Analysis And Evaluation of Sasol Assignment

ANALYSIS AND EVALUATION OF SASOL FOR GLOBALIZATION 1
ANALYSIS AND EVALUATION OF SASOL FOR GLOBALIZATION
Author
Professor
University
City, State
August 31, y

ANALYSIS AND EVALUATION OF SASOL FOR GLOBALIZATION 2
ANALYSIS AND EVALUATION OF SASOL FOR GLOBALIZATION
Table of Contents
Executive Summary............................................................................................................................................... 3
Introduction.............................................................................................................................................................. 3
Body............................................................................................................................................................................. 3
McKinsey’s 7S model and checklist............................................................................................................ 3
Hofstede’s Dimensions of Culture............................................................................................................... 8
Evaluation of Ethical and Sustainable Factors....................................................................................13
How the factors have affected decision making in a global context...........................................13
Strategic Expansion Routes Sasol has taken........................................................................................ 14
Conclusion............................................................................................................................................................... 15
References............................................................................................................................................................... 16

ANALYSIS AND EVALUATION OF SASOL FOR GLOBALIZATION 3
Executive Summary
Globalization has had a huge impact on businesses around the globe, especially
multinationals like Sasol. This report aims at evaluating and examining how globalization has
affected Sasol’s structure, culture and functions. For an in-depth and comprehensive
examination, this report is guided by the following points;
i) Through the application of McKinsey’s 7S model and checklist, this report
undertakes Sasol organization overview.
ii) Using Hofstede’s Dimensions of Culture, this report examines the effect of
globalization on Sasol and how the company has adapted to globalization.
iii) The factors of sustainability that Sasol has to consider in a global context.
iv) The effect of the sustainability factors on decision making in the global context
v) The strategic routes of expansion that Sasol has taken
Introduction
Sasol is an international company that deals with chemicals and integrated energy. It was
developed in 1950 in Sasolburg, South Africa but is now based in Sandston and headquartered in
Johannesburg, South Africa. Being one the largest companies in Africa and across the globe,
Sasol has been affected by globalization. This report examines how Sasol has been affected by
globalization and how it has adjusted accordingly.
Body
McKinsey’s 7S model and checklist
Strategy
The Sasol’s strategic areas of focus are on the basis of the following; Chemicals, Upstream and
Energy. The Company’s energy pillar is the expansion of its marketing in liquid fuels and gas to

ANALYSIS AND EVALUATION OF SASOL FOR GLOBALIZATION 4
power, in South Africa as it grows its selective gas-to-liquid in the global scale (Sasol.com,
2019). The company’s aim in its chemical pillar is to grow the businesses of ethylene and
derivative as it delivers high-return and incremental growth in products that are differentiated
(Sasol.com, 2019). To ensure long-term sustainability, Sasol strategically focuses on nurturing
and growing its existing value chain in South Africa and globally.
Structure
The structure of Sasol is summarized in the table below;
Co-president & CEO- Bongani
he Board- Mandla Sizwe Gantsho
Director (independent) - Colin Beggs
endent) - Manuel Cuambe
endent) - Gesina Kennealy
endent) - Nomgando Matyumza
Director (independent) - Moses Mkhize
Director (independent)- JJ Njeke
endent) - Mpho Elizabeth Nkeli
Director (independent) - Sipho Nkosi
endent) - Peter Robertson
endent) - Stephen Westwell
Co-CEO
Stephen Cornell
CFO
Paul Victor
Executive vice president- Advisory &
Assurance
Executive vice president – Chemicals business
Executive vice president – Energy & Sustainability
Executive vice president- HR & Corporate affairs
Executive vice president – South African Operations
Executive vice president – Upstream
Head of Sasol Global FoundationSenior Manager, Communication, Events &
Senior Manager, Marketing & Public

ANALYSIS AND EVALUATION OF SASOL FOR GLOBALIZATION 5
Systems
Sasol has a strong technological setup to aid its operations, activities and processes. An
evidence of that is the Sasol Technology. Sasol Technology is part of the major companies in the
family of business of Sasol. Its main responsibility include technology and innovation,
development and research, project management and engineering for the Sasol Group (Sasol.com,
2019). Sasol Technology has managed to implement PSRemote, which was developed in South
Africa for purposes of collecting the project information around the globe. More than 50 project
managers in Sasol Technology manage hundreds of projects which have the worth of billion
dollars. Those working on the companies projects are spread out across major continents of the
globe. For easy and efficient management of its huge distributed workload, Sasol Technology
developed PSRemote (Sasol.com, 2019).
Before the Management Planning Systems developed the PSRemote the process of
updating records was fairly elaborate. It was quite hard for the consolidation of information from
hundreds of multibillion-dollar program projects. With the inception of PSRemote, Sasol
Technology now finds it easier for the consolidation of the information into management reports
which are more concise which has the features of full drill-down facilities particularly needed by
the executives of Sasol (Sasol.com, 2019). With the PSRemote technology, the monthly data
approval, collection and cycle of reporting is easily achieved with less effort. The application
was developed for the specific purpose of simplifying data collection from dispersed people over
the wide geographical areas. The data would then be used for the production of consolidated
management reports that shows every business’s status by use of colored status robots. Through
the customized reports, the executives will be able to narrow down to any level of detail and

