Global Business Environment: Trade, Digitalization, and Challenges

This report provides an overview of the global business environment, focusing on the key factors driving global trade and commerce. It includes a PESTLE analysis to identify external factors affecting businesses, specifically referencing Mr. Biggs Company. The report evaluates the impact of digital technology on globalization and explores the challenges and complexities that globalization brings, such as cultural differences and currency rate fluctuations. Recommendations are provided to address these challenges, including adapting to societal norms and using hedging techniques. The conclusion emphasizes the important role of globalization in business development, improving visibility, and enhancing profitability. The document refers to external sources.

Global Business
Environment (Part 1)

Table of Contents
• Introduction
• Key factors that drivers global trade and commerce
• Pestle Analysis
• Impact of digital technology on globalization
• Evaluation of different challenges complexities which globalisation brings
• Recommendations
• Conclusion
• References

Introduction
Globalisation may be define as the
process of spreading the goods and
services or different operations of
business all across the globe.
Globalisation is being considered as a
development drive for all the
organisation who operate their business
functions across the border of nation or
culture(Bardouille, 2017).

Key factors that drivers global trade and
commerce
Globalisation came with different opportunities for
the businesses which help them in generating higher
profit and expanding their business all over the
globe. In context to Mr Biggs Company the analysis
of key driving factor that foster the presence of
globalisation has been discussed below:-
Cost
Market
Competition
Environment

Pestle Analysis
The term PESTEL analysis is being considered as an tool which are used by the different
types of organisation in order to identify the external factor which are faced by them.
Organisation who successfully responds to the macro environment factor can enjoy the
competitive advantages over others. In respect to Mr Biggs, the PESTLE analysis has been
discussed below:-
• Political
• Economic
• Social
• Environmental
• Technology
• Legal

Impact of digital technology on globalization
The development of technology in the global
market has been categorized as the main
reason of globalisation. With the help of
digital technology every business enterprises
have opportunity to increase their economies
of scale and market size. Technological
advancement not only help in reducing the
cost of transportation but also improves the
communications between the nations.

Evaluation of different challenges and
complexities globalisation brings to an
organisation
With the effect of globalisation, organisation not only operate their different
business functions in proper manner but also develop strategies according to the
dynamic market which help them to stand in the market for a long period of time.
Due to the immense competition of the firms at the global level there is a high
chance of challenges and complexities face by the them. In relation to Mr Biggs,
following are the challenges and complexities face by them has been discussed
below:-
• Cultural differences
• Currency rates

Recommendations
• If the management of the Mr Biggs company wants to overcome from the problem
of loss of culture identity first they have to adjust their mind set according to the
society and start communicating with them. This process will take time but help
them in achieving a successful position in the market of UK. By doing this they
can develop a good and positive image in the international market(Krivogorsky and
Ballam, 2019).
• If the management of the Mr Biggs company wants to overcome from the
complexity and challenge of currency rate they have to use the hedging techniques.
Investment like hedging ETF is being considered by the company in order to invest
their money.

Conclusion
From the above PPT, it has been concluded that from the business point of view
globalisation play a very important role not only in the development of business
at the international marketplace but also improves the visibility as well as
profitability of the company. Following report concluded an external analysis
with the help of PESTEL which identified the different external factor affect the
working of the company.

References
• Bardouille, P., 2017. The business of development: Linking profits and
principles to address global development challenges. In Teaching Business
Sustainability (pp. 65-81). Routledge.
• BĂTUȘARU, C.M., 2019. SUSTAINABILITY OF THE SMALL BUSINESS
ENVIRONMENT IN ROMANIA IN THE CONTEXT OF INCREASING
ECONOMIC COMPETITIVENESS. Management of Sustainable
Development, 11(2).
• Bidault, F., José, R., Zanakis, S.H. and Ring, P.S., 2018. Willingness to rely on
trust in global business collaborations: Context vs. demography. Journal of
World Business. 53(3). pp.373-391.
• Daradkeh, M. and Moh'd Al-Dwairi, R., 2018. Self-service business
intelligence adoption in business enterprises: the effects of information
quality, system quality, and analysis quality. In Operations and Service
Management: Concepts, Methodologies, Tools, and Applications (pp. 1096-
1118). IGI Global.