Impact of Globalization on Softwire's Governance and Leadership

This report provides a comprehensive analysis of Softwire's global business environment. It begins by identifying key factors such as cost, market, environment, and competition that drive global commerce and trade for the company. The report then delves into the strategic complexities of operating in a global environment, including challenges related to corporate structure, value chains, and supply chains. Furthermore, it evaluates the impact of globalization on Softwire's governance, leadership, organizational structure, and culture, examining both positive and negative effects. The report also assesses the influence of ethical and sustainable organization practices. Finally, it explores different decision-making approaches for the company in a global context and determines various routes to internationalization, culminating in a detailed conclusion and references.

Global Business
Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Key factors of cost, market, environment and competition that drive global commerce and
trade for Softwire........................................................................................................................3
TASK 2............................................................................................................................................5
P2 Determine the strategic complexities associated with operating in a global environment....5
TASK 3............................................................................................................................................6
P3. Evaluating the impact of globalisation on company’s governance and leadership,
structure, culture and functions...................................................................................................6
P4 Evaluate the influences of ethical and sustainable organisation............................................8
TASK 4............................................................................................................................................9
P5 Evaluate the different ways your chosen organisations decision making can work
effectively in a global context.....................................................................................................9
P6 Determine and articulate the various routes to internationalisation.....................................11
CONCLUSION..............................................................................................................................13
REFERENCES .............................................................................................................................14

INTRODUCTION
Global business environment is the environment which includes business activities as
various external forces that surround the firm and influence its decisions and operations.
Organisation faces unpredictable changes in the global market which influence several factors of
environment. Organisational strategies and functions are related with internal and external
factors, it is necessary for the organisation to consider those factors which are necessary for
company. Present report is based on global marketing business. For that, Softwire Company will
be taken into consideration. It is a software based or digital design solutions consultancy firm in
the UK. It has several clients with whom they work and sell their services. Moreover, it has 130
employees in company. The aim of the firm is to create the best possible environment to produce
outsourcing software and deliver quality services. It will explain the concept of globalisation and
their driving factors which affect company’s strategies and functions as well. Further, it will also
look upon the models to analyse the external factors of business environment.
TASK 1
P1. Key factors of cost, market, environment and competition that drive global commerce and
trade for Softwire
Globalisation is the concept or trend of increasing interaction between people and
companies at national or international level (Doh, Luthans and Slocum, 2016). It enhances the
different services and ideas which affect economy of the country. Small scale business is highly
affected from the globalization concept in terms of advanced technologies and global challenges.
Besides, it also helps to introduce a new opportunity for the SME to enter into the global market
in order to expand the business activities. In the era of globalisation, many markets or companies
start their business at global market and become competitive at international level. Globalisation
interacts with different countries and get together the environment for higher opportunities for
small based companies. Globalisation is offering higher growth for Softwire in order to take the
business activities' at global level.
Globalisation drivers
Market drivers: Market drivers are the most affected drivers which directly put their
impact on global businesses. In according to scenario domestic market is become more saturated
and decline opportunity and scope become limited and short for the local organisation's

company. Global opportunity and expanding market is the great chance for the companies to
expand their business at international level (Wild, Wild and Han, 2014). This is the way to
overcome from the limited market. Softwire also needs to take the market at global level. This is
also essential for company to enhance the common customers’ needs and opportunities to get
higher services or product level from the organisations. It is an effective process of working.
Cost drivers: Cost factors also another force which affects company position and
sourcing efficiency and cost rely on the country. Besides, global organisation takes advantages of
the cost benefits. In order to produce the product at global level, they take advantages for that.
Government drivers: Liberalising trading rules and regulations affect the globalisation
trade or services. Institution of GATT general agreement on tariff and trade as well as world’s
trade organisations change its plan and policies through organisation market will affect (Doh,
McGuire and Ozaki, 2015). Some government decision making process beneficial for the global
companies through which they planning to adopt international market.
Competitive drivers: In global or international competition level has been increasing
rapidly. Foreign direct investment has been increasing for companies and force SMEs to operate
the business at global level (Cavusgil and et. al, 2014).
General factors that drives globalisation
Technology: Technology is the major factor which helps to shape global market into
productive market. Innovation has been given with advanced transportation, technology
revolution and many more services. Among all the barriers, technology helps to develop the new
services or innovation ideas to develop the new advanced opportunities. With the help of
technology, Softwire helps to provide quality services to their clients and get
Communication: Communication factor affect globalisation market due to cross culture
environment. Communication factors can effectively challenge the globalisation challenges
(Dyllick and Muff, 2016). Due to language barriers misunderstanding between parties has been
occurred.
Open markets: Global market is an open market where different types of products and
services are available to the customers. These factors also drive the globalisation and their
market conditions. It is the market where anyone wishes to trade and sell their products and
services to customers. It is having an equal opportunity for all marketers to enter and trade their

