Global Business Environment: Culture, Structure and Governance of Sasol

GLOBAL BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAINBODY...................................................................................................................................3
1.Introduction and purpose..........................................................................................................3
2.Explanation of culture, structure and governance of Sasol using McKinsey's 7s model.........3
3.Influence of global operations on above factors.......................................................................5
4.Impacts Hofstede's dimensions of culture on an organization..................................................7
5.Ethical and sustainable factors, that are considered by an organization...................................8
6.Evaluation of strategic decision-making..................................................................................9
7.Evaluation and assessment of routes of global expansion......................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Globalization is a great option for the expansion and development of a business.
Globalization helps in expanding the business worldwide. Because it deals with other
organizations of the different and new countries in the world. SASOL is an energy and chemical
based organization. It is located in South Africa, and formed in 1950. SASOL's headquarter is
located in Sandton, South Africa. The reports is consists of introduction of globalization and the
structure and model of McKinsey’s, and its implication SASOL. The report also includes the
dimensions of Hofstedes culture model and its evaluation. The reports also contain the critical
evaluation of ethical and sustainable factors in a global market, and the assessment of strategic
routes for globalization.
MAINBODY
1.Introduction and purpose
Globalisation is a process of expanding the business world wide, it is referred to the
interconnection of organisations. It will help in the expansion and development of the country in
the world. The main purpose behind globalizing the business is, the providing the good and
services of the business to the world level. It helps ion the expansion of the business, and also in
the rapid growth of the business. Globalization also helps developing the economic conditions of
the organization s and well as of the nation.
2.Explanation of culture, structure and governance of Sasol using McKinsey's 7s model
Mckiney's 7s framework for SASOL
Strategy
Sasol gains competitive advantage by using the strategy of technological advancement.
They mainly focus on those areas where competitive advantages and industry's leading
technologies can be seen. The company always indulges itself in research & development
(Razmi, Mehrvar and Hassani, 2020). Sasol uses this that encourage them for creating a clear
path so that the company can achieve sustainable growth. It helps them in achieving higher

return from shareholders and increasing values for all the stakeholders. They managed to achieve
more of the production and increased their capital by their strategy.
Structure
The structure of Sasol is matrix structure. In this structure there are multiple superiors of
the employees and the organization contains more than one line of reporting managers. There are
different levels of management with Key Managerial Personnel’s (KMPs) levelled at different
stages according to their post. Sasol's structure is divided according to the different required units
of sales and production to provide better services with minimum resources.
System
The system of Sasol can also be called the culture of Sasol. The company's values have
always been helping them in connecting them to serve as they are obligated to serve better. Sasol
keeps the safety as their top priority in their organization (Cox, Pinfield and Rutter, 2019). It is
the core of their day-to-day business. They always provide safety to their employees and
members. Sasol has always been caring in nature they care for the environment and communities
as well.
Shared values
The company always tried their best to maintain their shared values. The company keeps
inclusivity in their work and for the members of the company. Sasol group always owns the
results of their work, and they believe that they are always accountable for their work. Their
mentality of being active and aware of their work builds more discipline in their organization.
Style
The company's style of participative leadership adoption is that they indulge themselves
in developing their employees with high calibre of knowledge. They incudes their members in
decision making processes (Shaqrah, 2018). Sasol's style of participative leadership is that they
unite with their people and create a positive relation with their employees which motivates the
employees in performing better for the company. The organization managed to create a style of
high performing employees by making them feel united with the company.