Understanding the Global Business Environment: Factors and Challenges

This presentation provides an overview of the global business environment, highlighting key factors that drive globalization such as cost, market dynamics, competition, and environmental considerations. It includes a PESTLE analysis, examining the political, economic, social, technological, legal, and environmental factors impacting businesses operating globally. The presentation also addresses the complexities and strategic challenges faced by organizations, including organizational governance, leadership, culture, political and economic complexities, international trade law, global supply chain management, language barriers, and managing global teams. The conclusion emphasizes the importance of understanding these external factors for creating value and serving customers effectively. Desklib offers a range of solved assignments and study materials to aid students in grasping these concepts.

Global Business
Environment

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Table of Contents
• Introduction
• Key factors driving globalization
• Pestle analysis
• Complexities of strategic challenges
• Conclusion
• References

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Introduction
A business is referred to the organisation
which is engaged in any commercial,
industrial or professional activities. The main
purpose of the business organisations is to
create value for the customers in return of
earning profits. It is very important for the
organisations to be aware of the external
factors which are very important for the
organisation.

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Factors that drive globalisation
 The global business and trade needs to understand and assess
the nature, costs of international business operations,
environmental factors, competition among the players and
more. By analysing these factors an organisation can be able
to grab benefits from the global business operations
(Gaganis, Pasiouras, and Voulgari, 2019). In context of
SASOL, the various key factors are discussed below:
 Cost
 Market
 Competition
 Environment

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Cost
Cost- The cost factor is related to the total expenditure
which carries from nation to nation and also is essential
for the accomplishment of the higher advantage of the
business organisation globally.

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Market
Market- This is the key factor which is very important fro
the organisation and the marketers pay attention on the
current market and what is been changing from the past
years. Basically it is a comparison of the market from the
previous years.

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Competition
Competition- As increase in the globalisation in the world, there are
the4 chances of the high competition in the market in order to
operate businesses at the global level. The competition is also high
at international level.

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Environment
Environment- This is the key factor which is an
important aspect for the organisation as it is related
to the environment forces which can impact the
organisation where it is operated globally. It is very
important for the SASOL to manage all the external
factors in order to perform the various operational
activities of the organisation.

PESTLE Analysis
Pestle analysis is a useful tool that is exploited by corporate firms to
acknowledge the impact and influence of external factors available
in the environment. These factors may include political, social,
economic, technological, legal and environmental factors.
• Political
• Economical
• Social
• Technological
• Legal
• Environmental
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Complexity of strategic challenges faced by the
business organisation
• Organisational governance
• Leadership
• Culture
• Political complexities
• Economic complexities
• International trade law
• Complexities of global supply chain
• Language barriers
• Managing global teams 10

Conclusion
From the above PPT, it is concluded that the business organisation is a separate entity where it conducts the
commercial, industrial or professional activities in order to create value and serve to the customers. It is very
important that the organisation may undertake the external factors which can influence the operations of the business
organisation the business environment is the related to the external environment which can impact the enterprise.
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References
• Hasan, M.M.,and et.al., 2019. Green business value chain: A systematic
review. Sustainable Production and Consumption, 20, pp.326-339.
• Hassan, M.M. and et.al., 2021. Retention Approaches of Millennial at Private Sector:
Mediating Role of Job Embeddedness. Global Business Review, p.0972150920932288.
• Heymann, M., 2019. The changing value equation: Keeping customers satisfied while
meeting bottom‐line objectives in the service industry. Global Business and Organizational
Excellence, 38(6), pp.24-30.
• Hung, S.W. and et.al., 2021. Inclusion in global virtual teams: Exploring non-spatial
proximity and knowledge sharing on innovation. Journal of Business Research, 128, pp.599-
610.
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