Global Business Environment: Impacts and Challenges for Sasol Limited

This report discusses the global business environment and its impact on Sasol Limited, an integrated energy and chemical organization. It covers topics such as McKinsey's 7S model, global operations, Hofstede's Dimensions of Culture, ethical and sustainable factors, strategic decision making, and strategic global expansion routes.

Global business
environment

Contents
INTRODUCTION...........................................................................................................................3
PART-1 (PPT Screenshots).............................................................................................................3
PART-2............................................................................................................................................9
SASOL applying McKinsey’s 7S model to the organization..........................................................9
An evaluation of how the above has been influenced by global operations and how the.........11
organisation has adapted to operating in a global market..........................................................11
Applying Hofstede’s Dimensions of Culture theory.................................................................12
An evaluation of ethical and sustainable factors that the organisation has to consider in.........13
a global market..........................................................................................................................13
Critical evaluation of strategic decision making in relation to risk and diversification in a
global context.............................................................................................................................14
Evaluation of the range of strategic global expansion routes....................................................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................18

INTRODUCTION
Global business environment is referred as the environment of various countries with having
different exogenous factors in home environment of company that impacts on decision-making
process of organisation and their resources as well as capabilities. As the business environment is
divided in two part such as internal business and external business environment that includes
various factors which has power to impact on business functions and performance such as
political, technological, legal and cultural factors. In this report the chosen organisation is Sasol
limited which is an integrated energy and chemical organisation established in 1950. It is oil and
gas chemical company, headquarter situated in Sandton, South Africa. 30,100 employees are
working with organisation. In this report McKinsey’s 7s model, impacts of global operations,
Hofstede’s Dimensions of Culture, Hofstede’s Dimensions of Culture, strategic decision making
and strategic global expansion routes are mentioned.
PART-1 (PPT Screenshots)

Notes
As the business environment is divided in two part such as internal business and external
business environment that includes various factors which has power to impact on business
functions and performance such as political, technological, legal and cultural factors. In this
report the chosen organisation is SASOL LIMITED which is an integrated energy and chemical
organisation established in 1950. It is oil and gas chemical company, headquarter situated in
Sandton, South Africa. 30,100 employees are working with organisation. in this report Pestle
analysis of organisation, key factors of globalisation, impact of digital technology on
globalisation and challenges and complexity of globalisation is covered in this project report.
Apart from that MicKinsey’s 7s model, impacts of global operations, Hofstede’s Dimensions of
Culture, Hofstede’s Dimensions of Culture, strategic decision making and strategic global
expansion routes are mentioned.

Notes
It is the described as the interdependency of world’s cultural, economic and population as well as
cross border trade of organisational products and services, people, information and technologies.
Corporations in developed economies gain various competitive advantages by globalisation. In
this concept that referred to operate business activities and functions at international level that
includes world’s most economies working together in order to provide products and services to
customer worldwide. There are various elements of globalisation like import, export and
business locations (Anggadwita, 2017). It has various advantages and disadvantages of
globalisation on social, cultural and political growth and development of companies through
expending business in global business environment. Different type of globalisation is done in
current business environment such as financial, economic, technological, sociological, cultural,
ecological and geographical that facilitates business to perform business activities across the
border and attain higher market share.

Notes
Pestle analysis includes various factors that impacts organisational performance and
functionality. Any changes in macro environment factor directly affect the SASOL LIMITED
organisation. Respected organisation analyses all these factors properly and formulate strategies
in order to overcome the impacts of external environment. These factors are defined below:
Political factor: Political factors plays important role in analysing the factors that affect long-
term profitability of SASOL LIMITED organisation.
Economic factor: There are various economic factors such as customer saving, inflation rate,
economic cycle, interest and foreign exchange rate affect SASOL LIMITED organisation
performance and functionality.
Social factor: Social norms, values and trends influence organisational cultural and performance
effectively.
Technological factors: In current competitive business environment rapid technological
advancement, innovation, automation as well as technology diffusion take place across the globe
that enhance the significance in technological factors in decision-making process of Sasol
limited.
Environmental factors: There are various environmental factors that affect the business
performance and profitability.
Legal factors: SASOL LIMITED analyse all legal environment as well as regulatory structure
before entering into new market.

