D/508/0491 Unit 6 Global Business Environment


Global business environment is mainly concerned with various factors which directly affect to the home environment of the company. Along with this, environment is basically define as different aspects that includes internal and external that directly affect on business operations and functions in better manner. These type of aspects are available in the company so this will influencing the process of decision making, using resources and abilities in proper way. The report is based on Blades jets which is British company that has been developing and manufacturing micro gas turbines, for providing small, light and cleanable impassioned jet engines. This will includes in the improvement of Automotive vehicle Range Extenders, Micro Air Bearing and Heat Exchangers. In this assignment, they are describing analysing of cots factors, environment, market and competition within the international trade or commerce (Cantwell, Dunning and Lundan, 2010). This will explaining the complexities of strategic challenges which are faced by Blades jet company and also identify the impact of globalisation on person administration, leading, culture and structure. In this project, they are jointed with various directions for internationalization that company has been adopted by them along with key barriers and conflicts.

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Task 1

P1 Key factors of cost, market, environment and competitors that drive global trade and commerce

International trade is basically define the exchange of capital, products and services, commodities among people and enterprise at international level and at various countries. This will play an essential role in Gross Domestic Product (GDP) in better manner. Along with this, international trade has been present for long period of time and increasing certain past years. So they are face various impact that will enhancing their income or revenue by this they can easily contributing in their country economy (Cavusgil and et. al., 2014). Along with this, there are different ways of decision making that has been evaluated and formulated in better manner. This includes different factors such as financial economics, transfer of communication and dealing in every complete the global. Therefore, international enterprise surroundings considered as impressive scheme and policies that will smoothly moving the concern transaction and its purpose. This will assist in accomplishing competitive benefits in proper manner. Apart from this, there are various factors that will directly affect on Blades jets firm by this they are take place in the top market place. It will help in developing and making effective decisions regarding business operations. This will mainly effect on concern role and actuation towards worldwide commerce and dealings in effective way. Such factors are described as under:

Cost – It is chiefly associated with business concern and there are different issues that can arise during manufacturing, researching, marketing, etc. This will define as that value of cost which help in fabricate goods and services for satisfying their customised necessarily and wants in different nations (Colfax, Rivera and Perez, 2010). If any business organisation enter in the new market place so they require to analyse whole market where they invest capital for their respective business. This will directly affect on various factors such as trade show, advertisements and promotions that are main aim of the firm is to attracting their desired customers towards services and products. Blades jets are mainly concentrate on promotional activities which gaining attention of large number of buyers through the different channels such as commercial ads, advertisement sources and televisions for achieving target customers at the large market area. Along with this, this will help in driving towards international commerce and trade for enhancing economies to understanding the GDP of the specific nation.

Market – It can be define as that location where all the creative goods and services are doing effective selling and offering various types of commodities. In addition to this, there are various individuals whose main motive is to buying different products for exchanging capital value in the whole market area. Blades jets is the developing and manufacturing company and they are mainly deal with micro gas turbines in small, light and clean burning jet engines. This is not stable for changes in the market place according to their environment and time it will directly affect on firm growth and success (Ferraro and Briody, 2017). There are definite key component of industry that are as below:

Labour market – This will chiefly determined with group who are doing working for the firm and also recognise the occupation at various countries. Labour market is associated with effective job opportunities in the firm which increasing international trade and commerce. This will driving the trade and commerce that can seen as major key factors of whole market place.

Market for raw material – This is another factor which is useful for every firm so raw material are necessary for manufacturing proper kind of effective products and services in better manner. These are generally associated with products and materials that are help in doing exports and import in all over the nation. In current time period, this is simple for Blades jets is to import and export some required parts for producing accurate products.

Environment – It is one of the major factor that includes with various elements and every business environment are associated with such components. This is very flexible in nature that can help in modify the appropriate situation and conditions. Thus, every firm required to influence leading component which straight affect on business dealings and its purpose. Blades jets required to analyse both internal and external factors which assist them in developing appropriate policies and strategies. These are as follows:

Internal environment – This can describe such factors which directly impact on internal business operations and functions in better manner (Gecevska and et. al., 2010). Along with this, there are different factors that includes customers, suppliers, employees and shareholders, etc. that are affect on business and Blades jets mainly centring on intrinsic factors while go into in the new industry point so by this they can processing and production appropriate scheme or policies for maintaining the whole business operations and functions.

