Globalisation: Evaluating Business Strategies for Mr Biggs Company

Verified

Added on  2023/06/17

|14
|4337
|352
Report
AI Summary
This report analyzes the influence of globalisation on business governance, leadership, structure, culture, and functions, applying McKinsey's 7S model to Mr Biggs company. It evaluates how global operations influence the organisation and how the business adopts global operating strategies, using Hofstede's dimensions of culture model. The report further examines ethical and sustainable factors considered in the global market and evaluates strategic decision-making in the context of risk and diversification. Finally, it provides a critical evaluation of the strategic global expansion routes available to the organisation, offering a comprehensive overview of navigating the global business environment.
tabler-icon-diamond-filled.svg

Contribute Materials

Your contribution can guide someone’s learning journey. Share your documents today.
Document Page
Global Business
Environment
tabler-icon-diamond-filled.svg

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
Table of Contents
PART 1............................................................................................................................................3
Covered in PPT.......................................................................................................................3
PART 2............................................................................................................................................4
INTRODUCTION...........................................................................................................................5
MAIN BODY...................................................................................................................................5
PART 2............................................................................................................................................5
Evaluating the influence of globalisation upon business governance, leadership,
structure, culture & functions.............................................................................................5
An evaluation of how the above has been influenced by global operations & how the
business has been influenced...............................................................................................8
Evaluating the ethical & sustainable factors of organisation which are consider in global
market.....................................................................................................................................9
Evaluation of strategic decision making in context to risk & diversification in a global
context..................................................................................................................................10
Critical evaluation of the range of strategic global expansion routes available to the
organisation.........................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES:.............................................................................................................................14
Document Page
PART 1
Covered in PPT
Document Page
PART 2
tabler-icon-diamond-filled.svg

