Global Business Environment: Key Factors, Challenges, and Strategies

This report analyzes the key factors of cost, market, environment, and competition in the global business environment. It also explores the strategic challenges faced by organizations and evaluates the influences of globalization on organizational governance. The report includes a case study of SASOL, an organization that provides integrated energy and chemical services. The report recommends strategies for SASOL to overcome challenges and diversify its supply chain.

Global Business
Environment

Table of Contents
PART – 1 ........................................................................................................................................3
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
TASK 1 ...........................................................................................................................................3
Analysing the key factors of cost, market, environment and competition.............................3
Critically analysing the impact that key factors of global business environment..................4
TASK 2 ...........................................................................................................................................5
Explaining the complexity of strategic challenges faced by organisations............................5
Evaluating strategic challenges in context of risk and diversification strategies...................8
Critically evaluating the global business environment...........................................................8
CONCLUSION................................................................................................................................8
PART – 2 ........................................................................................................................................9
TASK 3 ...........................................................................................................................................9
Evaluating the influences of globalisation on organisational governance.............................9
Evaluating the influences of ethical and sustainable globalisation......................................11
Critically evaluating influences of globalisation..................................................................11
TASK 4 .........................................................................................................................................12
Evaluating different ways decision making can work effectively in a global context.........12
Determining various routes to internationalisation an organisation may adopt...................13
Critically evaluating the key barriers in doing business internationally..............................14
Critically strategising that can be adopted by organisations operating in a global business
environment..........................................................................................................................14
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................15

PART – 1
INTRODUCTION
Globalisation is the process which includes various independencies. It generally address
all the culture, economies and various types of goods and services. There is the interaction
between various people which have different backgrounds and cultures. The multiple trade
policies is been analysed in order to enhance the business operations in different regions. The
report aims to analyse about understanding the effective policies of global business environment.
SASOL is the organisation which aims to provide the integrated energy and chemical services.
The organisation is headquartered in South Africa Cape town. It was founded in 1950 they have
carried out their operations in multiple regions. In this report there will be brief discussion about
the key factors which help the organisation to drive towards the global trade operations. It is
important for the organisation to check whether with the help of pestle analysis model. The
organisation could evaluate the market forces in an effective manner and achieve great results in
the future. There are various challenges which will help to study the evaluating market forces.
MAIN BODY
TASK 1
Analysing the key factors of cost, market, environment and competition
Globalisation is the process which helps the organisation to carry out multiple trade
practices in order to enhance the business relations in an effective manner. There are various
factors which could drives the organisation towards success in the future. There are various
factors which is been related to the global trade practices is been mentioned below:
 Cost – It is one of the most important factor that can affect the business operations of the
company while expanding their business in different regions. The organisation needs to
bear various types of cost. They can implement new transitions and funds with the help of
investors in order to achieve new heights in the business. In context to SASOL the
management has taken the wise decisions which will help them to analyse the cost of the
products effectively. There are multiple benefits which could be taken by the company in
the market. The demand of the SASOL products and services is generally rising which

will help them to enhance the overall sales volume in the market. They can also attract
new audience and enhance the profitability in the new regions.
 Market – The business environment is generally dynamic and it keeps on changing with
the new conditions. Due to globalisation the organisation could enhance their business
operations. It is important for the organisation to attain maximum customer satisfaction
by providing quality products and services. In relation SASOL the organisation generally
focuses on becoming more customer oriented to provide the services. They have found
the potential of various new individuals and able to create the value customer base in this
new era of digitalisation. SASOL is becoming one of the market leaders due to their
ethical practices and services.
 Environment – There are various new forces which can affect the business operations
and the company needs to enhance the profitability by implementing new strategies and
achieve the desired goals and objectives in the market. With the changing market
conditions the main responsibility of SASOL is to reduce the wastage and use the
resources in a significant manner. They can work and operate various things properly to
achieve great results in the market.
 Competition – Most of the organisations which is been working in the market have
several competitors. They need to identify the evaluating market forces and use the new
technology to gain the edge over other individuals. In relation to SASOL they need to
focus on various things and provide the essential services in order to gain competitive
advantage in the market.
 Digital Technology – The technology could help the organisation to attain success in the
market. The organisation needs to update with the new technology in their premises in
order to become more competitive with the new conditions of the market. With the new
era of digitalisation there are new trade practices which needs to be carried out properly
to help the company with new sources and use the new practices to attract new audience
in industry.
Critically analysing the impact that key factors of global business environment
The business environment is certainly dynamic and there various sources which could
affect the business operations. The leaders needs to enhance their vision with the new ideas and
strategies in order to gain competitive advantage and keep the track of all the activities which

