Comprehensive Report: Global Business Environment of SASOL Limited

This report provides a comprehensive analysis of the global business environment, focusing on SASOL Limited. It begins with an overview of globalization, its driving factors (cost, marketing, competition, and environment), and the significant impact of digital technology. The report then applies a PESTLE analysis to assess the political, economic, social, technological, legal, and environmental factors influencing SASOL. It delves into the challenges of globalization, such as job mobility and cultural impact, and offers recommendations to mitigate these issues. Furthermore, the report utilizes McKinsey's 7S model to examine SASOL's culture, structure, and governance, and applies Hofstede's cultural dimensions to understand the organization's global impact. It evaluates ethical and sustainable factors, factors influencing decision-making, and assesses SASOL's strategic expansion routes, including their advantages and disadvantages, concluding with key insights and recommendations for SASOL to thrive in the global market.

Global Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1 ...........................................................................................................................................3
2. Driving factors of globalization..............................................................................................4
4. PESTLE analysis of an organizational context.......................................................................6
5. Challenges of globalization and the strategic challenges for an organization........................7
6. Recommendations in order to reduce these challenges...........................................................8
PART 2............................................................................................................................................8
1. Explanation of the culture, structure and governance of an organisation. By using
McKinsey's 7S model in the organisational context...................................................................8
2. For applying Hofstede's dimensions of culture to determine that how organisation has been
affected......................................................................................................................................10
3. Evaluation of ethical and sustainable factors about organization within the global market. 11
4. Factors influenced decision making within the global context.............................................11
5. Assess which strategic expansion route the organization imply and explain its advantages
and disadvantages .....................................................................................................................12
.......................................................................................................................................................13
CONCLUSION .............................................................................................................................13
REFERNCES ................................................................................................................................14

INTRODUCTION
Global business environment is defined as an environment which operates in different sovereign
countries, with factors exogenous to the home environment of an organization, influencing
decision making on resource use and capabilities. As, today’s world is becoming fully digitalized
and highly competitive, so operating a business on a global level enable company to expand their
market share and size in an innovative or creative way as well as allow them to survive for a
longer period of time among competitive marketplace (Tian and Martin, 2014). However, there
are various factors which impact over global business i.e. legal, political, social, technological
and economic, thus in order to cope with these company develops a productive strategy for
attaining high productivity. This report is based on SASOL Limited, which is one the reputed
and branded South Africa based company which deals into energy and chemical. In this study, it
involves overview of the term globalization and its driving factors as well as influence of digital
technology upon them. Moreover, application of PESTLE analysis to evaluate the challenges of
global business environment. Furthermore, implication of McKinsey 7’s model, Hofestede
dimension model to determine firm’s potentiality in attain profit margin is also discussed here.
PART 1
1. Concept of globalization
It is the term which is widely used by most of the organization in today’s innovative and
competent business environment as it lead firm to acquire high level of profitability and
productivity ratio. However, globalization is the process of international integration arising from
interchange of world views, products, ideas and other aspect of culture. Along with this, it
inspire company to expand their market share with the optimum utilization of resources in an
operational and effectual manner. In regard of SASOL limited, as they desire to enlarge their
market size to various countries like Canada, Mozambique, Gabon, Australia in order to acquire
best positioning among existing marketplace. Hence, the idea of globalization encourage them to
adapt innovative or latest technology as well as novel idea into their business operation and

function for attaining increased level of sales growth and profit margin. (Lamm,Tosti-Kharas and
King, 2015) Therefore, globalization provide enormous platform for various job which improves
the living standard of people in an appropriate way as well as it enrich economy of nation.
Therefore, it an integral element for an organization like SASOL who seeks for an opportunity to
grow and also to enlarge their proficiency in an impressive and productive style.
2. Driving factors of globalization.
In global business environment there are various kinds of factors which influence
company’s decision making positively and negatively as well as its potentiality to attain high
level of proficiency ratio. However, some of the driving forces which impact SASOL’s decision
making ability are explained below: Cost factor: This is regarded as the very crucial component in the process of globalization
as it consists labor, environmental cost, tax payment, short term or long term investment
and may more that impact over SASOL business function. However, they put their core
focus over cost of production, shipping price as they deals in delivering various kinds of
chemicals globally which help them to accomplish their objective impressively.
Marketing factor: In recent years, there was a huge misinterpretation regarding price among
domestic market yet they provided enormous opportunity to wide range of audience for
improving their welfare productively (Williams, 2014). Thus, in context of SASOL they analyses
marketing condition and based on that they make a corrective course of action by hiring best
personnel, novel ideas that lead them to improve overall performance as well as acquire high
level of satisfaction from clients or employees.
 Competition factor: As per the current scenario of industry, there is high level of
competition among companies which becomes somewhat difficult for SASOL to gain
best positioning with marketplace. Hence, SASOL takes an initiative to adapt innovative
technologies or skills which enable them to cope with arising threat and also to gain
competitive advantage.
Environment factor: It is widely using concept among consumers as they all are preferring
ecofriendly products in order to be safe and preventive from hazardous diseases. Therefore,

