Global Business Environment

Analysis and evaluation of an organisation for globalisation

Unit 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.

D1 Critically evaluate the global business environment, including the opportunities and challenges faced by organisations.

D2 Critique strategies that can be adopted by organisations operating in a global business environment, making valid and justified recommendations of how they should adapt their organisational structure and decision-making processes.