business services. This factor also drives the Softwire to offer services to international customers
(Liébana-Cabanillas, Muñoz-Leiva and Sánchez-Fernández, 2018).
Economises drive: It is another driver through which company takes advantages due to
their scale of operations. It applies on different organisations and business situations. Company
has to stable their cost effective data in order to grab final outcomes and profit level. If
organization when they purchasing bulk services they pay low prices of raw material. This is
another economies factor which affect economy.
Classification of pull and push drive
Pull factors relate to those factors which relate with the area of destination. Like
globalisation factor create more opportunities for offering new job, higher wages and better
quality of product and services. Besides push drivers are those factors which associated with the
area of origin (Baller, Dutta and Lanvin, 2016). These factors area low wages, few jobs,
overpopulation. Pull factors gives more new advanced services to the organisation context.
TASK 2
P2 Determine the strategic complexities associated with operating in a global environment.
Organisational structure must be support organisation planning and effective planning
strategies. It gives advanced services and effective target group which helps to full fill the
objectives of the company. Organisational structure includes all planning strategies which is
productive for the company objectives. Such as employee at all levels committed their potential
working towards the organisation goals and objective. They need to assure about the company
effective management. Along with that, it includes company cost leadership, focus and
differentiation. Besides, it also includes supply chain, value chain, ethical governance. Softwire
is the software consulting firm for which they need to adopt the best effective process of working
in order to satisfy the customer needs and wants (Mendenhall and et. al, 2017). Softwire facing
strategic challenges while operating its business at global level in following aspects.
Corporate structures
Corporate structure has been changed due to changes in globalisation, it makes
environment more competitive and challenging effects to the environment of company.
Company needs to manage all the department and other offices in the country in which they
operate its offices. Without the take care of structure it gives negative impact on the organisation

behaviour (Frynas and Mellahi, 2015). It gives new services or growth. In terms of getting the
best effective sources.
Value chain
It is the process or activities by which a company adds value to a product and services.
Softwire having the great quality of software consulting through which clients are get satisfied
with the services of Softwire. Moreover, when company make functioning in the global market
they need to facing the issues in maintaining the value in the product and services.
Supply chain: New opportunities connected with the global market place. Global market
also present some challenges for supply chain management some challenges they facing such as
large scale management issues in which Softwire facing issues to manage the large supply
management at global level. Company needs to measure the large aspects of management in the
form of inventory issues and distribution issues are high. Another issue is involves high risk
issues in material (Chaklader and Gulati, 2015). Softwire company may facing the challenges in
distribution of services. Another challenge is high global competition in order ton sustain the
global market company needs to adopt strategic planning to overcome from the all challenges.
TASK 3
P3. Evaluating the impact of globalisation on company’s governance and leadership, structure,
culture and functions
Globalisation gives positive as well as negative impact on the organisation and country.
Globalisation brought benefits through offering new products and services. On the other side, it
also gives negative impact on local businesses and enterprises. It reduces the opportunity for
global traders and reduce the income sources of them (Vera-Baquero, Colomo-Palacios and
Molloy, 2016). They affect trade, technology, competition, investments, capital flows,
employment, organisation structure and culture.
Positive effects
Global effects: Global effects huge impact on the demand of customer, they constantly
increasing product and services in order to expand the global market services or economic
growth of the country. Multinational companies give opportunity to uses new products and
services to enhance the stand of living.
Cross cultural management: Cross culture consistently increasing diverse environment
which increases new creativity ides and services for the customers (Komljenovic, Loiselle and

Kumral, 2017). Well educated and wealthy people interact with each other in big MNC
companies which grow the development opportunity for Softwire.
Foreign trade: Foreign income is the most significant output of globalisation to improve
the country’s economy. Those things which is only found in the developed countries. It also gave
different opportunity for the company to enhance the opportunities. Softwire needs to expand
their market at global level in order to earn foreign income and global market popularity of
company.
Negative factors
Jobs Insecurity: In developed countries people facing the issues in their jobs security.
Due to heavy competition in the market (Ly, Vickers and Fernandez, 2015). Companies
outsourced the human resources at low salary wages. It reduces the job opportunity in host
country. It gives negative impact on the employment ratio. Globalisation leads employment crisis
in the country.
Fluctuation in Prices: Due to globalisation context local companies needs to reduce
their own prices low in order to competitors with competitors. For example China has produce
product and service and offering them at very low prices due to which they grab the attraction of
customers. This gives negative impact on the local companies. Globalisation leads to heavy
impact for Softwire.
Unfair trade: Unfair practises may involves in the globalisation market such as
fraudulent, unethical method used by the company in terms of selling the goods (Smith, 2014).
Some traders make false representatives in business etc. this gives negative impression on the
businesses. It reduces the scope of globalisation market, due to less faith.
Globalisation impact on leadership, governance, culture and organisation structure
Globalisation impact on leadership
Globalisation put a direct impact on the organisational behaviour in which employees get
affected by the external policies and burden. This impact would influence company’s leadership
environment, leaders facing the issues of employee’s demoralise, dissatisfaction. Due to
globalised economy. Globalisation has affected management styles and leadership styles in many
ways such as international employee transfer, insecurity of jobs, market competition and
pressure. Along with that, it creates difficulty and complex environment in the working
environment through which Softwire faces the issues of customer dissatisfaction. In which

