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Global Business Environment - John Watches

University: UK College of Business and Computing

  • Unit No: 13
  • Level: Undergraduate/College
  • Pages: 4 / Words 1037
  • Paper Type: Assignment
  • Course Code: R/508/0486
  • Downloads: 508
Question :

This unit is based on exploring key drivers of globalization and challenges developed while operating business globally

  • Determine factors which drive globalization
  • Develop strategic complexity while operating in global environment.
  • Demonstrate how operating in global market affect organisational structure and function
  • Analyse influence of globalization on business decision making and strategy.
Answer :
Organization Selected : John Watches


Global business environment is said to be a combination of both external and internal environment that can affect the proceedings of business operations. According to current market scenario, globalisation has helped company in improving profit margin and it is enabling them in increasing their sales and profitability (Armstrong and et. al., 2015 ). Therefore, global business environment help an organisation in expanding business in a better manner. Company that has been taken in this assignment is Mr. John Watches, that manufactures and deliver best quality of watches to its end customers. The report will throw light in key factors that can influence global commerce and trade in different parts of the world. Along with this, complexity of strategic challenges are being included. Other than this, ethical and sustainable globalisation effect on company's function.


P1 Key factors of cost, market, environment and competition which drive global commerce and trade

In order to run a business in an effective manner, it is crucial that company understand all the factors whether internal or external so that firm can have an idea about current scenario that is going on. While operating its business, different place have different tax policies, laws and legislations which act as a barrier in further expansing its business. In context with, Mr. John Watches, there are some factors which can have an affect on company's growth and these are given below:

Competition: Every organisation establish its business with the motive of gaining competitive advancement at national and international level. Rival companies have a great impact on profit and productivity of firm as to sustain in market area they implement new and innovative products (Peng, 2016). Thus, for this, it is important that company must evaluate technologies, working style, products they are manufacturing etc., therefore, by considering all the factors managers and leaders are making appropriate strategies and policies for improving its business in forward direction. As a result, in context with Mr. John Watches they are gaining competitive advancement. Along with this, company is manufacturing goods according to needs and wants of customers and this is helping them in achieving their set targets and objectives in speculated period of time. Although, Mr. John Watches has established their business in United Kingdom but after evaluating the market situation of South Africa, they are now thinking of launching their business in this country as well.

Cost: This must be considered as an effective factors for any company those who want to launch their business in different places. They should determine mandatory elements as they can easily fix price of products and commodities. Appropriate cost which customers can agree to pay must be implemented as it will grab attention of a large number of consumers. Therefore, in terms of Mr. John Watches, they purchasing raw material at reasonable cost and these are best in quality. From the research it has been evaluated that an increase in price can be seen, if company is operating its business at international level. Therefore, it is enabling company in producing goods at minimum cost but in best quality. South Africa is the best example for establishing their business in different areas.

Market: While expanding their business culture and environment of new place must be considered so that they can implement strategies effectively. Enlarging business can not be always fun but it includes some or the other complications and risk that can have a n adverse affect on business in a positive or a negative manner. Along with this, a proper evaluation of geographical area as well as market scenario is must if an organisation wants to expand its firm and business (Laudon and Laudon, 2015). Therefore, for this, company collects all the related information through which they can gain maximum benefits along with this, it also helps firm in making strategies by which they can fulfil needs and demands of consumers.

Environment: For manufacturing goods according to their choices and preferences of customers, it is essential that they have proper knowledge nature and behaviour of people. This will assist them in attaining the set targets and objectives in given period of time. With the change in course of time, people's perception is changing. For this, Mr. John Watches, can use PESTEL in order to have an appropriate outcomes.


P2 Complexities of strategic challenges faced by an organisation

In this modern era, most of the companies manufacture goods so as to attain maximum benefits by delivering products to its end customers in national and international level. For this, firms make modification in their commodities so as to remain in the market area for longer period of time. Certain factors that are to be determined so as to run business in effectively are foreign cultures, tax policies, currency rates and many more. Therefore, it is essential that strategies that are made are flexible instead of rigid as this will help them in making modifications as per current market scenario. Thus, it will aid them in attaining its goals and objectives in specific time frame. Now a day's use of internet is assisting firms in executing their plans in a better manner, along with this, new tools and technologies are assisting them in manufacturing goods in a better manner. In case of Mr. John Watches, they have incorporated and developed their own application which customers can easily access and get related information in just one click (Cavusgil and et. al., 2014). In this, company have given information about new and latest products that are manufactured by them so that maximum number of people can avail the same just sitting at home. South Africa, in terms of culture and environment it is different in compared with England. Company can face complexity or difficulties during their initial years, but gradually they can adjust themselves in surroundings and gain maximum benefits. At international level some of the points that can create problem are mentioned below:

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