Global Business Environment: SASOL Limited Report (Analysis)

This report provides a comprehensive analysis of the global business environment, focusing on SASOL Limited, a chemical company based in South Africa. The report begins with an introduction to the concept of globalization, explaining its impact on businesses and the factors driving it, such as technology and liberalization. It then presents a PEST analysis of SASOL Limited, examining the political, economic, social, and technological factors influencing its operations. The report also addresses the challenges of globalization, including ethical business practices, organizational structure, and public relations, along with strategic challenges like the emergence of new players and increased complexity. Recommendations are provided to overcome these challenges, and the report concludes by emphasizing the importance of globalization for businesses and the key factors that influence it. The report references various academic sources to support its findings.

Global Business
Environment

Table of content
• Introduction
• Concept of Globalization
• Driving Factors Of Globalization
• Impact Of Technology On Globalization
• PEST Analysis
• Challenges Of Globalization
• Conclusion
• References

Introduction
Global business environment is related to activities of business in many
countries, which influence decision making and utilization of rare resources.
This report is based on SASOL Limited, it is a chemical company based in
South Africa. Company develops and sell technologies, synthetic fuels and
manufactures electricity, chemicals and liquid fuels.

Concept of globalization
Globalisation is a process which enhances social, political and economic
interaction and relation across the globe. It includes exchange of
information, goods, services, capital, people, ideas and technologies etc.
This helps organisations to provides their services and specialities to other
countries.

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Globalisation means country has liberal foreign trade policies and welcomes the
investment from foreign companies. It helps in attracting investment for
unproductive sectors and assists in exporting the products and services of
productive sectors to increase profitability and foreign currency funds.
This kind of trade provides comparative advantages to company as it give
access to rare resources which other organisations do not have access

Impacts of Globalisation

Driving factors of globalization
Now a days, globalization is increasing day by day as it attracts foreign funds,
investment, growth rates etc. There are some factors which act as driving
factors for SASOL Limited for influencing globalisation:
Technology: Globalisation gives access to new technology that help the
organisation to conduct their activities in a cost effective manner.
Liberalisation: Globalisation provides ease in trade with other countries.
Like WTO has made some regulations and policies which helps SASOL
Limited to have free trade practices with businesses in other countries.

PEST Analysis of SASOL Limited
PEST analysis is strategic tool that
help organizations to identify
external environment factors
which can affect the operations
and decisions of company. It
involves four aspects under it that
are political, economical, social
and technological factors.
Information related with these
aspect is mentioned below:

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Political factors: These factors determines the impact on profitability of
SASOL Limited. Political stability is a major aspect in this industry, it
impacts from corruption level, intellectual property rights, legal
frameworks, taxation policy, industrial regulations for safety and
requirements for product labeling is important in oil and gas industry. f tax
rate in country is favorable than company will have more profits.
Economical factors: SASOL Limited can have impact from growth rate and
economic indicators its industry such as customer spending, growth rate of
industry etc. to forecast growth aspects. It depends on skills of employees,
level of education in nation and infrastructure is most important for the
company.

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Social factors: It impacts culture of a business as it includes shared beliefs,
values and attitudes of individuals in market. This will help SASOL
Limited to understand their customers and to design their market according
to them.
Technological factors: Technology is changing at rapid speed in every
industry. In case of SASOL Limited if changes are slow the company
cope up with these changes. These factors includes development in
technology by rival firms, impact on structure of cost etc. impact the
company.

Challenges of globalization and strategic
challenges
Companies doing business in many countries across globe faces many
challenges while operating their activities. The following some challenges
related to globalization which can affect SASOL Limited:
Ethical business practices: Major challenge SASOL Limited faces is
related to regulatory compliance, labor, goods safety and corruption etc. as
these plays an important role for success or failure of the company. It is
very necessary to maintain ethical standards while operating in other
nations.

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Organizational structure: Organization face challenges in incorporating in
new regions effectively and efficiently. SASOL Limited needs huge capital
investment in order to implement and develop organizational structure for
performing their activities in other countries.
Public relations: Creating and building good and positive image of brand
in a new geographic area is a very difficult task for SASOL Limited. As it
requires a lot of money to create and maintain relationship in other parts of
world.

Strategic Challenges
Emergence of new players: In global markets, company find it difficult to
manage their profitability and productivity as there are many players in the
same industry who are offering the same products and service.
Increased complexity: Company find it complex in managing various
factors as globalization has changed factors related to success of company
like managing different kind of risks.

Recommendations to overcome challenges
To overcome all above mention challenges SASOL Limited should adopt
ethical practices for managing good business environment practices in
company. They can establish a organizational structure for conducting and
maintaining activities in an efficient manner at global level. Company can
use technology to reduce complexities in business.

Conclusion
It is concluded from above report that globalization helps organization to
conduct their business activities in other nations by providing their goods
and service across the globe. Technology, liberalization, trade flow and
factor mobility are some key factors that influence globalization. There are
some challenges which influence which impacts the global business.

References
• Apăvăloaie, E. I., 2014. The impact of the internet on the business
environment. Procedia Economics and finance. 15. pp.951-958.
• Axelrod, R. S. and VanDeveer, S. D. eds., 2014. The global environment:
institutions, law, and policy. CQ Press.
• Belás, J. and et. al., 2014. Significant attributes of the business
environment in small and meduim-sized enterprises. Economics &
Sociology. 7(3). p.22.

Thank You