Drivers and Challenges of Globalization: Sasol Company Analysis Report

This report provides a comprehensive analysis of the Sasol Company within the context of globalization. It is divided into two parts, with Part 1 focusing on a PESTEL analysis of the political, economic, social, technological, environmental, and legal factors impacting the company's operations. Key driving factors of globalization, including competition, sales demand, and brand value, are examined, along with the significant role of digital technology. Challenges and complexities brought by globalization are also discussed. Part 2 delves into strategic models like the McKinsey 7S model, cultural dimensions (Hofstede), and the company's ethical and sustainable practices. The report explores strategic decision-making processes, global expansion routes, and offers recommendations for the company's future growth. The report aims to provide a deep understanding of the global business environment and the strategic considerations for companies operating in it.

DRIVERS AND
CHALLENGES FOR
GLOBALIZATION PART 1
IMPACT AND
STRATEGIC DIRECTION
PART 2
Table of Contents

Part 1.....................................................................................................................................................3
Part 2.....................................................................................................................................................6
Introduction and purpose...................................................................................................................6
McKinsey 7 S model.........................................................................................................................7
Company adopted operations in global market..................................................................................8
Hofstede dimensions of culture.........................................................................................................8
Evaluation of ethical and sustainable factors.....................................................................................8
Strategic decision making..................................................................................................................9
Global expansion route......................................................................................................................9
CONCLUSION.....................................................................................................................................9
REFERENCES......................................................................................................................................9
INTRODUCTION

Globalisation is defined as expanding the business operations at different international
locations. This report is based on the case study of the Sasol Company in context to
globalisation. PESTEL Analysis will project under this presentation. Key driving factors will
also analysis under this project. Evaluation about the significant impact digital technology
has created over the business functions will also demonstrate under this project.
Part 1
PESTEL ANALYSIS
Political factor
Political factor comprises with the political situation of the country. United Kingdom
hold a very stable political situation that allow and favour the government to sustain. The
sustainable and stable government favour the corporate sector to formulate long term policies
that can favour and empower the business ventures to meet business objectives. Also the
political stability derives the company to develop the long term policies and strategies to
approach the business growth in the best way possible. The management at the Sasol
Company get to support the business objectives with long term policy making of the business
enterprises. The political situation in United Kingdom is very stable and progressive in nature
that favours and empowers the business unit to develop the strong policies that can sustain for
longer time period. In context to the business circumstances this is an important part of area
that can favour the business organisation with support of best level of policy making and
strategic direction that can empower the best form of strategic growth and development
possibilities of the business organisation.
Economic factor
Economic factor is among the crucial business environment factor that strategically
allow the company to form the best level of business growth and development strategy. This
PESTLE Analysis factor comprises with the per capita income of the people in country and
all other elements that can support and bring the best possible results in favour to the business
organisation. The per capita income of the people based in United Kingdom is very strong
that favours and empowers the people to generate the best possible growth oriented
opportunities to support the best level of economic growth in business. The inflation in the
economy is also supported with the monetary policy formulated by the government that
derive the best possible results in favour to the business organisation. This can indicate that

the economic factor drive the best level of policy formulation as this influenced the pricing
policy of the Sasol Company that fundamentally influenced all aspects of the policy making
of the business organisation.
Social factor
The social factor comprises with the main element part of the PESTEL Analysis.
Sasol Company develops all its products based on the needs and requirements of the people
of country. The social factor comprises with the fashion, trends, preferences, choices of the
people based in the country. This is essential for the business enterprises to sustain a good
flow of operation and function that can cope up with the social factor of the business
environment.
Technological factor
The technological factor consume with the technical aspect of the society. The United
Kingdom as a country is technically very rich and advanced. This becomes more progressive
for the business venture to enrich the technical advancement and development of the business
unit in order to approach the best possible growth and development of the business
enterprises. The technical development advancement support the Sasol Company to cater the
service to potential customers of organisation over the internet only.
Environment factor
The management of the Sasol company try to support the overall business practices i
such manner that eco friendly perspectives could have been achieved by the company.
Company has also been involved under various corporate social responsibilities that also
empower the company to approach the business objectives in the best way possible. The
involvement of the Sasol Company in different social responsibilities can bring the best
possible results and outcomes in term of brand value and all other elements in favour of the
business organisation.
Legal factor
The legal factor comprises with all laws and legal regulations applicable over the
business operations of Sasol Company. The legal regulations are mandatory in nature that
needed to fulfil in any given business environment situation.

Key driving factors of globalisation
Competition
Competition becomes a huge factor in respect to the globalisation. The competition
makes it challenging for the business entity to enrich the business objectives. When it comes
to Sasol company become globalised this become more challenging for the business entity to
entertain all its business operations. International market is more competitive in nature as all
top level of companies conducts its business operations in the market. This makes it more
challenging for the business entity to deliver the business transactions in the best way
possible.
Sales demand
International market offer more sales demand and product requirements. This make it
more essential and significant for the business unit to approach the sales of company in such
manner that the organisation get to deliver its business objectives in the best way possible.
The international market offers more significant level of sales and product demand so that
Sasol Company get to approach its business objectives in the best way possible.
Brand value
International market offer more progressive level of brand value that can support and
offer the business organisation and entity the best form of development and growth in the
market. Brand value becomes the key basis for the company to approach the success in the
market.
Significance of digital technology in globalisation
Digital technology support and favour the business unit to channelize the business
operations. Digital technology also favour the Sasol Company in delivering the customer
services. Digital technology allows company to offer e-commerce sales. Digital technology
further empowers the Sasol Company to solve all issues and problems face by the potential
and target customer associated with the business entity. The role of digital technology is also
in developing the products and services part of the business model of Sasol Company.
Challenged and complexities globalisation bring

