Analysis of Global Business Environment for SASOL Limited Company

This report provides an analysis of the global business environment with a focus on SASOL Limited, a company operating in the energy and chemical solutions sector. It begins with an introduction to globalization and its importance for business expansion, followed by an examination of key factors influencing the global business environment. The report analyzes market and cost factors, and assesses the impact of digital technology. It then delves into strategic challenges, including a PESTEL analysis of political and economic factors affecting SASOL Limited. The report also highlights globalization challenges, such as cultural differences, and offers recommendations for SASOL Limited to succeed in the global market. References are provided to support the analysis.

Global business environment

 Introduction
 Concept of globalization
 Analyses key factors
 Impact of digital technology
 Strategic challenges
 Globalization challenges
 Recommendations
 References
Table of content

 It is the aim of every business to work in to go global environment.
Globalization is necessary for Business expansion and growth. Global
environment is basically more particular and specific related to the home
country. There are various components of global environment which affect
positively or negatively to business operations. These factors are known as
Technology, climate politic legal regulations and economic crisis. Working
into Global contact leads to many opportunities, International brand name
Business expansion and many other relations. This report is based on
SASOL Limited; it is one of the growing company works for energy and
chemical solutions which has their headquarters in South Africa
Introduction

 Globalisation is termed as a most integrated and
required aspect for every business organisation. It is
mainly coherent by exchange of goods and services
into international market and different countries.
There are a number of factors that affect Global
Business and its functioning into the large
competitive environment. Basically globalisation is
in for every business due to having number of
opportunities and foreign reputation which leads to
create a strong brand name and more profitability
into long run. A business could look for presenting
their services in two different countries so that they
could enable more profits and undertake those
customers towards their organisation. There are
many firms who involved their business in to global
context in order to create job opportunities, take
advantages of resources and boost capital market.
Concept of globalization

 Market Factor: one of the best factors that contribute effectively in
globalisation is the market. A business should take high market share by
grooming into different countries. Global market leads to results in
global opportunities and expansion at vast level. SASOL Limited could
easily gain market share by operating their energy solutions into
different countries and fulfil the requirements of customer. One of the
best drivers for globalisation is to market the product and services as
per customer needs in order to gain success and efficiency.
 Cost Factor: Cost is the major factor for business to maximize it and
use into efficient manner. Different countries enable different cost
structure as per the resources availability. So that, SASOL limited needs
to effectively analyse overall cost of their production and sale procedure
in to different countries so that their profit would not get this balance. In
globalisation, shipping charges would be a high cost and expense which
must be lower down by taking effective shipping policies.
Analyses key factors

 In the context of global world, Technology and
digital empower are rapidly Rising for business as
well as customers. It is the most affected and
significant for the driver of globalisation. In
today's digital world, organisation need not to
operate outlet in two different countries as it
becomes more easiest way bi enable selling
through digital sources and serve the global
environment simultaneously. So that this
technological advancement leads to have many
impact on business and their profitability. Another
hand, Technologies create opportunities to
promote and market the product and services in
order to reach Global customers. Also it benefits to
analyse different demands of customers by directly
connecting with them through digital
Technologies.
Impact of digital technology

 PESTEL -
 Pestle analysis is a Framework which guide and create a path
for better performance of business. It would be done by analysing
the factors of analysis which highly impact on business
environment and their working operations. Analysing all the factors,
SASOL Limited could easily amplifies their Strategies and plans in
two more effective manners which reduce this in uncertainty:
 Political: The SASOL Limited is already establishment their
business into different countries like Europe and Asia. Every
country consist different political interference is in terms of
taxation, terrorism and political decisions which could create
negative impact on organisation. So that, form a limited must
analyse all the political interference is and work in accordance with
the relevant influence on business.
 Economical: The factor is related to the economic condition
of country. It includes the influence of business practices on
demand and supply inflation rate and money flow into the economy.
For SASOL Limited, they are mainly affected by employment
grades which get enhance into UK by 4.4% for the age above 25
years. So that it affect the SASOL Limited by rising into the wage
rate that could minimise their profit level.
Strategic challenges

 There are a lot of challenges and issues faced during the planning
and practical phase of global business. In global aspect, perfection
in strategies and human resources is the most vital as they are only
factors on which success is depend upon.
 Cultural differences: different countries have different cultures and
their values, this effect the communication between individual and
set a language barrier among them. This is the most critical
challenge that must be resolved while practicing into Global
context.
Globalization challenges

 By evaluating all the above aspects and challenges for globalisation, it is
recommended that SASOL Limited must formulate Strategies and the
whole planning to analyse their market in which they are looking forward
for globalisation. It is also a challenge to choose an effective market so
that the product and services get some value by customers. So that, the
company must analyse the entire customer demands and eliminate cultural
differences by providing effective training to their employees so that they
could eliminate the gap of language barrier. Also they need to create job
opportunities, undertake available resources and make contact with
suppliers as well as customers so that they would not like with any
material during the production procedure. Remove the Economics of scale
by contributing in demand and supply of country. Also it is necessary to
identify the needs of customers by segmenting potential individuals under
the demographic, psychological context.
Recommendations

 Abugre, J.B. and Anlesinya, A., 2019. Corporate social responsibility and
business value of multinational companies: Lessons from a sub-Saharan
African environment. Journal of African Business, 20(4), pp.435-454.
 Banker, D.V. and Bhal, K.T., 2020. Understanding compassion from practicing
managers’ perspective: Vicious and virtuous forces in business
organizations. Global Business Review, 21(1), pp.262-278.
 Bing, N.S. and Amran, A., 2017. The Role of Board Diversity on Materiality
Disclosure in Sustainability Reporting. Global Business and Management
Research, 9(4s), pp.96-109.
 Bogatyreva, K. and Shirokova, G., 2017. From entrepreneurial aspirations to
founding a business: the case of Russian students. Форсайт, 11(3 (eng)).
 Bong, A. and Premaratne, G., 2018. Regional integration and economic
growth in Southeast Asia. Global Business Review, 19(6), pp.1403-1415.
 Chatterjee, C., 2020. Board quality and earnings management: Evidence
from India. Global Business Review, 21(5), pp.1302-1324.
 de Bakker, F.G., Rasche, A. and Ponte, S., 2019. Multi-stakeholder initiatives
on sustainability: A cross-disciplinary review and
References