Global Businesses Environment Assignment : SASOL Ltd

GLOBAL BUSINESSS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Define key factors of market, cost, environment and competition which derives global
trade and commerce....................................................................................................................1
TASK 2............................................................................................................................................3
P2 Complexity of strategic challenges that faced by a company while operating globally .......3
TASK 3............................................................................................................................................4
P3 Evaluation of globalisation in organisational leadership, governance, structure, leadership,
function and culture.....................................................................................................................4
P4 Influences of sustainable and ethical globalisation on functions of a company ...................6
TASK 4 ...........................................................................................................................................7
P5 Different ways decision-making can work efficiently in global context...............................7
P6 Determine different routes to internationalise a business involving key barriers..................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Global business environment is referred to the trade of technology, goods, services,
knowledge or capital across domestic borders in global context. It include transactions and
resource sharing beyond the borders so that domestic organisations can improvise their
performance and satisfy customers base in a more appropriate manner (Alkhafaji and Nelson,
2013). This assignment is written in context with SASOL Limited which is Africa based fast
growing chemical and energy organisation, headquartered in South Africa. This report will cover
about key factors of environment like market, cost, competition which derives global trade.
Beside this, complexity of strategic challenges while operating globally are mentioned. Influence
of globalisation in leadership, governance, function, culture and structure is discussed. Influences
associated with sustainable and ethical globalisation on functions of an organisation are
discussed briefly. Beside this, different ways by which decision making can effectively impact
and different route to internationalise business are discussed involving key barriers.
TASK 1
P1 Define key factors of market, cost, environment and competition which derives global trade
and commerce
SASOL limited is a fast emerging South Africa based chemical and energy company.
Company is performing well in domestic regions and successfully expanded to Canada, Gabon,
Mozambique and Australia. Company is planning to further expand in other regions soon. This
assignment will include barriers that are faced by a global business due to globalisation while
entering a new marketplace. Globalisation is defined as the procedure of interaction and
integration among companies, government and individuals in global manner. As a multifaceted
and complicated aspect, globalisation is treated as a capitalist expansion which integrates
regional and national economy of a nation into unregulated and globalised market economy
(Bititci, Cocca and Ates, 2016). Some benefits of globalisation are mentioned below:
 Globalisation results in free trade which is a good way for nation to exchange their
resources, manpower and other products. Due to this, domestic manufactures will have
access to bigger export markets.
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 It benefits in enhanced economies of scale as goods or services of a company can be
produced in any part of globe. Due to this, prices of goods will be low and sales of
company will be high.
Drivers of globalisation
There are various drivers which are related with globalisation. With the help of these
drivers, an organisation can acknowledge the global business atmosphere and related concepts in
a precise manner. Main drivers associated with globalisation are market, cost, government and
competition. In context with SASOL limited which is planning to expand in further countries,
these drivers will posses high influence on their business operations. These drivers are mentioned
below:
 Cost: It is considered as one of the important driver associated with globalisation. Cost of
production, distribution and other costs are varies from nation to nation. This is because
the costs associated with labour, capital and land are different. Operating in region where
these costs are less will be beneficial for SASOL limited as it will results in more
revenues and profits after sales. For example, if SASOL limited wishes to expand its
business operations in UK, pay scale of labour will be high in comparison with labours
available in Asian region, due to this, revenues of company will reduced. But workers in
UK are more capable and skilled due to which overall productivity of company will
enhance (Coltman and et. al., 2015).
 Market: This driver of globalisation includes areas like transferable marketing,
acknowledging the basic needs of targeted consumers, offering standardized products at
international level etc. one essential aspect of globalisation is to fulfil the needs of global
customers in a proper manner. In this respect, manager in SASOL limited is required to
acknowledge the needs and requirements of customers of a particular region in a proper
way. This will allow them to offer and advertise those products via different marketing
channels due to which company can earn desired revenues and profits.
 Competition: Each sector whether it is dealing in retail or manufacturing faces wide
competition. It is faced by those organisations which deals in same industry or sector. It
is another driver of globalisation as SASOL limited is required to identify their potential
competitors before expanding in a new region. It will benefits them in deciding if it is
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