Business Environment and Globalization

This presentation explores the concept of globalization, driving forces, PESTLE analysis of the macro environment, complexities of strategic challenges, and specific recommendations to overcome them in the business environment. It also discusses the importance of a positive and flexible business environment for global operations and expansion.

Business
environment

Content
 Introduction
 Concept of globalization
 Explain driving forces of globalization
 Describe PESTLE analysis of macro environment
 complexity of strategic challenges
 Facilitates specific recommendations to overcome from the
challenges
 Conclusion
 References

Introduction
Globalization creates large opportunities for businesses in less
industrialized countries to tap into large markets across
worldwide. It leads in increase competition related to the cost,
product, services, technologies as well as target market and
price. Positive and flexible business environment helps in
facilitating their operations at global level and expand or grow in
new markets.

Concept of Globalization
Globalization is a term used to portray expanding social, financial, and
political cooperation and interrelation crosswise over political and
social limits. It is the spread of items, innovation, data and
occupations crosswise over national fringes and societies. In
monetary terms, it portrays a reliance of countries around the world
cultivated through facilitated commerce. Globalization thought
processes are optimistic, however the advancement of a worldwide
free market has profited.

Explain driving forces of globalization
Several factors of globalization in the context of SASOL Limited are
described below:
Technological advancement: It is considered as a crucial factor of
globalization and it increases continuously has marked remarkable
improvements access in data as well as increase in economic activities.
Its improved communication network of SASOL limited which
facilitates the exchange of resources, goods and services, ideas and
location. This will result in economic growth in globalization.

Describe PESTLE analysis of macro
environment.
Political factor: These forces play an
important role in determining the
political policies and regulations
which can impact on the SASOL
Limited long-term profitability
and survival of company.

Complexities of strategic challenges
There are several challenges and issues of SASOL limited for
international business that are described below:
Company structure: SASOL limited consider as one of the effective
multinational business structures to organize business operations.
Despite the diverse international presence, the company and its
products controlled centrally and consistent around the world.

Evaluate the risk and diversification
strategies and supply chain flow
Supply chain diversification is high then a backup plan SASOL limited
need full range of trusted suppliers for increasing the flexibility of
operations and works. To getting the best supplier a company needs
to evaluate them with each other and focus on cost saving by choose
valuable person. Also, compare the performance matrix like ability
to meet the legal compliances, shipping times etc.

Facilitates specific recommendations to
overcome from the challenges
SASOL limited should understand the local laws and governance
where the company operates their operations. Company should
prefer exchange rate monitoring and forward contract as a strategy
for reducing the currency rates fluctuations barriers. The company
should make better political relationships and make planning and
development effectively. Also, the well-structured and controlled
functions and activities helps in overcoming from the challenges of
international marketplace.

Conclusion
It has been concluded from the above report that business
environment plays crucial role in globalization of an organization.
There are several factors that effects the company’s structure,
culture and governances as well as various challenges are faced by
the company while expand their operations globally.

References
Aithal, P. S., 2017. A critical study on Various Frameworks used to
analyse International Business and its Environment. International
Journal of Applied Engineering and Management Letters
(IJAEML). 1(2). pp.78-97.
Beck, U., 2018. What is globalization?. John Wiley & Sons.
Bernardi, S., Leippold, M. and Lohre, H., 2018. Maximum
diversification strategies along commodity risk factors. European
Financial Management. 24(1). pp.53-78.

Thank You