Global Business Environment - SASOL Limited

Added on - 21 Feb 2021

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Global Business Environment
Table of ContentsINTRODUCTION...........................................................................................................................3PART 1...........................................................................................................................................32. Driving factors of globalization..............................................................................................44. PESTLE analysis of an organizational context.......................................................................65. Challenges of globalization and the strategic challenges for an organization........................76. Recommendations in order to reduce these challenges...........................................................8PART 2............................................................................................................................................81. Explanation of the culture, structure and governance of an organisation. By usingMcKinsey's 7S model in the organisational context...................................................................82. For applying Hofstede's dimensions of culture to determine that how organisation has beenaffected......................................................................................................................................103. Evaluation of ethical and sustainable factors about organization within the global market.114. Factors influenced decision making within the global context.............................................115. Assess which strategic expansion route the organization imply and explain its advantagesand disadvantages.....................................................................................................................12.......................................................................................................................................................13CONCLUSION.............................................................................................................................13REFERNCES................................................................................................................................14
INTRODUCTIONGlobal business environment is defined as an environment which operates in different sovereigncountries, with factors exogenous to the home environment of an organization, influencingdecision making on resource use and capabilities. As, today’s world is becoming fully digitalizedand highly competitive, so operating a business on a global level enable company to expand theirmarket share and size in an innovative or creative way as well as allow them to survive for alonger period of time among competitive marketplace (Tian and Martin, 2014). However, thereare various factors which impact over global business i.e. legal, political, social, technologicaland economic, thus in order to cope with these company develops a productive strategy forattaining high productivity. This report is based on SASOL Limited, which is one the reputedand branded South Africa based company which deals into energy and chemical. In this study, itinvolves overview of the term globalization and its driving factors as well as influence of digitaltechnology upon them. Moreover, application of PESTLE analysis to evaluate the challenges ofglobal business environment. Furthermore, implication of McKinsey 7’s model, Hofestededimension model to determine firm’s potentiality in attain profit margin is also discussed here.PART 11. Concept of globalizationIt is the term which is widely used by most of the organization in today’s innovative andcompetent business environment as it lead firm to acquire high level of profitability andproductivity ratio. However, globalization is the process of international integration arising frominterchange of world views, products, ideas and other aspect of culture. Along with this, itinspire company to expand their market share with the optimum utilization of resources in anoperational and effectual manner. In regard of SASOL limited, as they desire to enlarge theirmarket size to various countries like Canada, Mozambique, Gabon, Australia in order to acquirebest positioning among existing marketplace. Hence, the idea of globalization encourage them toadapt innovative or latest technology as well as novel idea into their business operation and
function for attaining increased level of sales growth and profit margin. (Lamm,Tosti-Kharas andKing, 2015) Therefore, globalization provide enormous platform for various job which improvesthe living standard of people in an appropriate way as well as it enrich economy of nation.Therefore, it an integral element for an organization like SASOL who seeks for an opportunity togrow and also to enlarge their proficiency in an impressive and productive style.2. Driving factors of globalization.In global business environment there are various kinds of factors which influencecompany’s decision making positively and negatively as well as its potentiality to attain highlevel of proficiency ratio. However, some of the driving forces which impact SASOL’s decisionmaking ability are explained below:Cost factor: This is regarded as the very crucial component in the process of globalizationas it consists labor, environmental cost, tax payment, short term or long term investmentand may more that impact over SASOL business function. However, they put their corefocus over cost of production, shipping price as they deals in delivering various kinds ofchemicals globally which help them to accomplish their objective impressively.Marketing factor: In recent years, there was a huge misinterpretation regarding price amongdomestic market yet they provided enormous opportunity to wide range of audience forimproving their welfare productively (Williams, 2014). Thus, in context of SASOL they analysesmarketing condition and based on that they make a corrective course of action by hiring bestpersonnel, novel ideas that lead them to improve overall performance as well as acquire highlevel of satisfaction from clients or employees.Competition factor: As per the current scenario of industry, there is high level ofcompetition among companies which becomes somewhat difficult for SASOL to gainbest positioning with marketplace. Hence, SASOL takes an initiative to adapt innovativetechnologies or skills which enable them to cope with arising threat and also to gaincompetitive advantage.Environment factor: It is widely using concept among consumers as they all are preferringecofriendly products in order to be safe and preventive from hazardous diseases. Therefore,
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