As the respective organisation operates business functions and activities. As the organisation
deals in oil and gas in various countries so, it must avail all political rules and regulations of each
country. Political stability, taxation politics, trade restrictions and legal framework are the
important factors that affect the business performance effectively (Arshad, Farooq and Afzal,
2018). SASOL LIMITED evaluate all these and develop proper strategies to overcome negative
impacts. All these factors defined overall economic environment so, these are considered in
decision-making process for gaining competitive advantages. Development of economy, GDP
rate and efficient labour market conditions and financial market efficiently influence the growth
and development SASOL LIMITED organisation.
Notes
As globalisation is defined as the reducing trade barriers across the national boundaries as well
as enhance integration, interconnectivity and interdependency of various production process,
flow of financial resources, capital and products or services outside the national borders.
There are various key factors that derive the globalisation and plays important role in growth and
development of SASOL LIMITED organisation. These factors are discussed below:

Online shopping is started by the organisation by which customers search for products, find out
prices and place the order than it shipped to customers at world-wide locations (Hemilä and
Salmelin, 2017). Technology ensures borderless transactions through e-commerce and electronic
banking. SASOL LIMITED use social media platforms to promote products and ensure global
reach that facilitates to globalisation.
It facilitates SASOL LIMITED to exchange foreign currency in home currency that make it easy
for customers as well to purchase products and services globally. The factor enhances financial
globalisation and there are various features like Pay Pal that brings innovation in online payment
system to transfer money globally
Respective organisation brings various innovations to sustain in competitive business
environment (Marano, Tashman and Kostova, 2017). Because of higher competition firs
searching news foreign market for enhancing foreign direct investment. It increases the value of
globalisation for attain higher profitability objective.
There are various modes such as joint venture, franchising and licencing to enter in global
markets or providing products to global clints. Through enhancing the trend of globalisation
international business and trade increase that plays important role in growth of SASOL
LIMITED organisational as well.
As globalisation is droves by various factors that are interconnected with each other and
facilitates the organisation to conduct business functions across national borders and enhanced
profitability and market share.
Digital revaluation: Internet facilitates the SASOL LIMITED to access products and services
anywhere in the world. Mobile phones are used by purchasing products through booking online.
Financial liberalisation: Interconnection among countries enhanced because of deregulation of
financial market.
Intense competition: As there are high competition is faced by the organisation in local market
area so, SASOL LIMITED looking new marketing areas across the nations border in order to
expand business functions.
Enhances international business and trade: In current business environment various number of
organisations are involved in importing as well as exporting of goods or services across national
boundaries.

Cost: It is an important factor that act as an essential driver of globalisation. It is essential for
SASOL to emphasise upon cost drivers in the process of planning before expansion in order to
ensure success of expansion process.
Market environment: This factor is one of the most important factors that significantly drives
globalisation. In this, it is essential for SASOL to emphasise upon external and internal elements
of market environment of host country in order to make expansion process efficient.
Competition factors: As per this driving factor of globalisation analysis of competition in
market plays essential role in order to execute business operations successfully. In context with
SASOL top executives is required to evaluate competitive rivalry in host country in order to
enhance effectiveness of products and services as to ensure more competitiveness in market.
Global commerce and trade : This factor mainly evaluates globalised nature of modern nature
of commerce. It includes elements related to information and currency, exchange of goods and
services. With the help of this, SASOL can evaluate extent of level of competition in order to
completive with local businesses through which they can ensure more growth and competition.

