Impact and Strategic Direction Part 2

IMPACT AND STRATEGIC DIRECTION
PART – 2

CONTENTS
INTRODUCTION......................................................................................................................1
EXPLAINING STRUCTURE, CULTURE & GOVERNANCE WITHIN SASOL.................1
Application of McKinsey’s 7S model to the organization.....................................................1
EVALUATING HOW CULTURE, STRUCTURE, LEADERSHIP ARE IMPACTED BY
GLOBAL OPERATIONS AND THE MANNERS IN WHICH SASOL HAS ADAPTED.....3
Impact on organizational structure.........................................................................................3
Impact on leadership...............................................................................................................3
Impact on culture....................................................................................................................3
APPLICATION OF HOFSTEDE’S DIMENSIONS OF CULTURE FOR
DEMONSTRATING THE WAYS IN WHICH ORGANISATION HAS BEEN
INFLUENCED...........................................................................................................................4
The Hofstede model of culture...............................................................................................4
ASSESSING THE ETHICAL & SUSTAINABLE FACTORS TO BE CONSIDERED IN
THE GLOBAL MARKETS.......................................................................................................5
EVALUATING THE STRATEGIC DECISION MAKING IN RELATION TO RISK AND
DIVERSIFICATION.................................................................................................................6
CRITICALLY ASSESSING THE RANGE OF STRATEGIC GLOBAL EXPANSION
ROUTES AVAILABLE TO SASOL........................................................................................7
CONCLUSION..........................................................................................................................8
REFERENCES...........................................................................................................................9

INTRODUCTION
The global business environment involves internal as well as external environment
which has been influenced by varied factors. All these factors directly affects the decision
making process of the organization. Even globalization also impacts the structure, culture and
leadership of the company and varied strategies (Lasserre, 2017). Considering this, the main
purpose of the current research report is to evaluate the manners in which globalization
impacts SASOL through applying different models and will also throw light on the ways firm
has adapted to operate effectively in the global marketplace. Further, an emphasis will also be
done on ethical and sustainable factors impacting the operations of the company and will
determine ways of decision making in global context. The final part of the report will focus
on different routes to internationalization present in front of SASOL limited.
EXPLAINING STRUCTURE, CULTURE & GOVERNANCE WITHIN
SASOL
Application of McKinsey’s 7S model to the organization
Speaking in relation with McKinsey 7-S framework, it has been developed by Tom
Peters and Robert Waterman. The model emphasize on seven internal elements of the firm
which are required to be aligned if the firm needs to achieve success and growth. One of the
main benefit of this framework is that it supports in making improvement in the performance
level of the organization, scrutinises the probable impacts of future changes in the company
and finally, the best manner to execute the proposed strategy. Currently, the main strategy of
SASOL is enlarging their share in the market through adopting international expansion and
becoming a leader in the energy and chemical sector (Egner, 2019). For expanding into the
market, it is important that the firm should consider different aspects which can be explained
effectively by McKinsey 7-S framework below:
 Strategy – It connects with the allocation of resources in the company. In regards with
the SASOL limited, it is important that firm should adopt a differentiation tool by
introducing new portfolios of products and services in the market. This is considered
as the most crucial way for winning the market. However, this procedure might prove
problematic because of the complexity of the energy as well as chemical industry.
 Structure – Speaking in relation with organizational structure of SASOL, it is still
having traditional hierarchical structure and which makes it quite difficult to make
quick and fast decisions. On the other side, because of the centralization of power this
process becomes more complex (Roy and Srivastava, 2017).
1

 System – This typically encompasses the financial system, processes, information
system, promotion system and recruitment system being employed by the company.
Considering the financial system of the company, it is running efficiently presently,
however the appraisal as well as promotion system of the company along with the
international marketing operations are required to be re-considered while making the
strategic decision of international expansion.
 Shared value – this aspects is concerned with the trustworthiness of the firm, their
values, mission and vision of the company. The shared value in regards with the
current case company is stable nonetheless there are slight turnover related to
employees which might impact the global operations of the company and strategic
decisions of the company.
 Staff – Staff is also being regarded as one of the most crucial factor that needs to be
taken into account as per the 7S framework (Fleisher and Bensoussan, 2015). The
firm is required to take into account the availability of employees, their skillset,
knowledge and experience. Some of the staff members of SASOL are not having
adequate level of experience and skills and thus, there is high level of employee
turnover. Thus, these factors should be taken care at the time of making strategic
decisions.
 Style – The style aspects is concerned with the culture of the firm which is being
represented by the style of management being adopted by the managers and leaders of
the company. The organization structure of the company is centralized in which the
style of management is collective and supportive leadership is followed by the
leaders. This will help in making the process of internationalization quite easy.
 Skills – This is being referred as the capabilities being possessed by the company.
Normally, it encompasses the experience, knowledge, understanding, capabilities and
skills of the managers and other staff members of the organization. The main problem
in the case company is related with shortage of highly experienced and qualified
employees which will going to impact the global operations of the firm (Worthington,
Britton and Thompson, 2018).
2