Global Business Environment: Application of McKinsey's 7s Model and Hofstede's Dimensions of Culture Theory

This report discusses the importance of the global business environment and how organizations can develop within it. It covers the application of McKinsey's 7s model and Hofstede's dimensions of culture theory, with examples from SASOL, a South African chemical and energy-based company. The report explains how these models help organizations gain a competitive advantage and achieve their goals.

Global business
environment(PART-2)

Table of Contents
PART 2............................................................................................................................................1
MAIN BODY ..................................................................................................................................1
The application of McKinsey’s 7s model in context of a company(SASOL)............................1
The application of Hofstede's dimensions of culture theory........................................................3
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................6

PART 2
INTRODUCTION
In this modern world of competition various organizations has made it important for
business to develop within global business environment in effective manner. The global business
environment is based over factors that impacts business organizations performance with over all
growth. This makes globalization important for internal business to perform analysis over global
business environment making business entities developed on large scale. In the functioning of
international business there are two main kind of business environment that makes internal and
external factors developed on large scale. In the report application over Mckinsey’s 7Ps model
that has been functioning within global environment. The project deals with hofstede dimensions
of culture and it various dimensions. Further, the roles strategic decision making within the
organization and over global routes. The report covers with example of SASOL organization that
has been taken into consideration which is integrated energy and chemical organization that is
based Sandton, South Africa. The organization was developed by German chemists and
engineers within early 1900. The organization was built and developed by German chemists
and engineers in the early 1900s. The company has currently a goodwill in the market and has
employed over 30000 people in its industrial operations.
MAIN BODY
The application of McKinsey’s 7s model in context of a company(SASOL)
Mc Kinsey 7s model is stated to be a device that analyses the organizational shape of a
employer via way of means of its seven precept intrinsic factors. These seven factors are
interlinked with every different and are labeled in “Soft Ss” and “Hard Ss” which incorporates
shape, approach, shared values, systems, formed , capabilities and workforce in an enterprise.
SASOL Limited is a desegregated chemical and energy-primarily based totally employer in
South Africa(Fraedrich, Althawadi and Bagherzadeh, 2018). Within the reputable employer, this
model assists supervisors in figuring out whether or not the factors of this model are successfully
allowed and aligned in employer for attaining dreams or not. This seven model places emphasis
on workforces of the employer instead of following conventional mass manufacturing approach
for higher performance. These seven precept factors facilitate managers of SASOL Limited in
gaining aggressive gain over competition in following ways:
1

 Structure: A manner wherein commercial enterprise departments are prepared and
establishes responsibility relationships is called as shape of an enterprise. There are
diverse forms of organisational shape which includes purposeful organisational shape,
hierarchical organisational shape, flat organisational shape, etc. Within SASOL Limited,
flatter organisational shape is accompanied via way of means of managers of employer
for innovating and supervising their commercial enterprise sports. In this organisational
shape, there are fewer ranges which inspires verbal exchange among the supervisors and
their subordinates of the reputable employer.
 Strategy: A plan that is used to accumulate an enterprise in conjunction with retaining
aggressive advantages over competition within the marketplace is said as approach of
commercial enterprise(Ibidunni, Ogundana and Okonkwo, 2021). Supervisors of SASOL
Limited follows suitable techniques that helps them in making powerful advertising
activities via way of means of getting to know and figuring out statistics for making
nicely knowledgeable decisions.
 Shared values: The mission, imaginative and prescient and goals of a employer are the
vital values and are called the shared values of an enterprise which directs the employer
in aligning all of the key factors of an enterprise. Well-described organisational shape of
SASOL Limited enables in motivating the human assets of the employer closer to
attainment of goals in an green manner.
 Systems: It is a method wherein the every day sports of a commercial enterprise are run
for growing a workflow inside an enterprise. There is awesome organisational device for
growing the float of labour inside an enterprise and one in all them is MIS. This device
enables directors of SASOL Limited in tracking commercial enterprise sports and
strategic making plans for accomplishing the goals of employer.
 Skills: It is referred because the capabilities and proficiencies of human assets of
employer that enables in attaining goals of the enterprise in an powerful manner. Skills
like verbal exchange capabilities, developmental capabilities and plenty of greater
enables the body of workers of SASOL Limited in gaining aggressive gain over its
competition within the marketplace(Gani, Yoshi and Rahman, 2022). The employer
offers schooling and improvement classes to their workforces for boosting their
capabilities in order that they entire their challenge in an powerful manner.
2

