Global Business Environment: Analysis of Challenges Faced by SASOL and Impact of Ethical and Sustainable Internationalisation on Business Functions

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
P1 Analysis of cost, market, environment and competition which drives international
commerce and trade....................................................................................................................3
TASK 2............................................................................................................................................3
P2 Explanation of the complexity of challenges faced by SASOL when operating in global
business environment..................................................................................................................3
TASK 3............................................................................................................................................3
P3 Evaluation of influence of globalisation on corporate governance, leadership, structure and
business functions.......................................................................................................................3
P4 Evaluation of effect on business functions caused by ethical and sustainable
internationalisation......................................................................................................................7
TASK 4............................................................................................................................................8
P5 Evaluation of several ways in which decision making works in a business firm..................8
P6 Identification and articulation of several routes to internationalisation which are adopted
by business firms along with description of barriers................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Global business environment consists of various factors which impact on smooth
functioning of a company. In addition to this it also influences various organizational factors of
the company also directs the internationalization strategy of the firm. Business firms in the
current age focus on developing a strong global presence to attain international industry
leadership and maximisation of profitability. SASOL is the business firms selected for this
report. SASOL is a South African chemical manufacturing which is present in 30 countries all
over the globe. The effects of internationalization on corporate governance, workplace culture,
business structure and functions is evaluated in this report. Impact of ethical and sustainable
internationalisation on business functions is evaluated in this report. Evaluation of various ways
in which decision making works in a global context along with identification of routes to
internationalization of a business firms is presented in an articulate manner.
MAIN BODY
TASK 1
P1 Analysis of cost, market, environment and competition which drives international commerce
and trade
Covered in PPT
TASK 2
P2 Explanation of the complexity of challenges faced by SASOL when operating in global
business environment
Covered in PPT
TASK 3
P3 Evaluation of influence of globalisation on corporate governance, leadership, structure and
business functions
The international market affects organisational structure and the flow of information in a
company (Adewumi, 2021). The explanation of the impact of global market on the
organizational structure of SASOL, the McKinsey's 7S model is applied below:
McKinsey 7S model of organisational structure

 Strategy: The strategy of the company to gain competitive advantage in their industry and
gain success over their industry rivals is part of this element of the model. The business
strategy at SASOL is constructed on the basis of various global, local and national market
in order to attain international as well as domestic success.
 Structure; The organizational structure adopted by the company is included in this part of
the McKinesy 7S model (Akpan Udoh and Adebisi, 2020). The group structure of
SASOL is divided into two upstream business units, three regional operating hubs and
four consumer facing strategic business units. This depicts the influence of global market
on the structure of the company as the firm has constructed an organizational structure on
the basis of global market regions in order to facilitate smooth functioning of
international operations across markets.
 System: The daily activities and procedures completed by staff for completing business
objectives of the company are present under this category of the model (Bhattacharyya,
2020)(Buckley, Enderwick and Cross, 2018). Employees at SASOL have to conduct the
activity of coordinating and communicating with international teams in order to ensure
attainment of organizational objectives of the company.
 Shared Values: This element of the model involves the beliefs and core values of the
company which are a part of the organizational culture of the firm. The core values of
SASOL include complying with applicable legal requirements and prioritizing
environmental protection. The influence of global market can be seen in this aspect of the
McKinsey 7S model. This is because the company has to follow international trade and
comply with the objectives of World trade organisation which include sustainable
development which s part of the core values of the company and showcase the impact of
global market.
 Style: The leadership style adopted by the company is apart of this element of the firm. In
case of SASOL, the company focuses on building high performing and innovative
workforce to ensure increase in resilience of the company. The transformational
leadership style of the firm is a result of global market and international ambitions of the
company This is because transformational leadership style creates a workforce which
ensures continuous growth of the company to become a leader on a global scale.