Factors Driving Global Commerce and Trade

INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................4
P1 Analyse key factors of cost, market, environment and competition that drive global
commerce and trade.....................................................................................................................4
Covered in PPT............................................................................................................................4
P2 Explain the complexity of strategic challenges faced by organisations when operating in a
global environment supported by specific examples...................................................................4
Covered in PPT............................................................................................................................4
PART 2............................................................................................................................................4
P3 Evaluate the influences of globalization on organizational governance and leadership,
structure, culture and functions....................................................................................................4
P4 Evaluation of influence of ethical and sustainable globalization on organizational functions-
......................................................................................................................................................5
P5 Different ways of decision making that helps in working effectively in globalization........11
P6 Determination of various routes to internationalization organization may adopt................11
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 Analyse key factors of cost, market, environment and competition that drive global commerce
and trade
Covered in PPT
P2 Explain the complexity of strategic challenges faced by organisations when operating in a
global environment supported by specific examples
Covered in PPT
PART 2
P3 Evaluate the influences of globalization on organizational governance and leadership,
structure, culture and functions

Globalization is increasing day by day. It affects organizational governance, leadership,
structure, culture and functions. Globalization affects organizational governance through peace
and stability or directly. Change in economy, business, life and community directly affects the
organizational governance. If international corporation is not effective then it leads to effect the
global governance. Globalization affects the organizational governance in various ways.
Globalization affects the culture of various places. In this, cultural values of different countries
are exchanged. Characteristics of cultural globalization are convergence of business and
customer culture between different countries all around the world. It also helps in growth of
international communication. It is also said that exchanging culture values is positive influence
of globalization.
Through market and customer base globalization affects the management and leadership of the
organization. Leadership in the market totally depends upon the customer base and it also helps
in maintaining market position. With the help of customer base company is able to know its
position in the market. Global leadership is important for company in order to increase it
profitability as well as it also helps in recognition of brand or company.
Organizational structure is very important for all types of businesses in globalization. Specially it
is important for such companies which are having its business in other countries such as
multinational corporations. Globalization put impact in the organizational structure such as
change in communication. Communication plays and effective role in the organization. If there
in no proper communication among employees and management then it leads to conflict.
Globalization leads to increase the competition among employees and competition among
businesses is related to product and service they are offering. Company can increase its market
share by offering cheap products in the market. It helps company in positive way but company
needs to maintain its profitability.
P4 Evaluation of influence of ethical and sustainable globalization on organizational
functions-
McKinsey 7S model-