Unit 18 Global Business Environment

This unit covers the strategic complexities of expanding business in the global market and evaluates the governance, culture, and structure of the organization using McKinsey's 7S Model. It also discusses Hofstede's Dimensions of Culture for evaluating the influencing culture. The unit provides insights on decision-making, routes to internationalism, and key barriers in doing business in the international marketplace.

Unit 18 Global
Business Environment

Table of Contents
PART 1............................................................................................................................................3
PART 2........................................................................................................................................11
TASK 3..........................................................................................................................................11
P3. Define the governance, culture, and structure of the organization by applying McKinsey's
7S Model..............................................................................................................................11
Defining the way these components affect global functioning and in the manner, the company
adopts in the pursuit of working globally.............................................................................12
Hofstede's Dimensions of Culture for evaluating the influencing culture...........................13
P4. Defining and classifying the impacts of ethical and sustainable globalization on functions
..............................................................................................................................................13
M3. Critically analyse the influence of globalization on the organizational culture and
structure ...............................................................................................................................14
TASK 4..........................................................................................................................................15
P5. Estimating and assessing decision-making the ways that can work in an indeed efficacious
manner in the context of globalization ................................................................................15
P6. Enunciation and Elaboration of different routes to internationalism for the companies with
their crucial key barriers ......................................................................................................16
M4. Critical examination of the key barriers in doing the business in the international
marketplace and providing recommendations for overcoming them...................................17
D2.Defining the strategies that an organisation can adopt while performing globalised
activities and justified recommendations on adapting organisational structure and the process
of decision-making...............................................................................................................17
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19

PART 1
Slide1
Slide 2
Slide 3
3

Introduction
Speaker Notes:
This Project will cover various key factor that helps the companies to expand their business in
global market. Further, it will deal with the strategic complexities that are linked with an
organisation to compete with global environment.
Slide 4
4

Speaker notes:
Evaluation of the concept of globalisation
Globalisation of business helps in achieving the organisational goal and creates an
opportunity to grow business in the international market. It tends to increase competition among
the industry and those who have better policies and plans can only survive for a long run.
Slide 5
5

Speaker Notes:
 Cost: It is one of the significant factor that incurs due to day to day operation of a
business. It involves production cost, marketing, distribution, transportation, human
resource etc. In relation to SASOL Ltd., they are required to focus on their cost strategy
to minimise them and evaluate the unnecessary expenses that may affect the growth of an
organisation. This factor must be considering to develop cost effective method to gain
competitive advantages in the international market.
 Market: Another factor aims to analyse the market trends and expectation of consumer
from the businesses. People belongs to different culture, tradition having different taste
and preference etc. influences the market and demands of such goods and services are
fulfilled by the SASOL Ltd. They are providing their goods and services at affordable
price so that every individual can easily make better choice.
 Environment: It refers to social culture, political environment and economic factor helps
the company to make expansion and growth of business. These factors are directly affect
the overall performance of an organisation in the international market. In context to
SASOL Ltd, they have conducted the research and development programme to
understand the external factor that may help them to evaluate success in the global
market.
6

 Competition: It refers to current market scenario that helps the company to strategies
their plans and policies to gain competitive advantage over the others. In relation to
SASOL Ltd., they emphasise mainly on their technological advancement to produce
more goods and services to win competitive from the other organisation.
Slide 6:
Speaker Notes:
There is some factor that are considered through PESTLE analysis which has been done in
context to SASOL Ltd., are discussed below:
Political Factor: The current political stability ensures the better administration of work within a
country. It also contributes in framing plans and policies to support foreign direct investment ,
trade tariffs, tax liability etc. to make expansion of business. In context to SASOL Ltd., they are
using the various political reforms for successfully running their business in the global market.
Economic Factors: This factors are basically deals with the economic policy such as
employment rate, inflation rates, interest charge by the financial institution etc. Due to
unpredictable crisis of pandemic, drastically affect the economy of various countries. The corona
pandemic leads to sudden decline in growth of the large scale companies and has also observed
that market share of the company are continuously falling. In context to SASOL Ltd., they have
7

