Analyzing SASOL Ltd. in the Global Business Environment

This report analyzes the governance, culture, and structure of SASOL Ltd. using McKinsey's 7S model. It also evaluates the sustainable and ethical factors valued by the company globally and describes the range of strategic global expansion routes used by the company.

Global business
environment

Table of Content.
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Describe the governance, culture and structure for the company by the application of
McKinsey,s 7S model..................................................................................................................1
The way these elements effect global functioning and the way company adopt in working
globally........................................................................................................................................3
Hofstede's Dimensions of Culture for evaluating the influencing the culture ............................3
Sustainable and ethical factors valued by the company globally................................................4
Evaluating the sustainable & ethical factors of organisation.......................................................4
Strategic decision making with the reference to risk and diversification globally......................5
Describe the range of strategic global expansion routes used by the company...........................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
The global business environments can be explained as the environment in various
sovereign countries, with factors exogenous to the environment of the company, influencing
decision making on resources use and capabilities. International business environment has
various positive aspects in spite of different issues. It includes managerial skills, providing better
services, creating jobs, development in the infrastructure, new technology contribution and
bringing in investment capital from other nation by exporting goods. The company faces
different challenges due to difference in the nation- particular political, economic, social,
cultural, technological, institutional, regulatory and organizational contexts. It is remarkably
reflected on the impact of the usage of resources and abilities for operating within the
environment of the company. This report is based on the SASOL Ltd. Company which is
described in the McKinsey's 7S models. It is assist the company to achieve their goals and
company adopt with the global functioning. The model includes strategy, structure, shared
values, style, staff, skills and systems. This report is also giving the statement of Hofstede's
dimensions which explain the ethical, sustainable and cultural factors of the global markets
(Suriyankietkaew, 2019).
MAIN BODY
Describe the governance, culture and structure for the company by the application of McKinsey,s
7S model.
McKinsey's 7S model is a important factor that assist the company to analyse the
“organizational design”. The primary objective of this model is that it assist the company to
achieve target and utilize the changes. This model is chiefly applicable for measuring the
constitution of the organization that can described their effectiveness within the seven elements
that are classified into soft as well as hard. These elements of the models are explained below:
Strategy: It is refers to the well-curated business plan that allows the organization to
formulate a plan of action to achieve a sustainable competitive advantage, improved by the
company's values and mission. This is set up and documented with in intent to have smooth flow
of operation in business. With a reference to SASOL Ltd., the manager is highly answerable to
attain the aims of sustainable competitive benefits that enhance the brand image as well as
facilitated higher profitability of the business. It is an hard factors so in context to SASOL Ltd, it
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do not compromise within the fee an any other case their commodity can end up inferior (Luiz,
Ganson and Wennmann, 2019).
Structure: This factor is stand for the way in which an organization is extremely
organised. In case of SASOL Ltd., structure is very necessary for the business to make and
maintain a structure so that employers and employees can communicate well with everyone and
understand their roles and responsibilities with more understandability. The company is require
to have an effective organisational structures which includes divisional structure in which they
can divided the region of the business which assist more understanding of doing work even at
global level. It is also a hard detail and SASOL Ltd. Must separate their provider's section in
order to the geographical could not have an effect on them more.
Shared Values: The values, mission, vision and targets of the organisation are known as
major foundation of business along with possessing an effective role in the alignment of business
operations. In context to the SASOL Ltd., the manager of the organization require to create
mission as well as vision that may leads workers of the firm to perform well in the administration
even at global level.
Skill: This is stand for the different competencies as well as capabilities within the
workers that enable them to move forward to attain the company's objectives. In case of SASOL
Ltd., the director should formulate different rules, policies. And regulations for the worker's
safety and welfare which satisfy each and every members in the company. This is also assist the
firm in the encouragement through which employees can work hard to complete the task with
competencies and productivities (Field and et. al., 2021).
Staff: It is involves the employees as a pool of resources, which need to be nurtured,
guarded, developed and allocated. It considered organization's human resources, educational,
demography, guarded and attitudinal characteristics. SASOL Ltd., have interaction on the line
with their employees for appreciate their lifestyle. This will enable to create long term
sustainability by offering potential product and services in the market.
