Report on Sasol Limited: Navigating the Global Business Environment

This report provides an in-depth analysis of Sasol Limited's operations within the global business environment. It explores the concept of globalization and its impact, utilizing tools such as PESTEL analysis to assess the external environment and McKinsey's 7S model to understand the organization's structure, culture, and governance. The report evaluates how global operations have influenced Sasol, including adaptations to operate in a global market, and examines ethical and sustainable factors. It also critically evaluates strategic decision-making related to risk and diversification, assesses global expansion routes, and discusses the impact of digital technology on globalization. The analysis covers factors such as international economic integration, socio-cultural convergence, financial liberalization, cross-border political influence, and increased international business and trade.

Unit 18 – Global
Business Environment

Table of Contents
PART 1.......................................................................................................................................3
PART 2.....................................................................................................................................13
INTRODUCTION....................................................................................................................13
MAIN BODY...........................................................................................................................13
An explanation of structure, culture and governance within an organization such as
SASOL applying McKinsey’s 7S model to the organization..............................................13
An evaluation of how the above has been influenced by global operations and how the
organisation has adapted to operating in a global market....................................................15
Hofstede’s Dimensions of Culture.......................................................................................15
An evaluation of ethical and sustainable factors that the organisation has to consider in a
global market........................................................................................................................16
Critical evaluation of strategic decision making in relation to risk and diversification in a
global context.......................................................................................................................16
An assessment and critical evaluation of the range of strategic global expansion routes
available to the organisation.................................................................................................17
CONCLUSION........................................................................................................................17
REFERENCES.........................................................................................................................18
Books and Journals:.............................................................................................................18

PART 1

Speaker notes: In this context, Sasol limited will be discussing in this presentation. Sasol is
the integrated chemical and energy company that formed in 1950. This presentation will
include the concept of globalisation and also analyse the external environment with the help
of PESTEL analysis. It will also discuss the important driving factors of globalisation and the
significant impact of digital technology on globalisation.
Speaker notes: Before globalisation, it is identified that countries are not allowed to enter into
other countries market. But it is found that globalisation is an important process which is

mainly focusing on interaction and integration with people and companies on worldwide
basis. The main aim of globalisation is found to secure social and economic integration and
development of people with the help of free flow of goods and services, information and
knowledge across all borders.
• Speaker notes: Political factor: It is identified that political factors are playing an
important role in the business of Sasol limited as it provides our impact on their long-
term profitability. It is found that Sasol limited is operating their business in more

than a dozen of countries that's why they are facing many impacts of political factors.
It includes political stability, risk of military invasion, level of corruption, trade
regulations and tariff, bureaucracy, taxation, etc. Sasol Limited is working in such a
dynamic industry in various countries which diversifies the systematic risk of the
political environment.
• Social factor: It is important to note know that companies need to understand the
impact of social factors as it provides an impact on the culture of the organisation. In
the case of Sasol limited, it is found that the shared beliefs and attitudes of the
population are playing an important role that how marketers understand their
customers and satisfy them.
• Technological factor: It is identified that technology is fast disrupting the various
industries in the business world. It can understand with the help of an example which
is of the transportation industry. In the last 5 years, it is noticed that how
transportation industry has been transforming very fast as it has not even given chance
to existing players for overcoming the challenges and changes. This is the main
reason that Sasol limited needs to understand and analyse technological factors as it
provides a great impact on their survival in the market. If they are in slow speed to
analyse then they will have little time to cope up it is not possible for them.
• Legal factor: Every industry has certain legal factors which they need to comply with
according to the countries specifications. It includes antitrust law, discrimination law,
health and safety law, copyright law and employment law. In a number of countries,
there are many legal frameworks that they need to follow in order to protect the
intellectual property rights of an organisation as it provides a great impact on their
competitive edge.
• Economic factor: Economic factors include inflation rate, exchange rate, saving rates,
interest rate, and economic cycle. It determines the aggregate demand and investment
in an economy. It provides the impact on the competitive advantage of Sasol limited.
They need to understand economic factors so that they can forecast the growth
trajectory. In the continued international expansion plan of the company, it becomes
very important to understand the economic factor.
• Environmental factor: In the case of environmental factors, it is found that this
industry is releasing many hazardous elements and gases into the environment which