External environment – This is that factor which immediately affect on business operations and their purpose in proper manner. Along with this, they does not managed and controlled by an organisation so they are directly affect on business from outside. There are different factors that includes political, social, economical, technological, legal, environmental. Blades jets are mainly deal with different market place so there are some opportunities that directly affect on their business due to various environment.

Competitive – A competitive analysis is the critical part of the organisation marketing plan. The company need to evaluate its competitors who provide similar type of products and services in competitive market place. This analysis provides both positive and negative impact to identifying the major threats and opportunities. There are various competitors which are face by company which directly effect on business operations and its functions. It includes Audi, Volkswagen, Volvo, Aston Martin who are giving tough competition in the large market place and also acquire their desired buyers.

Task 2

P2 Complexities of strategic challenges which face by BMW in international environment

Blades jets are exist in various countries so that they are determining the large number of strategies and policies while expanding their business operations and their functions in better manner (Hamilton and Webster, 2015). Along with this, it is one of the leading global market so they required to build good image for managing and maintaining such activities in appropriate way. This is smoothly running the entire business as there are different competitors which are present in the market place and various issues can be created or developed. In addition to this, capitalist of Blades jets are considering for increasing the capability of manufacturing in different countries which main motive is to bid and gain high return by firm. There are different risk that are accessible for such issues while entering in the new market place that are as follows:

  • Differentiation – this will consist with various marketing concept that are totally different from other factors where large competitors are accessible at the large market area. In addition to this, product differentiation is required for accomplishing the effective competitive benefits and it will increasing the market share. Blades jets are developing and manufacturing gas turbines, heat exchanger, micro air bearings and automotive range extenders. The strategic challenge for differentiation is to survive in the international market place because there are large number of competitors which are established along with innovative products and services. If company need to build positive image in the global market so they require to deliver differentiated goods to their customers in proper manner.
  • Innovation – In recent period of time, every organisation is trying to adopt and developing new innovative ideas and thoughts which help them in attracting large number of customers towards their effective services and facilities. This will assist in reducing the cost elements and components at the time of manufacturing gas turbines in proper manner (Kasemsap, 2014). Along with this, there are different risks which involves in this for time consuming and cost development model parts, etc. For developing unique and innovative products in the large market place so this will help in number of customer volume towards company at international level. There are various risk occurs while establishing innovative goods at the global market.
  • Competitions – In the global market place, there are sizeable amount of challenger which are immediately impact on their enterprise operations and also merchandising their innovative goods along with additional features to their customers. In the current time period, there are around 65% of market place that are managed and controlled by six famous organisation, therefore it is simple for manufacturing the desired products and items for their customers in proper manner. Along with this, this will directly impact on particular cost and price system (Laudon and Laudon, 2015). This is the immense challenge for Blades jets in which they required to concentrate on effective policies and strategies that are lead towards their acquisition and brand, merger partners that are determined by them. The major challenge for the firm is to deal with different rivals which create impact on business operations and its functions. They are try to close the entrance business in less time period. At international level, company want to produce those goods which are required by customers.
  • Substitute commodities – This is mainly associated with effective products and goods which main aim is to analyse the threats which occurs in the external environment. Along with this, it can be determined as resources and material that will create demand for variable limited goods in the large market area. Blades jets mainly focus on formulating and developing best quality based goods and services at reasonable rate so this will directly impact on whole target market as well their potential customers. When company substitute their products at the global level so there are various issues occurs such as lack of transportation, poor innovation techniques, lack of quality in commodities.

Strategies of organisational structure:

Cost leadership – It is that strategies which help them in developing high competitive benefits which have lower cost of business regulation and operations in the large organisation. Along with this, cost leadership is mainly driving by company which are associated with size, scale, scope, efficiency and other essential experiences.

Focus and differentiation – The differentiation define for creating quality based products and services in better manner. On the other hand, they mainly concentrate on specialised services in the niche market area.

Value chain – It will assist in getting all major functions and operations for particular industry performance for rendering appropriate products and services within large market place.

Task 3

P3 Effect of globalisation on structure, administration, culture, leadership and functions of Blades jets

There are various element which immediately affect on enterprise dealings and its purpose if they are going towards expanding the firm which are trading at the international market place so that this will be authentic for occurs in various number of issues which are associated with globalisation. These factors directly affect on both manner so in negative and positive way that depend on certain situations and conditions which is required for considering the major factors in proper manner. Blades jets mainly concentrate on different pleasing strategies and policies that assist in managing entire business in complex way. Such are described as under:

Governance – In this determination, each and every firm is regulated and operated their business operation in accurate manner so that they will able for facing various complex challenges and doing proper changes while regulating business functions (Louhiala-Salminen and Kankaanranta, 2011). Such things are required for increasing their profitability and productivity in effective manner. Along with this, globalisation has been created and managed their functions for doing effective management.

