Global Business Environment: Factors, Challenges, and Impacts on Organizational Functions

This report analyses the primary factors driving globalisation, the strategic challenges faced by companies operating in a global environment, and the impact of globalisation on organisational governance, leadership, structure, work culture, and function. It also explores sustainable and ethical globalisation on organisational functions.

Global Business
Environment

Table of Content.
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1Examine the key factor which drives Globalisation...........................................................1
P1 examine the main factors of market, cost, environment as well as competition which drives
global commerce or trade.............................................................................................................1
M1 Critically investigate the impacts of key factor upon the global business environment in
terms of benefits and challenges..................................................................................................2
TASK2 STRATEGIC COMPLEXITIES ASSOCIATED WITH THE OPERATION IN
GLOBAL ENVIRONMENT...........................................................................................................3
P2 Strategic challenges faced by company while operating in global environment ...................3
M2 Critical analysis of strategic challenges in terms of risk and diversification strategies and
supply chain.................................................................................................................................4
TASK 3. EVALUATION OF INFLUENCE OF ORGANISATION AT GLOBAL MARKET....4
P3 Evaluation of the impact of globalisation on organisational governance and leadership,
structure, work culture as well as function..................................................................................4
P4. Sustainable and Ethical globalisation on organisation’s functions........................................6
M3. Critical evaluation of the international market influences including theories or models in
relation to organisational culture and structure............................................................................6
TASK4 Evaluation of the globalisation influence on the organisational decision making and
strategy ............................................................................................................................................7
P5 Evaluation methods to enhance decision making .................................................................7
P6 Methods, ways and the challenges at the globalisation faced by an organisation..................7
M4. Recommendations to overcome the barriers at the international market.............................9
D2. Strategies adopted by the organisation and the justfication of recommendations of how
they should adapt their organisational structure and decision making process...........................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Globalisation is a process of things expansion which are produced at a specific place
across the other countries all over the world. All the activities of the organisation are expanding
along with the growth while in the process at international level are at maximum level. Sasol is a
fastest growing chemical company whose headquarter in Cape Town, South Africa. This project
report analyses some primary factor such as market, cost, business environment as well as
competition which drive global commerce along with global industry trade. The project also
gives brief introduction about the typical strategic challenges which are faced by an organisation
during internationalisation. Apart from this the project report also evaluate the impacts of
globalisation such as organisational culture, governance, leadership, structure as well function.
The project report also discussed on different evaluation technique in which the organisation
could purchase a chance to enhance their decision making at the global economy. Along with
that the project report discussed about different methods, processes or some different ways which
could be adopted by the organisation during the process of internationalism, barriers and some
challenge which are faced by the organisation
MAIN BODY
The online as well as the retail sales are growing all over the globe that will secure the
greatest opportunities for growth and development of Sasol and it could have the great potential
as it grows in a very short period o time. The organisation secures a huge extent of profit and
some challenges which could impact the growth and cost of the organisation across the globe
(Ahlstrom and et.al., 2020).
TASK 1Examine the key factor which drives Globalisation
P1 examine the main factors of market, cost, environment as well as competition which drives
global commerce or trade.
Globalisation is an online trade or commerce of a business like Sasol. There is need to
analyse or realise the cost, business environment as well as the competition in the external
market. The organisation is affected by many factors which are mentioned above. Hence it can
be evaluated that, in order to increase the benefits of the organisation some factors are needs to
be strategies such as:

Costs- according to domestic scenario, the organisation like Sasol, may get benefits from this
operation at very low level. Due to advancement in technology in sector of e-commerce will
guide the good service and products to the customer. The organisation will get through the this
due to having the use of advanced technology. The company use advanced technology in order to
produce products or services to the customer at low cost. The cheaper cost of the products or
services may lead to the expansion of the organisation across the globe (Abaver and Cishe.,
2018).
Market- the market across the globe gains a greater number of consumers as compare to
place at the same location. Within the domestic, the organisation could not sales the products at
great extent due to less amount of the buyers as well as derived at lower scales sales. Within the
global market, the strategy may be differentiated as well as customised and can be offered to
many groups of people which can be helpful in increasing the sales. Therefore, the globalisation
may creates a great opportunities for the Sasol in order to expand their chemical business and
provide their products or services to various culture or to different groups people.
Environment- the environment may impact the global market at huge level, it can be
assessed to Sasol such as extension of the organisation. The most dynamic reason for the
countries choice by the company is to increase the differentiation, strategies, policies and many
other things. The environmental factor may impact the scope for expanding the services or
products which are offered by Sasol. Hence, the strategic management may determine or
evaluate the potential environmental hazards on the operation of the organisational business
(Chan, Tetteh and Nani., 2022).
Competition- Sasol has to tackle their organisation because of intense competition all
over the globe as compared to domestic market. In the international market more or more
competitor is involved and they have greater capabilities as well as resources than the Sasol.
There is need to analyse the competition at the global market in order to face the competition
strongly.
Hence, some factors are need to be determine such as cost structure, market competition,
market structure as well as the market environment in order to know the scale or extent of global
trade or commercial output. Before the Internationalisation process, Sasol should have to
examine these factors (Lahiri, Mukherjee and Peng, M., 2020).

