Global Business Environment: Challenges and Strategies for Sasol

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...............................................................5
Evaluation of the significant impact of digital technology upon globalisation.........................6
A critical evaluation of the challenges and complexities globalisation brings to an organisation
such as SASOL...........................................................................................................................6
Recommendations on how such challenges can be overcome....................................................7
CONCLUSION ...............................................................................................................................7
PART 2 ...........................................................................................................................................8
INTRODUCTION...........................................................................................................................8
An explanation of structure, culture and governance within an organization.............................8
An evaluation of how the above has been influenced by global operations and how the...........9
organisation has adapted to operating in a global market...........................................................9
Applying Hofstede’s Dimensions of Culture to demonstrate how the organisation has..........10
been influenced. ......................................................................................................................10
An evaluation of ethical and sustainable factors that the organisation has to consider in a
global market and how this impacts on decision making in a global context. ........................11
An assessment and critical evaluation of the range of strategic expansion routes available to
the organisation.........................................................................................................................11
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
The global business environment can be defined as the surroundings in various
sovereign nations, with factors exogenous to the home atmosphere of the business, attracting
decision making on resources use and capabilities. The global business environment can be
classified into the external environment and the internal surroundings (Keng, and et.,al., 2018).
The external forces includes the social , political, economic and regulatory, tax and cultural,
legal and technological environments. In order to functional effectively and efficiently,
companies operating globally in. presently, there are many multinational companies which
operates in various sections of the globe. These kinds of companies must access themselves
with the language and culture of the nation in which they are working. The report is based on
Sasol company, it is an integrated energy and chemical company which is based in sandton,
South Africa. The company was found in 1950 in Sasolburg. The company develops and
commercialised technologies, considering synthetic fuels technologies and produces various
liquid fuels, chemicals and electricity. The report will cover the analyse the key factors which
drive globalisation. Also determines the strategic complexities associated with operating in a
global. After that it will evaluate how operating in a global market influences an industry
structure culture and functions. In last it will analyse the influences of globalisation on business
decision making and strategy.
MAIN BODY
Globalization is the expansion of the company from one nation to another nation. It is
three dimensional concept. It is a phenomena and a process. The international business
environment can be stated as the environment in various sovereign nations, with various
factors. The broad range effects of globalization are complex and politically charged.
According the main technology advances, globalization advantages society as a complete,
whereas causing harm to some units. Understanding the relative values and advantages can
pave the way for relieve issues while sustaining the deep payment (Katiyar, and et.,al., 2018.).
An appropriate PESTLE analysis to illustrate the broader and global influences on an
organisation such as SASOL.
Pestle analysis is s strategic management tool that Sasol ltd leadership can use to make
developed decisions. Further discussed in below report.

 Political factors - these are the factors which is link to the intervention and nature of the
local and national governing in the business and economic environment. Government
policies and governing system plays a huge role in nature and aims of the strategies.
Sasol has to make this eventually as it will tend to modify in governance priorities of
basic materials section. There is no imminent threats to country from the disruption in
the business surroundings due to the military policies, terrorist threats and another
political instability. Sasol has experienced of managing activities in complex situations .
 Economic factors - these are the factors considers market conditions, consumers
disposable income, exchange rate and many more. The easy liquidity in the market post
the great recession of 2018 will tend to raise inflation in the country economy. All
though the consumer disposable income has remain stable the growing inequality in the
society will negatively effect on users sentiments and thus effect users spending
behaviour (,Khandelwal, and Barua, 2020)..
 social factors - these factors cannot only helps companies like company name to better
analysis the manner of performing business but also in determining the users taste and
preferences. This includes traditions, culture, demographics and gender. Sasol LTD,
has demographic on its side. It can use this trend to serve to different of the population.
The company must strive to make a local team that analysis the societal norms and
attitudes better to serve the users in country.
 Technological factors - technologies are changing rapidly. There are different ways
technological factors are impacting the sasol Ltd and chemical manufacturing in South
Africa. Certain of the technological factors are access to cell phones driving venture ,
creation in customer service and access to huge details, population access to technology
and many others. The company has to keep their eyes close on the betterment and
enhancement of user experience of creative disruption and both governing and private
players are spending resources on improving new solutions.
 Legal factors - This factor plays an important role of chemical manufacturing in any
economy . Sasol Ltd management has to consider following legal factors earlier moving
into international market biased ness towards ho,e players discrimination laws,
copyrights law and intellectual property laws and many others. The level of