Analysing Global Business Environment: SASOL's Challenges & Solutions

This report provides a comprehensive analysis of Sasol Limited's engagement with globalisation, beginning with an introduction to the concept of globalisation itself. It employs a PESTLE analysis to illustrate the broader global influences impacting Sasol, followed by an examination of the key driving factors behind globalisation. The report evaluates the significant impact of digital technology on globalisation, highlighting how it has transformed Sasol's operations by connecting its global sites and enhancing its competitiveness. Furthermore, it addresses the challenges and complexities that globalisation presents to Sasol, such as international recruiting and high tariffs, and offers recommendations on how to overcome these obstacles, including developing a global recruiting strategy and optimising supply chain costs. The conclusion emphasizes that globalisation has improved living standards and created new market opportunities, suggesting that by adhering to appropriate organizational structures and cultures, global firms like Sasol can achieve greater success in the international market; further study resources are available on Desklib.

Global Business
Environment

Table of Contents
1.An introduction to the concept of globalization.
2.An appropriate PESTLE analysis to illustrate the broader and global influences on an
organisation such as SASOL.
3.An analysis of the key driving factors of globalisation.
4.Evaluation of the significant impact of digital technology upon globalisation.
5. Challenges and complexities globalization brings to an organisation.
6.Recommendations on how such challenges can be overcome.
7.Conclusion
8.References
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3
Introduction
Globalization refers to import and export of products and services across the domestic border of
country. Sasol limited is a global firm dealing in Chemical and energy company was founded in
1950 and its headquarters are situated in South Africa. Sasol is a globalized firm as company is
operating in more than 33 countries effectively. Company contributing in decreasing employment by
creating huge working opportunities for people and also investing in health care sector for its
employees and also donating for social welfare.

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Pestle Analysis of Sasol limited
Political factors- Sasol have to follow political factors to
survive globally in different countries as if a country have
high tax rates than Sasol have to pay taxes as per the norms of
that country and also have to change in its business policies if
operating country does not allow it.
Economic Factors–Economic factors that can effect Sasol
ltd. economically such as foreign exchange rate it means
value of domestic currency in comparison to foreign currency.
Sasol should collect a complete information of foreign
exchange rate before expanding its business to global level.

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Continue
Social factor –Firm can be effected by following social factors
such as Demographics, Educational level, and entrepreneurial
spirit. Sasol need to understand that some societies encourage
entrepreneurial spirit whereas do not. So, Sasol should look for
those countries who encourage entrepreneurial spirit.
Technological factor –Sasol have to understand that which
country is more technological friendly and a more adaptive
power to adapt new technology as technology advancement
help Sasol to exist globally.

6
Continue
Environmental factor - Sasol is a oil & gas dealing
firm so environmental factors play important role in
oil & gas industries. Sasol should understand the
climatic conditions and then move its business to
climate friendly country as per the oil & gas industry
requirement.
Legal factors –Sasol have to enter in these types of
markets carefully because it can lead to stealing of
companies confidential information such as

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Key Driving
factors of
globalization
• Cost drivers Cost drivers include currency fluctuation,
rise and sit in products prices then it will effect company
globally. So Sasol have to study deeply about cost drivers
and than choose appropriate place to do business.
• Market Drivers –Global market is a better way to
expand business globally customers are high demanding
now a days so use of global marketing channel is a smart
decision. Daily new trends are coming into market so
Sasol have to find a market place which is stabilized as
per the Sasol's requirements.

8
CONTINUE
• Competitive drivers –Entrance in competitive
market against various competitors is very
difficult. Sasol have to build strategies as per
market requirement and then think about hitting
the ground.
• Environmental Drivers- Over exploitation of
natural resources leads to depletion of resources.
Sasol should maintain products qualities in such a
way that it effect environment very least.

9
Impact of digital technology upon globalization
• Digital technology has change the scenario of
doing international business across the domestic
boundary of country. Digital technologies decrease
the cost of international transactions
• They have created so many digitalized platforms to
buy products from international market so it
decreases the cost of transportation and
communication.

10
Impact of digital technology upon globalization
• Patent and copyright technology also play a crucial role in
encouraging globalization because the company who
having patent or copyrights can easily exploit foreign firm
in global market without much competition.
• Digital technology rises more faster than any innovation in
global market. Development of technology has
revolutionized pattern of work, leading to societal changes
a wider range by more focusing on technological
development world can increase the soft skills of people
across the globe.

11
Continue
In regards of Sasol, Digital technology or innovation
transformed company from its traditional roots.
Earlier majority of people had to wait for response of
global application but now after the development of
digital technology Sasol combine itself to everything
on a one IP connected platform. Company linked
itself to 68 sites worldwide, by this it is more active,
approachable and competitive in global world.

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Challenges and
Complexities
globalization brings to
an organization
• International recruiting- International recruiting is a major
challenge in globalization. Recruitment across borders is a
difficult task for HR teams.
• High Tariffs and Export fees- Sasol is dealing in Chemicals so
these kind of products require extra care which will result into
high transportation cost.
• Loss of cultural identity – Globalization has made easy access
to foreign country.. Sasol have to ensure that it should not lose
its home countries cultural identity otherwise it will lose its
global existence.

13
Recommendations on how to overcome
from globalization challenges
• Develop a Global recruiting Strategy- Sasol can overcome
from a challenge of International recruiting by creating a
global recruiting strategy. Company should not start
directly managing a global team until it does not decide
that exactly why and how company hire workers.
• Neglecting of mediators - To reduce high tariffs and
export fees it is necessary for Sasol to neglect mediators
in reaching out international market and if company have
a good relations with its mediators so company should try
to lower the costs across the whole supply chain.

Conclusion
It is concluded that Globalisation has changed the living standards of people almost in all
countries. It enriches the income growth of the people around the globe. It also gives new
opportunities for new markets as there are wide range of people purchasing the product that can
ease the daily life. Many countries gives an job opportunity for the immigrants around the world.
Further more by following organizational structure and culture, global firms can lead to its
higher growth and success in international market. 14

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References
• :Zajda, J.I. and Majhanovich, S. eds., 2021. Globalisation, cultural identity and nation-building:
The changing paradigms (Vol. 5). Dordrecht: Springer.
• Leal, P.H. and Marques, A.C., 2021. The environmental impacts of globalisation and corruption:
evidence from a set of African countries. Environmental Science & Policy, 115, pp.116-124.
• De Marchi, V., Di Maria, E., Krishnan, A. and Ponte, S., 2019. Environmental upgrading in global
value chains. Handbook on global value chains.
• Zajda, J., 2021. Globalisation and education reforms: Creating effective learning environments
(Vol. 25). Springer Nature.
• Amah, O.E., 2019. The Origin and Development of Globalisation in the World. In Globalisation
and Leadership in Africa (pp. 11-23). Palgrave Pivot, Cham.
• Leal, P.H. and Marques, A.C., 2021. The environmental impacts of globalisation and corruption:
evidence from a set of African countries. Environmental Science & Policy, 115, pp.116-124.

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