Notes
Innovations in technological factors reduce cost of transportation and communication across the
nation that facilitates the respective organisation for global sourcing of raw material as well as
other inputs. There are patent technology is being innovated that encourage the concepts of
globalisation as organisational owned the specific patent that can be exploited in foreign markets
without facing competition (Marques, 2017). Information technology encourage the emergence
of global village. There are world wide web that reduce the time as well as place barriers for
dealing business operations properly. Through using various websites buyers and sellers make
number of transactions from any part of globe at ant time. changes in technologies affect the
requirement of investment. Now these days technologies are transferable easily to developing
countries in which higher technologies are combined with lower wages.
On the other hand, there are various negative impacts of technology in the globalisation such as
because of automation number of employee loss their jobs and it reduces the requirements of
man power to perform organisational functions effectively (Paudel, 2019). SASOL LIMITED
organisation analyse all these impacts and develop effective strategies the enhance organisational
global reach and customer base as well.

Notes
On the other hand, there are various challenges and complexities that limits the value of
globalisation. These challenges impact on business performance and functionality. So, SASOL
LIMITED analyse all these challenges that formulated proper strategies and policies for
overcoming them effectively. Some challenges of globalisation are mentioned below:
For the SASOL LIMITED organisation, It become difficult to find and retain effective and
skilled employees and managers who enhance the organisational values and work efficiency in
global market place. Respective organisation analyses the capital needs before expending
business in global market.
It becomes difficult for SASOL LIMITED organisation to manage overseas payroll as well as
maintaining compliances in the situation of regular changing employment and taxation related
legislations (Rubel, Kee and Rimi, 2017). As respective organisation operated business activities
in multiple markets so, it creates more complexity for organisation to manage all business
functions efficiently.

As many organisational provides products and services at lower prices for attract customers and
enhance market share but the increase the level of competition in the market and organisations
searching cheaper labour resources to reduce cost of production.
Higher investment cost: Globalisation enhance the challenge to multinational organisation as it
requires higher investment to establish business in new country and need capital to build
effective infrastructure and to run business functions.
Payroll and other compliances challenges: It is the major challenge for the organisation to
perform all functions in global expansion.
Foreign worker exploitation: To sustain in competitive business environment, organisations
exploit their workers for the purpose of enhancing organisational efficiency.
Global expansion difficulties: There are various difficulties are faced by the organisations to
expand business in global market and countries.
Immigration and local job loss challenges: Political conditions of every country is different from
each other that creates for organisation to operate there efficiently.
International trade law:
International trade laws duly govern the manner in which states regulate and can restrict
trade in services and goods. It has been evaluated that international trade laws is an important
aspect that include local, federal and foreign rules, ordinances, executive orders and regulations.
There is direct and indirect impact of international trade laws upon business operations of a
company. It has been evaluated that international trade laws grants countries to expand their
business areas and access products and labor. Furthermore, it has been identified that
international trade laws lead market to be more aggressive. It lead towards offering high quality
products and services to customers in affordable price segment. It has been assessed that these
laws are having direct effect which social financial and political forces influencing the business
tasks. This has been assessed that, the custom and the obligations laws redesign the business
action from the overall levels allowing the associations to discover the supervises market and
facilitators being developed of the business generally. Essential freedoms and the overall
criminal law have been overall issues which has affected the worldwide business as various
violators being locked out from the ordinary trade affiliations. Comparable to this, it is
significant for SASOL to have comprehension of all the international trade laws and plan cycle

