Global Business Environment: Concept of Globalization, PESTLE Analysis, Key Driving Factors, Challenges, Recommendations and Conclusion

This presentation covers the concept of globalization, PESTLE analysis, key driving factors, significant effect of digital technology, related challenges and complexities, recommendations and conclusion of the global business environment.

UNIT-18 GLOBAL BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
CONCEPT OF GLOBALIZATION
PESTLE ANALYSIS
KEY DRIVING FACTORS
SIGNIFICANT EFFECT OF DIGITAL TECHNOLOGY
RELATED CHALLENGES AND COMPLEXITIES
RECOMMENDATIONS
CONCLUSION

CONCEPT OF GLOBALISATION
1. Globalization simply means going global i.e., interacting and integrating with the entities, economies and
people throughout the world.
2. Such globalization or enhancement in the global interactions has led to increase in exchanging of the beliefs,
culture and the ideas which leads to growth and development of the international trade.
3. It is an economic process which essentially involves interaction of the social as well as cultural aspects of the
organization.
4. But, along with such social, cultural, beliefs, ideas, culture, etc. there are various disputes and international
diplomacies which also forms part of this history of globalization.

PESTLE ANALYSIS
PESTLE
Political Economic Social Technological Legal Environmental

KEY DRIVING FACTORS
FACTORS
Increased
Competition
Cost Factors of
Different
Countries
Environment
Factor Market Factor

SIGNIFICANT EFFECT OF DIGITAL TECHNOLOGY
 The growth and expansion of globalisation is highly influenced by
technology.
 This influence is significant and also in positive manner. The technology has
helped the organisations to operate strongly in the dynamicity of the global
business environment.
 The main barriers to doing business globally that are time and place have
been overcome to a great extent through the introduction and utilization of
digital technology.

RELATED CHALLENGES AND COMPLEXITIES
There are various challenges that are faced by the companies because of globalization
along with the advantages of it.
 International Recruiting – International Recruiting is a major task for the
companies having its operations globally. This problem is highly because of the
unawareness of the company with respect to the needs and expectations of Human
Resource in different countries. Market Demand knowledge also play a major role
in formulation of plans to hire people. Further culture differences and barriers to
language are the other elements that creates increasing complexities to this
challenge.

RECOMMENDATIONS
 It is recommended to SASOL that the company to research completely the market
it wants to capture completely and evaluate all the significant factors before making
any kind of decision to enter.
 Having a good market research will help the company in countering of all the
obstacles, challenges and complexities and earn high profits.
 Having complete insights will help the company to take a correct decision and
ensure its competitive edge in the international market.

CONCLUSION
 On the basis of the in depth and elaborative study of the above report on the global
business environment it can be effectively said that this global business
environment is full of challenges, issues, opportunities and threats to the
organizations operating in such environment.
 Thus, careful and effective study of such environment is very necessary to be able
to deal with these issues, challenges and threats and also take advantage of these
opportunities to gain an effective competitive advantage in this market over the
other competitors or rivals with an aim to build and maintain a strong brand image,
goodwill and market presence.

Thank you