This report discusses SASOL's governance, culture, and structure using McKinsey's 7S model. It explores the impact of these elements on global functioning and how SASOL adopts them. It also covers Hofstede's dimensions of culture, sustainable and ethical factors, and strategic decision-making with reference to risk and diversification globally.
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Unit 18 Global Business Environment
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Table of Content. INTRODUCTION...........................................................................................................................1 PART 1............................................................................................................................................1 PART 2............................................................................................................................................1 Describe the governance, culture and structure for the company by the application of McKinsey's 7S model..................................................................................................................1 The way these elements effect global functioning and the way company adopt in working globally........................................................................................................................................3 Hofstede’s Dimensions of Culture for evaluating the influencing culture..................................3 Sustainable and ethical factors valued by the company globally................................................4 Strategic decision making with the reference to risk and diversification globally......................5 Describe the range of strategic global expansion routes used by the company...........................5 CONCLUSION................................................................................................................................6 REFERENCES................................................................................................................................7
INTRODUCTION The global business environment can consist the pathways in which an organisation can trade across nation. It is generally illustrated within the form of economic, cultural, political as well as the legal variations within the entire countries. It can generally mirror to make impact of the utilization of resources as well as their abilities for operating within the home environment of the organization. In this, the report is based on SASOL organization which can provide a description over McKinsey's 7s model, the pathway in which it can make impact over the global functioning, the pathways by which an organization can adopt with the global functioning as well (Courtney, 2020). In this, it can also include a Hofstede's dimensions of ethical, cultural and a sustainable component for the global markets as well, the specific strategic making decisions with the risk as well as the diversification universally and can analyse the range of strategic international expansion which can routes for a company as well. PART 1 Covered in PowerPoint presentation. PART 2 Describe the governance, culture and structure for the company by the application of McKinsey's 7S model. The model is generally applicable for measuring the structure of an organization that can tells their effectiveness within the specific seven components that are classified into hard and soft as well. These such components are as mentioned below: Strategy:It generally refers to a plan ofemployers that is madein an effort to compete with inside the market. It is mainly carried out for analysingthe movement planfor buyinggain extra than the competitors,it's farassociated with an organisation'sundertaking and vision as well. It is atoughdetail so in context to SASOL Ltd., theygenerally do notwant to compromise withinthe feein any other case theirmerchandise canend up inferior (Duffy, 2021). Structure:Thisparticularly refers back to amanner abusiness enterprise is forming the teams, departments and the hierarchy levels as well. Thisadditionally can define in precise a person's responsibilities andresponsibilities of members of the family in a company. It is generally atoughdetail and the organization such as SASOL Ltd.must separate theirprovider's vicinitysensiblein order that the geographicalelementscould nothave an effect on them much. 1
Shared values:The shared values can express an approximations of an ethics of the enterprisewhich can beaccompanied inrunning of allpersonnelwhich might beassociated with the important thing values given in mission,imaginative and prescient and objectives. It is a tenderdetail and SASOL Ltd. istonshigher inconstructing the valueshowevercognizance on sustainabilitybecause thetradershad beenworried of environment. Style:Within this, this particularform ofmanagement is mainlycarried outvia the way of means of thechief with inside thephrases ofscenarioconfrontedvia way of means of the employees. Italso can becalled behaviour of thepinnacledegreecontrol thatbureaucracy a code of behaviourof theirwayin theircommunique andchoice making. It is atenderdetail and SASOL's leadersought togrowthenter inpaintings offline and the forthe netemployees they ought tomanage themvia way of means of dividing them intogreater teams (Kanger, 2019). Staff:They are theemployees andall of thehumanswho are representing acorporation all collaborativelyof their abilities. As per the SASOL Ltd., they generallyhave tohave interactionon line with their staffs for recognising theirlifestyle and beingobviousin keeping with their hierarchy. Skills:It is