Influence of Globalization on Organizational Governance and Functions - Desklib

This report analyzes the influence of globalization on organizational governance, leadership, structure, culture, and functions. It also discusses the impact of ethical and sustainable globalization on organizational functions and how decision making can work effectively in a global context. The report uses SASOL as a case study to illustrate the concepts.

GLOBAL BUSINESS
ENVIRONMENT

PART 2
INTRODUCTION
Globalization is the term and approach which places the use of international network
of global business and operations. The term globalization defines the interdependence of
economy, culture and population which is brought together due to cross border trade in goods
and services, technology, people and information (1). In other words, globalization can also
be termed as international trade which can bring various benefits to the overall society.
SASOL is a global chemical and energy company which produce and market a range of
products of high quality to around 27 countries. The primary objective of SASOL limited is
to bring innovation for better place. The company was established in the year 1950 which
develops commercialize technologies which includes synthetic fuel technology and
manufactures different fuels, chemicals and electricity (2). This report will analyze the factors
which drive global commerce and trade and will outline the complexities of strategic
challenges which are faced by business while operating in global markets. The project will
discuss the impact of globalization on organizational governance, ethical and sustainable
globalization on culture and function of business. The project will also define how decision
making can effectively work in global markets and highlight the routes of internalization.
TASK
Define influence of globalization on organizational governance and leadership, structure,
culture and functions
Globalization is one of the factors which defines the trade between the global markets
through which maximum economic benefits can be availed. Globalization is responsible to
create an impact on internal as well as external business environment. In relation to SASOL,
the influence of globalization in accordance to organizational governance, leadership,
structure, culture and functions is discussed below:
Organizational governance- Globalization is responsible to create an impact on
corporate governance and this has been affected by manipulating peace and stability which
creates a direct impact on the governance which influences the knowledge economy. The
influence of globalization on governance can be positive as well as negative. In case of

SASOL, the trading of the company results into foreign direct investments which is not that
helpful for stimulating and sustaining knowledge. Globalization is responsible to create an
lasting impact on the business profitability as globalization is the medium which encourages
companies to plan and follow different corporate responsibility through which they can
maintain their competitive position within the industry. All the functions and operations
performed by organizations in global markets must be followed under the corporate
governance strategy. In context of SASOL, the company follows sound corporate governance
structures and processes which supports them in delivering the sustainable growth in interest
of all stakeholders.
Leadership- In case of SASOL, the company follows participative leadership style
where the business leaders of the company support and assist their employees which will be
helpful in enhancing their performance. By following the participative leadership style, the
leaders encourage their employees to share their views and opinions through which effective
decisions can be formed which helps in increasing employee engagements and retention.
Structure- Structure is the framework which develops and arrange different
authorities and allocate rights and duties. In case of SASOL, the company follows matrix
structure in their organization which allows them in following horizontal flow of information.
Structure helps company to utilize their resources which supports them in decision making
process in the international markets.
Culture- Organizational culture define the value, assumptions and beliefs. In case of
SASOL, the company focuses on managing shared perspectives and work ethically which
supports business in managing challenges that are faced due to globalization. The cultural
values of the company promote equality and diversity among employees which supports in
aligning business activities in similar directions.
McKinsey 7s model
This model was proposed by Tom peters and Robert Waterman in 1970 identifiers 7
internal elements of business that must be aligned in order to be successful. The seven
elements of vacancy model waste on hard and soft elements which are heart hard (strategy,
structure and systems) and soft (shared values, skills, style and staff) components. In case of
SASOL, the company will focus on understanding their business strategy through which they
can form structure and business systems that will be helpful in meeting desired organizational
objectives. Moreover, SASOL, focuses on understanding the shared values of the

organization through which they can continuously focus on understanding the corporate
objective and whole staff can collectively work towards the accomplishment of objective and
enhance global image and competitive position of company within the international markets.
Influence of ethical and sustainable globalization on organizational functions
Globalisation is the approach of creating global presence of a product bus service in the
global market. The process followed by organizations to promote their products and services
must be ethical and sustainable for betterment of the society and global economy.
The ethical influence of globalisation on business functions of SASOL will focus on welfare
and benefit of people and environment where business operations are performed. The ethical
influence of globalisation on organisational functions will encourage the organisation to
perform all functions as per the norms and ethical standards through which they can avoid
uncertainty is caused by the government. Such strategies will help SASOL in meeting all
desired outcomes and ethical standards.
Sustainable globalisation will supports are solve in forming strategies land policies that can
be helpful in managing all business functions and performing this functions as per the
required standards. Search strategies helps in enhancing the performance of the company
which leads to incline in profitability of the organisation.
How decision making can work effectively in global context
Articulate routes to internalization an organization can adopt and define barriers
CONCLUSION
From the above PPT, it can be concluded that global business strategy is the business
strategy which define the operations and functioning of business environment within the
global markets. It can be understood that global business strategy supports business in
successfully operating within the international markets through which they can generate
higher revenues and maximize their profitability. It can be understood that there are various
factors, such as governance, leadership, culture and function which helps in understanding
the influence of globalization on the organization. It can be seen that ethical and sustainable

globalization is responsible for influencing the functions of business through which they can
perform as per required standards.

REFERENCES
Books and journals
Online
What is Globalization, 2021 [Online]. Available through
<https://www.piie.com/microsites/globalization/what-is-
globalization#:~:text=Globalization%20is%20the%20word%20used,investment%2C
%20people%2C%20and%20information.>
Sasol, 2021 About SASOL, [Online]. Available through <https://www.sasol.com/about-
sasol/company-profile/overview>