Analysing SASOL in the Global Business Environment: A PESTLE View

This report provides a comprehensive analysis of the global business environment and its impact on SASOL Limited. It begins by defining the concept of globalisation and then applies a PESTLE analysis to SASOL, examining the political, economic, social, technological, legal, and environmental factors affecting the company. The report identifies key drivers of globalisation and discusses the significant role of digital technology in reducing communication costs and facilitating global sourcing. It also addresses the challenges that globalisation poses to SASOL, such as high investment costs and environmental degradation, and recommends strategies to overcome these challenges, including setting investment limits and adopting sustainable activities. The report concludes that globalisation is crucial for removing trade barriers and enabling the exchange of services and products, with macro-environmental factors playing a key role in influencing SASOL at a global level.

Global Business Environment

Table of Content
 INTRODUCTION
 Concept of globalisation
 PESTLE analysis of SASOL Limited
 Analyse about key drivers of globalisation
 Impact of digital technology on globalisation
 Challenges that globalisation brings to organisation named as SASOL
 Recommend about how these challenges can be overcome
 Conclusion
 REFERENCES

INTRODUCTION
Global business environment refers to the environment in
different sovereign countries with factors exogenous to the home
environment of the organisation influencing decision making on
resource use and capabilities. Global business environment is
important as it contributes to new technology, infrastructure
development, managerial skills and providing better services. In
the present report, SASOL has been taken into consideration.

Concept of globalisation
Globalisation is the word that can be used to describe the
growing interdependence of world's cultures, populations,
economies on each other. It can be brought through cross-
border trade in goods and services, technology, people, flow
of investment, information and people. There are basically
five concepts of globalisation which includes political
globalisation, economic globalisation, common ecological
constraints, cultural institutions and values and globalisation
of communication.

PESTLE analysis of SASOL Limited
 Political Factors: SASOL limited is a company which
operates in major integrated oil & gas in various countries.
They also expose themselves to various political
environment and political system risks.
 To achieve success on global level , they have to diversify
the systematic risks of political environment.

Analyse about key drivers of globalisation
Drivers of globalisation refers to the reduction of
barriers to international trade, increased consumer
demand, lower cost of production and technological
developments in transportation and communication.
There are basically five key drivers of globalisation
which includes technological drivers, political
drivers, market drivers, cost drivers and competitive
drivers.

Impact of digital technology on globalisation
Digital technology plays a very important role on global level
in the world of business. Digital technology help in terms of
reducing cost of communication across different nations. It
also facilitate global sourcing of raw materials and other
inputs as well. Technology which are patented encourages for
globalisation and gives a new opportunity to grow themselves
in their field of business.

Challenges that globalisation brings to
organisation named as SASOL
As globalisation brings opportunity for chemical and
engineering company but it somewhere impacts the
performance of SASOL company. Due to globalisation,
engineers at SASOL company has to face certain challenges in
terms of economical production of materials. Globalisation has
created impact in terms of company's investment costs which
are very high at international level. It also contribute in terms of
environmental degradation where SASOL has identified
environmental sustainability as one of the top risk event.

Recommend about how these challenges can be
overcome
The challenges faced by SASOL company due to
globalisation can be overcome through following some
steps and positive approaches as well. High cost of
investment can be reduced through setting limits and
certain criteria due to which it helps in terms of positive
performance of company. Environmental degradation
can be improved through adopting sustainable activities
by the company.

CONCLUSION
The above stated report concludes that globalisation plays an important role in this world of business.
Globalisation is a factor which removes the trade barriers and allow another country people and
economies to exchange their services and products. The macro environmental factors plays a key role
in terms of influencing SASOL company at global level. There are certain key drivers of
globalisation which includes political, technological, market, cost and competitive drivers.

References
 Beck, U., 2018. What is globalization?. John Wiley & Sons.
 Buckley and et.al., 2018. International business. Oxford University Press.
 Chudik and et. al., 2020. Economic consequences of Covid-19: A counterfactual multi-country
analysis. Center for Economic and Policy Research: Washington DC Retrieved from
https://voxeu. org/article/economic-consequences-covid-19-multi-country-analysis.
 Dao and et.al., 2019. Why is labour receiving a smaller share of global income?. Economic
Policy, 34(100). pp.723-759.

Thank You