Global Business Environment: Sasol's Challenges and Opportunities

This report provides an analysis of Sasol Limited within the global business environment, exploring the concept of globalization, its key driving factors, and the impact of digital technology. It identifies global influences such as political and economic factors that affect Sasol's operations. The report highlights complexities and challenges faced by Sasol due to globalization, including raw material unavailability and international recruiting difficulties. Recommendations are provided to overcome these challenges, emphasizing the importance of understanding cultural differences and developing a global acumen framework. The conclusion reinforces globalization's role in interconnecting the world and facilitating international business practices. Desklib offers a range of resources, including past papers and solved assignments, to support students in their studies.

GLOBAL BUSINESS ENVIRONMENT

TABLE OF CONTENTS
Concept of Globalization
Global influences on Sasol
Key driving factors of globalization
Impact of Digital Technology upon Globalization
Complexities and challenges that globalization brings to Sasol
Recommendations on how to overcome these challenges

INTRODUCTION
 The global business environment is known as the environment in
sovereign countries from different parts of the world with
external factors having an influence on the decision making,
capabilities and resource use of businesses.
 Sasol Limited is a chemical and energy company which is based
in Sandton, South Africa. It is related in development and
commercialization of technologies and production of various
liquid fuels, electricity and chemicals.

CONCEPT OF GLOBALIZATION
 Globalization is the process to interconnect the world increasingly which was previously isolated due to
the physical and technological distance.
 It is demonstrated by the growth in interaction between people in the world which involves sharing of
goods & services, ideas, investment and cultures.
 Globalization requires long distance or transnational extensions of culture, politics or economy.
 It reflects the mutual integration and the expansion of the market frontiers and the significance of the
rapid growth in all types of productive activities.

GLOBAL INFLUENCES ON SASOL
 Political
Political factors play a significant role in
interpreting the aspects which can have an impact on the
profitability of Sasol Limited as the company has its roots
in many countries and is exposed to different types of
political environments.
 Economical
The factors such as government intervention in
free market, interest rate, inflation rate, foreign exchange
rate, economic cycle etc. consists of variables that have a
direct effect on the business.

KEY DRIVING FACTORS OF
GLOBALIZATION
 Cost Drivers : Companies all over the world are focusing on the
lower manufacturing and cheap labour costs which helps them to
stay competitive in the global environment.
 Market drivers : The customers in various parts of the world
demand for similar products & services and opportunities arise for
scaling through the marketing of these standardized offerings.
 Competitive Drivers : The competitive diversity, interdependence
and high trade levels have increased the potential of globalization of
industries.

IMPACT OF DIGITAL TECHNOLOGY
OVER GLOBALIZARTION
 The advancements in technology over the years have positively impacted the globalization process. It has
been one the prime driving force of globalization.
 Digital Technology has connected the whole world into one place and has resulted in the reduction of
barriers of place and time in business dealings.
 The major progress in the technological area has helped in reducing transportation and communication
costs across countries and facilitates the acquiring of raw materials at as global level.

COMPLEXITIES AND CHALLENGES THAT
GLOBALIZATION BRINGS TO SASOL
 Unavailability of Raw Materials : There are
difficulties to access the feedstock and when raw
materials required are not easily available it delays the
production process.
 International Recruiting : The most common
challenge for Sasol is recruiting candidates across
borders. Firstly, a proper plan is required to make sure
that the candidates that get selected are highly
qualified.

RECOMMENDATIONS ON HOW TO
OVERCOMNE THESE CHALLENGES
 Understanding the culture : Sasol should give importance in
understanding the culture of the countries in which it is expanding its
operations.
 Develop the global acumen framework : The in-depth research of
the political, economical and cultural factors is required by the
management of Sasol to develop a structured acumen framework for
the company.

CONCLUSION
 Globalisation is the process of making the world interconnected and it provides
companies and the people an opportunity to conduct business practices globally.
 It provides various benefits to everyone by easing the transportation of goods and
services in different parts of the world.

REFERENCES
 Andreoni, A. and et.al., 2021. Structural Transformation in South Africa: The
Challenges of Inclusive Industrial Development in a Middle-Income Country. (p. 416).
Oxford University Press.
 Boso, N. and et.al., 2019. The internationalization of African firms: Opportunities,
challenges, and risks. Thunderbird International Business Review. 61(1). pp.5-12.
 Burlacu, S., Gutu, C. and Matei, F.O., 2018. Globalization–pros and cons. Calitatea.
19(S1), pp.122-125.
 Ergashev, I. and Farxodjonova, N., 2020. Integration of national culture in the process
of globalization. Journal of Critical Reviews. 7(2). p.477.