Impact and Strategic Direction of Globalization on Business

This report examines the multifaceted impact of globalization on businesses, focusing on the case of CAMCEO, a mining and energy corporation. It explores how globalization influences organizational structure, culture, and functions, highlighting the role of technological advancements and cultural dimensions, particularly through Hofstede's cultural dimensions theory. The report further analyzes the influence of globalization on organizational decision-making and strategies, utilizing the McKinsey 7s model to evaluate factors affecting business processes. It delves into the hard elements (strategy, structure, system) and soft elements (staff, shared values, skills) of the model, illustrating their impact on the company's operations in the global market. The analysis covers advantages and disadvantages of operating in a global market and concludes with a summary of the factors that influence the company's structure and decision-making processes.

Impact and strategic direction

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
LO 2.................................................................................................................................................1
LO 3 ................................................................................................................................................1
Global market influences an organisation's structure, culture and functions.........................1
LO 4.................................................................................................................................................2
Influence of globalization on organisational decision-making and strategies........................2
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................4

INTRODUCTION
Globalization is the process of expanding and developing the business of companies in
the world and another countries. On another words globalization is the expansion of several
businesses to the global market throughout the world. CAMCEO is mining and energy
corporation. It was founded and formed in 1988 by the privatization and merger of 2 crown
corporation. The products in which it operates are electricity and uranium. This study will show
about different drivers of globalization that forces the company to expand their businesses in
another country (Beck, 2018). It also shows about disadvantages and factors that affect the
company in order to expansion of its businesses. It also influences and impact on the
organisation's functions, structure and culture. Globalization has some advantages and
disadvantages that impact on decision making process of the company and its strategies.
LO 1
Covered in PPT
LO 2
Covered in PPT
LO 3
Global market influences an organisation's structure, culture and functions
There are many factors that force the company to expand their business into another countries
and markets are technological development which enable people of the society and culture to
communicate in effective manner with each other through out the world. Communication,
organisation and globalization are accompanied by various cultures. With the help of Hofstede's
cultural dimension theory the company can better identify its culture and affect on the culture
(Beck, 2018).
Hofstede's cultural dimensions theory: This theory helps the manager of the company
by comparing countries culture. It also describes the effects of a society culture on the behalf of
values of their members and these values relate to their behaviour by using organisational
structure. Different countries culture are getting more interconnected and the business world is
becoming increasingly global. There are some dimension of this theory are:
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Power distance: This dimension shows the degree to which the members who are less
powerful than others expect and accept that power is distributed unequally. They belief about
appropriate power distribution in the society.
Individualism: This dimension shows and refers the importance of individual versus
group interest. In this type of dimension an individual expect to be taken care of only themselves
and their close relatives or family members (Crane, Kawashima and Kawasaki, 2016).
Masculinity: The femininity and masculinity is all about values that are considered most
in the society. This side of dimension shows a preference in the society related to achievement
and material rewards for success. Men are expected to be assertive and concentrate on material
success on the other hand women are expected to be modest and concentrate on improving their
lifestyle for their family.
Time orientation: It is very important for the societies to maintain their links with its
own past with the challenges of the future and the present. Most of the countries like Asian
country known for their long term orientation.
LO 4
Influence of globalization on organisational decision-making and strategies
There are several factors that influence the company while operating in global market.
All factors influence the company's decision-making process and strategies which makes by
leaders and managers. With the help of McKinsey 7s model it can evaluate and identify that what
factors affect the company's process and strategies (Dwyer, 2015).
McKinsey 7s model: McKinsey model is an effective tool that helps the manager of
CAMECO corporation to understand that the need of improvement and about factors that affects
the company's business processes and activities. This model is made up of 7 elements that help