Style: This factor is includes the senior executive of the establishment practices
organisational code of conduct in order to make effective decision with suitable evaluation of
each aspect. In context to the SASOL Ltd., the company is highly focused in the regulation of
business activities and popular form of leadership in order to give a chance to each individual so
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that can stand for their opinion and views associated to the decisions of business, linking to the
globalisation.
System: This factor is consider the informal as well as formal procedures which are
necessary for measurement, resources allocation and reward. It is explaining with the business
procedures and operational procedures employed to complete a business's routine activities. In
case of SASOL Ltd., is normally had to cyber protection in order to invite work at home to
growth their productivities (Polinkevych and et. al., 2021).
The way these elements effect global functioning and the way company adopt in working
globally
These elements are remarkably associated with the person working in an organization,
usually by hook or by crook. In relation to the SASOL Ltd., it cannot produce them effortless, it
they are discovered to installation into a fresh market the want to pay attention nicely on those
such impressive factors. These factors are measures when they are no longer and not sufficient
for consolidation as well as acquisition. These factors are necessary to measure because the most
important chances are fails. The SASOL Ltd. Is directing closer towards act their employees
more on an online mode. The company is also required to make merchandise high priced is
require to get higher market place stocks and compete on costs. The machines of the company
required to be higher that specialized in members of the families with the clients, statics
visualization with these the enterprise and internet application optimization (Van den Berghe and
et. al., 2020).
Hofstede's Dimensions of Culture for evaluating the influencing the culture
This cultural model is developed by the Hofstede and this is based on the differences in
values and beliefs regarding work targets. Hofstede's dimensions is specially useful because it
gives an important information about variation between nation and manage such variations.
These elements are mainly focuses on how extend to which a society stress achievement or
nature. It is analyse the database of culture statistics, found clear pattern of similarity and
differences along the four dimensions (Sinha and Chowdhury, 2021). With the use of Hofestede
model culture, impact of different factors can be understood in the following way:
Power distance index: According to this type to culture assist the strong hierarchies
along with the influential as well a powerful leaders. In context to the SASOL Ltd. The decision
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making is done by the seniors of the company which does not involved any kind of discussion or
opinions of others.
Individualism and communities: Person throughout the world can be targeted through
publicity by considering how the product and services will assist benefits of freedom and time
saving and appreciating for their effective group. According to the SASOL Ltd., the employees
are self-directed and show strong desires apart from self-achievement.
Uncertainty avoidance index: This is explain how well person can contend with
anxiety. In social groups that score highly for Uncertainty Avoidance and person attempts to
make life as controllable as well as predictable an possible. In relation to SASOL Ltd., it is
primarily an openness as well as regard to carrying out of modern ideas can take pictures as a
possibility so that the business enterprise can accept their suggestions.
Femininity vs Masculinity: The muscularity side of the dimensions explains culture and
society is one that stresses various expectation for people. Market can divided in term of their
roles if they have high muscularity culture. According to this market condition, it is essential that
appropriate pattern is being used for every good to target the workplaces (Silva, Ribeiro and
Sousa, 2021).
Short term and long term orientation: Long term orientation tends to be characterized
by a focus on the future, a focus on perseverance and delays in short gratification for future
benefits. Short term orientation tend to be characterized by a pursuit of immediate gratification,
fulfilling social obligation and concern with social hierarchy.
Indulgence and gratification: High understanding of culture is give a value for the rest
of time while low understanding of culture lead to rigid social rule and regulation.
Sustainable and ethical factors valued by the company globally.
There are some of the most common ethical issues in international business which is
associated with the outsourcing working standard and conditions, workplace diversity as well as
the equal opportunity. These are also includes child labour, supervisory oversight, human right,
religion, the political arena, the environment and corruption. The ethical factors of globalization
consider a procedure in which the data, services or goods, technology and information are traded
with the molarity and ethical form. Ethics regulate what is right or wrong in the organization
(Struwig, Nuwagaba and Krüger, 2019).
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Evaluating the sustainable & ethical factors of organisation
At a time of evaluating sustainability of a company, there is looking at its position on
issue with in three key factors. These are includes environment, social as well as governance.
