Global Business Environment: Influence of Globalization on Organizational Governance, Leadership, Structure, Culture and Functions

This article discusses the influence of globalization on organizational governance, leadership, structure, culture and functions in the global business environment. It explores Hofstede's culture dimensions and McKinsey's 7s framework. It also covers different ways of decision making and methods of entering international market for SASOL. The article concludes with the challenges and barriers faced by organizations while driving the organization at international level.

Global Business
Environment

Table of Contents
PART 2............................................................................................................................................2
P3 The influence of globalization on organizational governance and leadership, structure,
culture and functions..............................................................................................................2
Hofstede's culture dimensions................................................................................................3
McKinsey's 7s framework .....................................................................................................4
P4 Influences of globalisation on functioning of Sasol.........................................................5
M3 Critical evaluation of the global market influences in application to the appropriate
theories and models relating to the organisational culture and structure...............................6
P5 Different ways of Decision making in global context for Sasol.....................................6
P6 Methods of entering international market for SASOL......................................................6
M4 Different barriers of entering international marketplaces:-.............................................7
CONCLUSION................................................................................................................................8
REFERENCES ...............................................................................................................................9

PART 2
P3 The influence of globalization on organizational governance and leadership, structure, culture
and functions
 Cause of globalisation on organizational governance:- Due to the globalisation there is
increment in the growth potential of an organization because of the new ideas, social
networks and different new technologies. SASOL take more advantages due to
globalisation because of its employees, customers and others. Influences of globalisation at leadership:- With the help of globalization many people get
interact together and company get leaders and employees from the different countries
and cities having different languages and culture. SASOL hire the more talented leaders
with the help of globalization (Tasleem, Khan and Nisar, 2019). Influence of globalization on structure: Every organization having different
communication strategic plan which can helps in communicating that may positively
effect the organization stricture. SASOL having the effective organization structure
which can help every employee to reach their targeted goals and achieve more success. Influence of globalization on culture: In globalisation every people having different
culture and languages so it is important to understand every employees. SASOL having
different culture people which are belongs from different countries due to the
globalisation.
 Influence of globalization on functions:- It is most important for an organization to
analysis and adopt the more advanced technologies and function. The country having
more advanced technology will function in an effective manner and enhanced the
productivity of an organization. SASOL having more advanced technology which helps
in promoting their business (Arslan and et. al., 2022).
Hofstede's culture dimensions
This theory is based on the different culture of society which can help in identifying the
different norms and culture of different countries. It can give the different strategy how business
can be done in an effective manner. There are four major dimension of Hofstede culture
dimensions which are follows:-

 Power distance index(PDI):- This dimension describes the distribution of power of
individual person of an organization which includes manager, employees. High PDI
prevent the trouble and complexities between the people within the organization. Low
PDI having the flexibility in employees working. SASOL have the low PDI and having
the strict rules and regulations to the workers.
 Individualism v/s collectivism(IDV):- when company is working under the individual
and have more dependency over its family and society , it is only one person who is
responsible of their own it is individualism. The working employee of any organization is
focus on helping their team workers is collectivism. SASOL has medium level IDV
because both are responsible for both self and helping the employees. Masculinity v/s femininity:- The organization focus on attaining the more attention and
it requires the financial growth and having the ego problems it is kind of masculinity and
the human care nature describes the femininity. SASOL has more femininity than the
masculinity because the organization has more focused on workers care.
 Uncertainty avoidance index- It is the factor which helps companies to cope up with the
adverse condition and having low index generated the more uncertainties which can
helps employees to cope up with the situation. SASOL having the low of uncertainty
index and organization have ability to cope up with the adverse condition (Önder and
Zengin, 2022).
McKinsey's 7s framework
This model helps in analysing the external and internal factor which can effect the
company internally. This model helps in analysing the factors which need more attention to
improve and affect the organization internally. This model analysis the hard and soft elements of
the organization. The hard element of an organization is which is affected due to the lack of
management and which can be easily identified and the soft elements are the affected by the
corporal and working performance. McKinsey's 7s analysis the condition of SASOL which is
given below:-
 Structure:- The structure is the main element of an organization which is followed by the
working employees of any business. SASOL has hierarchy organization structure which
is followed from over years and having high level of coordination between the team

members. Each department having he different function and independency to take the
action.
 Strategy:- The strategic plans has been are more essential for the business because it can
helps the working employees to work and achieve their targeted goals in an effective
manner. SASOL acquired the effective strategy and well organized plan and set of goals
and objective which are very clear to the staff. The employees are well trained and they
analysis the needs and wants of the customers (San Ong, Magsi and Burgess, 2019).
 System:- The system of any organization is effective for the working employees because
it maintained the all activities, task , working pattern of each employees. SASOL has
clear role and responsibility of each and every employees and they are under supervision
of their leader.
 Staff:- This elements includes the working force of an organization which includes
employees, workers, labours and management team and their functions. Sasol is the
multinational company which has number of employees.
 Skills:- Skills is the most important to run the organization and it is required for the
managing the working power. SASOL hire the most talented and responsible employees
which can achieve their targeted goals accordingly to the time.
 Style:- The factor is about the leadership and management of the organization because
effective leadership may impact on the organization performance. SASOL has the
effective leadership and having the responsible management team which drive the
company in appropriate manner (Hou and Zhu, 2020).
 Shared values:- It is the value of beliefs and and ethics which is most important for the
business environment. SASOL followed the ethics and values which includes respect,
cooperation, punctuality and honesty. Management team of SASOL focus on
maintaining the cooperation between the working employees and provide flexibility in
their working so that they can enjoy their task and achieve more success.
P4 Influences of globalisation on functioning of Sasol
Business around the global is not easy because it requires more things to developed the
strategic plan and huge amount to invest such as product manufacturing, supply chain and
various other strategies which are followed by the business to achieve the success. To drive an
organization at international level there are various function which may change and organization

