Globalization and Economic Interdependence

Task 1

Introduction to the concept of globalization.

“GLOBAL”, “BUSINESS”, and ”ENVIRONMENT”, these three words portray a truth of the idea of universal exchange, its advancing in a principal route because of various powers forming the nature and elements of worldwide trade.

GLOBAL BUSINESS - is comprehensively seen with regards to shared, progressively incorporated condition.

We presently convey and share societies through movement and exchange, shipping items around the globe in hours or days. Thehuge worldwide economy where something that occurs in one region can have thump on impacts around the world.

Globalization is the procedure by which the world is getting progressively interconnected because of greatly expanded exchange and social trade. Globalization has expanded the creation of products and ventures.

Globalization has been occurring for many years, however, has speeded up colossally in the course of the last 50 years and it resulted in :

increased universal exchange

organization working in more than one nation

greater reliance on the worldwide economy

freer development of capital, goods, and services.

1.1 An analysis of the key drivers of globalization (P1)

(You are required to adequately examine each of the key drivers (at least 5 key drivers) of globalization (P1).After examining each driver, critically analyse its impact on globalization in terms of benefits and challenges (M1).

Key forces driving Globalization

There are many key drivers of globalization, bellow there is an examination of some key drivers of globalization as:

Increase in and application of technology

The progress of Technology is a key driver of developments in earnings and habits of life. However, new information and technology don't grow all over the place and simultaneously. The manner in which technology increases across nations is fundamental to how worldwide development is produced and shared across nations. As an example, during 1995–2014, the US, Japan, Germany, France, and the Unified Kingdon (the G5) provided three-fourths of every single licensed technology worldwide. Another giant nations, China and Koreahave opened to make significant commitments to the worldwide load of technology in the last few years, joining the main five pioneers in different parts.

Advantage of Increase in and application of technology

The growingof worldwide applicant of technology streams focuses to significant advantages of globalization, at a medical level, technology helps treatand save numerous lives and battle unsafe infections and bacteria.The development of the Computer was a significant point, company and people can share instantly information, do video conference, send emails with different people in different part of the world by using computer. Technology has expanded the efficiency of every industry on the planet.

Challenges of Increase in and application of technology

The development of technologyhas, also some burdens, with a new technology people no longer needs to think, for example, the calculator was a great creation, people no longer makes mental calculation and never again works his memory. The decrease of human capital infers an expansion in joblessness. In now days, in many areas, human mind can be replaced by technologic devices. In fact, most technology discovery expect to lower human effort, it would suggest that more work is finished by machines, it impliesless work for people, the human is getting outdated continuously, as it becomes robotized and employments are made excess.

Liberalization of cross-border trade and resource movement

The Liberalization of cross-border trade and resource movementare the essential parts of Globalization. During years governments have decreased limitations on development of products and ventures, laborers, capital and machineryacross the borders. This has been required by residents that need more prominent assortment of goods and services at lower costs. The rivalry spikes domestics makers to turn out to be progressively proficient, and they plan to introduce different countries to bring down their barriers in turn.

Advantage of Liberalization of cross-border trade and resource movement

Liberalization of cross-border trade and resource movement facilitated free trade, which permits nations to trade products without governmental boundaries or their related costs. Thisguideline reduces costs for nations that exchange with different countries and may, at last, bring lower customer costs since imports are liable to bring down charges and rivalry is probably going to increment. Expanded competition from abroad because of trade liberalization makes an impulse for more notable efficiency and less expensive generation by national firms. This competition may help nation to move assets to enterprises wherein it have a competitive advantage. For example, the NAFTA (North America Free Trade Agreement) signed in January1994, by Canada, Mexico and United States. The agreement eliminated tariffs on products that where trade among these 3 nations.

Disadvantage of Liberalization of cross-border trade and resource movement

Liberalization of cross-border trade and resource movement can adversely influence certain organizations inside a country in light of more significant challenge from foreign makers and may bring about less local help for those ventures. There may be a monetary and social hazard if items or raw materials, originate from nations with lower environmental standards. Trade liberalization can represent a danger to creating countries or economies since they are compelled to contend in a similar market as more grounded economies or countries. This test can smother set up nearby enterprises or result in the disappointment of recently created businesses.

