Sasol Limited: Global Business Environment Report Analysis

This report offers a comprehensive analysis of the global business environment, focusing on key drivers of global trade such as cost, market, environment, and competition, using Sasol Limited as a case study. It delves into the strategic challenges faced by firms operating globally, supported by an understanding of the cultural nuances and the PESTLE analysis framework. The report further evaluates the influence of globalization on organizational leadership, culture, and functions, incorporating the McKinsey 7S Model and Hofstede's cultural dimensions. It examines the impact of sustainable and ethical globalization on organizational functions and discusses effective decision-making in a global context. The report also identifies different routes to internationalism and the barriers an organization may encounter, providing a holistic view of the global business landscape.

Global Business Environment
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Contents
INTRODUCTION...........................................................................................................................3
PART -1...........................................................................................................................................3
P1 Discuss about the different key factors of cost market, environment and competition that
drive the global trade and commerce...........................................................................................3
P2 Describe the strategic challenges faced by firm when they operating in the global culture
supported......................................................................................................................................4
PART 2............................................................................................................................................6
P3 Evaluate the influence the globalization on the organizational leadership, culture and
functions......................................................................................................................................6
P4 Describe that how influences of sustainable and ethical globalisation on the organizational
functions......................................................................................................................................9
P5 Discuss Factors of decision making that can work effectively in global environment........10
P6 Determine and articulate the different routes to internationalism an organization may adopt
a key barrier...............................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
The global business environment refers to the overarching the culture in which the
organization operates. It is board concept that include wide range of factors that can influence the
business such as culture, location, technology and politics status of the global environment.
A “Sasol limited” is based on the integrated chemical and energy. It is situated in south
Africa and build their processes in 1900. This report will discuss about the different key factors
of competition, cost market and environment that can drive the global business.
This documentation will describe the complex strategic challenges that faced by
organization and also supported global culture or environment. Furthermore, the global
environment will influence the sustainable and ethical on the enterprises functions. It will
determine that how globalization influence the organizational leadership, culture and enterprises
functions. Moreover, there are variety of decision making help the business to work effectively
and efficiently. At last, it will determine the key barrier that adopt by internationalism.
PART -1
P1 Discuss about the different key factors of cost market, environment and competition that
drive the global trade and commerce.
“Sasol Limited” is a leading organization to expand their business across the world but it always
remains maintain the competition level that have intensify their marketing approach everywhere
by adopting the sustainable advantages (Chan, Fung and Yau, 2018). These are different types
of key factor that can handle the business operations and functions. these are main driver of
globalization that increase the global trade and commerce such as cost, market, environment and
competition.
Cost
It can be maximizing and utilising the investment which is the best motivators in SASOI
business. The single nation markets will not enough for business to offer the subsidiaries that
include scope, scale of economies. Especially, when it has been changes in the global markets.
The basic goal is get to increase speed from the cost of investment. On other hand, online
promotions and advertisement can help the business to increase productivity or profitability in
marketplace. Nowadays, the global opportunities and costs will lead to important decision related
the consumer segments or product positioning.
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Market
The advancement of economies is becoming the most popular and similar in the life styles,
income, aspirations and also use leisure. In Sasol firm, it can find the certain potential buyer in
the nation which have a higher purchasing power. Having global strategy that doesn’t mean
when Sasol Limited firm should provide the service across the world (Chiu, 2018). The
organization is usually focused on the demand of customer and new trends as per the regions of
nations. They must follow the business structure of multination management system to identify
the behavioural traits and demographics criteria.
Environment
For increasing the customer mobility and wealth, increasingly transfer the information
across the world. It has required the publicity for the benefits of globalization in business
environment. It can use the modern technology that continuous accelerate the demand of goods
and services. Sasol firm is used the different type of communication medium to increase the
economic growth and development. In this way, the organization will take advantages for
improving the trade regions and advance technology.