M1 Critically investigate the impacts of key factor upon the global business environment in
terms of benefits and challenges
The benefits of the global activities of the organisation may include scale economies,
technologies as well as amplification by using various number of their branches across multiple
nations. The exposure of the organisation to multiple economies would be beneficial for quick or
rapid management of the consumers (Abduh., 2018).
TASK2 STRATEGIC COMPLEXITIES ASSOCIATED WITH THE
OPERATION IN GLOBAL ENVIRONMENT
P2 Strategic challenges faced by company while operating in global environment
There are various strategic challenges which the organisation faced when operating at
global level such as entry fees, legal framework, socio-cultural difference as well as tough
management service.
Entry Fees- Sasol is one of the international organisations which export or exchange the
export fees with the local business entity for different franchising. These strategies sometimes
find difficulty while going on international business operation, as building a new franchise of
chemical company in different country for the work-based entity in the business operation is
difficult in setting. An organisation faced these challenges while operating as well as while
determining the benefits, challenges and getting equilibrium.
Legal framework- the other global challenges which an organisation faced when
operating the business at international level is to go and make a local or international business
operation and it may do through facing lot of challenge as well as some working factors within
the business environment. Sasol has started their working from different international boundaries
and clear their concept regarding the retail organisation act. It further manages their working or
examine the challenges from different perspective then make trade within the country. Apart
from these issues, the company is providing a broad level of legal framework as well as gain
knowledge which helps in examining or working systematically for the smooth operation (Noori
and Latifi., 2018).
Socio-Cultural Difference- this is one of the strategic challenges faced by the Sasol, in
order to manage their business to more than one foreign country with an effective manner. This
strategy helps in managing the work environment or cultural strategies according to the local

customer as well as customer-oriented business operation. this is the essential strategies in order
to look adorable organisation at the global level. This strategy helps the organisation for
managing the steps towards learning as well as helps in providing more training in effective as
well as in appropriate culture for operating the business country.
Tough Management service- these strategies are used in higher level implication which
will helps in managing the organisation as well as in making managerial complexities. There are
various concept or managerial complexities such as challenges in supervision, face to face
orientation growth at global business organisation. The use of effective organisation operation is
dependent on effective or manage the work for longer period of time to a long distance in order
to reach at global marketing in relation to banking regulatory. This strategy further helps in
complex business management while considering the growth in order to expand the business to
various countries (Schleder and et.al., 2019).
M2 Critical analysis of strategic challenges in terms of risk and diversification strategies and
supply chain.
The Sasol had experience different kind of risk in their organisation during global
expansion. This risk may be strategic or operative, in order to reducing this risk at global level
during expansion of an organisation, the organisation have to implement some different strategic
dimension. The organisation should have to plan it supply chain with detailed study of risk
within the international market (Baldassarre and et.al., 2019).
TASK 3. EVALUATION OF INFLUENCE OF ORGANISATION AT
GLOBAL MARKET
P3 Evaluation of the impact of globalisation on organisational governance and leadership,
structure, work culture as well as function
There are various external factor or internal factor of organisational environment such as
operation, work culture, issues, organisational structure as well as functions which influence the
organisation at global level.
Organisational Governance- the preceding corporate structure as well as the governance
can be beneficial in order to expand the business at the international market. The organisation
should have to improve their operating or governance strategic management. Some of the
activities or operation are performed by the organisation in order to keep new corporate structure

