Global Business Environment: Analysis of SASOL Ltd.

This report analyses the global business environment of SASOL Ltd. using McKinsey's 7s model and Hofstede's Dimensions of Culture. It also evaluates ethical and sustainable factors impacting decision making and assesses strategic expansion routes available to the organisation.

Global
Business
Environment

Table of Contents
MAIN BODY...................................................................................................................................1
PART ONE COVERED IN PPT............................................................................................1
CONCEPT OF GLOBALISATION................................................................................................1
MAIN BODY...................................................................................................................................1
Explanation of structures, culture and governance within SASOL by applying McKinsey’s 7s
model......................................................................................................................................1
An evaluation of how the above has been influenced by global operations and how the
organisation has adapted to operating in a global market......................................................2
Applying Hofstede’s Dimensions of Culture to demonstrate how SASOL has been influenced.
................................................................................................................................................3
An evaluation of ethical and sustainable factors that the organisation has to consider in a
global market and how this impacts on decision making in a global context........................4
An assessment and critical evaluation of the range of strategic expansion routes available to
the organisation......................................................................................................................4
CONCLUSION................................................................................................................................5
References:.......................................................................................................................................6

MAIN BODY
PART ONE COVERED IN PPT
1

CONCEPT OF GLOBALISATION
Globalisation is an important factor of business as it helps a business to grow as well as
expand. It is necessary to analyse the global business environment before starting business
operations in other countries. This report is based on the SASOL Ltd. Which is an oil and gas
company performing its operation in multiple countries. In this report, business environment of
SASOL Ltd. is analysed by McKinsey framework and how it can be influenced by the global
operations. After that Hofstede's Dimensions of Culture is used to analyse the influence upon the
SASOL Ltd. Different ethical and sustainable factors will be discussed which can impact the
decision making of an organisation. At last the range of strategic expansion routes evaluated
which can be used by an organisation.
MAIN BODY
Explanation of structures, culture and governance within SASOL by applying McKinsey’s 7s
model
McKinsey's model refers to set of different tools which are used to determine or analyse
the structure of organisation. Below are the different factors which are based on the SASOL Ltd.
-
Strategy – It refers to the method which a company uses to achieve their organisational goals
and objectives that gives an edge to the company over the others. SASOL Ltd. Have a great
name in industry and its management has clear and rigid plans to achieve their goals.
Structure – It refers to business structure which is followed by a company to maintain smooth
flow of business. SASOL Ltd. follows a hierarchical structure with the flexibility which helps in
making fast strategic decisions and that directly promotes efficiency in the company. An
employee is assigned to a particular task according to their interest and level of skills.
Systems – It is defined as the processes and procedures which a company undertake to maintain
smoothness in their day to day activities. SASOL Ltd. promotes clear and transparent working of
company's management by determining the authorities of the company. Also technical systems
leads to successful management.

