Global Business Environment - Global Business Environment - Sasol Limited

Global Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK1 ............................................................................................................................................3
P1 Key factors of cost, market, environment and competition that drive global commerce and
trade........................................................................................................................................3
TASK 2 ..........................................................................................................................................5
P2 Complexity of strategic challenges faced by organisations when operating in a global
environment ...........................................................................................................................5
TASK 3............................................................................................................................................7
P3 Evaluate the influences of globalisation on organisational governance and leadership,
structure, culture and functions..............................................................................................7
P4 Evaluate the influences of ethical and sustainable globalisation on organisational functions
................................................................................................................................................8
TASK 4............................................................................................................................................9
P5 Different ways decision making works effectively in a global context............................9
P6 Determine and articulate the various routes to internationalisation an organisation may
adopt, including key barriers................................................................................................10
CONCLUSION.............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Globalisation can be defined as an interaction between people, government and
organisation with outside of world. In other words, It is a process through which business
organisations develop themselves so as to operating their operations at international level. It
comprises of movements of goods, services and funds from a nation to another nation. Taken
organisation for completing this project is Sasol Limited which is a fast growing chemical and
energy organisation that's headquarters are situated in South Africa. This project will discuss
about the key factors of globalisation that drives commerce and trade along with complexity of
strategic challenges which are faced by firms while operating at global level. In addition,
influence of ethical and sustainable globalisation on functions of organisation and ways of
decision-making. At last, report will discuss routes and barriers of globalisation for organisation.
TASK1
Key factors of cost, market, environment and competition that drive global commerce and trade
Concept of globalisation is very broad that is used to define enhancing political, economical
or social interrelation across the national cultures and boundaries. This term assist the firm to
grow their business and increase movement of goods, technology, capital, flow of finance
throughout the world. After internationalisation, it becomes easy for each organisation to trade
between the nations. In context of SASOL, company is expanding their business in several
nations so that concept of globalisation can prove beneficial for them in enhancing business
operations and revenue figures throughout the world (Eden and Ackermann, 2013). There are
several factors such as market, cost, advancement in technology etc. which can affect the
company during the expansion process. These factors are given as below:
Cost factor- Variations in cost is exist in each nation that plays a role of drivers in
globalisation process. In other words, cost includes monetary valuation of material, efforts or
time that should be consider by managers of Sasol so as to globalising their business operations.
Increase in dimensions of market will support the Sasol limited in reducing their cost along with
help in making effective strategies for expansion.
Market factor- This factor defines that how the customers will get the offerings of firm
in new market places. It can also considered as the most crucial factor of globalisation because

without analysing the market trends Sasol limited will not achieve desired growth and success in
new market.
Technology- This factor should be consider by the managers of Sasol limited because
this factor of globalisation will enables them to communicate with others easily which
automatically enhances their market share and sales figures in new market areas. For example-
each firm updates their functions and operations so that desired growth can be attained in
marketplace. Therefore, Sasol should upgrade their operations by implementing advanced
technologies in it so that expansion can be done successfully in market.
Environment factor- This factor can be defined as surrounding in which the business
organisation operates their functions. It includes internal and external factors such as needs of
customers, social trends green policies of government etc. therefore, managers of company
should consider these factors and make effective policies or strategies for it so that expansion in
new market place can be done in easy manner (Ahmadi and et. al., 2014).
Competition- Nowadays, this factor is highly increasing within the market and provide
opportunities to organisations for making expansions so that customer base can be enhanced. In
addition, chemical products of company is demanding more than the headquarters so that it can
prove beneficial for company in making expansion in demanding market areas. For e.g.
company can use artificial intelligence or digital technical systems within their operations which
will provide them competitive edge in new market areas.
From the above factors, it has been evaluated that these factors should be considered by
the managers of Sasol limited effectively so that any difficulty not be arise during the expansion
process. In addition to this, through implementing advanced technology within the operations
Sasol limited will be able in increasing their efficiency of operations which will automatically
leads the firm towards competitive edge in market. Along with this, implementation of advanced
technological systems in operations unessential cost will be removed which is beneficial for firm
in increasing their trade business.
Impact of digital technology on globalisation
In present scenario technology is impacting on all business operations and functions of
the organisation. Like this aspect helps organisation to complete their work within minimum
time period. More over it also helps to develop alternative ways through which they manufacture
their good within economical way. Moreover it work as a key driver that helps to improve their