Global Business Environment: Strategies and Challenges for SASOL Ltd.

This report provides a comprehensive analysis of SASOL Ltd. within the global business environment. It evaluates the concept of globalization and its impact on businesses, using tools like PESTLE analysis to understand external factors influencing SASOL Ltd.'s operations. The report identifies challenges such as increased competition, trade tariffs, and legal compliance, and suggests strategies for overcoming these barriers through technological innovation, sustainable practices, and adherence to legal standards. It also applies McKinsey's 7S Model to define the governance, culture, and structure of the organization, examining both hard and soft elements to understand how these components affect global functioning. The report further discusses ethical and sustainable globalization impacts, decision-making processes, and different routes to internationalism, concluding with recommendations for adapting organizational structure and decision-making in a globalized context. This document is available on Desklib, a platform offering a wide range of study tools and solved assignments for students.

Unit 18 Global
Business Environment

Table of Contents
PART 1............................................................................................................................................3
PART 2........................................................................................................................................11
TASK 3..........................................................................................................................................11
P3. Define the governance, culture, and structure of the organization by applying McKinsey's
7S Model..............................................................................................................................11
Defining the way these components affect global functioning and in the manner, the company
adopts in the pursuit of working globally.............................................................................12
Hofstede's Dimensions of Culture for evaluating the influencing culture...........................13
P4. Defining and classifying the impacts of ethical and sustainable globalization on functions
..............................................................................................................................................13
M3. Critically analyse the influence of globalization on the organizational culture and
structure ...............................................................................................................................14
TASK 4..........................................................................................................................................15
P5. Estimating and assessing decision-making the ways that can work in an indeed efficacious
manner in the context of globalization ................................................................................15
P6. Enunciation and Elaboration of different routes to internationalism for the companies with
their crucial key barriers ......................................................................................................16
M4. Critical examination of the key barriers in doing the business in the international
marketplace and providing recommendations for overcoming them...................................17
D2.Defining the strategies that an organisation can adopt while performing globalised
activities and justified recommendations on adapting organisational structure and the process
of decision-making...............................................................................................................17
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19

PART 1
Slide1
Slide 2
Slide 3
3

Introduction
Speaker Notes:
This Project will cover various key factor that helps the companies to expand their business in
global market. Further, it will deal with the strategic complexities that are linked with an
organisation to compete with global environment.
Slide 4
4

Speaker notes:
Evaluation of the concept of globalisation
Globalisation of business helps in achieving the organisational goal and creates an
opportunity to grow business in the international market. It tends to increase competition among
the industry and those who have better policies and plans can only survive for a long run.
Slide 5
5

Speaker Notes:
 Cost: It is one of the significant factor that incurs due to day to day operation of a
business. It involves production cost, marketing, distribution, transportation, human
resource etc. In relation to SASOL Ltd., they are required to focus on their cost strategy
to minimise them and evaluate the unnecessary expenses that may affect the growth of an
organisation. This factor must be considering to develop cost effective method to gain
competitive advantages in the international market.
 Market: Another factor aims to analyse the market trends and expectation of consumer
from the businesses. People belongs to different culture, tradition having different taste
and preference etc. influences the market and demands of such goods and services are
fulfilled by the SASOL Ltd. They are providing their goods and services at affordable
price so that every individual can easily make better choice.
 Environment: It refers to social culture, political environment and economic factor helps
the company to make expansion and growth of business. These factors are directly affect
the overall performance of an organisation in the international market. In context to
SASOL Ltd, they have conducted the research and development programme to
understand the external factor that may help them to evaluate success in the global
market.
6

