Global Business Environment: Impacts and Challenges for Sasol Limited

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.