Development of services that support international business.

Companies and government have developed a variety of services that facilitate global trade and commerce.

Banking and credit management

Insurance services

Shipping services – transport

Accounting services

Changes in political situations and government policies

Political changes open new frontiers for international business – companies will to invest in politically stable countries. Government policies to support transport and communication facilities to foster speed and cost efficiencies for delivering goods and services into global markets.

Cost

The globalization of client needs and the open doors for scale and institutionalization it brings will on a very basic level adjust the financial aspects of numerous enterprises. Economies of scale and degree, experience impacts, and abusing contrasts in factor costs for item improvement, fabricating, and sourcing in various pieces of the world will accept a more prominent significance as determinants of worldwide system. At base is a straightforward reality: a solitary market will never again be sufficiently enormous to help a serious technique on a worldwide scale in numerous enterprises. Worldwide scale and degree financial matters are as of now having broad impacts. From one viewpoint, the more the new economies of scale and degree shape the methodologies of officeholders in worldwide businesses, the harder it will be for new participants to build up a successful serious danger. Therefore, obstructions to passage in such businesses will get higher. Simultaneously, the contention inside such ventures is probably going to increment, mirroring the widening extent of rivalry among reliant national and provincial markets and the way that genuine separation in such a serious domain might be more diligently to accomplish.

Resources and markets

The natural resources like minerals, coal, oil, gas, human resources, water, etc. make an important contribution in globalisation. Utilisation of built up capacities of production, sluggishness in domestic market and over production makes a manufacturing company look outward and go global.

2.0 An explanation on the complexity of strategic challenges faced by global businesses (P2)

Globalization refers to the increasing integration of production, development and communication among nations on a worldwide scale. Globalization is often divided into three categories: economic, political and social. Though all three are interdependent, economic and political forces are usually the driving factors of globalization, while social changes generally occur as a result of those activities. Social globalization pertains to human interaction within cultural communities, encompassing topics like family, religion, work and education.

Political changes:

Globalisation is multifaceted and complex phenomenon which influence integration of global polies and governmental; agendas regarding business activities. According to Barnier and Wright (2017), globalisation political landscape provides both the challenges and advantages for government and marketers. The advantages are through globalisation, national government of different countries can set better standard for marketing and trade to develop opportunities for cross border trade. On the other hand, challenges that political globalisation poses on marketers are the reformation of existing and new policies through which government pose obligation of marketeers to restrict free movement of products and service beyond the national borders. In this context, Shell can face political and legal barriers enhance operating its functions in the international market such as taxation barriers, restriction of free entry-exit process and legal obligation of marketing policies of this company in foreign market.

Cultural diversity – (language, ethics, values, traditions, customs)

Cultural diversity poses important impact on the global business activities (Ayodele et al. 2019). Some common strategic challenges that global businesses face due to globalisation are conservative religions, language barriers and inflexible traditional values. In most of the times, global business leaders face difficulties in adapting to the traditional trend and conservative buying trends in overseas countries which poses negative impact on the overall business profit and marketing activities of these businesses. In this context, marketers of shell would research on language, ethical values, customers and tradition of foreign industries in terms of operating its business smoothly over there.

Diverse currencies:

Although globalisation brings about market opportunities for businesses it also has some challenges that global businessface during operating their business in international market (Barnier and Wright, 2017). One of the most common challenges that global business face during global business operation is different exchanges rates and diverse currencies in different currencies which create issues in conducting smooth transaction beyond the nationalborders. On the other hand, while business while operating in countries that are less string economically than theparent countries, will have poor profit due to lower value of money. Therefore, marketers of Shell need to get proper information about exchange rate and currencyvalues in different countries before business over there.

Regulatory challenges:

In global business landscape, marketers face challenges in setting the appropriate and relevant regulation for tier firm. According to Jona and Guxholli (2018), as globalisation allows integration of different marketing decision in the global context, it may create difficulties for holding their polities and regulations. In this context, marketers of Shell will pose on understating different market trendwhile operating in the global market platform in order to set unique organisational regulatory policies which will assist themarketers to havewell-organised and well-maintained workplace in foreign in foreign country.

