Globalisation and its Impact on SASOL: PESTLE Analysis, McKinsey's 7s Model, and Recommendations

This report covers the impact of globalisation on SASOL Limited, including PESTLE analysis, key drivers of globalisation, and the impact of digital technology. It also includes McKinsey's 7s model, Hofstede's culture dimension, and recommendations on how to overcome challenges.

unit 18

Table of Contents
INTRODUCTION ..........................................................................................................................3
PART 1............................................................................................................................................3
Concept of globalization.............................................................................................................4
PESTLE analysis to illustrate the broader and global influences on an organisation such as
SASOL........................................................................................................................................5
key driving factors of globalisation.............................................................................................7
Impact of digital technology upon globalisation........................................................................9
Challenges and complexities globalisation brings to an organisation such as SASOL............10
Recommendations on how such challenges can be overcome..................................................11
PART 2..........................................................................................................................................12
Mckinsey's 7s model on SASOL...............................................................................................12
Elaborate the evaluation for the explained global operations and ways in which organisation
has managed operations in global market................................................................................13
Applying Hofstede’s Dimensions of Culture theory.................................................................14
D1 Critically evaluate the global business environment, including the opportunities and
challenges faced by organisations.............................................................................................15
Analyse the ethical and sustainable factors in organisation for global market.........................16
Critical evaluation of strategic decision making in relation to risk and diversification in a
global context............................................................................................................................17
Evaluation of the range of strategic global expansion routes...................................................18
CONCLUSION .............................................................................................................................19
REFERENCES..............................................................................................................................20

INTRODUCTION
Globalisation comprises of managing all the interdependence with the cultural,
economical and the other population through which the commercial and the cross border trading
is managed. This involves all the spreading of the information, technology and other working
across the national borders. It comprise of all the interdependence which is being fostered
globally within free trading. The business environment manages all the external and the internal
business practises in which the functioning and general factors through which the cultural, legal,
social and all other functioning is opted. The organisation chosen in this report is SASOL
Limited which is a energy and the chemical company headquartered in Cape town, South Africa
established in 1950. it deals with oil and the gas chemical integrated energy and have about
30,1000 workers are being working over their(Osinubi and Olomola, 2020). This report will
cover the impact of globalisation with there operations. McKinsey's 7s model, Hofstede's culture
dimension. Further it will also cover the strategic decision making with global expansion.
PART 1
Introduction
Notes:

This PPT will cover the concept of globalisation, PESTLE Analysis, key drivers of globalisation
and the impact of digital technology on globalisation. Further, it will include the challenges as
well as recommendation to it.
Concept of globalization.
Notes:
This involves all the economic strategies in which the cross border relations are being made
through people, service, organisational products, technology and information. The different
aspects in the globalisation is managed through the positive attitude and the effective nature and
working in which all the sociological, economic, cultural and the other alignment and working is
being addressed(Wood and Black, 2018).

PESTLE analysis to illustrate the broader and global influences on an organisation such as
SASOL.
Notes:
Political factor- this manage all the regulations and the laws which are being made in order
frame the laws and the attainable stability through which affective operations are being applied.
as for SASOL Limited this is the positive implication as the oil and gas helps to gain the
maximum consumption and their company carry out effective policy and the strategy through
which uncontrollable favourable cost are being depicted(Usman and et. al., 2020). Economic factor- This is the investment and complies with all the macro elements which
are like the tax rates, saving interest, inflation, exchange rate and so on. All these
accomplish to manage the dependency and the growth in employment rate through which
the purchasing power is addressed. As in SASOL Limited they are majorly affected with
the rise of COVID-19 as this created struggle in exchange rates. Social factor- It involve all the demographic segments in which the social environment is
carried out. This involves all the age distribution, lifestyle, growth rate, cultural barrier,
health etc. as it complies to provide the effect of the changing market trends in the
environment. SASOL Limited have the positive impact on all the social factors as with

