Global Business Environment

This report explores the global business environment, focusing on key factors driving globalisation and the strategic complexities faced by companies in the international marketplace. It discusses the influence of globalisation on organisational governance, culture, functions, and decision making. The report also examines the impacts of sustainable and ethical globalisation on organisational functions. Additionally, it covers different decision-making techniques for effective global operations, routes for internationalisation, barriers faced, and strategies to operate in the global business environment.

Global Business
Environment

Table of Contents

INTRODUCTION
Global business environment is considered as the refers to the area where two or more
companies works with each other at international marketplace in order to increase their
profitability. It is mainly consist of macro and micro environmental factors that could influence
their operational areas as well as their performance (Alkhafaji and Nelson, 2013). The current
report is based on SASOL Limited, belongs to South Africa and deals in chemical and energy
sector. The company is already having presence at many international locations and placing its
efforts towards expanding its operational areas in other nations too. This report will include
description on key factors that drives globalisation. Furthermore, explanation will be given on
strategic complexities associated with operational activities experienced by companies dealing at
international marketplace. Later on, it will include information on influence of organisation's
functions, culture and structure on its business activities working at international market place.
At last, information associated with the influence of globalisation over company's decision
making and its strategy will going to be discussed in effective manner.
TASK 1 & TASK 2
PPT

TASK 3
P3 The influences of globalisation over the organisational governance along with its culture ,
functions, leadership and structure
Globalisation places influence over company’s leadership, culture, structure, functions and
governance. With reference to SASOL Limited, it can be said that its influence of globalisation
over its governance can be seen in the form of changes in legislations, company’s policies and
working practices. They are also changed according to the requirement of foreign country and its
legal preferences (Eden and Ackermann, 2013). While taking leadership on consideration, it can
be said that its managers will be required to go democratic leadership style as in international
market place it is seen as most feasible approach that will help them in succeeding in quicker
manner. Whereas, influence of globalisation on function of SASOL can be seen in the form of
changes. Here, marketing function is required to get modified as per new marketplace. Also,
Human resource function of this company has to hire more number of workforces so that they
can easily execute organisational work in quicker manner.
Apart from this, it can also be said that globalisation will also place influence over culture
of SASOL Limited. This is because; when this company will expand in international marketplace
they will surely have to acquire cultural values of the operating nation. Along with this, they
should also provide value to culture of all employees for encouraging them and realising them
that they are valuable asset of company (Elbanna Andrews and Pollanen, 2016). Influence of
globalisation on organisational structure seems to look negligible. This is because; at current
state the company uses functional structure which will be fine if they expand their business in
international marketplace.
P4 Major Influences of sustainable and ethical globalisation over functions of organisation
Globalisation is considered as the practice of transfer of goods and services in different
nation. It is essential for business associations working at international marketplace to execute
their business activities in ethical manner. Usage of ethical practices will allow them in
executing their work of each and every organisational function in appropriate manner. Here, it
can be said that HR manager of the SASOL Limited should hire employees on the basis of their
skills and knowledge. They are also required to opt right recruitment method that does not
include any wrong practice. On the other hand, it can also be said that marketing department of

the SASOL Limited should go for effective promotional technique that does not harm national
values or individuals values. This will allow them in influencing interest of customers in
international market hat will also enhance their sales performance.
M3 Critically evaluate about the influence of global market for application of different theories
and models related with the organisational culture and its structure
SASOL Limited is carrying out its operational activities in various nations at global
scale. It can be said that there are several influential factors of that could place impact over
operational activities of this company. These factors can easily be analyzed with the usage of
Hofstede’s cultural framework (Khan and Khalique, 2014). This model is consisting of six core
dimensions on the basis of which culture of the nations can easily be analyzed. Explanation of
these dimensions ion present context is described below in effective manner:
Power Distance Index: The major emphasis of this section is on inequality that is present
within the society at different regions. Here, Higher PDI of the host nation in respect of foreign
country, it is seen that major emphasizes of company is on its centralized operations. Also, large
gap is also explored in responsibilities and authorities.
Individualism and collectivism: It simply states that in which manner work of company is
accomplished. In context of SASOL Limited, it can be said that here host nation gives preference
to individualist society. This means that employees focus on winding up their work at their own
level. Also, collaborative team efforts are negligible (Kirchoff, Tate and Mollenkopf, 2016).
Masculinity: The major emphasis of this dimension is that whether society gives
preferences to competitions achievement or not. In context of SASOL Limited, its managers will
be mainly indulged into decision making process and remain assertive in order to accomplish
their work in effective manner.
Uncertainty Avoidance Index: In this dimension, individuals belonging to host country
prefers to the control their own life in such a manner that is supportive in avoiding uncertainties
in the near future. Managers of SASOL Limited should not control their life and also remain
open towards new experiences in order to grab maximum opportunities for their business
operations.
Long term orientation: This dimension mainly seen as the approach that is adopted by
companies at the time of decision making. With reference to the respective business entity, the

