Strategic Direction of Cameco Corporation in Global Market

This report provides a comprehensive analysis of the strategic direction of Cameco Corporation, a major uranium producer, within the context of globalization. It examines key drivers of globalization, including cost, market, and environmental factors, and their impact on the company's operations. The report also delves into the strategic challenges Cameco faces, such as increased competition, cash flow management, and marketing complexities. Furthermore, it explores the influence of globalization on organizational governance, leadership, culture, and structure, as well as the impact of ethical and sustainable globalization on organizational functions. The report also analyzes the decision-making process in a global context, considering factors like ethical climate, legislation, and changing trends. Finally, it evaluates various expansion routes that Cameco could adopt, including international, multi-domestic, global, and transnational strategies, along with their respective advantages and disadvantages. This assignment is contributed by a student to be published on the website Desklib. Desklib is a platform which provides all the necessary AI based study tools for students.

Impact And Strategic
Direction

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1Analyses the key factor which drive globalization..................................................................1
LO2..................................................................................................................................................2
P2 Strategic challenges faced by organization.............................................................................2
LO3..................................................................................................................................................3
P3 Influences of globalization on organizational governance, leadership, culture and structure.
......................................................................................................................................................3
P4 Evaluation of influences of ethical and sustainable globalisation on organisational
functions.......................................................................................................................................4
LO4..................................................................................................................................................4
P5 Impact of decision making in the context of global...............................................................4
Products And Services.................................................................................................................5
P6 Various Expansion Routes that can be adopt by company and its advantages and
disadvantages...............................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES ...............................................................................................................................8

INTRODUCTION
Strategic direction is the process of controlling, directing and managing the organization.
Strategic direction contains the plan and strategy that help to company for achieving the
organization goal in order to achieve the vision and mission of the company. For better
understanding the strategic direction. Taken the Cameco Corporation it is the world largest
public traded uranium company they produce the uranium and electricity. The report is based on
the strategic direction that company use in their business. The report will describe the different
factor that affect the company in globally. Also, analyses the opportunity and challenges faced
by company in global business environment (Direction, 2015). Further report will describe the
Strategic challenges faced by organization. Also, report will describe the influences of ethical
and sustainable globalisation on organisational functions. Further, report will determine the
decision making process that influence the international market in global context.
LO1
P1Analyses the key factor which drive globalization
Globalization
Globalization is the process that company follows to entered in the international market which
means company develop the international market by influencing the customer and start their
business in an international scale.
Cost factor
Increase or decrease transportation cost is directly impact on the company performance in global
market. Suppose Cameco Corporation will enhance their business in international market so they
increasing the international productivity, they able to increase the production and provides the
best quality product to the customer on timely. In addition, company able to provide the lower
price on their product so customer attract to the pricing strategy. Also, globalization its allows
providing the international fund to the developing countries. So Cameco Corporation has
received the help to the international monetary funds. So this funds provide helps to the company
with exchange currency and loans.
Market factor
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Market factor can be defined as a different market trends and different government policies. That
are design to increase the demand in the market. Different government policies is affected the
organizational financial position in the market (Olk, Rainsford, and Tsungting, 2015). Also,
help to channelize the flow of money in the company. Market factor include government policy,
political stability or instability, corruption, foreign trade policy, tax policy, labor law,
environmental law etc (Saunders, 2015 ). So Cameco Corporation has managed the all factors to
expand their business in the international market. For example Cameco corporation able to
provide lower prices on the product to the customer by taking the advantage of reducing the
labor cost.
Environmental factor
Environmental factors include the different environmental aspects such as weather, climate,
climate change which may affect the different organization such as tourism, farming, agriculture
and insurance. Cameco Corporation is the uranium company so they also face problem related to
climate change. The impact of climate change is affect the Cameco Corporation that how they
operate and produce the product in international market. So company is more focus and involve
in the corporate social responsibility and sustainability.
