Analyzing Globalization's Impact on SASOL Ltd: Challenges & Strategies

This report provides a comprehensive analysis of the global business environment impacting SASOL Ltd., utilizing a PESTLE framework to examine political, economic, social, technological, legal, and environmental factors. It identifies key drivers of globalization, evaluates the significant impact of digital technology, and critically analyzes the challenges and complexities that globalization brings to SASOL, such as loss of cultural identification and mobility of jobs. The report concludes with recommendations for SASOL to overcome these challenges, emphasizing the importance of acknowledging diverse cultures and managing entry fees effectively. The discussion highlights globalization's role in achieving competitive advantage and emphasizes the need for strategic adaptation in the interconnected global market.

GLOBAL BUSINESS
ENVIRONMENT

TABLE OF CONTENT
 Introduction
 PESTLE analysis to illustrate broader & international influences on company SASOL
 Analysis of key driving factor of globalization
 Evaluation of significant impact of digital technology upon globalisation
 Critical analysis of challenges & complexities globalisation brings to SASOL
 Recommendations to overcome the challenges
 Conclusion
 References

Introduction
 The concept of globalization is being refereed as a
procedure of enhancing activities within global market
which interlink the company's operations & trade with
large focus on exchange of culture . In general context the
concept of globalization enhances the manufacturing of
products as well as services of business within
multinational market. This develops interdependence of
global economics, culture carried out by different nations
having cross-cultural boarders which deals in technology,
information, offerings, people and many others.

PESTLE analysis to illustrate broader & international influences on
company SASOL
The framework of PESTLE is being defined as a tool for analysing the different external factors which
develops an influence upon the organization so to perform their business operations in effective manner as well as
properly with an aim of high growth of the organization. With respect to SASOL Ltd. the PESTLE analysis is
conducted below:
 Political factor: The political factor plays an important role upon the business profitability of an organization.
This coves regulation upon tax, condition of political stability or instability, and several others.

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 Economical factor: The economical factor of external environment is related with certain aspects such as
country's Gross Domestic Product, purchasing power, growth rate and many others. With respect to SASOL
Ltd.
 Social Factor: The social factor includes beliefs, values, desire, perceptions and several others which are
concerned with the society where the company is operating its business. With respect to the business of SASOL
Ltd., the company focuses upon the national population which shares the values and beliefs along with a
behaviour.

Continue.,
 Technological factor: With respect to the technological aspect of external factors, it is directly concerned with a business
in order to function their operations with full effectiveness and in proper manner so can focus upon the technological up-
gradation which is highly essential in present world.
 Legal factor: The legal factor within an external environment talks about the legal regulations as well as laws which are
being imposed for the security as well as safety of the customers and the organizational workforce so to retain the
workforce for long term in their company.
 Environmental factor: The environmental factor is concerned with the rules as well as regulations for the environmental
safety in context to safeguard it from those what are imposed by related authority.

Analysis of key driving factor of globalization
 Cost: The shows that the cost varies from country to country & the international companies focuses upon
acquiring advantage of such factor. This assists in enhancing the opportunities which builds economies of scale
at international level with the assistance of which SASOL Ltd. has the opportunity of generating higher profits
at lower cost in manufacturing or in other element.
 Market: This is categorized as another factor which drives the business for globalization that creates huge impact
upon business from last few decades. The factor provides a scope to the domestic market where a company is
leading with huge opportunities to have their expansion at international level.

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 Environment: This driving force examines the environmental aspect that a organization is required to consider while
operating the company's functions as well as activities in order to attain positive results. This elaborates different forms
of environmental components like social factor, political factor, technological factor, legal factor and others which can
create an influence upon the global business
 Competition: Through the enhancement of globalization in the world of business where there is a presence of huge
competition at global market. Within the multinational market, the aspect of inter firms competition is required to be
enhanced which forces the business to perform at international level.

Evaluation of significant impact of digital technology upon
globalisation
 The advancement within technology is extremely considered as the ease of globalisation. Due to which the huge
utilization of digital technology in globalization is enhancing regularly and on the other hand assists the business in
smooth functioning of its operations. It is being analysed that the concept of digital technology minimises the
expenses of communication as well as transportations that assists the business company in order to undergo easy
availability of raw material with high effectiveness within it. In context to SASOL Ltd. the utilization of digital
technology assists in enhancing company's connectivity multinational organizations with aim of strong functioning as
well as attainment of targets within time with high level of effectiveness as compared to present operations with
respect to sustainability of business in multinational market.

Critical analysis of challenges & complexities globalisation
brings to SASOL
 Loss of cultural identification: This is taken as a crucial challenge which is being
faced by the business company during the time of globalization of an organisation. In
respect to SASOL Ltd., the company is operating at global level and thus, faces huge
challenges concerned to the understanding the various culture.
 Entry fees: The venture SASOL Ltd. has a focus upon conduct of business at functional
level through exchanging of different fees such as export, import or franchising with
the collaboration of regional business firms.

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 Mobility of Jobs: Through the improvement within globalization, the
firms are moving towards the developed nations with their production
units which creates a disappointment among people as this results
into loss of job which might be a source of livelihood for some
people.

Recommendations to overcome the challenges
 After examining the complete objective related to the concept of globalization it is being analysed that
there is an existence of numerous challenges within it. In respect to this it is important to have certain
recommendations for the organisation SASOL Ltd. In order to overcome with such challenges in
adequate manner so that company can earn good profits and enjoy success. In order to overcome with
such challenges within a scope of globalization, a manager from SASOL Ltd. is required to pay its
focus upon acknowledging beliefs as well as cultures in different country where they are operating with
their functions and selling their product and services.