also faced the fall in their growth of an organisation and continuously making effective plans to
overcome the barriers.
Social Factor: It refers to different style, culture, tradition, perception and market trends that has
greater influence over the growth of any company. This factor is very crucial to understand the
behaviour of an individual in the market to satisfy their need and demand in the market. In
relation to SASOL Ltd., they are using better plans to analyse the perception of consumer to
fulfil their needs.
Technological Factor: It is one of the most important factor that must be taken into
consideration to attain the growth of business. After globalisation, the technological upgradation
is in demand to increase the production and minimise the labour cost. In context to SASOL Ltd.,
they should analyse the innovation ideas and must bring creativity in their style of doing business
to open the door of opportunities.
Legal Factors: These factors include rules and regulation that govern the nation and the various
activities of an economy. In context to SASOL Ltd., the legislation in relation to employees are
implemented to ensure safety, security and healthy working culture within an organisation.
Environmental Factors: This factor is important to taken into consideration to follow the
sustainable technique and methods of production without causing any harm and loss to the
environment.
Slide 7:
8

Speaker Notes:
The barriers and challenges faced by an organisation can overcome by using the appropriate
strategies that will help them to gain competitive advantage over the competitors.
However, various changes have been observed by the SASOL Ltd., which includes:
 Increased Competition: Globalisation results into increase in stiff competition among
the large companies that demands upgraded technology and innovation for the production
of goods and services.
 Changes in trade tariff and export fees: Globalisation increases the tariff rates for
exporting the products in the new market. In context to SASOL Ltd., they make effective
plans to take safe entry into global market.
 legal compliances challenges: Globalisation requires strict legal compliances to bind the
organisation from the legal formalities. In context to SASOL Ltd., they take essential step
to comply with legal responsibilities and important for the proper functioning of an
organisation.
 Immigration: Due to strict and complex provisions of immigration law enhance the
complexities of businesses to make new entry in the international market.
 Digital Technology: It is another factor that assist the organisation to reduce their cost of
distribution and transportation and emphasis on production of sale. It helps to create
9

brand value and create large base of consumers. It ensures variety of products that
consumer can purchase through one click of mouse.
Slide 8
Speaker Notes:
This strategy can be made through extensive research and market evaluation to identify the
trends and expectation of potential consumers. In context to SASOL Ltd., they should focus on
the risk factors in order to make better decisions to generate revenue and profit from their
effective strategies.
Slide 9
10

Speaker Notes:
 Use of effective technological methods and innovative ideas helps the company to attract
the large base of consumer in the market. These strategies is important for establishing
brand value in the market. In context to SASOL, adoption of new technique and method
may help them to compete in the market.
 Sustainable use of production and pollution free technique is the key to success of an
organisation. As this strategy will help the SASOL to create goodwill in the competitive
market. Legal compliances and statutory compliance authorise the SASOL company to ensure
safety and health environment to employees in order to encourage them towards the
achievement of an organisational goal.
Challenges faced by managers of SASOL
 Political instability creates barriers in the growth and expansion of a business. In context
to SASOL Ltd., they are clear with their plans and policies to deal with dynamic and
unstable business culture.
 The continues fall in purchasing power of consumer increase the worries of many
industry and they have to sell their price at very low price. In context to SASOL Ltd, the
global lockdown arises new issue before them and affects their overall performance.
11

 The change in consumer need and expectation is greater challenge for the large
companies as it tends to changes inadequately and demands upgraded services to
establish good image in the market.
Slide 10
Speaker Notes:
Many challenges have been faced by the organisation due to the process of globalisation as it
increases the competition in global market. It creates dynamic business culture and complexity in
diversifying business.
Slide 11
12

