Global Business Environment: Factors, PESTLE Analysis, and Influences on Structure, Leadership, and Culture

This report explores the global business environment, covering topics such as factors related to cost, market, environment, and competition, PESTLE analysis, and influences of globalization on structure, leadership, and culture functions. It also discusses the impacts of ethical and sustainable organizational practices. The report focuses on SASOL limited, a multi fast-growing gas and chemical energy company based in Cape Town, South Africa.

Global Business
Environment
Table of Contents

INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
PART A.......................................................................................................................................................3
INTRODUCTION PPT...............................................................................................................................3
P1. Factors related to cost, market, environment and competitions.........................................................4
P2. PESTLE Analysis..............................................................................................................................5
PART B.......................................................................................................................................................7
P3. Influences of globalization on structure, leadership and culture functions by applying many models
.................................................................................................................................................................7
P4. Influences of ethical and sustainable organizational..........................................................................9
P5. Ways to influence decision making.................................................................................................10
P6. Key barriers internationalization along with various methods.........................................................11
CONCLUSION.........................................................................................................................................12
CONCLUSION PPT.................................................................................................................................13
REFERENCES..........................................................................................................................................14

INTRODUCTION
Global business environment defines that technology should be changed very rapidly way
in an micro external environment factors which should be a undertake a new business to take
some decisions in the business organizations (Bocken, Boons and Baldassarre, 2019). It is also
helpful for long-term profitability and productivity in the business organizations to complete
their utility services, resources and core competencies which will helpful to their weaknesses,
opportunities and threats within the business environment. This report consider that SASOL
limited is a multi fast growing gas and chemical energy which is based in Cape town South
Africa. This report covers various topics which are named as different methods of global market
sector influences of these functions, ways of decision making in operation making global
contexts, different routes international areas are highlighted in this report and last
recommendations and various ways that company overcome those challenges and task in the
global business expansion.
MAIN BODY
PART A
INTRODUCTION PPT
Global business environment may be described that they function of social culture and
one of which is impacted their global influences and these influences are technical forces,
competiveness, rules and regulations to their business environment. Many reasons which are
related to global business environment such as a company development, transactions and other
factor which is described or encouraged operation in marketplace (Cavallo, Ghezzi and Guzmán,
2019). This topic cover in SASOL limited is a fast growing as chemical energy in South Africa.
This is concerned plan which they should extend their businesses to other country also that the
all factor are should be covered to perform their functions in their global environment. Many
wide range of factors that can be developed their business activity and making a decision making
process in business organization.

P1. Factors related to cost, market, environment and competitions
Globalization defines growing interdependence of culture in their population which can
be movement of product or services and new technology have arises and new investment to the
other nations also. It is a process to trade of goods and services so that they can promote or
increased their interaction between customers are other countries people also across the globe
(Cummings, Seferiadis and de Haan, 2020). It is a significant for the business organization that
the political, economic and social culture to increase their demand for Hi-Tech industries and
have a huge profit earning. It is to be influences that overall operation of business environment
and various features which is related to provide some other people's to improve and take
advantage of career availability and so on. Product and services are a part of globalization of
SASOL limited that can successfully increased their effectiveness and efficiency through
programs and provide various solutions to other nations and other locations towards
accomplishment of goals and objectives in business organization that maintain their quality of
services and market share also.
Market factor: It is to be consistent that in domestic economy in their businesses are
enabling to explain some activities of a globe. In case of present study, SASOL limited
determined that they can significant amount of market share and they have a important quality of
services of international sectors diversify. In order to fulfill their purchasing of demand for
efficient manner their operations to analyze all need for customers.
Environment factor: It should be determined that all business environment and relate to
various functions that have a significant impact the globalization which is related to stress or
SASOL limited or PESTLE analysis has to be increased all entire income and their construction
and economic process for business success (David and Eichenberger, 2020)
Cost factor: The type of factor are defined their living expenditure as per their nation’s
volume of resources, technologies, output and their resources are identified. In terms to extend
their global stress all need to be careful that all incomes and revenue are generated so that total
cost of transport should be included.
Competition factor: This type of factor is a used competition from nation to nation and
various tasks are performed in global market. It is very essential that each and every country

