Unit 25 global business environment

The level to which globalization has grown in recent decades was largely due to this fact. There has been a dramatic increase in international trade and general globalization as a result of the integration of all nations made possible by technical progress. The term globalization is often used to refer to the growing economic and trade ties between countries around the world. However, when businesses plan to expand into foreign markets for commercial purposes, they need to pay attention to a variety of elements that influence the success of their overseas operations and standing in the global marketplace (Beck, 2018). In this study, the researcher will discuss the various considerations that must be given to the companys foreign operations. As an example, this study might use Jaguar, a multinational corporation active in the automobile industry, as a case company. NỘI DUNG: Introduction......................................................................................................................................2 LO1 Analyse the key factors which drive globalization..................................................................2 P1 Key factors of cost, market, environment, and competition that drive global commerce and trade..............................................................................................................................................3 M1 Critically analyze the impact that key factors have on the global business environment in terms of opportunities and challenges..........................................................................................4 LO2 Determine the strategic complexities associated with operating in a global environment......5 P2 Complexity of strategic challenges faced by organizations when operating in a global environment, supported by specific examples............................................................................. 5 M2 Evaluate strategic challenges in the context of risk and diversification and the supply chain flow.............................................................................................................................................. 6 LO3 Evaluate how operating in a global market influences an organizations structure, culture, and functions....................................................................................................................................7 P3 Evaluate the influences of globalization on organizational governance and leadership, structure, culture, and functions...................................................................................................7 P4 Discuss the influences of ethical and sustainable globalization on organizational functions.8 M3 Critically evaluate the influences of globalization on organizational structure and culture and functions................................................................................................................................ 8 LO4 Develop a global strategy to support decisionmaking for a given organization.................... 9 P5 Evaluate the different ways that decisionmaking can work effectively in a global context..9 P6 Devise objectives and strategies to support global decisionmaking to meet business objectives..................................................................................................................................... 9 M4 Devise strategies that meet a range of different stakeholder perspectives in a global context ....................................................................................................................................................10 Conclusion.....................................................................................................................................10 References

Unit 25 Global Business Environment Table of Contents Introduction LO1 Analyse the key factors which drive globalization P1 Key factors of cost, market, environment, and competition that drive global commerce and trade M1 Critically analyze the impact that key factors have on the global business environment in terms of opportunities and challenges LO2 Determine the strategic complexities associated with operating in a global environment P2 Complexity of strategic challenges faced by organizations when operating in a global environment, supported by specific examples M2 Evaluate strategic challenges in the context of risk and diversification and the supply chain flow LO3 Evaluate how operating in a global market influences an organization's structure, culture, and functions P3 Evaluate the influences of globalization on organizational governance and leadership, structure, culture, and functions P4 Discuss the influences of ethical and sustainable globalization on organizational functions.8 M3 Critically evaluate the influences of globalization on organizational structure and culture and functions LO4 Develop a global strategy to support decision-making for a given organization P5 Evaluate the different ways that decision-making can work effectively in a global context P6 Devise objectives and strategies to support global decision-making to meet business objectives M4 Devise strategies that meet a range of different stakeholder perspectives in a global context 10 Conclusion 10 References 11 Introduction The level to which globalization has grown in recent decades was largely due to this fact There has been a dramatic increase in international trade and general globalization as a result of the integration of all nations made possible by technical