Slide 12:
13

PART 2
TASK 3
P3. Define the governance, culture, and structure of the organization by applying
McKinsey's 7S Model
McKinsey's 7S Model is varied for the development of the organization validating the
fabrication of the company will showcase the 7 crucial components, stratified into soft and hard.
The components are mentioned below:
● STRATEGY- It determined the plan which is made for attaining the blueprint of the
marketplace. An arrangement plan is taken for achieving the benefits and easily
competing with the foreseen competitors, are to the ambition and vision of the company.
Under the circumstances of SASOL, it is considered to implement the hard element, so
that is a compromise made in the aspect of cost.
● STRUCTURE- Within the formation of the company, there determined the department
is on the hierarchical level. The responsibilities are determined under this purview,
withholding the activities and the relations. There is the presence of banana a ha ard
element, SASOL needs to divide their suppliers according to the area.
● SYSTEM- The factor presents the laid down activities which are done and adapted by
the workers daily. The flow tends to be indulged in the workstations, therefore it is
sensed to be a hard element. SASOL needs to strengthen the cyber environment in the
scope of workstations (Alghalibi,and Hoshan, 2018).
● SHARED VALUES- This component shows the ethical values which are followed by
the workers of the organization. The ethics are kept intact and mentioned in the by-laws
to safeguard the values of the company. This turned out to be a soft element for SASOL
which is crucial for constructing values in the organization. To maintain the focal point in
the scope of investors and sustainability which will the company grow.
● STYLE- This construction is related to the qualities of leadership in the context of the
challenges and issues which are faced by the workers. The behaviour is induced in the
scope of the code of conduct and in the pursuit of mannerism which is essentially
14

required for the company. Determined to be a soft element for the organization Leaders
of SASOL will certainly scale up the offline working scenario and it will eventfully cover
the online workers (Moreira, and Silva,2019).
● STAFF- The employees and all other members of the company, which reflect the vision
of the organization, together the organization needs to take a step and keep the
communication transparent bet between here to protect the hierarchy. This is considered
to be a soft element for SASOL.
● SKILLS – This is represented as the resource and efficacious manner which is dwelled in
the activity which is done constructively by the members of the company. The
presentable potential which is showcased by the workers in their working scenario is
known as competency. This element is determined to be soft for SASOL, which will
ultimately influence the quality of wrong impact on the scope of reorganization
Defining the way these components affect global functioning and in the manner, the company
adopts in the pursuit of working globally
The extent of soft elements consists in the scope of the members who are working in the
surroundings of the workstations. If in case SASOL decides to bring about changes in the
working manners or try to set up its roots in some new market, SASOL needs to adapt and thrive
on the soft elements. The parameters ken into account when the organization gets into some
merger or acquisition. If the considered elements are not covered by SASOL, it can fail in the
tactics and other shared values of the organization. The leadership style which is potentially
adopted by the organization is working towards the betterment of the environment and
productivity of work. The HR Team of the mentioned company, SASOL is working greatly
which will result in the token of new hiring, in case the past workers tend to quit their jobs.
There is a sensible development in the purview of transparent communication which is getting
between the members of the firm and the organization itself (Barua, 2020).
The scope of hard elements included parameters of the measurements which can easily
Mold the structure accordingly. Organizations should take the prices of the products high and
15

buy more shares from the market. The company pay needs to focus on minimization in measures
of the decision-making process.
Hofstede's Dimensions of Culture for evaluating the influencing culture
The doctrine of Hofstede's Dimensions of Culture is decades aren’t plan for gaining
knowledge regarding diversity in cultures across nations and understanding the evaluation of
pursuing business in the cultures. The structure consists of six categories of cultures which are
mentioned below:
● Index of Power Distance- This facilitates the parameters to scale up the power and
inequality. The stratification is done based on a higher power distance index and a lower
power distance index, which are contradictory. The arrangement plan which is followed
in SASOL is simplified to democratic though it consists of autocratic traits. The sense of
power and belongingness encircle the seniors and the junior, there is the existence of
sharing of ideas and discussion of plans
● Individualism VS Collectivism- The mannerism of obligation is discussed in the pursuit.
The world 'I' states individualism, involving values and personal objectives, and the
world states the meaning of collectivism, which involves the roles and aims of the entire
group. The members of SASOL are considered to be independent.
● Index of Uncertain Avoidance- it consists of the meaning and existence of uncertainty.
The index with higher attributed involves a high level of uncertainty and it goes vice
versa. In the scope of SASOL, takes care of their employees and generates innovative
ideas, creativity, and take Take Lessons each other. The job role and task given to the
members of SASOL are taken at the moment of the event (Wang20190.● Long passage orientation VS Short passage orientation- it will determine the work
period which is described as valuable for society. Long passage orientation, is determined
to attain long-term growth, whereas short passage orientation, is determined as the goal's
attainability time limit is trivial and the aims are achieved or fulfilled easily
(Ugrin,Pearson,and Nickle,2018).
16

