Unit 18: Global Business Environment
Unit code M/508/0530
Unit level 5
Credit value 15
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.
Learning Outcomes
By the end of this unit a student will be able to:
1 Analyse the key factors which drive globalisation.
2 Determine the strategic complexities associated with operating in a global environment.
3 Evaluate how operating in a global market influences an organisation’s structure, culture and functions.
4 Evaluate the influence of globalisation on organisational decision-making and strategy.
Essential Content
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 globalisation.
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.
