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The Sasol Limited Organisation

   

Added on  2021-02-19

12 Pages4150 Words329 Views
Leadership ManagementProfessional DevelopmentPolitical Science
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GLOBAL BUSINESSENVIRONMENT
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Table of ContentsINTRODUCTION...........................................................................................................................3PART 1............................................................................................................................................3Introduction to the concept of Globalisation..........................................................................3Driving Factors of Globalisation............................................................................................4The impact of digital technology on globalisation.................................................................5PESTLE analysis of the Sasol Limited..................................................................................5Challenges of Globalisation and strategic challenges of Sasol limited..................................6Recommendations to overcome the challenges......................................................................7PART 2............................................................................................................................................7The explanation of the structure, culture and governing the organisation and applyingMcKinsey's 7s model to overview the organisation...............................................................7Hofstede's dimension of culture.............................................................................................9Evaluating ethical and sustainable factors that affects the company in global market..........9Ethical and sustainable factors affect the decision-making of the company........................10Assessment of the strategic expansion and describing its advantages and disadvantage.....10CONCLUSION..............................................................................................................................11REFERENCES................................................................................................................................1
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INTRODUCTIONGlobal business environment is defined by the environment in which different countriesoperate. There are various factor in the environment which influences their decision making onusing various resources which impacts their capabilities. The global business environment can becategorised into two types of environment such as internal and external(Al-Dhabi 2013). Thisreport will mainly focus on external environment and the companies operating globally has toproperly understood the external environment to operate effectively and efficiently. Thecompany which is analysed in this report is Sasol Limited. This is a company producingchemicals and they operate basically from Sandton, South Africa. German chemist is the onewho built number of plants and they provided bulk of fuel to the military so that they canconduct their operations. This report will cover the driving factors and impact of digitaltechnology and strategic challenges of the company and globalisation. This report will also coverstructure, culture and governance and evaluation of ethical and sustainable factors that theorganisation has to consider in the Global market.PART 1Introduction to the concept of GlobalisationGlobalisation refers to the process in which interaction of companies takes place atglobally. This is very complex and includes various factors which are considered by thecompany at the time of expansion. The scope of globalisation has increased due to up gradationin transportation and communication technologies. In context of Sasol which is considering toexpand their business in Mozambique, Canada and in many countries. So, it is necessary for thecompany to understand all the aspects of globalisation so that the company can expandeffectively. The globalisation involves cross-border movement of various goods and serviceswhich increases the interdependence of the national economy. The Sasol is planning to expandtheir business which is possible with this globalisation. It allows company to move out from theborder of the country and sell their goods in the other countries. The globalisation is beneficialfor the Sasol as it allow them to grow or acquire high market share in specific industry andearning foreign exchange which is beneficial for their parent company as well. This also benefitsthe country where expansion is taking place as it increase the job opportunities and increase theirstandard of living(Alós, Rodrigo and Zacarías2013). The company is required to consider
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available resources of the countries where Sasol is planning to expand and the country whereworkers are ready to work at a reasonable wage rate should be consider. Foreign DirectInvestment (FDI) is define as a kind of investment which is made by the firm or individual in abusiness which is located in another country. Driving Factors of GlobalisationThere are different factors that has derived the concept of globalisation and these factorsare uncontrollable by any firm. These drivers is affecting the potential ability of theGlobalisation over various industries. The factors are described below-Government- The rules and regulations related to the cross border movements which areformed by the government has to be considered while taking a decision to expand in aparticular country. The Sasol is analysing the current trade barrier in the particularcountries which are Australia, Canada etc.Cost- The cost factor is an important driver which affect the globalisation. Thecompanies are required to analyse the cost aspect of the country where company isplanning to produce. The areas where access towards human capitals and the market iseasier need to be selected. The Sasol has analysed the estimated cost of the Australia asthis is the country where they feel they can operate at broad level.Competitors- The presence of number of competitors is required to be consider astheSasol is expanding in Canada and the number of competitors are more so it is notfavourable for the Sasol whereas the Australia where the number of competitor is less soit is favourable.Market- The needs of the customers and the conditions of the markets is necessary toanalyse that expansion will result in growth or not(Barczyk and Duncan2012). The studyof market is necessary for Sasol to identify the region where the products of company ishighly required. The Sasol has analysed that Australia has more demand in comparison ofother countries.Technology- The technology has become advance in the past few years which has resultin improved structure of Global communication and mobility. The Sasol is usingimproved technology which makes company achieving their targeted objective.
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