Drivers and challenges for globalisation

This presentation discusses the drivers and challenges of globalisation. It explores the economic, political, technological, and market drivers of globalisation. It also discusses the impact of globalisation on businesses and the strategic direction they should take. The presentation concludes with recommendations for expanding business in the global market.

Drivers and challenges for globalisation
and Impact and Strategic Direction

Introduction
 Business environment is considered as sum total of factors which can be
internal or external that will impact on the business in both positive and
negative way (Liu and Wang, 2014).
 Some of the main benefits gains by company by adopting business
environment are increase in business, profitability, sustainability and so
on.

Globalisation
 Globalisation refers to a procedure related to
interaction and integration of peoples,
government and companies at the worldwide
level.
 Through this a firm able to gain numbers of
benefits like enhancement in profitability,
customer's base, market shares and so on.

Driving factors for globalisation
 Economic Integration: It is considered as agreement between the
countries at a geographic region in order to reduce and remove non tariff
as well as tariff barriers which help in free flow of products or services.
 Political drivers: It refers to change which occur in political factors of a
country which impact on the company business.
 Technological drivers: It is one of the major factors which impact on
company business operations and functions.

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 Market Drivers: If any change occur in market it directly impact on
business operations and functions. Such as if there will be increase in
saturation at market then it will lead to restrict growth of a company.
 Competitive drivers: In today's time competition is increasing day by day
so it is essential for a company to develop innovative products and
services which help in gaining competitive advancement.

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• Liberalization of Trade: It is defined as removal or minimization of
barriers on free exchange of goods and services among the nations. These
barriers will include tariffs like surcharges, duties, non tariffs barriers,
rules, quotas and many others.

Pest Analysis and strategic Challenges
 Political factor: The Sasol Limited is conducting its business operations
and functions at oil and gas industry at worldwide level due to which they
have to consider political situation of China so that they can develop
effective strategies.
 Economical factor: It is one of the main factors which impact on the
company and lead to strategic challenge. This factor also consider as route
map for firm which lead to growth and expansion of business.

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 Social factor: This factor considers lifestyle and standard of leaving of
society or population of specific country. This factor plays an essential
role in decision making because it provide framework that in which
society respective company may provide which product and at what price.
 Technological factor: It is one of the factors which change or develop on
continuous basis and it will provide support to companies in conducting
their business operation or manufacturing process easy.

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• Environment factor: There are several environmental issues which are
faced by China such as water and air pollution, deforestation, biodiversity
loss, climate change, industrial waste and so on.
• Legal factor: At China there are numbers of laws or regulations which
regulated employment as well as business practices.

Recommendations
 By analysing situation of Sasol Limited, there are some recommendations
for their management related to expanding business at China market.
 Like it is essential for company to conduct analysis of targeted market, so
that they can know challenges which they may face while conducting
business operations and functions internationally.

Conclusion
 By conducting analysis of above topics it can be conclude that
globalisation plays a vital role in growing business of a company because
it help them in gaining number of advantages.
 Like expanding customer’s base, productivity, cultural knowledge and so
on. For adopting this they need to conduct analysis of market through
different method such as PESTEL analysis (Political, social, economical,
technological, environmental and legal).

References
 Liu, S. and Wang, L., 2014. Understanding the impact of risks on
performance in internal and outsourced information technology projects:
The role of strategic importance. International Journal of Project
Management. 32(8). pp.1494-1510.
 Noble, B. and Nwanekezie, K., 2017. Conceptualizing strategic
environmental assessment: Principles, approaches and research
directions. Environmental Impact Assessment Review. 62. pp.165-173.

Thank You