Global Business Environment : The SASOL Limited

Added on - 21 Feb 2021

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Global businessEnvironment
Table of ContentsINTRODUCTION...........................................................................................................................1Concept of Globalization........................................................................................................1TASK 1............................................................................................................................................1P1 An explanation on key factors of cost, market, environment and competition that driveglobal commerce and trade.....................................................................................................2TASK 2............................................................................................................................................3P2 Define the complexity of strategic challenges faced by organisation when operating in aglobal business environment supported by specific examples...............................................3TASK 3............................................................................................................................................5P3 An explanation of the structure, culture and governance of the organisation...................5P4 Evaluation of ethical and sustainable factors that can influence globalisation onorganisational functions..........................................................................................................7TASK 4............................................................................................................................................8P5 Determine the several ways decision making can work effectively in a global context...8P6 Determine and articulate the various routes to internationalisation an organisation mayadopt, including key barriers..................................................................................................9CONCLUSION..............................................................................................................................10REFERENCE.................................................................................................................................11
INTRODUCTIONGlobal business means international trade which is run across the world in order toexpand the business. Business environment is the collection of internal and external factors thataffects operational activities of business entities. Global business environment contains a placewhere two or more entities works collectively in order to generate more profits by expanding thebusiness. It is used to gather the mutual profits through importing and exporting of goods andservices(Biloshapka and Osiyevskyy, 2018). The current project report is based on SASOLLimited which deals in energy and chemical industry. The SASOL Limited is based on SouthAfrica who expands its business in different countries. The present report covered differenttopics concept of globalization, driving factors, PEST analysis, impact of digital technology andchallenges of globalization that affects business. Moreover, the report will state Mckinsey's 7smodel, ethical and sustainable factors which can be consider in global market and these factorsaffects the decision making in global operations.Concept of GlobalizationGlobalization is a that term which define the interrelation among the people, companies,and government of different nations. The element plays an important role in the free movementof goods, services, technology, flow of finance, and people across the world. In context ofSASOL limits as they are expanding their business in various nations so they can take benefit ofthis term. After globalization they can take advantage of others countries technologies, businessstrategies, ideas and many others. It also helps them to increase their business in the all over theworld which result increasing profitability and productivity. On the other hand, globalization hassome advantage and disadvantage like it helps them to increase the job opportunities, easy accessof foreign culture and so on. But in has disadvantage likeruin job opportunities of high-wageand well-developed countries because their production and ideas are moves across boarderswhich can harm them in an effective manner.TASK 1
P1An explanation onkey factors of cost, market, environment and competition that drive globalcommerce and trade.There are various factors which have the potential of influence the globalization acrossindustries, which are uncontrollable by individual organizations. In this section, the explanationabout these factors that how these factors play an important role in the globalization.Cost:-This is the main factor which can influence the term of globalization that definesthat cost is different in every country so the global firms can take advantage of it. If thecost is higher of land, capital, and labor in the own country then SASOL limited can takebenefit from export from other countries(Danik, Duliniec and Kowalik 2016).Market:-At present situation domestic market are become more saturated so theopportunities for development is limited. For overcoming this situation SASOL limitedcan adopt globalization term which helps them to reach in the global market so they ableto increase their performance internationally.Competition:-After globalization competition will be increase for the SASOL limited,for beating their competitors they have to improve their organizational performanceinternationally.Environment:-Globalization is affected by so many environmental factors whichincludes political and legal issues, these have the great impact on globalization. Otherfactors are social, cultural, technologies, and many others which can impact theglobalization so the company needs to implemented their operational activities afterconsidering all these factors.The significant impact of digital technology upon globalisation:-The digital technology has great impact on the globalization as they help the business sotgrow more in the market. Technology helps the business to overcome from various issues relatedto trade barriers, transportation cost, lack of common ethical standard, delay in informationexchange and many others. It helps SASOL limited to operate their operational activitiessmoothly without any crisis which helps them to increase their productivity and profitability aswell.2
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