Skills – It means capabilities and internal traits of an employee working in an organisation.
SASOL Ltd. hires persons with excellent skills, even from the different parts of the world.
Strong and efficient manpower of the company is one of the reason of company's growth.
Company highly focuses on the recruiting skilled and tech savvy candidate to support the
business growth.
Style – Style refers to the behaviour or attitude of senior level management towards their
subordinates within an organisation. SASOL Ltd. develops more efficient ideas and strategies to
assist teams for achieving the objectives. Regular monitoring and providing initiatives and ideas
to the staff helps achieving desired goals.
Staff – It can be defined as total number of employees of a company which is working for the
growth of a company. As SASOL operates in many countries, so company has diverse workforce
from different backgrounds, culture etc.
Shared Values – It refers to the behaviour of the staff toward each other. It is considered as one
of the most important factor. SASOL Ltd. focuses on providing a better environment for the staff
of the company. Employees from different backgrounds are teamed up to know about each other
and it also promotes learning of new things from different people.
An evaluation of how the above has been influenced by global operations and how the
organisation has adapted to operating in a global market.
Many businesses focuses on making a move on global markets to capture the market
share in the relevant industry. When a business operates at global level, the environment
becomes more complex and at starting entrepreneurs do not have practical knowledge of doing
business in new markets. Different factors which are mentioned above relate to SASOL Ltd. are
influence due to global operations because the company is reaching out multiple countries and
implementing their business operations at global level. Company briefly analyses the market of
different countries and adapts the trends and market features of those countries. The business
structure of the company is formed considering the standards of global market. Company has
developed many training programmes in order to enhance the skills of employees and train
workers for the job role. SASOL Ltd. has made the working culture more flexible by focusing
towards more to flat working structure than rigid hierarchy which gives company an advantage.
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It is basically the combination of hierarchical structure and flat working structure. The main
motive of using this structure is to create more efficiency in the organisation.
Applying Hofstede’s Dimensions of Culture to demonstrate how SASOL has been influenced.
Hofstede's culture model is very useful framework which is used to understand the
cultures and market trends of different nations and compare them with each other. It is helpful in
starting new business in new global market. Following are the different categories of Hofstede's
culture model in the context of SASOL Ltd. -
 Collectivism vs. Individualism – Communities of South Africa prefers individualism
and SASOL Ltd is a South Africa based company which shows the same characteristics.
Employees of the company are more focused of fulfilling their personal goals instead of
fulfilling the objectives of the company.
 Uncertainty Avoidance Index – It refers to challenges and different work which are
avoided by the people. In context to SASOL Ltd. Employees are open to take on new
challenges and seek better opportunities to grow in their career. Company also promotes
new and innovative ideas from their employees.
 Femininity vs. Masculinity – It is basically the male and female values which are
considered in a culture. SASOL more focuses on masculinity values. It helps company to
get aggressive and ambitious work from their employees. Employees of the company are
more success driven and create new ideas in their work.
 Short-Term vs. Long Term Orientation – SASOL is a South Africa based company
and companies in that area are less likely to get fast economical growth which make
company to incline towards short term orientation. Employees are more focused on
completing short term goals of the company.
 Power Distance Index – It refers to understanding the culture, values and norms of the
new market. Information is being shared regularly in more direct way and using informal
communications method.
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An evaluation of ethical and sustainable factors that the organisation has to consider in a global
market and how this impacts on decision making in a global context.
To carry business operation in different nations a business must consider ethical factors
as they plays an important role in global market places. There are more restrictions on the
already developed countries comparing to countries which are developing. Following are some
ethical factors and their impacts on global business -
 Environmental consideration – It is one of the most important factor which should be
kept in mind while starting business operation in other countries. SASOL should follow
all the rules related to environmental standards and take care of health of their workers
and avoid pollution as much as the they can.
 Business By-products – Many organisations generally do not think about the by product
or scrap which is made out of the process. But they can have harmful chemicals in it so it
is important for an organisation like SASOL Ltd. To process the waste material and
make it free from harmful substances. This will help in making the environment clean of
the nations.
 Local community development – It is important for companies to invest in social life
and engage in development of the communities and areas in which company is
operating. SASOL Ltd. Set up their plants in the outskirts areas which are
underdeveloped and provide many facilities such as employment, parks, building schools
and hospitals etc.
An assessment and critical evaluation of the range of strategic expansion routes available to the
organisation.
Expansion strategies related to business refers to different methods and strategies which
can help the business to grow and attract more customers and market presence which directly
helps in generating more revenue. Further mentioned is the brief assessment of methods
available to the organisation to expands its business.
 Expansion into new market – After a certain period of time, it is necessary for a
company to start new products who are dealing in one or two products. This can be a
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opportunity for the company to introduce new products in new and existing markets by
making a proper plan and strategies.
 Start a franchise – This can be defined as starting new shops or branches of company in
those areas where people are willing to invest in it and demand for the products and
services of the company is higher. It is beneficial for both company as well as public of
the relevant area.
 Joint venture or Acquisition agreement – Joint venture is a great option for the already
developed and well established business. It helps the businesses to enter in new markets
with more power.
CONCLUSION
It can be concluded from the above file that global business environment plays a significant role
in the expansion of the business which helps the business in its growth. It helps the business
organisation to identify opportunities and problems which can be faced by an organisation while
entering into global markets. There are different key factors which are caused due to
globalisation which are discussed briefly in the above report. Frameworks like PESTLE analysis
helps the organisation to know about the external environment which can influence the particular
business environment or the relevant industry. Also there is huge impact of the digital
technology upon the globalisation. An organisation faces different challenges and complexities
because of the globalisation and there are some ways to overcome these types of challenges. It is
important to understand the business environment of global markets and target a particular
market for capturing the market share in the particular industry.
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References:
Books and Journals
Leal, P.H. and Marques, A.C., 2021. The environmental impacts of globalisation and
corruption: evidence from a set of African countries. Environmental Science &
Policy, 115, pp.116-124.
Morrison, J., 2020. The Global business environment: towards sustainability?. Bloomsbury
Publishing.
Perraton, J., 2019. The scope and implications of globalisation. In The Handbook of
Globalisation, Third Edition. Edward Elgar Publishing.
Smith, C., Burke, H. and Ward, G.K., 2020. Globalisation and indigenous peoples: threat or
empowerment?. In Indigenous cultures in an interconnected world (pp. xviii-24).
Routledge.
Wei, L.H., Thurasamy, R. and Popa, S., 2018. Managing virtual teams for open innovation in
Global Business Services industry. Management Decision.
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