Global Business Environment: Key Factors, Strategic Challenges, and Organizational Governance

Global Business
Environment

Table of Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
P1 Analyse key factor of cost, market, environment and competition that drive global
commerce and trade................................................................................................................3
M1 Critically analyse the
impact that key factors have upon the global business environment in terms of benefits and
challenges ..............................................................................................................................4
P2 Explain the complexity of strategic challenges faced by organisations when operating in
global environment supported by specific example...............................................................4
M2 Critically analyse strategic challenges in context of risk and diversification strategies and
the supply chain flow..............................................................................................................4
P3 Evaluate the influences of globalisation on organisational governance and
leadership,structure, culture and functions.............................................................................4
P4 Evaluate the influences of ethical and sustainable
globalisation on organisational functions..............................................................................4
M3 Critically evaluate global market influences in application to appropriate theories and
models relating to organisational structure and culture..........................................................4
P5 Evaluate the different ways decision making can work effectively in a global context...4
P6 Determine and articulate the various routes to internationalisation an organisation may
adopt, including key barriers..................................................................................................4
M4 Critically evaluate the key barriers in doing business internationally and make
recommendations on how they can be overcome...................................................................4
Recommendation ...................................................................................................................4
Conclusion.......................................................................................................................................4
References .......................................................................................................................................5

Introduction

The global business environment are the environment that differ in every sovereign
countries. It plays major role in influencing the decision making of organisations. To perform
effectively in the market companies completely rely on understanding the market scenario in
which they host their operations. Basically the mentioned environment classified into internal
and external environment that affects every business organisation operations (Ebneyamini, and
Bandarian, 2018). In relation to this SASOL which is a fast growing chemical and energy
company which is headquartered in Cape town, South Africa.
In this mentioned report several key factors of globalisation will be discussed. Further, some
strategic complexity will be evaluated that associated with company's operations in global
environment. In relation to this the influence of global environment on company structure,
culture and functions will also evaluate. At the last the impact of globalisation on discussed
company decision making and strategy will be highlight in the report.
Main Body
P1 Analyse key factor of cost, market, environment and competition that drive global commerce
and trade
Globalisation refers to the interconnectedness of businesses and people around the world.
It gives the advantage to interact with new culture and people in several region. Through the
globalisation businesses get the opportunity to expand their operations globally. It opens the new
market and challenges for business that willing to go internationally. Globalisation is a mixture
of political, social, cultural and legal phenomenon. Every business that performs in international
market consider these phenomenon to construct their business plan and structure to operate
smoothly.
In instance to above explanation of globalisation it is conclude that SASOL need to
focus on several phenomenon in order to expand its business operations in new territories across
the globe. There are several key factors that need to take into consideration that derive the global
commerce and trade;
 Cost- In the global market the mentioned company can get the advantage of cost
reduction on their functions. In developing countries the cost of labour and raw materials
are cheaper than in compare to developed countries. Hence, organisation can easily get
the advantage of cost reduction in their operations (Katiyar, Barua, and Meena, 2018).