could create the major difference for the company. There is the sudden rise in the competition for
SASOL they could focus on different things in order to provide the quality goods and services to
customers which is present in the market. SASOL needs to analyse the evolving competition in
the market and take the suitable cations in order to attain the growth in the market.
The Global market has certain threats which needs to be evaluated in a proper manner.
The organisation needs to overcome different challenges in an effective manner and enrich the
new competencies which is been revolving in the market. SASOL needs to enhance their scale
over certain activities. They need to provide the products according to the needs and wants. This
will facilitate them to attain the systematic global expansion in the desired region.
TASK 2
Explaining the complexity of strategic challenges faced by organisations
To analyse the challenges the pestle analysis in relation to SASOL is been mentioned
below:
 Political Factors – The business organisation needs to evaluate the political factors and
there are various practices which needs to be formulated by the government and the
nation. The political factors also needs to be analysed by SASOL. It is the organisation
which is been following all the rules and regulations. The organisation has started their
business operations to provide employment to various individuals. The political condition
of that region is certainly stable and they can attain great results in the market. It is one of
the major task for the organisation to maintain and follow all the policies in an effective
manner.
 Economic factors – There are certain factors which includes the employment rate,
inflation rate and the demand and supply of various goods and services. In the Covid 19
pandemic there are certain problems which is been arise for the organisation like SASOL.
The business management is been affected by various levels of management. There are
various challenges which could be faced by them and needs to be controlled with the new
changing market conditions. SASOL needs to provide the quality products and they need
to enhance their value chain system in order to fulfil the demand and supply of products
for the customers.

 Social factors – The social factors includes the needs and wants of the customers. There
are various beliefs which can is been adopted by most of the organisation. With the
changing dynamics the organisation needs to fulfil the demands of the customers.
SASOL has to understand the dynamic conditions of the market and they can provide
various benefits to the employees which will help them to carry out the operations in a
significant manner. The position of the organisation could also been enhanced with the
new and changing market scenario.
 Technological factors – With the changing technology most of the companies are
heavily investing in the technology to attain better results in the market. There is the
research which needs to be conducted by the organisation and with the help of the
technology they can improve the areas in which they are lacking. SASOL has been
adopted the new era of digitalisation and which will help them yo gain focus on
identifying the needs of the customers which can be fulfilled in an effective manner.
SASOL can overcome the new challenges which will help them to enhance the overall
profitability of the firm in industry.
 Legal factors – There are various laws which is been regulating in the market. The
government of each regions is introducing new laws and put certain restrictions on the
business operations on the company. The organisation needs to follow these laws and use
several factors to create the major advantage over other firms. SASOL has certainly
promote equality in the workplace. This has created major new options for the company.
The employees of SASOL works with the quality and dedicated towards various things.
This will help them to attain the desired goals in the market. There are multiple laws and
practices which is been implemented on the organisation.
 Environmental factors – With the changing marketing conditions the organisation needs
to adopt to the new corporate social responsibility and reduce the use of the chemicals
which is been polluting the environment. There is the positive brand integrity which
could be established by them in the market. SASOL works on recycling the waste and
reduce the carbon emissions in order to attain sustainability in the market.
There are multiple challenges which can faced by the organisation is been described below:
 Cultural barriers – It is seen that the culture is being different in various nations. There
are multiple policies, norms and values which is been established by the organisation.

