Global Business Environment Assignment Help

Analyse the key factors and Determine strategic complexities associated with operating in a global environment.

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Qualification: Higher National Diploma in Business (Level 5)

Unit Number and Title: Unit 18: Global Business Environment

Assignment Title: Analysis and evaluation of an organisation for globalisation

Learning Outcomes:

Task 1
LO1 Analyse the key factors which drive globalisation.
LO2 Determine the strategic complexities associated with operating in a global environment

Task 2
LO3 Evaluate how operating in a global market influences an organisation's structure, culture and functions.
LO4 Evaluate the influence of globalisation on organisational decision making and strategy.

Assignment Brief and Guidance:

Task 1 - Scenario

You are an advisor for the board of directors of ‘SASOL Limited', a fast-growing energy andchemical company, based in South Africa [or insert here a global organisation of your choice].The company has also expanded into Mozambique, Canada, Gabon and Australia, and hope toexpand into other countries soon.

A new CEO has taken over the organisation and has asked you to produce a presentation to theboard of directors to advise them on the concept of ‘Globalisation' and the challenges thiscreates for global businesses trying to enter new markets.

You are required to investigate and explain the key factors that drive globalisation as well as thekey challenges this creates when operating globally. This will be presented by using a PESTLEanalysis to guide you and show analysis of cultural, economic, political and social dimensions.

The presentation should include the following:
1. An introduction to the concept of globalisation.
2. An explanation on the driving factors of globalisation.
3. The significant impact of digital technology upon globalisation.
4. Complete and present a PEST/LE analysis of the organisation.
5. Explain the challenges of globalisation and the strategic challenges this represents for theorganisation.
6. Provide recommendations on how to overcome these challenges

Task 2

Scenario

You required to continue the research on the organisation you have chosen in task one and you are required to evaluate the impact that globalisationhas on organisational structures, cultures and functions. As part of your research you have toinvestigate how globalisation affects decision making and strategy within a global business.This will require that you consider theory (McKinsey's 7S model, Hofstede's Dimensions ofCulture etc) and factors that influence structures, culture and organisational functions in thegiven business. You should relate to the given organisation and demonstrate how their strategyand decisions have been influenced by the factors you have discussed.

The report should include the following:

1. An explanation of the structure, culture and governance of the organisation. Applying McKinsey's 7S model and checklist to illustrate an overview of the organisation.

2. An evaluation of how the above has been influenced by global operations and how the organisation has adapted to operating in a global market. Applying Hofstede's Dimensions of Culture to demonstrate how the organisation has been influenced.

3. An evaluation of ethical and sustainable factors that the organisation has to consider in a global market.

4. Assess how these factors have affected decision making in a global context.

5. Assess which strategic expansion routes the organisation took and analyse both advantages and disadvantages.

Submission Format:

Task 1
The submission is in the form of a 10-minute individual PowerPoint presentation and 5 minutes allocated for questions. The presentation slides and speaker notes should be submitted as one copy (Speaker notes must cover LO 1 and LO2 in detail). You are required to make effective use of PowerPoint headings, bullet points and subsections as appropriate. Your research should be referenced using the Harvard referencing system. Please also provide a bibliography using the Harvard referencing system. The recommended word limit is 1,500 to 2,000 words, including speaker notes, although you will not be penalised for exceeding the total word limit.

Task 2
This must be submitted as a professional report and this should be written in a concise, formal business style using single spacing and font size 12. You are required to make use of headings, paragraphs and subsections as appropriate, and all work must be supported with research and referenced using the Harvard referencing system. Please also provide a bibliography using the Harvard referencing system. The recommended word limit is 2,500 to 3,000 words, although you will not be penalised for exceeding the total word limit.

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Report Consists of Following Table of Index:-

  • Introduction 3
  • Task 1- Presentation 4
  • Task 2- Report 20
  • Structure, Culture, and Governance of SASOL Limited (P3, M3) 20
  • Culture influence in SASOL Limited (P3, M3) 21
  • Ethical and Sustainable factors SASOL Limited has to consider in a global market(P4, M3) 23
  • Ethical and sustainable factors affect decision making in SASOL Limited in a global context(P5, M4) 26
  • Strategic expansion routes SASOL Limited took(P6, M4) 27
  • Conclusion 29
  • References 30

Introduction:- 

The report contains an overview of the organisation SASOL Limited and also shows the structure and culture SASOL Limited maintains to operate their business in a global market. The report also shows how the McKinsey's 7S model can apply to the organisation to improve the performance of the organisation and through Hofstede's dimension model the culture influence the organisation also described. The ethical and sustainable factors are also evaluated on the basis of SASOL Limited. And there is also a description of how these factors affect organisation performance. And at last, there is also an explanation about strategic expansion routes SASOL Limited took to expand their business.