Diverse country risks

As globalisation assist marketers to operate their business beyond the national border, marketers face difficulties coping with different values, tradition, market trend, customerbehaviour and ethics in the new market. According to Katz et al. (2016), diverse country risk in one of the most important strategic challenges that global business face, in termsof adapting their business activities to the completely new market environment. In addition to this, marketers also face the language, culture and ethical barriers in the new country which oppose obligation of marketers to set new rules and standardise their marketing policies to adapt to the completely new market trend. Shell needs to focus on making effective marketing strategies which will assist marketers to set effective marketing strategies what will be relevant to market demand and customer buying behaviour in the new market.

Interdependence

Globalisation makes integration of different culture, market trend, marketing policies and business activities which makes interdependent of business form on one another (Katz et al. 2016). As mentioned by, interdependence is sometimes spoil individualism of businessesfor developing unique marketing rules and strategic and business is need decisions that are important for grabbing high level of competitive advantages in the international market. In this context, marketers of Shell will focus on improving their business strategies and maintaining individualism in this business decision which will assist marketers to grab strong customers’ attention.

Challenges in business communication:

Due to globalisation, marketers face difficulties in performing proper cross cultural communications in their business (Kukovec et al. 2018). In terms of operating business in the new market, business marketers face difficulties in communicating with the new market, new customers and local; suppliers as the body language, behaviour and preference in the market is completely different. In this context, marketers of Shell needs to analyse overall communication process in the new market in which it is operating its business in order to set proper marketing strategies which will assist the marketers to maintain effective communication with the local marketers an suppliers.

2.1 A critical analysis on the strategic challenges caused by globalization on risk, diversification strategies and supply chain (M2)

Sustainability in business is coordination and management of environmental, financial and social demands for ensuring successful implementation of organisational policies and procedures. For example, Shell, as the reputed energy producing company, focuses on maintaining the business sustainability in order to mange social, environmental and economic demand in the workplace which assists its staffs as well as managers to deal with changing market trend and the customer buying behaviour.

Business risk:

According to Kukovec et al. (2018), globalisation although brings about new business opportunities for global marketers, it creates some business risk for them such as cultural risk, enhancing competition, interdependence and communication challenges. For example, Shell will face difficulties in new market in terms of maintaining proper communication, unique marketing strategy and right pricing strategy. In global environment, marketer of Shell will face difficulties in adapting their business with the new market trend and customer preference in the overseas countries. In addition to this globalisation makes integration the marketing policies decision and business activities which spoil the individualism of business activities.

Challenges in diversification strategy:

While operating in new market, global business needs to make right diversification strategy for setting appropriate marketing agendas in terms of gaining strong competitive advantages in market (Martinez et al. 2019). For example, Shell is going to face the difficulties in communicating with completely different culture and customer preference while operating in the new market with new product. On the other hand, Shell may face difficulties while operating in new market with existing products, in terms on grabbing proper competitive advantage due to existence of potential rivals

Challenges in supply chain management:

According to Daniels et al. (2013), globalisation wills strong competition on marketers in order to find out appropriate suppliers the new market. Global marketers sometime face difficulties in maintaining proofer supply chain management operation due to scarcity of finding out right suppliers to get raw material within proper time. For example, marketers of Shell can face difficulties in finding high-skilled suppliers in order to get high quality raw materials. The reason behind this is majority of potential local and existing marketers in foreign markets have already captured most of the suppliers for having high quality raw materials in minimum price. Therefore, while operating in the new market, Shell marketers will have to buy the raw material in higher price which will automatically enhance the overall expenditure of the business.

2.2 A critical evaluation of the global business environment(D1)

Globalisation describes growing global interconnectedness. It involves the organisation and exercise of power on a global scale. It is a multidimensional process – it applies to a whole range of social relations, cultural, economic and political The process of ‘change’ involves international trade and investment. So clearly the role of business corporations and their overseas activities is a key part of this change. The opening up of trade which allows goods and services to travel across the world more freely, an increase in foreign investment - companies investing overseas by building plants, contracting subsidiaries or buying stock in foreign countries. The opening up of capital markets which increases the flow of money across the world. It improved access to communication - from the development of new technology like the internet to cheaper plane tickets

Advantage of globalization

International trade promotes efficiency and saves resources by encouraging production of goods and services in countries where the costs are lowest. It leads to lower prices for consumers by creating greater competition between businesses. Trade boosts growth by creating new opportunities through larger markets, creating more jobs, and enabling the specialisation of labour, boosting productivity. Trade between two countries increases economic welfare in both by widening the range of goods and services available for consumption. Improved governance is another potential benefit of globalisation. Better communications technology, and particularly the Internet, mean governments can more easily be held to account, allowing greater scrutiny of government spending by citizens.Another recent development that has helped millions of people is the globalisation of knowledge through information and technology.