leaders should covers the risk from effective leadership styles and strategies to stable the
employee morale (Smith, 2014). Every country has their own culture and environment as well as
standards in order to focus on the main structure.
Organisation governance
It is another stage and function which would affected by the globalisation. Effective
governance is beneficial for productive management. Effective governance helps to retain the
capital needed for investments. It gives new effective process of working which needs to
introduce effective management process. Globalisation or international governance network
affects company’s structure (Upward and Jones, 2016). Due to heavy competition in the market,
they would get affected to another environment.
Globalisation impact on organisation structure
Organisation structure is the planning in which company make business plans in order to
adopt the best possible action. Organisation structure influence by the external factors or on the
other side it also affected by the external factors of the business environment. Globalisation
factors. They directly impact on the planning strategy, small scale organisation or traders get
affected from the globalisation changes. It also gets effect from the organisation structure by
changing in policies (Dyllick and Muff, 2016).
Globalisation impact on culture
Culture of the organisation would get affected from different gender, caste, religion,
collective and individualism, orientation issues. Moreover, globalisation has consisted different
forms of different cultural environment due to which company needs to face many challenges in
terms of employees behaviour. Due to unprecedented access to cultures impact become enhance
and uncontrollable. Individual behaviour is different from others which greatly impact on the
working condition and the relation in between employees (Dyllick and Muff, 2016).
P4 Evaluate the influences of ethical and sustainable organisation
In the organisation business ethics are the most important facts and essential requirement
for the organisation which helps company to adopt fair activities in the business environment.
Along with that, it is the policies, procedures and culture of doing the right things in the difficult
and often controversial issues. Along with that, it is the another main objectives and necessary
environment to quality effective management tool. With the helps of ethical environment ll
employees and corporate structure become positive and confident. Ethical environment

maintained the effective management tool and technique which Create new value addition
services to the company services (Chaklader and Gulati, 2015). It also maintained the
competitive advantages for the company among other competitors. Ethics guides and perform
positive activities in the business organisation. Along with that, another major positive impact of
the ethical consideration is reduced financial liabilities. Moreover, it is the important concern of
individual and group of teams members in order to meet the best effective process. This process
help to stable the business activities and image in the market. Globalisation is severe challenges
to the cultural identify and economy of national countries. Along with that, it is the motivated
factor which affect the motivational factors and effected challenges which gives impact on the
behaviour of motivation factor. Ethical consideration also impact on the honesty accountability
which helps to motivate employees confidence level. Along with that, there are some factors
which needs to be consider in terms of legal consideration (Ly, Vickers and Fernandez, 2015).
Actions that are good and legal but not a legal obligation.
Organisations needs to increase the stakeholders it is the another form of duty and form
of effective management skills. Along with that, ethical consideration is the significant factor
which enhance the services of ethical consideration. Impact of global environment is affecting
direct to the organisations. In order to proper the business at global level company needs to adopt
proper ethical consideration for the company.
TASK 4
P5 Evaluate the different ways your chosen organisations decision making can work effectively
in a global context.
Decision making in global context which highly influenced by the organisation
behaviour. Decision making process involves choices among alternatives course of action.
Softwire decision is to take the market in global context. It helps to make the effective
management objectives (Smith, 2014). Through which they operate its business at global context
and earn good amount of profit revenue. There are different context and ways to make the
decision effectively.
Enterprise Governance: it is the first effective decision making process in which board
of directors present the enterprise governance of the company. This gives the positive impact on
both the sides, conformance and performance aspects. Strategic planning to operate business at

