Global Business Environment: SASOL's Challenges & Strategies

This report provides a comprehensive analysis of the global business environment, focusing on SASOL, a South African integrated oil and gas company. It employs a PESTLE analysis to evaluate political, economic, social, technological, environmental, and legal factors influencing SASOL's operations. The report highlights key drivers of globalisation, such as the digital revolution and financial liberalisation, and examines the significant impact of digital technology on global business operations. Furthermore, it addresses the challenges and complexities that globalisation presents to multinational organisations like SASOL, including capital investment requirements, global recruiting, cultural differences, worker migration, and incurring tariffs and export fees. The report concludes with recommendations for SASOL to enhance innovation, research and development, productivity, and strategies for managing diverse cultures within the organisation. The report references several academic publications to support its analysis and recommendations. Desklib provides this assignment as a resource for students.

Global Business
Environment

Table of content
 INTRODUCTION
 PESTLE analysis
 key driving factors of globalisation.
 Significant impact of digital technology upon globalisation
 Challenges and complexities globalisation brings to an organisation such as SASOL.
 RECOMMENDATIONS
 CONCLUSION

INTRODUCTION
 Globalization is generally the procedure by which the entire
nation is becoming progressively inter-associated as an outcome
of massively enhanced trade and the exchange of cultures as well.
 In this, the globalization has enhanced the production of goods
and services as well.

PESTLE analysis
 A PESTLE analysis of SASOL is generally a strategic tool that is
used to analyse the macro environment of an organization.
 In this, PESTLE stands for Political, Economic, Social,
Technological, Environment as well as the legal elements which
can influence the macro environment of the SASOL
organization.

Political factors
 In this, the political elements can play an essential role in identifying
the components which can make influence over the organization such
as SASOL on a long-term profitability in various market or country as
well.
 SASOL Ltd is an operating in a major integrated oil and gas in more
than dozen countries as well as expose itself to various types of the
political environment and the system risks as well.

 Political stability as well as necessity of major fast growing and chemicals in the economy of the country.
 Corruption level, specifically the regulation levels in the basic materials sector.
 The legal framework for contract implement.
 The tariffs and regulation of trades are linked to basic materials.
 An anti-trust legislations linked with major fast growing and chemicals.
 Mandatory benefits of the workers.
 The safety regulations within industry in the basic material settings.
 The labelling of products and other needs in major fast growing and chemicals.

Economic factors
In this, the macro environment components like saving rate,
inflation rate, foreign exchange rates, as well as the economic cycle
can identify the collective demand and collective investment in an
economy.
In this, while a micro environment elements like the competition
norms can influence the competitive benefits of the organization.

Social factors
 In this, the social cultures as well as the pathway of doing the
things can significantly make influence over organization's
culture within an environment.

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 Levels of skills and demography of the public.
 Hierarchy, class structure as well as the power structure within society.
 The standard and levels of education within the SASOL Ltd industry.
 Culture such as social conventions and gender roles and many more

Technological factors:
 In this, the technology is generally a speedy interrupting multiple
organizations within the board.
 Though, the transportation industry can be a positive case in order
to define the technological factors.
 It is known that from earlier five years, the industry has been
transforming really fast, not even providing the opportunities to
the grounded workers to cope with the alterations.

 Having technological influence over offerings of products.
 Influence over the value chain structure in the basic materials settings.
 Current technological improvements by competitors of SASOL Ltd.
 Influence over cost structure in major fast growing and chemicals.
 Rate of technological diffusions.

Environmental factors:
 In this, the different markets have various norms or environmental
standards that can influence the profitability of an industry within
those markets.
 Across the countries, the states frequently includes various
environmental legislations as well as the liability legislations.