Global Business Environment of SASOL Limited
Added on 2021-02-21
13 Pages4104 Words206 Views
Global business environment
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11. An introduction concept of globalisation................................................................................12. Factors that drive globalization...............................................................................................23. Impact of digital technology on globalization........................................................................34. External environment analysis of the organization.................................................................35. Challenges for globalization...................................................................................................46.Recommendations to overcome challenges.............................................................................5TASK 2............................................................................................................................................61. Impact of globalization on organizational structures..............................................................62. Impact of global operation within the organization................................................................83. Ethical and sustainable factors................................................................................................84. Access how these Factors affect the decision-making............................................................95. Expansion routes for the organization.....................................................................................9CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
INTRODUCTIONGlobal market is reflected to the production and selling of capacities of each industry ofcountry across the world. The global business environment defined as environment in differentcountry with the factors of local environment of the organisation, which are influencing decisionmaking on resource use and capabilities. The present report will be based on “SASOL Limited”company which is fast growing energy and chemical company. The company has expended intothe different countries which are Canada, Gabon and Australia. The report will analysis keyfactors of cost, market, environment and competition drives of global commerce and trade. Studywill explain by the complexity of strategic challenges which are faced by organisation. It will beevaluate the influences of globalisation on organisational culture, structure and ethical orsustainable globalisation on organisational functions. This will evaluate by different ways ofdecision making and various routes to internationalisation an organisation may adopt includingkey barriers. TASK 11. An introduction concept of globalisation.In today's world globalization has become the common usage of expanding various typesof businesses. For some people it may be the world without any barriers and for others it may belike destruction of the world. Though there are various companies who are growing theirbusiness by entering in new markets which gives them benefits in their profitability andproductivity. Globalization has many benefits both to the societies and the organization as theyshare the economies by setting their profitable business in the country and also by sharing theirinformation, ideas, money, finance, goods and services. The main point of globalization isnetworking and connection between people and countries (Cavusgil and Knight, 2015). Theintegration of different countries depends upon the external environment of the company and thecountry where they operate globally such as political, economic, social and technological. Thereare many factors that drives globalization through trading goods and services, capital movementand transfer of finance. The trading of resources increases the productivity and profitability ofthe business and also help in developing the economies. In general, globalization increases thestandard of poor people and developing countries by giving opportunity to the unemployedpeople and provide the people with excellent goods and services. The corporation can reduce the1
operating cost by moving into the country where raw materials are cheap and reduce the tariffsand get interacted with new customers. Globalization is not a new concept, it has been used inancient times where traders travel across vast distances to sell their products but as the age ofindustrialization knocked into the 19th century and the trading become easier across borders withthe advancement in communication and transportation.2. Factors that drive globalization.The globalization success over the years brings the increase in economies of differentcountries, also increase the growth rates and GDP. The countries like China, Japan and Malaysiais known for the fastest growing GDP by giving opportunities to the foreign business to set uptheir business. The following are the factors that drives globalization which overall helps thebusiness and new market where the organization is going to operate globally. Technology – With the transformation in technology brings the globalization processeasier as the digital technology helps the business to trade their goods and services fasterand cheaper and also integrate the national markets. The business owner can expand theirnetwork with the help of internet and the technology has become the base of modernglobalization. Most of the business operate their business globally through internet anddigital technology. As the improvement in telecommunication and computing at a verylow cost made the globalization process very easier (Chatterjee, 2017). Therefore, theadvancement in of internet has become the main technological driver that started the e-commerce business.Political drivers – Due to the reduction in tariffs and barriers gave the opportunities tothe business to operate globally with lower cost and also the government also allowedforeign direct investments in many parts of the developing countries. World TradeOrganization is the latest example of development that drives globalization.Market drivers – The local market are becoming more competitive as compared to theglobal market by reducing the opportunities for growth. The demographic and geographicsituation also matters in the growth of business, so most of the organization prefer globalexpansion to come out of this situation.Cost drivers – The main aim of the business is to make efficiency and effectiveness inthe business by managing the productivity and profitability as the operating and2
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