Leadership – In current period of time, the company try to expand their business operation and its functions in different places in which they can easily attracting large number of customers in better manner. Firm manager can adopting and using different styles of leadership that are providing accurate direction and this will directly affect on staff members behaviour and their attitudes for target effective goals and objectives. On the other hand, leadership is the best method and techniques which help in leading the company in the huge competitive market area. The main purpose of this company is to became global leader and it is lead towards the whole market place. In addition to this, Blades jets is capturing entire market area with the assist of developing and making appropriate strategies and policies for best quality based products and services in better manner (Peng, 2016).

Structure – There are various countries which have different structure so by this will directly affect on firm after that, it is necessary for developing their own structure as per the present business operation and their functions. They are mainly producing firm structure that is hierarchy in nature for maintaining and managing effective working environment in effective way. It is essential for handling structure of work in systematic and ethical way for accomplishing desired goals and targets. Bladon jets has huge structure for producing creative goods and services which provide data and information for accurate method of communication for target large number of customers.

Culture and functions – The culture of company is more efficient and each staff member are feeling encouraged and motivated for doing hard work in getting rewards and encouragement from top government in better manner. It is necessary for an enterprise culture while expanding their business operations and activities for making success and growth. They have their own culture which includes symbol, logo, ethics, values that are followed by an organisation. Along with this, the company will producing best appropriate features and products in high quality level and also satisfy their customers needs and wants in proper manner. Bladon jets is one of the developing and manufacturing company which provide gas turbines, small, light and clean burning jet engines. Also they are focus on expanding their business operations and functions regarding target customers at large market place (Simic and Dimitrijevic, 2012).

Positive and negative impact of globalisation:

Disparity among rich and poor countries – In this, they mainly assist in describing the accurate image of poor and rich people which help the globalisation. Along with this, they need to manage and maintain all required barriers or issues in proper way.

Unfair trade – It is that factors which directly or indirectly impact on globalisation whether it is negative or positive manner. Through this, they can easily supply specific goods and services to their desired customers if they make complaint regarding their products by this the firm required developing proper changes and modifications.

Enhancing in currency – This is the positive point regarding globalisation with the help of business operations and its functions. Through this they will developing and building good image of the firm within large market area.

P4 Impact of ethical and sustainable globalisation with firm functions at Bladon Jets.

Basically, it is required to get integrated with the societies, economies and also needs to help the effective communication process and the trade conveyance as well. Even though, the globalisation is considered as best source that lead to catch effective opportunities of gaining the financial capability in great manner even though productiveness is such which is having an value or brand image in the large market place in effective manner. Basically, in such scenario, it is quite easy to have an accomplishing he success of the growth in competitive surroundings as well (Tarique and Schuler, 2010). Even though, Bladon jets are those which create an sustainability and also enhance the engagements with the foreign direct investment with having an assistance of the globalisation in right context too. Moreover, there are various thing which do affect some of the ethics and sustainability in several ways which is being followed as:

Reduction as liability of finance: It is considered as the major factor that also direct impact of business operations and it is also having an functions which do has smooth running in the globalised market too. Bladon Jets is that company which is having an production of varieties of cars and also merchandise the large market for having an determining strategies which do include various approaches as Just In Time and lean manufacturing etc. It is having an reduction of the financial liabilities by having an manage and also looks forward to control costs and various ethical activity as well. It can be determined that impact of decreasing liability of funds in the company is directly effect on business operations and its functions. This will support in making appropriate decision so they can gain high desired goals and objectives effectively.

Health and Care services: This is included as maintenance of the health and safety criteria which is related with at the time of production process and also Bladon Jets is having an innovative and luxury Cars in the model of company as well. Basically, different techniques and several things are there which is having an producing car that to harm different worker and it is during the procedures of work in great way. Company manager is such which has problems and it is be like having an maintenance of working environment (Trompenaars and Hampden-Turner, 2011). For instance, when company provide best health care services to their country people so this will help in enhancing their presence at the global area. This will assist in increasing their income and revenue in better manner.

Customer confidence: Customers are such which play an essential role of organization because it is like having an purchase of goods and services with spending money.