of development in like manner to guarantee effective result without confronting any global
punishments because of carelessness of any applicable trade laws in international context.
Local government law (host country):
It has been evaluated that, local government law which is also known as host country law
law basically incorporate legislations, rules and regulations that properly oversees the way
wherein associations are needed to lead its business tasks. According to this, it is fundamental for
SASOL to successfully inspect all the vital and significant local government laws of host country
prior to making extension arrangement, as carelessness of this may lead organization to confront
numerous lawful punishments and claims that will influence their general business tasks.
Risk and diversification
To make business extension on worldwide level there are number of risks that are having
direct and indirect impact upon operations of business. In addition to this, these forms of risks of
global level incorporate raw material availability, finance, political stage and more. These risks
have ability to influence organization tasks in number of ways. Corresponding to this, it is
significant for SASOL the board leaders to conduct risks analysis before expansion. It will
effectively help in undertaking use of risk manager strategies as to overcome and lessening their
adverse consequence. It has been assessed that there significant relationship prevails among risk
and diversification. Consequently, it is fundamental for organization to accentuate upon this
viewpoint to guarantee fruitful extension.
Supply chain management
Supply chain management termed as management of raw materials, labor, products etc.
in order to transform raw materials into finished products and services. It is one of the most
important aspect that allow company to manage its supply chain in global market. It incorporates
the dynamic streamlining of a business' stock side activities with a rationale to acquire higher
competitive advantages. It has been assessed that supply chain management tends to an effort by
suppliers to make and do supply chains that are essentially just about as capable and proficient as
could be anticipated. Supply chains cover everything from creation to thing improvement to the
information systems expected to organize these tasks. Notwithstanding, it has been assessed that
in the process of expansion on global scale SASOL management must ensure use of strong and
effective supply chain management policies in order to conduct business in cost effective manner
while satisfying customers at best. Also, effective supply chain management network allow

SASOL to remain protected from recalls as well as lawsuits. Carelessness of this may lead
SASOL to confront adverse consequence on management of effective and smooth flow of
services and goods.
Notes –
It is recommended to SASOL LIMITED organisation to adopt various technological aspects and
advancements in organisational process that help to perform all functions efficiently and ensure
global reach.
It is recommended to respective organisation to implement all safety protocols, government
rules and updated policies and execute them with organisation in order to run business efficiently
and overcome all challenges and regulation compliances.
As there are majority of organisation that hire skilled and experienced employees for their
projects that creates shortages of key functions.
. SASOL LIMITED organisation analyse all these challenges properly than formulated effective
strategies and planning to overcome these challenges effectively and gain competitive
advantages than other competitors. To overcome all challenges respective organisation should
keep awareness of local as well as international business process and regulations to implement in
business properly and ensure smooth running as well. Some recommendations are mentioned
below:

Latest technologies reduce the production cost and efforts so organisation invest capital in other
organisational functions to expand business.
As uncertainty in environment, energy as well as financial policies creates hurdles and affect the
profitability ration of business. Awareness of these changes facilitates the SASOL LIMITED
organisation to expand business globally.
It is recommended to SASOL LIMITED organisation to hire better quality, innovative and
dynamic workforce who perform all take efficiently (Singh and Rao, 2017). Management
department of respective organisation ensure optimum utilisation of resources and their
availability on time to run business effectively.
It is recommended to organisation to develop effective planning and strategies supply chain,
competition, changes in material rates and for unpredictable weather and climate conditions to
overcome all challenges. Organisation should enhance skills of local and foreign workforce
through provide then training and ensuring proper communication to conduct functions
efficiently at global platform.
Notes –
It will diversify the situable manner that present in the business of management with the key role
term and the following sector in manner of risk and the basic orientated risk factor as effectively
and efficienty. It helps the business of management in their development and their mnagerial
functions and operations that present in the manner of the resources and capabilities in an
organisation.

Notes –
It will relate to the situation of strategic challenge in the global context that are to be discussed
with the following manner of the strategies in terms of managerial actions and activities as
effectively and efficiently in the business of management.
Notes

