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Global Business Environment - SASOL

   

Added on  2020-10-05

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Global BusinessEnvironment
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Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1&2.......................................................................................................................................11. Globalisation introduction.......................................................................................................12. An explanation on driving factors of globalisation.................................................................13. Significant impact of digital technology over globalisation...................................................24. PEST analysis of SASOL Limited..........................................................................................35. Challenges faced in globalisation............................................................................................46. Recommendations...................................................................................................................4TASK 3&4.......................................................................................................................................41. Structure, Culture and Governance of organisation by applying McKinsey's 7S Model.......42. Hofstede's Dimensions of Culture Influence to Organisation.................................................53. Evaluation of Ethical and Sustainable Factors........................................................................64. Factors Affecting Decision Making in Global Context..........................................................75. Strategic Expansion Routes with Advantages and Disadvantages.........................................7CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9
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INTRODUCTIONGlobalisation is a process of integration between companies and government at globalmarket. It is associate with cultural aspects and focuses on trade and FDI. This concept is focuseson expanding of business in global market (Barnwell and et. al., 2014). This report is based onSASOL Ltd which is a type of public company. It was founded in 1950. its headquarter islocated in South Africa. It is a industry of oil and gas chemical. In this report there will be adiscussion about concept and factors of globalisation. PEST analysis and impact of technologyon globalisation is discuss. Apart from this, McKinsey's 7S model and Hofstede's model willdiscuss. At last, ethical and sustainable factors will discuss.TASK 1&21. Globalisation introductionGlobalisation refers to the process of setting up political, social, economical and culturalrelation across the national boundaries. This allow businesses to perform its operations at globallevel by removing trade barriers and support in integrating with World market. Byinternationalising its business company will get an opportunity to offer its product all around theworld. Evaluation of globalisation supports in restructuring relation among nations by removingbarriers in area of culture, communication and commerce. This initiation supported ‘SASOL
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Limited' to expand its operations in other countries to achieve competitive advantage and toincrease its customer base. 2. An explanation on driving factors of globalisationGlobalisation is one of the highly spread trend in marketplace nowadays which keep onattracting businesses as well as traders to exploit the expansion or growth opportunities that abusiness get after internationalisation (Belás and et. al., 2014). There are some common driversthat attract businesses toward globalisation which are as follows:Cost: Production cost is one of the major driver behind the global expansion ofcompanies because the business generally focuses on performing its operation whilemaintaining economies of scale. SASOL Limited is an integrated energy and chemicalcompany which deals in providing fuels and other gas chemical. So, company isperforming its operations in countries like Qatar which is reach in oil and natural gases.The cost of operating business in Qatar is relatively lower as compare to UK, thisis the main factor which influence company to expand its business in countries that arerich in oil production. This help company in performing its operation while achievingeconomies of scale. Market: It refers to some favourable factors like growth opportunities, demandingproduct, low competitions etc. that are present in market which support company inmoving to global market and achieve success (Botha, Kourie and Snyman, 2014).SASOL Limited is one of the leading integrated energy and chemical company whichdeals in global level by providing fuels other chemical substances to different countrieswith lower availability of such resources. It includes Canada which requires at least 208million litres of fuel to be pumped in vehicle this provide a most productive place toSASOL Limited for providing fuels. The benefit of more sale of fuel in Canada marketact as a driver for company to setup its plant.Environment: Another major factors that act as a driver for globalisation is favourableenvironmental factors that a potential company have which support company to grow itsbusiness. For instance SASOL Limited expanded its business operations in Australia dueto its positive environmental factors that provide a favourable place to company forperforming its operations most effectively and successfully as compare to other places.Because the government of Australia has committed to develop a policy framework for
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