Unit 18 Global Business Environment Analysis: Factors and PESTLE

This report provides an analysis of the global business environment, focusing on the key factors that drive globalization. It defines globalization as the integration of economies through trade and investment, driven by technological, political, market, cost, and competitive factors. The report highlights the significant impact of the digital revolution on businesses, emphasizing the shift to digital technologies and changing customer expectations. Furthermore, it explains the PESTLE analysis framework, which examines the political, economic, social, technological, environmental, and legal factors influencing an organization's performance. The report provides examples of each factor to illustrate their impact on business decisions, especially when entering new markets or adapting to changing conditions. The report concludes by emphasizing the importance of considering these macro-environmental factors for strategic planning and business success.

Unit 18 Global Business Environment
Prepared By :Ms. Dina Al Natour

LO1 Analyse the key factors which drive globalization

After studying this chapter, you should be able to:
 Definition of globalization
 Concept of globalization in terms of different dimensions (cultural, economic, political and
social)
 What are the factors that drive globalization
 (cost , market, environment , competition, skills )
 The significant impact of the digital revolution
 A PESTEL analysis

01 WHAT IS
GLOBALIZATION?

What Is Globalization?
Globalization is a process of interaction and
integration among the people, companies,
and governments of different nations, a
process driven by international trade and
investment and aided by information
technology. This process has effects on the
environment, on culture, on political systems,
on economic development and on human
physical well-being in societies around the
world.

What Is Globalization?
Globalization is the free movement of
goods, services and people across the world
in a seamless and integrated manner.

What Is Globalization?
Globalization can be thought of to be the
result of the opening up of the global
economy and increase in trade between
nations.
In other words, when countries that were
closed to trade and foreign investment open
up their economies and go global, the result
is an increasing interconnectedness and
integration of the economies of the world.
This is a brief introduction to globalization.

What are the factors that drive globalisation? Different drivers of globalization and
they can basically be separated into five
different groups: Technological drivers Political drivers Market drivers Cost drivers Competitive drivers

What are the factors that drive globalisation? Technology shaped and set the foundation
for modern globalization. Innovations in the
transportation technology revolutionized the
industry. The most important developments among
these are the commercial jet aircraft and the
concept of containerisation in the late 1970s
and 1980s. Finally the rapid growth of the Internet is the
latest technological driver that created global
e-business and e-commerce.

What are the factors that drive globalisation? Technological advancement drives
globalization by making it easier for people,
goods, and ideas to move across borders. For
example, advancements in transportation
have made it possible to move vast amounts
of people and product around the world .

What are the factors that drive globalisation? Political drivers Liberalized trading rules and deregulated
markets lead to lowered tariffs and allowed
foreign direct investments in almost all over
the world. The institution of GATT (General
Agreement on Tariffs and Trade) 1947 and the
WTO (World Trade Organization) 1995 as well
as the ongoing opening and privatization in
Eastern Europe are some examples of latest
developments.

What are the factors that drive globalisation? organisations like the World Trade
Organisation (WTO) promote free trade
between countries, which help to remove
barriers between countries.