Unit 18 Global Business Environment

Introduction

The aim of this unit is to explore the wider position some organisations have in the global environment. Students will appreciate the complexities of operating in a global environment, and this will enable them to offer greater breadth and depth to an organisation’s current or aspirational global presence.On successful completion of this unit students will have developed an understanding of the wider global environment in which organisations operate. This will enable students to add value to an organisation as they will be able to apply their knowledge in such a way that they could advise senior managers (in either large or small organisations) on global matters which they may not have ordinarily considered.

Learning outcomes

LO1 Analyse the key factors which drive globalisation

Driving factors of globalisation:

• Analyse the concept and theory of globalisation in terms of cultural, economic, political and social dimensions.
• What are the factors that drive globalisation? International economic integration, foreign direct investment, international business and trade.
• Factors in relation to cost, market, environment and competition.

The significant impact of the digital revolution:

• creating better products and services at lower cost, the impact of social media and other applications (e.g cloud computing) connecting the global community and digitized design, manufacturing, and distribution systems making products and services available to a global market.

LO2 Determine the strategic complexities associated with operating in a global environment

Global strategic complexities:

• The impacts of international trade law.
• The economics of globalisation and the environmental impacts of globalisation in the context of the challenges they pose for risk and diversification strategies.
• The complexities of the international supply chain management.

LO3 Evaluate how operating in a global market influences an organisation’s structure, culture and functions

Influences on structure, culture and functions:

• How does the global market influence organisations in the context of McKinsey 7S model of organisational structure?
• The governance of a multi-national organisation and leadership within an international context.
• Using Hofstede’s Dimensions of Culture demonstrate how national cultural differences have an influence upon organisations.
•  The influence of ethical and sustainable globalization

LO4 Evaluate the influence of globalisation on organisational decision-making and strategy

Influences on decision-making and strategy:

• The principles of leadership change and the process of internationalisation.
• International expansion strategies and strategic decision-making in relation to risk and diversification.
• The impact of barriers to international trade upon decision-making and strategy.

Resources

• BARTLETT, C. and BEAMISH, P. (2011). Transnational Management: Texts, Cases, and Readings in Cross-Border Management. 6th Ed. Maidenhead: McGraw-Hill.
• GUAY, T. R. (2014) The Business Environment of Europe: Firms, Governments, and Institutions. Cambridge: Cambridge University Press.
• PENG, M. (2014) Global Business. 3rd Ed. Cengage Learning