Global Business Environment: Challenges, Digital Impact and PESTLE

This essay provides an overview of the global business environment, focusing on the concept of globalization and the factors influencing it, including political, cultural, sociological, geographical, and technological aspects. It employs PESTLE analysis to evaluate the impact of external factors on organizations. The essay discusses the driving factors of globalization, such as improved transportation, cultural exchange, technological advancements, workforce availability, and minimal trade barriers. It also examines the impact of digital technology on globalization, highlighting the soar in digital flows and the sharing of information across borders. Furthermore, the essay addresses the challenges and complexities that globalization brings to organizations, such as employee immigration management, international recruitment, tariffs, and local job loss. The essay concludes with recommendations for companies like SASOL Ltd., emphasizing the importance of understanding local markets and minimizing export charges for cost efficiency, ultimately suggesting that generating employment in targeted countries can create a positive impact. Desklib offers a variety of resources, including past papers and solved assignments, for students studying business and related fields.

GLOBAL BUSINESS ENVIRONMENT

INTRODUCTION
Global business environment refers to the
problems or challenges as well as opportunities
present in the international markets for a business
firm or organisation. It is important for a business
organisation to know about the relevant business
environment before entering into global markets.
Many businesses get recognition in the world due
to globalisation.

Concept of globalization
Globalisation refers to the process of
starting to influence or operating business
operations in international market by a
business or organisation. Many businesses
get recognition in the world due to
globalisation. It is basically selling of
products and services of a business in the
new global markets which helps in
boosting and advancing their economy.
Globalisation provide many great
opportunities and use of foreign resources
to the new businesses.

FACTORS INFLUENCING
GLOBALISATION
• Political
• Cultural
• Sociological
• Geographical
• Technological

PESTLE ANALYSIS
This framework is used by different organisations or industries to evaluate the
impact of external factors which can affect the organisation
• Political
• Economic
• Social
• Technological
• Legal
• Environmental

DRIVING FACTORS OF
GLOBALISATION.
• Improved Transportation
• Cultural Exchange
• Change in Technologies
• Easy availability of Workforce
• Minimal trade barriers

IMPACT OF DIGITAL TECHNOLOGY
UPON GLOBALISATION
Advancement of the digital
technology and its introduction in the
global economy has influenced the
globalisation in various ways.
Involvement of digital technology
has caused soar in digital flows
where transmitting information, ideas
and innovation are being shared
across boarders with high pace

CHALLENGES AND COMPLEXITIES
GLOBALISATION BRINGS TO AN
ORGANISATION
There are many advantages of the globalisation but on the other hand there are many
challenges which are faced by the different organisations while carrying out business in the
global markets.
• Employee Immigration management
• International Recruitment
• Tariff's and export charges
• Local job loss

RECOMMENDATION
• After the brief discussion of the SASOL Ltd. and its operation in global market,
it is recommended for the company to focus more on understanding the local
market of other countries and the environment of the relevant industry.
Company should analyse and focus more on the countries which have minimal
export charges for maintaining cost efficiency in the organisation (Smith, Burke
and Ward, 2020). This will help the company to grow more and earn good
profits in those countries. Company can make a good impression on the targeted
countries by generating employment for the people of that country.

REFERENCES
• Berman, S. and Dalzell-Payne, P., 2018. The interaction of strategy and technology in an era of business re-
invention. Strategy & Leadership.
• Bhagra, A. and Sharma, D.K., 2018. Changing paradigm of employability skills in the global business world:
A review. IUP Journal of Soft Skills, 12(2).
• Husa, J., 2018. Advanced introduction to law and globalisation. Edward Elgar Publishing.
• Jiang, M. and et. al., 2020. Sustainable development of the business environment in smart cities: a
hierarchical framework. Kybernetes.
• Kasemsap, K., 2018. Mastering business process management and business intelligence in global business.
In Global Business Expansion: Concepts, Methodologies, Tools, and Applications (pp. 76-96). IGI Global.