Analysis of Global Business Environment for SASOL Ltd. - Report

This report provides a comprehensive analysis of the global business environment, focusing on its impact on SASOL Ltd. It begins by defining globalization and its driving factors, including technological advancements, political drivers, and market dynamics. The report then delves into the influence of digital technology on globalization, highlighting its role in reducing transportation and communication costs, and facilitating global sourcing and market expansion. A PEST analysis is conducted to assess the political, economic, social, and technological factors affecting SASOL Ltd.'s operations. The report also addresses the challenges of globalization, such as ethical business practices and organizational structure. Finally, it offers recommendations for SASOL Ltd. regarding market entry strategies, emphasizing the importance of understanding local cultures and legal frameworks. The report concludes with a list of relevant references.

Global business environment

Cover Content
 Introduction
 Concept Of globalisation
 Driving Factors Of Globalization
 Impact Of Digital Technology Upon Globalization
 Pest Analysis
 Challenges Of Globalization
 Recommendations
 References

Introduction
 Globalisation describes a process by which various national and regional
economies gets interconnected with global network of trade,
communication and transportation.
 It is way by which political, social and cultural relations across the
countries gets interconnected.
 It also benefits the world economies as Foreign direct investment tends to
increase and boost technological innovation and industrial restructuring.

Concept Of Globalisation
 Globalisation is a process of interaction and
integration among individuals, industries and
government worldwide.
 It is an economic process associated with
interaction and integration of social and cultural
aspects. There are various factors which have
made organization such as SASOL Ltd.
 To expand globally because of the technological
change and growth strategies of transnational and
multinational companies.

Driving Factors Of Globalization
 There are many factors which have contributed SASOL ltd. to
expand globally which are as follows-
 Technological change
 Political drivers
 Market drivers

Impact Of Digital Technology Upon
Globalization
 With the advancement in the technology it has reduce the cost for
transportation and communication across countries and helping SASOL
ltd for the global sourcing of raw materials and other inputs.
 It has made reach to global villages, with the help of wide web it reduces
the barriers of time and place and are able to make investments and
transactions in any part of the globe.
 With the advancement ion technology it has made respective organization
to increase their economies of scale and market size needed for break
even.

Pest Analysis
 Political factors- These factors play an important role in ascertaining the
factors which effects the profitability of the country in the specific market.
 Economic factors- Various factors such as inflation rate, interest rate,
savings rate and foreign exchange rate which determines the level of
demand and investment in the country.
 Social factors- Society culture in the particular country impacts the
working of organization in respective industry.
 Technological factors- Technological competency within the respective
industry is highly required a provides chance to produce goods
accordingly.

Challenges Of Globalization
 Their are various challenges of globalization which many organizations
suffer-
 Ethical business practices
 Organization structure-
 Legal and regulatory structure

Recommendations
 Before expanding into a particular country SASOL should properly
understand the beliefs and attitude of the people.
 Respective industry should also understand the different laws of the
country before its start so as to avoid certain problems and should follow a
proper legal structure

References
 Ferraro, G.P. and Briody, E.K., 2013.The cultural dimension of global
business. Upper Saddle River: Pearson.
 Savrul, M., Incekara, A. and Sener, S., 2014. The potential of e-commerce
for SMEs in a globalizing business environment. Procedia-Social and
Behavioral Sciences. 150. pp.35-45.