LO2
P2 Strategic challenges faced by organization
Increase competition
It is never easier to enter in the international market. Many companies face the competitive
problem when they enter in the international market Because already other companies knowing
the international market as compare to the new company. So Cameco Corporation has entered in
the new market they face the competition so this is the big problem for company that customer
cannot attract easily because of existing products.
Cash borrowings and resources management
A good profit margin may look nice on the financial statements of company, but if expenditures
increase that creates the negative impact of the balance sheet of the company. So company
won’t be able to stay in international market for long time. So Cameco Corporation has managed
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and handle the business accounting and taxes that helps to create positive balance sheet of the
company (Saunders, 2015. ).
Marketing and consumer loyalty
Finding the right distribution and marketing channels is the key of success the business When
company attract the international customer by the way of promotional activity. This activity is
increase the cost of the company that's create the negative impact of the company because of
increasing operational cost. Cameco Corporation are spending more time to figure out that what
is different needs and wants of the customer and also how maintain the loyalty of customer. This
all activity is difficult for the company, while at the same time figuring out how to manage the
cash and cost-effectively for reaching new customers.
LO3
P3 Influences of globalization on organizational governance, leadership, culture and structure.
Governance
Cameco Corporation has entered in the international market. So company must follow all the
rules and policies of different country that is more important for the company when they enter in
the different market so company should be follow all government policies such as tax policies,
exchange rates, consumer acts etc.
Leadership
Cameco Corporation change their leadership according to the different culture of employees.
Company should use the autocratic, Democratic leadership style to manage their employees, also
company provide the best training facility to their employees for understanding the environment
of the company (Cassidy, 2016 ).
Culture
Cameco Corporation has provided the best service to their customer according to the potential
income of the customer. Also, they provide the best product to the customer according to the
needs and wants.
Structure
Company enter in the international market. They open their different shops in the different
market according to their marketing strategy. So company must be change their structure
according to the strategic direction and different strategy.
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P4 Evaluation of influences of ethical and sustainable globalisation on organisational functions
Ethical globalisation refers to the term which is related to the global level and is related to
the principle of moral values which helps organisation to differentiate between what is right and
what is wrong. Ethical globalization influences the business and its functions in many ways.
Ethical globalisation keeps changes due to continuously and rapidly change in cultural
environment at global level. Ethical globalisation set the base of ethical behaviour of business at
the global level which help organisation to work and conduct its activities in the proper manner
without harming the customers and environment which is good for the company's reputation.
Global corporate social responsibility is the part of ethical globalisation which benefits the global
communities. It impacts the business and its activities (Beck, 2018). Global CSR can involves
various activities such as donation, charity, plantation, conducting and participating various
global issues like global warming, usage of polythene etc.
Sustainable globalisation refers to the term which is regarding to the sustainability of the
organisation at global level within the framework of social, economic and environment aspects.
Sustainable globalisation increase the cut-throat competition for the organisation which impact
not only the activities of organisation but also impact the whole organisation. Sustainability
globalisation also impact the customers' needs and wants which influence the production, selling
and distribution strategy of business. It also impacts the sustainable development of organization
which can be achieve through enter into wider market by producing goods and services, adopt
the advance technology and strategic decision making regarding business and its activities, focus
on innovation based ecosystem, developing better relationship with competitors and customers
and create cross culture business environment etc. (Hirst, Thompson and Bromley, 2015). It also
impacts the financial and personnel sustainability of organisation which influences the activities
of organisation by earning more profitability and revenue.
LO4
P5 Impact of decision making in the context of global
Various factors are mentioned below which may influence the decision making process in
global context -
Ethical Climate
Ethical climate refers to the moral work environment and implication of ethics within the
organisation. There is positive influence of ethical climate on decision making. If Cameco gives
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priority to the variables of ethical environment such as Instrumental, caring, law and order, rules,
and independence and ethical climate focus on the organisational profit, self-interest and
efficiency of business. Then the probability of effectively decision making taken by company is
higher.
