Global Business Environment in Focus

Task 1:

1.0 Introduction:

Globalisation is the multifaceted phenomena that allows integration and interaction among, companies, global market leaders, global organisations and government. In modern business world, globalisation is important for marketers to share global market ideas, business strategies, market opinions, technologies, products, services and information that provide global marketers with high opportunities in grabbing strong competitive advantages in international market. In modern business world, Global Business Environment GBE is considered as the most important aspect that every organisation considers while operating on the international market. This study will discuss GBE in two sections. In activity 1, the study is going to demonstrate concept, theories, drivers and strategic complexities that are associated with GBE. Additionally, in this part, the study will also discuss the challenges and the opportunities that international businesses can face in global market. In activity 2, the study is going to use the given scenario of Shell plc in terms of evaluating how globalisation impacts on overall organisational culture, structure and functions. In addition to this, second part will also discuss the potential impact of GBE on marketing strategies and decision-making process of Shel Plc. In activity 2, the study will evaluate the barriers faced by and market entry policies taken by Shel Plc while operating in global business context. In addition to this, in this part study will also make suitable recommendation to the marketers of Shell plc in terms of dealing with all these barriers that they operating in international market. Finally, the study will make suitable conclusion of overall discussion to highlight main underlying aspects of entire content.

1.1. Critically analyse the key drivers of globalisation and how it impacts on the global business environment:

There are different key drivers of globalisation that impact on market strategies and business operation of global organisation. These drivers are cost drivers, market environment and competition.

Cost:

Cost and sourcing efficiency differ from country to country thereby making it possible for global companies to take advantages of this varying cost (Shageeva et al. 2017). Cost drivers of globalisation can be considered as opportunities for global firms to standardise their financial policies and build global scale economies. On the contrary Gaspar et al. (2016) argued that variance of cost from country to country can pose potential barriers on global businesses by making it obligatory for them to make continuous changes in their pricing strategy, product development cost and manufacturing cost strategies, that can enhance their overall economic burden. For example, Shell Plc, the multinational oil and gas company, while operates its business in global market, marketers need to consider the cost drivers of host country such as product development cost, raw material cost, pricing policies, labour cost, supply and dealership cost and market price of oil and petroleum products in that century. In this context, Bedianashvili (2016) mentioned that due to differences in global cost strategies in foreign countries an organisation can have both the benefits and challenges while operating the business in global platform. Benefits are that the changing cost drivers in the host country assist global firms to make effective modification and changes in their conventional pricing policies and cost-benefit strategies that improve overall competitiveness of that company in international market. On the contrary, Hamilton and Webster (2018) argued that sometimes the changes that global firms need to make in their pricing strategies and product development cost while operating in international business platform interfere with uniqueness of their business decisions. Challenges posed by cost drivers of globalisation are increased company expenditure, rise in product development and manufacturing cost, irrelevant pricing strategy and high labour charge in host country.

Market environment:

Market environment is one of the most potential drivers of globalisation that need to be considered by global firms while going to conduct international business operation (Tallman et al. 2018). There are different important market drivers of globalisation that have a potential impact on decision-making and business operation of international firms. These market drivers are political, technological, economic and socio-cultural factors in the global business platform, that any global firms need to consider in terms of conducting a smooth business operation on global business platform.

Technological driver:

Technology plays important roles in revolutionising global business platform with introducing new techniques, innovative business ideas and modern machines and instruments. As mentioned by Kasemsap (2018), the overall growth of global firms depends on how technologically strong is the host country. Of the host country has strong technological infrastructure then the global first will grab opportunities in using innovative automated tools, ultra-modern business software and application program, well-organised automated production and manufacturing process, that will not only enhance production of firms but also provide the firms with high chances of grabbing strong competitive advantages in international market. On the contrary, Lee (2017) argued that sometimes the modernised tools and techniques that needed to be used in host country to adapt the business operation in the host environment, are not managed and used by the employees as they are used to with the existing technologies and processes. On supporting this viewpoint many evidences have suggested that, although technological driver of globalisation has revolutionised global business platform, it interferes with the trustworthy relationship among staffs, enhances employees turn over and increase the chances of data hacking and phishing.