P4. Defining and classifying the impacts of ethical and sustainable globalization on functions
The entire pairing process of globalization in the measurements of sustainability and ethical
situations for the company will ultimately assist the company in its better performance and
running of business pursuit. The great impact of sustainability and ethical sources on the front of
globalization will reflect on the components of SASOL which are mentioned below:
 The ramification of Human Resources: the sector which is keen to be moved in the
division of human resources, will manage and advance the workforce of the company.
Managers of SASOL usually come up front with some complicated issues due to the
scope of differences that are occurring in the seek positioning of cultural parameters. The
factor which stands in the way relates to promotion, compensation, and hiring of the
workers.
 The ramification of the financial component: this sector relates to the performance of
the activities or tasks which are upbringing in the organization. It is considered crucial for
the managers to follow the SASOL, implicating with the task of business financial part
and putting the seed of ethical practices in it. The managers working for the company
must always look out for the betterment of the organization, the puddle up of checking
the financial stats of the company is determined to be necessary.
 In the sector of marketing and sales: the established team hooked on the market front,
must seek great strategies for the growth of the company and get ready for the
competition occurring in the marketplace. And to eh ace the company working skills in
the matters of managers of SASOL, must not miss any scope of lacking in the ethics
matter and fabricate the activities regarding ethics and sustainability. All these criteria
will improve the quality of the organization and make the company more efficient.
 The ramifications of the production sector: the component related to production will
work in the favour of the company but indeed put an obligation on the firm to produce
products in a way that enhances the value of the subject matter. The performance of
producing good working conditions goods and services will influence the position of the
company in the scope of globalization.
17

M3. Critically analyse the influence of globalization on the organizational culture and
structure
The area of critically analysing that most certainly globalization has a hard ball impact on the
structural functions and organizational matters of the company. Globalization does put an effect
on the culture and organizational structure in the sphere of SASOL. The asserted and evaluated
pieces can be taken from the McKinsey Model and Hofstede's dimension of the groundwork
concerning culture, which will lead to the roadmap of a better understanding of the parameters of
organizational structure. In the scope of studying the pointers of SASOL, which gave a blueprint
of SASOL it does include channels related to hierarchy plans, competent staff members, and a
well-trained and well-maintained approach that brings about a leadership course of action. The
company culture at SASOL is considered to be greatly adaptable for the workers of the
organization, all these factors will enhance the working of the working and assist them in the
circumstances of obscurity. The role of managers will entirely be the focal point to assist the
workers and put the seed of motivation. The vitality which is probed in the employees will let
them attain success and be adorable to the surroundings of the company (Apanecatl-Ibarra,
2022). The organization is supportive enough to provide the surroundings to the workers, for the
workers can achieve success and attain individual interests themselves. Performance of workers
enhances eventually.
TASK 4
P5. Estimating and assessing decision-making the ways that can work in an indeed efficacious
manner in the context of globalization
Propounding with the technique for achieving success the organization gravitated toward
themselves the inside scope of globalization activities, and companies widen their focal point to
critically analyse and handle the sphere of linguistic scope, standards of various cultures, and
gradation reflecting regional pointers (Lund, and Tyson, 2018.). The methods of decision-
making are the considered manoeuvre that is necessary for the functioning operations in the
global atmosphere. It is certainly vital for managers of SASOL to examine the framework of the
political front, the phase of the economic factor, the scope of policies, and the regulations related
to legalization, which are needed to be followed to generate the footwork for getting the entrance
18

