Global Business Environment: Drivers, Challenges, and Impact

HNBS 318 18 GLOBAL BUSINESS
ENVIRONMENT (1&2)
PROJECT 1

INTRODUCTION
 Global Business Environment is the international interactions out of an
organization's control that influences its business operations, decision
m
 aking on resource utilization.
 International business environment are of two types; external and
internal environment that may cause various advantages and
challenges to a business organization.
 This business report is prepared to understand the drivers and
challenges for globalisation and impact and strategic directions
 For the assessment SASOL Limited, a South Africa based energy and
chemical company is chosen that is hooping to expand into other
countries.

1.CONCEPT OF GLOBALISATION
 Globalization is the economic process of interacting and integrating
between people, organizations and governments worldwide which are
associated with social and cultural aspects.
 It is the spatial temporal processes of change constituting
fundamental transformation of concerns in an organization associated
with human activity expansions across regions and nations.
 Globalisation is the broad term that encompasses several perspectives
and global outlook of different countries combining together in terms
of economy, education, society and politics and is the growing
interdependence of nations resulting from integration of trade,
finance, people and ideas in a single global market place.

2.DRIVING FACTORS OF GLOBALIZATION
 There are many factors that have contributed to process or system of
globalization including several actions of businesses that have accelerated
this activity which are driven by new developments and changes in world
economy. Factors influencing Globalisation are as follows:
 Technological Advancements: Enhancements in telecommunications and
information technology has marked remarkable improvements in information
accessing and rising economic activities.
 Free trade Agreements: Elimination of trade barriers and restrictions
facilitates rise in growth of world trade which is promoted by international
organizations like World Trade Organization and International Monetary
Fund, MNC's and capitalists.
 High competition: Rise in domestic market competition where a business
strives to attain competitive advantage in market tends organizations to enter
global market to expand their market share by selling goods and services
internationally.