Blades jets need to maintain and manage all required business operations and functions in better manner. Along with this, there are various common determination that includes accountability, loyalty, honesty and it can be considered that they can furnish with the help of legislation, code of conduct, individual and organisation. There are several ethical consideration of the company operations and their activities includes functions or activities in better way. An enterprise need to regulating and operating all business factors which directly effect on welfare of the firm.

Task 4

P5 Working of chosen organisation's decision making in a global context

Bladon Jets was setup in 2002 for the marketing and development of engines made by Bladon brothers, Chris and Paul. It was considered by them that their engine could have a traditional application in aerospace but the decision was made to use them in electric cars which was considered as a good decision. There vision was to manufacture and produce a number of gas turbine engines at a coast of thousands of pounds.

They came into existence in the market in 2010 by presenting their technology to Jaguar Land Rover. The technologies used in cars are hybrid one, they use axial flow technology to develop their engines. The company has secured around £500,000 from the members of Oxford Investment Opportunity Network.

The smart decision made by the company has attracted more investors which could have not done when they were aerospace field (Werther Jr and Chandler, 2010). They have won a UK Technology Strategy Board Funding award for the manufacturing of less carbon emitting vehicle technology.

The growth of hybrid technology is eminently increasing and Bladon jets is one of the competent manufacturing company for providing such technology after Tesla. Instead of sticking to aerospace industry the decision to shift into the car market was so helpful for them that it is now a leading company in manufacturing of hybrid engine.

They are world leader in micro gas turbine technology and is still working on the advancement of their products. The designs of their engines are so unique that it has brought breakthrough in the industry of hybrid engine. It is essential to make right decision at the right time and the only thing they realise was the incompetency of their product in the market of aerospace.

There are various ways of decision making are described as under:

Business decision making – It will help in developing appropriate decisions which determine business or company accurate outcomes.

Personal decision making – In this, decision making determine the how individual and its outcome create and other are developing effective relationship with them.

Consumer decision making – It consist of choice which evaluate the effectiveness in purchasing decision that occurs in the context of business.

For making a right decision it is necessary to know the drawbacks of the plan. If the execution of the strategy is done in an apt way then it will be easier for them to globalise. Also one should know about the competency of their products in the market. If some other company is producing the same technology at low cost then it would not be a positive aspect for expanding a business. But in this case Bladon Jets are the only one who is producing micro gas turbine genets. It was a great move by them , shifting from aerospace industry to car markets and they definitely did well, in this case.

P6 Determine and articulate the various routes to internationalisation that Bladon jets may adopt

Globalisation has been giving major benefits and advantages for the firm which can expand their business operation in other location with the assistance of using easy process. For analysing common needs and demand for such process, this will help in achieving their potential goals and targets in given time period. There are various issues that can occurs in globalisation which are as follows:

Legal protection- This is that firm which has been follows effective rules and regulations of countries so they can introduce their new products in the large market place and operate business in better way.

Monopoly- It is another procedure which define in the competing worldwide, so firm does not endure as a person. This is that procedure which help in making and developing large issues and problems which occurs in the international market area. For doing effective business without making mergers to help in enjoying the correct business operations and transactions. Along with this, firm owners required to prepared patent and licensing that protect them for producing similar type of goods and services in correct way (Wild, Wild and Han, 2014).

On the other hand, company manager of Bladon jets are need to examining and analysing the major issues and barriers that can occurs while doing business operations in global market level at market place. Along with this, they required to recognising the major issues which help them in making and developing effective strategies and policies which implementing same work in proper manner.

There are different routes of internationalisation which help in making accurate position that are described as follows:

Direct exporting – In this method, the company directly enter in the market along with their innovative products or services. There are various organisation which establish program of sales for distributing effective goods in the market area. Bladon jets can adopt this method of entrance which assist them in getting higher income and profitability.

Licensing – It is the relatively management in which company transfer the rights and duties of use products to the another firm. It is very effective strategy for international market strategy in which organisation can easily make appropriate position in the large market place.

Franchising – This is effective method which assist in expanding business in the global area where they can attract more new customer towards innovative goods. This is also relevant method which can be used by Bladon jets for attaining desired goals and objectives.

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According to the above mentioned report it can be analyse that Global business environment is mainly concerned with various factors which directly affect to the home environment of the company. Along with this, environment is basically define as different aspects that includes internal and external that directly affect on business operations and functions in better manner. Blades jets are exist in different nation so that they are determining the large amount of strategies and policies while growing their concern operations and their functions.

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