Competition
Market competition is a major factor in terms of globalization that can affect the business
in both negative and positive ways. A “Sasol Limited” introduce the new chemical products and
distribute faster in marketplace. It doesn’t remain ahead the risk of competition so that it always
uses innovative idea for maintain the position in market. Without having structural reason, Sasol
firm should take more advantage of globalization than other competitors.
Foreign Direct Investment(FDI)
It is a type of investment that made by Sasol form in the one nation into the enterprises
interests located into another nation. SASOL firm generally takes the FDI when the investors
establish the business operations and functions. in this way, the organization acquire the foreign
business assets. It plays important role in the Sasol Firm to establishes either effective and
substantial influences over the decision making in the business development.
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P2 Describe the strategic challenges faced by firm when they operating in the global culture
supported.
Sasol firm has been faced the different complex challenges in the business process when
they were operating the culture, environment of business. In this way, it must be used the pestle
analysis frame-work that support the entire business to identify the risk that generate during
operations and functions. PESTLE is based on the strategic tool that easily analyse the macro
environment of the company. For Example- An industry must be highly profitable with strong
growth and development trajectory but it won’t able to good for Sasol if it will be present in the
unstable political culture or environment.
Political Factor
This factor impact on the Sasol firm Limited for long term benefits in the different
markets. It is operating the different chemicals in large amount and also expose the political
environment or risks. It has increased the corruption level when especially in the terms of
regulation in manufacture products (Crane, Matten and Spence, 2019). On the other hand, it is
also increasing threats in the nation from the business environment due to terrorist, instability
and military policies. In this way, Sasol has faced the challenges and difficulties in different
manners.
Economic Factor
Sasol Limited closely related to the performance of economic in the nation. It is possible
due to increase the globalization and utilising the local resources. It has increased the investment
in the development to maintain the facilities for business growth but the economic performance
of south Africa will be stable because of the disposable income and increasing the investment.
Social Factor
This factor impact on the Sasol Limited because of increasing the trend of income and
generate inequality in South Africa. Gender role is playing important that provide the
opportunities to young people sometimes, it has increased the challenges when it does not
consider the equal opportunities that negative impact on the social communities.
Technological Factor
Technology is the fast disrupting in multiple sector and also impact on the “Sasol
Limited” to change the rate of technology, disruption of supply chain etc. It doesn’t have strong
culture of technology so that it has increased the risk of developing competitors and
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collaboration (Hamilton and Webster, 2018). On the other hand, “Sasol Firm” always keep close
their eyes towards the enhancement and development of people experience with increasing the
performance or speed. In this way, it completely transformed the experience of user toward
chemical and energy based sector. For example- Taxi industry become dominating like lyft, Uber
and Ola, which lead by automation such as manufacturing and google disrupted by Tesla.
Legal Factor
Legal plays important role in the development of “Sasol Limited” firm that consider the
important legal aspects. “Sasol firm” use the environmental regulation in south Africa to meet
goals and achievements. Sometimes, it arises the privacy issues in the organization but it can
protect through intellectual property rights. It is to be considered against the unauthorised data
and breaches. For Example- In tesla, securities and contract laws may effect on the business
because employee misuse their own rights and effects on the business operations.
Environmental Factor
The environmental standard and norms are given more priority by “Sasol Limited” in
terms of innovation. The organization is designed the environmental standard as per the
requirement of business. For Example- Recycling is the most emerging technique that keep
maintain the materials used in the production. It is also adding the extreme weather in the
operations of “Sasol” and investing for maintain the supply chain in proper manner.
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PART 2
P3 Evaluate the influence the globalization on the organizational leadership, culture and
functions.
In “Sasol Limited”, currently exist in the complex environment that can directly affected
by the globalization. In order to success and survive that must need to adopt the constantly
changing of international markets. It is to be considered the Hofstede’s dimension of culture and
Mckinsey’s 7S Model that influence the culture, functions and structure of organization.
