Global Business Environment: Factors Driving Trade, Strategic Complexities, and Sustainable Factors

This report explores the factors driving global trade and commerce, strategic complexities faced by organizations, and sustainable factors in the global market. It also discusses decision-making methods and routes for internationalization. The report is based on SASOL, a chemicals-based company headquartered in Cape Town, South Africa.

UNIT-18
GLOBAL BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION .....................................................................................................................................3
1.) Define key ways of cost market, environment and competition that drive global trade and
commerce..........................................................................................................................................3
2.) Discuss strategic complexities faced by organisation with operation in global environment.......4
3.) Evaluate globalisation influence on business leadership, structure culture and function............5
4.) Define sustainable and ethical factors of globalisation in marketplace........................................6
5.) Define different ways of decision making that can work effectively.............................................7
6.) Determine various route for an organisation that relate to internationalisation involving
barriers..............................................................................................................................................8
CONCLUSION ........................................................................................................................................9
REFERENCES.........................................................................................................................................10

INTRODUCTION
Globalization is the most common way of putting the neighbourhood thing in the worldwide
spot through these off in worldwide organization of worldwide business and activities. In the
process every one of industry are doing work in a better way. Worldwide organisation facing
lots of difficulties and price of activity too. Global marketing, worldwide activity, feasible
proliferation and so forth are significant problems in worldwide working interaction (Aula,
and Mantere, 2020). This report is based on SASOL (it is a chemicals-based company,
headquarters in Cape town, South Africa. This report considers define factors that derive
globalisation and trade, complexities of facing strategic issues faced by SASOL, discuss
implication of globalisation on business, ethical and sustainable factors in global market,
distinctive ways of taking decision that can accomplish better work in world and several ways
of universalize that business adapt along with conflicts.
MAIN BODY
1.) Define key ways of surrounding, price of market and competition that drive universe trade
or commerce.
Proliferation refer to exchange of trade in an organization such as SASOL need to analyse
and understand the expense idea of such worldwide business activity which relate to natural
factors that the help offering, rivalry in respect to organisation players by which company
can take advantage from such worldwide tasks. In this way, following factors are to
investigations according to the methodologies.
 Cost:
This influences domestic ground; SASOL may not get benefit related to financial
purpose. The standing and specialized progression of the financial innovation will
lead to a diminished help offering to customer of chemical industry. Business will get
material that administration provides at a reasonable rate of the cost than a domestic
association that isn't broad its chemical product inrelation to public limit. The less
organise expense incentive may arise new development of financial activity.
 Market:
It refer to global market has more consumer wealth in comparison to homegrown
one. In domestic market, more important mangement deals are unnatural rather low
level of sales income because of less agreement (Carvalho and et. al., 2019). In
worldwide showcasing, strategy distinct and customised product can delivered to
fluctuated bunch of people . Along these lines, global marketplace is highly lovable
than homegrown area in banking. Various societies, pay for environment , and
innovation technology accessibility affect worldwide scale administration creation.
 Climate:
A natural effect is likewise having an extraordinary reflect on the extension of
business activity by the chemical company such as SASOL. Different regions and
provinces of the functional space of the organization on planet will motivate
organization to differential its administration grant according to the ecological and
strategic strategies. components of the natural effects will decide the extent of the

assistance given by organization like SASOL. In this way, the essential administration
has take probability of ecological danger.
 Competition:
SASOL has to face tough competition in universe operation of chemical industry than
domestic one. In term of world business, player have extreme resources and ability.
So, to become more competent by take competition challenges from universe players
of market.
2.) Discuss strategic complexities faced by organisation with operation in global
environment.
At the point when an organization considers growing its working past its geographical
area, then SASOL industry needs to go through different key challenges ranges from
financial to non-money related. Following are strategic issues that faced by company
 Entry fees:
SASOL can go to global activities by trading send out charges or franchising to the
neighbourhood business substance (Dima, 2018). The organization can likewise go to
international operations by building another branch in the expected nation as an
entirely possessed substance in the business tasks. This section choice will decide the
benefits and challenges balance of the essential choice of worldwide companies.
 Legitimate framework:
It refers to vast area of global business needs to undergo lots of neighbourhood and
worldwide laws and guidelines that decide the limits of the endeavours and work
lawfully. Staying away from and avoiding the general set of laws will bring issue in
business by which boundaries of effective business tasks of organization.
 Social intricacy:
It determine setup culture of business in its unfamiliar nations. In this way, the social
techniques need to be more nearby clients situated in the worldwide organisation
activity too (Gillespie and Swan, 2021). The need of the social similitudes is to be
more delightful in the business. Along these lines, mangement importance of
company should make shape up of learning and developing paths of life related to
working country. A SASOL reprentative ought to prepare about social legacies of
nations. That is reason behind industry require to make strides of advancing local
social direction.
 Intense administration:
It considers business consequences to comprehended by organizations by which they
have more administrative factors like physical supervision, heading up close and
personal direction in the worldwide business organization like SASOL. Simple
administration is preposterous because of long distances in between global parts of
chemical enterprise. Examination and evaluating activities are becoming complex
due to global activity of business. Thus, global business should find ways to work
and difficulties are to confront to expand organisation to opposite side of the nation.

