SASOL Ltd and the Global Business Environment: A Detailed Report

This report provides an analysis of the global business environment and its influence on SASOL Ltd., a prominent company in the oil and gas sector. It begins by defining globalization and its driving factors, including technological, political, competitive, and market-related aspects. The report then applies a PEST analysis (Political, Economic, Social, and Technological) to assess the external factors impacting SASOL Ltd.'s operations. It identifies strategic challenges such as strict trade regulations, and the impact of BREXIT and offers recommendations to overcome these hurdles. The report concludes by emphasizing the benefits of globalization and the importance of proactive environmental scanning for businesses. References to academic sources support the analysis.

Global Business
Environment

Table of contents
Introduction
Concept of Globalization
Driving Factors Of Globalization
PEST Analysis
Strategic Challenges Of Globalization
Recommendations to deal with Challenges
Conclusion
References

Introduction
This PPT is going to explore the influence of global
business environment on SASOL Ltd. which is a well
renowned organisation operating within the confines of oil
and gas sector.

Concept of globalization
This can be referred to as the interface of people,
companies, countries, governments etc. across the global
boundaries. This is a process that drives the growth and
development of an economy. Also, it is acknowledged
that globalization provides aid in inflating trade and
technological exchange between countries.

Explanation on the driving factors
of globalization
Driving factors support companies in executing their
operational activities at international market in an effective
manner.
Technological Drivers: Technological advancements support
companies in free flow of goods and services at global scale.
With reference to SASOL Limited, this company can easily
use Digital Technology for reaching international market
scale with its existing products and services without any sort
of trouble.

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Political Drivers: Decline in tariffs mainly take place because
of deregulated markets and liberal trade laws. This influences
companies to go for foreign direct investment. All of this
have supported SASOL Limited in executing its operational
activities at international market in effective manner.
Competitive drivers: Rivalry at international marketplace is
increasing day by day. This ultimately creates restriction for
SASOL Limited to expand their business at global level
because they will face higher competition over that market. It
has influenced globalisation of products and services.

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Market Drivers: Raising saturation at marketplace has
resulted in the limitation of growth for businesses. Here,
it can be said that globalisation have provided
opportunity to SASOL Limited to develop their
understanding on market situation and expand their
business at international marketplace.

PEST Analysis of SASOL
Limited
Political: SASOL Limited is carrying out its business operations in
oil and gas industry within several countries across the globe. The
political instability of some countries leads to generation of
adversities for the company.
Economical: The economic conditions of a nation are a route-map
to growth and success of an organization. Whereby the developed
countries provide excellent infrastructural, communication and
transportation facilities, the developing nations still fail to provide a
competitive atmosphere and services to SASOL Limited to carry
out its operations as per organizational requirements.

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Social: The changing lifestyles, trends and preferences of
customers tend to dominate the market in the sense that an
instance whereby SASOL Limited fails to operate in
alignment with these aspects, the sustainability of company
would be posed at risk.
Technological: Constant developments take place within
the confines of every corporate sector. In this regard, oil and
gas sector is also affected by them in a significant manner.

Challenges of globalization
 Strict trade regulations in many nations are strict and
do not let SASOL freely conduct trade across the
global boundaries.
• BREXIT is a factor that is posing threat to operations
of this organization within the confines of UK.
• Low unemployment rates of many countries like UK
standing at 3.9% also imply that SASOL Limited has
to procure skilled labour in return of high wage rates.

Recommendations to overcome
challenges
To deal with challenges associated with global business
environment, following recommendations are given:-
 It is suggested to SASOL Limited to adopt an effective
management style which can align the performance of
employees with the changes taking place in external business
scenario.
 Further, the entity should constantly scan and examine the
environment to anticipate the emerging trends in advance and
provide information to staff about ways in which they can be
incorporated into routine working of SASOL Limited.

Conclusion
It is concluded that globalisation is beneficial for all
kinds of businesses as it provides them opportunities at
international market. The main challenges which are
faced by company while expanding business at
international market include BREXIT, changing
consumer preferences, strict trade regulations etc.
Adoption of PEST analysis allows companies to identify
influence of external factors so that appropriate solution
can also be addressed for reducing negative influence.