have increased their firms day by day and new firm can launch to new product or services as
compared to previous firms into other related field. Moreover, it can play a vital role for business
organization to their technology and increased on daily basis and increase their property for both
firms.
Impact of digital technology for globalizing firm operation
Many penalty are arises related to their technology and many firms are increased their
revenue through the globalization in efficiently manner (Dionisio and de Vargas, 2020) . It is a
more essential factors that technology in the business organization are generate more and more
income in their marketplace. Information technology through consumers can construct any
agreement which is related to satisfy their respective requirements firm can use their goals and
objectives and tasks to be efficient and effective manner so that they can increase their
programming techniques, software in firm are unable towards new stage. It can play a vital role
for the business organization which has to overcome their rivalry and promote to new innovative
ideas to their various functional units.
P2. PESTLE Analysis
PESTLE analysis is a strategic approach so that they can determine their macro
environmental factor which is related to internal and external factor which have directly impact
of business organization. They can also provide their opportunities and threats in their businesses
and play a significant role in business organizations to analyze their capability and challenges
which is related to analyzing opportunity in internationally. SASOL limited is to be analyzed and
macro environment factors are also perform better performance and profitability in their business
organizations. Key PESTLE analysis is different contexts as a limited which are described
below:
Political: This type of factors determines political stability, transactions and various rules
and regulations can play a vital role in order to extend their business externally for both countries
(Ferraro, 2021). Political stability are commit their transaction should be considered that SASOL
limited in a foreign market and establishing new market for their chemical and gas energy which
is related to pattern of business. It is also risky for other country also that they can construct their

major threats for high tech solutions are included in the firm export and import goods and
services.
Economic: It is directly related to economic condition of business whether it is a foreign
exchange market or international marketing. To increase their economic conditions which is
decreasing a profit margin the business organizations and high gross domestic product in UK
industry for limited to extend their businesses and increase their production for their prices a
large consumer to a more income for people (Frenkel, 2019).
Social: Major trends and culture of organization represent to extend the business
internationally for having employee and all values, shared , ethics, morals are plan their business
culture organization of particular country. It is useful for sustainable and gas energy for organic
chemicals and highly support their resources and environmental friendly so can they can grow
their populations have a drive their demands mechanical energy with a highly renewable.
Technological: It should be determined that more and more opportunities and new
technologies are generated through new firm and new country. This type of opportunities is so
limited on the basis for previous product also and more and more customers are attracted in the
firm. They have to expand their product and services with very high advanced technology in
marketplace and SASOL limited are utilized their operations of gas and chemical to meet the
upcoming requirement according to customer expectation in an efficient manner.
Legal: This factor determine all chemical and gas industries which include rules and
regulation has to be followed and SASOL limited also follow rules and restrictions according to
government restrictions to enter into a market is a risky manner and comes with many
consequences on any penalties regarding their employment law for extend their business
internationally (Hite and Seitz, 2021).
Environmental: These types of factor are concern about the environment like carbon
footprint, pollution target and different methods to protect their sustainability environment. The
can follow their structure limited highly to support all environmental friendly activities that can
perform their chemical and gas industry for using new technology. It should be related to water
and air pollution for developed their gas and chemical industries for natural fresh air.

PART B
P3. Influences of globalization on structure, leadership and culture functions by applying many
models
McKinsey 7s model
McKinsey 7s model have a seven elements in the business concern and leadership to
support all management and organization functions to understand their influence of culture,
relationship, government support in the business organization with context to SASOL limited
which are described below:
Strategy: It should be represent that SASOL limited are very important process to
globalization so that all work are should be completed in a proper time and communicate each
and every member for to decide and making a decision for which share holders will be helpful to
maintain the business organization direction towards accomplishment of goals and objectives
(Hansen, Mowen and Heitger, 2021).
Structure: It should be represented SASOL limited adapt their flat organizational
structure which they can transparency from various employee and helps to motivate towards
their capabilities. SASOL limited are divided many various tasks to maintain and build
coordination between employees and process of accomplishment of goals and objectives in an
efficient manner.
Shared values: All the common goals and objectives which enables organizations related
to ethics, morals, beliefs of SASOL limited has an effective communication which will be
beneficial to solve all problems and manage all work to share the values to their innovation and
creativity of employee.
Style: It should be representing that leadership styles like participative, autocratic and
democratic to support all information to extend their firm in the international market (Kraus,
Roig-Tierno and Bouncken, 2019). This leadership style can represent that leaders should
motivate their employee for equal participation and decision making process and new
technologies are developed in the marketplace.

