Globalization: Key Driving Factors, Impacts of Digital Technology, and Challenges for SASOL

This presentation discusses the concept of globalization and its impact on businesses, with a focus on SASOL limited. It covers PESTEL analysis, key driving factors, impacts of digital technology, challenges, and recommendations for SASOL to deal with such challenges. The presentation concludes by emphasizing the importance of studying social, cultural, political, and technological changes to make strategic decision-making successful.

Globalization
PART 1

TABLE OF CONTENT
 INTRODUCTION
 Concept of globalization
 PESTEL analysis
 Key driving factors of globalization
 Impacts of digital technology upon globalization
 Challenges and complexities globalization brings to SASOL
 Recommendations to deal with such challenges
 CONCLUSION

INTRODUCTION
 In today's business world, Globalisation plays a vital role in the success of business,
basically it is a term which is used to describe about how technology, new ideas and trade
have made the world into a more connected place.
 The presentation will be based on SASOL limited which is one of the fastest growing energy
and chemical company situated in London. Its head office is established in Cape Town South
Africa.
 SASOL has good presence in different locations such as New York, Australia, Gabon and
Frankfurt.
 The company always believe in expansion of its business especially in international markets.
The firm focus on continuous improvement, so they decide to expand its business.

Concept of globalization
 To be successful in this competitive world, every business needs to make their presence
globally, this is what globalization says.
 The concept of globalization is all about the interconnectedness of businesses, processes,
people all across the world that eventually leads to global economic, cultural and political
integration.
 With the expansion of business the company can easily able to communicate all over the
world.
 In short, globalization is all about ability of business to communicate and move easily with
other people all over the world in order to conduct the operations of business, activities
relating to it at global level in different locations.
 With the increase in globalization, companies are able to offer products or services at
reasonable price to consumers.

PESTEL analysis
 Before entering into new market, business manager needs to identify the external factors
which can impact the business and its performance.
 PESTEL analysis is an effective tool which is used by companies to track the environment
they are operating in or are planning to expand business or launch any new project.
Political factors
• tax policies, tariffs, trade restrictions
Economic factors
• interest rate, inflation rate
Social- demographics, education, culture, family structure

Continued..
Technological
factors
• Marketing
• Production
• Information and
communication
• Research and
development
Environmental
factors
• Climate change
• Carbon footprint
• Waste
management
• Recycling
Legal factors
• Consumer laws
• Health and
safety standards
• Labor laws

Key driving factors of globalization
Technological
change Financial
liberalisation
Growth strategies
of multinational
and transnational
companies
Economies of
scale
Financial and
Competitive
drivers.

Impacts of digital technology upon globalization
 Digital technology has increased the connection between customers and company in any
country.
 In today's era Technological advancements have reduces costs of communication across
nations.
Increased communications, Global
flows of data
Enhancing connectivity, Increased
communications
Access to trade easily

Challenges and complexities globalization brings to SASOL
Immigration Challenges and Local Job Loss
• The most common and first challenge relating to globalization is immigration
challenges and local job loss.
Global Expansion Difficulties
• If company does not understand about the legal systems then it will lead to
impediments and severe financial loss.

Recommendations to deal with such challenges
Cultivating
partnerships.
Adapt technological
advance to cope up
with global
expansion challenges
fostered cultural
diversity
Enhance cross
border knowledge
sharing
Navigating new
legislation
Stop Cultural
Differences.

CONCLUSION
 To conclude, When business focus on expanding its business they study the variety of
factors like social, cultural, political and technological changes.
 By doing so, they are able to decide about how these changes have shaped the world in the
recent decades.
 With the help of PESTLE tool, senior managers and top-level management team of the
company can make strategic decision-making process successful.
 The presentation has also concluded about impacts of digital technology on globalization
and challenges relating to it with recommendations to overcome with challenges.

References
 Yameogo, C. E., Omojolaibi, J. A. and Dauda, R. O., 2021. Economic globalisation,
institutions and environmental quality in Sub-Saharan Africa. Research in Globalization. 3.
p.100035.
 Gygli, S. and et.al., 2019. The KOF globalisation index–revisited. The Review of
International Organizations. 14(3). pp.543-574.
 Antràs, P., 2020. De-globalisation? Global value chains in the post-COVID-19 age (No.
w28115). National Bureau of Economic Research.
 Flew, T., 2018. Post-globalisation. Javnost-The Public. 25(1-2). pp.102-109.
 Gorynia, M., 2019. Competition and globalisation in economic sciences. Selected
aspects. Economics and Business Review. 5(3).
 Ivanov, D., Dolgui, A. and Sokolov, B., 2019. The impact of digital technology and
Industry 4.0 on the ripple effect and supply chain risk analytics. International Journal of
Production Research. 57(3). pp.829-846.