Global Business Environment: SASOL's Structure, Culture, Governance, and Expansion Strategies

This report evaluates the impact of globalization on SASOL's structure, culture, governance, and expansion strategies. It applies McKinsey's 7C model, Hofstede's dimensions of culture, and ethical and sustainable factors to assess the company's performance in the global market. It also critically evaluates strategic decision-making in relation to diversification and risk in an international context.

UNIT 18 – GLOBAL
BUSINESS ENVIRONMENT

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
PART 2............................................................................................................................................3
1- Explanation of structure, culture and governance within SASOL as application of
McKinsey’s 7C model.................................................................................................................3
2- Evaluating the influences of globalization on companies operations and how the
organisation has adapted to operating in a global market............................................................5
3- Applying Hofstede's dimensions of culture to demonstrate how SASOL has been influenced
......................................................................................................................................................6
4- Evaluating ethical and sustainable factors that company has to consider in a global market. 9
5- Critically evaluate strategic decision-making in relation to diversification and risk in a
international context...................................................................................................................10
6- Assessing range of strategic international expansion routes accessible to SASOL- 212......10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Global business environment refer to set of factors that create atmosphere in the business
world which put direct impact on success and growth of a company. It is also defined as
environment that created in varied sovereign nations where different forms of organizations
accessible and run their ventures successfully. The current assignment will be based on SASOL,
which falls under the category of leading chemical organizations in the world. The purpose of
this study is to explain structure, governance and culture within a company, and define how these
terms influence by global operations. It will specify how firm has adopted these things to operate
in a international market. Furthermore, the report will justify application and influence of
Hofstede's dimension of culture on organization. It will also clarify the ethical and sustainable
factors and strategic decision-making in relation to risk & diversification. Lastly, the study will
specify strategic global expansion routes available to SASOL.
PART 1
Covered in PPT
PART 2
1- Explanation of structure, culture and governance within SASOL as application of McKinsey’s
7C model
Globalization is one of those external factors that put direct impact on success and growth
of organizations, whether they are small or large, private or public. It may affect the current
resources and practices of companies such as SASOL. In case of chosen firm, specific strategic
model may apply that define structure, governance, culture and other elements and this model is
McKinsey’s 7S. Each element of this framework has been influenced by globalization and these
are;
Strategy-
Effective strategy formulation within SASOL play vital role to make organization
successful and productive, even in case of globalization that put impact on current planning
strategies of venture (McKinsey 7S Model, 2022). By developing effective and strong tactics,

management may take pleasure of gaining competitive advantages in the market, where firm has
established its business.
Structure-
This term refers to varied forms of sections or departments that accessible in the company
and contribute to create an environment or culture, where individual candidate perform to reach
desire outcome. It may contribute organization to gain competitive benefit in effective manner in
form of engaging candidates for longer by boosting their morale and confidence level.
Systems-
Organizational system or program refer to process of getting job done on regular basis
that affect individuals performance and productivity (McKinsey 7-S Framework, 2022). This
Illustration 1: McKinsey's 7S
(Source: What is McKinsey’s 7-S, 2022)

element includes effective protocols and processes that individual candidate may have to follow
when they attempt to complete task or any work in the workplace.
Style-
This term refers to effective leadership style that a leader in SASOL may adopt and
utilize to obtain desire outcomes. It is one of those elements that influenced by globalization in
term of driving leaders' attention toward adopting the best leadership style that support aim
achievement.
Staff-
Skilled and experience workforce in SASOL may contribute to gain competitive benefit
in term of completing each task on time, without making any mistake that affect current
management practices negatively. With large and strong team of players, organization may deal
with any uncertain situations that may occur because of globalization.
Skills-
Along with above, this component also contribute to make organization successful and
productive in the market in term of delivering products and providing to customers according to
set timeline. It may happen because of skilled and knowledgable employees who may hold and
utilize set of skills.
Shared Values-
It is all about the culture of a company, whether it large or medium. In case of SASOL,
shared values play significant role in term of encouraging employees to perform in productive
manner. It may enable firm to give tough competition to rivals by using and having those
candidates that are engage in decision-making process and get freedom to interact with each
other appropriately.
2- Evaluating the influences of globalization on companies operations and how the organisation
has adapted to operating in a global market.
Structure, leadership, governance and culture are those elements or factors that has been
influenced by globalization or global operations, which SASOL may conduct while running
venture into international level. It is fact that when a company operate globally, it may make
possible modifications in the context of their organizational structure, which is quite essential
and beneficial, but challenging as well (Bashan and Kordova, 2021). It is essential for chosen
company to make modification in the context of its structure in term of eliminating or adding