Globalisation is all about being together. It is the way for the people and countries of the world interlude and undisputed. In the current era, many things are being globalised as people from different place can contact with each other. The globalisation also effects on countries as countries are coming together to discuss an economic solution, signing agreements on a different issue, doing business beyond their country and so on making the countries one big global economy and it is also helping to make the international commerce easier (Jones, 2017). The concept of globalisation is based on the rising economic, political and social interaction and interrelation over cultural and political boundaries. Globalisation handles the rising breakdown of trade barriers and the rising integration of the world market. The process of globalisation is urged by the series of an increasing and conjectural quandary in the international division of labour and the global distribution of economic and political power, in the functioning of national states, in global finance and in the fall of the Keynesian welfare state and the established social contract between labour and government. Globalisation is the amplifying and thickening linkages of national economies into a worldwide market for products and services, especially capital. Globalisation wants to remove every national obstruction to the buckshee vibrancy of international capital and this process is quicker and simplified by the supersonic transformation in information technology. Globalisation is not new in the current world but it is modified in the current era (Olssen *, 2017). Thousand years ago people use to go from one place to another to sell their products. And the corporation today uses those techniques in a modified way to conduct their business worldwide. But there is a difference and that is organisations need a license to conduct their business in other countries. Globalisation is being easy in the current era due to technological advancement.

Every product and things are being driven by many factors that influence the product or things in a positive or negative way. Globalisation is also drive by some forces or factors as globalisation is originally an economic activity but it also influenced by many factors positively or negatively including resources and markets, technologies, policies and so on (ALDRICH, 2017). The driving factors of globalisation are discussed by a figure below-

Globalisation success is mainly possible due to an organisation can easily transfer their products from one country to another by ocean shipping. The cost of ocean shipping has reduced for containerization, trunk shipping and due to other efficiencies. As shipping cost for products around the globe is reasonable for organisations the company transfers its products in different countries if ordered. Containerisation makes markets more contestable globally and it is possible for globalisation.

Technologies are a key factor for globalisation as it reduced the cost of transmitting data and communicating information. Organisations now can operate their sectors easily from their main base due to the technological advancement of globalisation.

Globalisation also drives by the economies of scale as the larger the business of an organisation is the lower it's per unit costs for the product is.  Through globalisation the organisation is getting larger.

Tax systems also drive globalisation as many countries engaged in tax competition so that they can attract foreign investment projects and can grow the economy of their country (GOERKE, 2016).

Organisations can easily do their business for less protectionism in different countries. There was a time when a foreign organisation has to issue import license and foreign exchange control but due to globalisation these have been dismantled. The boundaries have opened an average import tax levels have fallen due to globalisation and countries do not have to struggle for their economic growth (Luke, 2017).

Digital technologies are these that we use to store or process data in a few seconds includes electronic systems, tools, and devices. The best ever digital technology is a mobile phone, social media and online portals as peoples from different countries stay connected with each other through these technologies. So technologies have a great impact on globalisation. Digital technology impact globalisation through transportation, information system, and internet and so on (Gobble, 2018).

As technology is advancing day by day people is inventing different transportations includes the steam engine. The organisation in a different country now can transport materials from one country to another by ships and trains. In case if an organisation needs to transport useful products they can transport it by using the airplane, helicopter and also cargo helicopter. This technology greatly has an impact on globalisation.

The information system or technology has reduced the barriers of time and place to do business dill. Organisation uses the World Wide Web and the whole world comes in their hand. Buyers and sellers now make transactions at any time from any place as the banks started online system.

Electronic communication networks like the internet bought new dynamics to the globalisation of businesses. Organisations operate virtual businesses as it has no barriers and policy worldwide. Businesses like Ali Baba, Amazon, eBay has grown faster due to the access of the internet as the internet provides a cheaper way to communicate between the organisation and its consumers no matter wherever they are in the world (Morén, 2017). The consumers can have their product by just ordering and the product will be delivered in their provided home address in time.  Digital technologies like the internet have an impact on globalisation as it helps to do business easier in worldwide.

Technology also has an impact on globalisation with an invention like the telephone and television. People can now learn about different countries culture by staying in the home and they can also communicate at any time with other country people.

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