Before conducting business activities various external factors are evaluated by the organisation
for efficient running. There are various factors that drive globalisation and advancement of
digital technology impacts on globalisation positively and negatively. Organisation’s face
various challenges to conduct business operations globally and different strategies are adopted by
the business to overcome these challenges efficiently.
Notes
Djelic, M.L. and Quack, S., 2018. Globalization and business regulation. Annual Review of
Sociology.
Hemilä, J. and Salmelin, J., 2017. Business model innovations for 5g deployment in smart cities.
In ISPIM Conference Proceedings (pp. 1-7). The International Society for Professional
Innovation Management (ISPIM).
Marano, V., Tashman, P. and Kostova, T., 2017. Escaping the iron cage: Liabilities of origin and
CSR reporting of emerging market multinational enterprises. Journal of International Business
Studies. 48(3). pp.386-408.
Marques, J. C., 2017. Industry business associations: Self-interested or socially
conscious?. Journal of Business Ethics. 143(4). pp.733-751.
Paudel, S., 2019. Entrepreneurial leadership and business performance. South Asian Journal of
Business Studies.

Rubel, M.R.B., Kee, D.M.H. and Rimi, N. N., 2017. The mediating role of work–family conflict
on role stressors and employee turnover intention relationship in labour-oriented
organizations. Global Business Review. 18(6). pp.1384-1399.
Saad, Z. M., Sudin, S. and Shamsuddin, N., 2018. The influence of leadership style, personality
attributes and employee communication on employee engagement. Global Business and
Management Research. 10(3). p.743.
Singh, B. and Rao, M. K., 2017. To gear up firm performance in banking industry: The role of
dynamic capability. Global Business Review. 18(4). pp.1019-1040.
PART-2
SASOL applying McKinsey’s 7S model to the organization
SASOL LIMITED is considered as the fasted growing brand in South Africa. The
McKinsey 7s model is defined as the strategic tool that facilitates the managers and organisation
to analysis of performance. There are seven elements are included in that focus on the implement
all changes in management process and ensure enhancement of organisational performance. It
measured various effect of globalisation SASOL on LIMITED supremacy, leadership, structure,
operations and culture. McKinsey 7S model of SASOL LIMITED are defined below:
Strategy: SASOL Limited organisation develops effective strategies after analysation of
business environment factors that are clearly defined as well as communicated to organisational
employees and stakeholders so, they perform in well-defined manner (Acs, Szerb and Autio,
2017). Appropriate strategies facilitate the respective organisation to manage performance and
guide to attain all desired outcomes. Strategies of SASOL Limited help to gain various
competitive advantages over competitors and evaluating the market pattern and customer
consumption behaviour.
System: SASOL Limited develop clear and well-defined system that ensure effectiveness all
business functions and resolve all conflicts and disputes. There are various systematic
department such as finance, marketing, sales and human resource management. Organisational
implements effective system to control the performance in order to attain all defined goals in
systematic manner.

Structure: SASOL Limited organisation adopts flatter organisational structure that contains
lees managerial levels and access senior leadership and management. It facilitates the
organisation to take quick and effective decisions that enhance overall performance. The
organisational structure maintains high coordination among all departments and ensure proper
flow of communication to attain defined goals and objectives.
Skills: SASOL Limited organisation has highly skilled and capable workforce who are
recruited on the bases of their qualification that matched the defined job role. Respective
organisation provides training and development programmes to enhance employee skills that are
required to perform specific task (Brown, Clark and Buono, 2018). Efficient employees provide
various competitive advantages to organisation than other competitors.
Shared values: The core value of SASOL Limited organisation are properly defined as well
as communicated that supports organisational structure which motivates employees towards
organisational commitment so they perform in efficient manner to accomplish goals. There are
various values such as creativity, accountability, trust and honesty. Organisation ensures that
these values are aligned with task and corporate culture properly.
Style: SASOL Limited organisation adopts participative leadership style in which
organisation motivates employees to take active part in decision-making process. Leaders
interact with employees directly and resolve their conflicts as well. It is effective style that
inspire employees to perform their functions with effectiveness for the purpose of attain specific
goals and objectives.
Staff: SASOL Limited organisation has number of skilled and experienced employees who
perform all business operations efficiently. There are proper recruitment process in used by the
organisation to select suitable employees (Dauvergne 2018). The respective organisation has
system to analyse the potential capacity and capabilities. Employees of organisation are recruited
from various countries to perform operations efficiently.
An evaluation of how the above has been influenced by global operations and how the
organisation has adapted to operating in a global market.
In global market is being standardized with the products that are advances in functionality
and reliability as well as sold at relative prices. Internet and various technologies make it easy to
reach potential market area and customers. As there are various factors are in McKinsey 7s
model such as structure, system, style, staff, skills, strategy and shared values that are used by

