Unit 18: Global Business Environment Report - BTEC Assignment

This report provides a comprehensive analysis of the global business environment, focusing on its impact on business operations and strategic decision-making. It delves into key driving factors such as market dynamics, cost competitiveness, and environmental considerations, highlighting their influence on international commerce and trade. The report examines the strategic challenges organizations face, including international company structures, foreign laws, and regulations, and evaluates their impact. It concludes by emphasizing the importance of understanding these factors to succeed in the global market. The report includes an introduction, detailed sections on key factors, strategic challenges, and a conclusion with references.

Global Business Environment

Table of contents
• Introduction
• Key factors and it drive on global commerce and trade
• Strategic challenges faced by organisation
• Conclusion
• References

INTRODUCTION
The term global business environment is
explained as an environment which exists
in various sovereign countries and it
impacts on the decision-making, operations
and functions of business. In simple terms,
businesses are highly impacted by global
environment due to the uncontrollable
national and international interaction which
influences how an organisation operates
their business in a globalisation market.

Key driving factors
MARKET FACTORS
COST
COMPETITIVE FACTOR
ENVIRONMENT FACTOR

Market factors
• Product life-cycle
• Global Customers

Market factors
• Product life-cycle- For an effective international business plan product-like
cycle perform an important role because it helps management to complete
their work in an effective manner.
• Global Customers- The needs of international market or customer is
different from local products.

Cost
• ECONOMY OF SCALE
• PRICE STRATEGY

Cost
• ECONOMY OF SCALE- ECONOMY OF SCALE- Economy of a country
is the base for completion of task according to decided approach and this
define all project are completed according to the monetary funds.
• PRICE STRATEGY- This is used for complete all work according to the
decided cost-related factors. It help respective organisation for sustain in
market with competitive approach.

Competitive factor
• Monitor global moves of Competitor
• Understand competition from local and international business

Competitive factor
• Monitor global moves of Competitor- From the perspective of respective
organisation, this is identified by management that there are different task
managed and they get competition from various supplier.
• Understand competition from local and international business- This is useful
in completion of work according to competitor move.

Environment factor
• TECHNOLOGY CHANGE- This
is already stated that change in
the geographical conditions
generate problem or issue for the
management of Sasol Limited
because environmental
perspectives of both places are
different.

Opportunities and challenges with analyse of organisation factor
OPPORTUNITIES
• Environment Friendly
• Use of safe-production
process
CHALLENGES
• High in cost
• Restricted Entry