progress The term "globalization" is often used to refer to the growing economic and trade ties between countries around the world However, when businesses plan to expand into foreign markets for commercial purposes, they need to pay attention to a variety of elements that influence the success of their overseas operations and standing in the global marketplace (Beck, 2018) In this study, the researcher will discuss the various considerations that must be given to the company's foreign operations As an example, this study might use Jaguar, a multinational corporation active in the automobile industry, as a case company LO1 Analyse the key factors which drive globalization One definition of globalization is the proliferation of cross-border social, economic, political, and cultural linkages and exchanges Economic globalization, social globalization, political globalization, and other aspects of globalization all contribute to its complexity Bit of background to Globalisation The process of globalization had begun previously, but since then, it has expanded considerably Globalization, represented by the establishment of the silk route, is often seen as the first example of the successful interconnection of nations for the sake of commercial exchange Europe and Asia were now more connected than ever because of the silk route As a result, the need for globalization emerged, and soon after, all economies began focusing on strengthening their links with one another to facilitate more streamlined commerce (Hall and Werbner, 2020) Simply put, globalization is the process through which countries become more dependent on one another as a result of the globalization of trade, finance, ideas, and people Cost, market, environment, and rivalry are just some of the many variables propelling globalization Introduction of the chosen company Jaguar is a renowned British automaker that also operates on a global scale The company prides itself on being a premium luxury carmaker This business sells high-end items worldwide The purpose of this research is to shed light on the example company's activities in the global market P1 Key factors of cost, market, environment, and competition that drive global commerce and trade The international business community and market are being affected by several important variables Factors such as these are broken down in great detail, including: Cost: The price tag has a significant bearing on the functioning and globalization of the firm The economic climate of the country, economies of scale, logistical costs, and all the other cost elements associated with production and operation management vary from country to country, and all of them serve as cost drivers This report suggests that the corporation should pay close attention to all of these aspects because they have an impact on investments and help propel globalization (Baldwin, 2022) Accordingly, it can be concluded that the cost element needs to be considered before entering into any nation, as it would affect the required capital and investment for the globalization of the firm When selling their products in other countries, for instance, the Jaguar corporation in the case study has better watch the bottom line Cherunilam, 2021 Jaguar sales in a country are impacted by a variety of factors, including the local economy Globalization has helped Jaguar save money by reducing the price of shipping in bulk and the effort put into selling the items Market: This consideration suggests that the differences between the global market and the local market are significant for multinational corporations Customers' preferences in products and purchasing habits are influenced by a wide range of market elements, all of which must be taken into account by businesses (Simona, 2022) Increased competition as a result of globalization is one of the many market factors affecting Jaguar Environment: The corporation places a premium on its operating environment When a company prepares to enter a new market first analyze how it will be affected by the local business climate there The best country for international expansion can't be chosen until all the advantages and disadvantages have been weighed There is a lot of pressure on Jaguar to alter its product lineup and operational procedures to adapt to the rapidly evolving global business climate Increasing globalization is claimed to be altering the dynamic corporate environment Competition: Among the many crucial considerations that businesses must take into account is the nature of the competition This might improve their standing in the global market and provide them an edge over rivals To succeed internationally, a company needs to learn everything it can about its main rivals and the tactics they take to stay in business (Katsikeas et al., 2019) The analysis should guide the organization in developing new strategies that will help it compete successfully in international markets It's no secret that Jaguar's sales are suffering because of the intense competition they face in the global market This is why it's crucial for the corporation in this scenario to devise methods of effectively controlling the rivalry between them M1 Critically analyze the impact that key factors have on the global business environment in terms of opportunities and challenges When businesses venture into global markets, they face a unique set of difficulties and opportunities Competition Opportunities (Advantages) and challenges (disadvantages) One of the major difficulties for companies doing business internationally is competing with