Global Business Environment

Global Business
Environment
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Table of Contents
INTRODUCTION...........................................................................................................................3
Part 1................................................................................................................................................3
Covered as PowerPoint presentation with Speaker Notes......................................................3
Part 2..............................................................................................................................................19
LO3................................................................................................................................................19
P3) Influences of globalisation on organisational governance and leadership, structure, culture
and functions........................................................................................................................19
P4) Evaluation the influences of ethical and sustainable globalisation on organisational
functions...............................................................................................................................20
M3) Influences of globalisation on organisational governance and leadership, structure,
culture and functions............................................................................................................22
P5) Evaluate the different ways decision making can work effectively in a global context24
P6) Determine and articulate the various routes to internationalisation an organisation may
adopt, including key barriers................................................................................................26
M4) Critically evaluate the key barriers in doing business internationally and make
recommendations on how they can be overcome.................................................................27
D2) Strategies that can be adopted for operating in a global business environment along with
valid and justified recommendations....................................................................................28
CONCLUSION..............................................................................................................................28
REFERENCES..............................................................................................................................29
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INTRODUCTION
Strategic decision making has been done for the purpose of considering the long term goals,
aim and objectives of the company. And its impact has been shown according to the working
pattern of the organisation. Strategic decision making is all about the type of decision taken by
the company. In this report, the analysis has been done on the key factors which drives the
globalisation. The analysis has also been done on the complexity of strategic challenges which is
faced by the organisations when operating in the global environment with the supported
examples. The chosen organisation is SASOL. It is the company which has its operation in 30
countries. It is a global integrated chemical and energy company. The company has used
expertise and selected technologies to safely and securely sustain the chemical and energy
products at the international level.
Part 1
Covered as PowerPoint presentation with Speaker Notes
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Speaker Notes
It is the type of interaction which is associated with social and cultural aspects (Abdolvand,
and et.al., 2015). It includes data, resources of capital, technology, goods and services.
Globalisation took place due to several reasons. SASOL has also grown through this phase as it
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wants to achieve goals and objectives in the effective and efficient manner. There are some
factors which leads towards the increase in globalisation. It includes the increase use of social
media, transportation, financial products, payment systems and other leads which contribute in
the rise of globalisation in the sector of business and organisation. Globalisation means that the
speedup movement of goods and services and exchanges which has been done on the basis of
capital, technologies and cultural practices. Through globalisation new opportunities and
challenges have come due to which there are lots of problems as well as in terms of the growth
for the business environment. Globalisation provides a platform to showcase the invention,
innovation at the international level so that other countries also get the opportunity to try other
company’s products and services in a advantage form. There is also global business environment
which affects the globalisation on the international level.
Speaker Notes
There are significant impact on the digital technology due to globalisation (Ngeche, J.,
2017). Digital technology means that using the resources for communication, information,
analysing, creating and effectively finding out in the digital context. Under the digital
technology, the use of programming tools, web tools and software applications has been used in
a prevalent manner. Because of advancement and growth and main forces for driving it the
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digital technology has impacted globalisation. With the support of increasing economies of scale
and size of market, this gives the reason for compelling enterprise to become global. Digital
technology has played a very important role in reducing the communication and transportation
cost through out the nation which facilitates for the global source of inputs and raw materials.
There is another important thing which is known as patent technology through which no one can
copy the product, service and idea of another company and exploit the foreign market without
competition. Through the emergence of digital technology, it leads to the emergence of global
village and reduces barriers of time and place for dealing with organisation.
Speaker Notes
In this report, the analysis has been done on the key factors which drives the
globalisation. The analysis has also been done on the complexity of strategic challenges which is
faced by the organisations when operating in the global environment with the supported
examples. The chosen organisation is SASOL. It is the company which has its operation in 30
countries. It is a global integrated chemical and energy company. The company has used
expertise and selected technologies to safely and securely sustain the chemical and energy
products at the international level.
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Speaker Notes
When operating in a global environment, the difficulties encountered by managers
complexity emanates from unpredictability and uncertainty. The main parameter which creates
hindrance in the operation of global environment level are the PESTEL factors. This has been
discussed in the following manner:
Political Complexity: When managers plan to meet their long term goals then they faced the
political challenges. For example, in the country south Africa the company people is not so sure
about the future political environment whether it will remain stable in the long-term or not.
Whether the tax policies will change or not and when it will change. Due to political uncertainty,
there is inability to predict changes in such issues.
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Speaker Notes
For example, with the different issue there has been tensed environment that whether
they successfully keep operating after the issue. This is the reason somewhere they shifted their
headquarters to other south African countries while some have suspended their operations from
south Africa. These kind of strategic decisions are due to uncertainty surrounding the future of
the south Africa There are some unanswered questions due to which it becomes difficult to
predict whether the country’s employment and trade policies will be favourable and become
stable for business in future. When operating from the global environment, this shows that
economic issues are among strategic issues which has been faced by the firms. Since exchange
rates can fluctuate in a rapid manner and cause volatility in the financial markets is a key source
of strategic complexity for firms operating on a global level.
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