Political drivers:

While operating in global business platform, international organisation needs to consider the stability of political system, degree of fairness of governmental policies and level of governmental interference in the host country (Doh et al. 2016). Evidence-based study has shown that of the hits country consist of fair and stable political system than it is highly supportive for global firms that are going to operate over there. On the contrary Wei et al. (2018) argued that, while operating in international market it is not sufficient for eth global firms to consider only the stability as well as fairness of government rather form also consider other political drivers such as degree of bureaucracy and relevance of financial policies, wage regulation, taxation, tariffs and government viewpoint towards development of foreign companies in the host country. Benefits that are associated with global political drivers are global firms can get strong competitive opportunities in the host country of concerned government set relevant and fair financial, and business policies, in addition to this, high supportive global trade policies, anti-trust laws, wage regulation and liberal taxation process will make positive as well as advantageous business environment for global firms in host country. On the contrary, Akhtar and Sushil (2018) argued that along with benefits that are main barriers that global firms can face in international platforms, is that unnecessary interference of government in firms' business strategy, biased and unfair trade regulation with an intention to proofed better opportunities domestic companies and high tax on the global companies operating in host country. Therefore, it can be mentioned global firm while operating in international market need to make proper research in the overall political system that will help them to come up with relevant and effective market policies to combat the challenges.

Competition:

Competition is one of the most important global business drivers that assist international firms to have opportunities in standardising and modernising thirty business decision as well as market policies to combat global market competition (Tuleja, 2016). Market competition brings about both the challenges and opportunities for global firms. Foreign market in which the firm is going to operate its business needs to be highly competitive as it will provide marketers with opportunities to shape their overall business policies and market decisions for making them highly relevant to the current market trend. Critics of the viewpoint have argued that high market competition in the host country will make of difficult for global firms to have strong competitive position in global business platform.

2.0. Explanation of complexity of strategic challenges faced by global firms: (P2)

While it comes to operate business in the global platform, organisations have to face several global strategic challenges such as political challenges, cultural barriers, regulatory challenges, interdependence, diverse currencies risk and diverse country risk.

Political challenges:

Global firms face major political barriers while operating their business in foreign country. One of the most important political aspects that impact on the overall business operation of a global form in foreign country is the stable government in that country. The unstable and corrupted governmental framework is highly unhealthy for a foreign business to grow in that country (Shageeva et al. 2017). On the other hand, stable and fair political system is effective as well as productive for the global firms while operating the business in that country. Another important thing that matters for global firm while operating their business in a foreign country is the support that the government of that country show for foreign firms operating in this country. If the government is highly supportive towards the growth and development of foreign businesses in that country it will boost overall profit and market capability of the global forms. In most of the cases, foreign government poses tariffs and quotas on global firms that enhance their overall business expenses (Bedianashvili, 2016). On the other hand, there are many governmental regulations such trade regulation, wage regulation and employment regulation set by the government of foreign country that poses several legal obligational on the global first terms on controlling their overall business operating in that country. For example, Shell plc, the famous oil and gas company faces political barriers while operating their business in foreign countries. Marketers of this company need to obey the legal obligation and business regulation set by the foreign country in which the company operates its business. Additionally, the taxes, tariffs and quotas that are posed by the foreign government in this company enhance its overall expenditure. Therefore, marketers if this company need to make strategies that can be highly effective in assisting this company to deal with this political barrier and operate its business smoothly in global market.

Cultural diversity:

Another major strategy challenges that every global firm can face while operating business in international platform is cultural challenges. Cultural differences in foreign countries pose an important influence on how the firm will operate its business in that market. Culture plays as an motivator as well as a barrier to operating a successful business (Hamilton and Webster, 2018). Shell Plc, while operating its business in foreign country faces barriers due to completely different culture, customer demand, customer preferences, market trend and consumer perception. When a global firm operates its business in foreign country which is completely different from culture that of the home country, the marketers face several challenges such as changing market trend, different customer preference, different market perception and different traditional values as well as cultural beliefs of countrymen (Tallman et al. 2018). Marketers also face difficulties in understanding actual market trend and the actual tastes of customers in that foreign market that is important for the firm to grab strong customer base. In this Shel plc successfully operates its global business by making strong market research on the beliefs, tradition, values and customer perception and the market trend of that foreign country. Additionally, Shell plc also believes in consistent modification in its overall marketing and promotional policies as per the cultural needs of eth foreign country that assist its marketers to develop such market plans that are highly effective in developing strong customer base. Sudden changes in the regulatory system pose important impact on eth overall business operation of global business.

Diverse currency:

Diverse currencies in foreign market pose adverse impact on overall business operation of global firms (Kasemsap, 2018),). If the foreign country in which global firm is going to operate its business has highly fluctuated currencies, then it diminishes the market profit of global firms operating in that country. Of the foreign country has the stable government it has less fluctuation in currencies, which creates overall positive business environment for global firms in that country. On eth other hand, in case of the countries in which the political system is highly unstable, there are high chances of fluctuation of currencies that impact adversely on overall market profit and the overall annual turnover global firms. In the case of Shell plc, marketers always believe to operate the business in such countries that have a stable government and less diverse currencies such as the UK, US and Japan. In addition to that, Shell plc always target highly developed countries which have a fairer and stable political system that assists the company to have less diverse currency framework that is effective for the growth and the market expanses f this company.