the SASOL Limited to develop strategic planning and influenced the global operational and
ensure the effectiveness in order to attain all defined goals and objectives on time.
SASOL Limited organisation conduct various organisational activities and functions in global
market place. There are systematic approach is adopted by the organisation for operating
business internationally such as first of all organisation develops strategies and planning after
analysing the market trends than identify the products and services to sell in global market place.
These products are produced according to needs and demands of foreign customers that enhance
sales of organisation in global market (Dhir, Ongsakul and Batra, 2018). In next step SASOL
Limited develops export plan with the help of government resources that contains all information
about and regulations regarding export procedure. After analysing all global trends organisation
better understanding from products and licencing requirement to establishing pricing of products
and formulate strategies. Organisation conduct proper marketing research through primary and
secondary research that provide valuable and reliable information and data to organisation to
develop strategies and planning. Segmenting all potential export market is the component for
assessing various export opportunities than SASOL Limited assess the competition level in
targeted market segment to develop strategies.
In next step organisation determines the regulatory requirements related to packaging and
labelling of products to sale them in global market place. For the purpose of testing market for
products and service organisation conduct trade shows that spread the brand awareness in
market. To conduct global business SASOL Limited test defined marketing strategies in single
market place that consist low barriers of entry. Thus organisation operated business operation in
global market for the purpose of expanding business.
Applying Hofstede’s Dimensions of Culture theory
Hofstede's Cultural Dimensions of cultural
The theory of cultural dimension is defined as the framework that is used by the organisation to
identify differences in various cultures across countries as well as evaluate the business
functionality in which manner business is done in various cultures (Eberlein, 2019). Basically,
the framework is used by SASOL Limited organisation distinguishes the differences various
national cultures, different dimensions of cultures as well as help the respective organisation to
assess impacts of these factors on business objectives. The main objective of respective model to

determine various dimensions in which cultures of various countries varies. There are six
categories that defined the cultures that are mentioned below:
Power distance index: The power index is determined as the concepts in which inequality as
well as power factors are tolerated. In this dimension, both concepts such as inequality and
power are considered as the point of view of followers. There are two types of power indexes are
like high power and low power index. SASOL Limited organisation individuals and leaders who
work towards improving association as per the current business requirements.
Individualism vs. collectivism: This dimension is defined as the degree in which societies
are integrated into groups as well as there various perceived obligations and dependence on
different groups. SASOL Limited organisation focus on the collectivism dimension in order to
complete work in well-presented structural manner (Falkner, 2017). As the individualism is
focus on the attaining personal goals and objectives on the other hand collectivism is important
for accomplishing all collective goals of groups.
Uncertainty avoidance index: It is determined as the extend in which uncertainty as well as
ambiguity is tolerated. It describes that how unknown situation or unexpected events are deal in
organisation effectively in order to attain objectives. SASOL Limited organisation has lower
uncertainty avoidance index that indicates as the low tolerance for organisational uncertainty and
risk-taking and uncertainty is minimised by applying strict lows and regulations.
Masculinity vs. femininity: The respective dimension is defined as the preference of society
for achievement, attitude, equality and behaviour. As masculinity is measured as the potentiality
like fierceness and deficiency. On the other hand, femininity is related to fluid gender roles,
nurturing as well as it is concerned with the quality of life.
Long term vs. short term orientation: It is related to time horizon which is used by the
organisation to implement the planning and strategy (Fontell, and Heikkilä, 2017). SASOL
Limited organisation focus on the short as well as long-term objectives to attain all
organisational goals and objectives properly. Short term orientations provide quick results and
long-term orientation focus on perseverance as well as long term growth and development.
Stakeholders concept: as stakeholders are the one who are connected with the company
internally or externally. Their are several stakeholders like customers,e employees, board of
director, mangers, government and suppliers etc. as these stakeholder are connected with each
other directly or indirectly. If suppliers provide better raw material to the company then then

