Influences of Globalisation on SASOL Governance, Structure, Culture and Functions

Unit 18 Global Business
Environment
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Table of Contents
Part 1................................................................................................................................................3
Part 2................................................................................................................................................3
Introduction.....................................................................................................................................3
Main body .......................................................................................................................................3
Influences of globalisation on SASOL governance, structure, culture and functions............3
Factors that influences the global operations of SOSAL in the global market......................4
Application of Hofstede cultural dimensions to analyse cultural influence of organisation..5
Evaluation of ethical and sustainable factors that SASOL has to consider in global market 7
Different ways of decision making in SASOL can work effectively in global market..........8
Evaluation of the global expansion routes of SOSAL ...........................................................9
Conclusion.......................................................................................................................................9
References.......................................................................................................................................9
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Part 1
(Covered in PPT)
Part 2
Introduction
Globalisation is the procedure of interaction between the organization and governments
in the global level. The main impact of globalisation is that it decreases the manufacturing costs
which overall means that it can provide the services or goods at the less prices to the customers.
In this report, the influences of globalisation on organisational governance and leadership,
structure, culture and functions as well as influences of ethical and sustainable globalisation on
organisational functions is discussed. The Hofstede's dimensions of culture is also applied to
exhibit that how a company can be influenced and the evaluation of the strategic decision-
making in context to reduce the risk of a company. In this report, the considered company is
SASOL which is a giant chemical and energy company in South Africa(Abubakari, Z., Wang,
M. and Paa-Grant, R., 2018).
Main body
Influences of globalisation on SASOL governance, structure, culture and functions
SASOL can determine the influences of globalisation on its structure, culture and
governance by using McKinsey 7s model, which is a method that helps the employees or
managers to determine the performance of an organization. This model is majorly used to find
out that how effectiveness can an organization achieve by interacting with the 7 key elements.
These seven elements has categorized as hard and soft elements, in which there are three hard
elements that involves strategy, structure and systems. The other four soft elements are shared
values, skills, style and staff. The McKinsey’s 7s model of SASOL is discussed below: -
Structure: - It depicts the wholesome structure of an organisation and reflects the
process how the company is organized. In context with SASOL, it has arranged into four
strategic consumer facing business units, three regional operating hubs and two upstream
business units(Alvarez, S., Afuah, A. and Gibson, C., 2018).
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