more departments, while running venture into international context, because it may enable firm
to manage everything from operational to functional activities accordingly.
Like structure, global operations or globalization put impact on culture as well. For
example, it may affect negatively, when existing workforce take approach to work with freshers
in a new market internationally (Suryosumunar and Noorzeha, 2021). The culture may influence
because each employee belong to different nation, state, or culture that impact on their
performance and make clashes that decrease productivity and performance level of SASOL.
Leadership and governance also influence by global operation in positive manner, in
term of enabling leader to adopt new leadership style which allow them to manage employees
performance appropriately. Due to globalization, firm may take pleasure of exploring new
market and developing plan to grab current growth chances.
Organization adopts certain elements to operate internationally-
Business expansion is the biggest decision, that most of the companies take to obtain set
aims and objectives and unpredictable outcomes. This decision comes with certain challenges
and changes that effects current practices of administration. In case of SASOL, it may adopt
influence of globalization upon culture, structure, governance and other elements in positive
manner. It may develop strategic plan to mitigate negative impact of current term, which is quite
essential and beneficial for organization to do so, appropriately. It can be said that globalization
as key external factor put negative impact on firm in term of creating those challenges that put a
lot of pressure on management to change the way they work and act. The adopting decision to
company in regard to globalization impact, may enable it to grow and succeed productively that
in turn provide a lot of benefits in term of increasing profitability, and generating revenue more
than last few years or months.
3- Applying Hofstede's dimensions of culture to demonstrate how SASOL has been influenced
Cultural, perspectives and attributes differences between a nation or individual person
may influence a firm, when they take approach to operate globally & nationally. The best way to
determine the impact on nations differences that influence SASOL is application of specific
model such as Hofstede's culture model that covers 6 different forms of dimensions. Each
dimension defines specific things about two countries in a comparative form.

Power distance-
China scores 80 in regard to power distance dimension which means as compare to UK,
society in this nation has faith that inequalities among individual are acceptable. As firm may
take decision to enter into China, while managing venture growth in the United Kingdom, it may
face challenges and influenced by this in negative manner (Hofstede’s Cultural Dimensions
Theory, 2022). As population in the UK prefer to adopt and follow ethical terms, that mean they
do not accept any form of inequality that put impact on individual person growth. This form of
difference affect negatively upon SASOL in term of decreasing organizational productivity and
employee turn over.
Individualism vs collectivism-
China score 20 as it has highly collectivist culture that affect people practices and
decision-making process. While UK, scores 89 that mean individual person in this nation prefer
to work individually instead of conducting collaborative practice. Difference between both
Illustration 2: Hofstede’s Dimensions of Culture
(Source: Hofstede’s cultural dimensions and differences
across cultures, 2022)

nations dimension also put negative impact on SASOL success in term of creating negative
environment in the workplace, where existing workforce to not accept and tolerate that other
individual candidate interrupt them.
Masculinity vs Femininity-
Along with above, current dimension of culture also influence SASOL because of
holding differences between countries where firm exist and tend to enter such as China, to
continue the procedure of global expansion. UK and China score equal (66), that mean both
nations are a Masculine society, which means individual person drive by competition, success
and aim achievement. It may put positive impact on chosen company in term of gaining benefits
as individual candidate hold same attribute and thinking in regard to this dimension.
Uncertainty avoidance-
China score low on current term as 30 and UK gain 35 that define the differences
between both nation's society perspectives. According to scoring, in the new market, people feel
more comfortable with ambiguity, risk, and dependency on structural duties, as they always face
challenges, to survive in their life because of varied factors such as storm, earthquake, etc.
While in the United Kingdom, as per the score, people are less comfortable with attempt through
laws, rules and uncertainty. This of difference between both nations put impact on company in
term of decreasing productivity when candidates avoid involvement in the context of overcoming
uncertain situation in the global context.
Long vs short term orientation-
UK score 51 and China gain 87 in long vs short term orientation as key dimension of
Hofstede's culture differences model. This difference put impact on SASOL in negative manner,

as existing candidates may believe to do not accept change, while Chinese may have capability
to adopt tradition which enable them to change any situation.
Indulgence vs restraint-
China is restrained society while UK is an indulgence community. The differences
between both countries put impact on SASOL success, in term of creating more challenges for
management to manage business performance with existing and new candidates. As they are
differed form each other on certain basis.
4- Evaluating ethical and sustainable factors that company has to consider in a global market
Workplace health & safety, discrimination, and data privacy, are one of those factors
that SASOL and its management may take into their consideration for purpose of sustaining
venture into global level. These forces influence organizational functions in positive manner,
when management may take into their consideration appropriately (Casali and Perano, 2021). It
can be said that workplace health and safety impact on HRM function in term of driving their
attention toward conducting those activities that make employees safe, whether they are working
nationally or internationally. It is also essential for chosen firm to consider data privacy and
discrimination actions that affect business success. It may take approach to prevent employees
from any form of discrimination that lead to create complications for management to run
business in global context. It is important for them to consider candidates needs and provide
them fair growth chances, instead of conducting differentiation practice that put brand image in
the market. They may also take approach to prevent data from being stolen by third party without
approval or access.
Human, social, environment and economic are considered as sustainable factors that
organization may have to consider along with above ethical forces, especially in case of
international market (Montiel and et.al., 2021). As each factor put impact on its success and
progress, whether it is negative or positive in manner. For example, SASOL and its
administration may concentrate on environmental sustainability as the leading or emerging
concept. According to that, it may take action to utilize recyclable raw materials for products
packaging that put positive influence on land, air and water and prevent these terms from being
polluted. It is quite essential for company to provide fair growth or employment chances to
individual person within existing and new market, as it influence organizational success. It
affects positively in form of increasing operational effectiveness, because with talented and