customers will be more purchase their products and service. If mangers trained employees well
then they will not loose their confidence at the time of promotion and say their talk effectively to
the clients. For example- if the whether changes then this could affects the company. If there is a
changes in customers rights and any other health and safety rights then this could be results in
changing policies of company by mangers.
Sustainable globalisation: globalisation is related with expansion of the beguines and
technologies in all over the world. Sustainable globalisation is related with fundamental
transformation of how people work in global world that is in 21st century. For example- company
is spanning in 30 countries so it needs to adopt updated technologies for being sustainable in the
global market.
D1 Critically evaluate the global business environment, including the opportunities and
challenges faced by organisations.
An evaluation of ethical and sustainable factors that the organisation has to consider in
a global market
As ethical and sustainable factors are considered by the organisational to operate business
operations at international level. There are various regulations are formulated by the government

and SASOL Limited followed them in order to attain sustainable competitive advantages then
other competitors. Some factors are defined below:
Environmental and regulatory consideration: In order to operate business at international
level, it is important to follow all rules and regulations that are related to environment. SASOL
Limited company implement all environment considerations to protect environment and reduce
pollution. Respective organisation adopts various technologies to dispose waste material and
using recycling process as well that provides sustainable competitive advantages.
Social and cultural factors: There are various social as well as cultural factors that
impacts on business globally. Proper understanding of these cultural and social norms help to
perform all business functions effectively at international level (Kamariotou and Kitsios, 2019).
It facilitates the SASOL Limited by enhancing organisational profitability because local
community accepts the organisation due to implementing norms.
Cultural marketing consideration: Providing product and service that are fit in cultural
framework of every country in not enough for organisation to run business in efficient manner
but marketing of specific message to customers is necessary to fulfil all cultural norms. SASOL
Limited organisation publish these messages through advertisements according to cultural
requirements. Effective campaigns provide various sustainable competitive advantages to
organisation.
Proper wages and benefits: Wages and benefits is the most important ethical issue in
operating business at global level. As organisation focus on hiring workforce at low wages rate
that enhances organisational profits. SASOL Limited organisation imported products at lower
price from country and sold them on higher rates in another country that increase the margin but
they loss employees because of paying low wages (Khalid and Seuring, 2019). The respective
organisation provides appropriate wags according to their performance and develop effective
working environment in order to enhance employee performance.
Critical evaluation of strategic decision making in relation to risk and diversification in a global
context
As globalisation is defined as the removal of all barriers in trading across the national
borders that enhance the integration of capital markets, production process and flow of
technology, financial resources, products and services, knowledge as well as labour in different