the changing dynamic people in South Africa are now well aware about the increase of
the use of oil and gas as this is a major asset in all the companies. Young generation
contemplates to mange the efforts and also the maximization of profit(Geraldo and et. al.,
2020). Technological factor- This involves all the innovation, advancement, operational
activities and the development through which the enhancement of the digitalisation and
the operational activities are made. SASOL Limited manage the development and the
researching through which the support and the growth through social media is managed. Legal factor- this involves all the laws and the legal rules and applicabilities through
which the regulations, norms and the principles are being made in order to maintain the
growth and the complication of legal policies. Some important factors are like patent,
copyright, health and safety at work and many more. SASOL Limited implement all the
adaptive strategies and laws through which the policies are framed and managed.
 Environmental factor- it comprise of all the suitability in the environment and also the
adaptive changes through sustainability. In order to maintain the growth and the
functioning there is required to take certain measures with which all the waste
management is being aligned by lowering the pollution and also through managing the
sustainable changes. SASOL Limited aligns to manage the recycling of the product and
the endurance safety in which the disposing of waste material is made in proper manner
which do not affect the environment(Zajda, 2020).

key driving factors of globalisation.
Notes: Market- This involves all the domestic areas in the market where they try to manage the
opportunities in which all the growth and the further expansion is being drawn and it also
helps in evaluating the global market conditions. As SASOL Limited is having the long
term sustainability and carry out the effective market image and position through which
there is been seen that all the market requirements are being grabbed. This maintain to
gain the higher growth in the profit in international market sectors. Cost-effective- This involves all the cost and the amount on which the expenses are
carried out and there is given all the higher benefits through which the international level
of effective strategies are managed. This complies to give the cost production and the
monetary assets and values with which the global alignment are being framed. SASOL
Limited focus on applying the business operations in which they reduce all the
operational costing and also try to manage the cost cutting according to the changing
scenarios(Chavez and Sharma, 2018). Environment- This involve all the changes and the diversification in which the major
alinement's and the trends are being farmed in the business and that is only be framed

although the compliance and the working nature. As this serves the methods in which the
political, social, economic and the other aspects are addressed while managing the
companies and their working. SASOL Limited as being planning to expand applies the
nature in which they maintain the growth and the possibility through which the future
stability and the optimised nature can be reviewed. It helps in managing the dynamic
changes in the working and also to frame the cultural adherences.
 Competition- This can be analysed that with the change in the dynamics and the rapid
innovation by the companies there is been seen that so this involve all the international
agreements and all the competition of the current market conditions are opted. Their is
been seen that all the global conditions which are begin adapted by the SASOL Limited
comprise to manage the oil and gas through which they implement and strategies all the
affecting principles and nature of working. It contemplates the vary consequences and the
methods through which strategies are being driven(Teo and Huang, 2019).
Impact of digital technology upon globalisation.
Notes:
The digital technology helps out in regulating and maintaining the growth and the effective
economic stability through their general uses. As for the maximum connectivity and the implied
mediums the digital technology services to be important (Dusart and et. al., 2019). Innovation

helps in removing all the barriers of communication and also maintain the reduction of the cost
cutting in transportation. Global expansion can be laid out within the engagement and their
challenging factors and there is provided that all the inputs and their functions are managed
through enhancement of the patent technology and their innovated approach. In all the foreign
market the investment led out to be the most important source through which the competition can
be adversely removed. All the information technology and the different digital marketing
channels helps to make the connection with the companies in which they can eventually maintain
the function and the methodological evaluation. As in context to SASOL Limited there is been
seen that all the oil and gas plants in South Africa helps to mange the expansion through the
innovation and the ideas in which the management and their functioning is being aligned. Their
is also been served that all the areas and the nature in which work is drawn can be opted with the
digital patterns and the mediums. The company can get the expansion and maximum
connectivity through all such channels and the methods. Various websites and the connectivity
with the sellers can be intermediate in different managing patterns and channels around the globe
this will remove all the hindrance in the trade barriers.
Challenges and complexities globalisation brings to an organisation such as SASOL.
Notes:

 Entry fees- In order to manage the expansion in any of the company there is seen that so
many issues are being observed. One of the major issues that can be seen is the
international barrier in the entry. as the companies are not being bale to manage the
growth and there is been served that their expansion involves the bulk of fees for the
merger or the expansion. In order to manage the trade relation there is seen attach all such
areas are specified fees are being undertaken. SASOL Limited will have to make the
work to be aligned in all the company and their procedural nature their provided that all
the trading and expansion of business of gas and oil will needed to give the high amount
and this can also affect the nature and higher payment in the taxation rates and the fees
for the trade. This is the major challenges that are being addressed by the company
(Kumar, Giridhar and Sadarangani, 2019).
 Loss in the culture identity- In order to gain the trust of the customers there is been seen
that all the customers will have to manage effective stages through which profitability
can be addressed. Their is provided that in all the different countries there is been given
different culture and preferences and the loyalty of the person will always be with the
familiar companies. This creates a major issues as to gain trust and to manage to bright
their implies to have the functionality and their nature of Working to be opted in proper
manner. SASOL Limited although is well known company but they will eventually face
the cultural barriers by the company as through the issues to manage the service being
given according to the favour ability of the consumers(Atherton, 2019).

Recommendations on how such challenges can be overcome.
Notes:
Further they can apply all the technological aspects and also the training should be given to the
employees so as to remove all the hindrance in future goals and problems. All such will make the
employees efficiently skilled and will generate to help them in expansing the business functions
and their growth. They can manage the better communication with employees by giving them the
ideas regarding joining and managing the company to be farmed accordingly (Tam and Oliveira,
2019)
Conclusion

PART 2
Mckinsey's 7s model on SASOL
This company is being originated and named as the fast growing brand name in South
Africa. The Mckinsey's model elaborates and analyse all the performance of the organisation and
the management. It comprise of the performance of the company and also manage the effects on
globalisation as SASOL have certain ideologies in relation to the leadership, supremacy,
structure and culture. In context to it the McKinsey's 7s model is being mentioned there under: System- In order to manage the growth and the effectiveness the SASOL Limited
manages the system to be aligned in proper manner in which all the disputes and the
conflicts are being addressed. They serve out to mange different departments in which
marketing, finance, human resources etc. are systematically divided to maintain the
working for the defined goals (Gottfried and et. al., 2018). Strategy- The SASOL Limited implement the effective strategies in which they focus on
analysing the patterns in the market and also the variable customer behaviour and
patterns .it implementations to manage the defined goals and objectives. They explain all
the ideas to the employees in the company and also to stakeholders to make the goals
being known to all.

 Skills- SASOL Limited use to hire all the efficient workforce who are able to mange the
work in proper manner and along with it they try to frame and give the training on regular
basis through which all the application of the growth can be implemented. Structure- This company follow the flat organisational structure in which they have all
the members on the lower managerial level. This helps in managing the decision making
to be applied in proper manner and the management of the high ordination function cam
also be framed. It make the employees to direct connect with the managers(Ulmer and et.
al., 2018). Shared value- SASOL Limited applies the values in the company by managing and
applying the commitments through which accountability, creativity, honesty and trust can
be implemented which creates the positive attitude in the employees and that will also
manage the opted culture. Staff- Employees hired by the SASOL Limited complies to have the better training
opting an management in which they apply the nature of working to be opted with
efficiency and experience. They analyse and strengthen the capabilities of the employees
and also focus on recruiting the operations of the workforce. Style- SASOL Limited adopts the participative leadership style in which all the
employees in the company are engaged in decision making as this creates the positivity
and also help in managerial the direct interaction through which leaders will thereby
manage the resolving of conflicts and also in managing the growth(Sanito and et. al.,
2020).
Elaborate the evaluation for the explained global operations and ways in which organisation
has managed operations in global market.
In order to manage the growth in the companies and the organisation there is required to
frame and manage the standard in the product and the services with their functioning and the
general reliability. For the global expansion there is been seen that all the expansion in the
working and the functioning can make the standardized management. their are so many social
media platforms and the digital advancement through which the potential market condition can
be enhanced. The McKinsey's models helps the SASOL Limited to make the strategies and
planning with applying the effectiveness of system, shared values, skills,staff and many more.
This creates the goals and the objectives being defined. This company formulates and conduct