Regulatory Challenges:

Global firms face regulatory challenges while operating their business in international platform. Regulatory challenges are one of the major strategies challenges that international businesses face, which impact on their overall business process and market profit (Lee, 2017). If foreign country in which the global business operates the business has a poor and less organised legal system, it can pose unethical as well as baseless statutory obligation on marketers of global firms that can hamper their overall business process and market profit. Additionally, the corrupted regulatory system in foreign country will always pose unnecessary taxes, regulations and legal charges on the global firms that can enhance the market expenditure of these firms. On the other hand, if foreign government has high organised and systematic regulation system with well-defined legislation it will provide global firm with a highly positive business environment that assists marketers to operate their business in organised as well as the systematic way in the international market (Doh et al. 2016). In this context, marketers of Shell plc need to operate their business in such a foreign country in which the overall regulatory system is well-organised and systematic that will assist this company to run the business without facing any unethical regulatory barriers. For example, the changes in the banking laws, wage regulation and employment regulation in the oil and petrochemical industry in global platform will pose potential impact on global business profit and market strategies if Shell plc. On et other hand, effective changes, as well as modification in trade regulation and well-defined intellectual property regulation, will pose positive impact on overall business operation of Shell plc.

Diverse country risk:

While operating international business, global firms always need to choose such countries that will be better in each marketing aspect as compared to the home country (Tuleja, 2016). However, it is not possible all-time for the global firms to select only developed and high-profile countries to operate their business. Therefore, marketers of global firms need to operate their business in diverse country based on market opportunities and business risk in these countries. In this context the marketers of Shell plc can face severe challenges of the foreign country in which they are going to operate their business of the country has lack of strong economic framework, business infrastructure, strong regulatory system, strong demographic advantages and good source of foreign investment ((Shageeva et al. 2017). Additionally, countries that have high risk of terrorism, civil and political unrest and internal conflict would not be fruitful as well as relevant market place of any global firms such as Shell plc to operate a successful business. Marketers of Shell Plc will also face severe regulatory and economic obligation if it operates its business in a country that has anti-foreign settlement among workers, citizens and the government. In this context, the market will face difficulties in getting high-skilled workers in that country will be able to have any political and regulatory advantages in operating their business in effective manner.

Interdependence:

Interdependence in foreign market will raise high level of market competition, market risk and unnecessary market monopoly ((Shageeva et al. 2017). In this context, global firms that are highly potential and successful in their business operation try to grab the monopoly business in international market. On the other hand, the small firms that are dependent o these large firm for operating foreign business face dominance of these firms and face scarcity of raw material, customers, clients, supplies and trade opportunities. Therefore, interdependence in foreign market can develop an unhealthy competition in global market that can impact on self-confidence, market strategies of global firms. In this context, Shell plc needs to focus on developing such strong market strategies that will assist the marketers to manage the overall effect of this global interdependence and operate their business function in effective manner in global platform.

2.1 Critically analyse the complexity of strategic challenges faced by global business companies with using relevant examples:

Global firms can face several strategic challenges while operating in an international business platform. These challenges are as follows:

Market risk:

Market risk is the most common strategic challenge that global firms face while operating international business operation. As stated by Reyes et al. (2017) marketed risk in the global business platform can be of different types such as competition from rivals in host country, high supply and dealership charge, high labour charge, shortage of skilled labours and irrelevant government policies. Therefore, while operating global business operating global firms always need to come up with such market and business strategies that will not only assist firms to deal with these challenges but also standardise as well as modernise the overall operation and project management process of firms to enhance their internal strength. On the contrary Passera et al. (2017) argued that market risk is potential strategic challenge faced by global firms that cannot be dealt only by using relevant market strategies, rather marketers need to make thorough research on macro-environmental factors in host country by analysing the impact of political, social, economic technological, legal and environmental factors on the overall business operation of these firms. For example, Pip & Nut is a UK based company that sells different types of nuts and almond butter. This company wants to extend its business in international platform. In this context, the challenges that Pip & Nut will face while going to operating in global business platform are high competition threats, high supply charge, the different pricing strategy in international market, unfamiliar market and trade regulations set by concerned government of host country and unknown customer behaviour. Therefore, if Pip & Nut needs to establish successful international business operation, marketers of this company need not only to set relevant market strategies to deal with these challenges but also they need to conduct thorough market research on overall market environment of the host country.