multinational behemoths Thus, it can be concluded that the firm faced a challenge in adapting to the increased competition and that it was forced to prioritize efficient marketing and product distinction as a means of dealing with the situation Nonetheless, the rise of new rivals has prompted Jaguar to increase its spending on R&D and the breadth of its product offerings to better serve its global clientele Environment, Opportunity (Advantages), and challenges (disadvantages) The external business environment is influencing every facet of the company's operations When a company expands its operations internationally, it faces a new set of opportunities and threats arising from the region's unique political, social, legal, and economic climate Jaguar faces formidable difficulties due to international politics (Hopkinson et al., 2018) In addition, the case firm has serious challenges from the law, including the various norms and regulations about the administration of foreign operations However, now that Jaguar is expanding its operations worldwide, the company has a chance to build a large consumer base, which in turn helps businesses reap more rewards The company has the chance to generate sales and grow as a result of its exposure to a large number of potential customers Cost, Opportunity (Advantages), and challenges (disadvantages) Considered a negative for the business are the elements that drove up the price of investments An advantage in terms of cost per unit can be realized, however, if Jaguar's sales were to rise over the world Market, Opportunity (Advantages), and challenges (disadvantages) The shifting nature of the market provides the organization with an opportunity to improve its market share and expand its client base On the other hand, it puts the case firm under pressure to alter its operations and its products, which is a negative for the business Cloud computing and technology (Advantages and disadvantages) The widespread adoption of new technologies presents fantastic new avenues for product development Jaguar is making an effort to use cloud computing and other cutting-edge technologies in its production processes Using AI, the company is attempting to alleviate drivers' anxiety (Antràs, 2020) Other technologies are also employed to lessen the vehicle's impact on the environment by lowering its fuel consumption and pollution levels, among other benefits One of the drawbacks of Jaguar's technology is that it is more expensive to implement LO2 Determine the strategic complexities associated with operating in a global environment P2 Complexity of strategic challenges faced by organizations when operating in a global environment, supported by specific examples Since a company's foreign success is directly tied to the techniques it employs when entering the market, this is an area where more attention should be paid Companies operating on a global scale must pay close attention to complying with a variety of regulations as they go about running their operations When overseeing business dealings between countries, it is essential to adhere to international trade law If they want to effectively manage their cross-border operations, corporations must shape their strategy by international trade legislation Managing a multinational enterprise effectively necessitates a concentrated effort in all aspects of business management There are a variety of internal and external business environment issues that could potentially be problematic for the company With sales falling and competition rising, Jaguar Land Rover, a leading automaker, is confronting strategic issues Sales have been dropping for the corporation in key regions like Europe, China, and the United States In addition, the corporation may face strategic problems due to a variety of other factors, including rising public awareness of environmental dangers, new rules and regulations, tariffs, more competition, a slowing economy, and even political instability (SPOTLIGHT, 2023) To improve their efficiency, businesses operating on a global scale may find it useful to pay close attention to market trends and adapt their company plans accordingly M2 Evaluate strategic challenges in the context of risk and diversification and the supply chain flow Effective risk management is a top priority for the world's largest corporations The potential for harm that varying environmental conditions and regulatory frameworks provide to businesses is growing As a multinational automaker, Jaguar is not immune to the risks posed by several strategic difficulties Efforts to boost the business's operational and financial performance are presenting significant strategic hurdles As such, businesses must implement methods that will allow them to successfully deal with these challenges Jaguar, an automaker with an eye on the global market, is concentrating on expanding its business by developing and launching a brandnew product at the supply-chain stage (Getahun et al., 2018) They target certain subsets of their customer base with tailored marketing campaigns Aside from these problems, businesses also encounter other supply chain-related problems Natural disasters, economic difficulties, political unrest, and other problems can all have an impact on businesses However, businesses must have efficient supply chain management methods to keep up with rising client demands To successfully manage the many supply chain difficulties and guarantee smooth supply chain flow, a global company like Jaguar must place a strong emphasis on supply chain diversification Companies operating on a