Sasol Company: PESTLE Analysis, Globalization Drivers, Challenges

This report provides an overview of globalization and its impact on businesses, focusing on Sasol Company, an energy and chemical organization based in South Africa. It defines globalization, discusses its interconnectedness, and presents a PESTLE analysis of Sasol Company, examining political, economic, social, technological, legal, and environmental factors influencing its operations. The report highlights key drivers of globalization, such as the digital revolution and technological changes, and explores the challenges and complexities faced by organizations in a globalized environment, including international recruiting, payroll compliance, language barriers, and cultural differences. Recommendations are provided for Sasol Company to analyze external and internal opportunities and threats, leverage strengths, and convert weaknesses into strengths. The report concludes that globalization has made the world more interdependent and connected, emphasizing the importance of understanding its dynamics for business success.

UNIT 18 GBE PARTS 1

INTRODUCTION
• Globalisation can be defined as the different customs as well as the habits which is hared
among the local communities which has the different procedures and beliefs.
• This is basically the term which involves interconnectedness of the people and the
businesses in all around the world which eventually leads to the global political, cultural as
well as economic integration.
• SASOL Company is energy and chemical organisation which is located in Sandton, South
Africa. This company was formed in year 1950 and this company is considered as the largest
taxpayer in South Africa.

PESTLE ANALYSIS OF SASOL COMPANY
• Pestle analysis is the tool or technique which is used by the companies to track and analyse
the environment in which they are operating in or are planning to enter.
• Political Factors: These factors has the large impact on the long term profitability of
SASOL company as this company is engaged in integrated oil and Gas in many parts of the
world.
• Economic Factors: The country having the moderate inflation rate will allow the SASOL
company ton run their business effectively. This inflation rate allows the business to grow as
well as work positively for increasing the confidence of consumers.

CONTI…
• Social Factors: The younger population of the
country is very beneficial for the SASOL
company as this enables them to build the larger
base of the consumers from this population.
• Technological Factors: The country has very
strong and advanced infrastructure as well as
technology as there is very higher level of
technological and development in the country.
• Legal Factors: There are strict regulations and
norms made by the government on the health
and safety of the employees at the workplace.

KEY DRIVING FACTORS OF THE
GLOBALIZATION
• Digital revolution: Internet made it very easy to
access services and goods produced from anywhere
across the world. Nowadays it is easy to buy
products through mobile phone and order online.
• Technological changes: sustained and rapid
technological change reduce cost of the
transmitting.

Significant impact of digital technology upon
globalization
• Digital technologies are basically electronic system,
derives, tools and resources that store, generate or
process data. Digital platforms are social media
(Instagram, Facebook, YouTube, twitter etc.), or
multimedia or mobile phones and many more.
• Digitization changes economics of the globalization
in different ways. Thus, the digital platforms is
become global in scope, as they are driving low cost
of the cross border transaction and communication,
and also allow company to connect with the supplies
and customers in any countries. By digital technology
company can easily communicate with the different
nations.

CHALLENGES AND COMPLEXITIES OF
GLOBALISATION TO THE ORGANISATION
• International Recruiting
• Payroll and compliance challenges
• Management of employee immigration
• Language Barriers
• Cultural Differences
• Tariffs and export fees

Recommendations
• The SASOL company should analyse external and internal opportunities and threats as
business is globally established, so they have to analyses.
• Company should grab opportunities through the best use of their strength and the
competencies or company can convert their weakness into strength. Customers and
market analysis are done before expansion.

CONCLUSION
• From the above report it has been concluded that the globalization is term that is used to
describe how technology and trade have made global into more interdependent and
connected place. The above report illustrated the PESTLE analysis of the company and also
cove the key drives factors of the globalization.

REFERENCES
• Bohn, T., Brakman, S. and Dietzenbacher, E., 2018. The role of services in globalisation.
The World Economy, 41(10), pp.2732-2749.
• Burlacu, S., Gutu, C. and Matei, F.O., 2018. Globalization–pros and cons. Calitatea. 19(S1).
pp.122-125.
• Cuadros, A. and Ordóñez, J., 2020. Globalisation: Recent traits and challenges. The World
Economy, 43(3), pp.530-533.
• Flassbeck, H. and Steinhardt, P., 2020. Globalisation and Digitisation—The Challenges of
Our Time. World Scientific Book Chapters, pp.1-52.
• Koos, S., 2022. Digital Globalization and Law. Lex Scientia Law Review. 6(1).