ASSIGNMENT SUBMISSION FORM

ASSIGNMENT SUBMISSION FORM
This sheet must be submitted with your assignment. Failure to complete, sign and submit this form will result in a mark of ‘0’ for the assignment.
    Student Name
    
    Student ID
    
    Assessor Name
    
    Qualification
    Pearson BTEC Level 5 HND Diploma Business (Management)
    Unit Number & Unit Title
    Unit 18:Global Business Environment(GBE)
    Assignment Title
    Shell Global
    Date of Submission
    
By submitting this form and signing below, I declare that:
· I am the author of this assignment and that any assistance I received in its preparation is fully disclosed and acknowledged in this assignment
· I also certify that this assignment was prepared by me specifically for this course
· I certify that I have taken all reasonable precautions to make sure that my work has not been copied by other students
· I confirm that I have understood the College’s regulations on plagiarism
· I confirm that research resources are fully acknowledged
Signature: ……………… ……………………… Date: ………………………………
(
Plagiarism
is presenting somebody else’s work as your own. It
includes:
copying information directly from the Web or books without referencing the material; submitting joint coursework as an individual effort; copying another student’s coursework; stealing coursework from another student and submitting it as your own work. Suspected plagiarism will be investigated and if found to have occurred will be dealt with according to the procedures set down by the College. Please see your student handbook for further details of what is /
isn’t
plagiarism.
)
Table of Contents
Task 1    3
1.0 Introduction to the concept of globalisation.    3
1.1 An analysis of the key drivers of globalisation (P1)    3
2.0 An explanation on the complexity of strategic challenges faced by global businesses (P2)    4
2.1 A critical analysis on the strategic challenges caused by globalisation on risk, diversification strategies and supply chain (M2)    6
2.2 A critical evaluation of the global business environment (D1)    7
Task 2    8
3.0 (a) An evaluation of the influences of globalisation on organisational governance and leadership (Part of P3)    8
b) An evaluation of the influences of globalisation on organisational structure (Part of P3)    8
c) An evaluation of the influences of globalisation on organisational culture (Part of P3)    8
d) An evaluation of the influences of globalisation on organisational functions (Part of P3)    9
3.1 a) An evaluation of the influences of ethics on organisational functions (Part of P4)    9
b) An evaluation of the influences of global sustainability on organisational function (Part of P4)    9
3. 2 (a) Application of McKinsey 7S Model on organisational structure in case the of Shell Plc (Part of M3)    9
b) Application of Hofstede's Cultural Dimensions theory in the case of Shell Plc (Part of M3)    10
4.0 (a) An evaluation of different ways decision making can work effectively in a global context (P5)    11
(b) Ways (strategies) to enter global markets (P6)    11
(c) A critical evaluation of the key barriers to globalisation and recommendations to overcome them.(P6 & M4)    12
(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)    13
References    15
Task 1
1.0 Introduction to the concept of globalisation.
Globalisation as a concept is simply the integration of the world as one. Countries and their economies around the globe are becoming interdependent on each other. Globalisation has also integrated the cultures and politics of countries around the world. Political, social and economics are the three areas of global interactions. These three areas of any country are heavily influenced by global interaction and exposure. Countries now a day cooperate worldwide. It is necessary to have policies that support the cause of a global organisation.
Political policies are expected to be in the best interest of one’s country without compromising that of a foreign country. Society has become connected through the internet and social media. Social norms and ideas are transported through the world (Kasemsap, 2018). The concept of social globalisation has however been criticised for the erasure of individual cultures. The dependence of economics lies on the fact that no country is truly isolated. Trade deals and the spread of technologies and resources leave economies entangled with one another. The globe has become a single pool of existence. This global openness has brought a wide spread of ideas, people and technologies. This movement of goods and services around the world is accessible due to globalisation.
1.1 An analysis of the key drivers of globalisation (P1)
There is a reason that the growth of globalisation has been possible in this era. Multiple factors have contributed to the growth of this global organisation. The contribution of science and technology is the biggest. Advancement in technology has resulted in the whole world coming to one’s fingertips. According to Tallman et al. (2018), it expands the process and is the biggest driving force of globalisation. Technology has allowed for connectivity and coordination that has in turn resulted in an easy movement of goods and services. Improvement technology has made people dependent on it. The only challenges it has posed the access to technological knowledge and the access to technology itself. This challenge is normally faced by the less developed regions of the world. The lack of such resources leaves these regions semi-isolated from the rest of the world.
