Global Business Environment Analysis: SASOL and Strategic Decisions

This report provides a comprehensive analysis of the global business environment, focusing on strategic decision-making and the impact of globalisation. The report begins with an introduction to strategic decision-making and its importance for companies, using SASOL as a case study. Part 1 presents a PowerPoint presentation with speaker notes, covering globalisation's driving factors, including social and cultural aspects, and the influence of digital technology. Part 2 delves into the complexities of strategic challenges faced by organizations in a global environment, such as political, economic, social, technological, environmental, and legal factors (PESTEL). The report evaluates the influences of globalisation on organizational governance, leadership, structure, culture, and functions. It also examines decision-making in a global context, routes to internationalisation, and key barriers to international business, offering recommendations for overcoming these challenges. The report concludes with strategies for operating in a global business environment and includes references to support the analysis.

Global Business
Environment
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Table of Contents
INTRODUCTION...........................................................................................................................3
Part 1................................................................................................................................................3
Covered as PowerPoint presentation with Speaker Notes......................................................3
Part 2..............................................................................................................................................19
LO3................................................................................................................................................19
P3) Influences of globalisation on organisational governance and leadership, structure, culture
and functions........................................................................................................................19
P4) Evaluation the influences of ethical and sustainable globalisation on organisational
functions...............................................................................................................................20
M3) Influences of globalisation on organisational governance and leadership, structure,
culture and functions............................................................................................................22
P5) Evaluate the different ways decision making can work effectively in a global context24
P6) Determine and articulate the various routes to internationalisation an organisation may
adopt, including key barriers................................................................................................26
M4) Critically evaluate the key barriers in doing business internationally and make
recommendations on how they can be overcome.................................................................27
D2) Strategies that can be adopted for operating in a global business environment along with
valid and justified recommendations....................................................................................28
CONCLUSION..............................................................................................................................28
REFERENCES..............................................................................................................................29
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INTRODUCTION
Strategic decision making has been done for the purpose of considering the long term goals,
aim and objectives of the company. And its impact has been shown according to the working
pattern of the organisation. Strategic decision making is all about the type of decision taken by
the company. In this report, the analysis has been done on the key factors which drives the
globalisation. The analysis has also been done on the complexity of strategic challenges which is
faced by the organisations when operating in the global environment with the supported
examples. The chosen organisation is SASOL. It is the company which has its operation in 30
countries. It is a global integrated chemical and energy company. The company has used
expertise and selected technologies to safely and securely sustain the chemical and energy
products at the international level.
Part 1
Covered as PowerPoint presentation with Speaker Notes
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Speaker Notes
It is the type of interaction which is associated with social and cultural aspects (Abdolvand,
and et.al., 2015). It includes data, resources of capital, technology, goods and services.
Globalisation took place due to several reasons. SASOL has also grown through this phase as it
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wants to achieve goals and objectives in the effective and efficient manner. There are some
factors which leads towards the increase in globalisation. It includes the increase use of social
media, transportation, financial products, payment systems and other leads which contribute in
the rise of globalisation in the sector of business and organisation. Globalisation means that the
speedup movement of goods and services and exchanges which has been done on the basis of
capital, technologies and cultural practices. Through globalisation new opportunities and
challenges have come due to which there are lots of problems as well as in terms of the growth
for the business environment. Globalisation provides a platform to showcase the invention,
innovation at the international level so that other countries also get the opportunity to try other
company’s products and services in a advantage form. There is also global business environment
which affects the globalisation on the international level.
Speaker Notes
There are significant impact on the digital technology due to globalisation (Ngeche, J.,
2017). Digital technology means that using the resources for communication, information,
analysing, creating and effectively finding out in the digital context. Under the digital
technology, the use of programming tools, web tools and software applications has been used in
a prevalent manner. Because of advancement and growth and main forces for driving it the
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digital technology has impacted globalisation. With the support of increasing economies of scale
and size of market, this gives the reason for compelling enterprise to become global. Digital
technology has played a very important role in reducing the communication and transportation
cost through out the nation which facilitates for the global source of inputs and raw materials.
There is another important thing which is known as patent technology through which no one can
copy the product, service and idea of another company and exploit the foreign market without
competition. Through the emergence of digital technology, it leads to the emergence of global
village and reduces barriers of time and place for dealing with organisation.
Speaker Notes
In this report, the analysis has been done on the key factors which drives the
globalisation. The analysis has also been done on the complexity of strategic challenges which is
faced by the organisations when operating in the global environment with the supported
examples. The chosen organisation is SASOL. It is the company which has its operation in 30
countries. It is a global integrated chemical and energy company. The company has used
expertise and selected technologies to safely and securely sustain the chemical and energy
products at the international level.
