Global Business Environment

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Analyse key factors of cost, market, environment and competition that drive global
commerce and trade................................................................................................................1
TASK 2............................................................................................................................................1
P2 Explanation of complexity of strategic challenges that has been faced by organisations
while operating their functions in global environment...........................................................1
CONCLUSION................................................................................................................................3

INTRODUCTION
The global business environment is described as an environment containing characteristics that
are endogenous to the organisational environment in different self-governing nations and
influence the decision-making process on use of resources and skills (Rönnberg, 2017). Simply
said, the global environment is referred to essentially as an overall environment in which an
organisation operates. This notion comprises a variety of components, technology, culture,
politics, geographical location and economic standing.
TASK 1
P1 Analyse key factors of cost, market, environment and competition that drive global commerce
and trade
Globalization is referred to basically as a formative exchange between different sorts of countries
involving commodities, technology, products, services and information (Leke, Signé, and
Initiative, 2019). The globalisation factor leads to the influence of a corporate environment in
general. A country efficiently benefits from several kinds of elements, including increasing per
capita income, job possibilities, easy resource availability and more. Globalization is mostly seen
in the market for energy, capital, commodities and gold. Thus, the free trade movement of goods,
information, technology, services and data is an easy part of globalisation process
Market Factor: Over the past several years, saturation has been noticed in the home
market, offering commercial organisations excellent opportunities to develop their organisations
worldwide. In this case study, SASOL can successfully achieve significant market share with the
support of worldwide company expansion (Kurniawan, Christiananta, and Ellitan, 2018).
Moreover, it is crucial for the firm to analyse effectively the actual wants of its clients, so that
they may best meet all aspects of consumer demand and efficiently.
Cost Factor: It is a truth that in every country there are certain cost variances. Costs lead
to materials, sales and production determination. Therefore, in order to develop its commercial
activities internationally, SASOL needs to examine efficiently the whole cost aspect. Because of
volume shipping the total shipping cost, the profitability of the firm has been reduced.
Competition: In an international market there is a wide spectrum of rivalry as there are
many organisations. Competition is one of the main factors in any environment. competition.
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Thus the efficient diversification of SASOL's operations in other relevant areas is crucial to raise
the overall competitive edge. In addition, it is important for businesses to use the technology
regularly to improve the efficiency of both the organisation and its staff. It is also crucial for
organisations to offer their personnel with formative training that will assist them minimise their
waste.
Environmental Factor:
Environmental considerations are referred to as an environment in which businesses
operate. There are numerous kinds of environmental aspects, including political factor, social,
legal and technical component, that effectively impact globalisation concepts (Singh, and Jha,
2018). SASOL managers need to create strategies and associated policies that can quickly
identify the variables that contribute to environmental changes. By doing so, the corporation may
fulfil its business functions best feasible in the worldwide market. It helps SASOL not only to
boost their overall efficiency and profitability but also contributes to the general development of
the company.
Significant impact of digital technology upon globalising business operations
Globalization has effectively encouraged progress in technology quickly. This element is
one of the most important driving factors for globalisation. Technological advances contribute to
compelling businesses, together with market sizes, to raise their total sales economies.
Transportation costs and communication which lead to global supply of raw materials and other
associated inputs are effectively reduced as a result of technical advances. The corporation may
effectively promote globalisation through the use of technology inside the organisation.
Furthermore, both buyers and sellers may simply deal in a time and place as requested with the
use of information technology (Štrukelj, and Gajšt, 2019). This will make it easier and more
efficient for them to accomplish their work. Business units can use the tools, websites and
software to assist them reach the next level of their business. So it becomes vital for businesses
to take use of digital technology in order to acquire greater worldwide benefits. It also helps
them to introduce fresh ideas to the company.
According to the above evaluation, a wide variety of components has been analysed to
impact the operation of businesses. SASOL was also told that the firm needs a country's total
market environment to be assessed adequately. With this, people may quickly analyse the legal
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