Diversification strategies:

Diversification is most preferred market approach in modern business era, which is concerned with market growth of global firms by launching new business outside forms’ current market and products (Ajmal et al. 2017). Global Business environment poses potential impact overall diversification strategy of global firms in terms of launching their new business entity in new market. The major strategic challenge that marketers of an international firm will face during diversification of their entire business is highly competitive rivalries in host country. As mentioned by Bereznoy (2017), while laughing any new products and services in host country, firms can face huge competitive threats if majority of global firms operating in that country have the similar products and services that are going to be launch by the company. In this context, markets need to develop such strategic decision that will be relevant to that situation. For example, Tesco Plc, the famous UK based retail company, while launched the new branch in US with new supermarket products, the marketers faced severe diversification challenges in this new market environment such as highly competitive threats from local supermarket chain of US, different customer mindset and shortage of fund. On the contrary Kasemsap (2016) in case of diversification, a global firm can not only face market competition but also lack of acceptance of the new products and service by the local people in foreign market. For example, Shell plc, the famous UK based oil and petroleum company, while going to operate its business in foreign market, can face several challenges such as political, social, economic and competitive barriers. The marketers of Shell Plc need to follow and implement the regulation set by foreign government that can enhance overall expense of the company. On the other hand, social perception of local customers in the foreign market will also impact the overall sells of this company. Shell plc will face the competitive rivalries in international market that adversely impact on its global competitive position.

Supply chain flow:

Global firms can also face challenges in maintaining systematic supply chain flow in foreign market, due to lack of skilled and trustworthy suppliers in host country, high supply cost and inconvenient service provided by the local suppliers (Aribawa, 2016). For example, British Petroleum is a public sector company in the UK that manufactures oil and petroleum products. Marketers of this company face severe difficulties in maintaining well-organised supply chain management while operating international operation. In developed countries, there is a high charge of local suppliers that enhance overall company expenditure of BP.

Foreign regulation and laws:

One of the major challenges that international businesses face in global market is regulatory challenges in foreign country. Any global firm has to deal with as well as navigate the legal obligations that are posed on marketers by foreign government such as taxation regulations, trade laws, labour laws, market regulations, product and service regulation and legislative obligations on sells. While Shell Plc is going to operates its international business, its marketers have to comply with business and trade regulations set by foreign government and any breach to these regulations would make this company penalized that can spoils its brand reputation and competitive position in global market. These regulations in foreign country are made to provide opportunities to local businesses of foreign countries over the global firms. Therefore, global firms need to make effective market research on the overall political and regulatory system in foreign country before entering into that market.

Global pricing strategy and cost calculation:

While operating international business, one of the major challenges that global business firms face is setting justified price for their service and products in foreign country. International marketers need to consider many aspects while setting the prices of their products and services such as the price would be set in such a manner that would assists these companies to be highly competitive in foreign market and make them able to convince customers to invest into their products over the other brands. Therefore, marketers need to set smart marketing strategies that would ensure that after setting price the overall math of profit would be in their favour only. For example, while operating international business marketers of Shell Plc focus many aspects such as cost of service, shipping, production, labours, distribution, clients, marketing and supply. The successful international business of Tesco plc proves that their marketers are able to set such price that not only convince customers to invest in this company over others, but also assist this company to grab string competitive position in foreign market.

2.2 Critically evaluation the of global business environment:

Global Busines Environment (GBE) brings both the opportunities and challenges for global firms that impact on their business decisions, market strategies and operation (Uchihira et al. 2016). Shell Global is a British-Dutch energy company that operates its entire business in global business platform. The most common benefit that global firms can be provided with while operating international operation are opportunities to modernised and standardise their business decision and market policies. Marketers of Shell Global believes in consistent modification and revolutionization of their market and business policies based on the changing market trend in global business environment. On the contrary, Kasemsap (2016) argued that sometimes it is difficult for companies to make continuous changes in decision making and business operation process as it interferes with the overall uniqueness of the business management process. The another most important benefits of GBE provides opportunities for global firm to be aware of international market and business strategies that assist marketers to shape their strategies in terms of making them relevant to the current market demand. Marketers of Shell Global use the global business environment as an important platform for integrating international market ideas, business decision and operation strategies that are thought to be highly effective for this company to modernise its overall business management framework. On the contrary Hill et al. (2017) argued that not only benefits, many challenges are also associated with GBE such highly competitive rivalries, differences in social and political aspects in the international platform. Differences in customer preference and changing market trend in the host country. In this context, marketers of Shell Global needs to conduct effective market research on the macroenvironment of foreign market, that will assist them to analyse important facts such as current political, social and technical trend I this country, customer demand and their preference, legal obligations on oil and petroleum industry and labour as well as supply cost.

