Global Business Environment: Influences on SASOL's Operations

This report provides a comprehensive analysis of the global business environment, focusing on the energy and chemical company SASOL. It explores how operating in a global market influences an organization's culture, function, and structure. The report examines the impact of sustainable and ethical globalization on various organizational functions, evaluates effective decision-making processes in a global context, and determines different routes to internationalization, including associated barriers. The analysis covers factors such as free trade, FDI, cost efficiency, market saturation, technological advancements, and competitive pressures. It also addresses challenges like delays, language barriers, and the importance of understanding local markets and cultures. The report highlights the significance of political, economic, social, technological, environmental, and legal factors and their influence on global business operations. The report concludes by emphasizing the importance of strategic planning, market understanding, and ethical standards for success in the global market.

Global Business
Environment
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK...............................................................................................................................................3
P3 Explain how operating business in global market will influence the culture, function and
structure of an organisation....................................................................................................3
P4 Evaluate the influence of sustainable & ethical globalisation on various functions of
organisation............................................................................................................................5
P5 Evaluate the various ways decision making can work effectively in context of global....7
P6 Determine the various routes to internationalisation on organisation may adopt, including
the main barriers.....................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Main objective of this report is to better understand the concept of global business
environment. If an organisation wants to achieve higher growth and success they are require to
expand their business at global level. But expanding business at global level is not an easy task a
business will face various challenges while operating their business at global level. Global
business environment in different sovereign countries, with various exogenous factor to the
home environment of the organisation, it will influencing the decision making on resources use
and capabilities (Allyson and Denslow, 2019). On the other hand global environment is
uncontrollable local and international interactions which will influence the business operations of
an organisation. It will include various factors such as political, technological, economics,
culture. It was analysis that global business will lead to high level of competition among
business. When an organisation will enter into the foreign market they need to compete with
local business in that country. For this report SASOL LIMITED Company is taking into
consideration. It is an integrated energy and chemical company which is based in the Sandton,
South Africa. It was formed in 1950 and first developed by German chemists and engineers in
the early 1900s. More than 30100 numbers of workers are working with company. This report
will include the influence of globalization on organisational governance & leadership structure.
Other than this it will include the influence of ethical & sustainable globalisation on functions of
organisation, various way of decision making, and different routes to internationalisation of
organisation.
MAIN BODY
Task 1
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To increase the interconnectivity among the different countries and cultural exchange along with
various benefits and challenges. In order to expand the business at global level business entities
have to face various challenges and short out with that with effective strategies SASOL limited.
Is the energy and chemical based company this was formed in South Africa, this company is
having presence in different countries and its key strategy is to continue the international
expansion. In this report analysis of the globalization driving factors is done along with the brief
analysis of challenges and complexities arise during the globalization.
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Free trade- this is the international government policy of participating countries which facilitates
the barrier free import and exports of product and services. Southern Africa is having free trade
policy which four countries (Botswana, Lesotho, Namibia, and eSwatini), which is known as a
South Africa customs and union (SACU). South Africa is having negotiated agreement with
European free trade union what is the further more important driver of globalisation. So that is
important to consider these policies in each and every business plan development related to
international expansion.
Custom and market unions- these are the types of trading blocs which is involving the
government policy related to obstacles free movement of goods and services along with labour
and capital. And these are some important drivers which has to be considered in the business in
order to make effective expansion plan and strategies.
Horizontal FDI- this is a type of direct investment among the participated or industrialized
countries, due to which trade barriers is can be less and get easy access to the local market and
resources.
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Vertical FDI- this is the type of direct investment among the multinational which involves the
processing and operation management at the country where it can be done in a lowest cost.
Conglomerate FDI- this is the type of foreign direct investment through which company of home
country invest in a totally different business in foreign country.
Platform FDI – this is a type of foreign investment for business operations and processing from
where output transport to the third country.
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Cost- cost efficiency of goods and services and resources is different in all countries and in order
to make higher revenue by leading from the home country to the foreign country organisation
can make the utilisation of the factor. This is the main influencer to expand business at global
level for getting the benefits of different currency values.
Market- due to the higher saturation of domestic market the growth and development
opportunity is low in the domestic market, which what is influencing the organisation to use the
only remaining option which is globalisation. To overcome the challenges of saturation
globalisation is a way which is used by the most of organizations.
Environment- there are some important environmental factors which can be considered as a key
drivers of globalisation, such as technology and political practices. Higher development in the
information technology is influencing the globalisation of business by e commerce strategies and
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techniques and economic integration by political practices is the key driver which influence
international growth of business entities by supporting and preventing at different ways.
Competition- due to the high renovation and technological development business entities are
now becoming very competitive and make the steps to word international development for
higher revenue and this type of business competition is influencing the business entities two step
towards the globalisation and meet competitive edges. To mitigate the competitive rivers this is
the most affecting strategy to choose globalisation.
This is reducing the cost of extra transport by helping to present the products and services at E-
Commerce level due to which organisation just have to make the selective transportation
activities for resources collection and project delivery. In contact to the global Business
information technology helps to monitor each and every functions and activities effectively
without the extra needs of labour, and it reduces the wastage due to which organisation can
survive better products and services at lower price and lead in the global Business.
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Social media- Cloud computing and social media is the leading technology at present market
which is one of the best contributor for business globalisation, because social media is platform
through which organisation can reach their customers of global market at single site or page of
social media from lead generation, communication, product promotion etc. In other hand cloud
computing is the other key driver because it have send virtualization and scalability. Through
which all the function and activities is can be monitor by home contort.
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Along with the tax charges that is also involving some maintenance related to anti dumping and
prevention of endangered species transport.
Non tariff barriers- this is the type of trade barrier used by some countries in order to meet their
economical and political objectives. That is involving quota, embargo.
Quotas- this is a non tariff trade barriers which is involving the regulations related to the import
and export of selected amount and weight of products. Metals different it related to be varieties
of products.
Embargo- this is a trade barrier which is involving the official ban of import and export in some
selected countries. SASOL has to be effective in their plan by considering all these information
and implement the as much as possible strategic to mitigate barriers.
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