These includes stance and strategy on tackling major global issues such as climate change, child
labour, equality, justice, salary disparity and corruption. This lead to increase the profitability for
the company in order to survive in global market. There are different factors which are
contributes to SASOL Ltd. Denotes the economic of scale, human resources and marketing of
the products (Saeed And et. al., 2018).
Strategic decision making with the reference to risk and diversification globally.
There are various routes which are available with the SASOL Ltd. Are mentioned below:
Licensing: This is the way by which an organization give an agreement or licence to the
other company by which firm execute the entrepreneurial operation. This is an effective action
plan by which is assisted by the SASOL Ltd., in order to grow their business world wide.
According to the SASOL Ltd., the company charges some amount in the royalty form, for apply
their name as well as services in different country market.
Exporting: It is the process by which the organization exports its manufacturing goods
and services to other people. It is classified as best way of global business, through which the
company can direct sales their products or services without establishing their organization
(Farhoomand and et. al., 2021).
Describe the range of strategic global expansion routes used by the company.
There are different tactics but their prime is done in the basis of system mission as well as
objectives. There are various strategies which are designed on the SASOL Ltd. But their primary
target focused towards provide low priced raw material and also provide its customers the high
values of chemicals which are efficient and quantify. Risk of the company can be removed by
understanding their challenger accordingly and imposing the duplication removal technology
(Njue and Ongoto, 2018).
CONCLUSION
From the above discussion it has been concludes that a company is centred upon the
elaboration of the business with well defined culture as well as leaderships. These are help the
organization to achieve the goals and successful business objectives. This report is includes the
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McKinsey's 7S models explanation which are associated with the SASOL Ltd. These model are
used to find the structure of the company and increase the effectiveness of the company. This is
also includes the various term of an organization to effectively manage business in world-wide.
There is also includes the detail analysis of ethics as well as sustainability for global level. This
report is also includes the Hofstede's dimensions of culture for evaluation for the influencing
culture.
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REFERENCES
Books and Journals:
Farhoomand, A. and et. al., 2021. Managing (e) business transformation: a global perspective.
Bloomsbury Publishing.
Field, J.G. and et. al., 2021. More alike than different? A comparison of variance explained by
cross-cultural models. Journal of International Business Studies, 52(9), pp.1797-1817.
Lu, J. and Lutostansky, E.M., 2022. Simplified approach for making risk decisions in a fast‐
paced business environment. Process Safety Progress.
Luiz, J.M., Ganson, B. and Wennmann, A., 2019. Business environment reforms in fragile and
conflict-affected states: From a transactions towards a systems approach. Journal of
International Business Policy, 2(3), pp.217-236.
Njue, C.M. and Ongoto, H.K., 2018. Strategic management practices and change implementation
in selected public universities in Kenya. International Academic Journal of Human
Resource and Business Administration, 3(4), pp.124-149.
Polinkevych, O. and et. al., 2021. Business risk management in times of crises and
pandemics. Montenegrin Journal of Economics, 17(3), pp.99-110.
Saeed, M.E.A. And et. al., 2018. Millennials Motivation Factors and Job Retention: An Evidence
from Oil and Gas Company in Malaysia. Global Business & Management
Research, 10(3).
Silva, S.M., Ribeiro, J.L. and Sousa, B.B., 2021. The role of new technologies in people’s
retention, turnover and internal marketing: a literature review. Marketing and Smart
Technologies, pp.167-181.
Sinha, D. and Chowdhury, S.R., 2021. Blockchain-based smart contract for international
business–a framework. Journal of Global Operations and Strategic Sourcing.
Struwig, F.W., Nuwagaba, G. and Krüger, J., 2019. The influence of the business environment
on the growth of informal businesses in Uganda. The Southern African Journal of
Entrepreneurship and Small Business Management, 11(1), pp.1-10.
Suriyankietkaew, S., 2019. Taking the long view on resilience and sustainability with 5Cs at B.
Grimm. Global Business and Organizational Excellence, 38(3), pp.11-17.
Van den Berghe, W. and et. al., 2020. The association between national culture, road safety
performance and support for policy measures. IATSS research, 44(3), pp.197-211.
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