skilled people, firm may grow rapidly and in productive way. It may gain competitive
advantages by considering each category of factors that in turn provide unpredictable benefits in
additional to business.
5- Critically evaluate strategic decision-making in relation to diversification and risk in a
international context
International expansion refer to procedure of internationalizing a venture that
encompasses varied actions, factors and practices. While doing venture internationally, firm may
face several challenges or risks that put impact on brand success. In regard to these things, it is
important for manager to take strategic decision (Chih-Yi and Bou-Wen, 2021). For example,
Quotas is the best examples of trade barrier that emerge during process of internationalizing
venture. In the context of this risk, SASOL may take decision to follow the rules related to trade
and pay charges, for purpose of exporting and importing things smoothly.
It is necessary for company and its management to take right decision regarding other
terms such as diversification, which falls under list of strategic management tactics. They may
conduct appropriate market research, that enable brand to collect useful information and take
decision to diversify venture in international level (Gopal, Manikandan and Ramachandran,
2021). They may take judgement to invest money in profitable things such as consumer trends
identification, innovation and technology implementation that is advanced and encompasses key
features better than existing technologies. Organization also may take decision to expand venture
by considering consumers needs that is essential and beneficial too, to reach and sustain in global
level.
6- Assessing range of strategic international expansion routes accessible to SASOL- 212
For purpose of business expansion or internationalization, SASOL may take approach to
select specific route to internationalize, among list of many that are accessible in the corporate
world.
Joint venture-
This route drives the concentration and efforts to a company toward conducting ethical
and legal practices in term of developing a contract with other firm, where they may plan to enter
(Sharma and et.al., 2021). This contract guide both firms to share risk and project profit equally.
Partnership-

Another approach or route that SASOL may consider is current one, according to that it
may develop a business relation with other company in effective and ethical manner. It may give
firm chance to build partnership relation with successful brand that may have strong workforce
and wide customer base.
Acquisitions and Mergers-
This route include obtaining a firm that is already in existence in a new market, where
SASOL tend to enter such as China (Holland and Scullion, 2021). According to current method
of internationalization, firm may take initiative to acquire new venture that is profitable and
productive in nature.
As new entrance firm in China, organization may take approach to utilize partnership
expanding approach to enter into international level. It may enable firm to conduct less effort to
retain consumers as existing company may already did that.
CONCLUSION
On the basis of above discussion, it has been concluded that organization has sustained
and managed its venture into business world successfully, by considering and developing
understanding about globalization elements. It has gained competitive benefit in bulk by creating
organizational culture up to the mark and considering employees needs while conducting each
activity or taking decision. Furthermore, from above study, it has been determined that selection
of strategic international expansion way enabled brand to enter into profitable market, where the
success and growth opportunities accessible in bulk. By taking right decisions, firm has
increased its profitability, performance and productivity.

REFERENCES
Books and Journals
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Chih-Yi, S. and Bou-Wen, L., 2021. Attack and defense in patent-based competition: A new
paradigm of strategic decision-making in the era of the fourth industrial revolution.
Technological Forecasting and Social Change. 167. p.120670.
Gopal, S., Manikandan, K.S. and Ramachandran, J., 2021. Are there limits to diversification in
emerging economies? Distinguishing between firm‐level and business group strategies.
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Holland, D. and Scullion, H., 2021. Towards a talent retention model: Mapping the building
blocks of the psychological contract to the three stages of the acquisition process. The
International Journal of Human Resource Management. 32(13). pp.2683-2728.
Montiel, I and et.al., 2021. Implementing the united nations’ sustainable development goals in
international business. Journal of International Business Studies. 52(5). pp.999-1030.
Sharma, B and et.al., 2021. A Joint Venture of Ab Initio Molecular Dynamics, Coupled Cluster
Electronic Structure Methods, and Liquid-State Theory to Compute Accurate Isotropic
Hyperfine Constants of Nitroxide Probes in Water. Journal of chemical theory and
computation. 17(10). pp.6366-6386.
Suryosumunar, J. A. Z. and Noorzeha, F., 2021. Antonio Gramsci’s Perspective on Dominant
Culture and Social Media’s Impact in the Era of Globalization in Indonesia. Journal of
US-China Public Administration. 18(1). pp.38-46.
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