Globalisation bring more competition on the surface. Globalisation improve the
customer expectation in respect to products and services cater by the business venture.
Globalisation offers more and advanced quality of product and services part of the company.
Globalisation associate more progressive mindset in term of leadership and culture of
company.
Recommendations
Sasol Company can focus over product development practices. Company should also
give emphasis of bring new and modern resources that can support the best level of growth
and development of the business venture. This is recommended that Sasol Company should
also offer competitive pricing practice or strategy to take a competitive edge in respect to the
international market.
Part 2
Introduction and purpose
This report is all about understanding the important and significance of the
globalisation in favour to the business organisation. This part of the report will discuss about
the elements and practices like McKinsey 7 S model and its significance. Cultural dimensions
will also understand under this project. Decision making and risk management practices will
also precisely implement under this project.
McKinsey 7 S model
The Mckinsey 7 S Model is a strategic formulation model that supports the best level
of strategic growth and development in favour to the business entity. This model comprises
with the following elements that can bring the best possible growth and development
possibilities in favour of the business organisation.
Structure: is among the key aspect and area part of the business entry. The Sasol Company
contain a very diversified structure that can bring the best possible Company structure allow
the Sasol Company to achieve a proper control over each functional area that can bring the
best possible results in favour to the business organisation (Bertaut, Bressler and Curcuru,
2020). The structure is diversified that allow each function to be managed in the best way
possible.

Systems: of the Sasol Company is such advanced that company has tried to keep all its
operations and practices associated with the information technology. This is important for the
business entity to approach the operations digitally.
Style: leadership of the company is progressive in nature. This allows the company to enrich
a good and healthy flow of operations in favour of the business organisation. This is essential
for the company to utilise the progressive nurture of leadership that could allow the best
growth and development opportunities in favour to the business organisation.
Staff: are the key part of the business model. Company always channelizes the employee
development campaign involve the training and all other campaigns. This makes it more
significant in respect to the business organisation to approach the staff element in the best
way possible.
Skills: company has always focused to grow the skill of its employees. This is important for
the company to approach the skill and polish the respective area to achieve the business
objectives.
Strategy: is another key element part of the model. The strategy lie digital marketing,
competitive pricing and many such allowed the company to achieve all its business
objectives.
Company adopted operations in global market
Sasol Company is a globalised organisation that offers operations at a global level.
This is essential for the business entity to approach its operations in the best way possible.
Company has tried to focus over advancing its business practices and product quality that can
provide a strategic and competitive edge in the international market (Cherunilam, 2021). This
makes it more significant for the business venture to approach all its operations strategically.
The allocation of the best level of quality products and the best form of customer satisfaction
that can offer the best level of overall growth and development of the business venture. In
context to the international market this is essential for the company to constantly focus over
product development practice to deliver the business objective in the best way possible.
Cutting down competition in market become a huge challenge for the business unit especially
in context to the international market. In such a situation this is essential to keep on focusing
towards these aspects of the business.

Hofstede dimensions of culture
The hofstede cultural dimension model allow the company to motivate the culture of
company in such way that company can take a strategic edge over the other competitors
available in market. The power distance index is a model that company follow to improve the
cultural values of company (Fabuš, 2017). This involves establishing different designated
positions in company and allocates power to each individual employee in company. This
model could support the Sasol Company i developing its culture more progressively. This is
important for the business unit to develop or establish the culture to be more progressive in
nature so that all areas of the business could been achieved by the company.
Evaluation of ethical and sustainable factors
Ethical and sustainable factors are the core aspects of the business environment. This
is important for the Sasol Company to develop all its elements and factors in more ethical
manner. It is essential for the company to ethically grow and development its business
practices (Heisbourg, 2018). Ethical values at the company are strong enough to deal with the
all areas and needs or requirements of the business venture. Sustainable practices are based
on product development and other such areas that can offer the best level of growth and
development of the business venture.
Strategic decision making
The decision making at the Sasol Company is more strategic in nature. This is
important and essential for the business entity to develop the strategic choice when it comes
to making the business decisions. This is important and essential for the company to
formulate the strategic decision making approach to take on the best level of business
decision making. In context to the global situation company try to minimise the risk facto by
catering the best level of customer expectations against the products and services of the
company.
Global expansion route
Business expansion is done with support of certain techniques like directly open up
store of company or to acquire other company already delivering its business operations in
the same market. Also the route like company can issue its franchise to stakeholder in the
market (Humphreys, 2017). All these are the different routes that are available with the
company in order to turn the business more internationally. It is important that the company
chose the right technique for the business expansion.

CONCLUSION
Globalisation is all about expanding the business of company in more international
location or market place. This is essential for the company to approach the globalisation in
the best way possible. This is necessary for the company to focus over the advancement of its
cultural values. This is equally important for the company to select the right route to approach
success in the international market.
REFERENCES
Books and Journals
Bertaut, C., Bressler, B. and Curcuru, S., 2020. Globalisation and the reach of multinationals:
implications for portfolio exposures, capital flows, and home bias. IFC Bulletin,
(52).
Cherunilam, F., 2021. Business environment. Himalaya Publishing House Pvt. Ltd.
Fabuš, M., 2017. Current development of business environment in Slovakia and Czech
Republic. Entrepreneurship and Sustainability Issues. 5(1). pp.127-137.
Heisbourg, F., 2018. War and Peace After the Age of Liberal Globalisation. Survival. 60(1).
pp.211-228.
Humphreys, K., 2017. Avoiding globalisation of the prescription opioid epidemic. The
Lancet. 390(10093). pp.437-439.