GLOBAL BUSINESS ENVIROMENT

Global Business
Environment
Table of Contents

INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Analysis of various key factors of cost, environment, market and competition which drive
global trade and commerce..........................................................................................................3
TASK 2............................................................................................................................................5
P2 Explain the complexity of strategic challenges faced by organisations when operating in a
global environment supported by specific examples...................................................................5
TASK 3............................................................................................................................................6
P3 Evaluation of influences of globalisation on organisational governance and leadership,
structure, culture and their functions...........................................................................................6
P4 Evaluate impact of ethical and sustainable globalisation on organisational functions..........9
TASK 4..........................................................................................................................................10
P5 Evaluation of different ways of decision making in a global context..................................10
P6 Determine various routes used by companies for internationalisation an organisation,
including key barriers................................................................................................................11
CONCLUSION..............................................................................................................................12
REFRENCES.................................................................................................................................13

INTRODUCTION
Global business environment refers to an environment in which different countries
collaborate with one other to formulate a frequent decision for development of economy of world
(Alkhafaji and Nelson, 2013). This will assist in bringing dependency of each nation on each
other for making improvisations in an area and build up decisions for quick development.
SASOL Limited is taken into consideration which is fastest growing energy as well as chemical
organisation within South Africa. They have expanded their business into diverse developing and
developed nations such as Canada, Australia, Gabon and Mozambique for seeking further
expansion within other countries. This report will analyse key factors which leads to
globalisation, including strategic challenges which are related with the same. It will also aid to
determine how this concept may influence its organizational culture, structure and functions, as
well as its decision making.
TASK 1
P1 Analysis of various key factors of cost, environment, market and competition which drive
global trade and commerce
Within present competitive world, globalization refers to a concept which renders different
opportunities to organisations like information, services, technology, transfer of goods and many
other factors across the territorial boundary (Amran, Lee and Devi, 2014). This can be attained
by development of new strategies as well as modification within existent plan and policies.
Along with this, by the assistance of business expansion, organisation can enhance their
profitability as well as enhancement within living standards. With reference to SASOL Limited,
it is already mentioned that they have expanded their operations in different countries around the
world. But they are looking to further expand their operations in new market in unlike nations. In
this case, it is crucial for management to acknowledge different factors which are responsible for
driving process of globalization. They are illustrated below:
 Cost driver: With the assistance of high quality services, products can be accessed easily
within global market. This will lead SASOL Limited to acquire cost advantage within
market. Along with this, management team furnishes goods at high prices and acquire
economies within scale through assistance of outsourcing (Bititci, Cocca and Ates, 2016).

Also organisations can acquire more profit as cost of shipping is declining on customary
basis as supply of products is in bulk.
 Competition drivers: It is one of the crucial factors as there exists intense competition
among organisations due to globalisation. Along with this, with the assistance of FDI
(Foreign Direct Investment), SASOL Limited is enhancing their interdependence in
different countries continuously. This will aid, organisation to attain competitive edge
within market (Cheng, Green and Ko, 2014).
 Environment: It denotes surroundings in which business functions and operations are
carried out. Different environmental factors impacts working conditions of organisation
in both affirmative and pessimistic way. It is the factor with whose assistance
organisation can attain success within business environment by forcing organisation for
adoption of alterations as per requirements of technologies, legislations and laws of
different countries and many other factors.
 Market drivers: From past few years, there has been saturation within domestic market
which leads to international expansion for accumulation of opportunities. With respect to
SASOL Limited, organisation can acquire large number of opportunities through
expansion of their business at international market. For this, it is necessary for them to
scrutinize market trends and then render services as per demands (Coltman and et. al.,
2015). By furnishing products within new markets, selected organisation can attain
vantage as well as enhance sales by confining large marketplace.
Significant impact of digital technology
Digital technology is one of crucial factor which assist organisation to attain wide range
of opportunities within competitive market. It also leads to huge development within
organisation by enhancing communication, mobility, global level connectivity and many others.
As a result all these processes will aid SASOL Limited to bring innovation within their entire
working structure.
Thus, it can be concluded that all the mentioned elements will aid SASOL Limited to
expand their business operations effectively, innovatively and easily. Therefore, this organisation
needs to emphasise on various factors through which productivity can be enhanced at domestic
as well as international levels within market (Daley, 2012).