Sasol Limited: Navigating the Global Business Environment Challenges

This report provides a comprehensive analysis of the global business environment and its impact on Sasol Limited, a fast-growing energy and chemical company. It defines globalization, performs a PESTEL analysis to identify broader influences, and highlights key drivers of globalization. The report also examines the significant impact of digital technology on globalization and critically evaluates the challenges and complexities it presents to Sasol Limited, including currency risk. Finally, it offers recommendations to overcome these challenges, such as reducing currency risk through financial management, improving communication among global managers, and streamlining product and service structures. The analysis concludes that understanding and adapting to the global business environment is crucial for Sasol Limited's continued success and growth.

Unit 18 – Global Business
Environment

INTRODUCTION
Global Business Environment is defined as the environment in different countries with the
factors to the environment of home of the organization influencing the decision making process. Sasol
Limited is a company with fast growing energy and chemical products and services.
Thus, the presentation will analyse the concept of globalization will be defined and
described in effective manner. Moreover, PESTEL analysis was also explained in the detail manner and
moreover, the key factors of globalization will also be described for the company Sasol Limited.
Significant impact of digital technology upon globalization will also be addressed and explained.
Furthermore, the challenges and complexities which globalization brings to Sasol will be formulated.
Proper recommendations will also be provided for the challenges which are faced by the company.

MAIN BODY
1.Concept of globalization
Globalization is the process of interaction and integration among people, governments and companies
worldwide. It helps in describing that how the trade and technology have made the world into more
connected and interdependent place. There are various changes in the social and economic
environment and this helps in providing the concerns regarding the aspects related to growth and
development. Globalization is the process which helps in analysing the business at large scale and this
concerns the growth and development of the businesses in effective and efficient manner.

Globalization is important for the overall circumstances which are being mentioned and this concerns
the aspects related to the changes in the economy, business and how people interact. This helps in
creating value for the aspects related to business expansion and how it is related to business growth and
development. Globalization helps in understanding the concerns regarding the nature of economic
activity between the nations, opening global supply chains and providing the access to natural
resources at large scale. This will help the business to identify the concerns regarding the business
aspects related to the growth and development at large scale.

2. PESTEL Analysis for broader and global influences on organization
The company Sasol is the fast – growing energy and chemical company which helps in creating value
by understanding the needs and requirements of the business and for this PESTEL analysis is being
done and this is described as below –
PESTEL Analysis -
 Political – Highly political instability has been identified with the company Sasol Limited. It has
then serious implications for consumptions, economic growth, investment etc. Sasol should
actively scan the political environment for quick adaptation with changing policies.
 Economic – The efficiency of financial markets, Sasol can successfully create value so that they
stay ahead of competition. There has been slow economic growth rate which affects the Sasol
Limited revenue growth rate.

3. Key driving factors of globalization
There are significant factors which are the main key drivers of globalization and these are
mentioned as –
 Technological Change – Rapid and sustained technological changes are the key measures
and factors which should be concerned and this constitutes measures of growth and the
development in the aspect of globalization. Technological changes have reduced the cost of
reducing the cost of transmitting and communicating the information which is regarded as
important to be noted and addressed at large scale. It is the key factor behind the trading
process in Sasol Limited products and services at large scale by using the web technology in
effective and efficient manner.

4. Significant impact of digital technology upon globalization
Globalization is the key concern why the business is categorised and are working in some pattern
according to the changes which are observed at large scale. There are different digital platforms which
changes the economy of doing the business across the boarders and this brings down the cost of
international transactions and interactions at large scale. They help in creating the markets and user
communities with global scale which are represented at large scale. They also help in providing the
huge base of potential customers and effective ways to reach them.

Rapid innovation is leading to analysing the concerns of business which are in progressive
manner and this is helping to create value for addressing the aspects which are in progressive manner.
Different markets which are created with the perspective and changes in the global scale are being
addressed and are evaluated in the perspective of knowing and understanding the different ways
through which the companies have changed their ways of working by adopting the social media
strategies and channels through which they are able to promote the products and services at large scale.

5. Critical evaluation of challenges globalization brings to organization
There are some major challenges which Sasol Limited is facing due to globalization and this helps in
creating value and addressing the problems and issues regarding the globalization which the
organization is bringing.
The challenges globalization brings to organization are –
 Currency Risk – Sasol can face the problem and issues regarding the currency risk and this is the
major point which is to be addressed within the concerns of challenges globalization is bringing in
the organization at large scale. Sasol can have the possible profit and loss which may be caused by
the fluctuating profit and loss by the exchange rates of the company to one another. The challenge
for the globalization is the product of Sasol Limited which helps in describing the concerns
regarding the equal opportunities which are being represented to the company at large scale.

6. Recommendations to overcome the challenges
There are certain recommendations which will help in addressing the key concerns regarding
overcoming the challenges and these are mentioned as –
 The currency risk should be reduced by the means of concerning the finances and costs which will
help in providing the stages related to effectively evaluating the stages.
 The managers which are spread globally should communicate to initiate the strategies so that they
are able to progress with the business decisions which are being undertaken.
 The structure of the services and products should be framed easily to be made available to
customers.
 The political risk can be reduced in effective manner.

CONCLUSION
Thus, it has been concluded from the above presentation that concept of globalization was
defined and described in effective manner. Moreover, PESTEL analysis was also explained in the detail
manner and moreover, the key factors of globalization were also described for the company Sasol
Limited. Significant impact of digital technology upon globalization was also addressed and explained
in the manner which helped in knowing the changes in the digital platforms. Furthermore, the
challenges and complexities which globalization brings to Sasol was formulated and analysed in
different manner. Proper recommendations were also provided for the challenges which were faced by
the company.

REFERENCES
Books and Journals
 Ahmedov, I., 2020. The impact of digital economy on international trade. European
Journal of Business and Management Research. 5(4).
 Babenko, V. and et.al., 2019. World informatization in conditions of international
globalization: Factors of influence. Global Journal of Environmental Science and
Management. 5(Special Issue). pp.172-179.
 Burlacu, S., Gutu, C. and Matei, F.O., 2018. Globalization–pros and
cons. Calitatea. 19(S1). pp.122-125.
 Chang, V. and et.al., 2020. How Blockchain can impact financial services–The
overview, challenges and recommendations from expert interviewees. Technological
forecasting and social change. 158. p.120166.
 Chen, S. and Zhu, F., 2019. Unveiling key drivers of urban embodied and controlled
carbon footprints. Applied energy. 235. pp.835-845.