the company in their growth and their success. Elements of this model are: Structure, strategy,
system, staff, skills, shared values and style. This model is also divided into 2 categories in order
to better understand it such as: hard elements and soft elements.
Hard elements:
Hard elements of this model include strategy, system and structure. It makes easy for
manager of the company to understand and identify them.
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Strategy: Strategy is the plan and way of making plan in order to being in a competition
and rise above their competitors. Strategy is depends upon the work of manager and each
department or in another words it can be defined by the sub sections of the business in which
CAMECO works. For example, it operates in mining and and uranium so for manager of this
company it requires to make strategies of to build the mine in the best manner. For accounting
manager, it is important them to make strategy related to provide the accurate and enough data
that is required by the company for operating in another country (Guriev, 2018).
Structure: Structure is another element that the company need to handle while operating
in global market. Structure identify all functional departments of the company. This structure of
CAMECO deal in terms of the whole organisation. The company follow hierarchy structure and
all the functions and departments of the company are interrelated. Hierarchy structure of
authority, control and communication also impact on the company. This also impact on the
process of the company like decision-making process and strategies made by the manager and
leaders in order to expand their business and achieve all the determined goals.
System: System is also known as method which takes place on regular basis in order to
operate business and move forward. System is the element where manager of the company invest
their lots of time. In this elements manager analyse and see that all the workers are on the right
path. Global market also affect the activities of the company Hence it affects the system of the
company (Hallikainen and Laukkanen, 2018).
Soft elements:
Soft elements of this models becomes difficult for the manager to quantify. Manager of
the company also focus on this elements as it also play an important role and it should analyse
while operating in the global market. It involves Staff, shared values and staff that all are a part
of culture and structure of the company.
Shared values: It is most important element of overall culture of the company. It can be
achieved when all the objectives and purpose are done. The shared values of the company should
stretch to all the workers in order to create a feeling of camaraderie.
Staff: Global market also affect this element because staff and members have many
strengths and weaknesses. It is important for the leader to strengthen their skills and improve the
strengths of their staff in order to accomplish all the goals of the company. Staff also play an
important role that can affect the decision making process by leaders and managers of the
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company. They can make the good quality products and also help the company in expanding
their business.
Skills: Skills also play a vital role that impact decision-making process and strategies of
the company. This shows about ability and potential of workers that can help manager to meet
their goals as CAMECO corporation expand its business in another country like Australia and
Canada so skills of the workers can help them to develop their business in developed markets
(Liobikienė, Mandravickaitė and Bernatonienė, 2016).
CONCLUSION
From the above study it has been concluded that there are various factors that affected the
company's structure, decision-making process like skills of the staff, system which the company
uses. Operating in global market had some advantages and disadvantages. Company had to face
problems like external factors and strategic complexities with operating in global market. Drivers
of globalization which force the company to expand its business in order to increase their sales
consisted advancement of technologies, market trends, cost drivers and environment drivers.
Two models also helped the company to analyse and understand about their growth such as
McKinsey 7s model and Hofstede's dimension of culture.
REFERENCES
Books and journals
Beck, U., 2018. What is globalization?. John Wiley & Sons.
Crane, D., Kawashima, N. and Kawasaki, K.I. eds., 2016. Global culture: Media, arts, policy,
and globalization. Routledge.
Dwyer, L., 2015. Globalization of tourism: Drivers and outcomes. Tourism Recreation
Research. 40(3). pp.326-339.
Guriev, S., 2018. Economic drivers of populism. In AEA Papers and Proceedings (Vol. 108, pp.
200-203).
Hallikainen, H. and Laukkanen, T., 2018. National culture and consumer trust in e-
commerce. International Journal of Information Managemen. 38(1). pp.97-106.
Liobikienė, G., Mandravickaitė, J. and Bernatonienė, J., 2016. Theory of planned behavior
approach to understand the green purchasing behavior in the EU: A cross-cultural
study. Ecological Economics. 125. pp.38-46.
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Najam, A., Runnalls, D. and Halle, M., 2016. Environment and Globalization: Five Propositions
(2010). The Globalization and Environment Reader. p.94.
Pieterse, J.N., 2015. Globalization and culture: Global mélange. Rowman & Littlefield.
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