Analysis of the Global Business Environment and Challenges

This report provides a comprehensive analysis of the global business environment. It begins with an introduction to globalization and its key drivers, followed by a PESTLE analysis to assess the political, economic, social, technological, legal, and environmental factors influencing businesses. The report t...Read More

Global Business
Environment

Table Of Contents
• Introduction
• PESTLE analysis
• Analysis of the key driving factors of globalisation
• Evaluation of the significant impact of digital technology upon globalisation.
• Challenges and complexities globalisation
• Recommendations
• Conclusion
• References

INTRODUCTION
Globalisation refers to the concept that where the interaction and integration
has been done among the companies, people and companies at the global
level. The sectors or markets where globalisation is common are credit,
capital, commodity, gold, oil and others. The reason of this growth is due
because of the reason that there is increase in communication and transport
technology, trade and ideas and growth of culture.

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Global Business Environment can be defined as it is the kind of environment
where the business has been done at the global level or at the international.
It is that kind of environment where companies from different countries
come together and trade with each other according to the decided terms and
conditions and with the implementation of proper rules and regulations.

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With the facility of digital technology, the customers and sellers can do the
business at any time and on any place (Abdolvand, and et.al., 2015). In
previous time, the digital technology is restricted to certain areas but due to
globalisation the area and also the network of reaching with larger number of
people has also increased. Now the digital technology has reached to every
kind of businesses

PESTLE analysis
Strategy can be defined as the
means of making changes and
achieving the long-term goals in
the midst of competitive pressures,
complexity and uncertainty.

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Economic Complexity: There has been
problems in predicting the economic factors.
This is the reason why sometimes economic
forecasts proven wrong, it shows that global
economic environment involves a high level
of uncertainty.

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Social Complexity: Due to changes in lifestyle, changes in the demographic
level, consumer preferences, religious beliefs and CSR awareness are the
parameters which create strategic complexity arises from socio cultural issues.
Technological Changes: Different countries adopt technological innovations
at different period of time.

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Environmental Changes: About the need for green operations and
sustainable production strategic complexity arises from the environmental
issues due to increased awareness.
Legal Complexity: In different countries there are different types of legal
systems.

Analysis of the key driving factors of
globalisation
Concept of Globalisation
Globalisation refers to the concept that where the interaction and integration
has been done among the companies, people and companies at the global
level. The sectors or markets where globalisation is common are credit,
capital, commodity, gold, oil and others.

The significant impact of digital technology
upon globalisation.
Significant impact of the globalisation on the digital technology
Digital technology means that using the resources for communication,
information, analysing, creating and effectively finding out in the digital context.
(Benito, and et.al., 2015). Under the digital technology, the use of programming
tools, web tools and software applications has been used in a prevalent manner.

Evaluation of the challenges and complexities
globalisation brings to an organisation
At the global level, with the changing period of time it is required that the
leadership should be changed with the influential manner so that in the
SASOL company that kind of leadership has been implemented through the
personal advocacy, vision and drive and access the resources to build the
strong platform at the international level.

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The physical distance- The main concern related with operating at global level and across
boundaries of different nation is that it lead to increases in physical distance among the main
headquarter or centre of organisation and different branches at various locations. Although
with the advancement in technology and use of various techniques, internet and other digital
communication channel has reduced the barrier of locations and distance but still
maintaining long distance relationship with employees and branch manger of organisations
is difficult which creates issues in decision making and control of operations.

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Unfamiliar culture and language difficulties- The success and effective
performance of any organisation depends on how well it is connected with the
people and customers of that nation or culture.
Supply chain complexity – The another strategic risk associated with expansion
of business at global level is related with managing the supply chain and
distribution network.

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International trade law:
International trade law permits nations to extend their business sectors and access labour and products
that in any case might not have been accessible locally. Because of international trade law, the market
is more aggressive.
Local government law (host country):
Local government laws or host country law mainly include policies, legislations that duly
governs the manner in which organizations are required to conduct its business operations.

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Risk and diversification
In order to make business expansion on global level there are number of certain as well as
uncertain risk that an organisation can face. These risks include political turbulence, availability of
raw material, finance and more.
Supply chain management
Supply chain management is the administration of the progression of labour and products
and incorporates all cycles that change raw materials into end results.

Recommendations
These challenges can be overcome through different kinds of routes.
With the support of manufacturing, licensing, franchising, export and
import, merging and joint ventures. Due to globalisation company has
expanded themselves into different countries and when the company
got the license to enter into another country then its easier to do the
business.

CONCLUSION
It has been concluded from the above study that globalisation environment
plays a very important role in the organisation and also in the business part.
Whenever enter into a new market it is important to analyse about each and
every factor associated with it so that it can clearly defines that whether the
products and services will stand strongly in the market or not

REFERENCES
• Brown, A. A., 2015. Impact of the macro and micro economic environment on business strategy:
a case study on Lonmin Platinum (Doctoral dissertation).
• Ngeche, J., 2017. Internal Factors Influencing Strategy Implementation in the Banking Sector: A
Case Study of the Chase Bank (Doctoral dissertation, United States International University-
Africa).
• Abdolvand, and et.al., 2015. Investigation the effect of market orientation, social media
marketing and international experience on global marketing strategy and company.

Thankyou !!!!!!