Global Business Environment: Challenges and Recommendations for SASOL

GLOBAL BUSINESS
ENVIRONMENT

TABLE OF CONTENT

INTRODUCTION
Global business environment is defined as the surround that offers suitable platform to
the different organisation so as to work in sovereign countries which has direct influence over
decision making and advancement of resources and its capability in progressive manner. The
global environment is dependent over different factors such as social, economical, legal and political
through which business working conditions get drives and serve effectively. The report below is based on
SASOL that is fast growing chemical and Energy Company within having headquartered in CapeTown,
South Africa. The company worked on newly developed graduate induction programme which is
sponsored by director of SASOL. The report below comprise of basic concept behind globalisation, pestle
analysis that has sustained influence towards organisation working, key driving factors of globalisation,
impact of digital technology on globalisation, challenges and complexities faced by organisation and
appropriate recommendation to get over from certain challenges.
Concept of globalistaion
Globalization is used to describe suitable growth and development through which
possibility to perceived higher competitive advancement and interdependence towards culture,
economy, and population brings sustained platform within cross cultural trade of different goods
and services in balanced mode. It also develops sustained interconnectedness in between different
people and businesses that eventually maintain lead towards global cultural, economic integration and
political balance. It advance ability to communicate with different sources of all across world and proceed
to attain higher profitable standards.
Pestle analysis
It is an analysis that is used to examine different factors that has direct impact over the
productivity and performance of business. It is a framework that used to determine macro
environmental factors through which management used to measure component of strategic
management that has positive impact over organisation functions. SASOL limited has direct impact
over integrated gas and oil and Pestle analysis offered suitable shape to competition and its competitive
landscape. The companies is looking to make new development of program which leverage its core
capabilities and competencies that has imperative impact over advancement of effectual strategy to
achieve long term success and objective in formative manner. The pestle analysis of SASOL is as
explained below as:

Political factor: It is a factor that has strong influence over the long term sustainability,
performance and profitability of business. The market presence of SASOL increases the
sensitivity of business over different countries. The stable political aspect provide balanced and
friendly nature in marketplace that predict higher growth of market trends. In political aspects
are in chaos it dissuade investors invest that induce negative impact over working of business. As
SASOL worked in international market and with this change in policy affects performance as
uncertainty get increases. In addition bureaucracy and corruption induce direct influence as
higher corruption level weakens the enforcement through which unpredictability is increases. It
affects business operation that is used to deal with fraudulent deals that is biggest threat over
sustainability of business.
Economical factor: It is a factor that relates with foreign exchange, labour and market
conditions, interest rate; saving and inflation rate with this growth trajectory of industry is
affected in direct manner. It is essential to measure the working to make effectual understanding
about lifecycle stages as economy offer suitable range of opportunity to expand business
working. SASOL Limited and its performance affected as per extend to host countries and its
spending over infrastructural development. A developed infrastructure facilitate working
potential in this GDP and growth rate advances the ability of business to pursue better strategies
and ability of consumers to spend also increases. The demand and supply of labour also leverage
performance as ability to achieve standardised objective with support of skilled and labour
workforce increases. In this management provide adequate wage to its workers which prevail
regulatory environment with perfection.
Social factor: It is a factor that drive influence of societal norms, value, attribute and trends in
favoured manner. In this it is essential that business must relates with the effectual understanding
about demographic trends, consumer spending and power structure that is used to make effective
marketing information that retrieved targeted customers under which probability to appeal
certain customers is increases. In this business worked to measure different pattern such as migration
trends, socio-economic variable that paramount growth potential. In addition company also reflects its
acceptance towards equality and power distance that alter effectual alignment within market in effective
manner.