SASOL's Global Expansion: Analysing Factors in the Global Environment

This report provides an analysis of Sasol, an international integrated chemicals and energy company, within the context of the global business environment. It examines the factors driving globalisation, including international economic integration, market forces, cost considerations, competition, and environmental factors, with a specific focus on the impact of digital technology. The report also delves into international trade law and its implications for Sasol, followed by a PESTEL analysis highlighting political factors such as government subsidies. Furthermore, it discusses the role of supply chain management in optimizing commodity creation and delivery, ultimately contributing to a competitive advantage. The report concludes by emphasizing the diverse factors that influence international commerce and globalisation, noting the advantages and disadvantages of foreign direct investment and international economic integration, and underscoring the impact of digital technologies on the international progress of business firms.

Global business environment
Names and IDs of the group members

Table of Content
• Introduction
• Globalization
• Analysis of factors which drive globalization
• Market, Cost, Competition and environment factors
• Digital technology

Table of Content
• International trade law
• PESTEL analysis of SASOL
• Supply chain management
• Conclusion
• References

Introduction
International integrated chemicals and energy company, Sasol, has over 30,000
people in 33 countries. It develops technologies – and builds and operates
world-scale facilities – to make liquid fuels, chemicals and low-carbon
electricity. Founded in Sasolburg, South Africa, back in 1950, it’s the world's
first oil-from-coal company.

Globalization
Globalisation is defined as the dispersion of technology, human resources,
employment opportunities and knowledge between different countries and
cultures. International commercial interrelations developed between nations
because of free trade is the economic definition of globalisation.

Analysis of Factors which drive Globalization
• International economic integration: Creation of unified economic policies between
different states by abolishing trade restrictions partially or completely. This factor
drives globalisation through simplification of cross-border trade. The benefit of this
factor is that it enables business firms to easily engage in international business.
Drawback of international economic integration has is that it results in creation of
trading blocs which increase trade barriers for non-member nations.

Market, Cost, Competition and environment
factors
• Industry globalization depends upon four factors which are explained
below in context of SASOL:
• Market: The market factors which impact globalization are common
consumer needs, global distribution and international brands. Business
firms identify common consumer needs in order to offer similar products
on a global scale with variation as per cultural requirements of the region.

Digital Technology
Digital technologies have continue to impact global economy at an
accelerating rate. This is because digital technology enable improvement of
business process, affect costs of the firm and change consumer expectations.
Accessibility and connectivity of business firms is also affected by digital
technology which has empowered consumers to assess international business
firms easily.

International trade law
The regulations and costumes which need to be complied in order to engage in
international trade are covered under international trade law. International trade
law has significant impact on global business firms as governments can take
remedial actions against business firms against import of goods which harm
domestic industries due to unfair foreign pricing. SASOL has to comply with
international trade law which not only impacts the responsiveness of the company
to consumer demands but also affects the sustainable strategy of the company.

PESTEL analysis of SASOL
• PESTEL analysis of SASOL
• Political factors: The main political factor which affects SASOL are the
government subsidies which increase the profitability of the company and
assists in growth of the firm. The south African Government does not
impose carbon taxes on SASOL for 90% of the emissions of the company.

Supply chain management
Supply chain management is defined as the process of optimizing creation of
a commodity and manufacturing flow from acquiring the raw material to
logistics and delivery of the product to the consumer. Supply chain
management helps business forms to develop channels which exceed
consumer expectations while reducing overall costs and assisting in securing
competitive advantage.

Conclusion
From the above presentation it is determined that there are various factors which
drive international commerce and globalisation. Foreign direct investment and
international economic integration affect international commerce which have
advantages as well as disadvantages. Market, cost, environment and competition
factors also play an important role in dictating global commerce Digital
technologies affect international progress of business firms.