Global Business Environment InTRODUCTION 3 TASK 13 P1 Analyse Key Factors Driving Global Business Environment

Global Business Environment

Table of Contents
INTRODUCTION....................................................................................................................3
TASK 1............................................................................................................................................3
P1 Analyse key factors of cost, market, environment and competition that drive global
commerce and trade................................................................................................................3
TASK 2............................................................................................................................................5
P2 Explain the complexity of Strategic challenges faced by Organisation when operating in
global environment supported by specific examples..............................................................5
TASK 3............................................................................................................................................6
P3 Evaluate the influences of globalisation on organisational governance and leadership,
culture, structure and functions..............................................................................................6
P4 Evaluate the influences of ethical and sustainable globalisation on organisational function
................................................................................................................................................9
TASK 4............................................................................................................................................9
P5 Evaluate the different ways decision making can work effectively in a global context...9
P6 Determine and articulate the various routes to internationalisation an organisation may
adopt including key barriers.................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Globalisation is an activity through which World is becoming interconnected due to which
the trade and cultural exchange is increasing. It is used to define the growing interdependency of
the World’s cultures, populations and economies by exchanging the goods, services, technology,
people, information and investment. Through globalisation the movement and exchanges are
increasing all over the planet (Durst, Bruns and Henschel, 2018). It also helps in increasing the
interaction with different populations and regions around the World. Globalisation gives various
benefits such as access to new cultures, spread of technology and innovation, lower cost of
products, access to new talent, international recruiting, higher standard of living and managing
employee immigration (Rendtorff, 2019). The report is based on Global business environment in
which the discussion on analysis of key factors which can drive globalisation, strategic
complexities associated with operating in global environment, how global market influences
organisational culture, structure and functions and influence of globalisation on organisational
decision making and strategy is explained. The Company which is chosen to accomplish the
project is Sasol, it is a fast growing chemical and energy organisation headquartered in
CapeTown, South Africa.
TASK 1
P1
For operating the business in International Market it is necessary to determine the cost
which could incurred while establishing the business in Target Market and also analyse the
market, environment and competition level in global market. It is important for Sasol to conduct
the research and analyse the Market environment in order to identify the problems and issues
which they can face while operating business in Target Market. By conducing the competitor’s
analysis Sasol can gain information related to the number of competitors available in the Market
which can influences the performance and growth of the Organisation. The Driving forces of
globalisation are technology, political, market, cost and competitive. Sasol is expanding its
business operation in order to increase the growth and profitability of business. Expanding
business globally helps in adopting new and latest technology which helps in improving the
productivity and functioning of Company. Globalisation also helps in building the relationship
with other governments in which the firm is operating their business. Sasol also gets access to

new market in which they can target new customers and provide their services to them. New
Target market provides great growth opportunities to company which also increases the
profitability and productivity of Firm (Lee and Klassen, 2016). For further understanding the
global influences on Organisation, pestle analysis is conducted through which Sasol can identify
the external factors that could affect the performance and growth of Organisation. Pestle analysis
is a tool through which company can gain the information of the external forces that influences
the firm directly or indirectly.
Political factors includes governance system, political instability, changing policies,
taxation and many other forces which could affect the performance and productivity of Sasol. It
is important for the Organisation to identify the political factors that could influence their
performance before expanding business in global market. The Company have its presence in
other International Market so if any changes in political environment can affect the functioning
of business. Company must assess the political instability of the country in which they are
operating business as high political instability provides stable business environment.
Economical Factors also influences the business operation of Sasol, it is necessary to
identify the economic forces such as inflation, saving rate, interest rate, foreign exchange rate,
labour market condition and several other forces. Sasol must focus on the Country’s economy
which is increasing as it provides growth opportunity to firm due to which the performance and
profitability of business also enhanced. The Organisation must also know the GDP rate of the
Country as it helps in making the long term strategies due to which company can sustain in
Market for long run.
Social Factors includes the forces which are related to the community, society and
customers. The Forces which are includes in the social factors are consumer spending patterns,
equality and power distance, demographic trends, societal norms, etc. The Organisation provides
value to their customers by raising their quality of life and providing better services to customers.
It is the responsibility of company to focus on attracting more and more customers by offering
valuable products and services to customers.
Technological factors include the forces which can also influence the performance of
business. Sasol is adopting new technology in order to improve their customer experience and
also providing better services and quality products to people (Gabryelczyk and Roztocki, 2018).
The Company has launched its continuous improvement program in which they have digital