Thermax Ltd: Global Business Environment Analysis and Recommendations

This report provides a comprehensive analysis of the global business environment, focusing on its impact on Thermax Ltd. It examines the influence of globalization on corporate governance, leadership styles, and organizational culture, highlighting the importance of democratic and participative leadership. The report evaluates the different ways decision-making can be effective in a global context, emphasizing the need for clear objectives, dynamic processes, and consideration of employee needs and market trends. Furthermore, it explores the influence of ethical and sustainable globalization on organizational functions such as sales and marketing, research and development, and human resources. Finally, the report discusses various routes to internationalism, including franchising, licensing, and joint ventures, while also acknowledging potential barriers. The conclusion emphasizes the significance of effective decision-making, ethical principles, and the exploration of new market opportunities for sustainable growth and profitability.

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 3............................................................................................................................................3
P3 influence of globalisation on governance and leadership......................................................3
TASK 4............................................................................................................................................5
P5 Evaluate the different ways decision making can work effectively in a global context........5
P6 ways of internationalism for an organisation ........................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
Books and Journals.....................................................................................................................8

INTRODUCTION
Global business environment can be defined as the environment in which the company is
operating. The global environment effects the company operations in a negative way through
numerous factors. Also, the decision making capabilities of the company is effected by the
environment which impacts their profitability and productivity. This report focus on the Thermax
Ltd and the factors affecting their working environment. The company have founded in 1966 by
A.S Bhathena. This report will focus on the concept of corporate governance in relation to the
leadership and culture of the company (Lam and Wong, 2018). Also, it will evaluate the different
ways of decision making that can be used in the global context. Moreover, this re[port will
emphasize on the influence of ethical and sustainable globalisation on the company. Lastly, it
will cover the various routes that can be adopted for entering the international market.
TASK 3
P3 influence of globalisation on governance and leadership.
Corporate governance can be described as a way of governing the workforce towards the
attunement of the organisational goals. The managers focus on collaborating the efforts of the
workers and resources towards a sustainable environment. Globalisation impact the governance
of the organisation in the following way:
 Structure: It can be describes as the power and scope of responsibility and
accountability in the organisation. In context with Thermax Ltd, the company follows
democratic form of environment across the company. This leadership styles involves the
participation of the workers in the decision making process.
 Culture: This defines the behaviour, background, belief system of the workforce of the
company. Thermax Ltd follows the cooperative culture in the company which helps them
in managing complex situation in the organisation (Manning, Larsen and Kannothra,
2017).
 Leadership: It is process of guiding the workforce in the complex situation to ensure
enhanced efficiency and effectiveness. Thermax Ltd follows participative form of
leadership that will help them in getting suggestions form the employees regarding the
work management.

 Governance: Ensuring effective governance is also important for the company. This will
help them in sustaining competitive advantage. Thermax Ltd follows proper set of rules
and regulations that ensure discipline in the working environment.
Hofstede's Model
This method was introduced by Greet Hofstede. It is developed with the aim of ensuring
effectiveness in the working environment by reducing the chances of conflict to be arise in the
organisation.
 Collectivism vs. Individualism : Thermax Ltd aims at using the employees as team not
as an individual unit. This will enhance their productivity and profitability (Meckling
and Hughes, 2018).
 Uncertainty Avoidance Index: Thermax Ltd has developed effective strategies to deal
with the contingent situations and complex problems in the working environment.
 Femininity vs. Masculinity : Thermax Ltd is promoting more of female members to
fulfil their social responsibility towards the society.
 Short-Term vs. Long-Term Orientation : Thermax Ltd have developed both long
term and short term goals which will enhance their productivity and growth in present as
well as in future.
 Restraint vs. Indulgence : This model describes the obligation of Thermax Ltd towards
the implementation of opportunities.
P4 Evaluate the influences of ethical and sustainable globalisation on organisational functions.
Ethical globalisation defines the implementation of business ethics towards the
attainment of objectives of the company. This will ensure the sustainable development of the
company with respect to proper growth initiatives. This influences the organisational functions in
the following way:
 Sales and Marketing: These are the function that ensure the productivity of the
company. So, there must be ethical principles to be followed by Thermax Ltd to ensure
that consumer will consider them as a trusted brand (Montenegro, 2017). Thermax Ltd
focuses on adopting different marketing techniques to approach the customers.
 Administration: This function deals with handling of computer system, complaints and
many more of the company. In disclosure to Thermax Ltd, the team focuses on managing

