Global Business Environment - Analysis, Impact, Challenges & Evaluation

This presentation focuses on the analysis of key factors of cost, market, competition that drive global commerce and trade, critical analysis of the impact of key factors, complexity of strategic challenges, evaluation of strategic challenges, critical evaluation of the global business environment, and conclusion. Sasol Limited, an integrated energy and chemical company based in Sandton, South Africa, has been selected for specific focus. The presentation highlights the importance of assessing the impact of key factors for taking strategic and important decisions related to the future.

Global Business
Environment

Table of Contents
 Introduction
 Analysis of key factors of cost, market, competition that drive
global commerce and trade
 Critical analysis of the impact of key factors
 Complexity of Strategic challenges
 Evaluation of Strategic challenges
 Critical evaluation of the global business environment
 Conclusion
 References

Introduction
Global Business Environment refers to the influence created by the
different types of factors on the Business Operations of a particular
organisation. For this presentation, Sasol Limited has been
selected. It is an integrated energy and chemical company which is
based in Sandton, South Africa. In this presentation, a detailed and
specific focus will be made on it and the way it creates an impact
on the organisations.

Analysis of key factors of cost, market, competition that drive
global commerce and trade
There are various types of factors which drive Globalisation. It is quite important
and crucial that they can be assessed quite properly and appropriately so that the
best decisions can be taken highly effectively and efficiently which will be quite
helpful in the attainment of the goals and objectives in the future. Therefore, it is
highly important that the detailed analysis of these particular factors can be done
which will help the organizations a lot in taking of important decisions. The
analysis of key factors can be done in the following manner-
•International economic integration- It is an important factor which is required
to be given proper and appropriate consideration.
•Socio-cultural convergence- Due to the easy access to information through the
online newspapers and social media, the people are losing their 'cultural identity'.

Continued...
• Global education providers- They are getting
popular because they provide quality education to
the people who require it.
• Cross-border political influence- This is
growing nowadays which is creating an impact on
the relations between the countries.
• Financial liberalisation- The interconnection
between the countries is increasing due to
deregulation of the financial markets.
• Intense competition- There is an increase in the
level of competition which is creating an impact
on the different types of organisations

Continued...• Increased international
business and trade-
Increased international
business and trade has led
towards ensuring that the
appropriate management of
different types of needs and
requirements can be carried
out.
• Need for economies of
scale- This is quite an
important factor which has
to be given due
consideration.

Critical analysis of the impact of key factors
The key factors create a high-level of impact on the organisations.
Thus it becomes highly essential that the right and appropriate
decisions can be taken by them which will therefore help them a lot.
For an organisation like Sasol Limited it is necessary and important
to make sure that the impact of these key factors can be assessed for
taking of decisions in the future. In this way, the organisation will be
able to manage its particular needs and requirements.

Complexity of Strategic challenges
There are various types of strategic challenges which are faced by
Sasol Limited faces:
•Company's structure- This is an important challenge which has to be given
appropriate and proper consideration.
•Foreign laws- The Foreign laws are required to be considered by the
organisations who are going to operate internationally because this will help
them in ensuring that they are able to enhance their profitability level.
•Accounting- It is also a major challenge because the Accounting practices are
required to be given proper and appropriate consideration so that the
presentation of the Financial Information can be done effectively.
•Liability to pay taxes- It is a crucial challenge which has to be given
appropriate consideration.

Continued...
• Payment methods- The Payment methods which are adopted in
the countries differ from each other.
• Fluctuation in currency rates- It is one of the major challenges
concerning International Business.
• Cultural Differences- It is also a major challenge concerning
International Business. In the context of Sasol Limited, it is very
crucial that the assessment of this challenge can be carried out.

Evaluation of strategic challenges
It is necessary that the evaluation of the strategic challenges can be
carried out which can be useful in the management of the essential
needs and requirements can be done. For Sasol Limited, it is quite
crucial that it is able to make sure that through their evaluation the
decisions which are important can be taken. This will be useful in
ensuring that the management of the essential needs and
requirements can be done in a proper and appropriate manner.

Critical evaluation of the global business
environment
Global Business Environment is quite ever-changing and dynamic
in nature. Therefore, it has to be made sure that its impact should
be assessed properly for taking strategic and important decisions
which are related with the future. In the context of Sasol Limited, it
is necessary that the identification of the way in which it creates a
strong impact should be done so that the necessary decisions can be
taken as per the different types of needs and requirements.

Conclusion
From the above presentation, it can be concluded that Global
Business Environment refers to the influence of a wide range of
factors on the Businesses which can therefore affect them a lot.
Therefore, it can be stated that the assessment of these particular
factors is quite essential and should be done so that the better
decisions can be taken highly effectively and efficiently in a proper
and appropriate manner.

References
Akpan, I. J., Soopramanien, D. and Kwak, D. H., 2020. Cutting-edge
technologies for small business and innovation in the era of COVID-19
global health pandemic. Journal of Small Business & Entrepreneurship.
pp.1-11.
Akpan, I. J., Udoh, E. A. P. and Adebisi, B., 2020. Small business awareness
and adoption of state-of-the-art technologies in emerging and
developing markets, and lessons from the COVID-19 pandemic.
Journal of Small Business & Entrepreneurship. pp.1-18.