Global Business Environment

Global Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
Covered in PPT.......................................................................................................................3
PART 2............................................................................................................................................3
An explanation of the structure, culture and governance of the organization, applying the
McKinsey’s 7S model............................................................................................................3
An evaluation of ethical and sustainable factors that the organization has to consider in a
global market..........................................................................................................................5
An application of Hofstede’s Dimensions of culture to show a critical evaluation of the
influences of globalization on the international organization................................................6
Evaluate different ways decision-making can work effectively in a global context..............6
Strategies for internationalization an organization may adopt...............................................7
Recommend how firm should adapt their organizational structure and decision-making
processes to overcome the key barriers to entering and operating in international markets..8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Global business environment can be defined as the non-controllable international and
local interactions that impacts on the way a company operates. It is the environment of different
sovereign countries which includes factors exogenous to home surroundings of company that
influence decision making on utilization of resources and capabilities. In this report, the given
organisation is SASOL Limited which is a rapidly growing chemical and energy company of
South Africa. The firm has expanded in many other countries like Canada, Australia, Gabon,
Mozambique and now hope to enter into other nations soon. This report includes two parts, the
first part covers introduction to globalization concept and its driving factors along with PESTLE
analysis of country in which it is operating. Moreover, complexity of strategic challenges of
globalization, opportunities and challenges faced by organisation and recommendations to
overcome those challenges are included. The second part of report covers discussion of structure,
governance and culture of firm by application of McKinsey's 7S model and ethical and
sustainable factors that a company needs to included in global market are included. Apart from
this, Hofstede’s Dimensions of culture is applied to critically evaluate the influence of
globalization on company and different ways in which decision making can work effectively are
evaluated. At last, strategies for internationalization are included and recommendations are
provided to overcome the barriers to entry into international market.
PART 1
Covered in PPT
PART 2
An explanation of the structure, culture and governance of the organization, applying the
McKinsey’s 7S model
The structure use by SASOL Limited is matrix structure according to which the activities
of company will be performed. By the help of the structure firm can I enable to share all the
information in an effective way (Adekola and Sergi, 2016). Soft culture is followed by
organisation due to which its main focus is on tangible and intangible objectives or goals
associated with it. Its intangible objectives includes providing team members with training
programs and developing teams. And the tangible objectives includes projects, reports, services

and budgetary benefits. Governance is used by company by bringing transparency in its policies
and procedures that help SASOL limited in attaining its objectives in systematic way.
McKinsey 7s model
This model includes seven elements which are categorised into hard and soft elements which are
mentioned below in context of SASOL limited:
 Strategy: this is a kind of approach that is formulated by company in order to gain
competitive advantage in market. The strategies of SASOL limited are formulated in such
a way that it aligns with its objectives. Implementation of these strategies will help
company in attaining goals and objectives effective way and ensure that sustainability can
be attained (Armstrong and et. al., 2015).
 Structure: the company follow matrix structure that will help it in performing its
operations and activities in systematic and organised way. The structure helps in attaining
tasks successfully with the help of all the other departments exist within organisation.
 System: as the company deals in energy and chemical products, it follows a unique
system which can impact considerably If the organisation will not familiar with the
conditions of New market.
 Shared value: In SASOL limited, this factor is related to workforce of firm who works
collectively to attain goals and objectives of organisation in a systematic way. it is
required by organisation to maintain the shared value so that revenues and profitability
can be enhanced while operating business at global level.
 Skills: it is necessary for the organisation to have skilled and capable workforce so that
productivity of the organisation can be enhance. For this, SASOL limited is required to to
provide training to its employees so that they can be capable enough to attain objectives
of company in effective way (Black, Morrison and Gregersen, 2013).
 Style: this aspect is associated with management and leadership style that are used by
managers and leaders in organisation. The manager of SASOL limited use democratic
leadership style in which take opinions of employees and involved them in decision
making process. This helps in improving performance of firm.
 Staff: It includes the individuals who are working within firm. SASOL limited has around
3400 employees who supports and performing operations in activities of company.