Global Business Environment

Global Business
Environment

Table of Contents
PART 1 - Drivers and challenges for globalisation.........................................................................3
TASK 1............................................................................................................................................3
P1: An introduction to the concept of globalisation. ............................................................3
The significant impact of digital technology upon globalisation. .........................................4
Present a PEST/LE investigation of a organisation................................................................4
TASK 2............................................................................................................................................6
P2:State challenges of globalisation & important challenges for organisation. ....................6
PART 2 - Impact and Strategic Direction........................................................................................7
TASK 3............................................................................................................................................7
P3: An explanation of the culture, structure & governance ..................................................7
P4: Evaluation of various global operations & how the organisation is operating in the global
market.....................................................................................................................................9
An evaluation of ethical & sustainable factors for a organisation to be considered in the
changing global market. ......................................................................................................10
TASK 4..........................................................................................................................................11
P5: Assessment of how some of the factors can affect the process of decision making.....11
Evaluation of effectiveness of decision making process......................................................12
P6: Assess the strategic expansion routes and make a analysis both benefit and demerits. 14
CONCLUSION..............................................................................................................................16
REFERNCES.................................................................................................................................17

INTRODUCTION
Global business environment is a concept that is having relation with development of
understand if the external environment of business with the macro environment and its impact on
business. Present report is based on SASOL Limited that is a fast growing company that is based
in south Africa and now is willing to expand in Canada, Australia and Gabon. Report is based on
the discussion of basic concept of globalisation and the impact of changing digital technology.
There is use of PESTLE analysis to discuss the factors affecting organisation and various
strategic challenge that are part of organisation (Aithal, 2017). Further there has been application
of models like McKinsey 7s and hofstede's dimension help in understand the factors that are
influencing global operations of a organisation.
PART 1 - Drivers and challenges for globalisation
TASK 1
P1: An introduction to the concept of globalisation.
Globalisation is a concept that is related with developments that are part of changing
external environment. It is a process that takes place when there is exchange of culture that takes
place between different countries (Balli Pericoli and Pierucci, 2018). This is a process that takes
place when there is flow of goods & services across borders and is not limited to a single
domestic country.
Political view of globalisation related with how process are being considered and dealing
with political issues like sovereignty and impact of intergovernmental organisation. It is related
with the future challenges of globalisation and flow of regional governance, migration related
activities.
An explanation on the driving factors of globalisation.
There are some of the factors that are driving the objective of globalisation and these are
mentioned below:
Government: It is a main driver that leads towards reducing the trade barriers and a shift towards
a one market economy. There is more policies of trade liberalisation that is affecting the
reduction of restrictive policies like traffic 7 non tariff barriers.

Economics of scale: There has been cost benefit when production is expand it is helping
organisation to get advantages of lower production cost and outsourcing measures.
FDI: It has helped in increasing the overall interdependence among organisation and countries
there is more exposure to new competitors.
Above mentioned are some of the driving factors towards globalisation and making it
easy for organisation like SASOL to establish themselves successfully in other countries that is
Canada and Australia in present scenario (Althouse, Allan and Hartt, , 2016).
The significant impact of digital technology upon globalisation.
Advancements in technology have helped a great way in facilitation of the process of
globalisation. Technological progress is one of the major factors that are driving the process of
globalisation. Technological breakthroughs are compelling the business to be global and enhance
the process of economies of scale and overall market size ( BATAKA, 2020). In case of SASOL
Ltd. Digital technology will help in the process of facilitation of the source of raw materials and
various inputs. There is also use of patent technology so that there can be exploitation of foreign
markets without dealing with high competition scenario.
Use of digital technology has lead to conversion of available resources in the most effective
manner as there is requirements of very less financial resources to deal with the situation of
changing technology.
Present a PEST/LE investigation of a organisation
PESTLE analysis a great tool in developing a detail understand of the operating changes
that will be faced by this organisation and is part of external macro environment. It consist of
various competitive forces:
Political factors: There are some factors that are affecting long run profitability of a organisation.
It consist of political stability, military invasion risk, corruption level, trade regulations,
legislation wages, high taxation rates and increasing wage legislation are some of the crucial
requirements that have to be considered by SASOL in course of adopting the process of
globalisation and develop a detail view points so that there can be appropriate strategy
formulation to deal with such increasing challenges.