Structure, Culture and Governance of SASOL: Applying McKinsey Model and Evaluating Global Operations

Report Format

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
PART 2............................................................................................................................................3
Structure, culture and governance of an organization such as SASOL applying Mckinsey
model to the organization............................................................................................................3
Evaluation of above elements influenced by global operations and organization adapting these
elements in global market...........................................................................................................5
Hofstede's Dimension of culture demonstrating the influence on the organization...................5
Evaluation of ethical and sustainable factors that organization must consider in global market
and its impact on the decision-making........................................................................................7
Strategic Expansion routes available to the organization...........................................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Global business environment refers to the environment of a company doing its business
globally. This helps the business to analyse the market by analysing with the companies,
competitors and clients of the organization. SASOL Limited is an organization doing its business
in energy and chemical in Sandton, South Africa. Presently, it develops the synthetic fuel
technologies and also produces types of liquid fuels, electricity and different types of chemicals.
This report will outline the structure, culture and governance of organization applying
Mckinsey's 7S model and evaluation of factors influenced on global operations. Further this
report will outline the Hofstede's dimensions of culture and its influence on organization. It will
also outline the ethical and sustainable factors and its impact on decision-making and strategic
expansion routes available for the organization.
PART 2
Structure, culture and governance of an organization such as SASOL applying Mckinsey model
to the organization
Structure of the organization refers to the system that in which the activities of the
organization is working. This describes the flows between the levels of management like from
top to down management (Gökdeniz, Kartal and Kömürcü, 2017). The organization must follow
this structure for the proper flow of the management in the company.
Culture of the organization is the collection of practices, values, ethics etc. which makes
the organization work nicely. Culture of the organization depends on the types of employees
recruited. The organization must recruit and select best employees which maintains makes their
organizational culture.
Governance in the organization helps the employees to always think good for their
business. This makes the company to increase their production and unlock the innovative
opportunities. SASOL employees should have good governance which helps to increase the
growth of company by reducing the risk.
7S Mckinsey’s Model
The Mckinsey's 7S model describes the different tools which helps the company to
analyse the design of the organization. It has seven elements which are- Structure, Strategy, skill,
Shared valued, Systems, Style and staff.

1. Structure: In this element, it describes the type of structure that the company is
following in their business organization (Gechkova, and Kaleeva, 2020). Its
shows the relation between the employees and owner that who is accountable to
whom. The organization must know the accountability and responsibility for
maintaining the proper structure in the company.
2. Strategy: This is very important for the company to make the strategy for
achieving the profit in the market. Strategies can be of long term as well as for
short term. It makes the company to have a competitive advantage in the market
and compete with the competitors.
3. Skills: These shows the abilities of the employees which should have by them in
order to perform good in the organization (Mckinsey 7S model, 2021). The cited
company employees must have technical skills to use the machines used in
making of chemicals and fuels.
4. Shared Valued: These are the core values of the company as these include
standards and norms which helps the employees that how to behave in the
organization. The employees of the SASOL must be properly guided with the
norms and standards of the company,
5. Style: This element shows the management style of the company like in which
way the top-level managers are managing the company. The organization must
have good style of managing and interacting with their employees.
6. Staff: This element includes that the type of employees needed in the organization
and how they will be selected, motivated and trained for their work. The
organization should recruit, select and trained their employees as it works in
chemical and fuels making which is done by using the safety needs.
7. Systems: This includes the procedures of the business organization which helps
them to work in a proper flow and make the decisions regarding the company.
The cited organization must have system and process of managing the work
which helps them to earn good profit.