McKinsey 7S Model-
The MicKinsey 7S model is based on designed tool that help the enterprise managers to
understand the concept and how they can improve. This type of framework was designed for
maintaining and controlling the business activities (Kasemsap, 2018). It useful for business to
understand the internal activities to find out how work can be done efficiently. “Sasol firm” is
implementing the Mckinsey model in the business operations to control the hard things. This
model can be divided into two different types: hard and soft elements.
Strategy:
A Sasol firm is mainly focused on the manufacture the chemical products and offers
various type of material to other sector for making medicine. The basis aims to provide the
services and increasing business across the world.
Structure:
It is important part of “Sasol firm” to maintain their proper structure. It is a leading
organization that can divide each work because it helps for classified the categorises. In Sasol,
this firm is mainly followed the divisional structure and maintain the specific hierarchy in
between employees or management. It should be designed an appropriate structure to divide
equal job responsibilities of employee.
System:
A “Sasol Limited” is using the internal consumer relationship management system that
always keep to maintain the information about the chemical, current deals and contracts. It is
based on the online mode when automatically store details.
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Style:
A “Sasol firm” must be developed open environment and also considered the important
legislation, policies and procedures that help for maintain environment culture at workplace. This
will help for employee to identify their own goals and self-governing.
Shared values:
Customers are friendly with the organization to share their opinion and view point
according to their experience. “Sasol” firm provide the top priority to their clients.
Skills:
A “Sasol” firm works the efficient employees with increasing the popularity of
organization in marketplace. They can understand the raw material which require for product
development. employee always know about the guidelines issued by the government.
Staff:
Staff is the important role plays in the organization and also understand their own
responsibilities. In Sasol firm, every staff member has performed the specific task to handle
functions.
Figure 1McKinsey 7S Model
(Source: Mckinsey 7S Model. 2018)
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Leadership:
In Sasol firm, a leader must perform different role which influence the other members
towards the business operation and function. Globalization may influence the Sasol firm to
develop the leadership quality between employees so that they can achieve their specific goals
and objectives.
Function:
Globalization may influence the organizational functions for increasing the performance
and efficiency. It acquires the opportunities for expanding the business across the world.
Hofstede’s dimension of culture
This theory is a type of framework for the purpose of cross culture communication. It will
describe the effect of society and values of members (Kirton and Maclaren, 2018). It is related to
the behaviour of employee towards the business at workplace. It can be divided into six
dimensional culture types:
Power distance- It express the dimension of less powerful people in the society that can
distribute unequally. In Sasol firm, it should handle the inequalities at workplace and also
provide the equal right as per the demand or power.
Individualism- This type of dimension is defined the preferences for social framework
every staff member take care of business operations by themselves. In Sasol, it helps the
employee to exchange their own loyalty towards the organization and their specific goals.
Masculinity- This dimension is all about the values and moral duties that considered the
important for “Sasol” business in global market. The Sasol firm provide the equal opportunities
of women and also give preference related health, safety and quality of life.
Uncertainty Avoidance- It express the dimension where people feel uncomfortable with
the ambiguity. In this way, Sasol firm deals with the issues and try to control and maintain the
intolerant behaviors.
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Figure 2 Hofstede’s cultural Dimensions
(Source: Hofstede’s dimension culture. 2018)
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Culture
As per Hofstede’s dimension culture, Sasol is considered the important concept that always
influence the globalization on the organizational governance, culture and leadership. In this way,
Sasol may identify the behavior of employee towards the business process at workplace. It is the
most important factor that help for creating an effective environment and culture. In Sasol, it
influences moral values and duties of each employee towards business growth. Sasol firm
provide the equal opportunities of women and also give preference related health, safety and
quality of life.
P4 Describe that how influences of sustainable and ethical globalisation on the organizational
functions.
The concept of Sustainable and ethical considerations is the most popular concepts in
terms of economic growth because they can achieve in properly. In additional, Globalization
market emerging the ethical necessity for the opportunities in future generations. It is analysing
the sustainable development which emphasis the significance of ethical factor in context of
globalization (Park, 2018).
