Global Business Environment

This presentation explores the concept of globalisation, driving factors, impact of digital technology, PEST analysis of SASOL Limited, challenges of globalisation, and recommendations for overcoming these challenges.

Global business environment
Project 1

• Introduction
• Concept of Globalisation
• Driving factors of Globalisation
• Impact of digital technology upon globalization
• PEST analysis of SASOL Limited
• Challenges of Globalisation
• Recommendations for overcoming these challenges
Table of content

This presentation is based on SASOL Limited and this company is based on South Africa,
majorly deals in energy and chemical sector. This firm operates its business at global level
and thinking of expanding its business to countries where they have not expanded yet. Main
topic which will be included in this presentation are factors of globalisation that drives
business to another level. Along with this, impact of digital technology on globalisation is
explained further in this presentations.
Introduction

Globalisation is a concept that is used for describing a
variety of economic, culture, social and political
changes. It has provided a equal chance to many
business organisation for expanding its business in
different parts of the world.
Concept of Globalisation

Over the past few years, there have been many factors for globalisation which has driven
company towards benefits and ultimately increasing the economy of the nation. It has
enhanced foreign trade along with capital flows. As a result, a positive growth rate can be
seen which has gradually raised GDP for the country.
Driving factors of globalisation

• Technology: With the change in course of time technology has played a crucial role in providing
benefits to the company.
• Liberalization: This is one of the factor which was introduced by World Trade Organization
• Trade Flows: This is a driver that assists companies in minimize the problems regarding time and
capital so that growth rate can be increased and the reason behind this is because of removal of trade
barriers.
• Capital Flows: Globalisation has eased the capital flow because of which companies can now
perform their activities in a better manner in different nations.
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Digital technology has put a great impact on the growth of a company because it supports in
making connection with various factors and elements. For instance: advancement in
telecommunication has made the process of communication more effective as a result,
company share information and data in a limited period of time.
Impact of digital technology upon globalization

PEST analysis is conducted in order to know the factors of macro environment which can
further put a positive and a negative impact ion business. Thus, in context with SASOL
Limited the same is explained below for better understanding:
• Political Factor: As company deals in energy and chemical sector so for them political
factor is a big concern.
PEST analysis of SASOL Limited

• Economic Factor: This factor is determined as an important aspect because economic
cycle can put a positive as well as negative impact on business
• Social Factor: For most of the companies this is an important factor as products that are
manufactured are to be delivered to people living in the society.
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• Technological Factor: In relation with
this context, SASOL can use latest
tools and technologies for attaining
better growth in business.
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External environment can work as a positive and a negative factor for the company thus, it
can increase the profitability or at the same time it can minimise the profitability. Some of
the factors related to external environment are currency exchange rate, rules and regulations
by government etc.,
Challenges of globalisation

• On the basis of this some of the challenge are discussed below for better understanding:
• Global Commodity process: Price expectations remains in the global market for a short
period of time and it can be directly linked with demand for LPG and natural gases.
• Weak growth in economy: The reason for this can be many like importing large number
of products instead of exporting them.
• Change in digital landscape: As the time is passing new and latest technologies are
evolving although it is providing benefits to the company
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There are many challenges which can be faced by the company what more important is to
make appropriate strategies and plan so that problems can be resolved and eliminated. In
relation with SASOL, it should be recommended that on a regular basis company must
implement new tools and technologies so that effective services can be provided at
international level.
Recommendations for overcoming these
challenges

Conclusion
From the above report it has been evaluated that, globalisation in context to business plays a
crucial role in providing wider area to companies so that they can expand its business.
Furthermore, for a firm it is important that they follow rules and regulations in order to
remove barriers which can gradually increase benefits. Therefore, this can be analysed by
conducting PEST analysis as it will aid firm in understanding external factors which can be
faced by a firm.

Botha, A., Kourie, D. and Snyman, R., 2014. Coping with continuous change in the
business environment: Knowledge management and knowledge management
technology. Elsevier.
Wood, D. J. and et. al., 2015. Global Business Citizenship: A Transformative Framework
for Ethics and Sustainable Capitalism: A Transformative Framework for Ethics and
Sustainable Capitalism. Routledge.
References

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