their administration in a way that they can contribute towards the achievement of the
goals of the company.
 Research and development: This department performs the research for the development
of the effective products according to the current trends. Thermax Ltd focuses on
maintaining environment stability and energy resources by researching different
innovative techniques.
 Production function: This deals with producing the product with lower cost but with
high standards of features in it. This function can be performed effectively with the
implementation of high technology resources by Thermax Ltd in their working
environment (Peng, 2016).
 Human resource function: This function can be related with the recruitment of effective
employees who will be able to understand the goals of the company. Thermax Ltd adopts
internal and external ways of recruitment which will initiate their success path towards
enhanced profitability.
TASK 4
P5 Evaluate the different ways decision making can work effectively in a global context.
Decision making is a process of deciding about the allocation of funds and resources
across the company in an effective way. This will help them in managing the workforce and
resources together towards the attainment of goals of the company. The firm can take decisions
in the following way:
 Identify clear objectives and goal: The first step is to identify clear goals which will
help the management team to devise the stratagems for their achievement. Thermax Ltd
is focusing on defining their goals clearly to their employees to avoid confusion in the
working environment (Ponte, 2019).
 Dynamic Process: This process is a dynamic process which arises according to the
demands of the situation in the working environment. Thermax Ltd is using this to take
decision which will relatable and appropriate for the solution of the situation in the
company.

 Fulfilling needs of employees : the main role of the company is to focus on the needs of
the employees and Thermax Ltd try to fulfil their needs in order to motivate them for
high performance.
 Market Trends: It is necessary for Thermax Ltd to study the market trends. This will
provide them knowledge about the customer preferences and their expectations from the
company.
P6 ways of internationalism for an organisation
There are number of sources which can be use by business function which can be use by firm in
order to meet the needs and perform activated. Some of these function which can be use by
business fir are discussed below:
Franchising- Under this firm can use to take Franchising of other organization which
operating its function in business environment.; this can also evaluated that it also support those
business function which include path leads to brand awareness, a positive relationship and more
business opportunities (Prokopenko and Omelyanenko, 2017).
Licensing- This is that function which can be use by business organisation to take
permission for business operations which are performed business firm. This is defective function
which can be use to perform activates and manage all these function in effective way. This
include function which are related to Adopting of procedure which will leads to a strong
network connection between market and organisation (RAO, 2020).
Joint venture- In this function organization needs to cover and context with other firm in
similar business to advantages and run its operation at international level. This is function which
is performed in order to meet objectives and perform all these in effective way. This is the most
safest path of approach business worldwide because profit, risk and losses are shared by both the
parties. Mostly joint venture is formed for specified or short period of time (Safar, Sopko and
Poklemba, 2018)
There are number of barriers in business expedition which have to be used in accordance
with business activities and manage all those roles ineffective ways. Some of these are discussed
below:
Natural barriers- It incalculable all those function which are related to produce and
services offered by business firm. Under this there are number of business function which can be

used to achieve and manage all these acceding to need. These are taste, language, religion etc. A
decision may affect the business productivity at deep level (Singhania and Saini, 2018).
Tariff and non tariff barriers- These are those function which have to be used to
manage business activates and perform business function according to needs. Tariff barriers are
applied as custom levy/tax on goods and products under the law of government (Varzandeh,
Farahbod and Zhu, 2016)
CONCLUSION
From the above report it can be concluded that the decision making process is crucial for
a company. The managers must analyse the situation properly in order to draw effective
conclusions out of it. Also, the company must maintain their sustainability and growth by
implementing proper ethical principles in the working environment. Moreover, global business
environment help the company in exploring new markets opportunities to ensure continuous
growth and productivity. Also, for maximising the profits and minimising the cost the company
must ensure that they have effective resources which can be used in the production process.

REFERENCES
Books and Journals
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Manning, S., Larsen, M. M. and Kannothra, C. G., 2017. Global sourcing of business processes:
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power. New Political Economy, 23(1), pp.88-104.
Montenegro, Y. A., 2017. Colombia and the international business environment. Latin American
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Peng, M. W., 2016. Global business. Cengage learning.
Ponte, S., 2019. Business, power and sustainability in a world of global value chains. Zed Books
Ltd..
Prokopenko, O. and Omelyanenko, V., 2017. Priority selection within national innovation
strategy in global context. Economics and Business, 31(1), pp.5-18.
RAO, S. P., 2020. International business environment. HIMALAYA.
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Xie, E. and Redding, K. S., 2018. State-owned enterprises in the contemporary global business
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