Global Business Environment - Sasol Assignment
Added on 2021-02-19
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Global BusinessEnvironment
INTRODUCTIONGlobalisation means expanding the business activities at global level. The business developsglobal relationship to do their business activities globally. The major reason of globalisation aretechnological changes and requirement of products.In order to increase the revenue andproductivity globalisation helps the organisation to get into global market. The study will givebrief regarding SASOL company which is a chemical firm founded in the year 1950 , situated inSouth Africa. The income the firm has generated is 3.11 billion dollar. SASOL company is arapidly growing firm which have expanded internationally. Further the study will explainregarding the elements that directs globalisation and the advantages, difficulties also in what wayit effect globalisation. Further the study will also state in which way the globalisation effects theorganisation structure and function and contains how the decision-making effects in globalcontext.LO1P1 Factors driving globalisationIntroduction to concept of GlobalizationThe term globalization refers to expanding the business internationally by incorporatingand interchanging one countries government, business and technologies with another. Sasollimited company is among the leading chemical company located in South Africa and haveexpanded its business in the countries like Mozambique, Canada, Australia and Gabon. Thecompany is also targeting other countries for expansion for its business . For growinginternationally globalization can help the company to analyse their strengths and opportunities inthe market globally that can differentiate the company from other companies by innovativetechnologies, creative skills or by modifying the strategies for the continuous growth andsustainable development of the company globally. (Acs, Szerb and Autio, 2015)Driving factors of GlobalizationThere are various drivers of globalization that can help Sasol limited in order to growinternationally includes challenges related to market, cost, technology, competition etc.Technological challenge : Technology plays a very important role in this modern era ofgrowing economy. In order to grow globally Sasol limited company can innovate the
technology by introducing the technology that can change gas into liquid that is (GTL)technology that will result to cost reduction, increase profitability, decrease waste, lessmanpower, less transportation cost.Political challenge : Through liberalization Sasol limited company can trade the businessin the global market without the intervention of government rules and regulations thatwill result to reduced tariffs and the company can regulate the market all over the worldthat will lead to increase in the business internationally. (Amankwah-Amoah, J., 2016)Drivers of markets:- Through globalization the company Sasol limited can expand themarket not only nationally but also at international level. The best way for the growth ofdomestic market is globalization the company which will lead to increase in theopportunities for growth increases sales with less transaction cost, business risksdiversifies.Increase in competition : With globalization the competition increases worldwide.Sasollimited company can achieve this advantage by providing unique products, bylowering the prices, by providing quality of services, by optimizing the resources whichwill lead to high increase in productivity and increase in exports and imports in order toachieve the growth of the business internationally.Environment drivers : In order to grow internationally the SASOL limited companyneed to change the production process according to the changing environment (Cavusgiland Knight, 2015). With an emerging new digital era, company must use new technologythat creates positive impact on its performance by creating recycle management system orby creating eco friendly products such that it will result to reduction of waste as well aspollution. In order to gain sustainability of the product, SASOL limited need to change itspolicies as per the environment to achieve the growth of the company worldwide.Significant impact of digital technology upon globalisationTechnology plays an important role in expansion f business at global level. Technologyhas brought a revolution in th global economy and now the technology is among the key factorthe affects the strategy of the company. Digital technology has played a major role inglobalisation. Digital technology has globalised the world, these helps all the countries topromote their business in more ethical ways. Globalisation created new market opportunities for
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