Comprehensive Report: SASOL Ltd. in the Global Business Environment

This report provides a comprehensive analysis of SASOL Ltd. within the global business environment, examining internal and external factors impacting its operations. It covers key aspects such as the political, economic, social, technological, legal, and environmental (PESTLE) factors influencing SASOL, highlighting both opportunities and threats. The report delves into the complexities of strategic challenges, the influence of globalization, ethical and sustainable considerations, and various decision-making processes. Furthermore, it explores different internationalization strategies and the associated barriers faced by SASOL, providing a holistic view of the company's position and challenges in the global market.

Global Business
Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
PART 1 ...........................................................................................................................................4
PART 2..........................................................................................................................................15
Corporate governance, culture, structure, leadership and functions....................................15
Ethical & sustainable factors of an organisation is evaluated..............................................18
Various ways in which the decision making........................................................................19
Ways of internationalisation and barriers related to it..........................................................20
CONCLUSION .............................................................................................................................21
REFERENCES..............................................................................................................................23
Online:..................................................................................................................................24

INTRODUCTION
A business is referred to the organisation which is engaged in any commercial, industrial
or professional activities. The main purpose of the business organisations is to create value for
the customers in return of earning profits. It is very important for the organisations to be aware of
the external factors which are very important for the organisation. The business environment is
the sum collection of the internal and external factors which can affect the operations and
activities of the business organisation. So it is very important for the marketers of the managers
to look for the factors which have a positive and negative impact on the business organisation.
The company which is considered in this report is the SASOL Ltd. It is fast growing chemical
and energy company in London. It has its headquarter in Cape Town, South Africa. Moreover, it
has world wide operations across the world. It has its presence in New York, Gabon, Frankfurt,
Australia, Mozambique with an addition to United Kingdom. This company has clearly moving
upwards by expanding business at global level (Halbert, and Ingulli, , 2020). The business was
formed in the year 1950. In current times, the company builds and commercialises technologies,
it also covers synthetic fuels technologies. It makes varieties of chemicals, liquid fuels and
electricity. This assessment will outlines range of topics such as key factors of market
environment, cost, competition and more. It also outlines the complexity of the strategic
challenges, influence of the globalisation on the business, ethical and sustainable factors of the
organisation, different ways in which decision making can work effectively and in the end of
report the routes of internationalisation with key barriers.

PART 1
Speaker Notes:
The business environment is the sum collection of the internal and external factors which
can affect the operations and activities of the business organisation. So it is very important for
the marketers of the managers to look for the factors which have a positive and negative impact
on the business organisation. The company which is considered in this report is the SASOL Ltd.
It is fast growing chemical and energy company in London. It has its headquarter in Cape Town,
South Africa. Moreover, it has worldwide operations across the world. It has its presence in New
York, Gabon, Frankfurt, Australia, Mozambique with an addition to United Kingdom. This
company has clearly moving upwards by expanding business at global level (Halbert, and
Ingulli, 2020). The business was formed in the year 1950. In current times, the company builds
and commercialises technologies, it also covers synthetic fuels technologies. It makes varieties of
chemicals, liquid fuels and electricity. This assessment will outline range of topics such as key
factors of market environment, cost, competition and more. It also outlines the complexity of the
strategic challenges.

Speaker notes:
Russia's political landscape has been marred with controversies with continuous coups
and revolutions shaking it's governmental foundations many times in the past and despite being a
federal democratic republic on paper, Putin has been ruling over Russia as it's president for total
number of 18 years lasting 4 terms which is staggering for an often times politically unstable
country.
Putin is the main public representative and leader of Russia's largest political party, United
Russia which takes remarkable leadership skills as it's tough to rise in the ranks of a party with
more than 3 million active members. Putin with his demeanour, political strategies and ruthless
aggression towards rivals has become a dominant force in Russian politics.
Vladimir Putin is the biggest political brand and celebrity in Russia and this is a testament to his
leadership exhibited over a decade as he has been in power for so long that other global political
observers consider Russia as a dictatorship despite it being officially a federal democracy
(Gould-Davies, 2021). Putin also operates as the de facto leader of United Russia despite not
being declared a leader officially and he is the reason the party is in power, not the power way
around.

Speaker Notes:
This factors helps the organisation in serving the greater opportunities and development of
the business which eventually cause in the growth of the economies of scale. The SASOL
company can have an advantage of the higher profitability. The company can identify the new
customers base in an easy way at the low cost.

Speaker Notes:
It provides the various oportunituies for the organisation. In context of the SASOL the
manager is responsible for targeting the high market share in order to increase the revenue of the
company. Therefore, it makes an organisation competent to indulge the services to customers at
best level and creates a sustainable and lucrative results even it international level (Steger, 2017).

Speaker Notes:
It involves competition such as OMV Group, Gaztransport and many more that share
their business low-level the related sector because of the globalisation. It forces the business
organisations to enter in the international market and encourage to hold out. In case of SASOL,
the business already faces high rivalries as it has worldwide business operations.

