SASOL Limited in the Global Business Environment: A Detailed Analysis

This presentation provides a comprehensive analysis of the global business environment and its impact on SASOL Limited, an international integrated energy and chemical company based in South Africa. It includes a PESTEL analysis, examining political, economic, social, technological, environmental, and legal factors influencing SASOL's operations. The presentation outlines key driving factors of globalization, such as political, economic, and technological drivers, and evaluates the impact of digital technology on globalization. Furthermore, it discusses the challenges and complexities that globalization brings for SASOL, including high investment costs, exploitation of foreign employees, loss of cultural identity, and limitations of resources. The presentation concludes with recommendations for overcoming these challenges, emphasizing open communication, maintaining cultural traditions, and understanding local ethics and legal norms. The document is available on Desklib, which provides past papers and solved assignments for students.

GLOBAL BUSINESS
ENVIRONMENT
PART 1

INTRODUCTION
• Global business environment is the environment which can create an impact on
the decision making on resource use and capabilities.
• SASOL Limited is an international integrated energy and chemical company
which is based in South Africa. The company develops and commercializes
technologies, offers range of products such as liquid fuels, and low- carbon electricity.
• This PPT will discuss the factors of external business environment and outline
key driving factors of globalization. This PPT will outline the impact of digital
technology on globalization and define challenges which can be faced by SASOL.

PESTEL ANALYSIS OF SASOL
PESTEL analysis is a tool which helps in determining the macro environment factors that can influence the business
operations. A detailed PESTEL analysis of SASOL has been discussed below:
• Political factors- Political factors such as government stability, tax policies and company regulations are some of
the factors which can influence the operations of the SASOL Ltd.
• Economic factors- The economic factors such as inflation, savings, interest, foreign exchange, economic cycle
which helps in understanding the demand and investment in the economy.
• Social factors- Some of the socio-cultural factors such as shared beliefs and attitudes helps SASOL in analyzing
the customers of the market.
• Technological factors- The rate of technological diffusion can also influence the stability of operations for the
economy.
• Environmental factors- With the help of investments in renewable energy which supports the organization ion
minimizing their environmental footprints.
• Legal factors- In context of SASOL, the company follows various employment, health and safety, anti-
discrimination and other legal protocols are some of the factors which are followed by SASOL.

KEY DRIVING FACTORS OF
GLOBALIZATION
Globalization has been a source of opportunities which has supported
the organization in enhancing their competitive position and
enhancing the overall value of the economy. The key driving factors
of globalization are- political, economic and technological factors.
The political drivers such as liberalized trading rules and deregulated
markets can often guide to less tariffs and offers opportunity for
foreign direct investment in global economy.
Economic factors act as drivers of globalization which can be seen
that cost drivers can support in building global scale economy and
offers high product development cost.
The technological factors such as use of online platforms and
digitalization have been a source for globalization.

IMPACT OF DIGITAL TECHNOLOGY UPON
GLOBALIZATION
• The advancement in technology is one of the factors which has influenced
globalization. Technological progress if one if the main drivers of
globalizations which can increase the economies of scale and market size.
Technological advancement is responsible in creating an impact which
supports in reducing the cost of transportation and communication across
nations and supports in sourcing the raw materials and other outputs.
• The change in technology can also create an impact on the investments
and also supports in reducing the barriers of time and place in business
dealings. Technology is one of the factors which is easily transferable to
developing countries which supports in outsourcing labor-intensive service
and supports in combining high tech production with low wages.

EVALUATION OF CHALLENGES AND
COMPLEXITIES GLOBALIZATION BRINGS
FOR SASOL
Globalization comes with diversity and this can bring various challenges which can create an impact on
the business. Some of the challenges which are faced by SASOL due to globalization are discussed
underneath:
High investment
cost
Loss of cultural
identity
Immigration
challenges
Exploitation of
foreign
employees
International
recruiting
Limitation of
resources and
poor supply
chain

CONCLUSION AND RECOMMENDATIONS
FOR OVERCOMING CHALLENGES
From the above PPT, it can be concluded that global business can local and international interactions which can
influence the operations of the company. Some of the factors which are involved within the global business
environment are politics, technology, culture and economies.
Recommendations: Globalization is also responsible for proposing various challenges, some of these challenges
can be managed. The strategies which can be helpful in resolving such challenges are discussed below:
 Encourage open communication
 Maintain cultural tradition
 Understand local ethics and legal norms

REFERENCES
Online
• Impact of technology on globalization, 2021 [Online]. Available through <
https://www.vskills.in/certification/blog/impact-of-technology-on-globalisation/>
• Globalization benefits and challenges, 2020 [Online]. Available through <https://velocityglobal.com/blog/globalization-benefits-and-challenges/>
• Benefits and challenges of globalization, 2020 [Online]. Available through <
https://www.globalization-partners.com/blog/benefits-and-challenges-of-globalization/#gref>
• Factors that drive globalization, 2021 [Online]. Available through <https://www.iqualifyuk.com/what-are-the-factors-that-drive-globalisation/>
• Strategies to overcome obstacles of globalization, 2019 [Online]. Available through <
https://recruitmentjuice.com/blog/how-to-overcome-the-obstacles-of-recruiting-international-talent/>