Task 2:

3.0 (a) Evaluating impact on globalisation on corporate leadership and governance and organisational culture, structure and functions:

Globalisation has potential impact on corporate governance and leadership process. According to Kasemsap (2017), globalisation provides opportunities to international firms to make useful modification in that corporate governance by using new technologies innovating business ideas and creative market decision. As a leading energy company in the UK, marketers of Shell Plc focus on using the positive advantages of globalisation in terms of strengthening corporate governance strategies, such as by using the highly modern tools and techniques used by developed nations to make entire production of oil and petrochemical product smoother. On the contrary, Uluskan and Godfrey (2018) argued that, although globalisation opens a new window for modernisation of corporate governance and leadership style, it sometimes interferes with freedom and liberty of global firms to operate their business based on their business terms. While it comes to discuss organisational leadership process, globalisation introduces the marketers to Shell plc to a variety of potential leadership styles that are used and implemented different international companies. Integration of the innovative leadership and management styles in global business platform, assist marketers of Shell Plc to come up with highly modern and relevant leadership process that not only assist the company to direct the workforces toward the company goals but also improves the overall productivity as well as competitive advantages of this company.

(b) Evaluating impact on globalisation on organisational structure:

Globalisation brings about potential changes in organisational structure and culture, that assist global firms to use modernised organisational framework and positive work culture in terms of enhancing productivity as well as competitive advantages of these firms. While conducting international business, higher officials of Shell Plc make effective changes in their overall organisational structure in terms of adapting their business counterpart into foreign environment. Shell plc generally makes useful changes in four types of organisational structures such as product structure, departmental or hierarchical structure, functional structure and administrative structure while operating its counterpart in foreign market. As mentioned by Pikhart (2015), global firms need to assure that the overall changes that are done in organisational structure need to be highly useful and relevant to meet their desired goals in the global market. Globalisation assisted marketers of Shell plc. To make effective modification in their product structure such as product development process, manufacturing and processing method and product life cycle that assist this commonly to come up with high quality and durable products in front of its clients On the contrary Shageeva et al. (2017) argued that, globalisation although makes effective changes in organisational structure, sometimes these changes interfere with basic organisational policies and regulation. In the case of Shell plc, marketers believe in conducting potential research on the modification that they need to make in overall organisational structure to assure that these changes will not impact their core policies and ethics.

(C) Evaluating impact on globalisation on organisational culture:

On the other hand, globalisation improves organisational culture by making it more relevant to the needs and preference of the workforces. On the contrary Gaspar et al. (2016) argued that sometimes existing as well as old staffs working in global firms are obstinate to adapt to new culture and work environment that then create high level of conflict within workplace. In case of Shell plc marketers use globalisation in positive way to change the organisational culture of their company while operating business in host country in such a way that would be highly robust, work-friendly and motivated to entire workforce. In this context, Bedianashvili (2016) argued that cultural changes that an organisation needs to conduct while operating in host country are not always positive and motivated for workforces, in most of times these lead to autocratic work environment to yield more production in the expense of huge work pressure on staffs. While involved in the global business platform, Shell Plc needs to assure that the cultural change that is conducted in this company would not interfere with its organisational moral values and ethics.

(d) Evaluating impact on globalisation on organisational functions:

Globalisation has fastened organisational functions by introducing modern entrepreneurial thoughts, smart business strategies and relevant market policies. Globalisation allows integration of different business ideas, thoughts and strategies of international business marketers that is highly effective for entrepreneurs or multinational businesses to use the current global business trend in their overall market framework to make effective modification of organisational functions. Globalisation will assist Shell plc to come in contact with many international business processes, leadership strategies and management tactics that assist organisational leaders as well as manager of this company to use innovative as well as relevant management and leadership styles in terms of increasing organisational productivity. Additionally, globalisation will assist marketers of Shell Plc to remain updated about current global market policies, busines trend, modern customers preferences and changes in buying behaviour of customers, that are highly effective for this company to make useful changes in its policies to adapt this business with these changes in external market.

3.1 Evaluating how sustainability and ethics can impact organisational structure:

An organisation can maintain well-organised and systematic functions if it can hold its core ethics and sustainability (Hamilton and Webster, 2018). Ethics and sustainability together improve organisational functions by maintaining healthy workflow in every department. In the case of Shell Plc, marketers always try to follow and properly implement organisational ethics and maintain sustainable work environment to create positive work culture. On the contrary Tallman et al. (2018), argued that, in global business platform, it is not all-time possible for global firms to maintain organisational ethics and sustainability as firms need to make consistent changes and in their decision making and market strategies that interfere with their organisational integrity and trustworthy relationship with staffs as well as with client. Being a global energy firm, Shell Plc always believes in keeping organisation’s core ethical values and moral decision same as they were in past years, which not only enhance organisational sustainability by enhancing potentiality of firm’s internal environment but also improve organisational functions by using relevant tools and techniques.