countries in order to expand business internationally. Globalising and liberalising policies protect
national organisation from various foreign competitors through removing trade barriers that help
to regulate free trade. There are higher competition is fount at global level, so SASOL Limited
organisation formulates various strategies gain opportunity of exploiting across the globe
through reducing cost of production.
Strategies direct the SASOL Limited to attain long-term goals and objectives that provides
competitive advantages in dynamic environment through accomplishing all expectation of
stakeholders and configurating the resources (Marques, 2017). SASOL Limited enhance strategic
capability that includes various resources and competencies that facilitates the organisation to
compete in competitive environment. Organisational strengths and weaknesses are the source of
competitive advantages and disadvantages over competitors.
Leadership and decision-making: As globalisation has enhanced through accessing all
information and transfer cultural, values and beliefs. Globalisation affect the decision-making
process of managers to change their leadership style to perform traditional authoritarian
leadership to participatory transformational leadership. In this leadership organisation involve
employee perspective and ideas in organisational decisions. Both concepts of internationalisation
as well as transformational leadership facilitates SASOL Limited to gain advantages in intensely
competitive global environment. The leadership style help organisation to implement strategies
effectively and efficiently and allocate resources properly. Through globalisation, customers can
get information and compare prices and quality of products and services globally. Respective
organisation delegate the power of decision-making to local centres. SASOL Limited formulates
various strategies according to changes of customers changing requirements. There are various
decisions are taken by the managers of organisation regarding internationalisation to enter in new
markets and exit in less potential markets. Higher risk involves in decisions that are evaluates to
take competitive advantages.
Handling risk: As there are various decisions are taken by the SASOL Limited
organisation regarding entering and existing form markets that involves high risk because these
decisions are taken on the bases of uncertain demand of customers. There are risk management
principle is developed in order to mitigate risk as well as their efforts. Current trend of
globalisation enhances the requirement of risk management tool for formulating effective
international strategies (Venkatesh, Mathew and Singhal, 2019). There are five steps are

involved in this process such as risk identification, analysation, prepare planning, controlling and
take decision making.
International diversification: As high level risk is involved in decisions because of intense
competition and globalisation that forces organisation to diversify their business operations in
order to gain higher market share. It facilitates the SASOL Limited organisation to manage
performance because poor performance in certain market areas are compensated by the higher
performance in another market. The concept of international diversification is defined as the
strategic way through with SASOL Limited enter in foreign market to attain competitive
advantages and enhance its markets share in various countries. Respective organisation analyses
the current trends of market and take proper decisions in develop effective international
diversification strategy and implement them to attain defined objectives.
Evaluation of the range of strategic global expansion routes
International expansion strategy are defined as the formal, multi-level strategic plans that
facilitates the organisation ton enter in global market and maintain effective presence. There are
various routes that expanding business at global level that are used by the SASOL Limited to
perform organisational functions at globally (Raisinghani and Idemudia, 2019). Some routes are
mentioned below:
Licensing: Licensing is defined as the process that allows other country to use organisational
properly. The properly includes various intangible properties such as patent, production
techniques and trademark. The licensee pays the fee to licenser for using specific property.
SASOL Limited use licensing for expanding business functionality that requires lower
investment and provides higher return to organisation. In the process of licensing, licensee
handles the manufacturing and marketing cost in foreign market.
Exporting: Exporting is defined as the most common route to enter in international business.
As it is related to direct selling products and services to another country that contains lower risk
to expand business in global market. It is the cost-effective method to serve products in another
country without investing in production process as SASOL Limited produces products in home
country and sent them to foreign country for sale (Wiesmann, 2017). Enhancing the cost of
transportation increase overall cost of export. There are various factors are included in exporting
process such as importer, transport provider, government and importer country.

Strategic alliance: Strategic alliance is defined as the basic arrangement between two events
for merging capitals to attain jointly advantage strategy that are defined as per to the part of
planned association. In the business of management of SASOL LIMITED, that are managing the
self-sufficiency through procedure as effectively.
Foreign direct investment: Foreign market investment is defined as the procedure in which
SASOL Limited organisation directly invest in foreign markets that contains high capital to
establish premises, technologies and staff. It is related to establishing new venture or acquiring
the existing organisation to expand in global level.
CONCLUSION
As per above report, it can be concluded that global business environment plays
important role in expansion and development of organisation. There are various internal as well
as external factors are included in business environment. Organisations provides various
products and services to customers across the border and ensure higher market share and
customer base. There are McKinsey’s 7S model is applied by the organisation to formulate
organisation strategies to conduct business efficiently. There are various modes through with
organisation expand business in other countries. Strategic decision-making is the process that
help business to handle all risks and perform in well-defined manner.

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