Global Business Environment

This report discusses the changes in the global business environment and their impacts on the information technology sector. It provides an introduction to the IT sector, specifies the changes in the global business environment, and analyzes them using the PESTEL model. The report concludes by emphasizing the importance of considering the business and environment for achieving organizational goals.

Global Business
Environment

Table of Contents
INTRODUCTION.................................................................................................................................3
Sector- Information technology.........................................................................................................3
Specify the change/s in the global business environment..................................................................3
What are the impacts on the sector/industry......................................................................................4
Analyse using Model/s......................................................................................................................4
CONCLUSION.....................................................................................................................................6
REFRENCES........................................................................................................................................7
Books & Journal:...............................................................................................................................7

INTRODUCTION
Market is changing due to external and internal environment factors at rapid scale. It
is important to understand the market situations and trends so that business activities are
carried out in appropriate manner. Global environment refers to environment in different
foreign countries affecting business sector and organisation decision making of using
resources or capabilities (Adekola, 2016). This report is basically based on information
technology sector. It is a sector which has been involved with the changing period of time.
This report comprises of introduction to the information technology sector, changes in the
global business environment, impacts on the sector, pestle analysis and SWOT analysis.
Sector- Information technology
With changing period of time, information technology sector has become one of the
fastest growing sectors in market and is being developing at rapid scale. The demand for IT
industry has been rising which increase their importance within a field and it creates ample
number of opportunities to individuals. Information technology sector comprises of using of
advanced software and tools, artificial intelligence, and many other technical skills as well as
capabilities. Moreover, in this field of information technology it offers large number of
products portfolio as well as services for both businesses and customers which are beneficial
for achieving objectives within a period of time in effective manner. In this competitive era,
the digital business has increased the importance of IT sector at higher level and every
company is interconnected with this field (Adeniran, 2020).
Specify the change/s in the global business environment
In business sector, changes are bound to occur with the high frequency and due to
both internal as well as external situations. It is important for industrial sector to be aware
about these changes which occurs within a global business environment so that decision-
making process is being carried out in most efficient way without facing any problem or
issue. Moreover they are very strangers that occur within a global business environment and
are discussed below-
Technological development- It is a big change within global business environment
as rise and use of internet has changed the technological sector which affects the business
development at deeper scale. For example- in emerging market trends situation artificial
intelligence and machine learning are the major developments with technological field and
are being focused by businesses to achieve higher growth. Also so this is activities are mostly
operating at social media platform throw using social media tools such as Facebook,
Instagram, YouTube and it helps businesses to gain consumer insights at larger level.
Emerging market growth- This is being also considered as a change in global
business environment as in this intensity of emerging market growth is at higher scale which
provides opportunities. Every country has different aspects of market on the basis of which
domestic and international businesses operate their functions as well as operations

accordingly by analysing different factors such as growth in a specific industry competition
level problems etc.
Changing in minds of individual- In global business environment election focuses
on fulfilling the needs of individual and customers. Due to increase of competition in market
individual expectations and changing this affects the overall structure. It is necessary for
enterprises to have an appropriate knowledge of specific needs of a specific individual for
target audience so that for the processes are carried out accordingly.
Therefore from the above matter it has been specified that changes within a global
business environment has a deep impact on overall organisational structure. So it is important
for marketers as well as entrepreneurs to conduct a proper market analysis to gain reliable
information regarding such changes (Ali, 2018).
What are the impacts on the sector/industry
In Information technology sector, it is important to aware about the changes so that
activities are carried out in proper manner. They are various impacts on the sector of global
environment which are discussed below-
 Resource scarcity- It is a major impact on IT sector has due to use of resources at
high intensity they are becoming rare and it is difficult for industry to cope up with
new challenges for situations. Moreover it is also seen that due to changes in global
business environment the prices of resources in different countries has been also
increased which negatively impact upon IT sector.
 New opportunities- As business activities are expanding at international level the
technological field is being provided with new opportunities within a same field such
as there are wide numbers of employment opportunities in the market.
 Increase in demand of innovation- It is impact on the information technology sector
as businesses are being operated at both domestic and international level the
increasing demand of innovation regarding product or services is affecting industry at
depth.
Therefore the above discussed paragraph shows that there are a number of impacts on the
IT sector which are needed to be focused and considered so that decision making in future
context undertaken appropriately (Alsarayrah, 2016).
Analyse using Model/s
PESTEL analysis
It is a framework or a tool which is used by enterprise with purpose of examining
external factors affecting overall organisation structure. It is important to determine external
factors so that changes within a business field are examined appropriately.
Political factors-

