GLOBAL BUSINESS ENVIRONMENT.

GLOBAL BUSINESS
ENVIRONMENT

Table of Contents

INTRODUCTION
Globalisation can be defined by the interaction of people, companies and government
with the outside world. Globalisation includes transfer of products, employees and technologies
to the various nations. It involves cross-border movement of goods, services and capital. The
organisation chosen for this file is Sasol Limited which is a chemical company and its
headquarter established in Sandton, South Africa and the number of plants is built by a German
chemist and engineers which provided fuel to the military which was required to carried out the
activities. This report will define elements that affect globalisation and effect of digital
technology on globalisation. The explanation of organisation culture through McKinsey's 7s and
apply Hofstede's dimensions culture on company. The evaluation of moral and sustainable
components which are to be included in global market and how these factors have impact on the
decision-making. The assessment of strategic expansion route which provide benefit and
negative effect on organisation.
PART 1
Introduction to the concept of globalization
Globalization is that concept that is used to defined increasing economic, social, and
political interrelationship all over the national boarders and cultures. This statement helps in the
free motion of products, services, capital, flow of finance, and people across the world. After the
globalization its become simple for various businesses to operate the activities at global level. In
the context of SASOL limited, as they are expanding their business in various countries due to
which they will be take benefit of it. Globalization term is very beneficial to them because by
expanding their business they can take benefit of others countries business plans, technologist
etc. It assist them to grow its activities in the marketplace so they able to increase their
productivity and profitability. Moreover, globalization is have some advantage or some
disadvantage also which should considered by the SASOL limited before adopting the concept of
globalization. At one side, it helps them to increase their brand value because it helps them to
increase the standard of living in poor and less developed counties by providing employment
options, easy adopt foreign culture and improves accession to goods and services. On the other
side, it can destroy the high developed countries as their ideas and processes can go out the
country. Globalization is an effective term which can be idealistic and sometimes opportunistic
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both, so SASOL limited can adopt this term after considering its both positive and negative
impact on their business(Ahmadi and et. al., 2014)
Explaining driving factors of globalisation.
There are several driver of globalization which affects the strategies formed for the global
market and these are the factor which are responsible for flourishing the globalisation. The major
drivers are described below-
 Government- This includes common product and standard of technology with a kind
regulatory climate and trade polices which are favourable. These all factors are essential
to produce competitive environment due to presence of favourable conditions. Sasol
Limited operates in a favourable trade policies formed by government.
 Competitors- The action performed by the competitors are drivers for competitive
globalisation which formulate interdependence within geographical markets. The changes
in industry, increase in trade and high level of competitive density are the competitive
drivers of globalisation for Sasol Limited.
 Cost- The difference in cost and global scope are drivers for cost globalisation. The
increase in magnitude of marketplace supports the Sasol limited to decrease the price and
provide support to make a competitive strategy.
 Market- These drivers specify that how the pattern of customer distribution develop and
the focus is on emerging of customer needs. The customer of different region require
similar product is a driver of organisation. Sasol limited provide their product to the
region where it is highly demanded.
 Technology- The change in technology is allowing the world to communicate with each
other easily which enhances the trade in Globalisation. Sasol Limited uses new
technology for the process of communication which increases their trade.
The significant impact of digital technology upon globalization
Globalization and technology has a great relation with each other as they are connected
with each other. Technology plays an important role in the expanding of the business because
technology has the power to develop and increase networks of every business throughout the
world. As Sasol limited want to adopt globalization in their business, so the without technology
they can not expand their business in a successful manner. There are various digital technologies
which help them to expand their business, these are described below:-
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