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
INTRODUCTION
Globalisation may be considered as a producer which not only help the organisation in
developing a strong relationship with the people but also help them in developing a good
relationship with the government as well as with the different companies at the international
level(Liébana-Cabanillas, Muñoz-Leiva and Sánchez-Fernández, 2018). This part of the report
is going to give the information about the influences of globalisation on governance, leadership,
structure, functions and culture by applying the McKinsey's 7S model of the organisation in
relation to the Mr Biggs company. This report also cover the evaluation of how the organisation
influenced by the global operations and how they adopted the global operating in the
international market by applying Hofstede's dimensions of culture model in relation to the
respective company. Afterwords this report cover the evaluation of the different factor which
have to be considered by an organisation and how they impact on the decision making when the
company operate in their functions in the global market. Lastly, this report cover the critical
evaluation of the different routes available in front of the organisation when they want to expand
their business all across the globe.
MAIN BODY
PART 2
Evaluating the influence of globalisation upon business governance, leadership, structure, culture
& functions
McKinsey 7s model
McKinsey's model may be define as a tool which are used by organisation not only for
the well being of the company but also used by the company to achieve a future success in the
competitive market(Macqueen, Bolin and Greijmans, 2021). This tool is used by the company to
analysis the organisation design. This model include the seven key factor element which help the
company in determining whether the business objectives is being achieved by them with full
effectiveness or not. The influence of globalisation upon the business is explained with the help
of McKinsey's model. In respect to Mr Biggs the model has been discussed below:- Structure: This element outline the structure 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. This also outline the
Document Page
responsibilities of the worker. In relation to the Mr Biggs, it is very important for the
company to pay more focus on the structure of the company which not only help the
management but also help the each and every employee in holding their roles as well the
responsibilities in a very clear manner(Madakam, Ramaswamy and Date, 2019). If the
company wants to open their outlet in UK then they have required an effective divisional
structure, which provide a clear picture of different department of an organisation in front
of them. Strategy: Strategy is basically a plan which is developed by the management of company
which help them to remain stand in the competitive market for a long period time. These
strategies would be clearly communicate in all the level of management which help in
attaining the objectives as well as smooth functions of the business operations. In relation
to the Mr Biggs, the manager of the company is required to pay focused on the
development of the effective strategies. With the help of these strategies company can
earn the higher profit in the market of UK and enjoy the sustainable competitive
advantage. Also, healthy and happy would be maintain by the management within the
workplace which motives the employee so that they can execute the developed strategies
in a well effective manner. System: this element 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. This
factor also help the organisation in maintaining a effective workflow. In relation to the
Mr Biggs company, the manager of the company have to pay focus on the adaptation as
well as utilization of the advance technology in their different business operations. By
doing this they can smoothly operates their activities in the market of UK and also
developed the best strategies for the achievement of long term sustainability as well as
profitability in the competitive market. Skill: This comprises the pure talent and capabilities of the employees who work in the
organisation. On the basis of this working, competence and achievement of the
organisation has been determine. These skills allow the employee to achieve the set target
in a proper manner(Rialp-Criado and Komochkova, 2017). In relation to the Mr Biggs,
the manger of the company have to pay more focus on the rules and norms which are
developed by authorities in relation to the welfare and security of the staff member. By
Document Page
doing this, they not only motivate the employee or provide job satisfaction to them but
also encourage them to perform their duty with utmost productivity. This result in higher
profit as well as long term sustainability for the company in the market. 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. This not only
improves the skills of employee but also enhance their productivity. The also have to pay
focus on the compensation of the staff member so that they always remain motivated. By
doing this employees provide better services to their customer and firm enjoy the long
term sustainability. Style: this element represent 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 develop a code of conduct which help them in taking decision in
relation to the success of company. Different activities as well as functions of the
company is being regulate by the democratic leadership style. With the help of this style
the manger and the employee of the company can present their thoughts and suggestions
in front Shared values:of the management. These decisions or suggestions can help the
organisation in performing their activities in the market of UK in a very smooth manner.
Shared values:- These are basically the standard and norms of the company which
influence the behaviour of both management and employees. These are the guideline
which are presented to the staff member of the company. The major foundation of the
company are vision, mission, objective, values and many more. These play a very vital
role in the different business activities(Rupidara and Darby, 2017). In relation to the Mr
Biggs, the manager of the company have to share the mission, objective and vision of the
company to their employees. They also have to guide and provide a way to them so that
they can perform the task in a very appropriate manner.
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
An evaluation of how the above has been influenced by global operations & how the business
has been influenced
The main reason behind the global market is so inevitable and competitive is the entrance
of the new company in the international market, this is done because of the globalisation. Due to
this in the global market the share of domestic market is under threat. In context to Mr Biggs
company, following are the factor which not only promote the globalisation but also guide them
for business development has been discussed below:-