global level must be productive and through which company can easily grow its brand value and
budget constraints through decision process can be fulfilled.
Context Mindset: in order to stable the market at global; level company ensure to make
decision in general context (Doh, Luthans and Slocum, 2016). In which company needs to
consider issues and challenges related to the decision making process. Impact of pre justice and
attitude of different culture people must be stable and positive in order to implement the decision
making process effectively. Besides, managements accountants also helps to understand or help
in decision making process. Manager of Softwire needs to analyse the global constraints to make
sure the future uncertainties.
Frame the issue: this is a step in which Softwire needs to address the key issues in order
to accomplish the objectives and target level. It also needs to understand the market global
competition which may give negative impact on the decision making process. Along with that,
take the role of stakeholder in order to frames the issues. This overall process determine the
issues of external factors through which company get affected.
Assemble information: this includes the provisions of insightful information to describe
the business current financial position apart from that, they also need to collect the information
about the global context and the information about competitors (Doh, McGuire and Ozaki,
2015). Moreover, it is the important to analyse the customer needs and wants in order to take the
competitive environment.
Select alternatives: alternatives must be selected to take the another best to perform the
task of plan. It is the process through which Softwire make alternatives plans of global in form of
failure one plan. These alternatives plan used at the time when company facing any risk or
uncertainties in future times. It gives negative impact on the business activities if company fails
to adopt alternative plans.
Decision: in this another way to make the decision making process effective and
impressive for the organisation (Doh, Luthans and Slocum, 2016). In this process understanding
is very necessary to keep the decision perfect and efficient. This process also helps to make the
effective changes in order to make the better decision making process.
Manage Implementation and impact: In this method Softwire needs to manage the
proper manageable decision making process and measure the possible impact of the results.

Quantifying and describing the potential outcomes. It makes good impression on the minds of
customers and clients who take services from the company.
Feedback: after taking effective decision making approach another major step is taking
feedback. This tool helps company to review the decision making plan and then take corrective
action plans for making decision productive (Liébana-Cabanillas, Muñoz-Leiva and Sánchez-
Fernández, 2018). It also helps to maintain the productive environment in the business
environmental. This steps measure the risk factors in the environment. It is the moreover
effective planning method which grab the higher opportunity. Such as employee feedback and
customer feedback is the two which helps to influence the company decision making approach.
P6 Determine and articulate the various routes to internationalisation.
To operate the business in global market leads business higher opportunity and growth
services. Along with that, it also very necessary to measure the impactful growth and decision
making process to keep the position in the market (Frynas and Mellahi, 2015). Global market is
the open market to trade their business activities. This gives and provides several technologies
and growth to grab the large number of customer attraction and customer satisfaction approach.
There are two ways to enter into the global market direct and indirect. Direct in which company
open their another office into the country or place. Another in indirect way in which Softwire
may adopt or give franchise to another entity to sell the product and services.
Different modes of entry in global market.
Direct exporting: This mode of entering into the market is selling directly into the
market which impact of the organisation process. In the mode direct there is no role of mediators
Franchise: Franchise is a relatively sophisticated arrangement where firm transfer it is all
functions rights and duties to another firm (Vera-Baquero, Colomo-Palacios and Molloy, 2016).
In which purchaser needs to purchase the franchise of the company. It is a kind of expand the
market into another country.
Licensing: licensing is a relatively which company sell their licence to another party in
terms of opening the new outlet of the company. If purchaser having large market in the in which
Softwire needs to enter. This mode of entry consider as the marketing for production.
Partnering: partnership is the productive mode of entry into the new market or at global
market. Partner must be having good market image which helps to getting good market response.
Partnership become productive entry mode if they having different culture, social factors.

Joint ventures: it is the another form of partnership in which after joint venture another
third party will be form. It becomes fruitful when one party has good goodwill and another party
having good resource of management (Frynas and Mellahi, 2015). In which two company
mutually joint the company functions and structure for aiming the same objectives. It also
becomes very productive and effective process of working, it is become very effective process or
strategy which become effective market entry mode.
Buying a company: it is the another form or mode to entry into the global market. In this
case one weak party buy to another party in order to run the business activity at global market.
Besides, some powerful company buying local firms or company in order to expanse the market
activities or business. Another main objective of the company is to grab the popularity and
market share in terms to sustain at global market.
Barriers in trade restrictions legislations (international trade barriers)
International trade barriers are commonly used by countries in international trade market.
Company facing these barriers while marketing the activities and functions of the business into
another international market (Vera-Baquero, Colomo-Palacios and Molloy, 2016). Along with
that, it makes changes according to the needs and wants. Organisation alternatives set the
alternative barriers in place of specific businesses.
Embargo: it is the barrier for specific goods and services, embargoes are a measure used
by government for specific political or economic circumstances.
Quotas: this tariff used by the companies for exporting or importing the services l. it
creates barriers in terms of changing the rates and challenges. In this tariff countries agree on
some limits of goods and services.
Licenses: country limit the licenses to limit imported goods to specific businesses which
is not legal in the country atmosphere. Along with that, this is the another restriction which some
company needs to facing.
Standard tariffs: Non tariff barriers can be used in place or in conjunction with
standards tariff barriers (Chaklader and Gulati, 2015). Along with that, it also gives impact
negative on the behaviour of business.
Justification
On the basis of above barriers and modes of entry company needs to overview the
concept of international business in order to overcome from all the uncertain situations. This