Speaker Notes:
The managers need to acquire the effective strategies and the policies which can impact
the organisation in a positive manner(Lyu, and Hwang, 2017).
Speaker Notes:

These factors have a significant impact on SASOL Company. Changes in the other
company may not only affect the SASOL Company but it affects others players in market. It is
an important aspect which needed to be evaluated by the marketers to know the various
opportunities and the aspects which can affect the business organisation. The various factors in
context of SASOL are discussed below:
Political- This factor may views government policies, trade restrictions, tax policy, trade
restrictions and many more. As the United Kingdom the policies are stable and the SASOL has a
positive impact of the political factor. But the manager of the organisation need to keep an eye
on the government regulations for the smooth functioning of the business on the international
level as well as achieving the long term growth and survival.
Economical- These factors directly impact the business organisation by its performance in the
economy. Such factors include inflation rate, interest rate, unemployment rate, growth rate etc. In
context of the SASOL it is very important for the manager to know about the economic aspect in
order o function internationally. The interest rate can differentiator nation to nation which can
impact the business (Kang, , Diao, and Zanini, 2020)
Social- These factors assist the marketers to be aware about the existing trend in the market. It is
very important for the business to know its customers and their choices according to the social
trend. Such factors include change in lifestyle, attitude, behaviour, cultural aspects. In context of
the SASOL it is very essential for the manager to pay attention on the behaviour of the consumer
and their attitude in the society in order to meet the expectations of the consumers. As the
organisation is offering the chemical and energy services to its customers it has drawback of
trend which is observed because of the pandemic the people are not willing to step out of their
homes. Through this the company can target the large audience.
Technological- These factors are related to the innovation and developmen6t can impact the
business organisation. Such factors contains research and development, artificial intelligence and
many more. It is very important for the manager of the SASOL to pay higher attention on the use
of the latest technologies to attract customers. The use of the digitalisation can lead to target the
large market for the business organisation(Strandvik, , Holmlund, and Lähteenmäki, 2018)
Legal- These factor are related to the certain laws which are application and differ from country
to country. Such factors include laws, labour law, industry regulation, licensing etc. In context of
the SASOL it is very important for the company to focus on the safety laws for its employment.

It involves the various practices which is required by the business organisation such as
employment law, contract law, health and safety law, age-discrimination law and many more.
Environmental factors: The business entity needs to take concern about the environment well-
being and avoid the business practices that can harm the environment and nature. It is important
for an organisation to take concern on the business activities that it needs to be sustainable and
indulges favour of environment. In UK, chemical industry is highly working on the sustainable
practices which aims to build recycling, reusing, eco-friendly and less pollutant products. In
respect of SASOL Ltd., the company has a positive influence by this factor as they produce
chemical products within the favour of environment. It tends to neglect carbon omission in the
business which generates pollutions through chimneys and develop dangerous pollutant in
environment.
It has been analysed from the above description is that all such factors delivers both
negative and positive impact on the company. These factors can cause a lots of opportunities if
they are critically analysed by the managers and evaluators. Somehow, they also deliver a threat
to the company if they are not properly managed. It is seen that political factors are creating
opportunities to the firm as the political condition is stable in the compnay in which they can
smoothly manage business activities with having any kind of outside interference. In regards
with economic variable, the employment rate is increasing day by day through which people can
get jobs in the respective domain and company can get diverse range of employees in the
business to get innovative work done in the business (Heymann, 2019). Social factor is viewed
as a threat to the company as people are becoming more conscious about the environment and
nature due to which they are not supported as much as that. By complying legal factors, the
company can improve its brand image in the eyes of customers and employees. By advancing
technologies in the business, the company is more able to perform business activities effectively
and efficiently. By taking care of environment factors in the business, it also creates an
opportunity to improve brand image in the market and builds trust in the eyes of customers.

Speaker Notes:
Besides the external factors of business environment, the company also gets influenced
by internal factors such as cultural issues, corporate governance, leadership and many more.
Global operations also gets affected by internal factors of business environment. In context of
the SASOL the various challenges are discussed below:
Organisational governance- Preceding organisational governance may not be suitable when an
organisation prefers to grow and expand its shares of market. It is fundamental for an
organisation to create new policies of the governing in the strategic and operative management.
For example, a company manager requires to create new organisational policies to share with its
stakeholders. In addition to SASOL Company, the organisation must perform its business
activities under the new corporate governance.
Leadership- It is observed that the management and employees are to be more disciplined and
controlled for the compatibility of the chemical industry where the customers and partners more
polished than the local clients. The managers need to know about the current market
environment and legislations of the operating business and domestic ones (Golicic, , Flint, . and
Signori, 2017).
Culture- The culture is related to the values, beliefs and the principles which are very essential
for the managers and employees to adopt in the organisation. The culture of the organisation