Political changes:- In the international market, the trend of globalisation not only unite
the different community of the country but also socialise them to develop a trade
agreement between the different nations(Saeed, et. al., 2018). For Mr Biggs company
these change will generate various opportunities for them in the market of UK.
Global businesses climate:- This factor is directly related to the development of the
globalisation which includes the expansion of communication network. This element
directly assist the Mr Biggs company in the process of globalisation.
Expenses:- This factor also influence the process of globalisation. This factor is directly
relates to the flow of investment and trade of liberalization. These are needed in
increasing the specific areas like habits of global consumer and economics of scale.
Development of technology:- the advancement of technology is also influence the
process of globalization. Development of technology in an organisation is directly
related to the success of the company. With the help of this the management of Mr Biggs
company not only communicate the ideas to all the level of the company but also share
the information all across the globe.
Applying Hofstede's model of culture
This dimensional culture is proposed by professor Geert Hofstede's and this culture is
also known as Hofstede's Theory. This model is based on immense research done by the
professor and their research team members(Saleh and Watson, 2017). This framework is used to
understand the different culture across the countries and their preferences over each other. In this
culture they identified the different problem areas among the national cultures on the basis of six
dimensions which includes power distance, individualism–collectivism, uncertainty avoidance,
masculinity/femininity,high context – lower context and short term - long term orientation. With
the help of the impact of these factor has been mentioned below:-
Document Page
Power distance:- in this culture those who have high power distance can only have
strong hierarchies as well as powerful leaders. In relation to the Mr Biggs company, all
the decision which is related to the company is being developed and generate by the
higher authorities of the organisations and not by discussing with other.
Individualism and community ties: different promotions techniques can be used by the
company in order to target the customer all across the globe. They pay more emphasises
on how the product of the company can be deliver to them so that they can enjoy the
advantage of freedom and also save their time(Singhania and Saini, 2018).
Masculinity and trade role:- If the market have high masculinity then management of
the company can change or differentiate their roles according to the culture of the
particular market. This also ensures that, to target a particular market segment for a
product a proper pattern has been followed by them.
Tolerance and ambiguity:- basically this culture is totally depend on the tolerance and
ambiguity. It is in the hand of the company whether they want to adopt it or avoid it. In
relation to the Mr Biggs company, the companies is going to identifies the different types
of culture in the nation and on the basis of these they are going to design their
promotional activities.
Long term orientation:- with the help of this culture company not only paid focus on
the traditions but also make attention to the link of past. In context to Mr Biggs company,
these types of orientations have to followed by them if they wants appropriate traditional
structure.
Indulgence and quick gratification:- if the culture provide high level of understanding
to the company then they can enjoy the high value for the rest of his life and if they
provide low level of understanding then they can face rigid rules and regulation of the
society(Upadhyay and et. al., 2019).
Evaluating the ethical & sustainable factors of organisation which are consider in global market
In globalisation ethical factor is being considered as a procedure which help in trading of
different things like informations, goods, services, technology and many more with morality and
in ethical form. With the help of ethics an individual can understand what is right and what is
wrong within the company. This also includes the different stakeholder like governance, staff
members, employees, customer, supplier etc. The main objective behind the ethical factor is to
Document Page
improve the skills of the employees of the respective company so that they not only work in a
ethical way for the accomplishment of the organisational objectives but also improves their
productivity of doing the task(Vătămănescu And et. al., 2020). By considering all the ethical
factor by the management of the company they can enjoy the smooth functioning of the business
as well as they can also enjoy the long term sustainability in the marketplace.
In globalisation sustainable factor denotes to such elements which help the business not
only in presenting their different business operations at the global level but also help them to
enjoy the competitive advantage. By doing this they can attain the long term sustainability as
well as profitability in the international market. On the other hand this factor also develop a
potential which help in facing all the complexities and challenges came in the way of growth.
Along with this also help the company in facing the immense competition at the international
market. In relation to the Mr Biggs company, the different factor which help the company in
enjoy the insubstantiality in the market is economies of scale, marketing, services related to
product and many more. These factor not only motivate the employee of the company but also
increases the customer base. If the employee of the company are dedicated and work with full
power to achieve the objectives of the businesses then this attracted more customer towards the
services of the Mr Biggs company. By doing this they can enjoy the higher profitability as well
as sustainability in the market of UK.
Evaluation of strategic decision making in context to risk & diversification in a global context
From the above information it has been evaluated that it is highly significant for the Mr
Biggs company to make the strategic decision which not only help them in diversifying their
business operations but also help them to control there operation when they launch their
business in United Kingdom. With the help of this they are able to enjoy not only the
competitive advantaged but also the high customer share in the dynamic market. If the manager
of the Mr Biggs company take the sound as well as the effective decisions in the market of UK
then they can minimise the effect of external as well internal factor which have direct impact on
the working of the company(Venkatesh, Mathew and Singhal, 2019). The internal and external
factor also help the company by generating new opportunities for them. These benefits help the
company in long term profit as well sustainability in the market.
tabler-icon-diamond-filled.svg

