Global Business Environment

Global Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
1. Concept of globalisation.....................................................................................................1
2. Driving factors of globalisation..........................................................................................2
3. Significant impact of digital technology upon globalization.............................................2
4. PESTLE analysis of an organisational context..................................................................3
5. Challenges of globalisation and the strategic challenges for an organisation....................4
6. Recommendations in order to reduce these challenges......................................................5
PART 2............................................................................................................................................5
1. Explanation of the culture, structure and governance of an organisation. By using
McKinsey's 7S model in the organisational context..............................................................5
2. For applying Hofstede's dimensions of culture to determine that how organisation has been
affected...................................................................................................................................6
3. Evaluation of ethical and sustainable factors about organization within the global market.. .7
4. Factors influenced decision making within the global context..........................................8
5. Strategic expansion routes as well as advantages and disadvantages within the organisation.
................................................................................................................................................8
CONCLUSION..............................................................................................................................10
REFRENCES.................................................................................................................................11

INTRODUCTION
Global business environment is defined as an environment which operates in different sovereign
countries, with factors exogenous to the home environment of an organization, influencing
decision making on resource use and capabilities. As, today’s world is becoming fully digitalized
and highly competitive, so operating a business on a global level enable company to expand their
market share and size in an innovative or creative way as well as allow them to survive for a
longer period of time among competitive marketplace (Alkhafaji and Nelson, 2013). However,
there are various factors which impact over global business i.e. legal, political, social,
technological and economic, thus in order to cope with these company develops a productive
strategy for attaining high productivity. This report is based on SASOL Limited, which is one the
reputed and branded South Africa based company which deals into energy and chemical. In this
study, it involves overview of the term globalization and its driving factors as well as influence
of digital technology upon them. Moreover, application of PESTLE analysis to evaluate the
challenges of global business environment. Furthermore, implication of McKinsey 7’s model,
Hofestede dimension model to determine firm’s potentiality in attain profit margin is also
discussed here.
PART 1
1. Concept of globalization
It is the term which is widely used by most of the organization in today’s innovative and
competent business environment as it lead firm to acquire high level of profitability and
productivity ratio. However, globalization is the process of international integration arising from
interchange of world views, products, ideas and other aspect of culture. Along with this, it
inspire company to expand their market share with the optimum utilization of resources in an
operational and effectual manner. In regard of SASOL limited, as they desire to enlarge their
market size to various countries like Canada, Mozambique, Gabon, Australia in order to acquire
best positioning among existing marketplace. Hence, the idea of globalization encourage them to

adapt innovative or latest technology as well as novel idea into their business operation and
function for attaining increased level of sales growth and profit margin. (Amran, Lee and Devi,
2014) Therefore, globalization provide enormous platform for various job which improves the
living standard of people in an appropriate way as well as it enrich economy of nation.
Therefore, it an integral element for an organization like SASOL who seeks for an opportunity to
grow and also to enlarge their proficiency in an impressive and productive style.
2. Driving factors of globalization.
In global business environment there are various kinds of factors which influence
company’s decision making positively and negatively as well as its potentiality to attain high
level of proficiency ratio. However, some of the driving forces which impact SASOL’s decision
making ability are explained below:
 Cost factor: This is regarded as the very crucial component in the process of globalization
as it consists labor, environmental cost, tax payment, short term or long term investment
and may more that impact over SASOL business function. However, they put their core
focus over cost of production, shipping price as they deals in delivering various kinds of
chemicals globally which help them to accomplish their objective impressively.
Marketing factor: In recent years, there was a huge misinterpretation regarding price among
domestic market yet they provided enormous opportunity to wide range of audience for
improving their welfare productively (Bititci, Cocca and Ates, 2016). Thus, in context of SASOL
they analyses marketing condition and based on that they make a corrective course of action by
hiring best personnel, novel ideas that lead them to improve overall performance as well as
acquire high level of satisfaction from clients or employees.
 Competition factor: As per the current scenario of industry, there is high level of
competition among companies which becomes somewhat difficult for SASOL to gain
best positioning with marketplace. Hence, SASOL takes an initiative to adapt innovative
technologies or skills which enable them to cope with arising threat and also to gain
competitive advantage.
Environment factor: It is widely using concept among consumers as they all are preferring
ecofriendly products in order to be safe and preventive from hazardous diseases. Therefore,