Globalization and Driving Factors: A Critical Evaluation

HNBS 318 Global Business
Environment

INTRODUCTION
GBE is defined as surroundings in different nations with the exogenous factors to home
environment of company. The businesses are impacted through global environment that
uncontrollable international and local interactions which impact an organisation operates
(Adekola and Sergi, 2016). Present report is supported on SASOL Limited and this is fast
growing energy and the chemical based organization. In this report going to discuss about the
globalization and driving factors which effect on the business environment. There will be
discussion about application of the Hofstede’s Dimensions of culture for showing critical
judgment of globalization impact on global company.
PART 1
Concept of globalization
Globalization refers to enhancing interdependence and integration of world economies. It
is move about expansion of the social and economic ties among countries by spread of the
corporate institutions that can lead to shrinking of world in economic context. In this,
organizations can gain the competitive benefit on many fronts by globalization. They can
minimize cost through manufacturing abroad. The globalization permits business of specialize in
manufacturing the services and products where they can gain competitive benefits.
Driving factors of globalization
Under this, there are different factors which responsible for carrying globalization
operations which make process more effective for long period of time. Different globalization
factors mention below:
Economic factor- It consists data regarding market as well as economy if
underdeveloped country is not having growth. In context to this, globalization is helpful in
enhancing growth of an organization through using advanced technology, transportation facilities
and many others. It will help in reduce the labor cost.
Technological factors: It is one of the crucial driver of globalization as it help in
exchanging the technology to one nation to the another one with the aim of improving the
relation. With the help of this, two countries can easily share data and necessary information
towards the future activities (Aithal, 2017). In context of business organization, this type of
driver help company in building their positive and competitive brand image at market place.
1