3.2 (a) Use mckinsey's 7S model to analyses the impact on global market on culture and structure of Shell Plc:

Mckinsey’s 7S model is useful in analysing the impact of global market organisation culture and structure. Marketers of Shell plc can apply this model to align seven elements mentioned in this model in systematic manner, these elements are structure, skill, strategy, staff, style, shared values and system. As mentioned by Cox et al. (2019) functions and structural efficiency of an organisation depends on how efficiency a company campaign these core elements into its organisational framework. Being an international energy company Shell plc focuses on maintaining well-alignment of these seven elements into its organisational framework to make betterment of its policies and decision-making process. Through better alignment of organisational structure, strategies and relevant leadership styles, marketers of a global firm can easily deal with the impact of the global market on its internal environment (Gökdeniz et al. 2017). Shell plc prioritise to make consistent modification in its overall, organisation structure, leadership styles, management skills and organisational structure to cope up with changing market trend in global business platform. As argued by Shaqrah (2018), not only structure, strategies and skills, an organisation also needs to focus on other elements that are mentioned in model such as staffs, system and shared values. Marketers of Shell plc focus on using democratic leadership styles, bias-less organisational system and high skilled staffs that assist the company to grab strong competitive advantage in international market

(b) Use Hofstede’s Dimensions of Culture to analyses the impact on global market on culture and structure of Shell Plc:

Hofstede’s Dimensions of Culture is a highly preferred model in business world, that represent six dimensions of national culture. These dimensions are power distance, individualism vs collectivism, feminity vs masculinity, uncertainty avoidance index, long terms vs short term orientation and indulgence vs restraints (Minkov, 2018). Now while global companies operate their function in international business platform, they need to consider these cultural dimensions to make effective modification in their market strategies and business decision to grab strong competitive advantages. While operating in global business environment marketers of Shell plc will evaluate the power distance index to analyse that in current cultural trend to what extent power and inequality are tolerated (Pelau and Pop, 2018). If there is high power index then it means that national culture accepts power difference and inequality. On the other hand, if the index is low, that means culture represents flat organizational structure with no or minimum power difference. In thin aspect, marketers of Shell plc need to make necessary changes while operating on host country by analysing the current cultural trend of power distance index. In case on choosing between individualism and collectivism, marketers of Shel plc need to analyse what type of decision would be relevant to the current business culture in host country that can assist the company to grab strong competitiveness. As mentioned by Pinpathomrat (2017), individualism represent preference of individual goals in organisation rather than prioritising common organizational goals. On the contrary, critics have argued that collectivism is more relevant to the current global business environment than individualism, as it assists global firms to involve entire workforce in organisation decision making thereby benching the overall organisational productivity. Another cultural digestion, that marketers Shell plc would consider during international business operation is uncertainty avoidance index. Marketers of this company believe in analysing the current market trend in host country to decide that whether they will work under high uncertainty avoidance index that means to take high market risk or low index that means to make high tolerance to risk-taking approach. In case of another cultural dimension masculinity vs femininity, Shell plc always believes in maintaining such an organizational structure that will provide equal and justifies opportunities to all staffs irrespective of the gender. While considering the other culture dimension, long term vs shirt team orientation Shell Plc always prioritise to set long term strategic goals that will not only assist the company to grab a strong competitive position in global market but also improves its global brand reputation. On the contrary, Huang and Crotts (2019) argued that it is also important for global firm to set short term goals along with long terms strategic, as these short-term goals assist organisation to manage proper balance among the overall organizational infrastructure. In case of choosing between restraints or indulgence, marketers of Shell Plc always will analyse what type of dimension is accepted by social culture. Indulgence will allow the company to provide make liberal [policies and regulation that will be highly motivating for staffs. On other hand, in case of restraints. Organisational needs to set obligations on workforces to maintain dominance over them.

4.0 a. Evaluation of different ways of decision making in global context: (P5)

Decision making in business is the strategic process that assists marketers to take useful decisions or strategic in terms of dealing with any organisational situation (Kasemsap, 2018). A strong decision-making framework in business is important for taking right decision about organisational functions, policies and procedures that assist the organisation to enhance its productivity and grab strong competitive position in global market. There are different types of decision-making systems that global firms use while operating their functions on global business environment. Following are the different decision-making process that can be used Shell plc while operating international business:

Command Style decision making:

This is the most preferred decision-making process while operating global business. In this type of decision-making, organisational leaders take effective decision without consulting with team members (Lee, 2017). This type of decision-making process is highly effective in large corporate organisation while they operate their global business. Through this decision-making process, managers or organisational leaders can take form and quick decision within allowing the chances of any types of involvement into the decision to solve market risk systematically. Marketers of Shell plc can use this decision-making process it will help them to deal with any kind of market risk at the foreign market. On the other hand, this type of decision making can develop conflict among team members as this decision-making process allow them to put their valuable decision regarding the official matter. In this context, Shell plc marketers need to communicate and interact with team member before taking this decision-making process so that the team can understand importance of taking command decision-making process at particular business situation.

