Unit 18 - Globalization: Drivers, Challenges, and SASOL Analysis

This presentation provides an overview of globalization, defining it as the expansion of products, technology, and knowledge across borders. It focuses on SASOL, a South African chemical and energy company, using a PESTLE analysis to illustrate global influences. The presentation identifies key drivers of globalization such as cultural exchange, technological advancements, reduced trade barriers, and growth strategies of multinational organizations. It also examines the impact of digital technology on globalization, including reduced transportation costs and the emergence of a global village. Furthermore, it addresses the challenges and complexities of globalization, such as international recruiting, managing employee immigration, and navigating tariffs and compliance issues, offering recommendations for overcoming these challenges. The presentation concludes that globalization is characterized by the growing interdependence of economies, cultures, and populations, driven by cross-border trade, technology, and investment flows.

Drivers and challenges
for globalization

Table of content
• Introduction
• Company Overview
• PESTLE analysis to illustrate the broader and global influences on
SASOL
• Key driving factors of globalisation
• Impact of digital technology upon globalisation
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 Challenges and complexities globalisation
 Recommendations on how such challenges can be overcome
 Conclusion
 References
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Globalization is defined as the expansion of products, terotechnology, knowledge and
employment across national borders and cultures. From an economic point of view
globalization is refereed to as mutual dependence and relations between national
boundaries and different cultural backgrounds which is developed because of free trade.
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Introduction

Company Overview
 The business firm selected for this
presentation is SASOL, which is South
African chemical and energy company.
 The company was established in the year
1950 and has globally expanded to 33
countries.
 The company was established in the year
1950 and has acquired many subsidiaries over
the years.

Political Factors
Economical Factors
Social Factors
Technological Factors
Environmental Factors
Legal Factors
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PESTEL analysis to showcase global influences on SASOL

Cultural exchange
Advantages of technologies
Reduction in cross trade barriers
High competition
Growth strategies of transnational and multinational
organisations
Key driving factors of globalisation
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Cultural exchange: Individuals travel to different nations and
share their cultural practices and beliefs
Advantages of technologies: Improvement in accessing
information
Reduction in cross trade barriers: Imposes tariffs and quotas
on commodities imported in nations
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Increase in consumer demand: Demand of customers for products
increases
High competition: Companies penetrate in other nation for selling
product expand its market share
Growth strategies of multinational organisations: Organisation
have expand businesses internationally for generating revenue and
profit growth
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Globalisation refers to the process of integration across world space arising from the
interchange of goods, services and other aspects of culture. Global technology creates
impact on the areas of life including medical, cultural, economical and political. The
advancement in technology have facilitates globalisation.
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Impact of digital technology upon globalisation

Reduce costs of transportation and communication:
Facilitates global sourcing of raw material and other inputs
Global village: Information technology has led to the
emergence of the global village
Fewer cultural barriers: Possible for organisation to
communicate effectively
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International Recruiting
Managing Employee Immigration
Incurring Tariffs and Export Fees
Payroll and Compliance Challenges
Challenges and complexities globalisation
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