The easy movement of goods and services can also be accredited to several governmental policies. Political policies then also become a driving factor for globalisation. Considerable trade laws and foreign policies have led to easier transport of goods. Big corporations rely on government policies to get access to any country. Without flexible laws and political policies, it would be impossible for international businesses to penetrate different countries. A good standard of politics in a country also makes it desirable for big businesses. Big corporations would always choose countries with flexible trade laws. They would often not prefer places with political chaos. Therefore, it would not be an overreach to say that good political policies are one of the major driving forces of globalisation. As mentioned above technology has connected the world together. This connectedness has also brought in an exchange of cultures.
The exchange and integration of culture has made the world desire and demand for similar things (Bedianashvili, 2016). This has created a market for similar goods. These similar goods are consumed by a large amount of people. Famous American fast food chain restaurants operating all across the world are a clear example of this driving factor. The only criticism that this faces is the erasure of distinctive cultures. Critics often call the assimilation of culture into one global culture as the erasure of individual culture and ethnicity. However, this has led to mutual interest in the world and this mutual interest has led to an equally mutual and global trade.
This reciprocal trade has resulted in another driving force of globalisation that is the lower cost of shipping. Low costs of shipping and easy communication has contributed to the growth of globalisation. This has made access goods from far away countries easy and low prices. However, these low priced goods create overproduction for profit maximisation. The possibility of such low priced goods creates a lot of competition among companies. This can often lead to unhealthy and unethical practices in the process of production.
A global business and economic dependency has helped many developing countries to industrialise themselves. This gradual industrialisation of developing countries has also become an important contribution to globalisation. With industrialisation, there has come a need for more resources and capital leading these developing countries to strike even more trade friendly deals with other countries (Shageeva et al. 2017). Industrialisation though helpful for development has often caused massive environmental misdemeanours.
2.0 An explanation on the complexity of strategic challenges faced by global businesses (P2)
Functioning as a global corporation has its benefits but it also brings about certain challenges to the corporations. A stead plan and process is always needed for global success. When going global a corporation always has to overcome the challenge of selecting the right country to branch out in. It is very important to choose a country after well-done research. It should be researched and analysed if the expansion in the country would lead to profit or not. Recently the US shale operations by the Royal Dutch Shell (Shell Plc) brought immense loss to the company because they had failed to conduct thorough research and analysis about the regions of operations. The political and economic situations are the most important factors when choosing a country to expand in (Mikkilä et al. 2016). It would not be beneficial for any corporation to expand in a country with political unrest and economic devastation. An unfortunate example of this, would be when, Shell Plc had been accused of theft and oil pilferage in Nigeria. Even though the organisation had been operating in Nigeria since 1958, the political unrest in the country over oil had caused such allegations. This caused Shell Plc huge losses.
After choosing the country of expansion, one has also to overcome the challenge of the literal physical distance. Though technology has made communication, extremely easy, certain situations do require a physical presence. There needs to be a personal involvement with distribution partners and business prospects. Branching out also brings in the difficulty of human resources. To expand in a new area one must build a new team (Trad, 2019). A completely new team of people must be hired and trusted. This might become an additional investment. Although this is a necessary investment, a bad hiring process has also been pointed out some of the minor causes for the Nigeria issue for Shell Plc. A group of trusted employees would be expected to form a dependable rapport with the local public and politicians. However, that was not the case here.
Lastly, corporations when branching out internationally often face the difficulty of an unfamiliar culture. If this...