Sasol's Global Business Environment: PESTEL Analysis & Challenges

This essay provides an overview of the global business environment, emphasizing the practice of expanding company activities on a worldwide scale and its facilitation of service and product manufacturing and international trade. It analyzes key factors driving global trade, including cost, market, competition, and environment, and presents a PESTEL analysis of Sasol, examining political, economic, social, technological, legal, and environmental factors. The essay also explains the complexity of strategic challenges faced by companies like Sasol when operating in an international environment, such as entry fees and the potential loss of cultural identity, highlighting the importance of formulating effective strategies and policies for improved results in the global market.

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Global Business
Environment

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INTRODUCTION
The practise of expanding different company tasks and activities on a
worldwide scale can be used to describe the concept of globalisation. The
development of service and product manufacturing, as well as
international trade, is facilitated by. (Kumar, Goyal and etl,al.,2021).
globalisation, which also assists in linking different commercial organisations on a
worldwide scale. A company’s resources as well as the decision-making process
both impacted by the exogenic factors present in the many countries’ diverse
environments which is term as the global business environment

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Analysing the key factors of market, cost, competition and environment which
drives global trade and commerce.
.Cost- This factor cost comprises all of the costs that the
business incurs as it moves from one nation to another,
with the main goal being to reap the rewards on a
worldwide scale.
Market- Firm will be highly focused on the drive-in
recent years. This initiative provides different
opportunities in the domestic market which will be
helpful if the firm is expanding their firm’s activities of
business at the global level.

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Competition- This is very hard for the different firms to
function in the global market as the existence of tough
competition and that is completed in the development of
globalisation within the world of business.
Environment: This factor signifies the power of environment
the firm performs their different tasks and all the activities
which directly aim to achieve all the set of objectives.

z PESTEL analysis of Sasol
Political: This factor plays crucial role in affecting the
operation of company.
Economical: This element has a significant impact on how
the business operates.
 Social:The social factor includes the change in taste,
beliefs, values, fashion change, perception and also social
problems and many more.

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Technological: This factor is very crucial for the firm
which brings various opportunities and also give benefits
for the enterprise.
Legal: The legal factor includes various laws, rules and
regulations which imposes by the laws of court in way of
welfare of the employees.
Environmental:- This includes all of the legislation and
guidelines created by the government with regard to
environmental protection.

z Explaining the complexity of strategic challenges faced by
company when operating in an international environment
supported by certain examples.
The concept of globalisation is not only to help the
firm to perform the business activities but also to be
helpful for the enterprise to formulate the best
strategies and policies for improved results. . As the
company operates their operations globally so that this
can a huge chance of complications in the target
market which is faced by the company in the
functions. In case of SASOL, there are complications
which are to be discussed below:

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Entry Fees: If the company wants to take their business global, they will
have to deal with this issue. The organisation will concentrate on the
export and franchising costs when it comes to SASOL.
Losing of cultural identity: This is very hard for the enterprise to
understand and adapt the different business culture and environment of
the firm operates their functions internationally.

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References
●Ko, Y.C., Zigan, K. and Liu, Y.L., 2021. Carbon capture and storage in
South Africa: A technological innovation system with a political economy
focus. Technological Forecasting and Social Change, 166, p.120633.
●Kumar, S., Sureka, R., Lim, W.M., Kumar Mangla, S. and Goyal, N.,
2021. What do we know about business strategy and environmental
research? Insights from Business Strategy and the Environment. Business
Strategy and the Environment, 30(8), pp.3454-3469.

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Thank You