 Competition: It refers to current market scenario that helps the company to strategies
their plans and policies to gain competitive advantage over the others. In relation to
SASOL Ltd., they emphasise mainly on their technological advancement to produce
more goods and services to win competitive from the other organisation.
Slide 6:
Speaker Notes:
There is some factor that are considered through PESTLE analysis which has been done in
context to SASOL Ltd., are discussed below:
Political Factor: The current political stability ensures the better administration of work within a
country. It also contributes in framing plans and policies to support foreign direct investment ,
trade tariffs, tax liability etc. to make expansion of business. In context to SASOL Ltd., they are
using the various political reforms for successfully running their business in the global market.
Economic Factors: This factors are basically deals with the economic policy such as
employment rate, inflation rates, interest charge by the financial institution etc. Due to
unpredictable crisis of pandemic, drastically affect the economy of various countries. The corona
pandemic leads to sudden decline in growth of the large scale companies and has also observed
that market share of the company are continuously falling. In context to SASOL Ltd., they have
7

also faced the fall in their growth of an organisation and continuously making effective plans to
overcome the barriers.
Social Factor: It refers to different style, culture, tradition, perception and market trends that has
greater influence over the growth of any company. This factor is very crucial to understand the
behaviour of an individual in the market to satisfy their need and demand in the market. In
relation to SASOL Ltd., they are using better plans to analyse the perception of consumer to
fulfil their needs.
Technological Factor: It is one of the most important factor that must be taken into
consideration to attain the growth of business. After globalisation, the technological upgradation
is in demand to increase the production and minimise the labour cost. In context to SASOL Ltd.,
they should analyse the innovation ideas and must bring creativity in their style of doing business
to open the door of opportunities.
Legal Factors: These factors include rules and regulation that govern the nation and the various
activities of an economy. In context to SASOL Ltd., the legislation in relation to employees are
implemented to ensure safety, security and healthy working culture within an organisation.
Environmental Factors: This factor is important to taken into consideration to follow the
sustainable technique and methods of production without causing any harm and loss to the
environment.
Slide 7:
8

Speaker Notes:
The barriers and challenges faced by an organisation can overcome by using the appropriate
strategies that will help them to gain competitive advantage over the competitors.
However, various changes have been observed by the SASOL Ltd., which includes:
 Increased Competition: Globalisation results into increase in stiff competition among
the large companies that demands upgraded technology and innovation for the production
of goods and services.
 Changes in trade tariff and export fees: Globalisation increases the tariff rates for
exporting the products in the new market. In context to SASOL Ltd., they make effective
plans to take safe entry into global market.
 legal compliances challenges: Globalisation requires strict legal compliances to bind the
organisation from the legal formalities. In context to SASOL Ltd., they take essential step
to comply with legal responsibilities and important for the proper functioning of an
organisation.
 Immigration: Due to strict and complex provisions of immigration law enhance the
complexities of businesses to make new entry in the international market.
 Digital Technology: It is another factor that assist the organisation to reduce their cost of
distribution and transportation and emphasis on production of sale. It helps to create
9

brand value and create large base of consumers. It ensures variety of products that
consumer can purchase through one click of mouse.
Slide 8
Speaker Notes:
This strategy can be made through extensive research and market evaluation to identify the
trends and expectation of potential consumers. In context to SASOL Ltd., they should focus on
the risk factors in order to make better decisions to generate revenue and profit from their
effective strategies.
Slide 9
10

Speaker Notes:
 Use of effective technological methods and innovative ideas helps the company to attract
the large base of consumer in the market. These strategies is important for establishing
brand value in the market. In context to SASOL, adoption of new technique and method
may help them to compete in the market.
 Sustainable use of production and pollution free technique is the key to success of an
organisation. As this strategy will help the SASOL to create goodwill in the competitive
market. Legal compliances and statutory compliance authorise the SASOL company to ensure
safety and health environment to employees in order to encourage them towards the
achievement of an organisational goal.
Challenges faced by managers of SASOL
 Political instability creates barriers in the growth and expansion of a business. In context
to SASOL Ltd., they are clear with their plans and policies to deal with dynamic and
unstable business culture.
 The continues fall in purchasing power of consumer increase the worries of many
industry and they have to sell their price at very low price. In context to SASOL Ltd, the
global lockdown arises new issue before them and affects their overall performance.
11

 The change in consumer need and expectation is greater challenge for the large
companies as it tends to changes inadequately and demands upgraded services to
establish good image in the market.
Slide 10
Speaker Notes:
Many challenges have been faced by the organisation due to the process of globalisation as it
increases the competition in global market. It creates dynamic business culture and complexity in
diversifying business.
Slide 11
12