an ability,information orperformance of anemployee ina specificproject given. Italso can beknown as as competency of abusiness enterprise whichhas a tendency them to fulfilmentin keeping with their objective. In addition to this, a SASOL Ltd.mustenhance the staffswhoare functioning fromdomesticvia way of means ofschooling them. System:This represents to the set ofhabitualsports as well as thetechnique which personnelhave toundertakein order to finish their tasks. It can mainly define an infrastructure of theagencythis isworried inwaftof labouraccordinglyit's miles adifficult element. In addition to this, SASOL Ltd. generallyhave tolisten within the cyberprotectionin order thatthey may invitework at home togrowth their productivity as well (Kasheeta, 2019). The way these elements effect global functioning and the way company adopt in working globally The elements whichare generallyby hook or by crook mainlyassociated with thepeople operating in anagency. In this, SASOL Ltd.cannot produce themeffortlessly, if they are determined toinstallation intoa brand newmarket then theywantto pay attentionnicely on those such effectiveelements. They are generally being measuredwhilethey'renow no longer 2
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greensufficient for merger as well as acquisitionbecause themost important chances are to fail. Thisends in failing withinthe subculture as well as the shared values ofeach of the companies. The SASOL Ltd. is directingcloser towards interacting their staffsgreater onan on-line mode forthose people who generally work at homein order thatthey mightget control theirsubculture and as manypersonnel are leaving so early so their HRcrew is successfulsufficient torentthe brand new ones. They specifically share their values well so that there are generally no alterations needed in that, but they must use more sustainable pathways for protecting the environment thus, it will attract more investors towards organization as well. Thedifficultfactors cowl the specific elements ofenterprise and SASOL Ltd. caneffortlessly produceshape as well asstructuresamongst them. Theenterprisecan ought to make theirmerchandise muchgreater high pricedin addition to theyought to getgreatermarketplacestocks and compete on costs. Structure of theagencyought to be in smallgroups to make decision-making in awell-timed manner. Themachine of theagencyought to begreaterthat specialize infamily members with customer,statistics visualisationthroughout theenterprise andinternet application optimization (Khiewet. al.,2020). Hofstede’s Dimensions of Culture for evaluating the influencing culture. The Hofstede’s Dimensions of Culture is generally a structure for acknowledging the specific diversified cultures within several nations as well as the manner of doing such businesses as a culture generally has make an influence over the organization. The dimensions of culture is mainly classified within the six cultures and are as detailed below: Power Distance Index:In this, it generally considers theapproaches todegree the inequality andelectricity. Theshape of SASOL Ltd. is generally democraticno matter being autocratic and there aremuch lessversionsthe variouselectricity as well as the authority of seniors and juniors as well. Theyspeakat once andmake a contributionof their notions. Collectivism vs individualism:In this, it mainly represented with inside theway societies haveresponsibility and are their dependency over the teams. In context with SASOL Ltd., the employees are self-dependableand featurerobust self-desiresin addition to self-achievement. Theygenerally recall to beunbiased as well. Uncertainty Avoidance Index:In this, it canhave statedthe premiseof putting up with an uncertainty and inexactness as well. Theexcessive index ofit will bestruggling low uncertainty and vice versa. In context with SASOL Ltd.it mainly incorporates an openness as well as that 3
they can take theirpaintings as apossibilityin relation withenforcingthe modern notions so the business enterprise can accept their suggestions as well(Kolossvary, Dory and Feszty, 2020). Femininity vs Masculinity:It is known as thedistinction indifficult andsmooth asit is far linked with the society's prioritize theirachievement behaviour in sexuality, equality and attitude. Masculinityis thought forexclusive gender, roles, assertive and wealth improving. Femininity isshaped of fluid gender roles, nurture andgreat of life. Thepersonnel of SASOL Ltd. aregreater masculine asthey may beaggressive andinfluenced which canacquire the organisational goals. Short term vs long term orientation:In this, the longtime period orientation can take time andthey may becharacterizedvia ways of means oflong time growth, perseverance as well as persistence. Within this, the Shorttime period orientationwould not take thatlots time and are characterizedvia way of means ofbriefeffects andconventional values. In context with SASOL Ltd., it isgreater intoquicktime period orientation as they can collaborate withvarious different organizations across nation. Restraint vs Indulgence:In this,indulgence can refer to thereputation of a society ina laugh and enjoyment as well. Whereas, the concept of restraint can specifically refer to a society this is being regulated ina few rules. Theorganisation is having a dissipatedsubculture as their employees havebendy time as well as analternative for driving theshapedomestic which additionallynow no longermake influences thehigh-satisfactory of drivings as well. Sustainable and ethical factors valued by the company globally. Environmental and regulatory considerations:In this, SASOL Ltd. generally needs to be more concentrated over the environmental aspects as well as can select some specific standards for not polluting the states or cities by simply managing their wastage while manufacturing goods. Manufactured trash pollution:In context with SASOL Ltd., the organization is somehow careful in their managing their wastes as they can care for their society and sustainable norms as well(Loonam, 2021). Safe working conditions: In this, SASOL Ltd. as an organization is caring for their every worker as well as can have formed an effective lifesaving rules and thus can attains a safe working environment for them as well. 4