Legislation
Government policies and laws impact the decision making of the Cameco. If Cameco
decided to expand its business in order to enter into globalisation world, before that company
must have to look at the various rules and regulations of the government in the context of
internationalisation. For example, government can impose new policy or rule that will allow the
company to expand in international market after reaching a fixed turnover range. And company
(whose turnover is lower than that fixed range) who is ready to expand, now have to change their
decision making regarding expansion.
Changing Trends At Global Level
Due to rapidly change in the demand of customers and political & social environment,
the trend is rapidly changed at the global level which impact the production, decision making and
strategies of the business due to different between past, current and future trend. T his lead to
change in the structure of the organisation too which influence the business as well (Lerner and
et.al., 2015).
Products And Services
It is a major factor that influences the decision making of the organisation at the global
level. If products and services offered by Cameco are not satisfactory in the global market as
much as in the national market. This will impact the decisions of the organisation regarding
produces and services because company wants to sustain its business at global market.
P6 Various Expansion Routes that can be adopt by company and its advantages and
disadvantages
There are various routes for the Cameco to internationalisation its business by expanding
through internationalization strategy. These routes are as follows -
International Strategy
In this strategy, Cameco can offer its products and services to all those foreign markets
where these products and services are not available. This strategy transfers the core competencies
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of the business to the foreign market. It has lack of local responsiveness (Expansion Strategy,
2019).
Multi Domestic Strategy
In this strategy, multi-domestic companies together offer the products and services to the
foreign market. Advantage of this strategy is that company can customized its products and
services according to the customers' needs and wants, which can be beneficial for the
organisation. Disadvantage of this strategy is due to rapidly changes in demand of customers,
company have to change its strategy which can be costly for the company.
Global Strategy
In this strategy, company adopts low cost leadership strategy and offer those products and
services to the selected foreign market. They offer only those products and services in which
they are expert. Advantage of this strategy is it expand your customer based and target customers
for the products and services. Disadvantages of this strategy is that if company is not able to
understand the foreign culture, then it can create a lot of challenges for the organisation.
Transnational Strategy
In this strategy, company use the combination of multi-domestic and global strategy,
which means company offers those products and services to the foreign market in which they are
expert and use low cost leadership strategy in order to gain local support. It is good because
when company successfully implement the strategy, then company do better performance in
comparison to those companies who either adopt the global strategy or multi-domestic strategy.
It is difficult to handle the strategy because it requires fulfilment of both global and local goals
(Knight and Liesch, 2016).
CONCLUSION
From the above study, it has been summarized that global business is a complex business
which get effect the various international factors. These factors can influence the business
negatively or positively. There are various challenges at the global level which company should
address in order to sustain its business for the longer time at international platform. Global
business structure, leadership, working style and culture also change when company enter into
global market. Company's activities and decision making process also get influence by the global
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factors which are constantly changing. There are various strategies which is adopted by company
in order to successfully expand its business in global level.
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REFERENCES
Books And Journals
Beck, U., 2018. What is globalization?. John Wiley & Sons.
Cassidy, A., 2016. A practical guide to information systems strategic planning. Auerbach
Publications.
Direction, S. 2015. So why do people use Facebook and Twitter? Uses and gratifications of
social media use.Strategic Direction. 31(6).pp.4-6.
Hill, T. 2017.Manufacturing strategy: the strategic management of the manufacturing function.
Macmillan International Higher Education.
Hirst, P., Thompson, G. and Bromley, S., 2015. Globalization in question. John Wiley & Sons.
Knight, G.A. and Liesch, P.W., 2016. Internationalization: From incremental to born global.
Journal of World Business. 51(1). pp.93-102.
Lerner, J.S., and et.al., 2015. Emotion and decision making. Annual review of psychology. 66.
pp.799-823.
Olk, P., Rainsford, P. and Tsungting, C. 2015. Creating a Strategic Direction.
Saunders, L. 2015. Academic libraries' strategic plans: Top trends and under-recognized areas.
The Journal of Academic Librarianship.41(3). pp.285-291.
Online
Expansion Strategy. 2019. [ONLINE]. Available through:
<https://businessjargons.com/expansion-strategy.html>
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