Global Business Environment: PESTLE Analysis, Tech Impact & Challenges

This report provides an overview of the global business environment, defining it as the environment encompassing various sovereign countries and factors external to an organization's home environment. It explores the concept of globalisation, highlighting the increasing interdependence of cultures, economies, and populations through cross-border trade, technology, and information flow. The report includes a PESTLE analysis, examining political, economic, social, technological, environmental, and legal factors influencing businesses. It identifies key drivers of globalisation, such as technological, political, demographic, and competitive forces, and discusses the impact of digital technology on facilitating global business operations. Furthermore, the report addresses the challenges and complexities that globalisation presents to organizations, including higher investment costs, payroll and compliance issues, and difficulties in global expansion. Recommendations are provided for overcoming these challenges, such as implementing the latest technologies to improve efficiency and reduce production costs. The report concludes that organizations should conduct thorough market research to understand key trends, customer needs, and external factors before expanding internationally.

Global business
environment

Table of content
 INTRODUCTION
 Concept of globalisation
 PESTLE analysis
 Key driving factors of globalisation
 Impact of digital technology upon globalisation
 Challenges and complexities globalisation brings to an organisation
 Conclusion
 References

INTRODUCTION
 Global business environment is defined as the environment
that includes different sovereign countries with having
factors exogenous to the home environment of an
organisation.
 It influences organisational decision-making that are related
to resources, capabilities that are used in business.

Concept of globalisation
Globalisation is defined as the process through which the
world is become interconnected with each other.
It is the term which is used to describe the growing
interdependence of worlds culture, economy, population as
well as cross boarder trade of goods and service, technology
and flow of people, investment and information.

PESTLE analysis
 Political factors
 Economic factors
 Social factors
 Technological factors
 Environmental factors
 Legal factors

Key driving factors of globalisation
There are different drivers of globalisation which has been
explained below-
 Technological drivers
 Political drivers
 Demographic drivers
 Competitive drivers

Impact of digital technology upon
globalisation
In current business environment, technological advancement and
innovation is happened at very fast rate that facilitates global
business as well as help business to operate their business
operations across nations boundaries in efficient manner.
 Reduce cost of transportation and communication
 Enhances emergence at global level
 Limited to specific country and require high investment
 Impacts on employment

Challenges and complexities globalisation brings to an
organisation
Global business environment is related with the interaction and link of
local as well as international market conditions with which the
company operations gets influenced. Their are different factors which
are present in the market that makes the influence on the business
decisions and also strategies are also made on that basis only(Kokodey,
Gnezdova and Lomachenko, 2018).
 Higher investment cost
 Payroll and other compliances challenges
 Global expansion difficulties

Recommendations on how such
challenges can be overcome
 As there are various challenges as well as difficulties are faced by
the organisation to conduct business operations at international
level.
 It is recommended to SASOL Limited implements latest
technologies in business that helps business to perform business
operations in efficient manner.
 As technological cost is high but it provides long-term profitability
to business. Through using latest technology organisation can
reduce the cost of production.

CONCLUSION
 As per above report, it can be concluded that global business environment is
related to conducting business operations and provide organisational products and
services across national boundaries.
 Before expanding business at international level, organisation conduct market
research to analyse the key trends of specific market, customers needs and
demands and various other external factors that can impacts business performance
and functionality in positive as well as negative manner.

References
 Kokodey, T., Gnezdova, I. and Lomachenko, T., 2018, October. Modeling the global business
environment based on polycyclic theory. In The International Science and Technology
Conference" FarEastСon" (pp. 487-499). Springer, Cham.
 Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
 Bhagra, A. and Sharma, D.K., 2018. Changing paradigm of employability skills in the global
business world: A review. IUP Journal of Soft Skills. 12(2). pp.7-24.
 Alshare, K. and Sewailem, M.F., 2018. A GAP ANALYSIS OF BUSINESS STUDENTS'SKILLS
IN THE 21st CENTURY: A CASE STUDY OF QATAR. Academy of Educational Leadership

References
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 Sinay, J., 2019. Safety management in a competitive business environment. CRC
Press.
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 Osiyevskyy, O., Shirokova, G. and Ritala, P., 2020. Exploration and exploitation
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Thank-you