Global Business Environment: PESTLE Analysis, Driving Factors, Digital Technology, Challenges and Complexities, and Influence on Governance, Culture, and Leadership - Desklib

Unit 18 – Global
Business Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
An appropriate PESTLE analysis to illustrate the broader and global influences on an
organisation such as SASOL..................................................................................................3
An analysis of the key driving factors of globalisation..........................................................4
Evaluation of the significant impact of digital technology upon globalisation......................5
A critical evaluation of the challenges and complexities globalisation brings to an organisation
such as SASOL. .....................................................................................................................6
CONCLUSION ...............................................................................................................................7
PART 2 ...........................................................................................................................................7
INTRODUCTION ..........................................................................................................................7
MAIN BODY ..................................................................................................................................7
An explanation of structure, culture and governance within an organization such as...........7
SASOL applying McKinsey’s 7S model to the organization.................................................7
An evaluation of how the above has been influenced by global operations and how the......8
organisation has adapted to operating in a global market. ..................................................8
Applying Hofstede’s Dimensions of Culture to demonstrate how the organisation has........9
been influenced.......................................................................................................................9
An evaluation of ethical and sustainable factors that the organisation has to consider in.. .10
a global market and how this impacts on decision making in a global context...................10
An assessment and critical evaluation of the range of strategic expansion routes..............11
available to the organisation.................................................................................................11
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Globalisation states to the process o f growing the business activity in international
market with the assumption of making interrelation with all the business activities. In common
terms it can be explained that it works as the key development in the process of production of
goods and services at global level (Luiz, and et.,al., 2019). Expansion of business
organisation in worldwide market outcomes in the growth of business globally, technically,
information, trade, culture economy and many others. The selected company in is sasol which
is UK based company deals in oil and chemical. This company is working in various countries
and areas. This report is parted nin two parts in which first one is consist of pestle analysis with
the international business driving forces, strategic challenges and its driving forces , strategic
challenges and effect of digital technology on business. Whereas second part of this resport
with the in flunece of leadership
MAIN BODY
An appropriate PESTLE analysis to illustrate the broader and global influences on an
organisation such as SASOL.
It is framework which is used to analysed the external factors which impacts the
business and its operations. It includes the some elements which is listed in below report .
 Political factors - this plays a important role in analysing the components that can
effect sasol limited long term profitability in a some nations or market. Company is
working in main integrated oil and gas in various locations also it expose itself to
various kinds of political surroundings and political system risk . The attainment in such
a complex major integrated oil and gas industry across different nations is to diversify
the systematic risks of political environment .
 economic factors – this factors includes as inflation rate, interest rates and foreign taxes.
Sasol limited can use national economic factors just as growth rate, inflation and industry
economic indicators such ad main integrated oil and gas industry growth rate , consumer

spending and many others. The company is working at global level and they majorly
operates in such country which is having a strong economic background.
 Social factors - the factors within this considers some beliefs values along with the
wants of an individuals. In context of sasol, a manager of company is needed to focus on
the attitudes of the buyers so that they can be able to offer such goods that are acceptable
by company.
 Technological factors – in order to do a business effectively it is highly crucial for a
business in investing its capital on technological and innovation. This assists in proper
and effective conduct of business with the current technology. In sasol, is needed to
enact its operation with the use of help of advance technology so that it can earn high
Income.
 Environmental factors - these forces shows various rules and regulation for
environment safety which are implied by the governing on all the intrudes that are
presenting in the community so that they can function their activity without causing any
harm to the surroundings (Hori, 2020.).
 legal factors - this includes some legal laws and regulations which are imposed by th
court of laws in regards to company sasol, an industry is required to focus on the
national equity law health and safety laws for its staff members so that its staff members
so that all employees are awarded with similar pay who all are posted at similar level.
An analysis of the key driving factors of globalisation.
Globalization help the concern arrangement in earning high earnings which implies its value
in global market. It has been recovered that the there are numerous cause which adoptive to the
beingness of globalize. Some of these factors in the context of sasol are given below:
Cost: It is defined as the sum of expenses which caries from country to country for the purpose
of gaining higher benefits at global level . While practical on the worldwide level, cost give
several of possibility along with the improvement of business system. If an organisation
enjoy cost advantage, it result in the earning of high income on huge level. sasol can take
the cost vantage by reaction the costing of organization. They can do shipping in majority
which result in less costing of delivery cause.