Disadvantages of globalization( culture, language, economic, nationalism )

Economic globalisation has provided new opportunities for those with capital to increase it, creating greater concentration of wealth in the hands of minority elites. Economic globalisation is a new form of colonialism. Economic globalisation as resulted in marginalisation of poor countries Economic globalisation has resulted to unemployment in some countries. It has resulted in un-equitable distribution of world wealth. It has destroyed local industries in some countries. It has resulted in dumping of goods. Increased flow of skilled and non-skilled jobs from developed to developing nations as corporations seek out the cheapest labour. It increased likelihood of economic disruptions in one nation effecting all nations. Corporate influence of nation-states far exceeds that of civil society organizations and average individuals. Threat that control of world media by a handful of corporations will limit cultural expression. Greater risk of diseases being transported unintentionally between nations.Spread of a materialistic lifestyle and attitude that sees consumption as the path to prosperity.International bodies like the World Trade Organization infringe on national and individual sovereignty.

Opportunity of globalization

In fact, globalization brings more extensive group of items, services, technology, medicine, and information will get accessible, and that these improvements will can possibly arrive at fundamentally bigger client bases. This implies bigger volumes of offers and trade, bigger development rates in Gross Domestic Product (GDP), and greater strengthening of people and political systems through the obtaining of extra assets and capital. These advantages of globalization are seen as useful, giving the most ideal advantages to the biggest number of individuals. Global organizations, regularly alluded to as global companies (MNCs), basic advantages of venture into creating markets incorporate unsaturated interest for new products, lower work costs, more affordable common assets, and different contributions to items. Technological improvements have made working together globally significantly more helpful than previously. MNCs try to profit by globalism by selling merchandise in various nations, just as sourcing creation in regions that can deliver products all the more productively. Organizations decide to work globally either in light of the fact that they can accomplish more significant levels of income or in light of the fact that they can accomplish a lower cost structure inside their activities. MNCs search for chances to acknowledge economies of scale bycreating products in business sectors that have significantly less expensive expenses for work or different information sources. In the event that effective, both of these procedures lead to business development, with more grounded edges and additionally bigger incomes. There is especially solid open door for business development in business sectors where solid monetary development is additionally anticipated. In these regions, wages are rising by and large, neighbourhood populaces would now be able to bear the cost of merchandise and enterprises that were beforehand distant, incorporating numerous great created in industrialized nations. Worldwide organizations remain to catch more grounded development and benefit in the event that they can make progress into these business sectors.

Challenge of globalizations

critics question the ethics and long-term feasibility of profits captured through global expansion. Some argue that the expansion of global trade creates unfair exchanges between larger and smaller economies. They argue that MNCs and industrialized economies capture significantly more value because they have more financial leverage and can dictate advantageous terms of exchange, which end up victimizing developing nations. Critics also raise concerns about damage to the environment, decreased food safety, unethical labor practices in sweatshops, increased consumerism, and the weakening of traditional cultural values.

Conclusion

From the above-mentioned it can conclude that, globalisation assist marketers to make proper integration of marketing policies business agendas and business activities in order to high level of competitive advantages in foreign market. Globalisation brings about advantages for marketers in the new markets with new customers, marketing opportunities and business agendas. Along with the advantages of globalisation, there are some challenges that global business can face such as difficulties in maintaining communication in the new market, adapting to the new culture of marketers and understand that actual trend in the market.

