Understanding Globalization Drivers and Strategic Complexities Today

This report examines the key drivers of globalization, such as technological changes, containerization, and economies of scale, and their impact on the global business environment. It further explores strategic complexities, including political and economic factors, that businesses face when operating globally, using the example of Brexit to illustrate economic complexities. The report concludes that strong decision-making and planning are essential for companies to navigate the challenges of a competitive global market and to effectively manage risks. It emphasizes the importance of understanding and controlling barriers that can affect a company's performance in the international market, ensuring effective and smooth operations.

GLOBAL BUSINESS
ENVIRONMENT

TABLE OF CONTENT
◦ INTRODUCTION
◦ KEY FACTORS WHICH DRIVES GLOBALISATION
◦ STRATEGIC COMPLEXITY
◦ CONCLUSION
◦ REFERENCES

INTRODUCTION
◦ Drivers and challenges of globalizations are the drivers which are impacting on the
globalizations of the organization and it is very important for the organisations to understand
the importance of the drivers and the key factors which is affecting and impacting on the
global market (Barac and et.al., 2016).
◦ The presentation will explain the key issues which initiative globalizations and the strategic
complexities which are associated with working in a global environment. The report further
explains the global market influences on organizational structure, culture and functions.

KEY FACTOR WHICH DRIVES GLOBALISATION
◦ There are a lot of key factors which influence and drives globalization.
globalization is very important and Thermex limited need to utilize the
best of the globalization factors so that they can work and perform
better. key factors which drive globalization are as follows:
Technology changes
◦ But a big change of technologies is one of the key factors which is
driving globalizations toward the success. rapid and sustained
technology change reduced a lot of costs and the cost of transmitting
and communicating information.

CONTINUE…
◦ Containerisation
◦ Earlier the shipping which used to cost a lot to the organization but nowadays the cost of ocean shipping
has come down due to the factor of containerization. shipping in bulk and other efficiencies which are
providing a positive effect due to containerization is helping the globalization factor. The lower the unit of
shipping products around the globe, need the global economy help better prices in the country of
manufacture and gets more of the profit from those in the export market. it also helped in making the
market more contestable globally.
◦ 3. Economy of scale
◦ Economy of scale refers to the armorial situation of the countries in which the organizations are working.
There are a lot of economist who believed that the increase in the minimum efficient scale in industries.

STRATEGIC COMPLEXITY
◦ It can be defined as the mean for change is facilitating & the achievement of long-term goals in competitive
pressure, uncertainty and complexity. Strategic complexity operating in global environment, the business
environment is global when they trade across different national boundaries and removed enable bigger
integrations of productions this and operations with the capital market flow of financial resources. it needs
to be understood that a business environment is global and it is very important for the organizations to
understand that to work best it is very important to make the business global and improve the productivity
and profitability in a global market. here are some of the complexity’s others follow:
◦ • Political complexity
◦ Political complexities referred to the complexities which the organizations and business face in due to
political changes and challenges. When a manager of the organizations plans to meet long-term goals, they
faced different political tasks.

CONCLUSION
◦ Economic complexity
◦ It is very hard to predict the Prince of the economic
factors. the issue of different economic policies and the
laws made by the countries affect the business. One of
the examples of economic complexities is the Brexit. The
implementation of Brexit is affecting a lot of businesses
in the UK. This is one of the reasons by which many
organizations and firms are relocating their headquarters
to other countries you do the implementation of Brexit in
the United Kingdom. The changes of the economic laws
and policies are affecting their business globally.

CONCLUSION
◦ From presentation it can be concluded that businesses in bazaar have to have a strong decision making and
planning before making the company be able to take any actions so that there are going to be lesser risks
and the company will be able to operate effectively and smoothly in the market.
◦ The competition in market is high and increasing rapidly as well therefore it is very important for the
organization to make the right decisions in the organization which would make the company are able to
operate successfully and powerfully.
◦ There are a lot of barriers and other factors which can impact the company to be able to operate effectively
in the bazaar which have to be controlled by the organization so that to hand are going to be higher
functioning which would be present of company in international market.

REFERENCES
◦ Barac and et.al., 2016. The capability and competency requirements of auditors in today's complex global
business environment.
◦ Brenner, B., 2018. Transformative sustainable business models in the light of the digital imperative—A
global business economics perspective. Sustainability. 10(12). p.4428.
◦ Cepel, M and et.al., 2019. Selected economic factors of the quality of business environment. Journal of
International Studies.
◦ Chukhray, N.I. and Mrykhina, O.B., 2018. Theoretical and methodological basis for technology transfer
from universities to the business environment. Problems and Perspectives in Management. 16(1). p.399.
◦ Fabus, M., 2018. BUSINESS ENVIRONMENT ANALYSIS BASED ON THE GLOBAL
COMPETITIVENESS INDEX (GCI) AND DOING BUSINESS (DB): CASE STUDY SLOVAKIA. Journal
of Security & Sustainability Issues. 7(4).
◦ Hahn, Y. and Kim, D., 2016. Corporate social responsibility: A comparison analysis. The Journal of
Business Economics and Environmental Studies. 6(4). pp.13-17.

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