BTEC HND: Analyzing Global Business Environment of SASOL Ltd.

This report provides an analysis of the global business environment with a specific focus on SASOL Ltd., a leading chemical organization. It explores the concept of globalization, defining it as the expansion of a company's business into other countries and the allowance of foreign investment. The report utilizes PESTLE analysis (Political, Economic, Social, Technological, Legal, and Environmental factors) to examine the external factors impacting SASOL Ltd. Key drivers of globalization, such as economies of scale, technology change, differences in tax systems, intense competition, labor availability, lower transportation costs, and lower trade barriers, are discussed. The impact of digital technology, including e-commerce and electronic money transfers, on globalization is also analyzed. Furthermore, the report identifies challenges faced by SASOL Ltd., such as supply chain management and the development of local suppliers. Recommendations are provided, including compliance with air quality regulations and international standards. The report concludes that various factors drive organizations to globalize and emphasizes the importance of conducting PESTLE analysis before entering new markets. The document includes a list of references.

Global Business Environment

TABLE OF CONTENT
 Introduction
 Concept of globalization
 PESTLE analysis
 Driving factors of globalization
 Impact of digital technology on globalization
 Challenges faced
 Recommendations
 Conclusion
 References

INTRODUCTION
Global business environment refer to set of factors that create atmosphere in the business world which
put direct impact on success and growth of a company.
It is also defined as environment that created in varied sovereign nations where different forms of
organizations accessible and run their ventures successfully.
The current assignment will be based on SASOL, which falls under the category of leading chemical
organizations in the world.

CONCEPT OF GLOBALIZATION
Globalisation means when the company is
expanding it's business in other countries.
It also means that other countries allow companies
to set up operation in their country. Besides this
other countries also allows foreign investment into
their main sector of its economy.

PESTLE ANALYSIS
It is an analysis of the external factors that
affects the organization they are Political,
Economic Social, Technological, Legal and
Environmental.
These factors helps the managers in taking
decisions of the company
Political factor
Economic factor
Social factor
Technological factor
Legal factor
Environmental factor

CONTINUED..
Political
factor
• Consideri
ng tax
rate as it
affect
working
of
business
to a great
extent
Economic
factor
• Analysis
interest
rate as it
affects
operation
of
company
Social factor
• Ascertain
the
attitude
and
preferenc
e of
consumer
Technologic
al factor
• Include
the latest
need
relating
to
technolog
y
Legal factor
• Proper
complian
ce with
different
rules and
regulation
Environment
al factor
• Protectio
n of
environm
ent and
CSR

KEY DRIVING FACTORS FOR
GLOBALIZATION
 There are various factors that
drives the globalisation process so SASOL
Ltd. much consider these factor before
entering into new market.
These factors are as under-
Economies of scale
Technology change
Difference in tax systems
Intense competition
Labor availability
Lower transportation
Lower trade barriers

IMPACT OF DIGITAL TECHNOLOGY ON
GLOBALIZATION
Digital Technology means to store information through the use of
electronic devices.
It includes all the electronic devices and systems in which you can
record the data and store.
Digital Technology plays a very important role in influencing companies
to go into globalisation.
E- commerce has a huge impact as companies can sell their products
from anywhere or in any parts of the world.
Financial companies are also impacted by digital technology as they
transfer money through electronic money.

CHALLENGES
 SASOL Ltd. faces challenge in supply chains as company growing its network and
expanding it's business in other parts of the world.
 In case of remote areas where suppliers don't know about the industry rules so to
encourage them is a challenge.
 Before entering into new market company must look the development of local suppliers
and helps them how to do business.

RECOMMENDATIONS
 It is advisable to company to fulfils the laws related to maintaining the air quality and
also the norms set for the power and steam plant.
 Besides this company must follow the rules that are included in the Air quality Act.
 Firm need to follow all the international standards before setting up new plant across the
world.
 Organisation must fulfils the standards set for the power plants and coal gas plant.

CONCLUSION
 From this presentation it is concluded that there are many factors that drives the
organisation to go globally.
These factors are economies of scale, difference in tax systems, technology change and
intense competition it encourages firms to globalize.
Besides this, company must do pestle analysis as external factors affects the company
while entering into the new market.

REFERENCES
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Review. 5(3). pp.118-133.
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conditions. Baltic Journal of Economic Studies. 6(2). pp.81-92.
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scale and node congestion. Transportation Research Part B: Methodological. 133. pp.62-84.
 Oramah, B. and Dzene, R., 2019. Globalisation and the recent trade wars: Linkages and lessons. Global Policy. 10(3). pp.401-
404.
 Ramazanov, I. A and et.al., 2021. Retail transformation under the influence of digitalisation and technology development in
the context of globalisation. Journal of Open Innovation: Technology, Market, and Complexity. 7(1). p.49.
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