Consult style decision making:

In this process organisational leaders involve the entre team members ab dote staffs of the global firm to give that valuable opinion regarding any business-related issues (Passera et al. 2017). Through making effective discussion and consultation with team members, organisational leaders take a final decision that is expected to be highly productive for entire organisation. Shell plc, can use this decision-making process in any work situation, that will assist its leaders to not only make an effective decision with making effective consultation with team member but it can develop a motivated, highly productive and creative team that can assist the company to deal with any kind of global market risk.

Vote style decision making:

Voting is used in a situation in which efficiency is priority for the organisation while taking any decision (Ajmal et al. 2017). This decision-making process allows organisational leaders to select from several good options. Shell plc can use this decision-making process, while organisational leaders need to select the best strategy of option among many decent options. In this context, the organisational leaders need to consider whether the team members are agreed to with the decision that is going to be selected. On the other hand, the manager of Shel plc needs to avoid this decision-making process if it creates any conflict among the team leaders regarding seeking approval for their individual decision.

Consensus style decision-making:

This type of decision making is effective but rarely used process in case of operating international business function (Aribawa, 2016). In this type of decision-making process, organisational leaders need to get approval from all the team members before taking any decision. Shell plc can use this decision-making process to solve the complex issues in which each staff need to support the final decision.

Data-driven;

In this type of decision-making process, Shel plc needs to make proper market research and collect a useful database on the foreign market in which it is going to operate its business (Kasemsap, 2016). These databases are used in taking effective and market strategies to deal with any market issues.

B. Ways of global market entry:

There are different ways in which a business can enter into foreign market such as:

Exporting:

Export is a highly preferred global market entry strategy used by international marketers in which goods and services produced by a company in domestic country and send them to foreign country for grabbing high profit and good international market position. Shell plc already uses this strategy in operating its international business, in which it sells oil and petroleum products to international countries and earn huge foreign currencies.

Licencing:

Licencing is the entry strategy in which the parent company or licensor provides the rights to other foreign firms to manufacture and sell their products and service by using the brand names, sales knowledge, manufacturing process and patent of licensor. Here shall plc can use this strategy by playing the role of licensor. Here shell plc can provide licence to other foreign companies to sell their petroleum and oil product in international market.

Joint venture:

In this process, a firm signs agreement of partnership business with a foreign company to get market opportunities in that foreign country. Although this process would provide Shell plc with several market opportunities in foreign market such as reasonable suppliers and labours cost, it leads to interference of the foreign partner company into the business process of shell plc.

Direct investment:

Shell plc can invest into wholly-owned foreign subsidiary to manufacture and sells products in foreign country. This process can pose legal and political barriers on business of Shell plc. Therefore, marketers of this company need to do research on overall external environment of foreign country in which it is going to invest.

Trade intermediaries:

For avoiding resources and economic barriers, international firms sometimes hire trade intermediaries who intermediate the business between two international companies. Shell plc can use this process to avoid complex political, legal and economic barriers of foreign market.

C. Critically evaluate global market entry strategies as well as barriers and make recommendation to deal with them:

There are different types of market entry strategies that global firms follow to operate international business in foreign market, such as direct export, licencing, franchising, joint venture, ownership and partnership. As mentioned by Shageeva et al. (2017), while going to enter into new market, marketers of a global firm need to consider different macro environment aspects such as political, legal, social and technological that have potential impact on firm’s internal environment. Shell Plc generally follows direct exporting, licensing, ownership and greenfield investment during international operation, as these direct marketing processes assist this company to maintain their core organisational values and uniqueness of market tactics as well as business strategies in foreign market. On the contrary Gaspar et al. (2016) argues that, although direct export, ownership and licencing assist firms to maintain their monopoly power over entire business, sometimes joint venture and ownership business are proved to be effective in foreign market to get better competitive and strategic advantages. The barrier that Shell plc can face while going for direct export to foreign counties is additional taxation charge, excise duty and irrelevant legal obligation set by foreign government on imported products. Barriers that marketers of Shell plc can face while conducting joint venture and partnership business are interference of the partner company into core organisational values ad business strategies of this company.

C. Recommendations that can be made for Shell plc to combat the barriers are as follows\

Marketers of Shel plc should make thorough market research over the foreign market to analyse current market trend, customer behaviour, business tactics and socio-cultural aspects which will assist this company to use such entry strategies that will be highly relevant and profitable to the current market situation in host country Marketers of Shell plc should go for joint venture and partnership strategy by merging with local marketers in host country that will provide Shell plc with several benefits such as low supply cost, low labour charge, taxation exemption and governmental as well as legal facilities. Marketers of Shell plc should take market-oriented and collectivism strategies that will assist this company to involve entire workforces to introduce innovative business tactics and techniques that will assist this company to adapt to current market trend of host country.

