PESTEL Analysis of SASOL Limited
Added on 2021-02-20
14 Pages4379 Words510 Views
Global business environment
Table of ContentsINTRODUCTION...........................................................................................................................3PART 1............................................................................................................................................31. An introduction to the concept of globalisation.................................................................32. An explanation on the driving factors of globalisation......................................................43. The significant impact of digital technology on globalisation...........................................44. PESTEL analysis of SASOL..............................................................................................55. The challenges of globalisation and strategic challenges in SASOL.................................66. Recommendation in order to overcome challenges............................................................7PART 2............................................................................................................................................8An explanation of structure, culture and governance of SASOL...........................................8An evaluation of global operations influence to the business in global market...................10An evaluation of ethical and sustainable factor in global market........................................11Assess factors affected to decision making in the global context........................................12Assess the strategic expansion routes of organisation with advantages and disadvantage..12CONCLUSION..............................................................................................................................14References......................................................................................................................................15
INTRODUCTIONGlobal business environment is refers the environment in the different countries withvarious factor to the home environment of organisation which influence the decision making.The global business environment can be classified into two part such external and internalbusiness environment (Adekola and Sergi, 2016). The external factors includes political, social,technological, economical, environmental and legal. The report is based on “SASOL limited”which is fast growing energy and chemical company. This company is established at SouthAfrica. The company is also expand into the different countries such as Canada, Gabon and hopefor expand into another country very soon. The study will analyse key factors of globalcommerce and trade. This will be explained by the complexity of strategic challenges in theglobal environment. Report will evaluate by the leadership, structure and culture of globalisationis influence to organisation. The report will includes by the different ways which are help towork in effective manner in global context. It will also determine by the various routes tointernationalisation with key barriers. PART 11. An introduction to the concept of globalisation.The globalisation is the process of interaction between peoples and companiesworldwide. This highly advances in the transportation and in communication technology. In thiseconomies and societies are cross information, technologies, ideas, capital, finance, product andservices. It has advantage and disadvantage to the social, political and culture for development ofcompany which want to expand into global business environment. The globalisation is considersin areas such as political, economic and culture globalisation. All have their own concept and keyfactors. The culture globalisation is refers the transmission of ideas and values in ways to expandsocial relation. On the other hand the political globalisation refers to the growth of politicalsystem in size and complexity. The economic globalisation can be described as aninterdependence of different nations around globe with the free trade. It also helps in raising thestandard of living in poor and low developed countries by providing various job opportunities atin global environment (Arizpe, 2015). The main concept of globalisation is to give competitiveadvantage in multiple area. Economically, it has involves goods, services and economic sourcesdata, technology capital.
2. An explanation on the driving factors of globalisation.There are various key driving factors of globalisation which can impact the business andits growth. The key driving factors are as follows:Liberalization:The liberalization is used in different government like foreign direct investment. It is themajor tool which is allow to MNCs companies to work freely in business market. Consumer needs:Consumer is king and very important factor of the present global market. Demands ofcustomers are increasing daily and there are various products and services in the market whichhelps in order to satisfy needs and wants of customers. Customers needs develop effectiveopportunity for international business and trends.Resources and market:The resources and market both are very important key factor of the globalisation. Theresources like oil, gas, coals, human resources and chemical are important for the global market.3. The significant impact of digital technology on globalisation.The digital technology is creating huge impact onglobalisation in both negative as wellas in positive manner. Now a days technology is more advanced and it is most important keydriving factor of globalisation. The technology advancement helps in reducing cost oftransportation and communication across the nation (Baller, Dutta and Lanvin, 2016). Digitaltechnology is the create the various opportunities for the business in the globalisation. This givesimpact on globalisation in negative and positive ways. The information technology has led toemergence of global. On the other hand, use of advanced technology for production is restrictedto rich country with high wages. Technology is easily transferable in the developing countries atthere high tech technology is used for improvement of profitability. This help to globalise worldand its economy. Advanced technology helps to improve income and standard of living. With thehelp of high technology company is able to reduce distance between time and place. This givesvaluable and positive impact on globalisation.
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