Global Business Environment: Opportunities and Challenges Faced by SASOL

This presentation explores the concept of globalisation and its impact on businesses, with a focus on SASOL. It evaluates the significant factors that drive globalisation and the key factors that have impacted the global business environment. The presentation also discusses the complexities and challenges of globalisation faced by SASOL, along with strategic challenges in the context of risks and diversification strategies and supply chain flow. Additionally, it provides a critical evaluation of the global business environment, comprising of opportunities and challenges faced by the organization.

UNIT 18- GLOBAL BUSINESS
ENVIRONMENT

TABLE OF CONTENT
 Introduction
 Evaluation of significant factors that drives globalisation
 Critical evaluation of key factors that impacted global business
environment
 Evaluation of the complexities and challenges of globalisation
they are to faced by SASOL
 Evaluation of strategic challenges in context of risks and
diversification strategies and supply chain flow
 Critical evaluation of global business environment comprising
of opportunities and challenges faced by organization
 Conclusion
 References

INTRODUCTION
Globalisation is a broader concept that
can be defined as increased
integration of world economies
through cross-border movement of
goods, services, and capital. SASOL
company is considered for a better
understanding of globalised
business practises. SASOL Ltd. is a
South African chemical and energy
company..

SIGNIFICANT FACTORS THAT
DRIVES GLOBALISATION
Explanation of the concept of
globalisation
Globalisation is the process by which
people from various countries have
become more connected economically,
politically, and socially. SASOL intends
to expand their business into various
countries such as New York, Frankfurt,
Mozambique, Gabon, and Australia in
order to achieve their goal of continuous
international expansion as well as to
increase productivity, profit, customer
base, brand value, and market share.

FACTORS THAT DRIVES COMMERCE AND
ECONOMY IN ECONOMY
There are numerous components that drive SASOL's globalisation in
order to accomplish their primary goal of constant global expansion.
These factors have had a significant impact on business productivity,
trade, and growth in international markets, as shown below:
 Cost
 Market
 Environment
 Competition

CRITICAL EVALUATION OF KEY FACTORS THAT
IMPACTED GLOBAL BUSINESS ENVIRONMENT
PESTLE analysis is defined as a test by companies for the purpose
of scanning several macro external factors that have impacted internal
business operations. SASOSL managers conducted a PESTLE analysis
to study the effects of primary determinants on global growth in terms
of opportunities and challenges.The following are the key PESTLE
analysis factors that are relevant to SASOL Limited:
 Political
 Economic
 Social
 Technological
 Legal
 Environmental

GLOBALISATION THEY ARE
TO FACED BY SASOL
Organizations attempting to expand their operations into the
international market face numerous complex situations and
challenges. Various challenges that arose as a result of the
globalisation process in accordance with SASOL are
discussed below:
 Increased competition
 Incurring tariffs and export fees
 Payroll and compliance challenge
 Immigration challenges

CONTINUE…
Assessment of the significant impact of digital technology on
globalisation
The various technological advancements of digital technology
have had a significant impact on the globalisation process.
Advances in digital technology assist SASOL managers in
dealing with foreign suppliers and obtaining inputs at lower
rates. Digital technology has aided in increasing people's
interconnection, which is a core part for broadening
company's operations in global markets.

EVALUATION OF STRATEGIC CHALLENGES IN CONTEXT OF
RISKS AND DIVERSIFICATION STRATEGIES AND SUPPLY CHAIN
FLOW
Organizations face numerous challenges and issues when expanding
their business operations into the international market. These
challenges include increased competition, strict immigration laws
from various countries, human resource payroll, and many others. It
is preferable for SASOL managers to face these challenges and
devise solutions to them.

CRITICAL EVALUATION OF GLOBAL BUSINESS ENVIRONMENT
COMPRISING OF OPPORTUNITIES AND CHALLENGES FACED
BY ORGANISATION
Opportunities that SASOL faces due to globalisation
 Constant changes in technological developments
 Observance of all environmental laws
 Cooperate with all health and safety regulations.
Challenges faced by managers of SASOL
 Political environment
 Joblessness and a decrease in people's purchasing power
 People's changing social needs

CONCLUSION
According to the above report, globalisation is a broad concept that
connects individuals on a large scale. It presents both opportunities
and challenges for businesses. Organizations face a variety of
challenges, including increased competition, immigration issues, and
compliance with various legal laws.

REFERENCES
 Cuervo‐Cazurra, Á., Doz, Y. and Gaur, A., 2020. Skepticism
of globalization and global strategy: Increasing regulations
and countervailing strategies. Global Strategy Journal.
10(1). pp.3-31.
 Meyer, K. E., 2017. International business in an era of anti-
globalization. Multinational Business Review.
 Ng, H.S. and Kee, D.M.H., 2017. Entrepreneurial SMEs
surviving in the era of globalization: Critical success
factors. In Global opportunities for entrepreneurial growth:
Coopetition and knowledge dynamics within and across
firms. Emerald Publishing Limited.
 Van Neuss, L., 2019. The drivers of structural
change. Journal of Economic Surveys. 33(1). pp.309-349.

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