Influences of Globalization on Organizational Governance, Leadership, Structure, Culture and Functions

INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
P1 Analyse key factors of cost, market, environment and competition that drive global
commerce and trade.....................................................................................................................3
Covered in PPT............................................................................................................................3
P2 Explain the complexity of strategic challenges faced by organisations when operating in a
global environment supported by specific examples ..................................................................3
Covered in PPT............................................................................................................................3
PART 2............................................................................................................................................3
P3 Evaluate the influences of globalization on organizational governance and leadership,
structure, culture and functions....................................................................................................3
P4 Evaluation of influence of ethical and sustainable globalization on organizational functions-
......................................................................................................................................................4
P5 Different ways of decision making that helps in working effectively in globalization........10
P6 Determination of various routes to internationalization organization may adopt.................10
Conclusion.....................................................................................................................................14
References-....................................................................................................................................15
INTRODUCTION
Global business environment are described as an environment that exists in different self-
overseeing nations with components endogenous to home climate of an association alongside

impacting cycle of dynamic on usage of assets and capacities. In basic terms, global business
environment alluded as an over overall climate where an association work their activities. This
idea developmentally incorporates wide scope of components that are, innovation, culture,
governmental issues, geographic area and financial status. There are various sorts of components
that impact associations to globalize their tasks in worldwide market, a portion of that variables
incorporate, benefit creating open doors, worldwide development, business development, global
standing and that's just the beginning. Present report has been led on, SASOL Limited participate
in the area of fast-growing energy alongside chemical company. This company is operating its
business services in South Africa. Organization is looking advances to extend their business
activities into different nations. In this report, conversations has been made on, significant key
factors that drive globalization alongside issues that happens while directed business on
worldwide commercial center. Furthermore with this, report incorporate, various kinds of
components that leads towards affecting activities of an organization along mind interaction of
dynamic.
PART 1
P1 Analyze key factors of cost, market, environment and competition that drive global
commerce and trade

It is also understood as spread of goods, products, information and technology all over the world.
Company which works at large scale in developed nations gives competition to other companies
with the help of globalization. If a country facing is economic down then it creates the domino
effect with the help of trade partners (Gopinath, 2018). It is clear result of globalization.
Globalization helps in creating the competition worldwide. Competition created is related to
product, service, target market and technology. If a company is producing with less cost and
selling cheaper then, it can capture the large market share. It is used in economic context in order
to describe the integrated economy which is market by free trade, free flow of capital and use of
foreign labor. It maximizes the return and benefits of the common goods.

Cost - Globalization and cost of products and services has positive correlation with each other.
With the help of globalization products and services can be sold at the lower prices. If a company
wants to sell their product in other countries then it has to pay the environmental cost, tax
competition and avoidance. Every country has different tax rates. Developed countries have
more tax rate then poor economic condition countries (Salles-Djelic, and Quack, 2018)
Market - Main goal of globalization is to boost the economy all around the world by making
efficient the market. Global trade leads to high competition. It also helps in spreading the wealth
more equally.
Environment - Globalization affects the environment in various ways such as increased
emissions. When more fuel is consumed it increases the levels of greenhouse gas. Company
deals with chemicals so it leads to pollute the environment which is not good for the company.
Company should control the pollution.
Competition - As the term globalization indicates the competition. It makes market competitive
and company can survive in the market by using the innovation. Customer attention is grabbed
with the help of innovative products and services.

M1 Critically analyze the impact that key factors have upon the global business environment in
terms of opportunities and challenges
Political Factor - As the changes in tax rate affect the company and it has to pay the taxes
accordingly. Geopolitical and escalation of trade sessions by government is threat for the
company. It plays crucial role in determining the factors that affect the SASOL limited. It
operates in more than dozen countries that’s why it is facing political issues. Every country has
their rules and regulations and company needs to follow that.
Economical Factor - As company is dealing with another country so it is needed to be checked
that quality of infrastructure of oil and gas and oil industry should be accordingly in order to
generate the profit. Economic growth rate should be high of country as it helps company to grow.
If country is not performing well in terms of economy, then it is threat for the company. Before
launching product or service in any country SASOL limited needs to check the economic
condition or system of the country. Economic system should be stable in order to earn the profit
(Tsiklashvili, Chanidze, and Surmanidze, 2019).
Social Factor - It is important for the company to know that product launched in the country will
be successful or not. Skills of population and demographics must be analysed. It is important to
know the power structure in the society. Population and belief play important role in success of
the product. Culture, age group of people and social conventions are very important for company
to know of target country.