Unit-18 Global Business Environment: Analysis of SASOL's Structure, Culture, Governance, and Expansion Routes

Unit-18 Global business
environment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Explanation of the structure, culture and governance of SASOL...............................................3
Evaluation of the global operation influence and adaptation of the organization into global
market..........................................................................................................................................5
Application of Hofstede’s Dimensions of Culture for demonstrating the organizational
influence......................................................................................................................................5
Evaluation of Ethical and sustainable factors consideration by the organization and the way it
impacts decision making in global context..................................................................................7
Assessment & Critical Evaluation of the range of strategic expansion routes available to the
organization.................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
Globalisation is defined as the process by which various individuals, business and
government interconnects with the aim of performing trade and commerce related activities. The
environment that comprises all the external business environment factors of different countries is
classified as global business environment. Sasol is a multinational company dealing in a wide
range of chemical & energy products. This company is an expert in the field of technology. In
the current report structure, culture and governance of the company will be explained using the
framework named MCKinsey 7s. Operating globally impacts the culture and structure of an
organization, the report will be discussing the impact of globalisation on the structure and culture
of SASOL. The report will be demonstrating effective application of Hofstede’s cultural
dimension model. The ethical and sustainable factors that are needed to considered in decision
making process at SASOL will be covered in the report. Lastly the report will be evaluating the
strategic expansion routes for the company.
MAIN BODY
Explanation of the structure, culture and governance of SASOL
MCKinsey’s 7s Model
It is a tool that is used by organizations to analyse the organization’s design. There are
seven main elements that collectively constitute this model. Below is the explanation of these
model in context of SASOL.
HARD ELEMENTS
 Strategy – The company plans the strategy that enables it to operate continually and
grow in this element of the model. The Business model of SASOL is such that it puts
together the strategy in long term with all the rest of the elements. This enables the
company to attain its goals and make a sound relation with the customers in the long run
(Razmi, Mehrvar and Hassani, 2020). The helps in creation of the company’s vision,
mission and values.
 System – The system element is concerned with the organization’s routine functions and
the orderliness of its activities by following of ideal methods. The system is made
systematized which enables the understanding of the activities of business in the
situations that are usual as well as in the unusual events. The company benefits in the
form of having best results from the proper arrangement of activities.