the research through which approach which are well suitable will be adapted by it and this will
also helps them out ton know and enhance the planning and development of strategies with
changing global market trends. All such products are majorly being made according to the
requirement of customers. SASOL Limited focus on general exporting in which they take the
help of government policies and regulations and also frame the export plan with general
procedure. The company in order to know about the situation and the changing trends make the
marketing research in which they frame and apply all the evaluation of the product details and
the licensing. They manage both the primary and the secondary research through which the
reliable areas and the information is being opted. SASOL Limited maintain the systematic
approach and access through the general competition and the market segment for managing and
applying the strategies.
In the later steps the SASOL Limited focus on labelling and also on the packaging
through which they will manage their global market sakes and growth. It conduit various market
test so as to reach to the final area and place . Further all such manage and provide the effective
global market expansion of the company.
Applying Hofstede’s Dimensions of Culture theory
Hofstede's Culture Dimensions
This theory helps in giving the cultural framework and dimensions which helps in
managing the cross cultures through which all the functionality of business is being regulated. In
context to SASOL Limited there are different dimensions that are being adequately taken with
the business objectives. The six important categories which are being taken in it area like: Power distance index- This involves all the concepts in relation to the power factors.
This considers all inequality with the power that are being used by the individuals. The
two major issues and the dimensions are inequality and the power which have the high
and low power. SASOL Limited comprise of all leaders and the employees generally
focus on the business requirements(Lee and et. al., 2021). Uncertainty avoidance index- SASOL Limited manages all the strict rules and regulation
through which their is given low tolerance of the uncertainty. As in this there is analysed
the risk which is being tolerated and managed.

 Individualism v. Collectivism- It involves all the obligation and the perceived
dependence of the groups in working. SASOL Limited manages the collectivism through
which they maintain the personal goals and objectives to be addressed in groups. Masculinity v. Femininity- It is the societal attitude towards the dimensions on
behaviour, culture, attitude and many more. As all the masculinity provides the
deficiency and fierceness and femininity gives the nurturing and the gender fluid roles.
 Long term vs. short term orientation- This complies to all the goals and the plans that
are being made by the company. SASOL Limited focus on all short terms and long terms
goals in order to maintain the growth and developments.
Sustainable Globalisation- This involves all the technologies and the fundamental
transformation with which the growth in the works are being managed as SASOL Limited
provides and complies to make the 30 countries involve in updates of sustainable areas in global
market.
D1 Critically evaluate the global business environment, including the opportunities and
challenges faced by organisations.

Analyse the ethical and sustainable factors in organisation for global market
This is mainly all the operation of business globally, there is been provide that
government of SASOL Limited maintain the competitive changes and advantages through all
competitors. It have important factors which are like: Social and cultural factors- This manage all the social trends and the changes through
which the demographic implementation are gained. It have cultural and the social factors
through which the performance is evaluated and managed. SASOL Limited focus on
managing the growth and the profitability (Faturrohman and et. al., 2018). Environmental with regulatory considerations- It manages all the protection of the
environment and also the sustainability with the growth. SASOL Limited manages the
reduction of pollution by maintain the safe and adaptive disposal of waste with major
advantages. Proper wages and their benefits- This considers to have the ethical issues regarding the
hiring which is been undertaken at low wages. This complies that all the profit in the
organisation is being gained through major benefits. SASOL Limited as use to gain the
margin by applying low rates and that to sell the product at high amount to a other
countries. The salary issue is mainly being faced by the employees as due to low pay
scale. This affect the performance and the working environment.
 Cultural marketing consideration- This involves all the cultural framework in which the
efficient management of business is being classified. Their is being provided that
SASOL Limited complies with the effective campaigns in which the competitive
advancement are being laid.
Critical evaluation of strategic decision making in relation to risk and diversification in a global
context
Globalisation is the most important factor in which the management and the removal of
all the issues and the barriers are addressed as it complies with the international borders working
compliance. This involves production, capital markets, financial attributes, management of
technology and many more. All the liberalising and globalisation helps to manage the foreign
competition by free trade and management. SASOL Limited executes the strategies through
which the reduction of the cost production is managed. Their is being drawn that all the strategic
decision making complies to have the long term management of objectives which manage the

