Globalization and its Impact on SASOL Limited: A PESTLE Analysis

This presentation discusses the concept of globalization and its impact on SASOL Limited. It includes a PESTLE analysis of the macro environmental factors affecting the organization and the driving factors of globalization. The presentation also evaluates the challenges and complexities of globalization and provides recommendations to overcome them.

GLOBALIZATION
(PART-1)

INTRODUCTION
 The concept of globalization can be described as the expansion of trade, technology,
information, products and various kinds of services from one country to another in order to
provide the customers with enhanced services along with an exclusive experience.
 The current presentation is based on the study of SASOL Limited.
 The current presentation includes a brief introduction to the concept of globalization. It
also aims to describe all the macro environmental factors that affects the organization using
the PESTLE analysis.
 It also discusses the factors that drives the globalizations of a company and an examination
of the impact of the digital technology with respect to the globalization.

Introduction to globalization
 Globalization can be described as the process of
transferring of goods and services from one nation to
another.
 The globalization includes the trade of goods, services,
technology, information, capital, data, practices and
such other things between different countries.
 The globalization has its own set of advantages and
disadvantages with respect to the companies across the
globe (O’Rourke, 2019).
 The globalization allows an organization to increase
and extend their customer base by availing their
products and services to different types of customers
across the globe.

PESTLE analysis of SASOL Limited
 PESTLE analysis is a framework that is used
by different organizations in order to
determine the macro environment factors that
affects the business operations of a company.
They are as follows:
 Political factors
 Economic factors
 Social factors
 Technological factors
 Environmental factors
 Legal factors

Key driving factors of globalization
 There are several factors that drives an organization
such as the SASOL Limited towards the concept of
globalization. They are as follows:
 Digital revolution
 It has been determined that with the advancement of
technology, it has become easy for the organizations
to expand its business operations across the globe.
 Financial liberations
 Another leading factor that drives globalization
within a particular industry is the financial
liberation.
 Increase in the international business
 There are organizations that imports and exports
their products from different countries from
different parts of the world.

Significant impact of digital technology upon globalisation
 It has been identified that one of the leading drivers of
globalization all over the world is the digital
technology. The digital technology has given rise to
various opportunities for business organizations and
also focus towards expanding their business operations
across the national boundaries. They are mentioned
below:
 Artificial intelligence
 The use of artificial intelligence provides different
organizations including the SASOL Limited to expand
their business operations all over the world.
 With the help of the artificial intelligence, the
company can easily collect the data and important
information associated with their customers within the
market.

Critical evaluation of challenges and complexities
globalization bring to SASOL
 There are several challenges and complexities that an organization opting for globalization has to
face within the market (Lacal-Arántegui, 2019). The challenges faced by the SASOL Limited with
respect to the globalization has been explained below:
 International recruiting
 One of the leading challenges that the SASOL Limited has to face within the international market
because of the expansion and globalization of the business enterprise is the recruitment.
 Payroll and compliance challenges
 Another major challenge that the SASOL Limited has to face because of the globalization is the
challenges associated with the payroll and the compliance of the laws within the country (Jungherr,
2019).

Recommendations
 In order to eliminate the challenges faced by the SASOL Limited, the company to refer to
the following:
 In order to eliminate the issue of international recruiting, the company should hire a special
team for the recruitment of new employees that are well versed with the existing
international recruitment policies of a country. This will help the company in hiring
employees belonging to different regions on the basis of their qualifications and help the
company enhancing the organizational performance.
 Similarly, the company can also hire or get in touch with a recruitment agency belonging to
the target country which knows about the laws and other major aspect that needs to be
considered (Behera, and Sahoo, 2021).
 In order to eradicate the challenges associated with the legal laws and compliance of the
same within the target country, the company should keep a lawyer that guides the
organization with respect to laws and the amendments regularly.

CONCLUSION
 From the above report, it has been determined that the information technology has played
an essential role in the process of globalization across the world.
 The presentation provides a brief introduction to the concept of globalization and provides
a list of challenges faced by the SASOL Limited with respect to the globalization process.

REFERENCES
 Behera, J. and Sahoo, D., 2021. Asymmetric Relationships Between Information and
Communication Technology (ICT), Globalization, and Human Development in India:
Evidence From Non-Linear ARDL Analysis.
 Jungherr, A., 2019. Book Review: Social Theory after the Internet: Media, Technology and
Globalization (Vol. 24, No. 1, pp. 117-119). Sage CA: Los Angeles, CA: SAGE
Publications.
 Kyove, J., and et.al 2021. Globalization impact on multinational enterprises. World, 2(2),
pp.216-230.
 Lacal-Arántegui, R., 2019. Globalization in the wind energy industry: contribution and
economic