There are cultural issues which is been faced by the organisation the values needs to be
adopted by the organisation and help them to gain focus on productivity of the
workplace. The languages of the countries and different from one another and the
organisation needs to evaluate the cause of various things in a significant manner.
 High investment – There is high investment which needs to be attained by the
organisation while starting their business operations in different regions. While
expanding their business in multiple regions the infrastructure needs to be developed, and
high investment which could be used by the firm to enhance the overall practices in the
market.
Recommendations
 The organisation to evaluate the culture and background of the particular country in
which they are planning to expand the business and carry out the business repartitions in
an effective manner. With the help of effective culture they can provide the healthy
environment to the employees and attain more productivity in the workplace.
 It is important for the organisation to provide the right training to the employees. SASOL
needs to developed the new system in which they focus on building new things and the
employees needs to improve their overall skills and capabilities. This will help them to
gain the new and better results in the future.
 The organisation needs to analyse all bear all the expenses and make the budget. SASOL
needs to develop the relationship with new investors and shareholders in order to enhance
their business operations in the market.
 SASOL could also evaluate the marketing conditions and they can use the new
technological tools to do proper research and gain the effective position in the market.
The organisation needs to engage more number of customers and use the technology
advancements to fulfil the essential needs of the customers. It is beneficial for the form to
attain success in the market.
 SASOL needs to follow all the general rules and regulations which is been adopted by the
organisation. They can carry out the operations at a rapid pace and fulfil the demands of
the customers. There is effective connection which is been established with the
stakeholders to gain the necessary investment for the development of new products and
services.

Evaluating strategic challenges in context of risk and diversification strategies
SASOL needs to capitalise on multiple opportunities they need to analyse the challenges
in a proper manner. With the start of their journey there are certain factors which includes
political, natural disaster and the supply chain management. These are the big problems for the
organisation which is in the market. The company needs to diversify their supply chain and
become more formative towards various things. They need to maintain the healthy relationship
with the suppliers. This will help them to become more strategic in every manner. With the new
era of globalisation SASOL needs to enhance the adversary factors make the strategic decisions
making process to gain the desired results in the market. Supply chain management is the
important part it can also enhance the overall effectively of the organisation. They can offer
better services to the customers.
Critically evaluating the global business environment
There are various factors which can affect the business operations of the organisation in
the market. There is the proper research which needs to be analysed by the firm in order to take
the benefits of the new opportunities. The pestle framework will certainly help the organisation
to identify different factors. SASOL can fulfil the additions requirements of the customers and
become more superior in the market. The areas could be improved with the help of pestle
analysis. They can formulate different strategies and bring new viability in the workplace.
CONCLUSION
From the above report, it has been analysed that the organisation needs to understand the
evolving forces of the market and use the new techniques to offer the quality goods and services
to customers. On the other hand, there is evaluation about the Pestle framework through which
the organisation can plan their operations for the future objectives.
PART – 2
TASK 3
Evaluating the influences of globalisation on organisational governance
In this working environment the organisation needs to increase their overall in order to
gain competitive advantage and enhance the performance in the market. There is the new era of
globalisation which help the company to achieve success. They just need to provide the quality

services and goods to customers. The organisational culture is been influenced by the culture and
structure of the organisation (Nudurupati, Garengo, and Bititci, 2021). There is the interaction
between different cultures which influence the company's growth over a period of time. It is
important for SASOL to analyse the culture, structure, leadership and governance. There is the
impact of the glocalisation which could help the company to transform their ideology. The
Mckinsey’s model is been used to analyse the internal factors of the organisation which is been
described below:
McKinsey’s 7S framework
It is the model which is been used by the organisation in order to evaluate the
organisational design and enhance their performance in the market. SASOL needs to analyse the
elements in this new era of globalisation. The internal factors is been mentioned below:
Hard elements
 Structure – It is the first element in which the organisational performance is enhanced
with the new upliftment in the structure. There are multiple responsibilities which is been
distributed in the chain of command. This will help the firm to maintain the regulatory
structure in the workplace and they are able to carry out the work duties and
responsibilities in an effective manner. It is been evaluated that due to various operational
changes the organisation is been facing different challenges. SASOL needs to enhance
the business structure by improving their weak spots with the implementation of new
strategies and methods (Tunay, Yüksel, and Tunay, 2019). This will also help the
company to improve their presence in different regions and improve the overall sales in
the market.
 Strategy – It is essential factor for the organisation they need to formulate the business
plan in order to attain the desired goals and objectives in the market. In relation to
SASOL there is evident need making the long term strategy which could help the firm to
achieve the targets in every year specifically. SASOL needs to accelerate their
performance by collaborating with the new shareholders and business individuals. This
will help them to maintain the growth in the market and achieve great profitability.
 System – It regulates the business infrastructure of the organisation which will help the
company to implement the new workflows and make the desired decisions for the
company. SASOL carry out their operations effectively by implementing the new

