Global Business Environment: Influence on Sasol, Strategies for Expansion and Sustainability

This report evaluates the influence of global business environment on Sasol, factors influencing its operations, strategies for expansion and sustainability, and ethical considerations. It also discusses strategic decision-making and critique strategies for global business.

UNIT 18 – GLOBAL
BUSINESS ENVIRONMENT

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Evaluate the influence of organization........................................................................................4
Factors influencing the operations of 'Sasol' organization:.........................................................5
Organization has adapted to working in a global market............................................................6
Hofstedes cultural of dimensions.................................................................................................6
Ethical and sustainable factors that the business to consider in global market...........................7
Strategic decision-making in relation to risk and diversification in a global .............................8
Critique strategy that can be adopted for global business environment-.....................................9
Strategic global expansion routes available to the business........................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Global business environment can be abridged as a constellation of different factors which
may bring sort of influences on the performance of an organization. These factors are known as
global business environment as a whole (Morrison, 2020) The report is intended to articulate
deeper understanding pertaining to organizational structure, culture and governance pertaining to
SASOL which is a global organization. To perceive different notions, some models such as
McKinsey’s 7S, and Hofstede's culture dimensions would be applied in attempt to bring deeper
understanding of the topic.
With the progress of time, the ethical and sustainable factors are also notching up their
presence in the business environment. These factors are to be imparted in context of the SASOL.
In attempt to bring deeper understanding of the issue. At the end, of the report a critical
evaluation would be presented depicting fully fledged picture of the entire analysis.
MAIN BODY
Evaluate the influence of organization
Every organization has the different goals and objectives. The variation of th goals
consist the cultural and structure of organization. The organizational structure is referred as the
framework which helps business to determine its communication, line authorities and allocate
the rights and duties. The organizational culture is referred as the set of beliefs, values and
assumptions which shared by the member's of company. SASOL company is the high
organization business. The business will apply the McKinsey’s 7s model to evaluate the
influence of SASOL limited structure and culture (Dovis and Zaki, 2020). SASOL company apply
this mode within the organization that seven factors such as strategy, structure, systems, are
considered as the hard. Styles, skill, and shared values are considered as the soft.
 Strategy: it is defined as plan which helps the business to obtain a competitive benefits
and retain the existence in the competitive marketplace. The company try to obtain the
competitive advantages regarding the culture, structure and governance.
 Structure: it refers as the accessibility and business structure of various units and
business division to ensure he proper accountability. SASOL company operate in the
different regions so, it helps in determine the various structure at the various regions.

 Systems: SASOL require focusing on improve the internal system of business such as
customer relationship management, data visualization, risk management and web opp
optimization across the business. SASOL put the robust systems for the employees to
provide them work from home so employees get the both online and physical
environments. It helps in improve the employees productivity and enhance the cyber
security d data security.
 Staff: SASOL need to take step for improve the human resources such as recruitment and
remote on-boarding because of pandemic and also build the open chat for employees
because it helps built the transparent culture.
 Skills: SASOL can also build the structured training and development programs for
employees and provide them work from remote locations. Company can hire the talented
employees and challenging employees.
 Shared values: Business need to build the business models that based on the vision,
mission and core values the business also need to focus on the sustainability of business
because the investors of business put the lot of stress on societal, environmental and
governance issues.
 Styles & culture: The leadership styles are required in the remote and physical senerio
that are a completely different (Ryan and Silvanto, 2021). SASOL company can adopt
the inclusive and collaboration forms of leadership to improve the workflow with in the
organization.
Factors influencing the operations of 'Sasol' organization:
The macro environmental factors impact on the chemical manufacturing such as political,
legal, economics, technological, social and environmental factors. Company operate the dynamic
environments where it influences by the technological changes, social trends, and legal system.
 Political factors: political factors influence the Sasol company with governments
policies such as armed conflicts, regulatory practices, governance system, political
stability.
 Economic factors: economic factor also influence the sasol, company with inflation rate,
economic cycles, economic performance. The availability of the core infrastructure with
developments helps in improve the business environments.

 Social factors: social factors also impact the Sasol Ltd. In societal norms and hierarchy
because society is different from the home market of sasol (Eddleston, Banalieva and
Verbeke, 2020). So company need to make the team that helps in understand the societal
norms for better customer service.
 Technological factors: Technology also impact on the Sasol company because the latest
technologies are based on the innovation which implement by the business competitors
so, it directly impacts within the organization.
 Environmental factors: the customer awareness among the customer also put
environment factors at the sasol company strategy. Customer expects form sasol with
legal standards and also become responsible for stakeholder in community.
Organization has adapted to working in a global market
The business of sasol has strategically changed its long term values base growth and
development by the distribution of the different global operations across a geographical area. The
business has efficiency and effectiveness went the global since its inception over the years by
adopting the various strategies such as multi domestic, international and transactional strategy as
the business can maximize the capabilities and abilities to execute the organization in the local
and international markets (Agrawal, 2022). To operate the types of strategy business should be
intensely connected with the local and international markets with the better communication
ability across the functions and regions.
Hofstedes cultural of dimensions
The hofstede cultural dimensions is the framework which used to understand the difference in
the business culture across the global and to business also one across the different cultures. There
are main categories which helps in define culture such as power distance index, masculinity,
uncertainty avoidance index and collectivism vs individualism (Cox, Pinfield and Rutter, 2018).
Power distance index:
It refers as the difference in th work culture as per the power delegated to the worker. The
sasol business which believing in team and leaders who believing to expect the more. All
employees have the equal treatment from the business management with hierarchical and non
hierarchical.
Uncertainty avoidance:

In the cultural values is dimension is either structural and ambiguous in nature. It is based on the
society extent of going on avoiding or uncertainty in its functioning. In this culture, the one
should act the preference for the predictability, structure and order.
Masculine & feminine:
This dimension explains the cultural orientation towards the degree of the gender roles in
the workplace. It should not be misunderstood with the gender values. A some places the men
are more ambitious regarding work and some place the low masculine culture because that types
of countries promote the female centrism.
Identity:
This dimension has the tow variations such as individualism and collectivism. It is
referred as the types of identification with a cultural associate with it individuals within the
organization.
Time orientation:
The degree of the time orientation id relate with the cultural attitudes towards the time
and task as well as relationships. Some cultures are specially focused on the short term goals,
promptness, quick results in work. Furthermore, there are may opposite cultures such as long
term success, patience and value persistence (Kyurova and Kiryakova-Dineva, 2019).
The sasol business values its long-standing organization connection with th international
partners and serves products and services as a volunteer for improve the cross cultural work
beliefs and values. Although, global chemical and energy corporation incorporates all the
cultural attribute in its company approach but is more side towards the time orientation cultural
attribute that values the both interpersonal relations and task focus.
Ethical and sustainable factors that the business to consider in global market.
Every business need to aware about the environmental condition within the marketplace. The
business need to consist the sustainable approach in the business activities which must be carried
out. This helps in lead the business values added contribution to nature and society (Gechkova
and Kaleeva, 2020). The sasol company should follow the sustainable such as reduce the carbon
uses, safe operations, growth and development with shared values,
Ensuring safe operations:
The business goals is to ensure the business acknowledges in the social perspectives with
the business operational process such as health standards for employees and quality products and

services for customer and ensure the safe standards for communities within the organization. In
this context the sasol are practised this strategy with the safety protocols like HSI. The business
operational sustain abilities also consist the safe production management for business.
Reduced carbon use:
Energy sectors are used in these types of organization to manufacture the gaseous
chemical based products which increase the high carbon so company need toe consider the
carbon reduction process for the low toxic emissions (Milia, Giralt and Arvanitis, 2022). It helps
in clear air and skies as well as safer for the environments which can attract the more customer
towards the business.
Growth with shared values:
It is the framework which helps in create the business solution to environmental and
social problems. It leads from the practices and policies that contribute to competitive benefits
which strengthen the communities in which business operates.
Strategic decision-making in relation to risk and diversification in a global
Value of strategic decision-making
The action of making the strategic decision-making in the business environments is most
important methods for managing the challenges in the business. It allows the business to
effectively deal in the critical condition and bring the changes according the challenges. In the
business, it is the damage control tools in global business senerio where the firm actively manage
the situations. The sasol risk centric decision-making approach is issued within the organization
with proper mixture such as financial, intellectual, natural and social relations.
Evaluation of strategies
The company evaluate the strategies with the methodic that can be implemented as the
per the need like focus on the company goals sustainability and revising its operational model.
Executing of selected strategies
The strategic decisions making selection consist the risk assessment which followed by
the practical application for the same business challenges. The challenging events can be control
through the relevant strategies (Ukko, 2019). The company sasol main role if long term
objectives complete the reduction of GHG emissions for global firms.

Critique strategy that can be adopted for global business environment-
Such approaches which help a business to get operated at global level. These elements are known
as critique strategies. These are the strategies-
Resource allocation- there is hyper need to ensure better resoruce allocation in order to be
remained productive.
Competitive advantage- in global market there is need to have such a mechanims which helps
to hike competitive advantage.
Synergy- this can be imparted by the organization. It may come up with collaboration strategy so
can hike its synergy.
Strategic global expansion routes available to the business
The strategic global expansion for the SASOL business to achieve the global
diversification such as licensing arrangements, mergers and acquisition.
Licencing arrangement- this is the method which helps to enhance the organizational ambit. By
having licencing the expansion can be carried out.
Franchise approach- This is the method where new franchise are being opened. By least efforts
an entity can enhance its market approach.
Merger and acquisition- this is one of the most affective route. The organization may go with
some different organization in collaboration. By this method, with the least investments and
efforts can augment market diaspora.
Business diversification- There are range of ways but one of the most dynamic way is
diversification where an organization may come up with its diversification policy. Where
diversification will help entity to introduce new items so would be able to make new customers.
CONCLUSION
From the report above, it can be abridged that the performance of an organization which
is getting operated overseas depends on range of factors and these factors are known as global
business environment. The report has presented great picture of these factors and their impacts
on the organizational performance. For brining sense of clarity, some models were imparted such
as McKinsey’s 7S model, Hofstede's model etc.
At the end of the report a critical evaluation was presented showing strategic expansions
for the company. Where the outcomes drowned form the evaluated were instilled in attempt to

make it fostering and helpful for the entity in installation of handy practises and aligning with the
global business environment.

REFERENCES
Books and Journals
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