SASOL: Challenges and Opportunities in Global Business Environment

This report provides a comprehensive analysis of SASOL's global business environment. It begins by defining the concept of globalization and its impact on businesses. The report then applies a PESTLE analysis to assess the political, economic, social, technological, legal, and environmental factors influencing SASOL's operations. It examines the key driving factors of globalization, including market, cost, competition, and environmental factors. The report further explores the significant impact of digital technology on globalization, highlighting its positive effects on businesses. It critically evaluates the challenges and complexities that globalization poses to organizations, such as international recruiting. Finally, the report aims to provide recommendations to help SASOL navigate these challenges and capitalize on the opportunities presented by the global business environment. The report is based on the graduate induction program sponsored by the director of SASOL. The report emphasizes the importance of understanding the macro environment and the need for businesses to adapt and innovate in order to succeed in the global marketplace.

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.

Technological factor: In this factor rapid advancement in terms of technological diffusion and
advancement is processed that increases significant importance in strategic manner. It assists
SASOL to capture market trends that assist to attain suitable benefits such as increasing
profitability, boosting innovation, enhancement in operational efficiency. In this social media
marketing plays essential role as led to enhance effectual collaboration with potential customers.
The technological trends are supported by development of creative campaigns at social media as
in order to develop bran communities.
Legal factors: It is consist of regulatory structure and affects the working consequences along
with that if not followed that induce negative impact over working preferences as well. The legal
prospect of business comprise of employee protection laws that is followed by health and safety
laws in which adequate surround is provided by business to advance its workforce in terms of
moral and ethical obligation. The consumer protection laws are followed under which security
and privacy concern is protected that assure compliance of customers.
Environmental factors: The advanced consciousness towards environment changes climatic
conditions along with this developed environmental standards as well as laws and regulation are
required to be following by all organisations. SASOL is always been focused about to recycle
and waste management through which pollution get controlled and in this better innovative
practices are adopted by the entire organisation. In addition usage of renewable technology also
is beneficial as it enhance customer base and brand image in competitive market.
Key driving factors of globalization
Globalization refers to a formative interchange of technologies, goods and services,
merchandise between the various different countries. There are several factors of globalization
that is highly effective to influence the overall operational function of business within the
business environment. Globalization provide companies and country a wide level of advantage
in terms of developing per capita income, offer more job opportunities, easy availability of raw
resources etc. globalizations is mainly done in several types of businesses such as capital market,
gold market, chemical and pharmaceutical market, oil market etc. that helps merchandise to free
trade movement, information, services, data and many more things. There are several key factors
of globalizations that is helpful to the SASOL in terms of doing business on global level. These

aspects include market factor, competition, environment factor, cost factor that are demonstrated
below:
 Market factor- It is to be demonstrated that from past years companies are focusing on
cross border business long with domestic business that reflects an opportunity to several
organisation in terms of expanding their business operations. In context of present case
study i.e. SASOL this factor of globalization helps organisation to markets its products
and services to other business on global level so that overall market share and position is
to be build high. In this company also examine the needs and wants of customers on
global level so that they work on satisfying their needs in best possible manner.
 Cost factor- It is another key factor of globalization that reflects the cost of ocean
shipping is goes down due to the high usage of containerization, bulk shipping and many
other efficiencies. If the cost of shipping products and services is lower within the global
market that is helps the organisation to bring cost of manufacturer closer to the export
merchandise. This represents the market in a global contestable manner.in case of
SASOL Company due to low cost pay in shipping the products they enjoy the benefits of
cost saving due to which their overall profitability is to be developed.
 Competition- It is another key factor of globalization that represents huge competition
presents in the international market because number of organisation offer homogenous
types of products to customers. Therefore, it shows high competition in marketplace. In
case of SASOL company manager need to focus on diversify their operations so that they
present products in differentiate manner to gain competitive advantage within
marketplace. in this technology is a major factor that helps business to hire a talent in all
over the world who take the responsibility of generating profitable results and reduce the
scrap.
 Environmental factor- This factor of globalization represent the environment where
business organisation are done their trading. In terms of SASOL company that is a
chemical based company where manager need to frame a strategies and policies so that
they can easily understand the present environment and focus on gaining profitable
results. By doing this manager of SASOL easiy done their functions at international level
and attain profitable results by gaining competitive advantage within marketplace.