dynamic change in environment. Some of the main areas on which the organisational strength
and weakness are opted through competitors are given(Perez, 2019). Leadership and decision making- Their analysed that all the cultural areas, belief,
management and the values helps to formulate all the enhancement through which the
traditional attributes and their focus on general working is maintained. Globalisation
implies to provide all the segmented areas in which they transfer the leadership styles
from the authoritarian to the participatory as this covers and manage the transformational
working. As in context of SASOL Limited their facilitated to strategies the
implementation of the global environment and also the method through which they
allocate all the resources in proper manner. As globalisation helps to validate and manage
the quality of products with delegating the powers all the globalisation manage the
powers with the attainable quality and services in order to manage the decision making.
SASOL Limited focus on opting all such strategies through which the growth and the
further management can be evaluated and all the decisions are being undertaken
according to the ideas and the potential risk which are being managed accordingly. It
evaluates the competition and the advancements with the changing requirements of the
customers and trends. International diversification- This involves all the issues in the decision that are being
taken for the competition in the globalised areas. It helps in regulating the business
working and operational activities in which the higher market areas are consolidated.
SASOL Limited in order to overlook and protect the company from poor performance
and working make international strategies through which they can evaluate all the
competitive areas and management in different countries. This manage the objectives and
the goals with diversification (Muthusamy, 2019).
 Risk handling- This complies to have higher risk in order to manage the work in proper
manner and also to attain the issues in the uncertain areas and the demands. This helps in
managing the risk and also the ways through which all the uncertain demands and the
mitigation of the risk are being addressed. As with the change in the risk there is provided
that all the risk management tools provides the strategies through which various process
like analysation, identification, controlling and the decision making is being applied.

Evaluation of the range of strategic global expansion routes
The international expansion manage the multilevel strategic plans which helps to manage
the formal nature through all the effective areas and the market in order to manage the effective
presence for global expansion. Some of the major areas in which the SASOL Limited implement
the performance with the global functions are like: Licensing- This is mainly the process in which all the intangible areas and the properties
are being undertaken for applying the patent, trademark, production techniques and so on.
Their is been provided that in order to manage all the global expansion in business
licensee will have to manage the fees in order to get the authentication and property.
SASOL Limited focused on managing the low investment and also in high return fir
uplifting the marketing cost within foreign market. Strategic alliance- this involves all the merging capitals that are arranged in two events
in order to manage the capital and also to percolate and maintain the strategy for attaining
the planned association (Eddy 2020). Exporting- This is the most common method or process through which all the common
route in the business is framed and it complies to give the expansion of business with
lower risk in the global market areas. This gains to give the cost effective method and as
SASOL Limited in order to maintain the exporting can limits the product in the home
country and can also manage the overall cost of export. As this involve some important
areas that are like government, transport provider, importer and many more.
 Foreign direct investment- SASOL Limited carry out high investment of capital and for
that they proclaims and manage the procedure for maintaining the investment in order to
establish the new venture for acquiring global level.
Key barriers to international marketing
There are so many issues which the company observed in order to mange the global
expansion. In context to SASOL they are being mentioned thereunder: Culture barriers- As when the company implements and try to manage the expansion
there is seen that they face the major issue in applying the culture barriers. As in the new
areas there is been observed that all the expansion in the foreign market will be difficult
as customers will not be able to manage any of the barriers and there is been seen that

research is needed to be managed in the forefront and to gain the trust of the local
customers seems to be difficult. Cost barriers- Their is been noticed that all the technological connection, machinery set
up will require so much of cost and the funds which will eventually affect the company to
manage it according to the global areas. Their is been provided that it all such labour,
machines, goods and services with necessary equipments will make the cost barriers. Legal barriers- In expansion there is seen that so many government regulation and the
policies with the legal adaptability and the laws are required to be managed. Their is been
drawn that all such areas in which the expansion is made will require so many legal
formalities and cover the legal barrier.
Recommendations for barriers
In order to overcome all these issues the company can manage and hire some of the local
employees with which the trust is been generated and along with it effective research and
development team can be applied which will help in maintaining the balance in all the working
and expansion.
Their is needed to provide all the language training to the employees who are being going
overseas as that will help them to manage the communication with all the locals and will also
help to know and analyse the need and requirement t of the people. Other then this the company
can make their research and development teams to focus more wand try to gain all the
requirements and the knowledge that are being needed by the customers in that particular
segment of marketing applies and manage the methods with which the marketing analysation and
their adaptive culture can be reframed. There can be maintained the funding and the budgeting
accrediting to the currency rate of the country which will help in regulating and mi,posing the
strong financial statues.
CONCLUSION
From this above report it is summarised that global business environment managed the
expansion in which the further development and growth are being gained. This involve all the
external and internal factors through which all product and services are attributed. McKinsey's 7s
model provides the strategies that are being opted by the company and also the efficiency in
which the business can be involved to manage the efficiency in strategical approach. Further it is

been concluded that all the methods are being addressed and used sop as to make the further
expansion and growth in the business.

