Global Business Environment Project: PESTLE Analysis and Challenges

This project examines the global business environment, defining it as the external and internal factors influencing international business operations. It explores the concept of globalization, highlighting its key driving forces, such as technology and liberalization, and the significant impact of digital technology. The project includes a PESTLE analysis of SASOL Limited, evaluating its political, economic, social, technological, environmental, and legal factors. It identifies challenges of globalization, including rising costs and increasing customer expectations, and provides recommendations for overcoming these challenges, such as minimizing costs and meeting customer needs. The report concludes by emphasizing the importance of strategic elements like structure and systems in navigating the global business landscape and provides a list of references.

Global Business
Environment
(Project 1)

Table of Content
Introduction
Concept of globalization
Key driving forces of globalization
Significant impact of digital technology upon globalization
PESTLE analysis of an organization
Challenges of globalization and strategic challenges represents for
the organization
Recommendations on how to overcome these challenges
Conclusion
References

Introduction
Global business environment can be defined as the environment in
various independent nation along with different factors exogenous
to the home environment of the organisation. It is mainly divided
into external and internal environment. An organisation regulates
and operates their business at international level which required to
analyse the social environment of the host nations.

Concept of globalisation
Globalization is a term referred as increasing relation of social,
economic and political sectors across political and cultural
boundaries through out the world. In other words, it can be said as
it is the process of accommodate nations and public by political,
economical and cultural into a broad community.

Explain the key driving factors of
globalisation
It has been seen over the years in terms of increased foreign trades,
capital flows, acceleration of growth rates and rising real per
capital arises for those countries who has initially taken part in
globalisation.
The forces which become the part of this revolution -
 Technology
 Liberation

Significant impact of digital
technology upon globalisation
In current time period, the advancement in technology has lead the
main role in globalisation. New technology were introduced in
our day to day life such as communication, transport,
Information technology etc. Technological development is
considered as one of the main revolution which mostly drive
the force into the globalisation.

PESTLE analysis of organisation
Political factor - This is one of the major factor which impact on
SASOL limited operations. It operates through many countries
in oil & gas services.
Economic factors – SASOL limited uses country's economic
which includes growth rate, rising prices and industry's
economic indicators such as oil &gas, growth rate where
consumer spending to forecast the growth.

Contd..
Social factors – This factor includes the SASOL limited where
culture and the way of approach towards their organization.
Technology factors – It is the vast ongoing industry across the
world. SASOL limited has been affected by this factors were
current technological developments has been done by their
competitors.

Contd..
Environmental factors –Before entering into the market and
started business SASOL limited has analysed the environment
standards which need to operate in those market. This firm
depends upon climate change, recycling, waste management in
basic materials sector.
Legal factor – The company will be affected by legal factors
through discriminated law, employment low, health and safety
low, consumer protection and e- commerce etc.

Challenges of globalisation and strategic
challenges represents for the organisation
Cost – The cost of establishing and running business operation is
rise with the globalisation. It is true even if they are reaching
with international customers and provided them required
products and services.
Increase customer expectation – This is ascertained as an issue
where company require to analyse their customers demands as
per if they does not fulfil their expectation then this will create
major issue in the global market.

Recommendations on how to
overcome these challenges
It can be recommended that company need to establish their
business in that nation where cost is minimum. Also they
develop reasonable price products and services which attract
large number of customers at international level. On the other
hand, SASOL limited require to fulfil their customers
expectations and anticipation whether they are domestic and
international.

Conclusion
According to the above report, it can be analysed that
Globalization is a term referred as increasing relation of social,
economic and political sectors across political and cultural
boundaries through out the world. Strategy, structure and system
are considered as hard elements which is easier to recognise and
manage their business operations.