Impact of Global Business Environment on SASOL Ltd.

This presentation reveals the impact of global business environment on SASOL Ltd., a company offering energy and chemical products. It discusses the concept of globalization, driving factors, impact of technology, PEST analysis, challenges, and recommendations.

Global Business
Environment
Project 1

Table of contents
Introduction
Concept of Globalization
Driving Factors Of Globalization
Impact Of Technology On Globalization
PEST Analysis
Challenges Of Globalization
Conclusion
References

Introduction
This presentation is going to reveal the impact of
global business environment on SASOL Ltd.,
which offers products related to energy and
chemical.

Concept of globalization
The interconnection of people, company, government and
countries regarding to economical, social, technological,
cultural and political factors around the world is the basis
of globalization. This process helps in massive increase
in trade and the technological exchange.

Explanation on the driving factors
of globalization
There are certain factors which are responsible for
carrying out the operation of globalisation, which makes
this process effective for the longer run and these factors
are:
The factors that drives the globalization are the
economical factor which includes the data about market
and economy of the business if the underdeveloped
country not having the proper growth in the economy.

The significant impact of digital
technology upon globalization
The technology which uses digital resources like internet
to process the data so that it could converted into
information and analysed and communicate through
others with the digital medium is considered as digital
technology it has made its huge impact on the
globalization as well as the SASOL both. By the help
of digital technology company is able to promote its
business at the far places.

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Overall handling of higher number of consumer is also
being increased as this technology provide real time
database detection which helps in limiting the chances of
fraud in online payment also so by having digital
technology the purchase and selling of product of
SASOL has been done in an effective and profitable
manner.

PEST Analysis of SASOL
Limited
SASOL Limited is expanding its business at international
level. For this, its manager have conducted PESTLE
analysis.
Political: SASOL Limited is dealing with oil and gas in many
countries. It can be said that if the company trade with
those countries who are politically stable then it will
minimize the risk of changes in governmental policies
regarding oil and gas trade. It also includes wages
legislation, taxation, product labeling etc.

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Economic: Economic factors in macro environment includes
inflation rate, interest rate, unemployment and
competency's norms. All these elements affect the
competitive advantage of organizations.
Social: It impacts on working culture of an organization. In
this regard, attitude of customers and social beliefs play a
major role in understanding the demand of marketplace.

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Technological: It is considered as main factor which
disrupts the whole working process of industries. Due
to advancement of technology, it becomes essential for
companies to replace old techniques with new one.
This would help in winning high competitive
advantage by fulfilling the demand of customers on
time.

Challenges of globalization
External environment of business has created a large
impact on abilities of organizations including by
which they can enhance their growth and profitability.
Slow GDP rate: This factor creates various uncertainties
such as less economical growth which directly impact
on productivity and profitability of business.
Therefore, SASOL Limited also faces issues in terms
of risks and geographical change.

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Cost: Finance is the most essential factor in a company
which helps in conducting entire activities in proper
manner. In this regard, the most crucial challenge in
front of SASOL corporation is to introduce adequate
amount of finance. To move business at global level, it
is necessary for its managers to plan strategies to
optimize available funds in adequate manner.

Recommendations to overcome
challenges
In order to overcome from strategic challenges, it is
recommended to managers of SASOL, to make
effective managerial decisions related to modification.
They must carry out research to ensure that whether
changes in organizational structure and
implementation of digital technologies is beneficial
for improving performance of business.

Conclusion
From the above mentioned report, it has been concluded
that business environment is mainly consist of internal
and external factors of an organisation. It can be said
that digital technology is considered as the driving
factors of globalisation which helps in converting
whole business into a success. It has been found that
cost is biggest challenge which interrupts growth of
organisation at global level.

References
Alqahtani, F. A. and Saba, T., 2013. Impact of social
networks on Customer Relation Management (CRM)
in prospectus of business environment. Journal of
American Sciences. 9(7). pp.480-486.
Black, J. S., Morrison, A. J. and Gregersen, H. B., 2013.
Global explorers: The next generation of leaders.
Routledge.
Cavusgil, S. T. and et. al., 2014. International business.
Pearson Australia