3.) Evaluate globalisation influence on business leadership, structure culture and function.
Various associations have various objectives. As per variety of the goals of
governance, authority, culture and construction of the association changes (Hwang, Shan and
Looi, 2018). To assess influence of proliferation must have a reasonable points in terms of
opinion. Organisational structure determine to the system which helps business to decide its
line management, communications and distributes freedoms and obligations. SASOL is a
renowned development industry in South Africa. It can make preparation to participate in
universe commercialization. To determine implication of proliferation on SASOL authority,
structure, initiative and functions. For defining this Mckinsey 7S model. can used. This helps
to take insight by understanding 7 key elements which are as follows:
 Structure: An industry can select construction dependent on idea of business, what
are basic needs of clients and so on. Ecological elements are additionally thought of
while picking a structure for a business. An association needs to choose design so it
can without much of a stretch fit with the climate on which it's working just as help
business and client needs. In this way, when an organization like SASOL Limited is
going towards global markets than it requires structure that upholds its necessities in
general and client needs.
 Strategy: This is a blueprint that portrays how we contend in the commercial market
with our rivals. Methodology is the main components of an association. It should be
around the centre skills of SASOL Limited
 System: It refer to a of interrelated parts that is intended to accomplish something
specific. Systems is a piece of tasks movement that is identified with conveying
administrations to the client. SASOL Limited business cycle and frameworks is
exceptionally novel that successfully use the assets which will in general be to some
extent unused in past.
 Shared values: These qualities are guidelines or directing conduct that is for most
significant part accepted and basic in an association. It is an ideal conduct that is
normal structure employees when they are performing.
 Styles: This implies how a pioneer is driving his group. It characterizes relate to sorts
of leadership styles. Authority style impacts the conduct, execution and workplace
assurance as well. Pioneers ought to follow participative and strong authority styles.
As SASOL Limited is working worldwide then they might confront various
possibilities. In this case situational administration is the appropriate response and
they might take on it.
 Staff: This determine main capacities as they are driving the business to ultimate
achievement (Ilankoon and et. al., 2018). SASOL Limited should enlist appropriate
stuffs for legitimate position so that they could carry wanted accomplishment to them.
 Skills: It is important to have all specialized and related abilities to supervisors and
others stuffs. Management ought to foster the abilities of stuffs by demonstrating
legitimate preparing and development program

4.) Define sustainable and ethical factors of globalisation in marketplace.
It refer to certain course of action of moving and making worldwide position of item
and administration which create an implication on worldwide area (Nelson, 2018). The way
must be moral and maintainable one for advancement for the human kind and organisation
world.
Ethical ways
It define moral methodology of the globalization of chemical sector considers
advancement and government assistance for individuals alongwith industry climate as it
attempts to make new fields. A thought related ethics can move the organization by taking
sorts of tasks and business which are not terrible and destructive for general extent of
organisation environment. In this manner, moral methods of globalization will get the
improvement free from humanity.
Sustainable ways
Sustainable globalization of products and activity will lead to perfect picture of partnership in
respect quality and goodwill. An administration activities like SASOL can zero regarding to
its betterment and enduring implication on customer with goal that business can snatch
various number of clients. Consequently, the assessment of moral and maintainable
globalization is more significant for organizations. For defining these factors following
sustainability points are discuss in context of industry.
 Human resource: This plays a key role in organisation. The management department
of business are handled by human resource. This technique looks to empower
powerful conveyance of Sasol's. This can give a workplace that draws in, creates and
holds the best ability, advances a quality driven, elite execution culture, energizes
variety and change, and cultivates sound representative relations.
 Marketing: This technique is very important for business (Otenko and Parkhomenko,
2019). They aid to boost sales and a way to provide information to its customer. This
strategy derives an assessment need of worth of items for potential clients. The
estimating methodology of Sasol Limited may reduce on setting and rundown value,
credit terms, instalment limits or duration.
 Economic: A SASOL ltd. Focus on financial change has been pulled together to line
up with the common worth way to deal with coordinate all our mediations which
manage monetary consideration. Our point is to empower economic consideration and
access for private companies.
5.) Define several ways of make decision that can better work.
In a worldwide climate, any business can be more sophisticate than domestic
environment. In this way, the dynamic can be additionally variation in the nature which
perhaps like as below:
 Important decision:
It is popularity-based methods of dynamic where the industry can take employable
and key choice dependent on significant job by taking decision(Pandian and et. al.,
2018). The important assessment get best in entire cycle of dynamic. It minor way can

