A STUDY BASED ON GLOBAL
BUSINESS ENVIRONEMNT- CASE
STUDY BASED ON DILMAH TEA
1
,Table of Contents
1.0 Introduction ....................................................................................................................................... 3
1.2 Overview of Dilmah Tea.................................................................................................................... 3
1.2.1 South Korea and Tea market ....................................................................................................... 4
1.3 Globalisation ..................................................................................................................................... 4
1.4 Influence of Globalisation on Culture................................................................................................. 4
1.4.1 Hofstede’s Cultural Dimension ................................................................................................... 5
1.5 Influence of globalisation on structure ............................................................................................... 8
1.5.1 Mckinsey’s 7s Model .................................................................................................................. 9
1.6 Influence of Globalisation on leadership and corporate governance .................................................. 12
1.7 Organisational functions in Dilmah .................................................................................................. 13
1.8 Influence of Ethical and sustainable globalisation on Dilmah ........................................................... 14
1.9 Different ways of decision making in Global context ....................................................................... 15
1.10 Routes to internationalization and barriers for international trade upon decision making and strategy
.............................................................................................................................................................. 17
1.11 Conclusion..................................................................................................................................... 20
References............................................................................................................................................. 21
2
, 1.0 Introduction
Globalisation can be defined as the spread of products, data, information, technology and jobs
across country borders and cultures (Aslam, 2018). Moreover, in economic terms it can be defined
as an interdependence of nations around the world fostered through free trade (Sherman, 2018).
The purpose of this study is to make a magazine article with the theme of “Influences on structure
and strategy of organisations” to evaluate the influences of global presence on organisations.
Therefore, author has been selected Dilmah Tea as the organisation where they are willing to
exporting their branded Tea to the South Korean market. First author will Evaluate the influences
of globalisation on organisational governance and leadership, structure, culture and functions by
using different models like Mckinsey’s 7S model and Hofstede’s cultural dimension. Next author
will evaluate the influences of ethical and sustainable globalisation on organisational functions
and then he will evaluate the different ways decision making can work effectively in a global
context. Finally, author will evaluate the key barriers in doing business internationally and make
recommendations on how they can be overcome.
1.2 Overview of Dilmah Tea
Dilmah is a Sri Lankan tea brand which is founded by Merrill J Fernando in 1988. Dilmah is
recognised in globally because of its’ championed quality, authenticity and variety in tea (Dilmah,
2020). Moreover, Dilmah pioneered the concept of Single Origin Tea in 1988.is a famous
international tea brand which is available in 100 countries including japan, New Zealand,
Australia, Russia, Turkey, Hungary, Canada, UK, Poland, Pakistan, United States, South Africa,
Indonesia, Chile. Estonia and Lithuania (Dilmah, 2019). Moreover, In 2009 Dilmah was
recognised as the sixth-largest tea brand in the world. Later, Dilmah exported the tea to New
Zealand, where its’s currently the top-selling brand and also to North America and Europe
(Dilmah, 2019). Moving on, Today Australian market makes up 10% of Dilmah's global annual
retail sales. In September 2019 Ceylon Tea Services, Dilmah's parent company earned 6.2 US
million dollars with a US$29.7 million dollars in revenue and also which was up from profits of
3.3 million US dollars, on 28.6 US million dollars in revenue in 2018 (Dilmah, 2019).
3
BUSINESS ENVIRONEMNT- CASE
STUDY BASED ON DILMAH TEA
1
,Table of Contents
1.0 Introduction ....................................................................................................................................... 3
1.2 Overview of Dilmah Tea.................................................................................................................... 3
1.2.1 South Korea and Tea market ....................................................................................................... 4
1.3 Globalisation ..................................................................................................................................... 4
1.4 Influence of Globalisation on Culture................................................................................................. 4
1.4.1 Hofstede’s Cultural Dimension ................................................................................................... 5
1.5 Influence of globalisation on structure ............................................................................................... 8
1.5.1 Mckinsey’s 7s Model .................................................................................................................. 9
1.6 Influence of Globalisation on leadership and corporate governance .................................................. 12
1.7 Organisational functions in Dilmah .................................................................................................. 13
1.8 Influence of Ethical and sustainable globalisation on Dilmah ........................................................... 14
1.9 Different ways of decision making in Global context ....................................................................... 15
1.10 Routes to internationalization and barriers for international trade upon decision making and strategy
.............................................................................................................................................................. 17
1.11 Conclusion..................................................................................................................................... 20
References............................................................................................................................................. 21
2
, 1.0 Introduction
Globalisation can be defined as the spread of products, data, information, technology and jobs
across country borders and cultures (Aslam, 2018). Moreover, in economic terms it can be defined
as an interdependence of nations around the world fostered through free trade (Sherman, 2018).
The purpose of this study is to make a magazine article with the theme of “Influences on structure
and strategy of organisations” to evaluate the influences of global presence on organisations.
Therefore, author has been selected Dilmah Tea as the organisation where they are willing to
exporting their branded Tea to the South Korean market. First author will Evaluate the influences
of globalisation on organisational governance and leadership, structure, culture and functions by
using different models like Mckinsey’s 7S model and Hofstede’s cultural dimension. Next author
will evaluate the influences of ethical and sustainable globalisation on organisational functions
and then he will evaluate the different ways decision making can work effectively in a global
context. Finally, author will evaluate the key barriers in doing business internationally and make
recommendations on how they can be overcome.
1.2 Overview of Dilmah Tea
Dilmah is a Sri Lankan tea brand which is founded by Merrill J Fernando in 1988. Dilmah is
recognised in globally because of its’ championed quality, authenticity and variety in tea (Dilmah,
2020). Moreover, Dilmah pioneered the concept of Single Origin Tea in 1988.is a famous
international tea brand which is available in 100 countries including japan, New Zealand,
Australia, Russia, Turkey, Hungary, Canada, UK, Poland, Pakistan, United States, South Africa,
Indonesia, Chile. Estonia and Lithuania (Dilmah, 2019). Moreover, In 2009 Dilmah was
recognised as the sixth-largest tea brand in the world. Later, Dilmah exported the tea to New
Zealand, where its’s currently the top-selling brand and also to North America and Europe
(Dilmah, 2019). Moving on, Today Australian market makes up 10% of Dilmah's global annual
retail sales. In September 2019 Ceylon Tea Services, Dilmah's parent company earned 6.2 US
million dollars with a US$29.7 million dollars in revenue and also which was up from profits of
3.3 million US dollars, on 28.6 US million dollars in revenue in 2018 (Dilmah, 2019).
3
