SASOL's Strategic Challenges in the Global Business Environment

This report provides an analysis of the global business environment, focusing on the experiences of SASOL Ltd., a South African chemical and energy company. It evaluates significant factors driving globalisation, such as cost, market, environment, and competition, and examines their impact on SASOL's international expansion efforts. The report critically assesses key factors impacting the global business environment using PESTLE analysis and explores the complexities and challenges faced by SASOL, including increased competition, tariffs, and compliance issues. It also evaluates the significant impact of digital technology on globalisation and discusses strategic challenges in the context of risks, diversification strategies, and supply chain flow. The report concludes by highlighting the opportunities and challenges presented by globalisation, such as technological advancements, compliance with environmental laws, and political landscape dynamics. The document references academic sources to support its analysis.

Unit 18 – Global
Business
Environment
Part 1

Table of content
 Introduction
 Evaluation of significant factors that drives globalisation
 Critical evaluation of key factors that impacted global business environment
 Evaluation of the complexities and challenges of globalisation they are to
faced by SASOL
 Evaluation of strategic challenges in context of risks and diversification
strategies and supply chain flow
 Critical evaluation of global business environment comprising of opportunities
and challenges faced by organisation
 Conclusion
 References

Introduction
 Globalisation is a broader concept
which can be described as increased
integration of world economies
through movement of products,
services and capital across the border.
For better understanding of
globalised business practices, SASOL
company is taken into consideration.
SASOL Ltd. Is a chemical and energy
company based in South Africa.

Evaluation of
significant
factors that
drives
globalisation
Explanation of the concept of globalisation
 Globalisation refers to the method by
which people of different countries have
become more attached through
economically, politically and socially. In
the context of SASOL, the company
wants to expand their business into
different countries like New York,
Frankfurt, Mozambique, Gabon and
Australia to fulfil their objective of
continuous international expansion also to
increase productivity, profit, customer
base, brand value and market share.

Factors that
drives
commerce and
economy in
economy
 There are various factors which drives globalisation of SASOL to
achieve their main goals of continuous international expansion. These
factors has greatly impacted the business productivity, trade and growth
in international markets which are shown below:
 Cost
 Market
 Environment
 Competition

Critical
evaluation of
key factors
that impacted
global
business
environment
 PESTLE analysis is described as
an assessment which is done by
organisations in order to scan
macro external factors that has
impacted business operations on
an internal basis. Managers of
SASOSL have performed
PESTLE analysis in order to
analyse impact of key forces on
international expansion in regards
to opportunities and challenges.

Evaluation of
the
complexities
and
challenges of
globalisation
they are to
faced by
SASOL
Organisations are trying to expand their
business to international market faces a lot
of complex situations and challenges.
Various challenges that occurred due to
process of globalisation in accordance
with SASOL are discussed below:
 Increased competition
 Incurring tariffs and export fees
 Payroll and compliance challenge
 Immigration challenges

Continue
 Evaluation of the significant impact of digital technology upon
globalisation
 Varied technological advancements of digital technology has greatly
impacted the process of globalisation. Advancements in digital
technology aids managers of SASOL in dealing with suppliers from
foreign countries and gets inputs at lower rates. Digital technology has
helped in enhancing connectivity among people which is a necessary
component for expanding business operations in international markets.

Evaluation of
strategic
challenges in
context of risks
and
diversification
strategies and
supply chain flow
 Organisations face many challenges and issues in order to expand their
business operations in international market. These challenges comprises
of increased competition, strict immigration laws of different countries,
payroll of human resources and many more. It is desirable for managers
of SASOL to face these challenges and should come up with ways to
resolve that.

Critical
evaluation of
global business
environment
comprising of
opportunities
and challenges
faced by
organisation
 It has critically assessed that global business environment is adversely gets impacted
due to globalisation practices of organisations.
 Opportunities that SASOL faces due to globalisation
 Constant modifications in technological advancements
 Compliance with all the environmental laws
 Comply with all the healthy and safety laws
 Challenges faced by managers of SASOL
 Political landscape
 unemployment and lowering purchasing power of people
 Dynamic social needs of people

Conclusion
 From the above report, it has been concludes that globalisation is a
broad concept that connects individuals on a massive basis. It poses
as an opportunities as well as challenges for companies. Varied
challenges that are faced by organisation are increased competition,
immigration issue and compliance of different legal laws

References
 Cuervo‐Cazurra, Á., Doz, Y. and Gaur, A., 2020. Skepticism of
globalization and global strategy: Increasing regulations and countervailing
strategies. Global Strategy Journal. 10(1). pp.3-31.
 Meyer, K. E., 2017. International business in an era of anti-
globalization. Multinational Business Review.
 Ng, H.S. and Kee, D.M.H., 2017. Entrepreneurial SMEs surviving in the era
of globalization: Critical success factors. In Global opportunities for
entrepreneurial growth: Coopetition and knowledge dynamics within and
across firms. Emerald Publishing Limited.
 Van Neuss, L., 2019. The drivers of structural change. Journal of Economic
Surveys. 33(1). pp.309-349.