Submission Format:

Submission Format:

ASSIGNMENT information PLEASE READ:

The submission is in the form of an individual written report and individual presentation.
This should be written in a concise, formal business style using single spacing and font size 12.
You are required to make use of headings, paragraphs and subsections as appropriate, and all work must be supported with research and referenced using the Harvard referencing system.

4.The written report file must be saved in the format: student ID-GBE-Formative-A1
5.The recommended word limit is 2000 – 2500 words, +/- 10%, excluding the bibliography. Assignments which exceed the word limit will not be evaluated.
6.In case of case of extenuating situations, the relevant college policies shall apply.

Unit Learning Outcomes:

LO1 Analyse the key factors which drive globalisation
LO2 Determine the strategic complexitiesassociated with operating in a global environment

Assignment Briefand Guidance:

Theassignment must be done individually. You are expected to read the case and writean individual assignment on the “Drivers and Challenges for globalization”.
Thesuccessful completion of your work requires that you critically evaluatethe global business environment, including opportunities and challengesfaced by organizations like DBK Technitherm Ltd.

The ups and downs of manufacturing in Wales

Just under 20 percent ofemployees jobs in Wales are in manufacturing. This percentage is higher thanthat of the UK generally. However, manufacturing employment in Wales hasdiminished along with manufacturing jobs in the UK. Wales has seen plantsclose and existing plants have contracted workforce. At seven percent, Waleshas a higher rate of employment than other parts of the UK except thenortheast, and its GDP per head is about 80 percent of the national average.
Wales qualifies for theeconomic support from the European Commission, to bring greater prosperity tothe region. Some manufacturing firms have managed to succeed, and even growin the difficult competitive environment. DBK Technitherm Ltd of Wales manufacturesadvanced technology heating systems which are used in a wide range ofapplications, including white goods such as tumble dryers and hot plates usedin coffee machines.
In 2XX4, it received twolarge contracts, leading the management to increase the workforce by a fifth,to 120 workers. But rising oil prices and steel prices and rising interestrates added a 20 percent rise in costs in one year, which concerned theManaging Director. The company has been warned by its major steel supplier,the Anglo Dutch group Corous, that further rises are coming in the nearfuture. Steel is a key material in much manufacturing and economic growthwould be inconceivable without it. Surging demand for steel by the Chineseeconomy has led to rising global prices. For manufacturing businesses such asDBJ, rising costs are eroding margins. The company could even be making aloss on some of its products. The managing director says: “We are beingpushed on all sides: by customers, falling retail prices and cost ofcomponents from our suppliers. Rising steel and oil prices are affecting allbusinesses. Although the price of steel has doubled in three years, thislevel may fall as demand in China slows and its steel corporations, havinggrown rapidly in response to home demand.
However apart from thesecyclical factors, businesses in the EU are affected by employment protectionlegislation and high levels of taxation. In particular, the EU’s Working TimeDirective limits working hours to 40 hours a week. The effect of this mayraise the wage bill also, adding to operation costs. One of the concern ofthe company and other manufacturing businesses is the fact that is itsproducts may become unproductive in the international markets. Welshgovernmental authorities are committed to keeping manufacturing as asignificant share of employment in Wales. The success of technologicallyadvanced manufactures like DBK Technitherm is indicative of levels ofinnovation and skills in component manufacturing which will contribute toeconomic development.
References
Case taken from The International Business Environment, second edition (Palgrave, 2006), by Janet Morrison
Moules, J., “˜Dearer oil, steel and money turn the screw on UK businesses’, Financial Times, 15 May 2004;

Learning Outcomes and Assessment Criteria

LearningOutcome

Pass

Merit

Distinction

L0-1 Analyse the key factors that drive globalization

P1-Analyze key factors of cost, market, environment and competitionthat drive global commerce and trade

M1-Critically analyse the impact that key factors have upon theglobal business environment in terms of benefits and challenges

D1– Critically evaluate the global businessenvironment, including the opportunities and challenges faced byorganizations

L02- Determine the strategic complexities associated with operating ina global environment

P2– Explain the complexity of strategic challenges faced byorganisations when operating in a global environment supported by specificexamples.

M2-Critically analyse strategic challenges in context of risk and diversificationstrategies and the supply chain flow.

Students- PLEASE READ THIS PAGE CAREFULLY TO ENSURE YOU COVER WHAT IS REQUIREDTO SATISFY THE GRADE

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