in the internal marketplace. The direction in the doctrine of decision-making which is used by the
managers of SASOL is laid down below:
 Driven Decision Making: this kind of decision-making process is used as a provocative
method, the decision in this technique is taken before the occurrence of the events. The
role of driven decision-making continues to look after way before the happenings of an
episode. This technique critically requires way beyond thinking. State of affairs of this
method in the purview of will help the managers of SASOL, attainment of the first move
is essential in the practice, which provides the gain and growth of the accomplishment in
the global marketplace. The factor of triumph can be achieved by utilizing the mentioned
decision-making process. Within the scope of this process, it can be supposedly easy to
evaluate the factor of risk in the functional operations of the organization (Morais, and
Ferreira,2020).
 Responsive Decision-Making- uncertain and rapid issues require rapid solutions which
are given through by this reactive decision-making technique. This method can assist the
managers to cope and get help under circumstances that were not foreseeable or can say
unpredictable, and save the company in a long run. Managers of SASOL can be managed
well by this method in case they need rapid solutions for the issues that occurred, it will
also keep the reputation bubble within the global marketplace. It is pivotal for the
managers of SASOL to predict the problems, issues, or any other challenges beforehand,
to gain good publicity in the global market and attain growth for the company.
P6. Enunciation and Elaboration of different routes to internationalism for the companies
with their crucial key barriers
It is considered to be a pivotal activity for the company to classify different kinds of routes of
entry into the scope of the international marketplace, as the analysis will assist in the
achievement pathway made in the formation of future prospective and prolonged-term business
structural plans. There are determined routes for the managers of SASOL which are mentioned
below :
 Route of Franchising - respective in the purview of this route, companies go head to head
with other companies, to enhance and grow the name of their corporations by utilizing
the name of the organization. This route is specified and taken into affirmation by the
19

managers of SASOL, as this supports to grow and broaden the spectrum of the business
in the extent international marketplace. The key barrier related to this route exists in this
costing process and the reaching limits into the scope of companies that are lacking the
component of capital in their surroundings. In the course of action of the business model,
it is proven to be risky for SASOL to work accordingly.
 Route of Joint Venture - this type of hypothesis can ultimately be described as the
entrance to the business. Where one or more companies meet each other needs, risks,
profits, and losses variables on a proportionate level. It is advised to the managers of
SASOL to be a part of joint ventures is considered to be modern age technology which
furthermore encourages and modernizes goods and services in the marketplace.
Evaluated determined barrier of this factor adapting to the route which lacks the
component of communication and varied alternatives can hinder the working conditions
of the business (Wang, NhieuDao, and Huang, 2022). Route of Licensing- In the purview of this route, there is designing of a contract
between two or more than companies, where one of the company allows other company
to held in the practices of production within the parameters of some conditions which are
plain specific or in the exchange some of the fees regulated. This route will provide
assistance to the managers of SASOL to advance and for the growth for their business,
this also provides with low capital investment and facilities for the construction of the
company. The major key barrier for this route it s said to be expensive when it comes to
the scope of infrastructure and technicalities.
M4. Critical examination of the key barriers in doing the business in the international
marketplace and providing recommendations for overcoming them
In this spectrum it is clearly investigated that there is specific presence of various sorts of
barriers when it comes to the routes for the companies and these barriers most certainly reflect an
influence on the companies. The influence refection the parameters of advancing the business in
the scope of international marketplace. The determined barriers called out to be different
parameters such as, cultural front, social patterns and showcased in the need of extensive
necessity of the capital. The challenges which are faced by the organisation, it is wishfully
advised to the managers of SASOL to critically advocate on the blueprint of latest marketplace,
the latest trends and the respective demands of the clients. It is also highly recommended to the
20

