Global Business Environment - SALSO Ltd

Added on - 21 Feb 2021

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GLOBAL BUSINESSENVIRONMENT
Table of ContentsINTRODUCTION...........................................................................................................................1LO 1.................................................................................................................................................1P1 Factors driving globalisation..................................................................................................1LO 2.................................................................................................................................................2P2 Complexity of strategic challenges faced by global environment..........................................2LO 3.................................................................................................................................................4P3 Influence of globalisation.......................................................................................................4P4 Influence of ethical globalisation on organisational functions...............................................6LO 4.................................................................................................................................................7P5 Different ways in which decision-making can work better for global business context........7P6 Different routes adopted by organisations..............................................................................8CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
INTRODUCTION.Global business environment refers to the overall environment at international level in which thecompany operates its various business activities. SALSO Ltd. Is an international business whichwas founded in the year 1950. the company is operating its business for commerce and trades. Itdescribes numerous complexities of challenges that is faced by the business of integrating energyand chemical company. The present study shows a brief analysis of various factors of drivers ofthe global, at the time of developing strategies. In addition, the present study also showsinfluence of globalisation on the corporate governance, leadership, cultures and variousfunctions. Further, the study also provides information about various ways different waysthrough which business takes their decisions and various routes that can be adopted by anorganisation.LO 1P1 Factors driving globalisationGlobalization is an increasing trend according to which companies are expanding theirbusiness in foreign countries. Global Business Environment consists of different internal &external factors which affects business of operations of companies operating their business inglobal market. Variousfactors driving globalisationwhich are discussed below-CostCost is the most important element without which an organisation is unable to operate itsbusiness in global market. Before the establishment of business in a new country a business firmis required to analyse investment cost. Because, Cost of an expansion project may vary withgeographical area and its requirements thus, it is necessary for SASOL Limited to diversify itsbusiness in countries like Mozambican, Canada, Australia and Gabon. Further, cost involved inproduction of goods & services is also required to determine so that customer can get products atan affordable price which in turn enhances profits and customers of a company which is thinkingto expand its business in global market.Cost also benefits company in achieving global economies of scale and for creatingdemand of its product and services by developing products & services offered by it.Market
If a company offer its product and services in the local market only than it is unable togain more profits and it is also not able introduce new product line. With the emergence ofglobalization a business firm can expand its business in new markets and it can introduce newproducts according to the demand and preference of individuals of different countries. Thus,availability of new market is the most important key driver of globalisation which influencebusiness organisations to operate their business in international market.To increase market share and customer base of the company SASOL Limited is alsoexpanding its business across the globe(MacAskill and Guthrie, 2017).EnvironmentEnvironment conditions of the countries is different and it benefits organisationmanufacturing of products and services which is favourable for the companies operations. AsSASOL Limited is producing and offering chemicals and energy it is most beneficial for thecompany to expand its business in a geographical area which is more favourable and whichrequire less cost of manufacturing. Thus, with this driver a company can operate its business inan environment which is most favorable.CompetitionWith the establishment of business of SASOL Limited in new countries its competitionalso increases and which further forces company to expand its business in more countries.Because, with the increase competition exports and imports between the countries also getsincreased which enhance profitability and brand image of business firm. Further, companiesoperating their business in international market also gets support from Foreign Direct Investment(FDI).Moreover, Technological and Legal Drivers are also most important for the companieswhich are offering their products and services in a country other than the host country. Differentcountry uses different technology of production with which SASOL Limited can enhance itsperformance and develop its production process.LO 2P2 Complexity of strategic challenges faced by global environmentOperating business at international level is not much easy. SASOL Limited has to facevarious complexities while diversifying its business in different countries across the globe.Which are discussed below-2
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