Analyzing the Global Business Environment: A Project 1 Report

This project analyzes the global business environment, focusing on the concept of globalization, its key factors (cost, competition, market factors, and technology), and the impact of digital technology. It includes a PEST (Political, Economic, Social, and Technological) analysis of SASOL Limited, examining how external environmental factors influence the organization. The project further explores the challenges organizations face in a globalized market, such as political and legal issues and the need to adapt to regular changes. Recommendations are provided to navigate these challenges, emphasizing the importance of focusing on customer demand. The project concludes with a list of references, offering a comprehensive understanding of the global business landscape and its implications for business operations and decision-making.

GLOBAL BUSINESS
ENVIRONMENT
(PROJECT 1)

• Introduction
• Concept of globalization
• Factors of globalization
• Impact of digital technology on globalization
• PEST analysis of organization
• Challenges of globalization
• Recommendation
• References
TABLE OF CONTENT

Global business environment refers to the
environment in different countries which influence the
decision making process and capability of an
organisation. It can be divided into two parts: internal
and external environment.
INTRODUCTION

Globalisation is a process of social, economical, cultural and political relation across global
boundaries. It is an integration of societies across the nation by flow of ideas, opinions,
finance, technologies, information, people and service etc. globalisation is a term which
allows the organisations to expand their business in global market.
CONCEPT OF GLOBALIZATION

Globalisation gives an opportunity to organisations to
expand their business in international market. There
are some factors which attract firms in order to
globalise their activities.
FACTORS OF GLOBALIZATION

These are discuss as under:-
• Cost- In globalisation, cost is being low in some countries. Company want to expand
their business in that countries where cost of production is minimise.
• Competition- Organisations are focuses on competitors who are exists in foreign
countries.
CONTINUE….

• Market Factors- Market factors are deals with taste and preference of customers which
are vary from country to country.
• Technology- Technological factor is essential to attract an organisation towards
globalisation. In international market, there is a use of advance technology which increase
the productivity by reducing cost of production.
CONTINUE….

• Technology play an important role for growth and success of an organisation in
international market. Impact of digital technology on globalisation are as follows:-
• Digital technology is helps eliminate barriers arises in communication.
• It support in minimising cost and maximisation of profit by improving productivity.
IMPACT OF DIGITAL TECHNOLOGY ON
GLOBALIZATION

PEST analysis is an external environmental factor which affects the functions of an
organisation in direct or indirect manner. PEST analysis of SASOL Limited is describe as
under:-
• Political Factor- It includes different factors such as taxation system, trade policy,
political structure and rules and regulations made by government etc.
PEST ANALYSIS OF ORGANIZATION

• Economical Factor- It include national income, inflation and deflation rate, exchange
rate etc. SASOL Limited deals in oil and gas chemicals, prices of oil and gas are changing
time to time which affect business activities of an organisation.
• Social Factor- This factor deals with taste and preference of customers which as
changing time to time and effect on demand and supply of a firm.
CONTINUE….

• Technological Factor- It includes the factors such as technological advancement and up-
gradation in technology. With the help of this factor and satisfy the need of consumers,
car manufacturing industries are updated their technology and launch a mobile
application by which customers can book their order through mobile app. It increase the
number of vehicles as well as.
CONTINUE….

• Globalisation is a technique to expand the business in global area or across the country.
At the time of globalisation, there are different types of challenges and issues faced by an
organisation which are as follows:-
• Political and Legal Issues- The major issue faced by an organisation at the time of
globalise their business is the involvement of political and legal factors.
CHALLENGES OF GLOBALIZATION

• Regular Changes- There is a regular changes arises in demand of customers, technology
and market trends. It is difficult for an organisation to meet with these changes time to
time. SASOL Limited have to operate their business activities in different countries where
prices of fuel is increases or decreases which affect on their profitability and business
activities.
CONTINUE….

• It is important for SASOL Limited to focus on customers demand through which they can
manage their supply of oil and gas in different countries. It helps to eliminate the risk of
changing situation.
RECOMMENDATION

• Grant, D. B., Wong, C. Y. and Trautrims, A., 2017. Sustainable logistics and supply chain
management: principles and practices for sustainable operations and management.
Kogan Page Publishers.
• Groves, C., Frater, L., Lee, R. and Stokes, E., 2011. Is there room at the bottom for CSR?
Corporate social responsibility and nanotechnology in the UK. Journal of business ethics.
101(4). pp.525-552.
REFERENCES

THANK YOU