Report: Global Business Environment Analysis and Recommendations

This report provides a comprehensive analysis of the global business environment, examining key drivers such as market trends, cost factors, and competition, along with the impact of international trade laws and digitalization. It explores the complexities of globalization, including challenges related to supply chain management, quality control, and international logistics. The report includes a PESTEL analysis to assess political, economic, social, technological, environmental, and legal factors influencing businesses. Furthermore, it offers recommendations for overcoming these challenges, emphasizing the importance of a well-defined business plan, ethical standards, and effective supply chain strategies. The conclusion highlights the significance of globalization for business growth and revenue generation, while acknowledging its inherent complexities and the need for proactive management.

Global Business
environment

Table of content
• Introduction
• Analysis of key driving factors of globalisation
• Globalisation drivers related to cost, market and
competition
• Evaluation of digitalization impact on globalisation
• Evaluation of challenges and complexities related to
globalisation
• International trade law
• Pestel analysis
• Supply chain management and its complexity
• recommendation to overcome from the complexities
• Conclusion
• References

Introduction
Globalization is the exchange of goods and services at
global scale level from one country to another. This is
the process through which business organization
expand their business at global level and operate their
for effective exchange of goods and services in order
to generate higher revenue. In this process economy of
the world work together to share goods and services.

Analysis of key driving factors of
globalisation
Key drivers are some factors which impact the
performance and strategies of business, in context
to globalisation that the various drivers which
impact the global Business performance and
achievements, such as market, trade, cost,
competition, FDI and economical integration and
other government policies are some key drivers of
globalisation.

Conti.....
International economic integration- This is the type of
action or regulations selected by the global Business
community of participating countries in order to
remove discriminating trade barriers from the
participating countries. Along with the implementation
of some cooperation and coordination theme. This is
the type of trade agreement among the participating
country of global market, which can be considered as
a trading blocs and it further classified as custom
union, common market, free trade and economic
union.

Conti.....
Trading blocs
This is a type of legal agreement among the participating
government country, under which the trading barriers is can
be reduced for organisations which perform under the
reason of intergovernmental area. For example the southern
Africa custom union which is one of the oldest trade blog
helps to easily trade among the participating countries with
the facilities of reduce trade barriers. So for the SASOL
and all other business entities of South Africa this is one of
the leading driver of globalisation which has to be monitor
and coordinated by the organisations to reduce risk and
extract benefits.

Conti......
Foreign direct investment- This is one of another
globalisation driving factor because that is the mode
of globalisation for various business entities, that is
involving ownership of the company in foreign
country business entities.

Conti......
International business and trade- International
businesses or trade is the selling of goods and
services across National borders along with the
sharing of knowledge and skills. That is one of
important driver of globalisation, because these
business entities increase the connectivity among the
global market and also impact the Business
expansion plan of company according to their growth
and development along with competitive strength.

Factors in relation to cost, market,
environment and competition
• Other than the government policies and
international business laws there are some other
some more important key drivers of the
globalisation in business. Such the changing
market trends and requirements, the high
competition of market and the cost of products,
services and supplies. All these factors lead the
business activities to grow at international level for
meeting the competitive wages by increasing the
market segment utilising the cost values and
foreign resources.

Evaluation of digitalization impact on
globalisation
• Digital technologies- the innovation and further
more improved digital technology development is
supporting the globalisation by helping the
business entities to make the best quality products
at lower price. Because that is providing the
information technology and tools which helps to
manage the production and processing function
within the organisation at low cost, by removing the
cost of labour, removing the extra wastage of
resources and time.

Evaluation of the challenges and complexities
globalisation brings to the organisation
International trade law and its impact
The international trade law as involving the different
rules and regulations in context to the goods and
services international supply or trading. These rules
and regulations vary from country to country and
product to services.

Conti....
• GATT- this one of the international trade supporting
agreement which is done among the 23 countries,
involving the international trading support law and
regulations. according to which the participating
countries can conduct easy trading with the eliminated
trade barriers. The leading political changes in this
agreement create complexity and challenges for global
Business entities.
• Tariff barriers- this is the type of government legal
barrier between some countries and geographical reason.
Involving the higher rate text application for import and
occasionally export.