Task 2

3.0 (a) An evaluation of the influences of globalisation on organisational governance and leadership(Part of P3)

Globalisation assists global organisation to go beyond the national boundary and explore the unknown business world. According to Guay, t. R. (2014), globalisation allow organisational to make proper integration of marketing and organisational policies which will assist marketers to set the perfect organisational policies and governance which will assists the overall business to maintain well-organised workplace. In this context, Marketers of Shell will have opportunities to understand the different corporate governance in foreign countries which will assist its marketers to set such organisational governance and leadership strategy that will assist this company to grab high level of competitive advantage in the market. In addition to this globalisation will assist marketers of Shell to choose best market leaders who will guide and train the workforce in such a manner which will increase productivity of the company. In this aspect John et al. (2015) mentioned that, globalisation assist global market leaders to come across the different leadership strategies and organisation policies in overseas market which will assist them, to select best marketing and leadership strategies into workplace. For example, marketers of Shell while operating in USA will understand the overall leadership and organisational government of local and excising business operating in thus market which will assist the marketers leaders of Shell to set effective leadership strategies that are relevant to implement better organisational policies. In addition to this, globalisation will assist the business leaders of Shell to conduct proper research on the current marketing strategies organisational policies and leadership styles that are implemented by many of the global business in the energy industry. Therefore globalisation will assists the market leaders of Shell to set marketing strategies and organisational governance based on the current market trend and customer demand in foreign market which will assist this company to grab high level of competitive advantages.

b) An evaluation of the influences of globalisation on organisational structure(Part of P3)

Globalisation has string impact on business structure and operation of global organisations. While operating in new market, marketers of a firm need to focus on maintaining suitability of its business which is possible by bringing about appropriate modifications within the organisational structure and functions. According to Milani (2019), due to integration of organisational policies culture marketing strategies global marketers are sometimes compelled to make chances in the organisation structure. For example, while operating in India, which is economically down from the parent countries of Shell, the UK, the marketers has modified the structure of human resources department, marketing department, financial department, customer dealing process, selling department and manufacturing unit. The overall modifications are done in the business based on the market demand, marketing trend and customer preference in the new market. On the contrary Pati et al. (2018) argued that due to globalisation sometimes the modifications in organisational structure are sometimes cannot be accepted and adapted by the internal staffs and managers in the workplace which can interfere with the effectiveness of these changes in terms of gaining proper profit and competitive advantages in this context, marketers of Shell focuses on conducting effective market researches on new market in terms of understand what type of modification they need to conduct in their organisation structure for operating the business successfully in new market

c) An evaluation of the influences of globalisation on organisational culture(Part of P3)

Globalisation leads to changing work culture, organisational value, organisational ideas and work ethics. According to Pati et al. (2018), as globalisation is a multicultural and complex process, it assist global firms to make modification in their organisational beliefs, values, ethics and workplace culture in terms of adapting the business to the global market landscape. For example, Shell has focused on shared values, ideas and work cultures to cope with ever-changing market trend and changing preference of customers in foreign market. Through making proper modification in the organisational culture, marketers can develop new beliefs, innovative organisational ideas and liberal polices which contribute to the overall success and competitive advantages if business. on the contrary Prajogo (2016) argued that, sometimes changed work culture, organisational values and work ethics hurt the emotion and trust of the old and existing staffs in an organisational in global market who can create high level of conflict within the company. On the other hand, sometimes staffs are unable to adapt to the new trend, ethics and organisational culture in global market which will interfere with overall productivity and profit of organisation. In this context, marketers of Shell need to focus on considering not only the current market trend and customers in the new market but also the preference and adaptability of staffs in terms of implementing changes in organisational culture.

d) An evaluation of the influences of globalisation on organisational functions (Part of P3)

Globalisation allows marketers to improve organisational functions through maintaining shared business knowledge, skills and marketing information. According to Prajogo (2016), due to globalisation markets of global business are able to come in contact with potential business in the world and their organisational functions, which assist the marketers to modernise teh overall organisational functions for fastens the overall products and service delivery process. In this context, Shell has used globalisation to modify its overall organisation function by making the operating digital, which assist the staffs to communicate with customers in the international market in faster manner than earlier. In addition to this, through globalisation marketers of Shell is able to get information regarding the current market trend in energy industry and organisational function of potential marketers in this industry to deal with the high competitive, which assist this company to improve the overall organisational function inn order to get high level of competitive advantages. For example, globalisation assists marketers of Shell to conduct modern process of workplace management, marketing functions human resources functions, selling process and customer dealing process which is relevant to the changing market trend and new customers demand in the international market.

