Global Business Environment: SASOL's Challenges and Digital Impact

This report provides an analysis of the global business environment, focusing on the operations of SASOL, a chemical and energy company headquartered in London. The report begins with an introduction to the concept of globalization and then applies a PESTLE analysis to evaluate the political, economic, social, technological, legal, and environmental factors affecting SASOL. Key driving factors of globalization, such as technology, political regulations, environmental norms, and cost considerations, are examined, along with the significant impact of digital technology on globalization, particularly in enhancing production efficiency and reducing costs. The report also addresses the challenges and complexities that globalization brings to an organization like SASOL, including international recruiting difficulties, potential loss of cultural identity, and overall expansion complexities. Recommendations are provided to improve quality levels and develop robust business plans to navigate these challenges effectively. The conclusion summarizes the key findings, emphasizing the importance of understanding the global business environment for companies like SASOL to thrive internationally.

Global business environment
Task 1 & 2

Table of Content
 Introduction
 introduction to the concept of globalization
 PESTLE analysis
 An analysis of the key driving factors of globalisation
 ignificant impact of digital technology upon globalisation
 challenges and complexities globalisation brings to anorganisation such as SASOL.
 Recommendations
 Conclusion
 References

Introduction
 Global business environment refers to the
environment prevailing within different countries.
It includes various elements that are beyond the
control of any community and nation. The main
aim of the present report is to analyze global
environment of business. For present report
SASOL is taken into consideration that is a fast
growing chemical and energy company,
headquartered at London. Apart from the head
office, the organization also has presence within

Introduction to the concept of globalization
 Globalization refers to exchange the products through
from one country to other at global scale. It is a
process wherein the business organization expands
their business internationally and exchange goods to
generate higher amount of revenue. Here, the
economy of the entire world work together to ensure
smooth transaction of goods from one country to
other.

PESTLE analysis
 Political Factors
 Economical Factors
 Social Factors
 Technological Factors
 Legal Factors
 Environmental Factors

Key factors of cost market, environment that drive global
trade and commerce globalization
 Technology drivers: Technology is the most crucial driving factor of globalization.
Here, globalization facilitates, technological development. The main reason of the
companies to go international is to generate new technologies.
 Political drivers: Political rules and regulations also play a major role in driving
globalization. In this regard, the countries can take decisions to reduce down the tariff,
custom duty, import and export tax to enhance the globalization. Lower trade barriers
will help the company in facilitating international trade in an efficient manner.

CONT...
 Environment drivers: In global environment, different companies have different norms
in order to protect the environment. In context of Sasol, they are required to follow
necessary environmental laws in order to maintain a positive image in market place.
 Cost Drivers: International expansion is helpful in improving the overall profit margin.
Increasing profit eventually helps in minimizing the cost that is most important to run
the business efficiently in the global environment.

Impact of digital technologies on business
 The innovation and improved digital technology
development is supporting the globalisation by
assisting the business organizations to make the best
quality products at lower price. Because that is
providing the information technology & tools that
helps to manage the production and processing
function within the organisation at low cost, by
removing the cost of labour, and the extra wastage of
resources & time.

Challenges and complexities of globalization
to an organization
 Challenges and complexities of
globalization to an organization.
 International recruiting
 Loss of cultural identity
 Global expansion difficulties

Recommendations
 Improving quality level: The company is required to improve the quality of
products to ensure effective functioning of business at international level.
 Proper business plan: in order to overcome from the complexity and challenges
of globalisation organisation have to make a proper study of each and every
complex factors and then developed the best fitting businessman according to
those factors.

Conclusion
 Through above-mentioned information, it is concluded that Global business
environment refers to the environment prevailing within different countries. It includes
various elements that are beyond the control of any community and nation.
 The above-study is based on Sasol that is a renowned chemical company of London.
Concept of globalization, PESTLE analysis, driving factors, impact of digital
technology and necessary recommendations have been included in the above-report.

References
 Halbert, T. and Ingulli, E., 2020. Law and ethics in the business environment.
Cengage Learning.
 Khajeheian, D., Friedrichsen, M. and Mödinger, W., 2018. An introduction to
competitiveness in fast changing business environment. In Competitiveness in
emerging markets (pp. 3-11). Springer, Cham.
 Nam, V.H. and Bao Tram, H., 2021. Business environment and innovation
persistence: The case of small-and medium-sized enterprises in
Vietnam. Economics of Innovation and New Technology, 30(3), pp.239-261.