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Speaker Notes
When operating in a global environment, the difficulties encountered by managers
complexity emanates from unpredictability and uncertainty. The main parameter which creates
hindrance in the operation of global environment level are the PESTEL factors. This has been
discussed in the following manner:
Political Complexity: When managers plan to meet their long term goals then they faced the
political challenges. For example, in the country south Africa the company people is not so sure
about the future political environment whether it will remain stable in the long-term or not.
Whether the tax policies will change or not and when it will change. Due to political uncertainty,
there is inability to predict changes in such issues.
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Speaker Notes
For example, with the different issue there has been tensed environment that whether
they successfully keep operating after the issue. This is the reason somewhere they shifted their
headquarters to other south African countries while some have suspended their operations from
south Africa. These kind of strategic decisions are due to uncertainty surrounding the future of
the south Africa There are some unanswered questions due to which it becomes difficult to
predict whether the country’s employment and trade policies will be favourable and become
stable for business in future. When operating from the global environment, this shows that
economic issues are among strategic issues which has been faced by the firms. Since exchange
rates can fluctuate in a rapid manner and cause volatility in the financial markets is a key source
of strategic complexity for firms operating on a global level.
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Speaker Notes
 Social Complexity: Due to changes in lifestyle, changes in the demographic level,
consumer preferences, religious beliefs and CSR awareness are the parameters which
create strategic complexity arises from socio cultural issues. Changes in these issues are
not so rapid but with the changing period of time people preferences have been changed.
 Technological Changes: Different countries adopt technological innovations at different
period of time. Due to this reason it makes the rate of change and have an impact on the
organisation which arises the strategic complexity. There are some countries which
restrict the access of internet due to which government gets the chance to have the control
on over the serving of people through internet connectivity.(Hsu, and et.al., 2016). This
enables that it will restrict the technological advancement and innovation. It also becomes
more difficult when the country’s political environment is unpredictable which reinforces
the uncertainty surrounding strategic decision making and choices. SASOL also acted as
the e-commerce platform and they shifted towards the digital technology in this pandemic
situation on larger scale. Due to technological changes it enhance the intensity of
competition where e-commerce act as the fierce rival as compared to other firms
anywhere in the world.
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Speaker Notes
 Environmental Changes: About the need for green operations and sustainable
production strategic complexity arises from the environmental issues due to increased
awareness. There are some laws pertaining to the environment protection but it cannot be
equally implemented in all the countries. Energy consumption, waste disposal laws and
environment protection can be recognised at the international level. Depending on the
country’s environmental consciousness the firms behaves in a different manner. The
source for strategic complexity is the diversity of ecological and environmental
consciousness. The information has been passed out regarding strategic complexity in
this digital world through social media platforms like Facebook and Twitter.
 Legal Complexity: In different countries there are different types of legal systems. There
are various types of laws which includes Civil law, Religious law and Common law. Due
to diversified systems it will become the source of strategic complexity because it
becomes difficult to find out which type of law is operating in which country. Due to
these reasons it becomes difficult to take decisions, make appropriate strategic plans and
choices. So these are the strategic challenges which is faced by the organisations when
operated at the global level.
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Speaker Notes
The reason of this growth is due because of the reason that there is increase in
communication and transport technology, trade and ideas and growth of culture. It is the type of
interaction which is associated with social and cultural aspects. (Straker, K. and Wrigley, C.,
2016). It includes data, resources of capital, technology, goods and services. Globalisation took
place due to several reasons. SASOL has also grown through this phase as it wants to achieve
goals and objectives in the effective and efficient manner. There are some factors which leads
towards the increase in globalisation. It includes the increase use of social media, transportation,
financial products, payment systems and other leads which contribute in the rise of globalisation
in the sector of business and organisation.
 Driving factors of globalisation
With reference to the company, the corporate governance is that kind of system by which
the companies are directed and controlled into the effective manner. All the decisions have
been made by the board of directors with the consideration of management. With respect to
the SASOL company the organisational leadership is totally dependent on the Fleetwood
Grobler who was the chairperson of the company. Under his strong leadership the company
has been operating into the successful manner. In terms of the organisational structure, the
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SASOL company structure has been designed in the two upstream business units with three
operational hubs and four customer facing strategic business units. In terms of globalisation,
the company has used the expertise and proven technology in terms of giving the global
energy solutions and chemical building blocks for the wide range of products. One of the
example is in the great progress in the broad based black economic empowerment deals
which has the positive influence at the global level.
Speaker Notes
Because of advancement and growth and main forces for driving it the digital technology has
impacted globalisation. With the support of increasing economies of scale and size of market,
this gives the reason for compelling enterprise to become global. Digital technology has played a
very important role in reducing the communication and transportation cost throughout the nation
which facilitates for the global source of inputs and raw materials.
Complexity of strategic challenges faced by organizations when operating in a global
environment supported by specific examples.
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