3.1a) An evaluation of the influences of ethics on organisational functions(Part of P4)( 100)

Ethics of an organisation can be considered as its policies, values and principles that are associated with operating organisational functions and managing organisational culture. Ethics plays important roles in maintaining proper organisational functions in global business. According to Salyova et al. (2017), through maintaining ethical values in organisational, marketers of firms can manage different organisational functions such as human resource operation, financial operation, social operations marketing and selling operation. For example, marketers of Shell prioritise maintaining their ethical values in terms of managing positive work environment in the workplace which assist staffs to manger organisational functions accordingly. On the contrary Shaaban and Magsi (2019) argued that, sometimes global business difficulties in maintaining ethics while operating product development, promotion, selling and service delivery process. in this context marketers of Shell needs to modify their selling strategies, marketing process and human resources functions based on the market trend and customer’s demand in new market which is beyond their organisational ethics. Therefore, marketers need to makes modifications on the overall organisational values and principles which will be relevant to the new market, so that will assist marketers to modernise the overall organisational functions without compromising the organisational ethics.

b) An evaluation of the influences of global sustainability on organisational function (Part of P4 )

Sustainability in business is defined as maintaining proper balance among financial, social and environmental factors within workplace which assist marketers to make consistent success of the organisation (Shaaban and Magsi, 2019). Globalisation promotes global sustainability which allows international marketers to grab proper social, financial and environmental support in order to manage stability of the business in the overseas market. In this context, marketers of Shell will have opportunities in resource allocation, waste management, reduction of environmental pollution and maintain good governance. On the contrary Kukovec et al. (2018), global sustainability sometimes makes difficulties for marketers in managing individual organisational sustainability need to focus more on the market trend and customer demand in the international market rather than focusing in their own organisational needs. In this aspect, marketers of Shell need to maintain proper balance between the global and organisational sustainability which will assist marketers to grab high competitive advantages and customer attention.

3. 2 (a) Application of McKinSey 7S Model on organisational structure in case the of Shell Plc (Part of M3)

What is Mckinsey 7s?

Mckinsey 7s model has seven elements such s strategy, skills, structure, styles, staffs and shared value, which assist marketers of an organisational to maintain proper coordination among all the factors in terms of grabbing proper competitive position in the international business platform (Katz et al. 2016). Shell needs to apply this model into its marketing process to modernise its structure, work process, workforce, organisational policies and marketing strategies in terms of coping with the changing market trend and customer’s demand in the international market. On the other hand, through using thus model into business, Shell can maintain organisational sustainability which will assist marketers to establish stable and strong market position in the international market.

In order to implement the Mckinsey 7s modekl, Shell has set proper strategy that assist the marketers to focus on maintaining proper coordination among seven above-mentioned factors. For maintaining proper strategy, marketers need to focus of setting proper marketing agendas that will assist the business to grab strong competitive advantages. In this context, Shell will implement right organisational state that will, assist this company to modernise the overall organisational process bad principles which are important for coping with the changing market trend and have string competitive position in the market. In addition to this, Shell will improve the system such as organisational procedures and processes in order to make faster delivery of products. While dealing with skills, Shell will, conduct training ad developmental program for entire workforce which will assist staffs to enhance their professional standard. On the other hand, in terms of dealing with styles and staffs, the marketers of Shell will improve the overall process of commutation and interaction between the mangers and staffs. Finally, to maintain the shared values, Shell needs to focus on bringing about proper modification in the standard and norms of the company to improve overall brand reputation and organisational image in front of the international marketers.

Application of Hofstede's Cultural Dimensions theory in the case of Shell Plc(Part of M3)

By using Hofstede’s Cultural Dimensions theory, Shell can deal with cross-cultural communication and transnational trade processes. According to Jona and Guxholli (2018), through using the power distance index, individualism, collectivism, uncertainty and avoidance marketers can adapt to the culture and marketing trend in the international marketing platform. Shell can implement the overall marketing strategies in right manner will assist marketers to adapt to the cross cultural context. On the other hand this model will assist marketers of Shell to maintain shared culture in the workplace which will assist its staffs and mangers to understand the actual customers demand and their buying behaviour. In addition to this, the model will assist marketers of Shell to analyse whether the cultural trend in the international business landscape is useful for marketers.