To grow the sustainability of enterprises along with applying the organizational
measurement that help for improving the business performance and efficiency. South Africa may
have experience to improve the local work culture and environment. Moreover, the sustainable is
another important in the context of globalization that increase the productivity and profitability
in marketplace. The globalization might be achieved their specific goals and objectives of
organization. Ethics can impact on the different functions of organizations such as Marketing,
human resource, research and development.
The specific role of ethical in the human resource management to develop the local
environment between employee and employers. In many cases, there has no specific rules for
preventing the discrimination against the age, sex and so on. In this way, it has required for
“Sasol Limited” that may follow the practices in the business environment to maintain social
responsibilities. This type of practices influences the ethical consideration in Human Resource
Management.
Ethical and cultural standards make difficult for the employees and employers. Without an
effort, Sasol Limited has fired the employee as culturally unethical and it is difficult to again
build loyalty or trust.
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In “Sasol Limited”, Financial Management function performed in the organization when
they have a primary goal of increasing wealth for shareholder. Ethical behaviour leads to
increase the wealth. It should be identified that the substantial relationship between social
responsibility and financial performance required for long term development.
On the other hand, production function deals with the Sasol Limited firm to ensure their
processes, chemical do not harmful. In this way, it is maintained the relationship with the
environment.
The ethical and sustainable globalization are important concept that can be used in the
Sasol firm which always influence the business functions where all employees are managed and
controlled the specific task according to the requirement of organization. Ethical may influence
to improve the quality of production where employee must follow all rules and regulations for
completing the task in specific deadline. Sustainable and ethical are interrelated to each other
that can improve the culture and environment at workplace. In Sasol firm, Financial operation
may be performed by managers to perform the entire task in ethical manner.
P5 Discuss Factors of decision making that can work effectively in global environment.
In terms of direct relationship to the enterprise decision making so that it has needed to
accept all necessary changes in the organization. Sometimes, it is unpredictable in terms of
international and domestic ways. The decision based on the traditional consideration may harm
the business and causes of crisis. For Example- Crisis occur in the southeast Asia that altered
capital markets in global world.
In term of decision making, business ethics is the important factor that easily examine the
principles of business environment. It can applicable all aspects of business that relevant to the
organization as well as individuals. A “Sasol Limited” has perceived by the consumer to be
ethically manner that will be honoured for understanding the knowledge of actual working in the
firm. In this way, ethical and sustainable factor useful for better decision making (Schandl and
et.al., 2018). It is great significance of ethical attitude towards the business management and the
decision should be based on the public interest, employees and organization for long term
objectives.
As per analysis, Ethical useful for decision making to identify the business performer
those who are actually making the important decision regarding growth and development. In
“Sasol limited”, operational decision might be taken by lower levels and also ensuring their own
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responsibilities of decision making and strategic objectives. It helps for promoting the
sustainable development at higher level.
In “Sasol Limited”, it is to be considered the financial business that can identify the
specific choice that have been made decision which needs the idea about the sustainability
problem and issues. An ethical analysis will help to reveal the choice of company in terms of
contribution. This type of choice will increase the performance and efficiency of financial
operations in global market. There are different ways to determine that ethics must useful in the
decision making.
Profitability and ethical
These are important aspects of business and run together. A “Sasol Limited” has inspired
with the ethical that help for increase the value driven and generate success in long term
development. Decision making has been effectively work in the profitability and ethical because
Sasol takes place right decision in the strategy planning for increasing the productivity and sales
in global marketplace.
Law cannot protect in properly but ethics did
Ethical factor is necessary part of organization because government doesn’t protect the
society, employee with proper manner but ethical management will help to identify the
measurement regarding employee protection, pollution by legislation. Decision making has been
effectively work in terms of legislation where employee may perform the task in ethical manner
and take some important decision by measuring the enterprises growth rate.
Ethical influence the globalization on shareholders
Enterprise decision making become useful for organization to maintain high level
performance and efficiency. It enables to understand the business culture and environment in
proper manner. It useful for taking better decision regarding the growth and development.
Ethical consideration is important factor of decision making which improve the culture and
environment of organization.
