Global Business Environment - Sasol Assignment Sample

Global Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
1) ............................................................................................................................................3
2).............................................................................................................................................4
3) ............................................................................................................................................5
4) ............................................................................................................................................5
5) ............................................................................................................................................7
6) ............................................................................................................................................7
PART 2............................................................................................................................................8
1) ............................................................................................................................................8
2) ............................................................................................................................................9
3) ..........................................................................................................................................10
4) ..........................................................................................................................................10
5) ..........................................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Global business environment is outlined as position in different autonomous state having
component exogenic to interior surrounding of organization causing making conclusion on
ability and usage of resources (Apăvăloaie, 2014). This help organisation to develop their firm
and activities in effectual and economic style at global level. It is very essential for structure to
enlarge business at international level in order to earn maximum gain and profits. The presented
report is supported on SASOL Limited established in 1950 at South Africa which is chemic and
fast increasing energy based organisation. This produces commercialise technologies which
includes fuels, electricity and others. It is considered as largest organisation in chemical and
energy production (Sasol Ltd (SSL), 2019). This report is divided into two parts where first
section represents driving force and situation for economic process and second represents effect
and strategic path. It also covers PESTLE, McKinsey's and other model for describing business
and its activities at global level.
PART 1
1)
Globalisation is defined as activity of integrating and fundamental interaction between
institution, group, government, companies worldwide. This has full-grown because of rise in
communicating and information application. The increasing worldwide action leads to
development of foreign culture, commerce and ideas. It is also called economical operation of
group action and physical phenomenon related with ethnical and societal view. It regard good,
application, information, economic resources of capital, services and others. There are various
other reasons which leads to increase in globalisation such as social media, commerce systems,
complex financial good and others (Globalisation, 2019). Globalisation provides various
potential benefits to both national economies and international producers in proper manner.
SASOL Limited has grown business in different market such as Canada, Australia, Gabon,
Mozambique due to rise in globalisation in order to earn maximum profits and gain in
competitive marketplace.

2)
Globalisation help SASOL Limited to expand market and increase profits and sales in
effective and efficient manner. There are different driving cause of economic process that are
mentioned below:
Technological Drivers- This driving factors has set and shaped foundation for modern
globalisation (Drivers of Globalization: Integration of Theories and Models, 2019). It can help
SASOL Limited to easily export and import goods and services in other parts of world through
modern transportation and innovation technology. With rise in globalisation different
transportation has evolved for providing goods and services. For example, the respective
organisation has to analyse market to know about change in technology so that they can adopt it
in business for achievement of goal and objectives.
Political Drivers- With increase in globalisation, rules and deregulated market of trading
has lowered tariffs and allow for foreign direct investments which can help SASOL Limited to
do their business without any restriction. Also WTO and GATT has assist for doing business
effectively and efficiently. For instance, if there is change in any rules related with chemical
industry then it should be applied by respective organisation for running their business in
effective and efficient manner.
Market Drivers- Due to saturation of market, opportunities are limited and global
expanding is way through which SASOL Limited can overcome such situation for their business.
This assist in knowing about requirement of consumers and produce accordingly for achievement
of goal and objective. In current scenario, saturation of market leads to decline in opportunities
for organisation. They have to provide high quality products and services so that they can attain
set goal and objectives.
Cost Drivers- It is the most important driving factors of globalisation that can aid
SASOL Limited to earn maximal profits and gain as price of product vary from country to
country where respective firm can take benefit of it. It also assist in building economies of scales
and high product development for users. With this factor they can increase their profits by
analysing market and know about cost of other companies and accordingly set prices for goods.
As prices may vary from one country to another due to differ in tax, interest rates and others.
Competitive Drivers- With internationalisation, there is competition in global intern
firm which force SASOL Limited to play business at global level. This can aid respective