Unit 18 – Global Business Environment : Assignment
Added on 2021-02-19
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Unit 18 – GlobalBusiness Environment
INTRODUCTIONBusiness environment is a collection of various factors that impacts the business in director indirect manner (Beqiri, 2014). Such factors includes supply and demand, employees,innovation in technology, market trends, customers preferences and so on that are are associatedwith functionality of business operations. Global business environment encompasses theenvironment in which different countries integrates with the purpose of making commondecisions in order to make developments on world economy. In such environment two or morefirms performs several tasks to attain mutual benefits by exchanging goods, technology, cultureand many more that enhances faster decision making along with development of economy ofnation. To under such concept in depth, SASOL Limited is chosen. The selected organisation is afast growing chemical and energy company who has expanded the business in various countriessuch as Canada, Australia and so on. The report includes analysis of various key factors thatdrive globalisation, strategic complexities that are associated with operating a business in globalenvironment. It further discusses about the ways global market influences structure, culture aswell as functions of an organisation. At last, it includes influences of globalisation on decisionmaking along with strategies of a company. PART 11. Concept of globalisationGlobalisation: The integration and interconnection between people, organizations,economy, society as well as government is termed as globalization. It involves proceduresthrough which the world connects with various countries by exchanging products or servicesacross the boundaries of a particular nation. It results in massive enhancement of trade,communication along with exchanging technology that helps in reaching to larger customer baseacross boarders. Such concept provides advantages and disadvantages to any business. It leadstowards development of society, increasing employment opportunities and many more thatprovides advantages to expand the business operations. By at the same time it also results indegradation of environment, wastage of resources, unfair condition as well as decrease inenvironment growth rates. In context to SASOL Limited, expansion of business will include expansion of crude oil,energy products, chemical substances and so on (Esmer and Duru, 2017). The concept of
globalisation help managers to formulate provisions as well as effective strategies to promote aswell as increases awareness related to organizational products in global market.2. Driving factors of globalisationKey drivers that drive global commerce and trade: In the dynamic and competitiveworld, there are certain factors that helps businesses to carry out operations and management ofany company should understand the nature of key drivers that leads towards driving globalcommerce as well as trade. Some of them are as described:Cost: Cost driving factors are differential costs, human capitals and global scopeeconomies. Globalization includes various procedures that allows SASOL Limited to optconcentrating value added as well as dispersing value added tasks that helps in attaining locationbenefits that impacts in selling existing products in order to gain economies of scale throughimporting or outsourcing various commodities. Market: The key factors that are part of market drivers are transferable marketing,customer perception and so on that results in delivering standardized products. SASOL Limitedprovides products with high standard quality to satisfy demands of customers that impacts onincreasing sales performances as well as capturing larger shares in market.Competition: In reference to this driver, it includes actions, plans and strategies ofcompeting organization. Globalization has build a high competition level in which foreign directinvestment fosters SASOL Limited interdependence between countries as well as othercompanies. It impacts on exposing the business operations to existing or new competitors in thecompetitive world. Environment: It includes internal environment and external environment as key driversthat impacts on organizational operations in reference to global trade and commerce. Such driverforces managers of SASOL Limited to integrate according to the changes in political systems.International laws and so on. 3. Significant impact of digital technology upon globalisation.The digital technology impacts on business operations at great extent. Such technologyincludes internet to convert process data into meaningful information as well as communicate thesame by using digital mediums (Gakure, 2014). By using mediums of digital technology,SASOL Limited faced positive as well as negative impacts. Some of the positive impacts areexpanding promotional areas, contacting with distant potential clients, making easy
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