P6 Determine and articulate the different routes to internationalism an organization may adopt a
key barrier.
I International expansion of successful events may drive the growth of business and
emerge from the roundtable in the different approach. In Sasol, the roundtable participants can
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be used the different type of internationalisation routes which reflect on the local market, when
they are entering as resources, risk level. A “Sasol Limited” firm always faced the issues and
problem during business expansion and development. It is important stage of company with
maintain both opportunities and barriers. It often carried out with increasing the financial
fortunes for employees and employer. The expansion generally occurs when it is validating the
initial business policies and procedures. The growth means that the organization management
become less and not centralised in proper manner (Williamson, 2018). It also increases the
internal politics, dissension and protectionism, over the business goals or objectives. The
enterprises expansion always brings with improve the opportunities for employees and manager
can recognise the responsibilities to their team members.
A “Sasol limited” has been expanded their business operations in other countries so that they
are used the specific strategic route in the business to adopt internationalism. It allows to increase
the inventory and services without having changes to the components of enterprises. Generally,
the organization have finding the desirable capacity to grow the business and also choose the
better options for expansion. There are some common routes considered in the business
expansion and development.
 From Head office
 Franchise
 Local Agent
 Joint Venture
Organising from the head office which is the first step, trade off being control and in the
presence of country with the local contacts. On the other hand, Agents are the popular route
which dependent on the choice of people, motivation and capability.
On the other hand, Franchise and Joint venture are both effective for market entrance but
it should always have planned an appropriate structure where on partner grows to other. These
are some specific advantage of internationalism routes.
1. It has been developing the growth by acquisition of other existing enterprises.
2. They also offering the franchise to the ownership into another entrepreneur.
3. It has been established the enterprises contract and agreement between dealership as well
as distributors.
4. It has made plan related the staff stock ownership.
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5. The organization might be joining the cooperative of industry and achieving to save in
other areas of functions and operations such as purchasing, promotion, advertisement.
These are useful routes applicable in the business to increase the production and sales in
marketplace. The organization can choose the specific route according to requirement for
expansion but it occurs some challenges and disadvantages in the business management.
 It has been growing and developing the business too rapidly but the problem strikes when
operational business ended so that the demand of item will be outpace of production
efficiency.
 Expansion of capital must require the financing bit sometimes, it shows the frustrating
past experience and high pressure.
CONCLUSION
As per discussion, it concluded that The global business environment refers to the
overarching the culture in which the organization operates. It summarised that the complex
strategic challenges that faced by organization and also supported global culture or environment.
Furthermore, the global environment always influences the sustainable and ethical on the
enterprises functions. afterwards, it also understands that how globalization influence the
organizational leadership, culture and enterprises functions. Moreover, there are multiple ways
the decision making help the business to work effectively and efficiently. It is also determining
the key barrier that adopt by internationalism.
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REFERENCES
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and Singapore. Routledge.
Crane, A., Matten, D. and Spence, L., 2019. Business ethics: Managing corporate citizenship
and sustainability in the age of globalization. Oxford University Press.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Kasemsap, K., 2018. Mastering business process management and business intelligence in global
business. In Global Business Expansion: Concepts, Methodologies, Tools, and
Applications (pp. 76-96). IGI Global.
Kirton, J.J. and Maclaren, V.W., 2018. Forging the Trade-Environment-Social Cohesion Link:
Global Challenges, North American experiences. In Linking Trade, Environment, and
Social Cohesion (pp. 1-24). Routledge.
Park, Y.W., 2018. Global Business Model Building Based on the Three Core Competences and
Business Architecture. In Business Architecture Strategy and Platform-Based
Ecosystems (pp. 9-20). Springer, Singapore.
Schandl, H. and et.al., 2018. Global material flows and resource productivity: forty years of
evidence. Journal of Industrial Ecology. 22(4). pp.827-838.
Williamson, K., 2018. The International Business Archives Handbook: understanding and
managing the historical records of business.
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Hofstede’s dimension culture. 2018 [online] Available
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