major emphasize of this company is on long term expansion in different nations so that they can
maximize their market share and generate higher revenue.
Indulgence: The main focus of this dimension is on analyzing to which extent individuals
can control its desires and expectations. Here, while relating it with SASOL Limited, the
respective business enterprise tends to look indulgent. This is because, its manager’s manager
believes in taking positive decisions in optimistic manner in order to longer benefit.
Apart from this, the managerial department of SASOL Limited also gives emphasizes on
McKinsey 7s Model for the main purpose of improvising their company’s culture, governance
and structure (Liu and Wang, 2014). McKinsey 7s framework is consisting of in total of 7
elements among which 3 of them comes under hard elements whereas other 4 belongs to soft
category of elements. All of these elements are described as below:
Hard:
 Strategy(Governance): Managerial team of SASOL Limited make use of strong and
strict rules and regulations in order to ensure that all business of company will be
accomplished during their global expansion within limited time frame.
 Structure: The Company is using functional organizational structure for better execution
of organizational work. This also guides them about divided work among employees as
per their knowledge and skill.
 System: Managerial team priorities their own system for managing their work in
international market place.
Soft:
 Shared values: SASOL Limited follows their core ethical values in their working
practices so that none of employee indulges into wrong activity (Noble and Nwanekezie,
2017).
 Skills: HR department of SASOL Limited selects workforce according to their skills and
knowledge.
 Staff: The Company is required to increase its number of workforce so that operational
activities of SASOL Limited can be accomplished as per international requirement.
 Style: Management team of SASOL Limited makes use of democratic leadership style
within the company so that workforce can work freely at workplace.

TASK 4
P5 Different ways for performing decision making in order to work effectively at global level.
SASOL Limited is expanding its business operations with the same sector at international
marketplace. For this, they are required to take various kind of decisions so that they can easily
succeed over there. There are numerous of ways through which management of SASOL Limited
can improve its decision making whole working at international market scale. These ways are
described as below in appropriate manner: Brainstorming session: This session is concerned as the combination of problem solving
as well as group discussion session. In context of SASOL Limited, its manager engages
all employees who are selected for handling international work. This will directly push
employees to work effective on their own skills so that they can take effective and right
decision in peak work load too (Okeke, Onuorah and Jakpa, 2016). Multi-voting: It is identified as the traditional technique in which business association
mainly focuses on engaging maximum possible workforce in decision making process. In
this, these employees are asked to give vote for their expressing their views on the same
question. In context of SASOL Limited, its manager could also go for this way while
taking major decisions in order to take rightful decision with the support of employees by
including their views. This will support them in taking right decision at right time.
 Nominal group technique: This technique mainly states that manager divides overall
organisation in certain groups (Owolabi and Makinde, 2012). The main reason behind
this is to generate ideas in appropriate manner. With reference to SASOL Limited, it can
be said that its managerial team could opt this technique as an effective way so that they
can easily take right decisions at international market place. This will also allow them to
enhance their knowledge on various sort of ideas that could be used for the same area.
From the above described ways in the form of techniques, it can be said that SASOL
Limited could go for multi voting and brainstorming session while expanding their business
activities at international market place. This will also contribute in taking rightful decision that
will support in their success.

P6 The various routes that an organisation can adopt for internationalisation and barrier involve
in this practices.
SASOL Limited is looking forward to expand their business in international marketplace.
For this, they will be required to go for specific market entry mode that will allow them in
executing their operational activities effectively in that particular nation. Some main routes that
can be adopted by this company are explained below:
Licensing: This method mainly provides license to some other company to operate their
business in different nation with their respective name only. In context of SASOL Limited, this
company can go for this route by finding out right company who could easily carry out its
business activities without affecting its brand name. The main drawback of this method is that it
gives complete power to licensor in terms of all business decision. Thus, there are probable
chances that they might misuse it (Pathak, Hoskisson and Johnson, 2014).
Exporting: Exporting is considered as the method in which company export its products
and services to different locations or nations. With reference to SASOL Limited, the company
could opt this route by supplying its oil products in international marketplace. The main
drawback or barrier which might be faced by this company is legal obligations in items of export
in different nations.
From the above discussion, the company can go for licensing route in order to enter into
international market places.
M4 Critically evaluate major barriers found while executing business internationally and provide
recommendations over ways to overcome.
The main barriers that might be faced by SASOL Limited at the time of expanding
business in international marketplace are governmental legislation and increasing competition.
While emphasizing on competition this company can reduce its impact by delivering high quality
of oil to its customers in comparison of competitors at lesser prices (Scott, 2013). This will
support in influencing interest of customers towards them for longer period of time. Along with
this, it can be said that for reducing effects of legalisations, it is suggested to SASOL Limited to
enter into that nation only where they legal obligations are limited.

D2 Critique strategies to be adopted in order to operate within global business environment along
with the recommendations over it
SASOL Limited is required to go for democratic leadership approach at the time of
operating its business in international marketplace. The next strategy which is required to be
opted by this company is to take its experienced employees in new nations and provide them
superior powers. This will allow company in trusting employees and will also ensure that all
decision which will take in the operating country is good for the company. It is recommended to
the SASOL Limited to engage all employees in decision making process in order to enhance its
value of decision (Shi, Sun and Prescott, 2012).
CONCLUSION
According to the above mentioned discussion, it is concluded that the concept of
globalisation is beneficial for all kind of businesses as it provides them opportunities at
international marketplace. Also, digital technology is identified as main factors that drives
organisation's success in positive manner. The main challenges which are faced by company
while expanding business at international marketplace includes upgrading technology and
requirement of finances in order to acquire that technology. Adoption of PEST analysis allows
companies in analysing influence of external factor so that its influence could be identified and
appropriate solution can also be addressed for reducing negative influence. Along with this, it
can also be said that external factors also influences decision making process of the company.