Global Business Environment - Impact of Technology, PESTEL Analysis, Challenges and Recommendations
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This presentation discusses the impact of technology, PESTEL analysis, key factors of globalization, challenges and complexities, and recommendations for British Gas in the global business environment.
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GLOBAL BUSINESS ENVIRONMENT
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TABLE OF CONTENTS INTRODUCTION MAIN BODY PESTEL analysis Key factors of globalization Impact of Technology Challenges and Complexities Recommendations CONCLUSION REFERENCES
INTRODUCTION Globalisation refers to the developing the interdependence of world's economics, cultures and population. It is spread of products, technologies, services, information and job across the national borders and culture (Gygli and et.al., 2019). It leads to the greater interaction among the population. The business is globalized to increase boundaries ofmarket in order to develop growth of the business and to reach bigger market. British Gas is an energy and home gas service provider in United Kingdom. Service provided by the company include gas, electricity, boilers and boiler cover (British Gas, 2021).
PESTEL ANALYSIS PESTEL analysis refers to the impact of the external environmental factors on the growth of the business (Pan, Chen and Zhan, 2019). Following is the PESTEL analysis of the British Gas. Political Factors Economical Factors Social Factors Technological Factors Environmental Factors Legal Factors
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KEY FACTORS OF GLOBALIZATION Following are the factors that have contributed to the globalization. These factors impact the globalization of the business in both positive and negative ways. Technological Change Cultural Exchange Improved transportation Differences in Tax system Natural Resources
IMPACT OF TECHNOLOGY Technology has influenced the globalization at large level. The role of digital technologies in the globalization of the business has impact the every process in the organization. Industries started to adopt the technological changes in order to grow fast in the international market. Technology reduced the work burden of the companies. It also impacts the British Gas in various ways as most of the operating process were being completed with help of technologies Globally the transformation of the information also became easy and reduced the cost of the company. Cost improvement with the help of new technologies model were done by British Gas that include an organization redesign, improvement in procurement process, improvement in productivity and cost of doing business.
CHALLENGES AND COMPLEXITIES Globalization of the business or to expand the business out of the domestic boundaries is not an easy task. Company had to face challenges and complexities in order to react the international market. Many barriers occur for the international companies such as British Gas in the globalization of the business. Increase in capital Public relation International Employee Expectation Legal compliance issues:
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RECOMMENDATIONS From the above examination, recommendation can be given to the British Gas in order to improve the globalization approach of the company. Following are the recommendation British Gas should implement in the internationalization. Use of Social Media:The barriers of the public relation in the globalization can be reduced with the help of social media. Company can increase the public relation before the globalization that will decrease the challenge of public relation in specific area. Social media is the most affective marketing platform that had a great impactonthepeople.Itwillalsohelpthecompanyincustomer engagement and employment engagement will also increase.
CONT. Employment:It is the major barrier to the globalization of British Gas. Company should encourage the employee in order to make them loyal that will change the expectation of the employee according to the company. Employees of the organization are the most essential asset. Motivation in the employees leads to the increase in loyalty and engagement.
CONCLUSION From the above presentation it can be concluded that globalization refers to the expansion of the business outside the domestic boundaries of the company. Various factors of the macro environment affect the growth of the business that included political, economical, social, technological, environmental and legal. Key factors of internationalization helped the business to understand the global market. British Gas also took advantage of the cultural exchange in the globalization of the business. Impact of technology reduced the world load of the companies and helped in various ways of globalization such as allocation of resources, ease in communication, reduction in cost.
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REFERENCES Abdulmajid,A.F.A.,2019.Impactandchallengesofdigitalmarketduetoglobalisation.SumedhaJournalof Management.8(3). pp.207-212. Babenko, V., and et.al., 2019. Factors of the development of international e-commerce under the conditions of globalization. InSHS Web of Conferences(Vol. 65, p. 04016). EDP Sciences. Catling, A., and et.al., 2021. Trade Globalisation in the Last Two Centuries.Geography. Çitilci, T. and Akbalık, M., 2020. The Importance of PESTEL Analysis for Environmental Scanning Process. InHandbook of Research on Decision-Making Techniques in Financial Marketing(pp. 336-357). IGI Global. Flew, T., 2018. Post-globalisation.Javnost-The Public.25(1-2). pp.102-109. Gygli, S., and et.al., 2019. The KOF globalisation index–revisited.The Review of International Organizations.14(3). pp.543- 574. British Gas, 2021. [Online]. Available through <https://www.britishgas.co.uk/business>