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

Opportunities
Environment Friendly- To accomplish this
technology factor is used for improve company
process.
Use of safe-production process- Energy and
chemical related products are manufactured after
the completion of overall process in a safe manner.

Challenges
• High in cost- The process of converting raw-
material into finished products is high
• Restricted Entry- Developed country such as
America, United Kingdom, etc. has strict
regulations and this create problems to manage
work.

Strategic challenges faced by organisation while operating
business in global business environment
• Methods to manage and complete
the work within local region and
international platform are
different so sometimes there are
various challenges faced by
management while completing
their work in global business
environment. Some of the major
issue faced by management are
mention as follow:

Strategic challenges faced by organisation while operating
business in global business environment
INTERNATIONAL COMPANY
STRUCTURE.
FOREIGN LAWS AND REGULATIONS

COMPLEXITIES OF STRATEGIC
CHALLENGES
• INTERNATIONAL COMPANY
STRUCTURE- One of the major aim
which is related with respective
organisation considered towards
completion of work according to the
global market

CONTINUE..
• FOREIGN LAWS AND
REGULATIONS- To understand
overall market this is essential for
management of Sasol Limited to
understand about the local laws
and legislations.

EVALUATION OF STRATEGIC CHALLENGES FACED BY
MANAGEMENT
• Economic Stability
• Environmental Risk
• Connectivity

CONCLUSION
With the analyses of above presentation it is concluded that an organisation face
challenges to perform their work in the international market but this is also
important for each business that they start operations among other countries to
sustain in global or international competitive market. So study key factors helps
to complete work in an organised manner.

REFERENCES
• Amankwah-Amoah, J., 2016. Global business and emerging economies:
Towards a new perspective on the effects of e-waste. Technological
Forecasting and Social Change, 105, pp.20-26.
• Belyaeva, Z., 2018. Business environment challenges and trends for
contemporary SMEs in Europe. In The sustainable marketing concept in
European SMEs. Emerald Publishing Limited.
• Chand, M. and Tung, R.L., 2014. The aging of the world's population and its
effects on global business. Academy of Management Perspectives, 28(4),
pp.409-429.