Global Business Environment: Key Factors, Strategic Complexities, and SASOL's McKinsey's 7 Model Application

Global Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
PART A...........................................................................................................................................4
Analyse the key factors which drive globalisation.................................................................4
Determine the strategic complexities associated with operating in a global environment.....7
Challenges and complexities globalisation brings to an organisation such as SASOL.........8
PART B............................................................................................................................................8
The application of McKinsey's 7 model discusses the governance, structure and culture of the
company SASOL....................................................................................................................8
The effect of global functioning and way which is adopted by the company for working
globally with the help of these elements................................................................................9
Hofstede’s Dimensions of Culture for evaluating the influencing culture...........................10
Sustainable and ethical factors valued by the company globally.........................................10
Strategic decision making with the reference to risk and diversification globally...............10
Describe the range of strategic global expansion routes used by the company...................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The global business environment generally involves the ways in which a company can
effectively trade across countries. The organization can reflect to make an influence of utilization
of the resources and their capabilities for functioning in the homely environment of an
organization. the report is generally based over SASOL company that can give a description
upon McKinsey’s 7 model, the pathway in which it can make influence on the global business
functioning’s, the way through which a company can acquire with the operations also (Mina,
2020). In addition to this, there is also a discussion about a Hofstede’s dimension of ethical,
cultural as well as a sustainable element for the global markets, the effective strategies can make
effective decisions with having risks and the modification more universally as well as can
measure the range of strategic international expansion that can enrooted for the organization
more efficiently.
MAIN BODY
PART A
Analyse the key factors which drive globalisation.
PESTLE analysis of SASOL is a strategic tool which is used to analyse the macro-
environment of the company. PESTLE generally stands for Political, Economic, Social,
Technological, Legal and environmental factors that can effectively impact over the macro-
environment of the organization such as SASOL. In this, the approach can provide improved
information about the functional challenges that the SASOL will face in the recent macro-
environment as compared with competitive forces. The analysis can specifically help the
company to make some strategic decisions perfectly, by simply keeping in view with some of the
external trends and the elements of an external environment. In addition to this, the analysis of
the company should be taken into account the crucial aspects of the extrinsic environment that
can impact the industry also. Furthermore, the discussion about the elements are provided below:
Political elements: The political elements can play a crucial role in determining the
elements that can make impact over the company like as SASOL on its long-term profitability
among several market or across the country as well. In context with SASOL, the political
elements can exert a great impact over its long-term sustainability as well as the profitability of
the chemical start-up over an expansion spree. In this, the key success within the dynamic

international business environment is generally to diversify the systematic risks. In addition to
this, the political environment of the country specifically comprises multiple components. The
SASOL a chemical Start-up over an expansion Spree generally required to consider the
following political elements during the strategic planning procedure. In addition to this, the
specific political factors which can make impact over SASOL are as mentioned below:
 Political stability.
 Modifications within policies.
 Protests or pressure groups and governance system.
 Corruption and bureaucracy.
 Taxation, restrictions in trade and an intellectual property protection.
Economic elements: For the organization, it is essential to understand the economic elements
like interest rate or foreign exchange, inflation and saving rates, labor market conditions and
many more as they can identify the entire economic conditions of the country. In addition to this,
having a detailed knowledge of the economic environment which can aid SASOL: The chemical
to estimate the growth trajectory of the organization. Furthermore, there are some of the
economic elements which are required to be considered by the provided organization in order to
make effective informed decisions and are as mentioned below:
 Business or economic cycle stage.
 Interest/Inflation/ exchange rates/ employment.
 Economic structure.
 Financial markets efficiency.
In this, the economic development of the country can directly impact the performance of the
organization. In this, growing economies can offer broad ranging growth opportunities to the
organization (SASOL). Simultaneously, it is essential for the organization to understand the
industry lifecycle stages as well.
Social elements: In this, the alterations within the demographic patterns such as aging
population, migration trends as well as the socio-economic variables generally have a paramount
necessity for the international business company such as SASOL. In this, analysing the
demographic characteristics can aid the organization in selecting the accurate market segments
with great potential. The business and the specific marketing strategies are mainly impacted by
the migration. It is quite essential for the organization to effectively understand the general