Report: Global Business Environment Analysis of SASOL Limited

This report provides a comprehensive analysis of the global business environment, focusing on SASOL Limited. It begins with an introduction to globalization and its impact on businesses, followed by an examination of SASOL's operations and expansion strategies. The report delves into key factors influencing globalization, such as technological advancements and increased competition. It then applies the PESTLE analysis to assess the political, economic, social, and technological factors affecting SASOL. Furthermore, the report utilizes the McKinsey 7S model to evaluate SASOL's structure, culture, and governance, and explores the influence of global operations using Hofstede's dimensions. Ethical and sustainable considerations in the global market are also evaluated, along with their impact on decision-making. The analysis extends to strategic expansion routes, analyzing their advantages and disadvantages, and concludes with a critical evaluation of the global business environment, including opportunities and challenges. The report also examines strategic challenges in the context of risk and diversification strategies, and the supply chain flow, offering a detailed understanding of SASOL's global presence and performance.

GLOBAL BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
TASK 2............................................................................................................................................3
1.Structure, culture and governance of organisation. Apply McKinsey's 7s model...............3
2.An evaluation of how the above has been influenced by global operations. Applying
Hofstede’s Dimensions of......................................................................................................5
3.An evaluation of ethical and sustainable factors that the organization has to consider in a
global market..........................................................................................................................6
4.Assess how these factors have affected decision making in a global context.....................7
5.Assess which strategic expansion routes the organization took and analyze both advantages
and disadvantages...................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
.........................................................................................................................................................9

INTRODUCTION
Globalisation is one of the most recent trends in business world. It can be describing as a
process of communication and integration of individuals, companies and governing bodies all
across the world. SASOL Limited is an energy and chemical organisation which is based in
Africa. Some of the products that respective company deals in are synthetic fuels, chemicals and
electricity. SASOL is now operating in Canada, Mozambique, Gabon and Australia and looking
forward to expanding in other parts of the world. This report will discuss about various factors
that have an impact on globalisation. Addition to this, this file will also study the influence of
digital technology on globalisation. There are various external factors that have an impact on an
organisation such as politics, law, price, etc. which will be discussed in PESTLE analysis.
Furthermore, structure, governance and culture of SASOL Ltd. will also be studied with the help
of McKinsey's 7s model.
TASK 1
Covered in PPT

Globalisation can be described as a mean through which world is connected together. There have
been a certain growth in globalisation from past few years with the help of technology,
transportation and communication as well. On the basis of these kind of concept, an organisation
can easily access their business approaches in different countries. Globalisation has provided a
platform to share ideas, trade and culture internationally. Addition to this, it has provided a wide
platform to for organisations to expand their business in international market. Hence, the key
concept of globalisation is to increase the economic growth of countries addition to the cultural
and social factors. Similarly, SASOL limited is globalising their operations through operating in
different countries and market place with the help of various technological tools such as internet,
transportation, etc.

With the recent changes in market and business trends, globalisation has been playing a
significant role in expansion and revenue earning of business of SASOL. Globalisation has
helped in exploring new market and increasing the number of customers for the company. With
these international business operations, the economy of Africa has also benefit from the
company. However, there are few factors which influence globalisation. These are discussed
below:
Advancement of Technology- It is one of the crucial element of globalisation. Technology has
taken globalisation to a whole new level. It has helped SASOL to successfully reach out new
customers in different parts of the world through effective technology. Addition to this, with the
help of tools such as internet, telephones and other modes, SASOL has been able to provide
knowledge about their product range to targeted customers.
High Competition- It is consisted as an important driver of globalisation. Due to various
competitors in the domestic market, companies like SASOL are tend to expand their business
internationally. Furthermore, the respective company earns good profit by serving products and
services.

Digital technology has played a major role in facilitating globalisation. It has helped SASOL in
many aspect such as transportation facilities, communication technology, information
technology, etc. Thus, to have a better understanding about the impact of these technologies, a
discussion is mentioned below:
Transportation Technology- There are various transportation means available in the
market which facilitates to trade products of SASOL such as fuel, chemicals and gases to other
countries. Some of the major transportation operations are done through airways, roadways,
railways and sea ways. Similarly, one of the most advanced transportation mean that has
facilitated the respective company to transfer these hazardous chemicals are container ships,
super tanks, etc. These tanks helps in transporting large quantity of products through safest
means which helps in lowering down the number or incidents and further loss to SASOL.
Communication Technology- Through this mean of technology, SASOL is able to
communicate with global customers. Some of the frequent used communication technology by
respective company are telephones, voice mails, text message, etc. These modes of technology
helps in direct communication with the respective organisation with the help of which, SASOL is
able to provide more accurate information about the products and services and enhance the
experience of customers.

Internet- Information technology and internet is the most important element of digital
technology. It is a platform which helps in connecting the world and exploring information about
products and services. Thus, SASOL practice this technology through its official website which
is consist of detailed information about products and services which are offered by the respective
organisation. Similarly, the latest changes in the products and other updates of SASOL are also
accessible through internet. Apart from this, internet is a powerful mode of promotion which
helps in attracting more customers and influence their buying behaviour and preferences.
PEST analysis is a tool which helps in measuring the impact of macro environmental factors on
SASOL Limited. It is further discussed below:
Political Factor- SASOL is a chemical and gas company. Hence, it is important for the
respective company to legal frameworks in order to have a smooth running business. Some of the
political factors are taxation, trade regulation, etc. As SASOL operates in different country, it is
important to carefully examine the regulations of each country and follow them wisely.

Economical Factor- SASOL plays a major role in growth of economy of Africa. As it is an
international company with the total number of approx 30,000 employees (#74 Sasol, 2018).
This shows a positive contribution towards the employment growth of country.
Social Factor- This factor studies the culture and lifestyle differences of customers living
in different part of the world. As the products offered by SASOL are technically advanced and
new, respective organisation have a wider scope to provide such products to different countries
and help them improve their lifestyle.

There are various factors of globalisation which have a direct impact on operations and decision
making of SASOL. These are price, currency exchange rate, legal regulations and many more.
Thus, keeping these factors in mind, a discussion is given below:

Changing trends of Technology- It is one of the factor which keeps on upgrading. As
globalisation is highly dependant on technology for communication and transportation. It
sometimes become difficult for SASOL to cop up with the latest technological trends.
Weak Growth of Economy- due to low economic growth in few countries, the spending power
of customers is also weak. This leads to decrease the profitability of SASOL from these markets.
Thus, it is important for SASOL to assess the economic stability of country before investing in
such countries.