ANALYSIS AND EVALUATION OF SASOL FOR GLOBALIZATION 6
click on a specific item (Sasol.com, 2019). PSRemote has a fully customize system of workflow
that controls multi-level rejections, approvals updates and report.
Shared values
For Sasol to approach its values in a practical way, the company’s values were written
specifically to reflect action ability and ownership. It also has descriptors, offering a generic
starting point for purposes of ensuring a common understanding of its values and their
implications (Sasol.com, 2019). The main purpose of descriptors is not to act as rules but rather
to offer guidance to teams and individuals on how to make the values practical and real in their
application on a daily basis. Sasol utilizes the understanding that the best way of making the
values real is to firmly ground them in challenges and realities of every team. Once this
definition has been made by a team, it will therefore be necessary to keep it alive by regularly
reflecting, conversing and mutually learning more about it (Sasol.com, 2019). Some of the main
values of Sasol include; ensuring that health, environment and safety becomes a top priority,
caring for people and supporting their development, promoting and valuing inclusion and
diversity, acting with integrity and respect, compliance with all the legal requirements, being
accountable for the individual and team performance and delivering on the promises.
Style
One of the most significant management style of Sasol is the promotion of diversity and
organizational culture. The building blocks of Sasol’s purpose and vision creates more for the
exciting next chapter in Sasol’s transformation journey and organizational culture. Sasol also
strives to promote leadership capacity and capability. Having reviewed its approach in leadership
and carry out an engagement with the leaders, Sasol has made great strides in its leadership
approach and style thus being very instrumental in adding life to its aspirational culture. Sasol’s

ANALYSIS AND EVALUATION OF SASOL FOR GLOBALIZATION 7
refined style of leadership becomes alive in the manner in which it leads and the way it lives its
values (Sasol.com, 2019). Through the promotion of innovation, inspiration of high performance
and being multipliers of the performance of people embedded through the program of LEAD
Sasol, the organization strives to build on resilience (Sasol.com, 2019). For achievement of the
same, Sasol places more emphasis on developing many programs of leadership development.
That is in close emphasis on the capability of frontline leadership for strengthening its
relationship with its employees.
Staff
Some of the main positions occupied in Sasol are; president and CEO, chairman of the
board, independent directors, CFO, executive vice presidents of the following areas; Advisory
and Assurance, Chemicals Business, Energy and Sustainability, HR & Corporate affairs, South
African operations and upstream (Sasol.com, 2019). Other top positions include; Senior
Manager, Communications, Events & Branding and Senior Manager Marketing & Public
Affairs.
Skills
Sasol is highly committed towards attracting, developing as well retaining people who
are high performing for purposes of creating value. Sasol also has high commitment in fostering
positive relationships with her employees, developing its leadership capacity, developing critical
skills and talents and promoting a diversity culture (Sasol.com, 2019). According to the year
2018, the total employee rate of turnover stood at 5 percent. The rate of absenteeism stood at 3.7
percent while its rate of adherence to its equity targets in South Africa stood at 98 percent. Sasol
also invested in a total amount of R268 million in learnerships, bursaries, internships and
apprenticeships and further R102 million on the professional development programmes of

ANALYSIS AND EVALUATION OF SASOL FOR GLOBALIZATION 8
graduates (Sasol.com, 2019). In terms of employee training, Sasol registered a total of 1665
learners, interns and apprentices (Sasol.com, 2019). A total of 26757 employees also participated
in its internal development and learning programs as 9898 employees were granted training on
leadership (Sasol.com, 2019). Sasol builds and sustains a talent pipeline through its learning
programs and bursaries across the globe as it continuously monitors its employee turnover for
purposes of enabling adequate supply of critical skills for its operations. It has also pledged its
commitment to the national Youth Employment Service campaign in South Africa. The
campaign is a partnership between corporates and government for purposes of driving capacity
to shift the narrative of South Africa towards optimism and growth through the provision of
employment opportunities for the youth (Sasol.com, 2019). Sasol management has, on the other
hand, placed more emphasis on boosting critical skills and driving localization to ensure
operations’ sustainability, in Mozambique.
Hofstede’s Dimensions of Culture
Power distance
Power distance is basically the inequality degree that exists and accepted in a setting
where other people have power and others do not (Hu et al., 2018). A high score of power
distance is indicative of the fact that a society have accepted a system which is characterized by a
hierarchical power distribution, inequality and the fact that people have an understanding of their
place in the system (Hofstede Insights, 2019). Globalization has had a huge effect on Sasol in the
sense that it has had to adjust its governance style to meet the societal orientation of the different
countries it has made investments. Sasol has invested in the following countries; United States,
Qatar, Uzbekistan and Mozambique (Hofstede Insights, 2019). The power index score in the
countries that Sasol has invested in are shown below;
United States-40

