logo

Global Business Environment: SASOL limited

   

Added on  2021-02-21

13 Pages3997 Words43 Views
Global BusinessEnvironment
Global Business Environment: SASOL limited_1
Table of ContentsINTRODUCTION...........................................................................................................................3PART 1............................................................................................................................................3Concept of globalisation.............................................................................................................3Driving factors of globalisation..................................................................................................4Significant impact of digital technology upon globalization......................................................4PESTLE analysis of an organisational context...........................................................................5Challenges of globalisation and the strategic challenges for an organisation.............................6Recommendations.......................................................................................................................6PART 2............................................................................................................................................7Explanation of culture, structure and governance by using McKinsey's 7S model....................7Apply Hofstede's dimensions of culture to determine that how organisation has been affected8Evaluation of ethical and sustainable factors about organization within the global market.......9Factors influenced decision making............................................................................................9Strategic expansion routes as well as advantages and disadvantages within the organisation.10CONCLUSION..............................................................................................................................10REFRENCES.................................................................................................................................12
Global Business Environment: SASOL limited_2
INTRODUCTIONGlobal business environment refer to societal as well as task environment that isinfluenced by external or global forces such as technological forces and global competition.These global forces affect the decision making process of business due to turbulence oruncertainty across global country (Bititci, Cocca and Ates, 2016). For the better understand ofreport SASOL limited company has been selected which is fast growing energy and chemicalcompany. It is basically situated in South Africa and has expanded its operations in variouscountries like Canada, Australia, Mozambique and so on. This report cover following topic suchas key factors that drive globalisation. Evaluate strategic complexities associated with operatingin global environment. Moreover, analyse global market that influences structure, function andculture of an organisation. Further, influence of globalisation on decision making strategy oforganisation are covered in this report. PART 1Concept of globalisationGlobalisation refer to the integration of market with global economy for the easy importand export of good and services. Due to the interdependence and increase in cross borderexchange has enhanced the living standard of people in terms of exchange of culture, flow ofinformation and investment. It has lead to advancement in technology and created huge jobopportunities across national and international borders. In context to SASOL limited, keeps onexpanding its energy and chemical business which include various product like crude oil, naturalgases, pharmaceuticals as well as electronic material that is promoted to various country toretain the profitability of company. Moreover, there are various multinational corporations thatget huge advantage due to globalisation as it reduces the operation cost due to manufacturing ofproduct with cheap labour and raw material and access the global market significantly (Daley,2012). Further, it has made the outsourcing easier which is done by company to get the qualityproduct and remove the constraint associate with trading. It can help the respective company tomaintain the homogeneity or uniqueness in brand in various countries that help the company tobuild the goodwill via brand recognition. Hence, it is essential for firm to analyse all the externalfactor like stable political condition and culture of other geographical regions before indulge intotrading activities or diversification of brand from one place to another.
Global Business Environment: SASOL limited_3
Driving factors of globalisation These are the essential factors that contribute in the globalisation process and affect thefunctioning of business. Some of the driving factors of globalisation are defined below:Innovation: With the change in trend and preferences of customer and the demand toadopt latest technology in order to expand globally has rapidly increased (Elbanna, Andrews andPollanen, 2016). Nowadays company not only update their existing technology but also believein adoption of new innovation for the sustainable development in global market. Herein, SASOLlimited needs to cater changing preferences of customer in order to gain competitive advantageand attain long term sustainable development. Competition factor: Globalisation has lead to the emergence of various industry that hasexpanded their business globally. Most of the companies takes the advantage of their economiesof scale due to which they produces the large amount of product at cheap rate and earn profitableamount out of it. In relation to, SASOL company needs to analyse the strategy adopted by theircompetitor and can hire skilled manpower to build a strong root in the various areas and performtheir operations wisely. Additionally, company needs to install latest technology to enhance theirperformance and achieve better position. Significant impact of digital technology upon globalizationDigitalisation has lead to tremendous wave in term of innovation with the help ofadvancement in latest technology that has increased the inter connectivity among variouscountries. Digital media has helped the company to gather enormous amount of data and gainsustainable competitive advantage (Alkhafaji, and Nelson, 2013). It include online platformwhere are goods and services or the value is delivered to customer with the help of electronicmedia. Herein, SASOL limited with the help of its website deliver all the relevant information tothe public along with that through social media company can promote its offering and get theresult at real time. Further, globalisation has lead an affirmative impact that has made the tradingeasier because all the dealings takes place via smartphones or laptops. It has bridged the gapbetween buyer and seller due to which respective company can prepare the unique plan and bringinnovation to maximise business via digital solution. Thus, digitalisation has managed the cost ofbusiness, carry on day to day transaction effectively. Unlike traditional business digitalmarketing helps to gain the result in real time due to which business can make effective decision
Global Business Environment: SASOL limited_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Unit 18 - Global Business Environment: PESTLE Analysis, Key Drivers of Globalization, and Challenges Faced by SASOL
|14
|1462
|411

Global Business Environment: SASOL ltd. PESTLE Analysis, Impact of Globalization, Digital Technology, Challenges and Recommendations
|12
|1518
|83

Global Business Environment - Sasol Assignment Solved
|12
|3817
|125

Drivers and challenges for globalization in Global Business Environment
|10
|3030
|164

Unit 18 – Global Business Environment : Assignment
|15
|4780
|552

Global Business Environment: Challenges and Strategies for SASOL
|14
|4318
|151