is really bad for the health of human beings. It is important to note that it company
needs to take the right action immediately because every day there is an increase in
pollution.
• Speaker notes: Digital revolution: It is known by every organisation that the internet
has made it easy to excess goods and services in the world. With the help of mobile
phones now anyone can purchase goods and services easily from anywhere in the
world. Due to globalisation, technology is becoming easy to carry out a borderless
transaction which enables the initiation of the digital revolution. Globalisation is the
main reason for the digital revolution as no country can enter into other countries with
their technology that helps to integrate with other countries. It is identified that
customers are now able to compare prices online with the help of the digital
revolution. In addition to this, the digital revolution includes social media which
compress the whole world within seconds into a global village. With the help of just
one click, now any person can show the information to the overall world.
• International economic integration: It is identified that with the help of globalisation
now countries are able to integrate their economics. This can be better understood
with the help of several trade blocs which reduced barriers among countries such as
NAFTA for the US, EAC for East African countries, etc.

• Social-cultural convergence: Due to globalisation, any person can interact with other
people from anywhere in the world which results in the transfer of information
anywhere in the world. In addition to this, social media and online newspapers have
also become the ways to access information. It results in losing of cultural identity by
people.
Speaker notes: Financial liberalization: It is found that there is a continuous increase in the
interconnection of countries due to the deregulation of financial markets. Now it becomes
easy to exchange money for global currencies. IT results in easy to purchase goods and
services anywhere from the world.
Cross-border political influence: It is identified that government has the authority to
formulate policies related to cross-border trade and influences. It is also found that developed
nations have more power as compared to developing nations as they can take necessary
decisions related top cross borders trade.
Increased international business and trade: It is found that globalisation is the main reason for
increasing the international business and trade. Every country wants to increase their business
in other countries as well. Due to globalisation, they have an opportunity to increase their
business and incomes.

Speaker notes: It is found that there is a continuous increase in digital technologies which is
found to be more rapidly as compared to any other innovation in history. It reaches every
sector whether it is the health sector, education sector, etc. With the help of digital
technology, now it becomes easy for countries to connect with other Nations as they can
easily interact with the use of online platforms. It is also very useful in order to reduce the
cost of communication and transportation across Nations. Before digital technology, it was
very hard to communicate across Nations as there is no way to interact with them.

Speaker notes: International recruiting: It is identified that 30% of US and UK technological
leaders are cited for international recruiting which is found to be the most common challenge.
Recruiting across border is not an easy process as every person or candidate has different
qualifications and cultural identities which create problems for them.
Speaker notes: Managing employee immigration: Managing employee immigration is found
to be a challenge which a cause of headache. There are many laws which need to be
complying by countries so that they can manage their immigration facility. There are many
people who are working in foreign countries and it becomes very difficult to secure visitors
so that they can stay for immigration purpose.
Loss of cultural identity: Globalisation is making the process easy for foreign countries as
they can access any technology and person from anywhere in the world. It is also identified
that due to this there is a loss of cultural identity.
Global expansion difficulties: In the case of businesses, Sasol limited was facing many
challenges in order to expand their business in the world. Still they are facing many
difficulties because it is not an easy process for them to expand market. It includes many
rules and regulations which thing needs to follow and also identify and analyse the external
environment of country where they want to expand.

Speaker notes: It is analysed that there is an impact of digital technology on globalisation
found which becomes necessary to understand. It is also identified that globalisation is not an
easy process as it included many challenges and complexities such as loss of cultural identity,
managing employee immigration, etc.

Speaker notes: ntroduction. Journal of Contemporary Asia, 51(5), pp.697-712.
Du Plessis, J.J., Varottil, U. and Veldman, J. eds., 2018. Globalisation of corporate social
responsibility and its impact on corporate governance. Cham: Springer.
Deshwal, P., Gołąb-Andrzejak, E. and Barbossa, B., Business and Globalisation in Emerging
Markets.
Máliková, I., 2020. Impact of globalisation on circular economy and sustainable
development. In SHS Web of Conferences (Vol. 74, p. 06018). EDP Sciences.
Spyros, R., 2020. Measuring economic development and the impact of economic
globalisation. Studies in Business and Economics, 15(3), pp.185-207.