Global Business Environment Analysis Report: SASOL Limited Strategy

This report provides a comprehensive analysis of the global business environment, focusing on the expansion strategies of SASOL Limited. It begins with an overview of globalization and its drivers, including market factors, cost considerations, competition, and environmental influences. The report utilizes a PESTLE analysis to evaluate the political, economic, social, technological, environmental, and legal factors impacting SASOL Limited. It further explores the influence of digital technology on global business operations and identifies key challenges and opportunities. The report then evaluates ethical and sustainable globalization influences on organizational functions, different decision-making approaches in a global context, and various routes to internationalization. The conclusion summarizes the key findings and provides recommendations for SASOL Limited's global expansion. References to academic sources support the analysis and recommendations.

Global business environment
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Contents
Contents...........................................................................................................................................2
TASK 1 & TASK 2..........................................................................................................................3
TASK 3..........................................................................................................................................15
P4 Evaluate the influences of ethical and sustainable globalisation on organisational functions
...................................................................................................................................................18
P5 Evaluate the different ways decision making can work effectively in a global context......19
P6. Determine the different routes to internationalization an organization may adopt, including
key barriers................................................................................................................................21
CONCLUSION..............................................................................................................................23
References......................................................................................................................................25
Books and journals:...................................................................................................................25
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TASK 1 & TASK 2
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Notes:
These factors are known as Technology, climate politic legal regulations and economic
crisis. Working into Global contact leads to many opportunities, International brand name
Business expansion and many other relations. This report is based on SASOLLimited; it is one of
the growing company works for energy and chemical solutions which has their headquarters in
South Africa(Abugre, and Anlesinya, A., 2019). The aim of the company is to expand their
business globally for that instance they require to understand various factors , challenges,
barriers and which good influence on organization profitability. This report is going to cover all
the key factors of environment and competition for undertaking effective business strategic
decision. The report has covered into two sections in which part 1 cover the concept of
globalization with the help of pestle analysis and driving key factors. Part 2 will emphasis on the
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influence of globalization on the functions of organization. Also it will show the significance of
ethical consideration and a range of routes for global expansion.
Speaker notes:
Basically globalisation is in for every business due to having number of opportunities
and foreign reputation which leads to create a strong brand name and more profitability into long
run. A business could look for presenting their services in two different countries so that they
could enable more profits and undertake those customers towards their organisation. There are
many firms who involved their business in to global context in order to create job opportunities,
take advantages of resources and boost capital market. Globalisations contribute in economic
stability and provide new ways to explore the business operations by attending new and potential
customers through three trade technology and Data Services. So that, SASOLlimited is also
looking forward to establish their globalising market into other countries there globalising
market into different countries which are left to their reach. For that instant's, there are many key
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driver that could contribute in the success of their globalisation these factors are mainly market
cost competition and various other which are described below:
Notes:
Market Factor: A business should take high market share by grooming into different
countries. Global market leads to results in global opportunities and expansion at vast level.
SASOL Limited could easily gain market share by operating their energy solutions into different
countries and fulfil the requirements of customer. One of the best drivers for globalisation is to
market the product and services as per customer needs in order to gain success and efficiency.
The more SASOL limited will analyse the market better, the more it get success in globalisation.
The more regularly research the market on the basis of customers income, choice and culture the
much better they regulate trade.
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Cost Factor: Different countries enable different cost structure as per the resources
availability (Banker, and Bhal, 2020). So that, SASOL limited needs to effectively analyse
overall cost of their production and sale procedure in to different countries so that their profit
would not get this balance. In globalisation, shipping charges would be a high cost and expense
which must be lower down by taking effective shipping policies. For example, the company
bearing low cost operation in Asia and high cost in US. So that, they need to mainly focus on the
supplies from Asia which maintain financial position of company in global locations.
Competition: In context of globalisation competition is the most focusing factor for all
the business. Therefore, SASOL Limited needs to research and analyse the entire market
environment so that they could not get effect with the competition. Also, they must come up with
imitate product and services that has not already seen in the market. Taking growth into a
competitive market is one of the steps towards organisation success. This could be in any form
whether products and services, pricing policies and employees efficiency so that all the factors
must be balanced as per market requirement. For example, analysing completion in way through
keeping eye on rivals actions and make strategies better than them. But is requires high research
on industry market.
Environmental Factor:There are many components of environment that create influence
on organisation to behave in well manner. So that it is work as a key driver if you want to get
success into globalisation they must fulfil all the environmental formalities like ascertaining legal
regulation, work as per society needs, reduce wastage and promote eco friendly environment.
