Global Business Environment: Challenges and Opportunities for SASOL Ltd

Global Business
Environment

Contents
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................4
P1- Evaluate the key factors of cost, market, environment and competition which drives global
trade and commerce.....................................................................................................................4
M1- Critically evaluate the impact of key factors upon the global business environment in
terms of opportunities and challenges..........................................................................................5
P2- Discuss about the challenges and complexities faced by the organisation when they
operate in the global environment................................................................................................6
M2- Evaluate the strategic challenges and risks faced by the organisation when the firm
manages their supply chain flow..................................................................................................7
D1- Critically evaluate what are the complexities and opportunities faced by the organisation
in the global business environment..............................................................................................7
P3- Evaluate the influences of globalisation on organisational governance and leadership,
structure, culture and functions....................................................................................................8
P4- Evaluate the influences of ethical and sustainable globalisation on organisational
functions.......................................................................................................................................9
M3- Critically evaluate the influence of the globalisation when the firm applies appropriate
theories and models which relates to the organisational structure and culture. ........................10
P5- Evaluate the different ways of effective decision making in an organisation when the firm
function in the global environment............................................................................................11
P6- Determine and articulate the various routes to internationalise an organisation with
including the key barriers...........................................................................................................12
M4- Critically evaluate the key barriers in doing business internationally...............................13
D2- Critique strategies that can be adopted by the organisation when they operate in the global
business environment and also make valid recommendations of how they should adapt their
organisational structure and decision-making processes...........................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Globalisation refers to that environment where the companies are operating on the international
level. Generally, it is the term which increases in the flow of goods, services, people, capital and
ideas across international boundaries (Gogokhia and Berulava, 2021). Through globalisation, the
companies can find lower cost-ways to produce the goods and creates a large variety of choices
for the consumers. It enables the firms to increase the intensity of research and development,
innovation and capital in the output. If the firm wants to compete with their old or existing
products in the global market, it is the best way for them. In this report, we will discuss about the
challenges and the opportunities faced by the SASOL Ltd when they enter on the global level.
MAIN BODY
P1- Evaluate the key factors of cost, market, environment and competition which drives global
trade and commerce.
There are some factors that drives global trade and commerce and these are discussed below-
 Cost drivers- It is the basic factor that drives global trade and commerce. As
through this, the firm can creates a different identity in the market and can exploit
differences in the factor costs for the product development, manufacturing and
sourcing in different parts of the world. To maintain a better competitive edge in
the market, SASOL Ltd has to keep their prices low as compared to others. As
everyone knows that the price is the only factor that every consumer focuses. And
it becomes a complex situation for the firm when they compete in the global
market (Brondoni, 2018).
 Market drivers- It is the only factor that every firm concentrates about who are
their competitors and where they are providing goods to the consumers. If the
firm competes in the global market, it provides many opportunities to them for
their growth or expansion. As the domestic markets become more saturated, there
are many organisations who chooses to compete in the global market rather to
compete in that market. To maintain a competitive edge in the market, SASOL
Ltd has to connect to the remote areas of the globe and has to emerged with the
needs of the customers. Through this factor, the firm can attain high levels of

trade, competitive diversity and an interdependence which increases their
potential for the industry globalisation.
 Environment drivers- The environment factor leads to increase the global
uniformity and creates a regular interconnection with them. This environment
factor provides a positive as well as negative impact to the global trade and
commerce. As through this factor, SASOL Ltd can produce a chemical reaction
which is generally occur in water or atmosphere and it may be less harmful than
other chemical reactions. As the firm takes use of soil and living organisms also
which helps them to utilize the hydrolysis and conjugation to degrade the
chemicals. The environment factor can disrupt trade as when the climate changes,
it directly influence the supply, transport and distribution chains infrastructure of
the firm. Overall, it may decrease the productivity of all the production factors
and result in output losses and a decrease in the volume of global trade of them.
 Competitive drivers- Competition can improve the productivity and international
competitiveness of the business. Through the competition, the firm can able to
maintain their edge in the global market and also provide benefit to the customers.
If SASOL Ltd has to compete in the market for their customers, they has to lower
their prices, higher the quality of goods and services, greater the variety and
requires to do more innovation in their chemical products. Through this driver, the
firm can raise their goodwill across different nations (Martínez-Mora and Merino,
2020).
M1- Critically evaluate the impact of key factors upon the global business environment in terms
of opportunities and challenges.
The key factors of cost, market, environment and competition drives global trade and commerce
but the key factor of environment influences the global trade as well. Through the cost drivers,
the firm can creates a different identity and can easily compete in the market. And with the
market drivers, the company can attain high levels of trade and a competitive diversity among
the competitors. If SASOL Ltd produces their chemical product with the use of soil and living
organisms, it creates a less harmful product than others. And the firm has to be careful about the
climate changes when they produce their product.