SASOL Ltd: Evaluating Global Business Environment and Strategies.

This report provides a comprehensive analysis of the global business environment in relation to SASOL Ltd, a chemical and energy company based in South Africa. It examines the key drivers of global trade, including cost, market, competition, and environment, and conducts an external environment analysis using the PESTLE framework. The report discusses the impact of digital technologies on globalisation and the challenges faced by SASOL Ltd in expanding into new markets. It also includes recommendations for overcoming these challenges, such as recruiting skilled IT professionals and providing high-quality services. The analysis covers political, economic, social, technological, legal, and environmental factors influencing the company's operations, and it emphasizes the importance of adapting to cultural differences and managing entry fees. The report concludes that globalisation offers opportunities for long-term sustainability and profitability but requires careful strategic decision-making and risk management.

Global Business
Environment

Table of Contents
PART 1............................................................................................................................................4
Part 2..............................................................................................................................................15
INTRODUCTION.........................................................................................................................15
TASK.............................................................................................................................................16
Evaluation of influences of globalisation on organisational governance and leadership,
Structure, culture and functions: -........................................................................................16
An evaluation of how the above has been influenced by global operations and how the
organisation has adapted to operating in a global market....................................................18
Applying Hofstede’s Dimensions of Culture to demonstrate how the organisation has been
influenced.............................................................................................................................18
An evaluation of ethical and sustainable factors that the organisation has to consider in a
global market. ......................................................................................................................19
Critical evaluation of strategic decision making in relation to risk and diversification in a
global context.......................................................................................................................21
An assessment and critical evaluation of the range of strategic global expansion routes
available to the organisation.................................................................................................22
CONCLUSION..............................................................................................................................23
REFERENCES..............................................................................................................................24

PART 1
Slide 1: -
Slide 2: -

Slide 3: -
Speaker notes: -
The following report is based on the SASOL Ltd which is a fastest growing organisation who
deals in chemical and energy. The head office of the respective company is situated in the Cape
Town, South Africa and the company provide their services New York, Gabon, Mozambique,
Australia, and Frankfurt. The following report is going to discuss about the various factors like
market, cost, competition and environment which drive the global trade and the external
environment analysis if the company by using PESTLE analysis. This report also discussed
about the impact of digital technologies on the globalisation and what challenges can be faced by
the company in expanding into the other market because of the globalisation along with the
recommendations to overcome form such challenges.

Slide 4: -
Speaker notes: -
Cost: - this factors includes all the expenditure which are done by the company from nation to
nation and assist in paying focus on acquiring all the opportunities at the international level.
Along with this, different types of advantages are provide by this drive at the international level
which assist the company in its development and the increase the economies of scale(Băeşu and
Bejinaru, 2020). In relation to the SASOL Ltd, with the help of this factor higher profitability
can be enjoy by the company management by having cost advantage. It is very important for the
company manager to paid high focus on the various activities of the company so that they can
easily find out the customers as well as the resources in the country in which they are operate, at
a very low cost.
Market: - this is being considered as the most important drive on which company management
have to paid focus. Different types of opportunities has provided by this drive to the
organisation who operate their functions in the local market as this assist them in expanding their
functions at the international level. In relation to the SASOL Ltd, huge amount of market area is
grab by the manager of the respective company which assist the them in increasing their
profitability as well as sales. This result in that the sustainability of the firm in the international
market has been enhanced. So it is very crucial for the company manager to paid huge emphasis
on the new market area and the needs and wants of consumer (Belas and et. al., 2019). By doing

this, they can effectively meet the customers needs and achieve the higher profit and
sustainability for their company at the global level.
Competition: - the competition has been increases in the global market due to the development
of globalisation, the companies are not be able to operate in the international market it's become
very tough for them. Immense competition because of the globalisation directly affect the
different functions of the company in a very negative manner. In relation to the SASOL Ltd, the
company provide their services in different parts of the nation and because of this, huge amount
of competition has been faced by them in the international market.
Environment: - this is basically that drive in which various types of functions as well as
activities has been perform by the company management in order to attain all the goals and
objective of firm. This drive comprises of political, legal, social and technological elements
which directly impact on the globalisation. In relation to the SASOL Ltd, it is very crucial for the
company manager to paid full focus on the development of the policies and strategies for the
firm (Berman and Dalzell-Payne, 2018). Due to these strategies, long sustainable position can be
attain by the company in the international market. This drive assist the respective company
management in operating their functions at the global level in proper way and also help in large
base of loyal consumers towards the company.
Slide 5: -

