Sasol Limited: Globalisation, Challenges and Recommendations

This report provides an analysis of globalisation and its impact on Sasol Limited, a company operating in various countries. The report examines the driving factors of globalisation, including political, technological, and competitive drivers, and explores how Sasol Limited leverages these factors to expand its services. It includes a PEST (Political, Economic, Social, and Technological) analysis to identify strategic challenges. The report highlights the importance of considering economic conditions, consumer trends, and technological advancements. It recommends that Sasol Limited carefully assess challenges when expanding into international markets. In conclusion, the report emphasizes the significance of globalisation for business growth, while also acknowledging the need to address technological changes and investment requirements. References from academic sources are included to support the analysis.

Business Environment

Globalisation
• The process of spreading of information, technology, products as well as jobs
around the national culture and borders is referred to as globalisation.
• In economic context, it implies interdependence of nations which is being fostered
by free trade.
• Sasol Limited is rendering their services in different countries like Australia,
Gabon, Canada and Mozambique.

Driving factors for globalisation
• The one which is liable for supporting firms within execution of operational activities
at international market within an effectual manner is defined as driving factors.
• This enable within supporting free flow of services and commodities that are beyond
international boundaries.
• Along with this, it is also liable for contributing within the efficacious flow of capital
& foreign trades in national economies.

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• Political drivers: Due to deregulated as well as liberal trade laws, there is
a decrease within the tariffs.
• Technological drivers: They supports firms within free flow of services
and goods at global scale.

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• Competitive drivers: Competition is increasing with respect to day to day
evolution in needs of customers as well as market needs.
• Market Drivers: Increasing saturation in market has led to restricted growth for
firms. But Sasol Limited has made use of globalisation to develop their services
as well acknowledge different situations prevailing within market.

Pest Analysis and strategic Challenges
• Political factors: Sasol Limited is carrying out their operations within oil & gas
industry in different countries around the globe.
• Economical factors: The economic situations of country acts as an route-map for
growth as well as success of firm.

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• Social factors: The altering preferences, trends and lifestyle of consumers incline
to reign the market in context of if firm fails to deliver their services as per these
aspects then their sustainability will be at risk
• Technological factor: The continuous developments occur which are confined to
each corporate sector.

Recommendations
• It is recommended to Sasol Limited that while expanding their business within
the international market, they must take into consideration all the challenges
which might occur. This will assist them to analyse that whether they can gain
success in future or will it become difficult to sustain within peculiar country.

Conclusion
• From above it can be concluded that, globalisation is crucial aspect
which is important for all the industries as this will render them with an
opportunity for growing within the global market.
• There are different challenges like technological change must be considered
along with investment needed with respect to that.

References
• Alkhafaji, A. and Nelson, R. A., 2013. Strategic management: formulation,
implementation, and control in a dynamic environment. Routledge.
• Amran, A., Lee, S. P. and Devi, S. S., 2014. The influence of governance
structure and strategic corporate social responsibility toward sustainability
reporting quality. Business Strategy and the Environment. 23(4). pp.217-235.