Report on Global Business Environment: Task 1 and 2 for Business

This report provides a comprehensive analysis of the global business environment, focusing on key aspects such as globalization, its driving factors, and the impact of digital technology. It delves into strategic challenges faced by businesses, along with a detailed PESTLE analysis to assess political, economic, social, technological, environmental, and legal factors influencing business operations. The report further discusses the challenges of globalization, including job mobility and cultural identity, and offers expert recommendations to navigate the global market effectively. Ultimately, the report concludes with a summary of the key findings and highlights the importance of strategic decision-making in a competitive global market. The report also includes relevant references to support the analysis.

GLOBAL BUSINESS
ENVIRONMENT
Task 1 and 2

Introduction
• Global business environment is referred as situation in various sovereign
countries that includes factors exogenous to home environment of firm which
helps in influencing decision making on capabilities and resource use.
• They are classified into internal and external that includes customers, social,
political, legal, cultural, technological.

Concept of Globalisation
• Globalisation is the procedure for integration and interaction among companies,
people and governments globally.
• It has grown because of communication and transportation technology. With rise
in global interactions, it leads to growth in international ideas, trade, culture.
• This is regarded as economic process for integration and interaction of cultural
and social aspects.

Driving factors of Globalisation
• There are various driving factors of
globalization which are described below:
• Cost
• Market
• Environment
• Competition

Significant impact of digital technology upon
globalisation
• Digital technology is defined as use of resources in effective way for creating,
finding, analysing, information and communicating in digital context.
• This includes use of software applications, programming and web tools.
Globalisation has impacted digital technology due to growth, advancement and
key driving forces.

Strategic challenges
• Strategic challenges is defined as pressure that exert influences on future success
of any firm. Challenges are of two types that is internal and external where
internal means within organisation includes lack of materials, failure of
manufacturing process, unskilled employees.
• Similarly, external factors means outside firm that includes financial risk,
technological changes, product changes, societal and market needs and
expectations.

PESTLE analysis
• Political Factors- It is opportunities and pressures which is brought by political
institutions and policies of government that impact business.
• Economic Factors- It is related with economies structure, policies and economy
impact on organisation and its business
• Social Factors- This factors related with attitudes, belief, cultural aspects that
affect demand of company's products and operations.

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• Technological Factors- The technological aspects, barriers, incentives and
innovations that impact business.
• Environmental Factors- When factors related to environmental and ecological
aspects impact business and its activities.
• Legal Factors- It refer law, legislation, regulation that impact business
operations. This includes employment law, consumer protection, health and
safety regulations.

Challenges of Globalisation
• Job Mobility
• Loss of Cultural Identity
• Western Dominance
• Partner With Globalisation Expert

Recommendations
• It is recommended to understand importance of global culture and values. For
operating business in global market, organisation should know about need and
demand of consumer and then they should manufacture for surviving in market.
• Second recommendation is to provide jobs to skilled, knowledge and experience
so that they does not move from developing to developed countries. This aid in
increasing economic growth of business and country.

Conclusion
• From the above PPT it has been concluded that Strategic decisions are essential
for company in order to run their business smoothly into the competitive market.
Globalisation is the procedure for integration and interaction among companies,
people and governments globally.
• There are various key factors for enhancing the international trade as well as
commerce through competition, market, cost and so on for accomplishing
objectives effectively.

References
• Bernhagen, P., Mitchell, N. J. and Thissen-Smits, M., 2013. Corporate citizens
and the UN Global Compact: Explaining cross-national variations in turnout.
Business and Politics. 15(1). pp.63-85.
• Black, J. S., Morrison, A. J. and Gregersen, H. B., 2013. Global explorers: The
next generation of leaders. Routledge.