D. Critical analysis of strategies that can be adapted by marketer of Shell Plc:

The above-mentioned recommendations are expected to be highly relevant and effective for Shell plc in terms of operating smooth as well as profitable business operation in international market. Thorough market research on global business environment will assist marketers of this company to understand the overall political stability, legal obligation, socio-cultural trend, technological infrastructure and economic growth of foreign market in which the company is going to operate it business. On the contrary, Hamilton and Webster (2018) argue that sometimes only market research cannot assist global firms to overcome barriers that they face in foreign market. In this context, Shell plc can make partnership business with local marketers of foreign country which will assist them to grab advantages in terms of grabbing low-cost labour, tax exemption, legal exemptions and low-cost suppliers. In addition to this, market-oriented strategy would also be highly effective for this company to use such market decisions and business strategies that are strictly associated with grabbing strong competitive advantages.

4.1 Conclusion:

From the overall discussion, it can be concluded that the global business environment has potential impact on the organisational culture and structure. Therefore, international firms need to set such strategies that will assist them to deal with the ever-changing market end and customer preference in addition to this, marketers need to make consistent modification and evaluation in their business strategies to come up with high-quality product and service each time on a global business platform.

Reference list:

Aithal, P.S., 2017. Impact of Domestic, Foreign, and Global Environments on International Business Decisions of Multinational Firms: A Systematic Study. International Journal of Management, Technology, and Social Sciences (IJMTS), 2(2), pp.93-104.

Ajmal, M., Helo, P. and Kassem, R., 2017. Conceptualizing trust with cultural perspective in international business operations. Benchmarking: An International Journal.

Aribawa, D., 2016. E-commerce strategic business environment analysis in Indonesia. International Journal of Economics and Financial Issues, 6(6S).

Cox, A.M., Pinfield, S. and Rutter, S., 2019. Extending McKinsey’s 7S model to understand strategic alignment in academic libraries. Library Management.

Doh, J.P., Luthans, F. and Slocum, J., 2016. The world of global business 1965–2015: Perspectives on the 50th anniversary issue of the Journal of World Business: Introduction to the special issue.

Gökdeniz, İ., Kartal, C. and Kömürcü, K., 2017. Strategic assessment based on 7S McKinsey model for a business by using analytic network process (ANP). International Journal of Academic Research in Business and Social Sciences, 7(6), pp.342-353.

Hill, C., Hult, T., Wickramasekera, R., Liesch, P. and MacKenzie, K., 2017. Global Business Today Asia-Pacific Perspective. McGraw-Hill Education.

Huang, S.S. and Crotts, J., 2019. Relationships between Hofstede's cultural dimensions and tourist satisfaction: A cross-country cross-sample examination. Tourism management, 72, pp.232-241.

Kasemsap, K., 2016. Advocating entrepreneurship education and knowledge management in global business. In Handbook of research on entrepreneurship in the contemporary knowledge-based global economy (pp. 313-339). IGI Global.

Kasemsap, K., 2018. Mastering business process management and business intelligence in global business. In Global Business Expansion: Concepts, Methodologies, Tools, and Applications (pp. 76-96). IGI Global.

Passera, S., Kankaanranta, A. and Louhiala-Salminen, L., 2017. Diagrams in contracts: Fostering understanding in global business communication. IEEE Transactions on Professional Communication, 60(2), pp.118-146.

Pelau, C. and Pop, N.A., 2018. Implications for the energy policy derived from the relation between the cultural dimensions of Hofstede's model and the consumption of renewable energies. Energy Policy, 118, pp.160-168.

Pinpathomrat, N., 2017. Cultural model of information technology usage (CMITU). Global Journal of Information Technology: Emerging Technologies, 7(2), pp.42-49.

Shageeva, F.T., Erova, D.R., Gorordetskaya, I.M., Kraysman, N.V. and Prikhodko, L.V., 2017, September. Training the achievement-oriented engineers for the global business environment. In International Conference on Interactive Collaborative Learning (pp. 343-348). Springer, Cham.

Tallman, S., Luo, Y. and Buckley, P.J., 2018. Business models in global competition. Global Strategy Journal, 8(4), pp.517-535.

Uchihira, N., Ishimatsu, H. and Inoue, K., 2016, September. IoT service business ecosystem design in a global, competitive, and collaborative environment. In 2016 Portland International Conference on Management of Engineering and Technology (PICMET) (pp. 1195-1201). IEEE.

Wei, L.H., Thurasamy, R. and Popa, S., 2018. Managing virtual teams for open innovation in Global Business Services industry. Management Decision.