 Style: It is described because the mindset of senior degree control for controlling and
directing their subordinates to make nicely knowledgeable commercial enterprise
decisions. Within SASOL Limited, democratic management formed is accompanied via
way of means of supervisors of employer to direct and coach their subordinates in order
that all of them could make powerful commercial enterprise decisions.
 Staff: It entails the employees gift within the employer for appearing and retaining the
operations of every day commercial enterprise sports. Within SASOL Limited, there are
30,one hundred manpowers running within the employer for making commercial
enterprise decisions. Staff of the reputable employer additionally offers schooling and
improvement capabilities to its much less professional human assets in order that they
also can paintings successfully and efficaciously within the employer.
The application of Hofstede's dimensions of culture theory
Hofstede's Cultural Dimensions of cultural
The shape of a employer majorly defines way of life in a primary feel and it is crucial for
a employer to use hofstede dimensions of way of life to supply quality practices. This model
allows turning in quality commercial enterprise practices in a employer for commercial
enterprise enlargement. It is crucial for the employer to take help of strategic control for
implementation of this model.
 Power distance index: The electricity index is decided because the principles wherein
inequality in addition to electricity elements are tolerated(Nam and Bao Tram, 2021).
Organisations on the market have to frequently comply with the primary plan that is
powerful in growing a want for electricity distance index.
 Individualism vs. collectivism: It is the predominant obligation of commercial
enterprise to recognition on man or woman personnel. Along with this predominant
obligation of an worker to recognition.
 Uncertainty avoidance index: It is decided because the amplify wherein uncertainty in
addition to ambiguity is tolerated. It describes that how unknown state of affairs or
surprising activities are deal in enterprise correctly to reap goals. SASOL Limited
enterprise has decrease uncertainty avoidance index that suggests because the low
tolerance for organisational uncertainty and risk-taking and uncertainty is minimised with
the aid of using making use of strict legal guidelines and regulations.
3

 Masculinity vs. femininity: The respective measurement is described because the desire
of society for achievement, attitude, equality and behaviour. As masculinity is measured
because the potentiality like fierceness and deficiency. On the opposite hand, femininity
is associated with fluid gender roles, nurturing in addition to it's far worried with the first-
class of life.
 Long time period vs. quick time period orientation: It is associated with time horizon
that is utilized by the enterprise to enforce the making plans and strategy. SASOL
Limited enterprise recognition on the quick in addition to long-time period goals to reap
all organisational dreams and goals properly. Short time period orientations offer brief
consequences and long-time period orientation recognition on perseverance in addition to
long time boom and development.
 Stakeholders concept: as stakeholders are the only who are related with the employer
internally or externally. There are numerous stakeholders like customer personnel, board
of director, mangers, authorities and providers etc. as those stakeholders are related with
every different without delay or indirectly(Wei, Thurasamy and Popa, 2018.). If
providers offer higher uncooked fabric to the employer, then then clients may be greater
buy their merchandise and service. If mangers skilled personnel nicely then they now no
longer lose their self assurance on the time of promoting and say their speak correctly to
the clients. For example, if the climate adjustments then this may have an effect on the
employer. If there may be a adjustments in customer’s rights and some other fitness and
protection rights then this may be consequences in converting rules of employer with the
aid of using mangers.
 Sustainable globalisation: globalisation is associated with enlargement of the beguines
and technology in everywhere in the international. Sustainable globalisation is associated
with essential transformation of the way human beings paintings in worldwide
international this is in 21st century. For example, employer is spanning in thirty nations
so it wishes to undertake up to date technology for being sustainable within the
worldwide market.
4

CONCLUSION
From the above discussion it has been concluded that global business environment is an
important aspect which makes business attain popularity on global level. This makes business
organization work upon structures that makes business operations conducted on high level. Also,
business organization make development in terms of business culture by applying models and
theories in relation to it. Then model for dealing with workforce management has been explained
effectively.
5

REFERENCES
Books and Journals:
Vătămănescu, E.M and et. al., 2020. From the deliberate managerial strategy towards
international business performance: A psychic distance vs. global mindset
approach. Systems Research and Behavioral Science, 37(2), pp.374-387.
Zainudin, M.I and et. al., 2019. Islamic Working Environment, Organizational Commitment and
Employee's Job Satisfaction and Performance in Malaysia Service Industry: A
Conceptual Paper. Global Business and Management Research, 11(1), pp.436-445.
Barr, T.L and et. al., 2018. Development of indigenous enterprise in a contemporary business
environment–the Ngāi Tahu Ahikā approach. Journal of Enterprising Communities:
People and Places in the Global Economy.
Berman, S. and Dalzell-Payne, P., 2018. The interaction of strategy and technology in an era of
business re-invention. Strategy & Leadership.
Dzwigol, H., Dzwigol-Barosz, M. and Kwilinski, A., 2020. Formation of global competitive
enterprise environment based on industry 4.0 concept. International Journal of
Entrepreneurship, 24(1), pp.1-5.
Fraedrich, J., Althawadi, O. and Bagherzadeh, R., 2018. A comparative analysis of the UN
declaration, global business compact, and religious morals in determining global values
for business and their application to Islamic marketing. Journal of Islamic Marketing.
Gani, M.O., Yoshi, T. and Rahman, M.S., 2022. Optimizing firm's supply chain resilience in
data-driven business environment. Journal of Global Operations and Strategic Sourcing,
(ahead-of-print).
Ibidunni, A.S., Ogundana, O.M. and Okonkwo, A., 2021. Entrepreneurial competencies and the
performance of informal SMEs: The contingent role of business environment. Journal
of African Business, 22(4), pp.468-490.
Nam, V.H. and Bao Tram, H., 2021. Business environment and innovation persistence: The case
of small-and medium-sized enterprises in Vietnam. Economics of Innovation and New
Technology, 30(3), pp.239-261.
Wei, L.H., Thurasamy, R. and Popa, S., 2018. Managing virtual teams for open innovation in
Global Business Services industry. Management Decision.
6