Significant impact of digital technology upon globalization.
Digital Technologies have advanced more rapidly and allows more innovation in in
history that waiting around 50% of developing world's population in only two decades and
transforming Society for better development (Contractor, Foss and Lahiri., 2019). There are
many impacts which consist to digital technology in positive as a negative but as Digital
Technology plays an important role in human beings life as well as for economic infrastructure it
provided innovative resources in which many companies are supplies for their business purposes
and generates more relevant opportunities that directly impact on economic development.
Introspective of SASOL company e having a digital technology impact that creates more better
opportunities and positive outcomes. As the technology is progress which is keep drivers to
improve zinc comes as standard of living by gaining new knowledge as it is necessary to
development for society. There is one point prove that globalisation boost the digital technology
e impact in a better way:
Globalization boost technological development
The level of increasing the Global knowledge intensity close point important benefit of
globalisation. At the time of globalisation has been much oriented where it is as possible
negative side effect along with study shows that globalisation is amplified with the spread of
Technologies across borders in two ways (Nam and Bao Tram., 2021). Through first
globalization allows courses which can easily access in foreign knowledge as well as the result
the Rise emerging market forms and the strength and form in sentence innovative to adopt
foreign challenges. As the impact of digital technology arising in globalization which emerging
market of economy in new level.

Source: https://blogs.imf.org/2018/04/09/globalization-helps-spread-knowledge-and-technology-
across-borders/
At increase the transfer of knowledge and Technology on the basis of market economy
has partly offset the effect on recent slowdown innovation at the technology and help to drive
income convergence for many imaging economics. There's A final study that Technology brings
benefits threw up bringing the innovation at a suggest that growing contribution of China and
Korea are one of the advanced level of Technology used and that development is faces on
upbringing of that technology and innovation.
Critical evaluation of challenges and complexities that globalization brings to
organization
Globalisation having challenges in which the organisation faces relevant time of certain activities
which are given below:
International recruiting: Any business or organisation plans to establish the venture and
globalisation that lead to different opportunities that act and gain more positive outcomes. In
addition there is one opportunity to hiring new and fresh candidates with have more potential and
competency level of people who are seeking for new job opportunity (Varshney., 2020) . But it
turns into challenge for organisation when there is a lack of skilled employees are having a more
demanding employees and there is no negotiation in the wages create more barriers for
organisation like SASOL company.
In this company need to create a strategy or plan how they will interview the candidates
and make sure that they are qualified when thousands of Miles separate from headquarters. The
next step would be that venture need to know that market demands and salary benefits to offer on
the basis of competitiveness (Lifintsev, Fleșeriu and Wellbrock, 2019). It is ensured by the
successful hiring where HR must focus on those connected who are well aware about the specific
culture language and time zone factor that suits to the company.
Manage employee immigration: immigration challenges causes a lot of headache and more
stressful task as if hiring of an employee is outside the boundary of a country it is very important

to completion of immigration and provide the proper documentation to enter in in that country
where the job is suitable.
Loss of culture identity: this is one of the most harmful factor in which organisation fail to co-
ordinate specific country culture and behalf of that it generates more loss of Global diversity as
well as father opportunities that can be undertaken by future outcomes.
Increasing of competition: this is one of the most common challenges factor in globalisation
what's an organisation when there is a high competition in competitive market it is hard to
sustain (Rehman, Kashif and Mingione., 2019). Increases disengaged of talented employees
because of these attractive benefits and ease of going Global due to service like International the
Global Marketplace having more other opportunities as a form of companies are provided much
benefit.
Recommendations:
On the basis of above all study factor about Global Business Environment as to suggest
aur comment better option for SASOL company. That expand the business in globalisation by
concerning some of the factors such as
 High competitive competition market
 Must aware about the Global country culture
 Ensure about the company policies and regulation must be ethical.
 Try to generate more investment opportunity along with job facility.
These are some of important factor activities for Global Business Environment which developed
the economic as well as social infrastructure to providing all possibilities benefits that economy
boost get a chance to sustain for long term in Global competitive market.
CONCLUSION
It has been concluded from above report that global business environment offer adequate
place to the business to get performed its business functions and operations through which
possibility to attain higher competitive advantage and profitability is increased in flexible
manner. In addition globalisation offer different platform to business in order to expand its

working operations through which higher profit and long term sustainability is attained with
perfection.

REFERENCES
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