worldwide scale are affected by a variety of elements of the international business climate Companies are affected in unique ways by the many environmental conditions If the country's economy were doing well, for instance, more highend, pricey goods would sell However, if unemployment were to rise in the country, consumers would be less likely to spend money on luxury items So, it's safe to say that the company's global expansion would bring with it a new set of advantages and threats LO3 Evaluate how operating in a global market influences an organization's structure, culture, and functions P3 Evaluate the influences of globalization on organizational governance and leadership, structure, culture, and functions An important part of any organization is its leadership and governance The company's efforts should be directed toward accomplishing defined goals and objectives Then, a system must be cleared based on the organization's governance For a company to be successful in the global market, it must have solid organizational governance in place Additionally, leadership has a significant impact on the success of a business, making it essential for a company to have competent management The leader's leadership style should be effective if he or she is to inspire his or her team This is significant because the advent of globalization necessitates the adoption of novel approaches, values, and methods in the workplace (Stevenson, 2019) As a result, the company needs highly driven workers to ensure it receives the best possible output As a firm grows internationally, there is typically a commensurate increase in the degree to which the organization's function must adapt to reflect the new environment To that end, Jaguar must prioritize staffing all positions with individuals who bring exceptional levels of expertise and experience to their work And consequently, the company's internal structure must also be revised Almost all significant corporations throughout the world employ a hierarchical organizational structure, and that's the one that businesses should use (Nguyen and Tran, 2018) As a result of globalization, both the structure and the operations of organizations will undergo significant transformations Companies that want to grow internationally will find that globalization has ramifications for their corporate culture and will require them to make adjustments All employees should be treated with dignity and fairness, and the organization should foster a culture that promotes these ideals To effectively manage diversity in the workplace and foster greater cooperation and trust among all employees, firms should work to develop a culture that transcends national boundaries As a result, Jaguar places a premium on fostering a culture where its employees may flourish professionally while still upholding the company's high standards of conduct P4 Discuss the influences of ethical and sustainable globalization on organisational functions A company's concentration on the global market increases the need of conducting business ethically In addition, managers of a global company must give their whole attention to making moral choices and adhering to all applicable business norms As a result of globalization, businesses now must treat their suppliers, employees, and consumers with more integrity There is also the matter of making sure that the company's global expansion doesn't harm the environment (Kim and Cavusgil, 2020) Therefore, they should give attention to globalization that doesn't harm the environment All of these things have an impact on how a company operates, and that firm needs to be more environmentally conscious in how it does its day-to-day business M3 Critically evaluate the influences of globalization on organizational structure and culture and functions The effects of globalization on the structure and culture of the company are substantial Because of the impact globalization will have on all of the McKinsey 7s model's components, the organization should prioritize adhering to all of them The company's structure, style, skills, staff, strategy, and system should all work together to achieve success They should also foster an environment that values and encourages diversity among employees Organizational effectiveness is being impacted from the inside out, thus it makes sense for the organization to concentrate on these issues as it expands internationally LO4 Develop a global strategy to support decision-making for a given organization P5 Evaluate the different ways that decision-making can work effectively in a global context Companies need to be able to make good decisions that will help them function properly in the worldwide business climate When a company sets its sights on the global market, it faces stiffer competition To survive in this environment, businesses need to concentrate on creating winning methods to deal with other firms The spread of globalization has made it easier for people to learn about the customs and beliefs of others around the world Since the company operates on a global scale, the pressure on its management to consider all of these factors is significant There needs to be a shift in leadership As a result of globalization, there is now a far more diverse workforce, necessitating the use of participatory transformational leadership by global business executives to effectively manage their organizations (Lang and Tavares, 2018) Also included are several approaches to administration, marketing, pricing, and everything else Consumers can now easily research products online, therefore