SASOL: Analysing Globalisation Factors & Business Environment Impact

This report provides a comprehensive analysis of the key factors driving globalisation and their impact on SASOL's business environment. It includes a PESTLE analysis of SASOL, examining political, economic, social, technological, environmental, and legal factors influencing its operations. The report evaluates the impact of digital technology on globalisation and identifies the challenges and complexities faced by SASOL in navigating the global landscape, such as managing worker wages and cross-border taxes. Recommendations are offered to address these challenges, emphasizing the importance of conducting thorough research on local laws and regulations before expanding into new markets. The report concludes that globalisation plays a vital role in the growth of a company and highlights the importance of adapting to the changing global environment.

Global Business
Environment

Contents
 Introduction
 Analyse the key factors which drive globalisation
 PESTLE analysis with the reference to broader and global influences on SASOL
 Analysis of the key driving factors of globalization
 Evaluating the impact of digital technology on globalization
 Evaluating the challenges and complexities through globalisation in SASOL
 Recommendations to solve the above challenges
 Conclusion
 References

Introduction
Business environment is the sum total of all the
external and internal factors of an organisation
and which has a great impact on the operations of
company. It involves factors such as competitors,
customers, political, social, economic, legal and
technological. Globalisation is the procedure of
interaction between the companies and
governments in the worldwide level. The four
main drivers of globalisation that are considered
imperative are cost, market, competition and
government. The challenges of globalisation faced
by the firms are managing employee immigration,
loss identity of cultural, difficulties in global
expansion etc.

Analyse the key factors which drive
globalisation
 Globalisation involves the process of global interaction that has
caused a significant increase in communication and
transportation technology. It basically depicts the interdependent
of the whole world cultures, economies and populations that has
occurred by conducting the trade in services and goods, flow of
information and people. There are three types of globalisation
that are discussed beneath: -
 Economic globalisation:- It increases the interdependence of
economies all over the world through the growth of trading of
services, goods, capital and technology. This form of
globalization includes the globalisation of production which
refers to the collection of services and goods from a specific
source that benefits the company in context with quality and cost.
It also includes the globalisation of markets that depicts the union
of varieties of markets into the giant world marketplace(Ulucak
and et. al., 2020).

PESTLE analysis with the reference to
broader and global influences on SASOL
 It is a tool used by the company management team to examine the external environmental factors such as
political, economic, social, technological, environmental and legal factors that monitor the activities of the
company. SASOL uses the pestle analysis to acknowledge the effects of external factors, which helps them to
improve their productivity(King. and Boxall., 2019).
 Political factors:- This elements play a considerable function in figuring out the elements which could
effect SASOL Limited long time profit in a specific market or country. SASOL Limited is working in Major
Integrated Oil & Gas in greater than twelve number of international locations and reveal itself to exceptional
kinds of political surroundings and political risks. This organisation can deeply examine the below elements
prior investing in a specific country or market:-
 The analysis of political stability and the importance of Oil and gas sector in the economy of country.
 The examination of the risk by the invasion of military.
 The acknowledgement of trade regulation and tariffs must have with the company.
 The understanding of work week regulation in major integrated oil and gas of a specific country or market.
 The analysis of Anti trust laws in context with major integrated oil and gas.

Analysis of the key driving factors of
globalization
 The digital revolution:- The internet has made it easy
for SASOL to access the services and goods from
anywhere in the whole world. It has enable to transfer
out borderless transaction with the help of e-
commerce and internet banking.
 Cross border political influence:- A
research has shows that the developed countries are
influencing the economic and political developments
in developing countries. This enables the countries to
pile up by the developed countries.

Evaluating the impact of digital technology
on globalisation
 Digital technologies plays a important part in advancing of globalisation and its relationship
with business. It assist in creating the worldwide combination of various global market which
aided the organisation to look into into undiscovered market. Followings are the points related
to the influence of digital technology on globalisation are:
 Increase in the use of personal computers: The entry of windows-based PC entirely
transformed personal computing experience by eliminating the limit on amount of content
that an individual can acquire, change and distribute. It enabled the users to formulate their
own digital information and share the across the world. Moreover, the invention such as fax
machines and dial up modems have created a new platform that started a global information
revolution(Leal, P.H. and Marques, A.C., 2020).

Evaluating the challenges and complexities
through globalisation in SASOL
 Workers wages: - This is one of the most
disadvantage for the company like SASOL and
specifically in developed countries where various
services and unskilled labour are offered to the
developing countries. This becomes the reason
companies has to pay higher wages to their workers or
employees(Ahmed and et. al., 2019).
 Taxes across borders: - This element has a major
impact on the both business and the employees. Every
country has it own tax principles and authorities that
the SASOL must strictly follow in order to conduct its
business in foreign countries. The tax imposed on the
goods of SASOL increases its prices which moreover
has a directly impact on the sales of the company,

Recommendations to solve the above
challenges
To solve all the above problem the major thing SASOL must do is to conduct a deep
research of laws of the country in which it wants to expand its business. The company
should also analyse the labour law and legal compliance for employers in order for the
smooth functioning of the operations(Orekhovskaya and et. al., 2018). The problem of
high investment can be overcome by making an effective plan in finance section before
setting up the business in foreign country.

Conclusion
From the above presentation it has been analysed that globalisation plays a vital
role in the growth of a company. This presentation reflects that the key driving
factors that drive globalisation as well as the pestle analysis of SASOL in
context with the global influences in their operations. The analysis of key
driving factors on globalisation and the impact of digital technology is also
discussed on the above presentation. At last the challenges that is faced by
SASOL in expanding its business in foreign country with the solutions to
overcome from the problems are also discussed in this presentation

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