Global Business Environment: Strategic Analysis of SASOL Operations

This report provides an analysis of the global business environment, focusing on its influence on SASOL, a London-based energy and chemical company. It employs a PESTLE analysis to highlight political, economic, social, technological, legal, and environmental factors impacting SASOL's operations. The report discusses key drivers of globalization, including technology, political factors, and cost, and evaluates the significant impact of digital technology on global commerce, particularly its role in enabling SASOL to enter new markets. Furthermore, it critically evaluates the strategic challenges and complexities that globalization brings to SASOL, such as ethical business practices, public relations, regulatory and legal structures, and cultural identity. The report concludes with recommendations on how to overcome these challenges, including harnessing local market expertise, addressing cultural differences, managing resource limitations and supply chains, and collaborating with other markets. The document is available on Desklib, a platform offering a range of study tools and resources for students.

GLOBAL BUSINESS ENVIRONMENT

Table of Contents
 INTRODUCTION
 Analysis of key factors that drive global commerce and trade
 Strategic challenges faced by organization in global market
 CONCLUSION
 REFERENCES

INTRODUCTION
 Global business environment is defined as business that is operating on a global basis and operating
internationally.
 The report will highlight the global influence on organization SASOL with the help of PESTLE analysis.
 SASOL is a London based fast-growing energy and chemical company.
 An analysis on the key driving factors of globalization and evaluation of significant impact of digital
technology on globalization will be discussed.
 Moreover, the report will be based on the critical evaluation of the challenges and complexities that
globalization brings to SASOL.
 Also, recommendation on the remedies to overcome the challenges will also be highlighted

Analysis of key factors that drive global
commerce and trade
 Globalization refers to the global integration between people or businesses.
 Focus of globalization is on developing the countries which are poor and improve their standard of living.
 Following is the PESTLE analysis of the company SASOL:
 Political Factors
 Economic Factors
 Social Factors
 Technological Factors
 Legal Factors
 Environmental Factors

Key driving factors of Globalization
 Technology - Innovation in technology has helped in expansion of
the idea of globalization
 Political – As liberalization helps the business of SASOL to move
into new markets, tariff reduction, allowing the foreign direct
investment makes the operations of SASOL more capable of
operating into new markets.
 Cost – Cost is another important factor in the terms of global
business.

Impact of digital technology on Globalization
 Globalization in the context of businesses can be defined as trading between two global businesses.
 Digitalization has helped many markets like SASOL limited to enter into new markets and created opportunities
for new structures of business.
 It also impacted the landscape of the business.
 The firms operate in a way that embraces digitalization which further helps in the speedy internationalization.

Strategic challenges faced by organization in
global market
 Evaluation of complexities and challenges globalization brings to SASOL
 Globalization brings about both benefits and drawbacks as well.
 The mangers have to critical evaluate the complexities and challenges that globalization brings to SASOL
limited.
 To effectively achieve the goals, strategies have to be made that can operate globally and which can help to
develop operations around the world.

Challenges of Globalization
 Ethical business practices - SASOL limited is ensuring to follow the ethical
business practices properly in order to achieve goals.
 Public relations – consumers play a vital role in any business.
 Regulatory and legal structure – SASOL limited has to follow the laws and
regulations of the nation in which it is operating its business activities.
 Cultural identity – Different market have different cultural identity of their
own.

Recommendations on how to overcome the Challenges
 Harnessing local market expertise – Businesses which are entering into new markets have to have full
knowledge about the nation it is entering into.
 Cultural differences – Focus should not only on the geographical location but the cultural differences also play
an important role.
 Resource limitation and supply chains – Most of the businesses are hiring professional to outsource their
business and this requires a large amount of resource.
 Collaborating with other markets – Businesses tend to collaborate with local markets so that new markets can
be known effectively.

CONCLUSION
 From the above report, it has been concluded that Globalization has certain advantages and disadvantages.
 The report also concluded the concepts and introduction to globalization and illustration of its global influence
on SASOL limited with the help of PESTLE analysis.
 Different factors have different influence on the working of the business which was highlighted by using the
mentioned analysis.
 Key driving factors that have a major impact on the company and impact of digitalization on globalization has
been discussed.

REFERENCES
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 Autio and et.al., 2021. Digitalization and globalization in a turbulent world: Centrifugal and centripetal
forces. Global Strategy Journal. 11(1). pp.3-16.
 Brenner, B., 2018. Transformative sustainable business models in the light of the digital imperative—A global
business economics perspective. Sustainability. 10(12). p.4428.
 Cheng, Y.C., 2021. The Futures of Education in Globalization: Multiple Drivers. In Third International
Handbook of Globalisation, Education and Policy Research (pp. 15-37). Springer, Cham.
 Meskhi and et.al., 2020. Impact of globalization and digitalization on the efficiency of environmental
development of territories. In E3S Web of Conferences (Vol. 217, p. 06012). EDP Sciences.