ANALYSIS AND EVALUATION OF SASOL FOR GLOBALIZATION 9
South Africa-49
Qatar-93
Mozambique-85
The scores above is evident that globalization has exposed Sasol to societies with
different orientation in the power distance. Bearing a medium power distance, Sasol, which has
its headquarters in South Africa, has been exposed to countries like Qatar and Mozambique
extremely high power scores (Hofstede Insights, 2019). Owing to that, the management of Sasol
has been forced to change the central leadership style, to that which is tailor made to fit the
countries with different orientations of power distances (Hofstede Insights, 2019). As a result of
globalization therefore, Sasol has committed itself to recognize the right of employees to
freedom of association and collective bargaining.
Individualism versus Collectivism (IDV)
This is basically the strength of the connection or ties existing between people and others
in a community (Kyriacou, 2016). In a community with a high score of IDV, it is indicative of an
interpersonal connection that is weak among who are without a certain family core (Hofstede
Insights, 2019). In such a setting, people are more responsible for their own individual outcomes
and actions as opposed to those of others. A collectivist society requires a high level of loyalty to
a group that people belong in exchange for the defense of their interests (Hofstede Insights,
2019). The individualism score in the countries that Sasol has invested in are shown below;
United States-91
South Africa-65
Qatar-25
Mozambique-15

ANALYSIS AND EVALUATION OF SASOL FOR GLOBALIZATION 10
The difference between the countries with the highest score with that of the lowest score
in terms of individualism is 76, which is extremely high. On that basis, Sasol has had to create an
organizational culture that accommodates the countries with varying scores of individualism, for
the nationals of those countries working in South Africa.
Masculinity versus Femininity (MAS)
This is basically the way roles are distributed between genders. In a society where the
men are expected to be more assertive than women and there is less overlapping of roles between
the two genders, it is more characterized as a more assertive society (Merkin, 2018). On the other
hand, a more feminine society characterizes a greater overlap between the roles of the two
genders and modesty is highly regarded. In such a society, a good relationship with the direct
supervisors and working with people with good cooperation is highly valued. The masculinity
score in the countries that Sasol has invested in are shown below;
United States-62
South Africa-63
Qatar-55
Mozambique-38 (Hofstede Insights, 2019)
South Africa, the headquarters of Sasol has the highest score in terms masculinity. Given
the variance in the countries it has invested in, Sasol is undertaking measures that enhance
gender equality and increasing the number of women in senior positions of leadership. Sasol also
launched a program that was helpful in supporting women in Sasol. Sasol is also proud of
successfully doubling its women workforce in North American Operations. It continues to drive
the strategies for women empowerment as it focuses on gender diversity in Eurasia.

ANALYSIS AND EVALUATION OF SASOL FOR GLOBALIZATION 11
Uncertainty Avoidance Index (UAI)
This measures the far people are willing to cope or deal with uncertainty. A society that
characterizes people bearing a high score for Uncertainty Avoidance have people trying to make
their lives more controllable and predictable (Block and Walter, 2017). They are more tempted to
give up on life if they do not have control over their lives. On the other hand, a society with a
low UAI have its people more open, inclusive and relaxed. The Uncertainty Avoidance index
score in the countries that Sasol has invested in are shown below;
United States-46
South Africa-49
Qatar-80
Mozambique-44 (Hofstede Insights, 2019)
With the high variance in the UAI, Sasol faces a hurdle in the manner in which
employees perform and face challenges. For instance, employees in Qatar are more willing to
give up on a project that is difficult as compared with those in Mozambique. To handle this,
Sasol makes efforts to develop a more universal culture through its strategy for cultural
transformation.
Long Term versus Short Term Orientation
Originally described as Pragmatic versus Normative, this refers to the display of time
horizon in a society (Sims, Ruppel and Zeidler, 2016). Those countries that have a long-term
orientation are more modest, pragmatic and thrifty. People emphasize more on principles,
consistency and truth, in a society that is short-term oriented. Such a society is also more
nationalistic and religious. The Long Term Orientation score in the countries that Sasol has
invested in are shown below;

