Factors Influencing the Global Business Environment: A Report

This report provides a comprehensive analysis of the global business environment, focusing on key factors influencing global trade and commerce. It delves into the critical aspects of cost, market dynamics, environmental considerations, and competitive landscapes. The report employs PESTLE analysis to evaluate political, social, economic, legal, technological, and environmental factors impacting organizations. It examines the driving forces of globalization, including digitalization and financial liberation, and highlights the complex strategic challenges organizations face, such as recruitment in new demographic areas, language barriers, cultural differences, payroll management, high investment costs, and difficulties in interpretation. The report references several academic sources to support its findings and provide a robust understanding of the global business environment.

Global Business
environment

Table of content
 Introduction
 Key factors of cost, market, environment and competition affecting global trade and
commerce.
 Pestle analysis.
 Driving factors of globalisation.
 Complexness of strategic objection faced by organisation.
 Reference

INTRODUCTION
 Global business environment is the primary term used to
symbolise the environment essential for the enterprises to
expand their business in the global platform with affirmable
aim to exceed the profit.
 Globalisation is the action taken by the enterprises to
accelerate their business in the global platform while
enriching the supply of goods or services to more and more
customers.
 This approach is used by operating business to enter in the
competitive market while adapting advance technological
responses, quick response to customer or improved adaption
according to the requirement in the global dispensed trading
market (Zajda and Majhanovich, 2021).

Key factors of cost, market, environment and
competition affecting global trade and
commerce.
 Global trading is primarily the export or import of goods or
services intentionally as it support the organisation growth in the
accelerated manner while prolonged occurrence of optimistic
impactThere main dimension in reference to Sasol includes:
 Cost
 Market
 Environment
 Competition

Conti…
 Cost : Since the organisation is expanding in the new organisation, so they need to plan
their budget accordingly as to enter there is need to advance investment for the legal or
political approaches.
 Market : When organisation is expanding their unit in new demographic region, they
must primarily discover their target market before hand to create the competitive
approach (Oramah and Dzene, 2019).
 Environment : It is the major consideration as it accelerates the opportunity or threats
which might influence the strategical decisions of the executives in workforce.
 Competition : It is the prime factor which influence organisation during their global
expansion as pre-existing organisation in same demographic area has more refined
strategy which influences the customer satisfaction in more profiled demeanour.

Pestle Analysis
 It is the strategic tool which are used to analyse the macro
environment which influence the organisation in destructive or
the optimistic manner. This pestle analysis will support
organisation to formulate the decision in more perspective
manner while analysis the actions accurately for the organisation
(Gupta and et. al., 2019). They are :
 Political
 Social
 Economic
 Legal
 Technological
 Environment

Conti…
 Political : They are significant factors which influence the Sasol
organisation in profitable manner as they are the government
segment that shape the organisation which includes tax policies,
stability of old government or new stability due to altered
government. These strong political assembly support growth or
development for Sasol as this stability attracts inventors to
enhance their global platform (Gilbert and et. al.,2022).
 Social : Social factors in the organisation includes population
size, their age or the culture they are following which might alter
the consumers attitude in the marketed for the products or
services offer by organisation. Sasol organisation must analyse
effectiveness of gender their educational level and the standard
that are being followed by the local population.

Conti…
 Economic : They are the economic conditions that
organisation face during its expansion in global platform. It
primarily includes the interest rate, gross domestic product,
level of disposable product or growth and decline graph in the
population economy. It ales includes the interest rate, foreign
exchange rate or the economic cycle (Sabourin and Jabo,
2022).
 Legal : It consist of government wide regulations primarily
health and safety law, discrimination law, employment law
and many more. Government is more focused towards health,
Sasol need to convert their regulations in such a form where
employers mental-well-being is been secure not only their
physical health (Agrawal and et. al., 2022).

Conti…
 Technological : In this epoch the organisation symbolise
the improvement towards the survives or products
provided by altering automation, new product
development or advancement in services delivery. With
the accelerated transport services, Sasol must easily
accessible to deliver the products on customer demand
easily.
 Environment : It primarily includes climatic change,
availability of renewable goods, workplace effectiveness
which is regulated through climate change, weather or
local pollution. These standards have role in influencing
success of the industry in optimistic manner

Driving factors of globalisation.
 Digital standard - Digital approach alters the economical factor
of enterprise across the edge as market and community is created
globally with aim to enhance potential customer satisfaction.
These digital trade develop the new forms in the organisation
which facilitates globalisation in transforming manner.
Digitalisation promote the trading of services and products in
broader area as digital payments have been improved due to
online platform of market.
 Financial liberation - It is the approach used by the organisation
to enrich the profit from the global platform while reducing risk
of consequences. When consideration are taken on accurate
manner that it will benefit the economic consideration for
investors and customers.

Complexness of strategic objection faced by
organisation.
 It must include starring elements and which
are:
 Recruiting in new demographic area
 Language barrier
 Culture differences
 Payroll
 High investment cost
 Difficulty to interpret

Conti…
 Recruiting in new demographic area : Demographic
alteration has exaggerated impact on labour market as early
recruitment is deprive due to unawareness of the education,
their skills and adaptability criteria.
 The old employers need lot of instance to adjust in
environment and their employment cost is also increased as
they have being migrated for the business.
 Language barrier : It is the prime challenge which hare faced
by the organisation during the expansion as local population
must not be able to interpret their concern and vice-versa.

Conti…
 Culture differences : Organisation need to analyse
their food, beliefs or culture choices before hand to
evaluate the strategic polices or action for
implementation according to demographic area need.
When the enterprise don't follow the area traditions this
might reduce the customer interest on product or
services.
 Payroll : Managing overall payroll is a another
challenge that organisation might feel. As there is
chance of error in data entry or misapplication due to
alteration in software in different demographic area.

Conti…
 High investment cost : It is the challenge for the
multinational cooperation like Sasol as there is huge
requirement of capital investment. When setting business in
the developed country, there is accelerated need of substantial
capital due to varied taxes or legal procedures followed in the
demographic part.
 Difficulty to interpret : Since, the outspread of organisation
in global platform lead to contend due to varied alteration in
the norms. These discourse primarily occur for the legal or
banking alteration implemented by organisation according to
advance norms.

REFERENCES
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Nonoxidative Dehydrogenation of Propane over Sn-promoted Mo-Y Zeolite: Catalytic performance and nature
of the active sites. Fuel, 323, p.124350.
 Beumer, C., Figge, L. and Elliott, J., 2018. The sustainability of globalisation: Including the ‘social robustness
criterion’. Journal of Cleaner Production, 179, pp.704-715.
 Finley, S.Y., 2021. Financial literacy, financial liberation: Toward a critical race approach to financial
education. In Financialization, Financial Literacy, and Social Education (pp. 113-127). Routledge.
 Gilbert, D., Malla, N., Pruitt, A., Sorensen, J. and Tribble, A., 2022. Barriers to Prolonged Student Led Civic
Engagement: Utilizing a PESTLE analysis to Create Sustainable College Student Experiences and Activist
Praxis that Withstand Annual StudentTransitions & Attrition.
 Gravina, A.F. and Lanzafame, M., 2021. Finance, globalisation, technology and inequality: Do nonlinearities
matter?. Economic Modelling, 96, pp.96-110.