Global Business Environment

This presentation explores the global business environment, including the key driving factors of globalization, such as market, trade, cost, competition, FDI, and economic integration. It also discusses the impact of digitalization on globalization, challenges and complexities related to globalization, international trade law, PESTEL analysis, and supply chain management. Recommendations are provided to overcome the complexities of global business. References are included for further reading.

Global Business
environment

Table of content
• Introduction
• Analysis of key driving factors of globalisation
• Globalisation drivers related to cost, market and
competition
• Evaluation of digitalization impact on globalisation
• Evaluation of challenges and complexities related to
globalisation
• International trade law
• Pestel analysis
• Supply chain management and its complexity
• recommendation to overcome from the complexities
• Conclusion
• References

Introduction
Globalization is the exchange of goods and services at
global scale level from one country to another. This is
the process through which business organization
expand their business at global level and operate their
for effective exchange of goods and services in order
to generate higher revenue. In this process economy of
the world work together to share goods and services.

Analysis of key driving factors of
globalisation
Key drivers are some factors which impact the
performance and strategies of business, in context
to globalisation that the various drivers which
impact the global Business performance and
achievements, such as market, trade, cost,
competition, FDI and economical integration and
other government policies are some key drivers of
globalisation.

Conti.....
International economic integration- This is the type of
action or regulations selected by the global Business
community of participating countries in order to
remove discriminating trade barriers from the
participating countries. Along with the implementation
of some cooperation and coordination theme. This is
the type of trade agreement among the participating
country of global market, which can be considered as
a trading blocs and it further classified as custom
union, common market, free trade and economic
union.

Conti.....
Trading blocs
This is a type of legal agreement among the participating
government country, under which the trading barriers is can
be reduced for organisations which perform under the
reason of intergovernmental area. For example the southern
Africa custom union which is one of the oldest trade blog
helps to easily trade among the participating countries with
the facilities of reduce trade barriers. So for the SASOL
and all other business entities of South Africa this is one of
the leading driver of globalisation which has to be monitor
and coordinated by the organisations to reduce risk and
extract benefits.

Conti......
Foreign direct investment- This is one of another
globalisation driving factor because that is the mode
of globalisation for various business entities, that is
involving ownership of the company in foreign
country business entities.

Conti......
International business and trade- International
businesses or trade is the selling of goods and
services across National borders along with the
sharing of knowledge and skills. That is one of
important driver of globalisation, because these
business entities increase the connectivity among the
global market and also impact the Business
expansion plan of company according to their growth
and development along with competitive strength.

Factors in relation to cost, market,
environment and competition
• Other than the government policies and
international business laws there are some other
some more important key drivers of the
globalisation in business. Such the changing
market trends and requirements, the high
competition of market and the cost of products,
services and supplies. All these factors lead the
business activities to grow at international level for
meeting the competitive wages by increasing the
market segment utilising the cost values and
foreign resources.

Evaluation of digitalization impact on
globalisation
• Digital technologies- the innovation and further
more improved digital technology development is
supporting the globalisation by helping the
business entities to make the best quality products
at lower price. Because that is providing the
information technology and tools which helps to
manage the production and processing function
within the organisation at low cost, by removing the
cost of labour, removing the extra wastage of
resources and time.

Evaluation of the challenges and complexities
globalisation brings to the organisation
International trade law and its impact
The international trade law as involving the different
rules and regulations in context to the goods and
services international supply or trading. These rules
and regulations vary from country to country and
product to services.

Conti....
• GATT- this one of the international trade supporting
agreement which is done among the 23 countries,
involving the international trading support law and
regulations. according to which the participating
countries can conduct easy trading with the eliminated
trade barriers. The leading political changes in this
agreement create complexity and challenges for global
Business entities.
• Tariff barriers- this is the type of government legal
barrier between some countries and geographical reason.
Involving the higher rate text application for import and
occasionally export.

PESTEL analysis of the global business
environment in context to SASOL
• PESTEL analysis is one of the most essential
analytical tool how to study the external factors of
business which is not in control of organisation and
results in the form of opportunities and threat what
has to be managed by the SASOL by effective
strategy and changes.
• Political
• Economic
• Social
• Technological
• Environmental
• Legal

Supply chain management
• Supply chain as one of the important business functions
related to the main assets of business such as goods and
services. That is involving management activities related
to the goods and services between businesses and
different location. Such as that is involving the
collection of raw material and its storage into the
processing inventory, then collection of the finished
product which further store and transport to the
distributors. That is involving the complete process of
product development and its distribution to the retailers
in order to fulfil customers demand.

Complexity of international supply
chain management
• Quality level- that is not necessary, manufacturing is
something good in every country. Due to which it can
cause certain issues in quality standards of company.
That is difficult to manage equal quality of products
within different international branches of organisation.
• Long rang logistic- that is easy to purchase the item at
delivered price but if the shipment is delay then it can
cause higher loss to the company. This is the most
common challenges faced by the international
businesses the delay in the shipment of products.

Recommendation in context to
overcome the challenges
• Proper business plan- in order to overcome from the
complexity and challenges of globalisation organisation
have to make a proper study of each and every complex
factors and then developed the best fitting businessman
according to those factors. This should involve the
effective strategy of supply chain by considering all
segments, customers and demand. There should be
proper shipping time frame and completion date
management.
• Meeting ethical standards- in order to manage the
complexity of supply chain, environmental and legal
factors. Organisation have to make the proper study of
ethical standards and follow that in business plan.

Conclusion
From the above study it has been concluded that
globalisation of the business entities is one of the most
important factor for global economy and their own growth
and revenue. There are the various factors in the business
market which are the key drivers of globalisation such as
economical integrations, foreign direct investment,
different values of the cost, market and competitive forces.
These are the globalisation drivers of business entities,
because due to the higher competition and saturation of
market the options which will bi remaining for the
organisation growth and development is globalisation.
Other than the drivers globalisation it is very complex and
challenging due to the different trade law such as tariff and
non tariff barriers, Supply chain complexity, and
environmental changes.

References
• Tallman, S., Luo, Y. and Buckley, P.J., 2018. Business
models in global competition. Global Strategy Journal,
8(4), pp.517-535.
• Hamilton, L. and Webster, P., 2018. The international
business environment. Oxford University Press.
• Ronit, K., 2018. Global business associations.
Routledge.
• Helpman, E., 2018. Globalization and Inequality.
Harvard University Press.
• Lim, Y.J., 2020. The PESTEL Model Application to Ok
Boomer and TikTok from a Public Relations
Perspective. Journal of Media Research-Revista de
Studii Media, 13(37), pp.94-110.