Doing so, SASOL Limited will achieve target and objective into fruitful manner by being
concerned about the country and environment. This could be better understood with example
that, harming environment which is a part of society will not make the people satisfied and
happy. As SASOL company is a chemical producer that requires utmost safety in chemical
substances for both people and employees.
World Trade Organisation plays a vital role in international trade. There are various laws
that are formulated by WTO to monitor global trade. It is important to note that WTO is world’s
powerful institute that reducing trade related barriers between the countries and opening new
markets. The role of WTO in international business is discussed below:
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 WTO helps to implement, administer smooth operations of the trade agreements among
different countries.
 It forms all the rules and regulations related to settlement of disputes among the member
countries. As well as it provides forum for the purposes of trade discussions among its
members.
 It cooperates with World Bank and International Monitory Fund so as to make unity in
global economic policies.
 WTO play a critical role in global economics by resolving trade disputes through rules,
regulations, and consensus-based agreement processes that would avert trade tariffs
between powerful countries.
 Along with that WTO has potential to maintain peace and bilateral relations between
different members of countries through consultations, negotiations and mediations.
Significant impact of digital technology upon globalising business operations
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Notes:
In today's digital world, organisation need not to operate outlet in two different countries
as it becomes easiest way bi enable selling through digital sources and serve the global
environment simultaneously. So that this technological advancement leads to have many impact
on business and their profitability. Another hand, Technologies create opportunities to to
promote and market the product and services in order to reach Global customers. Also it benefits
to analyse different demands of customers by directly connecting with them through digital
Technologies(Bing, and Amran, 2017). Globalisation becomes easy with IT Solutions in which
organisation could check and assist reactions of their potential customer through effective
software and technologies. Social platforms like Facebook, Twitter, Instagram and websites are
significantly taking lead in promoting the business at global level. This helps in become
innovative and attract number of customers in a easiest way. So that Technologies could help for
SASOL Limited as they are dealing in energy and chemical solutions they could attract many
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investors from the globe to be a part of their organisation by enabling digital ITsoftware’s and
promote their services as much as they can.
It has evaluated that there are many key drivers that would help in achieving Global
Business with profitability and productivity hand-in-hand. For that instance, the SASOL Limited
must require to analyse and identify all the factors relating to market cost technology and
environment so that they could not left with any e benefit of globalisation into their business
operation. As all the above mentioned factors are the most significant to undertake to be a global
provider so that it would not affect any country and its people. The SASOL Limited needs to
come up with Highly Effective Strategies and planning for expansion in order to work in a global
manner.
Notes:
There are numbers ofchallenges a business face duringtheir operations. In which,
strategicchallenges are those which lowers down the significance of strategies of one
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organisation due to having large options or competition into global market. These issues and
hurdles are drive with long leading dynamic micro or macro environment that must be e\identify
within specific time. Internal challenges could be in terms of ineffective production procedure,
insufficient labour force and decision and lack of efficiency(Bogatyreva, and Shirokova, 20170).
Whereas, external business environment will lead to affect though macro factors like political,
social, environmental, technological and economical. For that instance, Pestle analysis’ would be
a better solution for SASOL limited to undertake all the positive and negative impact of these
factors which tare explained below:
PESTEL -
It would be done by analysing the factors of analysis which highly impact on business
environment and their working operations. Analysing all the factors, SASOL Limited could
easily amplifies their Strategies and plans in two more effective manners which reduce this in
uncertainty:
Political: Every country consist different political interference is in terms of taxation,
terrorism and political decisions which could create negative impact on organisation. So that,
form a limited must analyse all the political interference is and work in accordance with the
relevant influence on business.
Economical:. It includes the influence of business practices on demand and supply
inflation rate and money flow into the economy. For SASOLLimited, they are mainly affected by
employment grades which get enhance into UK by 4.4% for the age above 25 years(Bong, and
Premaratne, 2018). So that it affect the SASOL Limited by rising into the wage rate that could
minimise their profit level.
Social: This creates positive impact for the business as they are effectively fulfil all the
requirements of customer by providing some value into products and services. In context of
SASOL Limited, they need to provide their energy solutions which are in the favour of
customers and purchasing power. The more they make connections with customers are the most
they goes deeper down into the success. Therefore, this factor positively impact on SASOL
Limited as the customers are highly satisfied with their services in two different countries.
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