Global Business Environment: PESTLE Analysis and Impact of Globalisation on SASOL Company

Global business
environment

Table of Contents
PART 1(ALSO SUBMITTED AS PPT).........................................................................................3
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................4
TASK 1 ...........................................................................................................................................4
Concept of globalisation.........................................................................................................4
PESTLE analysis to illustrate broader and global influences on SASOL Company.............4
The analysis of key driving factors related to globalisation...................................................6
The evaluation of significant impact of digital technology upon globalisation.....................7
The critical evaluation of challenges and complexities globalisation brings for the SASOL
Company.................................................................................................................................8
Recommendations for SASOL company to grow at marketplace..........................................9
CONCLUSION..............................................................................................................................11
PART 2..........................................................................................................................................12
Explaining the structure, governance culture, in a company applying McKinsey's 7's
framework.............................................................................................................................12
An evaluation of how the above discussion has been encouraged by international operations &
how the business has been influenced..................................................................................14
Applying the dimensional culture through Hofstede model ................................................14
Ethical as well as sustainable factors of business that is considering within global market 15
Evaluation of strategic decision making in relation to risk and diversification in a global
context..................................................................................................................................15
Critical evaluation of the range of strategic global expansion routes available to the
organisation..........................................................................................................................16
CONCLUSION .............................................................................................................................17
REFERENCES..............................................................................................................................18

PART 1(ALSO SUBMITTED AS PPT)
INTRODUCTION
The Global Business environment means the surrounded area in which international
organisations operates business functions in a precise manner. It is tough for companies in
international market to operate as it includes many factors like the risk of politics, different
culture , legal and taxation issues, risk of exchange and so on. Globalisation plays a important
role in the development of country as well as its economy. It is necessary for the management of
a business in international market to work on all the factors that affects environment of their
business. Globalisation helps the the business to expand, exposure to more customer, help to
manage their product life cycle all across the globe. In this project example of SASOL is taken
into consideration which is global integrated chemicals and energy company. SASOL is an
energy and home services provider in the South Africa. The company was founded in 1950 and
is known globally for world class products and services like Bitumen and Greases. SASOL
company is headquartered in Sasolburg, South Africa. In this project the concept of
globalisation with all of its major dimensions are explained in a precise manner. This project
includes macro environment analysis of SASOL order to understand its long and short term
influence on company. This project also includes critical evaluation of challenges and
complexities globalisation brings for the SASOL.

MAIN BODY
TASK 1
Concept of globalisation
The globalisation is a major term which includes the revolution that created a huge
impact on world by allowing trade of goods and services across the countries. Globalisation is
considered as major turning point in history of world which allowed many international
companies conduct export and import practises. Globalisation is majorly referred to the art of
developing free trade movement of goods and services across the countries. It also allowed
SASOL Company to enter international business market by selling chemical products to different
customers and industries in different countries. Globalisation is majorly supported by
information and technology in this competitive world as it involves use of advanced computer
systems and software in business operations.
PESTLE analysis to illustrate broader and global influences on SASOL Company
PESTLE Analysis is mainly used by SASOL Company to analyse or identify all the
external factors that affect the macro environment of company. PESTLE analysis influences on
SASOL Company in many different ways and there is a strong need to scan the environment of
South Africa as well as globe. PESTLE is a acronym of Political, Economical, Social,
Technological, Legal, and Environmental factors and these factors are discussed below:-
Political Factors
There are many types of Political factors that must be analysed for the SASOL Company
in order to lead the global market. Political factors has a great impact on SASOL company due
instability of government, or by changing rules and regulations related to taxation , etc. SASOL.
After Brexit SASOL has to face many challenges like problem in managing supply chain of
products and availability of raw materials.
Economical Factors
World economic conditions like trade tariffs, Octroi can also affect the business
environment of SASOL Company as it can increase cost of products. Increasing unemployment
rate and increasing oil and chemical prices which cause inflation in the economy as a result
purchasing power of people is decreases.
Social factors