and Pollution Research,
27(12), pp.13370-13383.
Della Posta, P., 2021. The economic and social costs of globalisation: A target zone analysis.
The World Economy, 44(3), pp.633-644.
Meier, H.E., García, B. and Konjer, M., 2021. Resisting the pressures of globalisation: the
repeated failure of elite sport reforms in re-United Germany. German Politics, 30(4),
pp.562-582.
Zinchuk, T., and et., al., 2021. Inclusive Development of the World Countries under Conditions
of Globalisation: Models and Arguments. Scientific Horizons, pp.81-91.
Wildschütz, L., and et., al., 2019. Transcriptomic and proteomic analysis of iris tissue and
aqueous humor in juvenile idiopathic arthritis-associated uveitis. Journal of
autoimmunity, 100, pp.75-83.
Galli, B.D., and et., al., 2019. Peptide profile of Camembert-type cheese: Effect of heat treatment
and adjunct culture Lactobacillus rhamnosus GG. Food research international, 123,
pp.393-402.
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INTRODUCTION
It may be considered as a producer which not only assist the company in improving
a strong relationship a strong relationship with the persons but also aids them in improving
a good relationship with the government as well as with the various businesses at the
worldwide level (Michaeli, 2021). This section of the report will cover the detail of
globalisation on governance, leadership structure, functions and culture by applying the
McKinsey's model of the company in order to Mr. Biggs company. Further it will explain the
evaluation of how the organisation influence by the global operations and how they
implements the global operating in the international market by executing hofstede's
dimensions of trend in relation to the respective company. Afterwords this report cover the
evaluation of the assorted components which have to be considered by an organisation and
how they will effect on the decision making when the company operate in their function in
the international market. In last it will describe the critical evaluation of the various routes
in front of the company when they want to expand their enterprise all over the nation.
Part 2
Evaluating the influence of globalisation upon business governance, leadership, structure,
culture & functions
McKinsey's 7s Model -
This model may be define as a instruments which are utilised by company not only for
the well being of the company but also used by the company to attain a up coming success
in the competitive market. This theory consider the seven key factors element which assist
the company in determining whether the company objectives is being attained by them
with full effectiveness or not (.Yang, and Li, 2019). The influence of globalisation upon the
business is explained with the aid of McKinsey model. In respect to Mr. Biggs, the model
has been discussed below:
1. Structure : This element boundary the construction of an organisation. This structure is
made up of chain of command, corporate hierarchy and divisional make up which outline
how these operational functions are interconnected with each other. In relation to the Mr
Biggs, it is very crucial for the company to be more focused on the construction of the
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institution which not only assistance the direction but also help the each and every
worker.
2. Strategy : Strategy is fundamentally a plan which is formulated by the management of
company which assist them to stay stand in the contending market for a long duration. Mr
Biggs, the director of the institution is required to pay convergent on the improvement of
the effective scheme.
3. System : this component basically refer to the daily producer, activities and decisions of
the company which help them in make up of standard operations with in the workplace.
In abstraction to the Mr Biggs company, the director of the institution have to pay focus
on the version as well as use of the beforehand engineering in their assorted business
classical.
4. Skill : This open up the pure natural ability and ability of the worker who work in the
structure. In case of Mr Biggs, the manager of the institution have to pay more
concentrate on the regulation and standard which are formulated by government in
abstraction to the benefit and safety of the staff associate.
5. Staff : this element is totally concern with the retention rate as well as the requirement of
employee with in the organisation. Under this element training, recruiting of the staff
member of the company is also being included. In the relation to the Mr Biggs, the
manager of the human resource department company have to pay focus on the
development of effective training and programme for the employees.
6. style : this element correspond the way by which the top level manger manage the
company which includes different things like how they interact with their employee or
what are their actions and many more. In relation to the Mr Biggs company, the manager
of the company have to create a code of behaviour which help them in taking decision in
abstraction to the happening of institution.
7. Shared value : These are commonly the standard and norms of the institute of the
concern which attracts both management and workers. The major foundation of the
company are vision, mission, objective, values and many more. In abstraction to the Mr
Biggs, the manager of the institution have to share the mission, objective and vision of
the company to their worker. They also have to guide and supply a way to them so that
they can execute the task in a very befitting mode (Viecelli,, 2021).
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