across the international market. The Sasol organisation is managed by their official as they are
governing the all activities of the organisation. In order to expand the activities of the
organisation, the manager and the owners has to take their authority or responsibility to manage
the activities of their branches all over the globe (Sharma, Adhikary and Borah., 2020).
Leadership- the people or management who are working under the organisation must
have high skilled knowledgeable as well as manner to compatible with the globalization market.
Sasol have more sophisticated workforce, people, customers as well as partners all over the globe
hence the leader of the Sasol organisation need to be more skilled or knowledgeable. They have
secured the knowledge or education about the current business environment as well as have
knowledge about the legal system of the foreign countries in which they are planning to expand
the organisation for business growth or development. Sasol easily get benefits by assessing the
leader’s requirement which are accurate for international market.
Structure of work culture- each factor of the international market may affect the
organisational operation. Therefore, the organisation should have to maintain the good cultural
learning as well as have ability to lead better work culture environment. In terms of benefits or
challenges these are the essential elements which have an important impact on global
organisation environment. Hence, it should be managed by the Sasol managers as well as the
advisors. They managed during the process of managing the knowledgeable project (Ainscow.,
2020).
The organisation leaderships are governed by the control board within the operation
phase executive as well as the monitoring operation phase. In order to reduce, delay as well as
deviate the expense, the Sasol organisation are working on some strategies which helps the
organisation to enter the international market by smooth or leverage methods. Sasol has a matrix
management hierarchy which are to be used at global operation at the marketplace from all over
the globe. The organisation may be affected by the regulatory framework.
Functional Behaviours- The Sasol functional behaviour is different than the function of
national and local marketplace. The local organisation is less focused towards the operation and
cultural performance than the Sasol organisation. The global companies’ function is focused
more on the local organisation. In order to take Business at the international level the Sasol
organisation mainly focused on some functions like export, import, foreign exchange process and
many more.

Therefore, Sasol organisation make an impact on the governance, risk function,
organisational structure as well as other factors of the company’s operations (Drempetic, Klein
and Zwergel., 2020).
P4. Sustainable and Ethical globalisation on organisation’s functions
The globalisation is the process of creating as well as transferring the global existence of
the organisation across the multiple countries of the world. The Globalisation process should
have to be more ethical, sustainable in better environment, people along with the organisation.
The ethical approach of the globalisation of Sasol would help in people welfare as well as
secure better environment for business while considering the business to expand to the global
market. The most consideration functions while taking the organisation to international market
are ethical and sustainability consideration as they are not harmful to the environment,
furthermore it helps in people welfare. Hence, the ethical consideration of globalisation will help
in better humanity, environment as well as various culture across the globe.
Whereas the sustainability consideration of the globalisation of the services and functions
of the banking will lead to improve goodwill along with the image of the company from its work
as well as their function. The services provided by the Sasol will focused more towards gaining
good or long-lasting positive impression as well as focused towards gaining more consumers.
Hence, the evaluation of the ethical as well as the sustainable environment globalisation function
is important to achieve for higher reputation, goodwill as well as maximum consumers (Vrontis
and et.al., 2021).
M3. Critical evaluation of the international market influences including theories or models in
relation to organisational culture and structure
The global business strategies may influence the structural image of the organisation
functions as well as the essential to reshape the structure or work environment of the business.
The organisation fundamentally uses ADKAR model in order for influencing or reshaping the
organisation. As these opportunities may garner the organisation at the international market. The
ADKAR model is stand for awareness, desire, knowledge, ability as well as the reinforcement.
This could help the organisation to work better at the international market. The organisation can
create the awareness within the manpower about their strategies in relation to reshaping the
process according to the need of global market. The organisation could take some
recommendation from their employees regarding the reshaping measures of the globalisation

necessity. The strategic management used reshaping methods, knowledge of changing as well as
some strategies in order to increase the profit of the organisation (Al-Henzab, Tarhini and
Obeidat., 2018).
TASK4 Evaluation of the globalisation influence on the organisational
decision making and strategy
P5 Evaluation methods to enhance decision making
Within the globalisation environment, any kind of business can become shophisticated as
comparison to the domestic marketplace environment. Hence, the decision making can be
variable according to the nature of the marketplace which can be discussed.
Major Decision- it is one of the democratic manner of decision making. In this the company take
decision regarding the operative as well as the strategic and it is based on the primary role in
decision process. One of the major opinion regarding the decision making is to get best
advantages from the whole process. Whereas the minor opinion regarding the decision making is
get the due respect for their contribution. Hence, the best decision making is the major opinion in
the decision process (Theurer and et.al., 2018).
Logical Thinking- in case the decision making initiated then the logical thinking and
critical appraisal of the decision are involves within the process. In the foreign market the logical
thinking has more scope in regarding the higher interest for chemical industries. The logical
thinking has great impact as well as play a vital role in enhacing the better decisions.
Expert Thinking- when the decision making is not viable from the logical or major
thinking then the expert thinking are used to determine within the decision process. Within the
global promotion as well as the operation of the employees, they are the expert drivers in the
global process.
P6 Methods, ways and the challenges at the globalisation faced by an organisation
Sasol can adopt the various routes or services in the globalisation. Some of the routes are
mentioned below:
Global Strategy- this methods may offer various kind of services regarding the chemical
industries like Sasol which has huge market preference and the interest at the international scale.
The main focus of the strategy while considering to globalisation is to provide the benefits to the
organisation at higher scale. Therefore, the standard products may focus on this strategy to