Staff: Staff should be represented that highly qualified member in business organizations
are divided into various different departments according to employee participation. SASOL
limited required a proper training of development to develop their skills and knowledge of a
particular employee to increase profitability and productivity in an efficient manner.
Skills: Skills should be represent that different department are highly efficient and all
production department have a valuable for each and every employee have a special skills to serve
their member in their organization has diversified their competitive advantage towards goals and
provide an opportunity for firm (Metaxas and Koulouriotis, 2019).
Hofstede culture dimension model
This model should be represented that all culture on social factors from a particular
country recognized suitable framework of SASOL limited in the international market. This
model compare different ways of different department of particular organization and culture of
industry for employees of a specific country are defined with context to SASOL limited which
are described below:
Individualism vs collectivism: Individuals means that culture of organization and
depend upon their workers welfare and development as a comparative advantage where
collective means that structure of organization of all team members supported for the business
success growth within each other. SASOL limited firm has adopted individual culture because
they can cultivate for all work and are available on basis of individual performance and have a
less capability within their team members.
Long term orientation versus short term orientation: It should be described that long
term orientation is a display of culture of organization support all related long term factors and
short term orientation support that all roles and responsibilities as they can focus to traditional.
SASOL limited employer focus short-term s compared to long-term goal because Israel limited
both are thinking about rapidly result (Mnif Sellami and Gafsi, 2019)
Uncertainty avoidance index: It should be representing that this index should be
represent culture of the organization to promote a new innovation and creativity to determine
highly innovations are should be conducted. SASOL limited recognized that low degree of firm

are highly innovative with many goods and services and also capability of hardworking for each
and every employee.
Power distance index: This type of industry determined that culture of organization has
less they are distribution part among employee have a high power distance or not with
organization support all team members or not they can instead of equal power distribution for
successive limited for graphical structure to support their inequality for higher respect.
Indulgence versus restraint: This type of organizational culture is that all employer pay
attention towards accomplishment of goals and objectives or not and restraint organizational
structure follow all rules and regulations according to their firm to focus successful orientation.
SASOL limited has added their intelligence culture because all employees are recognized to give
search jobs satisfaction of job where they can increase their profitability and productivity in an
efficient manner (Nicholson and Kurucz, 2019).
P4. Influences of ethical and sustainable organizational
Globalization which is related or which is connected to international marketplace to
influence all economy and cultural life, values, ethics, moral, beliefs and so on. It should be an
extra task that should be arrived and represent institutional and government alternative that will
be negative impact of globalization. Human resource developments has an effective look for
change management and in case of SASOL limited have influence of firm and sustainable
competitive advantage through globalization within which the organization functions are
operated.
Sales and marketing department: This department consists that consumer wants and needs
according to customer expectations, their taste and preferences because many consequences of
marketing regulations arises like food poisoning many things are should be arise in their firm so
that each and every customer related to goods and services and increase their brand image of
goodwill in the firm (Oncioiu, 2019). Sales and marketing department choose firms for their
ethical and moral values are there and professional consumers who are acquiring old
merchandise should ensure that all items are correctly purchase for consumers.
Human resource department: Globalization should represent that human resource
department are increased their challenges to task that should be produced to provide many

workers to their motivations and research to recruit, hiring, training and retaining their employee
in the business organizations that would be eliminating sexual abuse child labor is also
emphasizes globalization morals.
Finance department: This apartment considered each and every organization has transactions
which are related to firm should be conducted. In case of SASOL limited is a very significant for
function of the business concern for long-term basis and all principal at its moral values and
straightforward dealing with resistance actions. Various standards related to finance department
or include taxation, long term orientation in which have no complaint which are present internal
and external auditor (Rashidi and Cullinane, 2019)
P5. Ways to influence decision making
Business organization face some major complexity in the strategic decision making
process because globalization have a risk and uncertainty in international marketplace who can
add up their global environment. This nation face many pressures to global market or
international market to running their operations which different firm are required for decision
making process in order to their global environment and different ways to take decisions in
global manner with context to SASOL limited are as follows:
Leadership: Leadership that defines culture of the organization which should be
representing their managers are required to take each and every leadership style like a
democratic, participative and transformations. Manager can earn their loyalty through decision
making process which has to lead their superior performance of workers that international
environment of business success for growth.
Risk handling: Decisions related to their structure of the organization defines that how to enter
the market, how to commercialize their product or service into new market in the international
market place. Risk taking are those which are seeking their requirement of customer expectations
for future years (Taherdoost and Brard, 2019). Manager of SASOL limited uses a risk
management or decision making for purse to maximize their profitability and minimize their
threats to a particular condition which reduce globalization impact in a acceptable manner within
an strategy of organization global market.