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
Critical evaluation of the range of strategic global expansion routes available to the organisation
There are several range of the global expansion methods by which Mr. Biggs can be able
to expand its business sat global level with high competitive advantage. These routes which are
available with Mr. Biggs are given below:
Franchising- In this, it pool the capability and resources to accomplish the strategic
marketing, sales and distribution. It involve two person one is franchisor and other is
franchisee. The franchisor grant to a company or individual the right to operate or run its
business by selling the product under the franchisor's successful business and identified
by franchisor's trademarks. It also charge the initial upfront fee from the franchisee. In
context of Mr. Biggs, it can expand its business by using this method as the international
franchising is an effective strategic way that help to reduce the dependence of a company
on the domestic demand. They can extend its business in U.K. Through this franchising
as it is less risky with minimum investment requirement and also offer a large upside
potential to scale capabilities.
Partnership- In this strategy, two or more companies from the different nation work
together. They pool each other's resources and skills in order to provide a better product
and services. They can reach a broader target audience through this collaboration.
Organisation engage in the global strategic partnership as they believe that this
partnership will lead to the synergy and increase economic benefits. In case of Mr. Biggs,
it can make partnership with other fast food business in U.K. to expand their business
internationally(Wood, 2017). It can get new technology and have a chance to evaluate
the new software platform of other company without investing its own resources. This
method help the Mr. Biggs to diversify its revenue stream as the international partnership
will allow it for diversification of its product and services s they and its partners both gain
access to the new technology.
Licensing- The international licensing, it allows the foreign organisation either non
exclusive and exclusive in order to manufacturer the product of proprietor for fixed term
in a particular market. This strategy is a flexible work agreement which can be
customized according to the interest and needs of both the licensor and licensee. In
context of Mr. Biggs, this method will create the opportunities for the passive income.
Document Page
When the respective company extent its business in U.K. market then it will provide it
new business opportunity as mostly people eat the fast food and it is very beneficial for
the company. This is an easiest entry into the foreign market.
Exporting- In this, there is ale of a company's product and services within international
market that is sourced and made in the home nation. It is an effective strategy for
company to enter in a foreign market. This is a good way for small and medium size
business for exporting their product in international market. By exporting a company's
product or services to the international marketplace an organisation can develop its
market share and also grow their business effectively(Yong and et. al., 2017). In relation
to Mr. Biggs, it can export as it is an easiest mode to participate in the global trade. It can
export its food product in the new market by using this strategy. This method is less
costly rather than other entry strategies. It could significantly extend its business in
United Kingdom market, leaving it less dependent on single one. Its greater production
may lead to a large scale economic with better margins.
Joint venture- The international joint venture work by joining together of two or more
companies from different jurisdictions in order to exchange resources, divide reward and
share risk of the joint enterprise. Often, one partner is located physically in jurisdiction of
joint venture. The international joint venture is an element of partnership but it is formed
with specified project or a defined purpose. In context of Mr. Biggs, the global joint
venture is a great method to do business. It will allow the respective company to gain
access to international market, resources and technology. Mr. Biggs looking to take its
product in new foreign market by entering in to the joint venture by offering the
complementary strength to the compensate foe its weakness(Zaman, 2018). This strategy
will provide less costly and a faster access to the respective company. Therefore it is a
good opportunity for Mr. Biggs to expand its fast food business thorough joint venture
method.
CONCLUSION
From this report it is find out that, an organisation highly focuses on to enhance its
business through various organisational culture, leadership, governance and many more. It is
helpful for a company to accomplish its business goals as well as the competitive advantage
internationally. A company take many decisions effectively in order to enhance it business at the
Document Page
global level. It help to accumulating the knowledge or information related to application of the
McKinsy model for understand governance, culture and structure within an organisation. By this,
a company become enable to maintain effectiveness and efficiency during taking the global
business decisions. The expansion of a business in international market may be impacted by the
political factors and social culture. It is a big challenge that a company has to face during the
globalisation. To overcome from these challenges they have to conduct a detailed analysis of the
new market. This study also provide detailed analysis about sustainability as well as the ethics
that is required in presents at the global level business operation. There are several modes
through which a business can enter within a global market or international market such as these
can affect global presence and sustainability of a company in such a market.
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
REFERENCES:
Books and Journals:
Liébana-Cabanillas, F., Muñoz-Leiva, F. and Sánchez-Fernández, J., 2018. A global approach to
the analysis of user behavior in mobile payment systems in the new electronic
environment. Service Business. 12(1). pp.25-64.
Macqueen, D., Bolin, A. and Greijmans, M., 2021. Democratising forest business: a
compendium of successful locally controlled forest business organisations.
Madakam, S., Ramaswamy, R. and Date, H., 2019. Quality of life@ Palava smart city: A case
study. Global Business Review. 20(3). pp.708-742.
Rialp-Criado, A. and Komochkova, K., 2017. Innovation strategy and export intensity of Chinese
SMEs: The moderating role of the home-country business environment. Asian Business
& Management. 16(3). pp.158-186.
Rupidara, N.S. and Darby, R., 2017. Institutional influences on HRM in the Asian business
environment: the case of Indonesia. Journal of Asia Business Studies.
Saeed, M.E.A., et. al., 2018. Millennials Motivation Factors and Job Retention: An Evidence
from Oil and Gas Company in Malaysia. Global Business & Management
Research, 10(3).
Saleh, A. and Watson, R., 2017. Business excellence in a volatile, uncertain, complex and
ambiguous environment (BEVUCA). The TQM Journal.
Singhania, M. and Saini, N., 2018. Determinants of FPI in developed and developing
countries. Global Business Review. 19(1). pp.187-213.
Upadhyay, A. and et. al., 2019. Investigating “circular business models” in the manufacturing
and service sectors. Journal of Manufacturing Technology Management.
Vătămănescu, E.M. And et. al., 2020. From the deliberate managerial strategy towards
international business performance: A psychic distance vs. global mindset
approach. Systems Research and Behavioral Science. 37(2). pp.374-387.
Venkatesh, R., Mathew, L. and Singhal, T.K., 2019. Imperatives of business models and digital
transformation for digital services providers. International Journal of Business Data
Communications and Networking (IJBDCN). 15(1). pp.105-124.
Wood, G., 2017. Reflections on business ethics through 1992-2017. European Business Review.
Yong, N.L. And et. al., 2017. A study of factors influencing consumer's purchase intention
toward green vehicles: evidence from malaysia. Global Business and Management
Research. 9(4s). pp.281-297.
Zaman, K., 2018. The impact of hydro-biofuel-wind energy consumption on environmental cost
of doing business in a panel of BRICS countries: evidence from three-stage least
squares estimator. Environmental Science and Pollution Research. 25(5). pp.4479-4490.
chevron_up_icon
1 out of 14
circle_padding
hide_on_mobile
zoom_out_icon
logo.png

Your All-in-One AI-Powered Toolkit for Academic Success.

Available 24*7 on WhatsApp / Email

[object Object]