Sasol Company Market Analysis Term Paper Example | Topics and Well Written Essays - 1750 words

Sasol Company Market Analysis - Term Paper Example The strong South African economy provides growing, profitable home market for Sasol. In the stock market, Sasol offers a solid dividend and the stock currently yields a hefty 4.59%. Though recent markets are not satisfying the investors, Sasol is relatively volatile. Though there is fall of oil prices, Sasol probably offers much to its investors. Government regulations and policies also affect Sasol’s marketing. The currency devaluation of Rand has a strong impact on the strategies of Sasol. â€Å"Customers receive a further R1.25 preferential procurement recognition for each R1 they spend with the Sasol Group of Companies.† (â€Å"BEE certificate†). In addition, the political interruptions in pricing decisions, due to the elections, drive the market of oil industry. The increase of taxes and lowering of synfuel subsidies by the government probably affect the product marketing which in turn affects the revenue of the company. Thus, Sasol has to take necessary mea sures to sustain among these regulations of the policies. Black empowerment companies enjoy better benefits as the government insists on 25% indigenous participation to its value chain. (â€Å"BEE certificate†). Sasol, being a BEE verified enterprise, commits to promote and enhance African empowerment. The environmental issues are yet another phenomenon that affects the company’s marketing, particularly from the perspective of social responsibility. Some of the major environmental issues that affect Sasol are pollution.... In addition, the political interruptions in pricing decisions, due to the elections, drive the market of oil industry. The increase of taxes and lowering of synfuel subsidies by the government probably affect the product marketing which in turn affects the revenue of the company. Thus, Sasol has to take necessary measures to sustain among these regulations of the government policies. Black empowerment companies enjoy better benefits as the government insists on 25% indigenous participation to its value chain. (â€Å"BEE certificate†). Sasol, being a BEE verified enterprise, commits to promote and enhance African empowerment. The environmental issues are yet another phenomenon that affects the company’s marketing, particularly from the perspective of social responsibility. Some of the major environmental issues that affect Sasol are pollution created by refineries, introduction of eco-friendly fuels, oil spills, GHG emissions and more. Though Sasol has taken alternative measures for producing fuels, these methods also tend to emit a considerable amount of GHG and lead to pollution of the environment. PEST Analysis: Political: Regulations from the government regarding taxes Political instability Lowering synfuel subsidies Economic: Currency volatility in South Africa Persistent inflation in input cost Price fluctuations of the global market Strong African economy Social: Strikes in African mines Limited access of labor in the local environment Providing employment opportunities on racial lines Technical: Expanding its Gas-To-Liquid (GTL) and Coal-To-Liquid (CTL) technologies for producing fuel Growing chemical portfolio and