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

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).