produce the goods or services at every place all over the globe. The strategy is facing somer
barriers as the cultural difference, perception about the individual as well as the available
resources.
Economies Scale- the higher number of the economists belief that the manufacturing
execution system has increasing in greater size, extent as well as the degree with the minimum
efforts. The manufacturing execution system is a frameworks data, algorithm which have
interfaces, screen as well as controls complex assembling frameworks as well as the information
regarding the streams on the production line floor. The main objectives of the manufacturing
execution system is to guarantee the compelling execution actvities regarding the production line
(Tien, Phu and Chi., 2019).
Transnational Strategy- from this strategy the organisation may focus on the generation
over the large services in order to keep the standards at the low cost structure. The cross-cultural
efficiencies may improve the organisation in better aspects in the process of the globalisation.
The human resource management performance as well as the latency performance are the
challenges strategies of the globalisation services.
International Strategy- this is the strategies which may focus on the import as well as the
export of the products or services of an organisation in context to expand the business to all over
the globe. The licencing, franchising along with the patenting are the medium of expansion the
organisation into the other nation.
Multinational Strategy- this strategy helps the organisation to expand their operation to
different nation with the same functional strategy. There are various types of barriers are faced
by the organisation such as communication issues, trust issues within the operational unit of the
organisation. This issues is arise while maintaining the another barriers of the organisation. Some
another barrier of the multinational strategy are legislation laws, cultures, political,
infrastructure, technology, software as well as the resources availability.
Barriers
Containerisation- when the Containerisation is used for the mass delivery, packaging of
products efficiency then the cost of shipping the products, services, trade with various means of
transportation like river, air, sea, rail and many more are decreased. The price drops within the
unit cost of the product delivery at the global market are usefull for the larger companies like
Sasol.

Technology- The rapid change in technology due to the innovation may impact the
business at global level as the cost of transmitting as well as the communication information is
reduced. The electronic signatures, corporates as well as the social marketing assist the
organisation to connect their empployees with meeting and conferences.
Difference in tax system- the main desires of the organisation is get an advantage from
lower cost production in order to provide the products or services at the lower prices to their
consumer. But there is need to focus on the quality of the products or services while calculating
the cost performance index in order to earn value or planned value (Schellenberg, Harker and
Jafari., 2018).
Openness to the international threats- the non tax guarantees may include import permits,
currencies, destructive market, terrorism and many other are the international threat to the
organisation like Sasol. The company should have to examine the impacts of its organisation as
well as the environment of the international market in order to get the chances for the growth and
development of the organisation at the various location.
M4. Recommendations to overcome the barriers at the international market
The observations and recommendations for the strategic management of the company is
that to look in-depth and whole function of the organisation. The primary barriers are identified
as containerisation, global tax difference as well as the technological division which affect the
chemical service of the industry across the globe. The recommendations are provided to the
organisation is to analyse their internal strengths or opportunities while considering to take the
organisation at the international level (Bastas and Liyanage., 2018).
D2. Strategies adopted by the organisation and the justfication of recommendations of how they
should adapt their organisational structure and decision making process
The organisation should have to adapt the opportunities from the use and analysis of the
internal strengths as well as the competencies within the international market. Sometime the
company should be centralised or decentralised their operation at the global level. Therefore, it is
essential to analyse the market or their customer's before considering to take the organisation at
the international level. It is also essential to grab the knowledge and information about the legal
or political environment (Benzaghta and et.al., 2021).

CONCLUSION
From the above project report, it is concluded that expansion of the organisation at the
international level may or may not brings the positive outcomes. The globalisation operation are
faced lot of challenges within the organisation at the global environment. The project report also
concluded some strategic decision, operational management which provide some option
regarding the expansion of the scope. The project report also concluded that from the planned or
designed strategy, the organisation get profit or sustainability at the globalisation.

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