logo

The Global Business Environment Assignment - SASOL limited

   

Added on  2020-10-22

12 Pages3415 Words388 Views
Global businessenvironment
The Global Business Environment Assignment - SASOL limited_1
Table of ContentsINTRODUCTION...........................................................................................................................1PROJECT 1......................................................................................................................................1Concept of globalization.............................................................................................................1Driving factors of globalization..................................................................................................1Impact of digital technology upon globalization........................................................................2PEST analysis of SASOL organization.......................................................................................2Challenges of globalization and strategic challenges..................................................................3Recommendations on how to overcome these challenges..........................................................3PROJECT 2......................................................................................................................................51. Explanation of the structure, culture and governance of the organisation through applyingMcKinsey’s 7S model.................................................................................................................52. Applying Hofstede’s Dimensions of Culture to demonstrate how the organisation has beeninfluenced....................................................................................................................................63. Evaluation of ethical and sustainable factors..........................................................................64. Factors have affected decision making in a global context.....................................................75. Strategic expansion routes the organization took and analyses both advantages anddisadvantages..............................................................................................................................7CONCLUSION................................................................................................................................8REFERENCES..............................................................................................................................10.......................................................................................................................................................10
The Global Business Environment Assignment - SASOL limited_2
INTRODUCTIONEnvironment refers to overarching an environment under which firm operate its business.It consists wide range of factors which can impact on business involving politics, culture,location, economic status of global environment etc. Global business environment refers toenvironment in various sovereign countries with exogenous factors to home environment of firm,influencing the decision making on capabilities and resource use. SASOL limited is an integratedenergy and chemical firm in South Africa. It was formed in 1950 and also build in processeswhich were developed through engineers and German Chemists. Under this mention report willbe discussed about factors of cost, environment, market that drive global commerce. Inference ofglobalisation on leadership structure, functions and organisation government will be discussed.PROJECT 1Concept of globalizationGlobalization refers to process of integration and interaction among organizations, peopleand governments. It is a procedure through which regional and national economies, cultures andalso societies have integrated by global network of the transportation, communication etc.Globalization is regarded as movement of people, services, information and products from onecountry to the other. Under this, main aim of globalization is to secure the socio- economicintegration as well as development of people of world by information, free flow of the services,products etc. Driving factors of globalizationFirms go global in order to expand their markets as well as enhance sales or profit level.Variety of factors which contributed towards globalization process are mention below:Technology- Sustained and rapid technological change has minimized transmitting costand communicating the information to SASOL company. Cheaper and faster technology indigital global economy of Internet has broken national barrier of space and time. Trade flows- Removing the trade barrier time and also has facilitated enhancingdevelopment rate of world trade. Under this, new technology in IT revolution has developed thechannel of distribution for SASOL firm and it is complex to be blocked in protectionist tradepolicy. 1
The Global Business Environment Assignment - SASOL limited_3
Liberalization- IN this, strong wave of the liberalization induced through unilateralnegotiation as well as World Trade Organization (WTO) and the decisions are undertakenthrough countries ion all over world.Impact of digital technology upon globalizationTechnology plays a vital role in modern form of the business globalization. It has changeglobal economy and also became critical competitive strategy. Advancement in the technologyhelps SASOL organization to enhance development of the global market. In past few decades,technological developments have increased in the migration, cross- border trade and investments.Technology advancement have facilitated globalisation and the technological process has beenmajor forces which driving the globalisation. The technology is helpful in minimizetransportation cost as well as communication across the nations. In context to this, patentedtechnology is helpful in encourage the globalisation, as SASOL company owning patent that canbe exploit the foreign markets without any kind of competition. With the help of advancedtechnology, SASOL firm can outsources the labour intensive services in advanced countriesfrom developing countries.PEST analysis of SASOL organizationPESTLE analysis is strategic tool to examine macro environment of company. Changesin macro- environment factors have direct affect on activities as well as operations of company.PEST analysis of SASOL company mention below:Political factor- This factor plays a necessary role in identifying factors which can beaffected the long term profitability of SASOL limited in certain country. It operates in IntegratedOil & Gas in many countries and also expose itself to various kind of political environment. Economical factor- In economic factors includes such as saving costs, foreign exchangerates, inflation rate, economic cycle and interest rate. These are helpful in analyze aggregateinvestment and aggregate demand in an economy. In this, SASOL company can have affect fromdevelopment and growth rate for an instance spending power of consumers, growth rate in orderto forecast growth. Social factor- In social factors include tends, attitudes and behavior that effect on targetmarket and firm. Way of doing the things and culture of society affect culture of SASOLcompany in environment. In this, it is necessary for SASOL firm to determine needs ofconsumers and design marketing message for customers of main Integrated Oil and Gas Industry.2
The Global Business Environment Assignment - SASOL limited_4

End of preview

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

Related Documents
Global Business Environment
|13
|533
|87

Drivers and Challenges for Globalization (Part 1)
|10
|1010
|266

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

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

Global Business Environment
|13
|715
|89

Global Business Environment
|13
|778
|27