faces more complexities. SASOL has many impact of globalisation on their function which
includes:-
Ethical globalisation:- when organization drives an internationally it should have to maintain the
ethics and beliefs which is most important and difficult task and this process is known as ethical
globalisation. It is essential for an organization to respect every culture and religion, the
management team is responsible for maintaining the ethical identity of individual person.
SASOL followed the ethics and beliefs of of every culture and maintains the core values which
can helps in enhancing the productivity of an organization. They manage the culture and nation
of individual person according to the country. SASOL is more successful to manage the ethical
globalisation (Brandão, Breda. and Costa, 2019).
Sustainable globalisation:- The business in other countries and that have been the stay for long
period. SASOL establish the name of their company among the people and at new market place
and launching market at new place is not an easy task and they also helps in enhancing the
productivity and revenue system of an organization. The employees of SASOL uses the
advanced technology which can helps in making the right decision and organization can analysis
the current situation and market trend.
M3 Critical evaluation of the global market influences in application to the appropriate theories
and models relating to the organisational culture and structure
Globalisation of business may affect the structure and brand image of an organization at
marketplace and among the customer's. Company uses various application and models for
following and maintaining the culture and ethic in the business structure. These theories and
models may helps in evaluating the business growth of an organization (Raharjo and et. al.,
2018).
P5 Different ways of Decision making in global context for Sasol
Effective decision making for an business environment is most important in which they
faces many challenges and it can requires more research and findings for expanding the business
environment. SASOL makes an effective decision for their organization and they are more
successful in achieving the targeted goals. The organization having the effective decision making
which get more profit and the organization run in a right pathway. There are some factors which
effect the decision which includes:-

Proactive decision making:- It is an approach of eliminating the problems before entering in the
new market strategy and its asset before of stimulation of any situation this is known as proactive
decision making. SASOL analysis and make sure about the decision making which is effective
for an organization before entering in new market. Effective decision making reduced the loss
and make more profit.
Reactive decision making:- Reactive is an approach of action which is happened after the
situation happened. The result of situation comes which requires the immediate action and
critical decision. In context of SASOL, which have the talented and skills filled employees and
management team who can make the strong decision which is effective for situation. These
skills and talent of employees helps in identifying the problems and making the effective
decision (Zhu, Zhu and Ding, 2020).
P6 Methods of entering international market for SASOL
There are various ways of drive and organization at international level. Launching and
entering into the new market may enhance the profitability and productivity of an organization.
Expanding the brand image among the customer's and at market place helps in increasing the
sale and enhancing the productivity of an organization. There are various methods of expanding
the business and SASOL uses different methods to enter into new market internationally which
includes:-
 Franchising:- This method refers to as expanding the another business at the same time of
exiting business. When the company launch the product and services to another business
with the same brand and product by improving the quality and make alteration. SASOL
has many franchised across the different location of UK. They adopted the strategic
methods and process to expand their business and manufacture the product with high
quality. The developed the effective plan and decision making to drive their organization
into different other countries. The effective process for franchising reduced the loss and
increases the profit.
 Joint venture:- It is the cooperation with the another person when company drive an
organisation at international level with the partnership. SASOL make more collaboration
with the other companies to expand their business. In joint venture it helps to get
partnership with the same country people because they can manage the barriers occurs
within the organization. SASOL increases the collaboration with many other local

chemical companies which helps them to make more profit and also enhance the
productivity of an organization.
M4 Different barriers of entering international marketplaces:-
There are many barriers and complexities occurs while driving the organisation at
international level. These barriers may cause the loss and sometimes many countries get
permanently closed due to the heavy loss. Company get into another country may face the
difficulties and complexities due to the various barriers and they can also get more loss when it is
imposed on companies at international level. There are some barriers which includes:-
Risks of franchising:- There is risk of launching the new business into the another country
because it is new place and customer's and they are not easily get trust of new business. The risk
of franchised is also one of the major and difficult barriers which occurs while doing the business
at internal level (Al-ahdal and et. al., 2020).
Competition with local companies:- Competition is the major challenges for the new business
because local and existing business has many customers and their brand is already exist in the
marketplace. For the new business it is most important to launch the product with the high
quality because it can attract more customers which can expand the brand image among the
customers and at the marketplace. SASOL enter into the new market which can increases the
competition with local and existing companies but they can provide the high quality product
and services to the customer's which can attract more customer's (Baum and Haveman, 2020).
CONCLUSION
From the above discussion, it is conclude that globalisation helps interacting and making
relationship with people as well as different countries which can enhance the business growth
and drive the organization at international level. There are various factors which affect the
organization and decreases the productivity of the business. SASOL conducted the PESTLE
analysis for identifying the internal and external factors which affect the organization. The
Hofstede's model and the McKinsey's 7s is the framework for the business which can influences
the function and performance of an organization and improves the productivity. There are
various factors which effect the business while it get at international level and also organization
faces many difficulties and challenges to drive an organization around the world. SASOL

adopted the tools and strategic plan which can helps in reducing the risk of loss and increases the
profit and revenue system of an organization.

REFERENCES
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