REFERENCES
Books and Journals
Eddy, H.C., 2020. Implementasi Strategi Berdasarkan Model 7s Mckinsey (Studi Pada
Perusahaan Jasa Boga Cv Century Utama Lestari Jakarta) (Doctoral dissertation,
Universitas Brawijaya).
Muthusamy, T.A., 2019. Applying the McKinsey 7-S Model to assess innovation efforts in law
firms (Doctoral dissertation, uvp).
Perez, A.G., 2019. MABALACAT CITY COLLEGE: MCKINSEY’S 7S MODEL AND
SUSTAINABILITY. Luz y Saber. 13(3). pp.1-1.
Faturrohman, F. and et. al., 2018. Application of RBV Theory and McKinsey 7’S Model on
Start-up Company. Scientific Journal of PPI-UKM. 5(1). pp.1-6.
Lee, J. and et. al., 2021. SWOT-AHP analysis of the Korean satellite and space industry:
Strategy recommendations for development. Technological Forecasting and Social
Change. 164. p.120515.
Sanito, R.C. and et. al., 2020. Economic and environmental evaluation of flux agents in the
vitrification of resin waste: A SWOT analysis. Journal of Environmental
Management. 270. p.110910.
Gottfried, O. and et. al., 2018. SWOT-AHP-TOWS analysis of private investment behavior in
the Chinese biogas sector. Journal of Cleaner Production. 184. pp.632-647.
Atherton, J., 2019. Social media strategy: A practical guide to social media marketing and
customer engagement. Kogan Page Publishers.
Dusart, N. and et. al., 2019. Integrated analysis of the detoxification responses of two
Euramerican poplar genotypes exposed to ozone and water deficit: Focus on the
ascorbate-glutathione cycle. Science of the Total Environment. 651. pp.2365-2379.
Chavez, R. and Sharma, M., 2018. Profitability and environmental friendliness of a closed-loop
supply chain for PET components: A case study of the Mexican automobile
market. Resources, Conservation and Recycling. 135. pp.172-189.
Geraldo, R.H. and et. al., 2020. Calcination parameters on phosphogypsum waste
recycling. Construction and Building Materials. 256. p.119406.
Wood, B.E. and Black, R., 2018. Globalisation, cosmopolitanism and diaspora: what are the
implications for understanding citizenship?. International Studies in Sociology of
Education. 27(2-3). pp.184-199.
Osinubi, T.T. and Olomola, P.A., 2020. Globalisation, income inequality and poverty
relationships: evidence from Mexico, Indonesia, Nigeria and Turkey. Journal of
Economic and Administrative Sciences.
Usman, O. and et. al., 2020. Enhancing sustainable electricity consumption in a large ecological
reserve–based country: the role of democracy, ecological footprint, economic growth,
and globalisation in Brazil. Environmental Science and Pollution Research. 27(12).
pp.13370-13383.
Zajda, J., 2020. Globalisation and neo-liberalism in higher education: Australia.
In Globalisation, Ideology and Neo-Liberal Higher Education Reforms (pp. 47-57).
Springer, Dordrecht.
Teo, T. and Huang, F., 2019. Investigating the influence of individually espoused cultural values
on teachers’ intentions to use educational technologies in Chinese
universities. Interactive Learning Environments. 27(5-6). pp.813-829.

Kumar, S., Giridhar, V. and Sadarangani, P., 2019. A cross-national study of environmental
performance and culture: Implications of the findings and strategies. Global Business
Review. 20(4). pp.1051-1068.
Tam, C. and Oliveira, T., 2019. Does culture influence m-banking use and individual
performance?. Information & Management. 56(3). pp.356-363.
Ulmer, F.F. and et. al., 2018. Cultural prototypes and differences in simulation
debriefing. Simulation in Healthcare. 13(4). pp.239-246.