ANALYSIS AND EVALUATION OF SASOL FOR GLOBALIZATION 12
United States-26
South Africa-34
Qatar-41
Mozambique-11(Hofstede Insights, 2019)
To cater for the different orientations demonstrated above, Sasol provides a universal
moral compass through its ethical behavior regulations. The company adopted a new Code of
Conduct in February 2018. In an interval of two years, middle, senior and employees are needed
to certify that they know and have an understanding of Sasol’s code of conduct and the
guidelines associated with it.
Indulgence versus Restraint (IVR)
Countries bearing a high score of IVR encourage or allow the gratification of their
people’s emotions and drives like having fun and enjoying life (Koc, Ar and Aydin, 2017). On the
other hand, a society that has a low IVR score emphasizes more on suppressing gratification. It
places more rules on peoples’ behavior and conduct. The indulgence score in the countries that
Sasol has invested in are shown below;
United States-68
South Africa-63
Qatar-
Mozambique-80
Sasol operates in a strict culture characterized by a low IVR because it is performance
oriented. One of the main building blocks of Sasol’s sustainability strategy is developing and
retaining people with high performance (Hofstede Insights, 2019). Therefore, Sasol faces a

ANALYSIS AND EVALUATION OF SASOL FOR GLOBALIZATION 13
critical hurdle of providing an environment of high indulgence in Mozambique while at the same
time realizing high levels of performance.
Comparison of Sasol’s countries’ investment based on; power distance, individualism,
masculinity, uncertainty, long-term orientation and indulgence scores
(Hofstede Insights, 2019)
Evaluation of Ethical and Sustainable Factors
As Sasol ventures further, it has to consider ethical and sustainable factors. One of the
factors that the company ought to consider is the promotion of workplace safety. Given that
Sasol is engaged in activities that greatly impact the environment and the health of workers, the
company needs to strive for safety at global standards (BARTLETT and BEAMISH, 2011).
Sasol needs to commit resources to realize a workforce that is healthy and safe. Another
sustainability factor that Sasol ought to consider is the management of human capital. That is
because, human capital management that is effective is important in the execution and delivery
of the company’s strategy (PENG, 2014).
How the factors have affected decision making in a global context

ANALYSIS AND EVALUATION OF SASOL FOR GLOBALIZATION 14
Therefore, Sasol needs to promote cultural transformation and diveristy, develop, attract
and retain people who are high performing (DERESKY, 2014). It must also engage all
employees and respect human rights. That way, it will operate its facilities in a safer, more
reliable and sustainable manner (GUAY, 2014). As it engages different countries, Sasol should
take environmental sustainability measures seriously. Its expansion to a global scale means that
there will be an increasing pressure for the delivery of greater societal values. In that case, it
should move from simply being motivated by compliance obligation to doing it as a social and
business imperative. In a global context, Sasol needs to comply with the rules and regulations of
different countries. The fincial and social obligation also increase in demand (DANIELS,
RADEBAUGH and SULLIVAN, 2013). For instance, Sasol had to grant a total of 91 SMMEs
loans from 2008 and increase the accessibility of HIV/Aids Healthcare facilities in Southern
Africa to 380,000 community members. It also increased the total global Group Social
Investment spending by 21 percent.
Strategic Expansion Routes Sasol has taken
One of the main strategies that Sasol has employed to meet the global demands of
sustainability is closely engaging with stakeholders and mostly the government. That is by
participating in many leadership forums as well as maintaing a good working relationships with
regulatory authorities and governments of the countries that it operates in. Sasol’s joint CEOs
also visited numerous sites and held numerous sessions of town hall at various sites and offices
of operations in Europe, South Africa and United States. The information that were covered in
these engagements included; Sasol’s annual priorities and strategy, safety, transformation of
culture and broad-based black economic empowerment (B-BBEE). The advantage of this is that
Sasol will have a chance to acquire all the raw information on the situation on the ground and
develop links with more countries. However, Sasol will be underutilizing technology.

ANALYSIS AND EVALUATION OF SASOL FOR GLOBALIZATION 15
Conclusion
Sasol Limited has made great strides in adjusting to the growing demands on globalization. The
development and utilization of the programs that generate sustainable development in South
Africa, Mozambique and across the globe is evidence of the efforts that Sasol is pumping.
However, as it ventures further into other new markets and countries, it should be prepared of the
disparities of cultures as discussed using Hofstede’s Dimensions of Culture. Sasol should
develop a decentralized system of management to create flexibility especially when dealing with
the cultural disparities in different societies.

ANALYSIS AND EVALUATION OF SASOL FOR GLOBALIZATION 16
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