logo

Global Business Environment : SASOL ltd

   

Added on  2021-02-19

12 Pages4127 Words38 Views
GLOBALBUSINESSENVIRONMENT

INTRODUCTIONThe term global business environment is concerned with determining and exploring theenvironment of different countries. This involves factors which are endogenous to the domesticenvironment of the organisation that makes use of available resources and potential (Wood and.et. al., 2015).Thus, this will put emphasis on internal and external business environment of thecountry. Organisation undertaken in this report is SASOL limited which deals in energy andchemical sector. This is one of the fast growing company of the South Africa. This report willconcentrate on analysing the important factor which drives globalisation. It determines thestrategic complexities associated with operating in a global environment. It further measures theoperations of global market and its impact on structure, culture and functions of organisations.The last part of the report will evaluate the influence of globalisation on organisational decisionmaking strategy. TASK1P1. Important factors which drive global commerce and trade.The concept of globalisation is increasing at a rapid in present business world. This is theprocess through which the business enterprise are able to expand their businesses in the globalmarket. Therefore, globalisation refers to the integration of economies, societies which has thedirect impact on the exchange of information, ideas, goods, services, finances, technologies,workforce, etc. between different countries. Thus, with flow of all such resources, the companyis able to determine that whether the business expansion in the global market will be successfulfor the company or not. Through globalisation of business, the company is able to create the jobopportunities and advancement of technologies as well. The business organisations are pushed towards the globalisation of their business due tothe various reasons (Tregear, 2015). It includes various factors which will have positive impacton the company's operations and helps in driving the global commerce and trade. Therefore, thefollowing are the points discussed below which are considered as driving factors for globalcommerce and trade for the SASOL limited: Cost: This is one of the most crucial factor in the business organisation. The companyneeds cost for different purposes so that the business operations can be commencedproperly and effectively. The company concentrates on minimising the cost for the

business organisation. There are different types of cost like labour cost, material cost, etc.So, if the SASOL will find that the cost of labour in home country is expensive while inanother country like Mozambique the labor cost is much lower so the company willexpand the business there in order to experience the lower cost of labor. Furthermore, ifavailability of material in another country is at less price compared to the home countrythen this will also drive the business in the global market.Market: The market is the place where SASOL will be able to sale its goods andservices effectively and efficiently. If the SASOL will realize that the demand for theproducts produced by the company is more in another country so in order to minimize theimport duties, the company will focus on expanding the business into the new market.The market share and size will help the company in driving the business at global levelbecause the business enterprise which has huge market share at local market willexperience the good and positive impact with the help of globalization in global market.Environment: The business environment is focused towards identification and analysesof internal and external business factors. This will helps SASOL in determining thatwhether the environment is suitable and appropriate for the company or not. For instance,if there is less resources available or the political business environment is highly unstable,then the company will drives its business in the other countries.Competition: Every business exist in the market for the attainment of business goals andobjectives effectively and gaining the benefit of competitive business environment(Shenkar, Luo and Chi, 2014). So, if SASOL will realize that there is higher level ofcompetition in the home country which has limited the level of profitability for thecompany then the company will put interest in expansion of the business in the marketwhere there will be need for such products and and company will be able to deal withcompetition effectively and efficiently. For instance, if there are less substitutes availablefor the company in the global market then this will help the SASOL to attain thecompetitive advantage. Thus, all the above factors discussed has a major impact on the organizations in drivingthe businesses to the global market. Such factors creates several opportunities and exchange ofdifferent resources will enable it to develop relations with other countries as well. Apart fromthis, the digital technology will have positive impact on the SASOL when the company will

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Driver and challenges of globalisation
|15
|874
|169

Global Business Environment– Assignment
|12
|3691
|43

Global Business Environment Assignment Solved - SASOL Limited
|10
|3353
|295

Global Business Environment: Analysis of Driving Factors, Impact of Digital Technology, and Recommendations for SASOL
|13
|771
|414

Global Business Environment
|18
|5285
|384

Global Business Environment - Global Business Environment - Sasol Limited
|13
|4507
|23