Global Business Environment - Assignment
Added on 2021-02-19
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Global BusinessEnvironment
Table of ContentsINTRODUCTION...........................................................................................................................1PART 1 - Drivers and challenges for globalisation.........................................................................11. Introduction to the concept of globalization.......................................................................1M1 Critically analyses the impact on global business environment in terms of benefit andchallenges...............................................................................................................................2D1 figure out various opportunities and challenges faced by organization at global level....22. Driving factors of globalization..........................................................................................23. Significant impact of digital technology upon globalization.............................................34. PEST/LE analysis of the organization................................................................................35. Challenges of globalization and the strategic challenges...................................................46. Recommendations on how to overcome these challenges.................................................5M2 Identify strategic challenges in context of risk diversification in supply chain flow......5PART 2 - Impact and Strategic Direction........................................................................................51. An explanation of the structure, culture and governance of the organization by ApplyingMcKinsey’s 7S model............................................................................................................52. Applying Hofstede's Dimensions of Culture to demonstrate how the organization has beeninfluenced...............................................................................................................................6M3 Evaluate global market and its application to theories and models in the aspect oforganizational structure..........................................................................................................7D2 Examine strategies which can be adopted by organization operating in global businessenvironment............................................................................................................................73. Evaluation of ethical and sustainable factors.....................................................................84. Factors have affected decision making in a global context................................................8M4 identify key barriers while doing business internationally and recommendations..........95. Strategic expansion routes the organization took and analyze both advantages anddisadvantages..........................................................................................................................9CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10
INTRODUCTIONGlobal business environment refers to the collaborative working of more than twocompanies with one another in order to enhance their prof9itabilirt at international market place.It includes both the internal as well as external environmental factor which influences itsoperational activities in positive and negative manner (Alqahtani and Saba, 2013). SASOLLimited is a South Africa based company which is taken into consideration for completing thisproject. The company belonging energy and chemical industry. The present report explainsvarious key factors which drives globalisation. It also determines different kind of strategiccomplexities which are faced by business organisations at the time of operating their businessactivities at global environment. Furthermore, it also shows how business activities of companiesat international level affects company's culture, functions and structure. Last but not the least itdescribes influence of globalisation over organisational decision making and its businessstrategies.PART 1 - Drivers and challenges for globalisation1. Introduction to the concept of globalization.Globalization refers to the integration of two or more businesses through the medium ofexchange of products and services for the common motive of earning profits. It is seen asbusiness concept but still it is not limited to the business organization only. Concept ofglobalization has developed various growth opportunities for the individuals as they are now ableto approach their desirable company working in other nation. Along with this, globalization hasalso helped customers in reaching to the products and services from their native nation only.Overall it can be said that globalization has developed standard of living of people as the withthis concept economical position of every nation is developing day by day (Black, Morrison andGregersen, 2013). While analyzing negative influence of the same concept it has been seen that itcreates numerous of tax policies for the companies operating at different nations. This makes itcomplex for business organization to deal with high number of legal terms. As per the presentscenario, it has been seen that SASOL Limited is already operating its business activities inMozambique, Australia, Gabon and Canada and its superior team is also planning to expand itsbusiness in other nations too. 1
M1 Critically analyses the impact on global business environment in terms of benefit andchallenges.Global business environment is changing rapidly so as the company have to changeaccordingly in order to sustain in business. There are some challenges such as complexity inbusiness which create confusion among organization and for consumers. Another challenge islegislative structure where every country have their own legal environment so company musthave proper knowledge regarding laws before launching their new product. There are somebenefits in globalization which help firm to grow instantly. One of the major benefit is expansionin which company can operates there business beyond the boundaries and can generate revenue.D1 figure out various opportunities and challenges faced by organization at global levelGlobal environment is highly uncertainty which influence global change. Global forcesand trends regularly change which directly effect the business. There are some challenges whichare faced by company are growing urban population, rise of emerging market, technologicaladvancements and climate change. And there are several other opportunities such as untappedmarket, expansion and diversification 2. Driving factors of globalization.Driving factors are seen as those elements which uplifts business activities effectively.With reference to the term globalization, it has been analyzed that driving factor for globalizationare helpful for the companies like SASOL Limited for facilitating their business activitiessmoother in international market place. Some of the core driving factors of Globalization whichhelps SASOL Limited in smoothing its business activities at international marketplace aredescribed as below:Technological Drivers:Advance form of technology helps business organisation inexchanging goods and services effectively at international marketplace. So that, with thehelp of Digital Technology, management team of SASOL Limited can operate businessactivities without facing any kind of difficulty (Cavusgil and et. al., 2014). Political Drivers:Reducing tariff rates and leniency in trade laws can be seen as thestrongest form of political influence which drives functioning of SASOL Limited atinternational market place in effective manner. Competitive drivers:Continuous based increment in competition has influenced top mostteam of SASAOL Limited to expand their business at international scale. This is because,2
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