4.0 (a) An evaluation of different ways decision making can work effectively

Shell will focus on the following ways of decision making:

Stating the goals:

Shell needs to state its marketing and business goals in terms of grabbing high level of competitive advantages and customer attention.

Gathering information:

In this stage, companies need to gather proper information regarding the market trend in order to take right marketing decisions. Shell marketers will gather information regarding the customer buying behaviour, market demand and customer preference, in order to take the right marketing strategies which will assist the company to grab market success in the international and business platform.

Consider consequences:

In this stage, Shell will analyse how these market strategies will impact on the overall business activities and market success.

Identifying the issues:

In this stage, Shell will determine the issues in decision making process, which will assist marketers to modernise their organisational pelvis and procedures in order to grab high competitive advantages.

Evaluate decisions:

In this stage, marketers of an organisational can determine the issues and effectiveness of the market decision. In this context, markets of Shell need to determine the overall usefulness of the business decision in order to analyse whether the business decisions are able to grab the business success in the international business.

(b) Ways(strategies) to enter global markets(P6)

Franchising: Through this entry process Shell can operate its business in foreign country to sell products and services in the market by using brand name and image of the parent company.

Direct exporting:

Through this entry process, Shell can sell its products and services to another country with managing the overall operating friom th parent company. In this process, the company does not need to open its business in the foreign market rather it communicates with marketers through online communication process to take orders for product and service delivary.

Joint venture:

In this process Shell can merge its marketing and business operation with any local or foreign brand in the new market which will assist this company to grab customer’s attention and strong competitive position in the foreign market.

Licensing:

In this entry process, Shell will apply for the governmental permission in the foreign country in order to operate its business function in the country. In thus process, Shell, will grab the governmental permissions in selling its products and services to local customers freely.

Partnership: this entry process is similar to the joint venture in which Shell will merges with the other combines in the foreign market in order to grab proper competitive advantages.

(c) A critical evaluation of the key barriers to globalization and recommendations to overcome them.(P6 & M4) 300

Key barriers are:

Cultural barriers:

Global marketers face cultural barriers in the foreign market which makes them enable to adapt with the new trend, culture, beliefs and values in the international market. in this context, shell need to research on the cross cultural trend in the global market place which will assist marketed to set effective strategies in order to adapt with new cultural trend in the foreign market.

Financial barriers:

Global marketers can face difficulties due to different exchange rates and currencies in international market. In this context, Shell can face difficulties in maintaining financial transaction.

Language barriers:

Shell will face difficulties in communicating with local customers, suppliers and dealers in the foreign market as staffs of this company cannot be comfortable with the new language.

Social barriers:

Conservative social rituals, social beliefs and old-dated social perception pose negative impact on global business. Shell will face difficulties in adapting to the social values and perception of the local customers in the international market which will makes it difficult to the staffs to convince the customers to accept their product and service.

Political barriers:

In terms of operating global business operation, marketers of Shell can face inflexible business policies and legal obligation posed by the local government of foreign country.

Recommendation

Shell should research on the cultural trend in the foreign country which will assets markets to cope with the new trend and customers perception.

Shell should set strategies to be comfortable with the exchange rats and currencies in the foreign market by enhancing their market profits and maintaining healthy relation with local marketers.

Shell will focus on appointing staffs from the local marketers in foreign countries in order to eliminate the language barriers. In this process the newly appointed local staffs will assists the marketers of Shell to understand and learn the local language.

In order to eliminate the political barriers, Shell should comply with the governmental policies and procedures

(d) A critique of the strategies adopted when entering the global market and valid and justified recommendations of how Shell Plc should adapt its organisational structure and decision-making processes (D2) 200

Shell is recommended to use the following strategy

Shell will focus on researching on marketing strategies in order to set the effective market agendas and business decision that will assist them to grab high competitive advantages.

Marketers of Shell should focus on evaluating eth performance standard of its staffs in order to enhance the organisational productivity.

Shell should support the cross cultural communication process which will, assist its marketers to improve their business knowledge and decision in grabbing strong competitive in international market

References

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