business values. There are new systems which will help the firm to attain the
organisational goals and objectives.
Soft Elements
 Skill – There are various competencies which will help the firm to improve the skills and
capabilities of the organisation. The organisation can use the assets which can help them
to gain competitive advantage and help the company to attain growth in the market. It is
important for SASOL they need to implement the new reward system which will help the
employees to improve the productivity of the workplace. There are various employees
which will help to make more skilled in every manner.
 Shared Values – There are various objectives and mission which is been made by the
company it could achieved by attaining towards the values and ethics in the workplace
(Halbert, and Ingulli, 2020). SASOL needs to become more ethical and become more
sustainable towards various things in a significant manner.
 Style – It is been identified that the organisation needs to works with the positive style in
which they are able to enhance the performance of the organisation. SASOL management
is experienced enough to formulate differ net decisions which relates to help them attain
growth in the market and the company can achieve the desired goals and objectives in the
market.
 Staff – The human resource management of SASOL hires the skilled employees which
help the company to achieve the goals and objectives in industry and make them more
competitive towards various things.
Evaluating the influences of ethical and sustainable globalisation
In this new era of industrialisation the organisation needs to fulfil the corporate social
responsibility in which the companies needs to preserve the environment and achieve great
growth in market. There are various chemicals which is been harmful for the nature and it can
impact the environment in a negative manner. They needs to become more ethical and
sustainable towards various things and attain more profitability. SASOL needs to focus on the
new marketing conditions which will generally help the firm to attain the desired objectives and
goals in the market. In relation to SASOL they need to identify the ethical practices which will
help them to perform various functions in an effectively. In relation to SASOL they need to
identify different functions which is been mentioned below:

 Human Resource department – SASOL human resource department has faced various
challenges due to the new era of globalisation (Kotabe, and Helsen, 2022). There are
multiple discrimination and inequality which is been challenged by most of the
individuals. The company is not being successful in relating the employees. This is the
major disadvantage for the organisation which they want to solve in an effective manner.
 Finance department – The organisation needs to improve the financial department they
need to perform the functions in a better way. They need to become more ethical in carry
out the new practices and attain the goals in the market. The financial department of
SASOL needs to make the appropriate budgets of different activities in a systematic way
by analysing all the factors which can affect their performance.
 Sales and Marketing Department – The sales and marketing department are the
important aspect of the organisation. They need to provide the superior products and
services to the customers (Soumitra, Lanvin, and Wunsch-Vincent, 2020). The sales and
marketing department of SASOL needs to become more work oriented and capitalise on
different opportunities.
Critically evaluating influences of globalisation
From the above, discussion is has been evaluated that the globalisation can impact the
company's growth culture and structure in a positive way. It is essential for SASOL they need to
implement the effective process or model which provides them right assistance in the future
objectives and goals (Goxe, and Belhoste, 2019). In relation the SASOL the hofstede model can
help them in an effective manner which is been described below:
 Power Distance – It is the index which shows that hows much power and inequality is
been taken into consideration in the workplace. SASOL needs to make their workplace
more friendly and positive towards different individuals. This will help them to expand
the business in multiple regions.
 Individualism and communities – This is the factor which tells about the groups which
is been integrated with each other.
 Masculinity and trade role – It is the factor in which the society gives the preference to
the individuals on the basis of their gender. SASOL needs to provide equal opportunities
to every individual regardless of their gender.