Internal diversification of demand: It should be defined that business concern as well
as the globalization has to focus to diversify their business for success growth. When new firm
can enter into new market or established market within their product or services across the world
as well as they increase market share in the international market place. Culture of international
diversification is effective process that will be helpful to SASOL limited to extend their business
in international market place and entered by sustainable competitive advantage to be
accomplished.
P6. Key barriers internationalization along with various methods
Internationalization determines that business organizations to establish their operations
across the globe so that they can import their goods and services to the other market or different
modes to enter into a market or establish market to firm to start their operations. It is also helpful
for complete their sustainable competitive advantage in acceptable manner to assess their market
production and build a brand image (Suresh and Varatharajan, 2019). Key benefits of
internationalization which are described below:
Franchising: Franchising should be determined that new market entry with establishing
new firm for ethical and legal rights to sell their goods and services and to our resident country.
It is beneficial for the firm to they can have a direct messages into international market which
will help into the brand recognition in their marketplace.
 Franchising required intellectual property and the contract law should be conducted.
 To running their business franchise in terms to vision their proper functioning are
required and will benefit that franchise of both the parties by monitoring their franchise
become an integrated part of franchising. It is important part that there is a consistency
for goods and services for selling and concern regarding infrastructure, capital, time,
effort and right kind of people should be required.
 There is a country or franchise that would be which is related to decision making process
for goods and services development and other marketing strategy.
Joint venture: When two or more firm are join together and enter into agreement and agree
to share all profit, losses and resources and all necessary information that should be generated for

a single unit. It is also famed as strategic alliances for both the parties enter into a mutual
agreement to complete their portion objective in acceptable manner.
 Joint venture is a difference between goals and objectives to understand their vision
within an object for both functions making change of mindset of employees.
 Many firms are joined together and being consultants is complicated (Bocken, Boons
and Baldassarre, 2019).
 Many firm join for finance of one party join their financially problem because there was
struggling for other party is not allowed to maintain their capital for future growth of
business.
Piggy backing: It should be defined that more firm are enter into international market and
many firm are there was such a competitive advantage to come together for selling their new
product or service in marketplace. They can exploit their opportunity and positive for both the
firms to increase their function and enter into international market.
 It should be difficult that all firm are handle into a promotion that a marketing activities
and as per the origin which is difficult.
 Manager of the firm in long run have to be controlled to predict piggybacking which can
be expensive and time cost for managers to control over goods and services.
CONCLUSION
As per above information, it has been concluded that globalization play a important part
for success growth of businesses and enter into a new market through their products and services.
Various internal and external factors are taken into a strategic decision making process in
business organization which will also helpful to analyze their competence as sustainable
competitive advantage towards accomplishment of goals and objectives to increase their brand
image. Moreover, many firms have influence to gain their customers in the foreign market and
various modes are reduced that technology have a major influence of globalization and to
communicate customer in foreign market in the internationalization. Different culture of people
together towards a diverse as well as a business environment also improves their profitability and
productivity in an acceptable manner. This report covers several topic such as globalization

leadership culture functions of various models McKinsey 7s model, dimension models at culture
organization, impact of globalization culture, different ways to avoid decision making, various
methods of internationalization, evaluate how to overcome the strategy with multiple
organizations and such recommendations.
CONCLUSION PPT
From the above information, it has been understood that global business strategy and
enable those organizations to expand their business in the international market and to get more
and more opportunity for increase of sales and profit. Moreover, various key drivers in front of
business concern toward international trade in goods and services technology and social factors
play important role to supporting their business to extend firms across the globe.

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