Global Business Environment Report: Challenges and Recommendations

This report provides an overview of the global business environment, defining it as the non-controllable interactions impacting a company's operations across different countries. It introduces globalization, emphasizing its role in integrating global economies through trade, technology, and investment. The report delves into the driving factors of globalization, including cost, environment, market, and competition. It applies a PESTLE analysis to assess factors influencing business operations, focusing on political, economic, and technological aspects. The report identifies strategic challenges of globalization, such as ethical business practices and legal compliance, and offers recommendations for overcoming these challenges. The conclusion highlights the crucial role of globalization in organizational growth and success.

Global Business
Environment
(Part- 1)

Table OF Content
 Introduction
 An introduction to the concept of globalisation
 An explanation of the driving factors of globalisation
 PEST/LE analysis
 Complexity of strategic challenges of globalisation
 Recommendations on how to overcome these
challenges
 Conclusion
 References

Introduction
Global business environment can be defined as
the non-controllable international and local
interactions that impacts on the way a company
operates (Popescu, 2013). It is the environment
of different sovereign countries which includes
factors exogenous to home surroundings of
company that influence decision making on
utilization of resources and capabilities.

An introduction to the concept of
globalisation
Globalization can be defined as the process of integrating the
economies and people of countries all over the world. It is the
growing interdependence of cultures, populations and economies,
bought about through cross-border trade technology, products and
services, information, people and flows of investments.

An explanation of the driving
factors of globalisation
Different factors are available that drives globalization such as
technological advancements, cost, market, economic integration,
competition, environment, trade and investment etc. These driving
factors of globalization provides advantage to business entity in
acknowledging the environment at global level and its related aspects
in an appropriate way (Ferraro and Briody, 2017).

Contd....
Cost: It refers to the opportunity related to global scope with
sourcing efficiencies that depicts cost differentials among
distinct countries (Groşanu and et. al., 2015).
Environment: This factor is associated with laws and
regulations made by government which are different in each
country. These are related to the laws that are made to limit
trade in cross-border country.

Contd...
Market: It is the another factor that drives globalization which
is related to fulfillment of needs and demands of customers in
an effective manner (Hamilton and Webster, 2018).
Competition: In current scenario, the competition in market is
very high in each sector. This is related to competition that a
company will face from rival firms which are operating in
similar sector.

PEST/LE analysis
PESTLE analysis is a tool that
helps companies in analyzing
the factors that impacts on
operations and strategies of
company. operations of SASOL
Limited (Khilji, Tarique and
Schuler, 2015).

Contd...
Political factor: The long term profitability of SASOL Limited is
impacted by political factor.
Economic factor: Strong economic condition of South Africa provides
an opportunity to SASOL Limited to operate its business operations
successfully in the country.
Technological factor: This factor includes advancement in technologies
and technological innovations (Laudon and Traver, 2016).

Complexity of strategic challenges of
globalisation
Strategic challenge can be defined as the critical issues that
an organization face when attaining its aims, objectives,
mission and vision because of inefficient organizational
structure or strategic management. The overall working of
firm can be impacted by strategic challenges of
globalization while operating its business in new market
(Adekola and Sergi, 2016).

Contd...
Ethical business practices: This is one among the challenges faced
by organizations while running its business operations globally
(Cassidy, 2016).
Legal and regulatory structure: Each nation has its own laws and
different regulations of governing business. Compliance with
those laws and regulations is a strategic challenge for companies
like SASOL Limited when operating business at global level.

Provide specific recommendations on how
to overcome these challenges
Each organization face some challenges when operating its
business at international level (Boshyk, 2016).
Company should adopt ethical practices in its business and
ensure that all the employees a work ethically within firm as
this helps company in maintaining good image in market and
attaining long term sustainability.