Global Business Environment Analysis and Challenges for SASOL Limited

This report provides a comprehensive analysis of the global business environment, focusing on globalization and its impact on businesses, using SASOL Limited as a case study. It begins with an introduction to globalization, exploring its driving factors, including political, market, competitive, and technological influences. The report then delves into the significant impact of digital technology on globalization, highlighting its role in facilitating information exchange and transforming trade and commerce. A PEST analysis of SASOL Limited is presented, covering political, economic, social, and technological factors affecting the company's operations. The report also addresses the challenges of globalization, such as potential restrictions, unfair exchanges, and the risk of collusion. Finally, it offers recommendations to overcome these challenges, such as optimizing resource utilization and addressing cultural differences. The report concludes that globalization significantly impacts business operations and that top management must consider the global environment in decision-making processes. The report includes references to relevant academic sources.

Global Business Environment

Introduction
Concept of Globalisation
Driving Factors Of Globalisation
Impact Of Technology On Globalisation
PEST Analysis
Challenges Of Globalisation
Conclusion
References
Cover content

Introduction
This presentation is based on global business environment which covers some
major factors of globalization. For this purpose, SASOL Limited is taken, which
deals in energy and chemical industry at UK. It elaborates PESTLE analysis,
challenges and wind up with recommendations.

Explanation on the driving factors of
globalisation
Driving factors of globalisation are those elements that lead to the integration of
economies and facilitate easier flow of goods and services across international
borders.
 Political Drivers: Liberalisation of trade laws and deregulated markets have
resulted in reducing tariffs and encouraging foreign direct investment across
different parts of world. This has helped SASOL Limited to carry out its operations
freely in any part of the global world.

Cont.….
 Market Drivers: With increasing saturation of domestic markets, there have been
limitations for growth. Thus, Globalisation has given a chance to SASOL Ltd. To
overcome this situation by reaching international markets.
 Competitive drivers: Due to increasing competition from rival companies, business
organisations like SASOL Limited are bound to reach international market. This has
helped in encouraging globalisation.

Cont.….
 Technological Drivers: Technological advancements aids globalisation by
making it easier for business organisation to facilitate the movement of goods
and services across borders. Thus, by using Digital Technology, SASOL
Limited easily makes its products reach international markets without any
hindrance.

The significant impact of digital technology upon globalization
Digital Technology is a process of computerizing all the processes in an
organization. It has a significant impact on the process of globalization. Regular
improvements in computer hardware, software, transportation and
telecommunication process have largely helped people in increasing their ability
to access global information. Also, the advancements in Internet-based tools
over years such as social networking sites and other web applications are
bringing changes in the way people share personal, economical, political and
commercial information.

Cont.….
These developments drives the use of resources in an innovative way so as to
promote the products and services across geographical borders. By creation of
effective medium of exchanging information, it has bridged the gap between the
various national economies. Over years, Internet and Web have transformed
trade and commerce by determining new ways for retailers to reach international
markets, for business organizations to facilitate the marketing of its products and
for the job recruiters to find the job seekers. Thus, it can be said that
digitalisation has been a catalyst for global integration.

PEST Analysis of SASOL Limited
PEST analysis of SASOL Limited comprises of Political, economical, social and
technological factors. These are explained as follows:
Political - SASOL Limited has analyzed the various factors such as
political stability in the Oil & Gas sector, military invasion, legal framework for
enforcement and trade regulation & tariff related issues and problems. SASOL
limited has take care of all these factor while entering into the Oil & Gas
sector. .

Cont.….
Economical - It consists of two factors: micro and macro. In SASOL
Limited, macro factors such as inflation rate, savings rate and interest rates are
taken into consideration. In micro factors such as pricing policy, resource
management and competitive advantage are taken into consideration for the
functioning of the companies.
Social - In context with the SASOL Limited, there are various social
factors such as demographic and skills of the people. Shared belief, behaviour
and attitude of a people plays a great role in perceiving how a marketer
understand their customers to define their market and enable method to attract
them.

Cont.….
Technological - Now a days, technology is considered as most disrupting factor.
It has created an impact on the cost structure of the company, by increasing the cost of
upgrading and implementation. But positively for SASOL limited, it has given
advantage to the value chain management of the company materials and transportation
process.

Challenges of globalization
Globalization is a particular term used to describe how various countries, people
and business opportunities are becoming interconnected with each other. It
offers both merits and challenges both. It aims at providing huge opportunity for
the economic development and growth for improving status and culture of the
people. Same, it can also faces several challenges in respects with the welfare of
the society, environment and economy.

Cont.….
It would result in national level restriction on the production of goods and services.
Along with discussing the benefits of globalization, there also an critics of this same,
globalization can also create unfair exchanges between small and larger economies. Due
to the globalization, there would be a chances of collusion of two different economies or
even nations too. In context with SASOL Limited, this can be happened as a result of
different trade policies, taxation structure and infrastructure of the nations. This can also
damage the internal environment, safety laws and ethical labor practices in different
cities.

Recommendations to overcome challenges
Optimum utilization of resources - It is important for the company to manage
and utilize their existing and available resources in order to achieve less bearing
expenditure and sufficient production to gain stability and profitability
Cultural difference - Overcoming issues regarding cultural and social
differences, it is crucial to educate people and resident to be aware about their cultural,
social and legal aspects. It will help the economy to understand the requirement and
scope of up-gradation in the operation and financial aspects of any economy to achieve
the stability and growth in any nation. .

Conclusion
From the above report, it is concluded that globalisation largely affects the operations of the
business entities in global environment. It can be conclude that there are certain factors
within and outside the organisational environment that act as drivers for the process of
globalisation. It can also be analysed that there is an urgent need for the top management of
business. Along with that, it can be said that the decision making process in an organisation
is driven by global environment in which it operates.

References
Axelrod, R. S. and VanDeveer, S. D. eds., 2014. The global environment: institutions, law, and
policy. CQ Press.
Bharadwaj, A. and et. al., 2013. Digital business strategy: toward a next generation of insights.
Boshyk, Y. ed., 2016. Business driven action learning: Global best practices. Springer.
Cavusgil, S. T. and et. al., 2014. International business. Pearson Australia.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.

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