get due regard for their benefacation of dynamic effectiveness. In this way,
significant job for the best decision is respected best in the choice cycle.
 Logical reasoning:
At the point when any piece of dynamic cycle may not perfect for beat choice and
assessments of members may not be fruitful for more prominent premium of
financial organization, there is more extension for logical thinking of choice
interaction. Then, at that point, better choice radiates best effects.
 Master thinking:
At this point when choice isn't reasonable by major and intelligent think, the time
for master think will decide choice end. In worldwide advancement and activity of
workers are a specialist definitive think in worldwide dynamic process.
6.) Determine various route for an organisation that relate to internationalisation involving
barriers.
This course is alluded to worldwide market channels that associations use to go into
the global marketplace. There are various options channels A portion of courses to
internationalisation an association are given beneath.
 Licensing: This term permitting comprises of diversifying, turnkey contracts.
Authorizing states, the method involved with charging sovereignty for the
utilization of an association's image name or skill.
 Global Distributors: Worldwide specialists alluded as underlying advance to put
the foot into global market (Usunier, 2018). Specialists are an individual or an
enterprise contracted with an organization to address a particular country
addressing more than one organisation. Whereas distributors identified with idea
of specialists, they take responsibility for products unlike agents. They likewise
explicit motivating force on products.
 Strategic Alliances: It refer to partnership that states an arrangement between two
gatherings to provide resources to initiate an exact, commonly favourable plan. In
this entire cycle the organization stays autonomous. It must be lawful business
among the associations. It is less involved and less restricting than joint
endeavour.
 Joint Ventures: One more course to internationalization an association is Joint
Ventures. It's more equity-based and implies new company is set up with parties
having a level of organisation. It's one of renowned courses to internationalization
a business in worldwide market.
Barriers
There are many barriers of internationalization for industry. This may occur any stage of
process. Some of them are discuss below:
 Monetary Barriers: Basically, many small associations can face troubles in
worldwide market in regards to monetary and actual asset (Quintero-Angel and et.al.,
2018). Absence of wellsprings of money, lack of assets, uneven and unsure expense in

unfamiliar market, prohibited admittance to capital are not many instances of
monetary obstructions.
 Administrative Barriers: It refers to most of association that face administrative
hindrances in worldwide market. Such hindrances chiefly incorporate mentality and
practices of administrators, lacking of unfamiliar market and unofficial law
information and experience. Absence of abilities, levy and so forth in global market
additionally remember for this obstruction.
 Industry explicit Barriers: This is most significant hindrances that cause strain upon
global organizations in unfamiliar market. Contest with opponents in worldwide
market is an illustration of such hindrance. New and existing contenders impact the
inventory, request and substitute of items along these lines global associations think
that it is hard to contend in unfamiliar market.
CONCLUSION
From above analysis, it is conclude that an industry that works globally should be
cutthroat in a few viewpoints like utilizing trend setting development, quicker transportation
offices and most significant deals with a viable correspondence across globe. While working
universally endeavour desire to settle on a some choice relying for different time regions,
social angles including standards and several principles or guidelines of unfamiliar sector. At
the point when a business is dynamic instead of latent in commercial centre or industry steps
up to plate and make activities for occurrences as opposed to respond to them, this
association is making proactive decisions. Above analysis describe these points through
various factors. Working in worldwide market requires some extra factors to be considered in
the work cycle.

REFERENCES
Books and Journals
Aula, P. and Mantere, S., 2020. Strategic reputation management: Towards a company of
good. Routledge.
Carvalho, A.M., and et. al., 2019. Operational excellence, organisational culture and agility:
the missing link?. Total Quality Management & Business Excellence, 30(13-14),
pp.1495-1514.
Dima, A.M. ed., 2018. Doing business in Europe: Economic integration Processes, policies,
and the business environment. Springer.
Gillespie, K. and Swan, K.S., 2021. Global marketing. Routledge.
Hwang, B.G., Shan, M. and Looi, K.Y., 2018. Key constraints and mitigation strategies for
prefabricated prefinished volumetric construction. Journal of Cleaner
Production, 183, pp.183-193.
Ilankoon, I.M.S.K., and et. al., 2018. E-waste in the international context–A review of trade
flows, regulations, hazards, waste management strategies and technologies for value
recovery. Waste Management, 82, pp.258-275.
Nelson, J.A., 2018. Here be paradox: How global business leaders navigate change.
In Advances in global leadership. Emerald Publishing Limited.
Otenko, I. and Parkhomenko, N., 2019. Strategies of business systems development in
global environment. Scientific Annals of Economics and Business, 66(2), pp.153-166.
Pandian, J.D., and et. al., 2018. Prevention of stroke: a global perspective. The
Lancet, 392(10154), pp.1269-1278.
Usunier, J.C., 2018. Intercultural Business Negotiations: Deal-making Or Relationship
Building?. Routledge.