Ethics and corruption:In this, paying bribes is specifically avoided within some of the countries as followed at even greater authorities, which can lead to downgrading the economy of the country more indirectly. In this, SASOL Ltd. always strictly forbid their workers in order to pay as well as accept for the bribes. Strategic decision making with the reference to risk and diversification globally. Thespecificstrategicselectionmakingaremainlyassociatedwiththemission, imaginative and prescient as well as the objectives of an organisation. There area number of the standards onworldwide diversificationwhich arethe use of the company's abilitiesin addition to gettinganaccesstowardsmorerecentassetsaswellasthegenerationwithinsidethe marketplace ofvarious differentnations. There arebenefits from economies of scale as well as canloweringthe producingfeevia way of means of arranging theassets fromvarious different nationsin addition to occupying the lowfee laboursvia way of means of diversifying. In this, getting tounderstand the newreviews as well as theinformation’svia merger and acquisitionin addition togrowing theperformance with inside theoverall performance of the company. Therefore, in diversificationit's milesimportant forSASOL Ltd.to use theeffective 5styles of rangeswhich cancompare risks,examine them,shape plan,tunechance as well asmanipulate themvia way of means of makingchoices. Thus, globalisationhas a tendency to alternate the effective management styles,can lowerworldwideexchangelimitations as well as make the strategicchoicesin addition toput into effect them (Raghav, 2022). Describe the range of strategic global expansion routes used by the company. Theworldwidegrowth isfrom time to timeelaborate for firms. Thegroupsdo notneed tocharacteristic in anexcessiveoppositionmarketplacein order that they canenlarge asit's miles in ahighermanner toreap the increaseapproaches. There are generally the fiveworldwide growthtechniques thatmay befollowedwith the aid of usingbusiness enterprisethat are protecting amild footprint,obtaining aclean productapproachwith the aid of usingtrying out the product with inside thefocused audiences, makepals for choice making as well as torealize approximately the opportunities as well (Tsai and Wang, 2019). CONCLUSION From the above discussion, it has been concluded that global business environment is generally essential for both nation and businesses itself. It can offer a comprehensive platform in 5
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order to grow more customers of the services and products as well. It mainly ensures the development and growth of the nations and businesses as well. In this, the multinational companies have an influence over the quality of life for various people across nation. 6
REFERENCES Books and Journals: Courtney, R., 2020.Strategic management in the third sector. Bloomsbury Publishing. Duffy, E., 2021. Key drivers in digital marketing management. Geschwill, R. and Nieswandt, M., 2020. Cracks in the World View of Classical Management. InLateral Management(pp. 39-61). Springer, Cham. Kanger, L., Geels, F.W., Sovacool, B. and Schot, J., 2019. Technological diffusion as a process of societal embedding: Lessons from historical automobile transitions for future electric mobility.Transportation Research Part D: Transport and Environment,71, pp.47-66. Kasheeta, T., 2019.Challenges encountered in the implementation of the strategic plan 2014- 2018: A case study of Nampower (PTY)(Doctoral dissertation, University of Namibia). Khiew, K.F., Chen, M., Shia, B.C. and Pan, C.H., 2020. The Implementation of Adopted Balanced Scorecard with New Insight Strategy Framework for the Healthcare Industry: A Case Study.Open Journal of Business and Management,8(2), pp.600-627. Kolossvary, T., Dory, T. and Feszty, D., 2020. Formula SAE as a Model Environment to Innovate Automotive Product Development.Economic and Social Development: Book of Proceedings, pp.283-293. Loonam,J.,2021.TowardsDigitalTransformation:ImplicationsforStrategicChange. InReviving Businesses With New Organizational Change Management Strategies(pp. 56-70). IGI Global. Raghav, S., 2022.Coaching-Style Leadership’s Role in the Change Management Process in MechanisticallyStructuredOrganizations:ANarrativeInquiryStudy(Doctoral dissertation, University of Phoenix). Staples, C., 2019.Project Initiation and Army Design Methodology: A Structured Approach to Project Success(Doctoral dissertation, The College of St. Scholastica). Tsai, S.B. and Wang, K., 2019. Using a novel method to evaluate the performance of human resources in green logistics enterprises.Ecological Chemistry and Engineering,26(4), pp.629-640. Vătămănescu, E.M., Alexandru, V.A., Mitan, A. and Dabija, D.C., 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. Vetrova, N.M., Ryvkina, O.L. and Gaisarova, A.A., 2018. Problem aspects of organizing the process of strategy implementation of a construction company. InMaterials Science Forum(Vol. 931, pp. 1276-1280). Trans Tech Publications Ltd. 7