It is a component of a pastel in which it reflects the intervention of a government with
an economy. This factor comprises of environmental law labour law trade policies etc. The
political factor impacts on IT industry at large scale as because different countries have
various types of rules and regulations for it industries or businesses on the basis of which
software, hardware and other procedures are carried out in ethical way. Therefore, it is
difficult for IT industry to operate in an effective manner as it is a time consuming procedure.
Economical-
In this component it includes foreign exchange rates, inflation or deflation rate, and
many more. It is important to be aware about the sector as every country which is developing
their IT departments needs to focus on economic recession contract availability competition
etc. Through this, budgets are being prepared and accordingly resources related with IT
sectors are used which makes it easier for country and individual to manage work within a
timely period (Caiazza, 2017).
Social-
It is also and the element of framework in which it focuses on religion belief shared
values, etc. Due to increased use of internet and as people are more active on social media it
is easier for individuals to have a prepared knowledge about their rights at workplace.
Moreover they can also share their opinions and feedbacks on the social platforms with
different people.
Technological factor-
This comprises of use of advanced software and hardware, artificial intelligence,
machine learning etc. This sector has changed the life of people as now have smart devices
on the hand through which they can easily communicate with each other. Also resources of
IT sector are being used at work places which help them to manage and complete work
within a short period of interval (Cockburn, 2018).
Environmental factors-
This focuses on pollution weather change climate change green agenda etc. It is often
seen that these factors of environment also impact on IT sector at wider level because the
increased use of it tools as well as equipment has threatened the balance of environmental
which also affect the sustainability life of nature and people.
Legal factors-
It is also essential component of pencil framework as it comprises of agreements
contracts laws and legislations. As information technology sector is rising at larger scale, it
has become important to put a limit on use of software and hardware so that they are being
used under proper conditions of Government and law. It is also has been stated that most of
the crimes are carried out through using illegal activities on computers desktop or laptops.

Therefore the above explained model states that external factors affect me sector of
information technology and it is essential to focus on these impact so that positive outcomes
are achieved within chosen industry.
CONCLUSION
After a brief analysis of above report, it has been concluded that global business
environment is a wider and broader concept which is needed to be considered with the proper
conditions. Moreover this report gives brief information about information technology sector
and global business environment which are changing periodically. So, discussions have been
made about introduction to Information technology sector, changes in global business
environment, impacts on chosen industry and pestle framework. Therefore, it has been
imperative that it is necessary to focus on business and environment so that goals as well as
objectives are achieved in a most appropriate way.

REFRENCES
Books & Journal:
Adekola, 2016. Global business management: A cross-cultural perspective. Routledge.
Adeniran, 2020. Impact of information technology on strategic management in the banking
sector of Iraq. Insights into Regional Development,2(2), pp.592-601.
Ali, 2018. Development of an extended input-output model for evaluating the impacts of
information technology disruptions on interdependent economic sectors(Doctoral
dissertation, The George Washington University).
Alsarayrah, 2016. Factors Affecting Business to Business (B2B) E-Commerce (EC) Security
Systems Performance in Engineering, Electronic Industries and Information
Technology Sector in Amman. International Journal of Information, Business and
Management,8(3), p.131.
Caiazza, 2017. Cross‐border M&A: Challenges and opportunities in global business
environment. Thunderbird International Business Review,59(2), pp.147-151.
Cockburn, 2018. The impact of artificial intelligence on innovation(No. w24449). National
bureau of economic research.
Khajeheian, 2018. An introduction to competitiveness in fast changing business environment.
In Competitiveness in emerging markets(pp. 3-11). Springer, Cham.
Pai,V2017. Information Technology Sector.
Strzelczyk, 2017. Use of PESTEL Analysis for Assessing the Situation of Polish Transport
Enterprises (Part I). Zeszyty Naukowe Politechniki Częstochowskiej. Zarządzanie, (27,
t. 2), pp.161-168.
Turkyilmaz, 2019. A comprehensive construction and demolition waste management model
using PESTEL and 3R for construction companies operating in Central
Asia. Sustainability,11(6), p.1593.