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 then examines the significant impact of digital technology on globalization, including its effects on communication, information access, and business operations. It also evaluates the challenges and complexities that globalization presents to organizations, such as cultural differences, supply chain management, and international trade laws. The report concludes with recommendations to overcome these challenges and a discussion of the importance of strategic adaptation in a globalized world. References are included for further study. This report is designed to provide a thorough understanding of the global business landscape and its implications for businesses operating internationally.

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.