businesses must maintain relatively consistent pricing throughout all of their marketplaces P6 Devise objectives and strategies to support global decision-making to meet business objectives Growing a company to the point where it can compete in the global market and trade on a global scale is no simple task The corporation's priority should be determining the best strategy for becoming global Also, they have to overcome several obstacles before they can succeed in the worldwide market Below, we list some of the common methods of becoming global:  There isn't a simpler path to global success than this one When this happens, the item is shipped to another country to be sold there (Schellenberg et al., 2018) Although this necessitates fewer legal safeguards, trade connections between nations remain a hurdle Only when there are strong trade ties between the two countries and minimal tariffs can exports take place  Here, the foreign firm uses a global licensing arrangement to market products made by the producing firm Fast food chains such as McDonald's and KFC, for instance, operate solely through the franchising and licensing of their trademarks This form of internationalization enables businesses to develop with a minimal outlay of capital  To join and succeed in a foreign market, the company employs a strategic alliance with a local partner International expansion has been greatly aided by the rise in popularity of strategic alliances and joint ventures in recent decades 10 M4 Devise strategies that meet a range of different stakeholder perspectives in a global context When a company is trying to break into the global market, there are several obstacles it must overcome When a business expands into foreign markets, the vast cultural variations across countries can provide significant challenges To remedy this, businesses can put effort into developing a workplace culture that encourages employees to learn about and appreciate other cultures When conducting business on a global scale, companies must comply with all applicable laws and regulations (Burlacu et al., 2018) Businesses should cater their product selection to what their target demographic wants and needs, taking into account their demographic and other societal considerations The company's choice of worldwide expansion plan is a crucial aspect of its eventual success Therefore, it is suggested that the firm pay attention to all of the aspects related to the external business environment and its possible impact on the firm, and then employ an efficient mode of entry into the firm Conclusion The researcher's primary objective in the aforementioned report was to outline the various considerations that should be made before venturing abroad In the end, the paper indicates that globalization has a significant effect on the structure, functions, culture, and operations of every given organization Therefore, management should work on refining the company's strategies and instituting changes to the company's culture that will facilitate a successful foray into international markets In addition, while going global, businesses need to adopt the right entry mode and employ more effective marketing and PR techniques to establish a solid reputation 11 References Antràs, P., 2020 De-globalisation? Global value chains in the post-COVID-19 age (No w28115) National Bureau of Economic Research Baldwin, R., 2022 Globotics and macroeconomics: Globalisation and automation of the service sector (No w30317) National Bureau of Economic Research Beck, U., 2018 What is globalization? John Wiley & Sons Burlacu, S., Gutu, C and Matei, F.O., 2018 Globalization–pros and cons Calitatea, 19(S1), pp.122-125 Cherunilam, F., 2021 Business environment Himalaya Publishing House Pvt Ltd Getahun, W., Tesfaye, A., Mamo, T and Ferede, S., 2018 Apple value chain analysis in the Central Highlands of Ethiopia Int J Agric Innov Res, 7(1), pp.2319-1473 Hall, S and Werbner, P., 2020 Cosmopolitanism, Globalisation and Diaspora In Anthropology and the new cosmopolitanism (pp 345-360) Routledge Hopkinson, P., Zils, M., Hawkins, P and Roper, S., 2018 Managing a complex global circular economy business model: opportunities and challenges California Management Review, 60(3), pp.71-94 Katsikeas, C., Leonidou, L and Zeriti, A., 2019 Revisiting international marketing strategy in a digital era: Opportunities, challenges, and research directions International Marketing Review Kim, D and Cavusgil, E., 2020 Antecedents and outcomes of digital platform risk for international new ventures’ internationalization Journal of World Business, 55(1), p.121 Lang, V.F and Tavares, M.M.M., 2018 The distribution of gains from globalization International Monetary Fund Naik, P., 2020 The Science-Fictionalisation of Globalisation and Image Advertising in Harvest by Manjula Padmanabhan Fafnir–Nordic Journal of Science Fiction and Fantasy Research, 7(1), pp.14-26 12 Nguyen, N and Tran, L.T., 2018 Looking inward or outward? Vietnam higher education at the superhighway of globalization: culture, values, and changes Journal of Asian Public Policy, 11(1), pp.28-45 Schellenberg, M., Harker, M.J and Jafari, A., 2018 International market entry mode–a systematic literature review Journal of Strategic Marketing, 26(7), pp.601-627 Simona, S., 2022 Globalisation and Maternal Health Care Utilisation in sub-Saharan Africa: A Bayesian Multilevel Analysis medRxiv SPOTLIGHT, C.L., 2023 IBF Talks To CEO of Jaguar Land Rover, Sir Ralf Speth Stevenson, H., 2019 LEADERSHIP AND GLOBALISATION Principles of Educational Leadership & Management, p.275 13