Sasol Ltd in the Global Business Environment: A PESTLE Analysis

This report provides an analysis of the global business environment with a focus on Sasol Ltd, a multinational energy and chemical company headquartered in South Africa. It begins by defining globalisation and its impact on international business, followed by a PESTLE analysis to evaluate the political, economic, social, technological, environmental, and legal factors influencing Sasol Ltd's operations. The report identifies key drivers of globalisation, such as cost, market, competition, and environment, and examines the influence of digital technology on globalisation and sustainability within the company. Challenges and complexities faced by Sasol Ltd due to globalisation, including high investment costs, taxes, legal compliance, and potential job losses, are discussed, along with recommendations to mitigate these issues through employee training, strategic outsourcing, adherence to local laws, and language training. The report concludes that globalisation is vital for business expansion and growth, necessitating careful consideration of internal and external factors, and emphasizes the importance of digital technology in navigating the global landscape. Access more solved assignments and study resources on Desklib.

GLOBAL BUSINESS
ENVIRONMENT

TABLE OF CONTENT
• Introduction
• PESTLE analysis to demonstrate global influences
• Key factors that drives globalisation
• Influence of digital technology upon globalisation
• Challenges and complexities to an organisation
• Recommendations to the challenges
• Conclusion
• References

INTRODUCTION
• Globalization is a useful term which allows free
movement of products, services and people throughout
the world in a smooth and integrated way.
• It could be understand as the result of opening up of
the international economy and accompaniment rise in
the flow of goods and services between different
nations.
• It also mean that nations change their import protocols
and invite foreign spending into areas that are the
booster of its economy.
• The report is based on the case study of Sasol Ltd.
which is a multinational company with headquarters in
Cape town, South Africa.
• It is an unified energy and chemical firm announced in
the year 1950 in Sasolburg, South Africa.

CONTINUE
• The presentation is based on the discussion upon
globalisation and its importance on an organisation.
• It includes various models such as PESTLE to know
the key factors such as political, social or economic
that have an impact on the company.
• It also analyses the main factors that drives
globalization.
• Digital technology plays a very important role in
present times and it also has an impact upon
globalisation.
• Later, there is an evaluation of the complexities and
challenges that globalisation delivers on companies
such as Sasol.

PESTLE ANALYSIS TO DEMONSTRATE
GLOBAL INFLUENCES
• The PESTLE analysis aims to address macro
environment factors such as political, economic,
social, technological, environmental as well as legal
factors of the country.
• It is a fundamental tool for the business analysts to
know the impact of such external factors on the
business.
• In case of Sasol Ltd., it helps in decision-making of
the business. The further discussion is below:
• Political: It plays an important role in the functioning
of the business. It involves tax rates, political
conditions, political interference and many more.

CONTINUE
• Economic factor: Business operations is also gets affected by the economic factor. It involves factors such as labour
rates, GDP, growth rate, inflation rates, interest rates and many more.
• Social factor: It involves factors such as cultural differences, change in tastes and preferences, religion, values,
beliefs, perceptions and many more.
• Technological factor: It involves the advanced and modern technologies that helps business to operate effectively.
• Legal factors: It covers laws and legislations such as equity law, labour law, minimum wage, sick leave, holiday pay
and many more, through an employee or employer can be legally protected.
• Environmental factors: It covers the rules and regulations that have imposed by the UK government to protect the
environment and resolve the pollution issues.

KEY FACTORS THAT DRIVES
GLOBALISATION
• In case of Sasol Ltd, there are range of factors that
drives globalisation. Some of them are discussed
below:
• Cost: It refers to all the expenditures which are
done by the business in order to carry out its
activities at global level. The main focus is on
grabbing all the benefits at an international level.
• Market: It is also the most important factor that
helps business to look on the growth
opportunities in local and international market.
• Competition: It is not simple to operate business
at international level as there are many
established players who can give tough
competition to the Sasol Ltd.
• Environment: This delineates the force of
environment on the business.

INFLUENCE OF DIGITAL TECHNOLOGY
UPON GLOBALISATION
• It has been evaluated that advancing in digital
technology have considerably provided globalisation.
• Technological advancement has been one of the key
influences on the globalisation.
• Digital technologies helps in reducing the costs of
communication and transportation throughout the
world and provide global sourcing of raw materials and
other resources.
• In earlier times, high technology production was
reduced to rich nations with high wages.
• But, in present times, technologies are easily
transferable to growing nations where high tech
production can be united with low wages.
• For Sasol Ltd., digital technologies helps in
encouraging sustainability in the business.

CHALLENGES AND COMPLEXITIES TO AN
ORGANISATION
• Globalisation not only allows companies to trade their
goods and services globally but also supports in
making of plans and strategies for the better outcome.
• As the Sasol Ltd. also conduct their business activities
at international level, there is a high chance that they
might face challenges and complexities in the global
market.
• Some of them are discussed below:
• High Investment: Globalisation and business
expansion at international level are mainly very
expensive attempts

CONTINUE
• Taxes across borders: Taxes can also be one of the
main complexities for the employees as well as
organisations.
• Legal compliance for employers: Global HR
managers or executives also require to consider the fact
on employing staff in legal terms in all the locations
where they operate or run their business.
• Job loss: It is one of the big complexities that
globalisation brings out in the business that is loss of
jobs.

RECOMMENDATIONS TO THE
CHALLENGES
• As per the discussion of above, it has been recommended to Sasol Company to provide adequate training and learning
equipment to their employees so that they are able to manage the things even at global level.
• They must outsourced the employees from both in local and international market so that the business can cope up in
the complexities of globalisation.
• As the company operates business at global level, they must not neglect the local laws and regulations of the particular
country where they operate or run their business.
• Following such rules and regulations will allow company to run without any legal consequences.
• Also, employees must be trained to remove any language barrier as the international business dealings involves
employees from different backgrounds.

CONCLUSION
• From the above presentation, it has been concluded that globalisation is important for the business as it allows to get
different people around the world.
• It allows them free moving of goods and services and helps in expansion and growth of business.
• When the business is growing at global level, there are lots of factors that affect company in both positive and
negative way.
• These factors can be internal and external.
• There are various key drivers of globalisation such as cost, competition, environment or market that needs to be
considered by the company.
• Digital technology also possesses an important while considering globalisation.