Global Business Environment: Key Factors, Challenges, and Recommendations

This presentation on Global Business Environment covers the concept of globalization, Pestle analysis, key driving factors of globalisation, impact of digital technology, challenges and complexities globalisation brings to an organisation, and recommendations on how challenges can be overcome. It also includes references for further reading.

Global Business Environment

TABLE OF CONTENTS
• INTRODUCTION
• Introduction to the concept of globalization
Pestle Analysis
• Key driving factors of globalisation
• Impact of digital Technology on Globalisation
• Evaluation of challenges and complexities globalisation brings to an organisation.
• Recommendations on how challenges can be overcome
• CONCLUSION
• REFERENCES

INTRODUCTION
• Business environment is considered to be
the sum total of all the various factors
which are available in the external
environment of the organisation and that
has a great influence on the functioning
of the Business.

INTRODUCTION TO THE CONCEPT OF GLOBALIZATION
• Globalisation: In reference to globalisation,
it basically involves the development of the
various economic sector across the world.
• It basically indicates the flow and trade of
economy in the global market which
supports in establishing strong economic
image in the world. In addition to that, it
maximizes profits and returns for the
services and goods.

PESTLE ANALYSIS
• In context to Pestle analysis, it
basically refers to the identification of
various macro environment factors
including economical, environmental,
technological, legal and social factors.
• Moreover, it helps the company to
take decisions properly and each
company uses these tools for the
purpose to identify the risk factors
which could affect the company.

CONTINUE
• Political Factors: In reference to government policies, it could basically
result in affecting the company. It comprises of various factors such as
environmental laws, tax policies, stability, foreign trade policies etc.
• In reference to SASOL, the political stability plays a very important role as
the oil and gas sector plays a major role in revenues. In context to SASOL,
it is basically located in South Africa where political stability could be
seen which is considered as the positive factor for the organization. Trade
policies and Tax policies of Africa allows the company to expand their
business internationally through controlling unfavourable costs.

CONTINUE
• Social Factors: In reference to these
factors, it basically states the
influence of the social environment of
the country.
• Also the attitudes and beliefs of
individuals basically determine the
society. The social factors basically
comprises of health measures,
income distribution, cultural barriers,
growth rate and age distribution.

KEY DRIVING FACTORS OF GLOBALISATION
• In reference to these factors, it basically
removes the hurdles or barriers for the
business trade across the borders.
• In addition to that, it basically increases
the interdependence, interconnectivity
and integrity. It basically comprises of
micro and macro factors which could
affect the business operations.

CONTINUE
• Political Drivers: Deregulation in policies and
laws like tariffs could help and support the
company in enhancing profits and cutting down
costs. These introduced latest developments for
the smooth working globally.
• These drivers basically supports the company in
international marketing in a effective and efficient
manner. This also makes the company developing
strong policies as per the demand of the business
which contributes in development of the company.

IMPACT OF DIGITAL TECHNOLOGY ON GLOBALISATION
• The concept of digital technology plays a very important role in the business sector and
also allows the company to have a interaction with each other on a single platform within
a certain time limit. The technologies generally transform the manual activities and
upgrade the operations to digital activities all over the world.
• The technological changes helps the company in overcoming the different difficulties
such as trade barriers, delay in transportation, lack of punctuality, transfer of unethical
data and much more.

EVALUATION OF CHALLENGES AND COMPLEXITIES
GLOBALISATION BRINGS TO AN ORGANISATION.
• In reference to these hurdles, it basically
affects the functions and operations
which are typically known as challenges.
• These basically occur due to working
culture. It is very problematic to balance
human resource, operations and capital
at the same time at new place.

CONTINUE
• Currency Exchange and Inflation Rates: In reference to Change in inflation rates in
various countries it could lead to change in rate of raw material, production costs and
labour costs which have direct relation with the services and price of different products.
• Before the expansion of the company’s operations, it is important that the company
should properly learn about the exchange rate as per the country’s currency rate. In
reference to SASOL, the company faces different issues due to inflation rates because the
economy of South Africa was not in stable condition as compared to other countries.

RECOMMENDATIONS ON HOW CHALLENGES CAN BE OVERCOME
• In reference to challenges, these are basically the part of business environment but the
company can take various actions for the purpose to control the complexities and
different challenges.
• The organizations can hire capable managers who know how to handle the situations in
international markets. Below are few of the recommendations are discussed below to
overcome the challenges in a effective manner.

CONCLUSION
• From the above report, it can be concluded that global business environment plays a very
important role in the organization. The above discussion helps in brief understanding about
the different factors which helps in driving globalisation and helps in determining the
various strategic complexities that are associated with operations in the global environment.
• Moreover, it helps in brief understanding about how operations in a global market could
influences the functions, structure and culture of an organization. Furthermore, it helps in
understanding the impact and influence on the organizational decision making and strategies
which are required.

REFERENCES
• Kokodey, T., Gnezdova, I. and Lomachenko, T., 2018, October. Modeling the global business environment based on polycyclic theory. In The
International Science and Technology Conference" FarEastСon" (pp. 487-499). Springer, Cham.
• Bhagra, A. and Sharma, D.K., 2018. Changing paradigm of employability skills in the global business world: A review. IUP Journal of Soft
Skills, 12(2).
• Belyaeva, Z., 2018. Business environment challenges and trends for contemporary SMEs in Europe. The sustainable marketing concept in
European SMEs.
• Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University Press.
• Hans, V.B., 2019. Global Business and Cross-Cultural Diversity: Globalisation and Business Changes and Values. NOLEGEIN-Journal of
Global Marketing, 2(2), pp.18-31.