Globalization & Business: An Analysis of SASOL's Global Environment

This report examines the global business environment with a focus on globalization, utilizing a PESTLE analysis to understand the various factors influencing business operations. It discusses the concept of globalization, key driving forces, and the impact of digital technology. The report also addresses the challenges and complexities that globalization brings to organizations, such as international recruiting and resource unavailability, providing recommendations for mitigating these issues. A case study of SASOL is used to illustrate these concepts, highlighting the importance of market analysis for successful global expansion. The report concludes by emphasizing the significant role of globalization in business success and the need for strategic planning to navigate the complexities of the global market.

GLOBAL BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
• INTRODUCTION
• MAIN BODY
• CONCEPT OF GLOBALIZATION
• PESTLE analysis
• KEY DRIVING FACTORS OF GLOBALIZATION
• IMPACT OF DIGITAL TECHNOLOGY UPON GLOBALIZATION.
• CHALLENGES AND COMPLEXITIES OF GLOBALIZATION
• RECOMMENDATIONS
• CONCLUSION
• REFERENCES

Introduction
 Global Business Environment is one where the business compete with
each other in providing the best products and services to large number
of customers.
 Furthermore, the present presentation is based on SASOL that is the
fastest growing company and is planning to expand globally in various
regions.
 Moreover, presentation will also help in understanding the significance
of globalization and will highlight the factors that are affecting the
business through conducting the PESTLE analysis.

Concept of globalization
 In the current times when it has been seen that there is growing
expectation of the people to consume variety of goods and services
number of industries are conducting their operations globally
 Furthermore, through increase number of global activities the firm are
introducing the differentiated products so that more revenues might be
generated and also market share is increased
 Also, the global markets have also increased vast number of
employment opportunities through which people are able to live
standards of living.

Political factors:
 Various factors such as political stability, industry rules and regulations,
restrictions etc. had to be analyzed properly so that it does not affect the
overall revenues of the business. Furthermore, if there is high political
instability than the firm would not be able to supply oil products in most
efficient manner

Economic factors:
 Factors like tariff and trade restrictions, tax rates, inflation etc.
also impact operation's of the firm adversely.
 Moreover, these factors needs to be analysed properly by
SASOL so that it is able to maintain the market share.
 For instance: High inflation rate would force the business to
increase the prices of the products to sustain in the market.
Therefore, such factors needs to be identified before only

Social factors:
 In any society there are various societal beliefs, norms and customs etc. and as such
these also needs to be analyzed so that there are no adverse future impacts.
 Furthermore, in case of SASOL it needs to properly identify the attitudes that are
related with health and education levels of the people so that certain changes than
might be made in offering various kinds of services in target market.

Technological factors:
 Technology needs to be updated regularly so that it
allow the business to sustain in various markets.
 Furthermore, through use of the latest technologies
SASOL would be able to maintain the competitive
advantage. Also, it would save various cost of the
business and make it run successful.

Environmental factors:
 There are various environmental standards that are been set that
needs to be followed to conserve the naturals resources in any
country. Thus, to avoid the negative impacts the SASOL needs
to strictly abide such laws.

Legal factors:
 Health and safety laws, minimum working hours, anti discrimination laws etc. has to be
ensured by the SASOL while carrying out the process in different markets.

Key driving factors of globalization
 Technological drivers:
 Political drivers:
 Market drivers:
 Competitive drivers:

Impact of digital technology upon globalization
 Digital technologies have played very important roles in increasing
the globalization in various regions.
 Also, it is because of the digital technologies that it has helped in
reducing the overall barriers in time and places.
 Moreover, digital technologies has allowed various business to
collect the information regarding customer choices and preferences
easily so that the same might be than launched into target markets.