Global Business Environment Analysis: Challenges and Recommendations

This report provides an overview of the global business environment, defining it as the interaction of businesses with shared resources for higher income. It delves into the concept of globalization, emphasizing the integration of economies through the flow of technology, ideas, and services. The report explores the driving factors of globalization, including technological advancements, political liberalization, competitive pressures, and market dynamics. It highlights the significant impact of digital technology on globalization, facilitating global operations. A PEST analysis is conducted, examining political, economic, social, and technological factors affecting SASOL Limited. The report also identifies challenges of globalization and offers recommendations, such as optimal resource utilization and addressing cultural differences. References are provided to support the analysis.

Global Business Environment

Cover Content
 Introduction
 Concept of globalization
Driving factors of globalization
Impact of technology on globalization
Pest analysis
Challenges of globalization
 References

Introduction
Global business environment define the environment where more than two
business venture are interact and coordinated with pool of resources and
capabilities of human resources join together for gaining higher income.

Concept of globalization
Globalization refers to the integrating of various economies which carry out
the flow of technologies, ideas, methods, procedures, products and services
to the global market area. The main center of globalization is networking
and connectivity. The cross border integration have several dimensions
such as social, cultural, political and economic. It connotes the various
things with different people and it represents the brand new world with no
barriers.

Explanation on the driving factors of globalization
Technological drivers – Technological advancements help globalization by
developing it easy for an organization is to provide delivering of required goods
and services across the boundaries.
Political drivers – In the market place, liberalization of trade laws and deregulated
market provide results in reducing of duty and motivating foreign direct
investment in various parts of the world.

Contd..
Competitive drivers – Due to enhancing competition with rival organizations so business
concern such as SASOL limited are free to reach with the international market place and
gaining attention of large number of customers.
Market drivers – At the time of enhancing dripping of domestic markets, then there are
various limitations and restrictions which occurs while acquiring growth.

The significant impact of digital technology upon
globalization
Digital technology have consider to facilitate the globalization. The technological process
has been one of the major forces which driving globalization. In this, technology compel
with business concern which help in being globally in enhancing the economic scale and
market size that are required. Digital technology is the procedure which computerizing
with all the procedure of an organization.

PEST analysis of the organization
Political factor – In this, SASOL limited required to analyze the whole aspects which
includes political stability in Oil and Gas field, military invasion, legal framework which
enforce and trade regulations which are related to various issues or problems. The
company can need to taken care of such aspects at the time of enter in Oil and gas
industry.
Economical factor – This will consist with two factors which involves macro and micro.
SASOL limited affected macro factors such as resource management, pricing policies and
competitive benefits and business operations that can carry out the firm functions in
effective manner.

Contd..
Social factors – It is the external factors which help in analyzing the current trends of the
country. In the context of SASOL limited, there are different forms of social factors
which includes demographic and skills of an individual.
Technological factors – It is determined as the major factor which assist firm in updating
technologies and method in better manner.

Challenges of globalization and the strategic
challenges this represents for the organization
Globalization is the process which explain how different nations people making connection
with each other. It provides both merits and challenges to an organization. The main aim
is to providing high level of opportunities for the development and growth which assist
in improving the standard and culture of the individual. There are various challenges that
are face by company in regard to wellbeing, society, economy and surroundings.

Provide recommendations on how to overcome these
challenges
Optimum utilization of resources – This is important for an organization is to manage and
use their present and available resources which reach with less bearing income and
revenue and adequate production for gaining stability and profitability.
Cultural differences – It is required for company is to maintain culture between their
employees in better manner. Along with this, it is necessary for organization is educate
people and aware about their cultural, social and legal factors through which they can
easily overcome with the issues regarding cultural differences.

REFERENCES
Ferraro, G. P. and Briody, E. K., 2013. The cultural dimension of global business. Upper
Saddle River: Pearson.
Botha, A., Kourie, D. and Snyman, R., 2014.Coping with continuous change in the business
environment: Knowledge management and knowledge management technology.
Elsevier.
Harrison, A., 2013.Business environment in a global context. Oxford University Press.