Speaker notes: -
The proper conduct of this tool assist the company in expanding the business effectively. In
relation to the SASOL, this analysis has been mentioned below: -
Political factor: - this factor has direct impact on the functions of the company. Tax rates,
political interference, rules and regulation which are made by the government of the country and
many more are included in this element. In relation to the SASOL LTD, as the political stability
of the UK government is very high and along with this less tax are imposed by the government
on the organisation which act positively for them at the international level (Bull and Miklian,
2019). So it is very crucial for the company manager to paid full attention on the policies which
are made by the government, in order to operate smoothly and attain the sustainability.
Economic Factor: - this include wages, employment rate, unemployment rate, GDP of the
nation and many more. In relation to the SASOL Ltd, it is very important for the company
manager to paid focus on the economic background of the nation. As the respective company
operate their functions in the different parts of the world so it is very important for the
management to check the economic condition of the country. This not only assist the company in
improving their image as well visibility but also help them in increasing their profitability at the
global level.
Social Factor:- this includes the change in the trends, preferences, values, beliefs, desire and
many more of the consumer along with the religion and social issue. In relation to the SASOL
Ltd, it is very important for the manager of the chosen company to paid effectively attention on
the requirements of the consumer (Cheng and Wang, 2018). By doing this they can effectively
provide the quality goods which can be easily acceptable by the consumer. This result in
attaining the high market area and successful position of the business.
Technological factor: -this factor is being considered as the most important factor of this
framework. As this not only bring various opportunities for the company but also help them in
doing innovation in their gods and services. In context to the SASOL Ltd, it is very important for
the manager of the company to invest more time and money on adopting the advanced
technology(Damarwulan and Farida, 2018). With the help of advanced technology they can
effectively do the operational functions with minimum wastage. This result in that the
profitability as well as the speed of manufacturing the gods has been enhanced.

Legal factor: - in this element the laws related to the welfare of the society as well as the
employees are included. These laws are basically made by the council of the nation and it is
very important for all the organisation to follow these rules. In relation to the SASOL Ltd, then
company managers have to paid full emphasis on the laws such as women empowerment, equity
law and many more. Along with this, the company management also have to full take care of the
well beingness and safety of the employees. If all the laws are follows by the firms in proper
manner then they don't bear any consequences and run the business perfectly at the global level.
Environmental factor: - this factor comprises of those rules and regulation which protect the
climate or the environment of the nation. Environmental protection act, pollution act and many
more are included in this. In relation to the SASOL, it is very important for the manager of the
company to paid full focus on the rules which are developed for the safety of the natural
resources. If this is done by them in proper manner then this assist the company in developing a
good image in front of the consumer and don't harm the society pollution.
Slide 6: -
Speaker notes: -
This result in that they can do their business functions effectively at the international level.
Along with this, this also assist them in attaining high profitability as well as long term

sustainability at the global level. Through the involvement of the digital technology within the
organisation, professional bonding with the employees of the company has increased and
employees are able to understand the dynamic environment. In addition to this, the development
of the digital technology not only also assist the organisation in enhancing their economies of
scale but also help them in enhancing their market size(Doshi, Kelley and Simmons, 2019). Due
to the indulgence of the digital technology within the organisation, trade is done according to the
nature easily and on time.
By proper utilization of digital technology within the organisation the management of the
SASOL Ltd, would be able to perform all its task in a proper manner and the supply chain of the
company also perform effectively with the help of various programming tools and software. This
would the assist the respective company in having its innovation in the workplace and performs
all the task with high efficiency at the global level.
Slide 7: -
Speaker notes: -
Organisations are able to attain the long term sustainability along with the high profitability in
the international market because of the existence of globalisation (Dzwigol, Dzwigol-Barosz and
Kwilinski, 2020). They are able to make effective policies and strategies in order to expand their
business in the global market.

Slide 8: -
Speaker notes: -
As the international market is a very big platform where different types of organisation came
together and do the trade. Due to this, there is high chance for the company that they face
complexities in its operations within the market. In context to the SASOL Ltd, different types of
challenges can be faced by the respective company while operating in the global market from
which some of them discussed below: -
Loss of cultural identity: -this is being considered as the most common as well as the most
important issue which are faced by the organisation when they operate their business functions at
the global level (Hamilton and Webster, 2018). In context to the SASOL, its become difficult for
the company to understand as well as the adopt the culture of the new nation. But, it is very
important for the firm to identify the culture of the nation, this not only help them in performing
their different functions effectively but also help in but also help them in attaining the success.
Entry fees: -It is very important for the management of the SASOL Ltd to paid focus on the
conduct of the businesses by exchanging the different forms of exports fees and collaboration
through the franchising with various local as well as international businesses. Therefore,
SASOL, can be paid focus on international expansion by opening new outlets with the objective
of earning more and more profits. In this, there is a chance that in the form of entry fees SASOL

can pay a sum of money to the nation in which they are expanding their business. This not only
impact on the profit margin of the firm but also impact on its operational cost.
Slide 9: -
Speaker notes: -
 The SASOL Ltd, have to recruit trained and skilled IT professionals so that all the
functions of the company can be perform effectively by using digital technology.
 It also recommended to the SASOL is that, they have to provide high quality of products
to their customers by paying focus on the production activities. This not only assist in
increasing the sales but also help in enhancing the turnover ratio in a short period of time.