Global Business Environment Analysis: Key Factors and Challenges

This report provides an analysis of the global business environment, focusing on key factors such as globalization, cost considerations, and market dynamics. It examines the strategic challenges faced by organizations like SASOL Limited, including legal regulations, resource scarcity, skill gaps, and the impact of digital technology. The report delves into the complexities of international business, providing insights into how companies can navigate these challenges and leverage opportunities for growth and expansion. It also provides the importance of analysing the key factors and challenges for the SASOL Limited and how it can be beneficial for its business to grow and expand.

Global Business Environment
(Task 1
P1&P2)

Table of content
• Introduction
• Analyse the key factors which drive globalization
• Complexity of strategic challenges faced by organisation
• Conclusion
• References

Introduction
It is essential for an organisation to understand the concept
of global business environment so that it does not get
affected from the challenges from it. It is important for
SASOL Limited to analyse the key factors which drive
globalization and there are various complexities which can
influence by global environment.

Analyse the key factors which drive
globalization
Globalization refers to the global integration of international trade, culture,
information technology and investment. It helps to an organisation to expand
its business across the world. SASOL Limited can use this concept so that it
can capture more market share. Various key factors of globalization are as
follows:
• Cost factor: It plays important role in globalization and
SASOL Limited try to reduce it. It has involve:

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Key factors of market drivers are as follows:
• To enter into new market it is essential for corporation to
analyse per capital income so that standard of living of
persons can be know by it. It can help SASOL Limited to
determine price of liquid fuels.

Complexity of strategic
challenges faced by organisation
There are various challenges which can faced by an organisation from
globalisation. An advisor of SASOL Limited, it is important for company to
analyse the issues so that it can expand its business in various nations. These
challenges are as follows:
Laws:
In globalisation company have to follow various laws and regulations as
per the need of different countries.

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Shortage of resources: It is also a challenge which has faced by company in
globalisation. For example, if SASOL Limited wants to start its business in a
country than it seen that there is scarcity of specific liquid which is used to
make chemicals. In that situation it cannot operates its business in that
country so it can make proper strategy which help it to enter in new nation.

Lack of skill
It can be a challenge for a company if it expand its business
in various nations. Skills of people is different from country
to country. For example, If SASOL Limited want to start its
business in a new nation and it found that there are lack of
those people who have proper knowledge about chemicals
and its products. In that case it cannot take advantage of
globalisation.

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Digital technology: It can be a challenge for an organisation if it does not
have latest technology. For example, if SASOL Limited want to start its
business in a country and it found that people of that nation does not know
how to use new equipment's which are used in energy business. An advisor
of company can give proper advise to board of director that this factor can
properly analysed so that corporation can take advantage of globalisation.

Conclusion
As form the above presentation it has analysed that there are various types of
key factors and challenges faced by an organisation from globalization.

References
• Nishitani, K. and et. al., 2012. Are firms' voluntary environmental
management activities beneficial for the environment and business? An
empirical study focusing on Japanese manufacturing firms. Journal of
environmental management. 105. pp.121-130.
• Osterwalder, A. and Pigneur, Y., 2010. Business model generation: a
handbook for visionaries, game changers, and challengers. John Wiley &
Sons.

Thank you