Global Business Environment: Sasol's PESTEL & Strategic Analysis

This report provides an analysis of the global business environment with a specific focus on Sasol, an oil and gas chemical-based industry headquartered in South Africa. It explores the key factors affecting trade and commerce, including cost, market, environment, and competition, and examines how these factors impact Sasol's global expansion. The report includes a PESTEL analysis, detailing the political, economic, social, technological, environmental, and legal factors influencing Sasol's operations. It also addresses the strategic challenges Sasol faces when operating in a global environment, such as language barriers, cultural differences, and managing global teams. The conclusion emphasizes the importance of globalization and its impact on companies like Sasol, highlighting both the opportunities and challenges associated with global trade. The study provides valuable insights into the complexities of the global business environment and its implications for multinational corporations. Desklib provides a platform for students to access similar solved assignments and study resources.

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Global Business
Environment

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INTRODUCTION
As it is known the world is growing in trade and technologies and people
are becoming more connected. The term globalization is used to define
such connection. Global business environment is that environment in
which various ruler countries influence decision-making process on the
use of resources and capabilities. Sasol is an oil and gas chemical based
industry headquartered in Sandton, South Africa

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Key factors of cost, market, environment and competition
which affects trade and commerce globally
 Cost: The main factor is the expenses for an
organisation when it plans to grow globally. There
comes various costs while opening another business
branch for a company in to another country.
 Market: It is obvious that the market will be changed
for a firm if it expands to another country. There will
be new target customers for the company.

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 Environment: It is an important factor, every
company should keep in mind if it wants to expand
its business, specially to another country.
 Competition: It is the factor which affects any firm
everywhere. It becomes more tough for the
companies to survive in another countries as there
are already existing firms which may be major
competitive factor for the company

z PESTEL analysis of Sasol
 Political: These are the government factors impacting the
operations of a company. Government actions, policies, tax
structure and others are some examples of political factors
 Economical: These are the factors which are influenced by
any financial change such as inflation, foreign exchange,
economic condition of company and others.
 Social: The factors such as society and their norms are
social factors. These are the factors influencing growth of a
company very drastically.

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 Technological: These are new inventions and
innovations which affects the working of a company.
 Environmental: These are the factors related to
environment. These vary country to country.
 Legal: These are the rules, regulations and laws of
government for a particular country. Companies have
to follow certain laws such as: consumer laws,
employment laws and others.

z Complexity of strategic challenges an organisation faces
when it operates in a global environment
 Language barrier: Different country has its own
language. Even language varies state to state also.
 Different culture: Culture varies country to
country. It has its own famous food, religion,
festivals and many others.
 Managing global teams: It is important to manage
working team of each branch of any company.

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CONCLUSION
 It could be concluded from the above report that globalization is
growing across the world. This allows companies in having more
technologies and innovations. There are some factors such as: cost,
market, competition and others which may affect Sasol when it will
trade globally. There are various external factors which are affecting
the functioning of Sasol (PESTEL).

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References
 SENTISHCHEVA, E.A. and ACQUAH, T.H., 2020. Globalization of the
world processes: the essence and directions. In МОЛОДЕЖЬ И
СИСТЕМНАЯ МОДЕРНИЗАЦИЯ СТРАНЫ (pp. 9-11).
 Mondliwa, P. and Roberts, S., 2021. From a developmental to a regulatory
state? Sasol and the conundrum of continued state support. In Ownership
and Governance of Companies (pp. 21-39). Routledge.
 Anzola-Román, P., Bayona-Sáez, C. and García-Marco, T., 2018.
Organizational innovation, internal R&D and externally sourced
innovation practices: Effects on technological innovation
outcomes. Journal of Business Research, 91, pp.233-247.

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Thank You