managers of SASOL to examine the components within the purview of cultural and political
parameters of the respective country in which the business cycle is going to accelerate its process
(Reis,Gonçalves,Lopes,and Antunes,2021).
D2. Defining the strategies that an organisation can adopt while performing globalised
activities and justified recommendations on adapting organisational structure and the
process of decision-making
Organisation ultimately adapt some strategies which enhance their process of getting into the
scope of globalisation and lean towards to the road global activities, which are eventually used to
examine the components related to the international environment (Martynova,
YurchykMarshuk,and Andrusenko,2019).
With the subjective study of the components of the international market surroundings
which can assist by examining the needs of the clients. It is recommended to the manager of
SASOL to give about exact training and professional leads to the workers for making their more
productive and enhance the quality of work. It is admonishing to the managers of SASOL to
adopt the hierarchical channels for the enhancing the procedure of decision-making.
CONCLUSION
It is concluded from the above report, that the crucial viewpoint of globalisation puts a real
influence on the organisation and its functioning, its structure, culture of the company,
governance regularities of the company and the leadership factor of the organisation in a contrary
manner. The culture factors obtained in the purview of the company showcase the values which
the workers preach, the perceptions created, the norm and conditions of the company that puts an
impact on the behavioural pointers within the working performance of the employee. In the
scope of Hofstede's dimension of culture model which is utilized by the organisation in
organisation in order to scatter the practices occurring in the practices which clearly belong
various types of culture aspects which includes, uncertainty, indulging, power distance and much
more. The process of drive decision-making, is taken into account by the corporations to bring
about benefits and making the first move which will ultimately provide assistance in obtaining
advantages in the market competition
21

22

REFERENCES
Books and Journals
Alghalibi, T.M.M. and Hoshan, N.N., 2018. Use the McKinsey 7S analysis framework to address
the implementation issues of strategy related to human resources (Applied research in
the Directorate of sewage in Basra. Gulf Economist, 34(37).
Apanecatl-Ibarra, E., 2022. THE ROLE OF VALUES IN THE GLOBALIZATION OF
STUDENT AFFAIRS. Emerging International Issues in Student Affairs Research and
Practice, p.49.
Barua, S., 2020. Financing sustainable development goals: A review of challenges and mitigation
strategies. Business Strategy & Development, 3(3), pp.277-293.
Karlsson, C., Cornett, A.P. and Wallin, T. eds., 2018. Globalization, International Spillovers and
Sectoral Changes. Edward Elgar Publishing.
Litvin, S.W., 2019. Hofstede, cultural differences, and TripAdvisor hotel reviews. International
Journal of Tourism Research, 21(5), pp.712-717.
Lund, S. and Tyson, L., 2018. Globalization is not in retreat: Digital technology and the future of
trade. Foreign Affairs, 97(3), pp.130-140.
Martynova, L., Chorna, N., Yurchyk, I., Marshuk, L. and Andrusenko, N., 2019.
Entrepreneurship activity in the service sector in globalization conditions. Journal of
Entrepreneurship Education, 22(3), pp.1-5.
Morais, F. and Ferreira, J.J., 2020. SME internationalisation process: Key issues and
contributions, existing gaps and the future research agenda. European Management
Journal, 38(1), pp.62-77.
Moreira, A.C. and Silva, P. eds., 2019. Handbook of Research on Corporate Restructuring and
Globalization. IGI Global.
Reis, I.F., Gonçalves, I., Lopes, M.A. and Antunes, C.H., 2021. Business models for energy
communities: A review of key issues and trends. Renewable and Sustainable Energy
Reviews, 144, p.111013.
Ugrin, J.C., Pearson, J.M. and Nickle, S.M., 2018. An examination of the relationship between
culture and cyberloafing using the hofstede model. Journal of Internet
Commerce, 17(1), pp.46-63.
Wang, C.N., Nhieu, N.L., Dao, T.H. and Huang, C.C., 2022. Simulation-Based Optimized
Weighting TODIM Decision-Making Approach for National Oil Company Global
Benchmarking. IEEE Transactions on Engineering Management.
Wang, G.Y. ed., 2019. Globalization. BoD–Books on Demand.
23