 Tolerance and ambiguity – SASOL needs to identify that how much tolerance needs to
be evaluated in the country.
 Long-term orientation – This is the factor which considers the society views on the
basis of time horizon. It is important for SASOL to implement new values in the business
to attain the growth in the market.
 Indulgence and quick gratification – It is crucial for SASOL to identify the new
implications in the market and achieve great growth in different regions in an effective
manner.
TASK 4
Evaluating different ways decision making can work effectively in a global context
Decision making is one of the most important factor which can help the form to take the
viable decisions through which they are able to attain growth in the market. There are multiple
decisions which includes the transportation and managing different activities could help the firm
to perform better in different conditions. SASOL needs to become more competitive and
implement new strategies to focus on providing the quality products to the customers(Liu, and
Yang, 2019). The decisions will help them target the new audience and enhance the overall sales
in the market.
It requires the efforts for the organisation to take the best decisions and attain the growth
in the market. The organisation needs to become more productive in every manner and creates
new viability with the changing conditions. SASOL needs to minimise the use of the harmful
chemicals and reduce the carbon emissions. The organisation needs to make the strategies by
evaluating different forces of the environment (Belas, and et.al 2019). The decision making
strategies is been described below:
 Proactive decision-making – This is the approach which will help the organisation to
make the effective decisions for the firm. They can focus on multiple aspects and
improve the areas in a significant manner. The problems of SASOL can be solved with
the help of utilisation of the resources to gain the necessary advantage over various
things.
 Reactive decision-making – The decision making process is complex in every manner.
There is the intensive pressure and the workload on the organisation of SASOL. They

need to overlap various activities and become better with the new working conditions in
the market.
It has been evaluated that the organisation management needs to strategically think of various
decisions which can help them gain momentum towards new things (Buckley, 2021). SASOL
needs to become much more effective with their way of carrying out the operations.
Determining various routes to internationalisation an organisation may adopt
International marketing is complex and there are various channels which could be used
by the company in order to enhance the effectiveness of the firm in the market. There are various
ways through which SASOL can enter in the international market which is been as follows:
 Licensing – It is the type of agreement which needs to be indulged in the organisation.
SASOL needs to do franchising of their products and services. They need to do market
reseracrh provide the quality products to the customers.
 International agents and distributors – It is the effective way which will help the firm
to enter into international market scenario (Ebneyamini, and Bandarian, 2018). There are
various deals which is been required in order to successfully enter into the new marketing
conditions.
 Joint ventures – This is the concept which will help SASOL to indulge in the
partnerships and enhance their business operations in the market.
Barriers to internationalization
 Financial barriers – Investment is one of the most important factor to enhance the
business operations in different regions. There are multiple funding activities which can
be evaluated by the organisation in order to enhance the sales in the target market.
 Managerial and market based barriers – SASOL needs to resolve the issues of their
workplace in which they are not able to retain the employees. They need to provide the
best working opportunities to every individual.
 Industry-specific barrier – This is the complex issue which is been imposed on various
industries. The organisation needs to work in an effectively.
Critically evaluating the key barriers in doing business internationally
There are various barriers which is been imposed on the organisation in order to become
more viable with the new trade practices. The barriers includes the financial crisis, lack of
infrastructure, which is certainly been affecting the industry (Khan, and Ebner, 2019). The

organisation needs to enhance their overall issues and this will help them to become more
profitable with the new marketing conditions.
Critically strategising that can be adopted by organisations operating in a global business
environment
There are various strategies which is been implemented by the firm in this new era of
globalisation They need to focus on becoming more better with the new working conditions of
the market. SASOL limited needs to adopt to the new technology which could help them to gain
focus and solve various cultural issues in regards to attain the benefits at the international
marketing conditions (Hacioglu, 2019). There are multiple creative ideas which needs to be
adopted by SASOL in an effective manner.
CONCLUSION
From the above report, it has been analysed that the organisation needs to analyse
different conditions and do a lot of strategic planning which will help them competitive
advantage. There are various challenges which needs to be overcome with the new effective
methods and the process. On the other hand, in this report there are multiple barriers which can
affect the organisational goals and objectives in the market. Along with that, there are new routes
through which the organisation can successfully entre in the international market. For further
instance, There is the effective decision making process which needs to be implement by the
workplace to attain profitability in the desired industry.

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