SASOL ensures that they move one step ahead for recycling process that allow them to add value
to targeted customer and also to enrich its brand image among an industry.
However, these driving factors encourage SASOL to obtain maximization of profit by making
use of all available resources and also acquiring latest technologies in order to survive within
marketplace for a longer period of time.
3. Significant impact of digital technology upon globalization
For attaining high level of productivity and sustainable profitability, innovation and creativity are
two key term which influence organizations to accomplish their goal in an impressive or
productive style. However, digital technology is an electronic tool which made business
operation and function much easier and authentic as it enlarges the connectivity, creating several
platform for learning and also for versatile working etc. However, advancement in technology
have considerably facilitated globalization (Buckley, Doh and Benischke, 2017). In fact,
technological progress has been regarded as one of the main driving force of global business
environment. Hence, this factor enable companies to attain economies of scale and acquire
breakeven point within marketplace. Additionally, it impact positively and negatively over firm,
thus some of its effect on SASOL’s globalization activity are explained below:
 Technological advancement decreases cost of transportation and communication across
nation and thereby facilitate global sourcing of raw materials and other inputs. In
addition, patented technologies inspire globalization as the firm owning the patent can
exploit foreign markets without much competition.
 The another effect is that it led to emergence of global village as it reduces the barriers of
time and place in business village and enlarge market share or size effectively and
efficiently.
Thus, it plays a vital role in an enhancement of SASOL productivity and profit margin as well as
allow them to become more flexible in acquiring latest technology based on market trend in
order to bring high level of satisfaction among customer.

4. PESTLE analysis of an organizational context.
It is one of the essential tool which enable company to evaluate its external macro factor as well
as identifies all potential opportunities or threat in order to implement best strategic decision for
an attainment of high productivity and profitability ratio (Ueda, Ida, Kadota and Tozuka, 2014).
Thus, SASOL implies PESTLE analysis to determine its business environment which are as
follows:
Political: It involves all policies, procedures, rules, regulation which impact over firm’s
productivity. However, recently In UK due to Brexit there was a huge modification
occurred within industries and it impact SASOL proficiency negatively. However, SASOL
should tackle this negative impact by making use of available resources as well as altered
all business operation or function according to the demand of Brexit (PEST Analysis for
Global Oil and Gas Companies Operations, 2016). Along with this, they were benefitted
by political stability of UK government which help them to acquire modification and it
will lead them to attain high profit margin.
Economic: It consist with interest rate, economic growth, fiscal, inflation or deflation rate
etc. that influence company’s proficiency. In regard of SASOL, there was a huge financial crises
in UK government before few years which totally disturbed economic position of companies and
nation growth which effect SASOL productivity (.Pestle and et. al., 2015). Therefore, in order to
overcome this negative effect, SASOL should lower the price of products so that consumer
buying behavior will be stable and it will not get effected due to economic crises. Hence, it
improve firm’s potentiality to obtain profit maximization in an innovative and creative way.
Social: This is concern with customer taste or preference, trends, culture, demand and
many more that effect enterprise decision making capacity. In relation to SASOL, there is an
increasing awareness and focus on more friendly fuels as well as reducing in the use of dirty
fossil fuels such as oil, sand, coal and shale gas that affect negatively over enterprise profit
margin. However, SASOL tackle this negative effect by implementing best strategic decision
which lead them to build better atmosphere which neat and it enhance SASOL market share
among competitive industry.
Technological: Under this, it is relate with adapting innovative or latest technologies which
affect organization potentiality in achieving goal or objective. In context of SASOL, there was a

huge rivalry among company regarding innovation and technology which can influence firm’s
potentiality to attain sustainable profitability (Agwu and Afieroho, 2016). Hence, SASOL
overcome this hindrance by adapting latest technology i.e. automation, nanotechnologies, data
mapping which lead them to manage entire business function in a better manner as well as assist
them to acquire increased level of productivity and proficiency.
Legal: In this, it involves legislation, regulation, laws and policies which impact
company’s brand image. In relation to SASOL, they should follow all policies, procedures and
government legislation then it will enable them to reduce an intervention of government within
their business function.
Environmental: Under this, it involves a step ahead towards eco friendly products or
service which enable firm to create positive perception among customer as well as can improve
its overall performance. In relation to SASOL, there was an environment awareness among the
audience of UK that influence organization profit margin. Hence, company takes an initiative to
recycle the waste products which helps them to reduce pollution emission gas within an
atmosphere as well as allow them to gain competitive advantage in impressive and productive
style ().
5. Challenges of globalization and the strategic challenges for an organization.
Globalization means different things to various people, which is one reason why opinion
differ so dramatically. Some proponents see it as a not only inevitable but fundamentally
beneficial, if only firms could distribute the benefits better. At the same time, many others group
of individuals experience it not as progress but as a disruptive even destructive force. However,
some of the hindrances which SASOL faces while globalizing their business function are
described as follows:
Job mobility: One of the most common critique of global trade system is shipping jobs especially
manufacturing jobs from less developed countries to developing country. However, lower skilled
worker who lose manufacturing jobs in developed countries often have a difficult time finding
new and suitable, comparably compensated work as well as it generate double strain on those
countries social welfare system (Lahtinen, 2015).

Cultural impact: As the concept of globalization takes an initiative in making whole world as
one family which sometime create huge conflict or dissatisfaction among group of individual in
terms of losing their distinctive feature by emulating various lifestyle and trends. That is where it
losses the global diversity among manpower which threat SASOL to maintain a best working
culture.
Therefore, the above mentioned challenges influence SASOL ability to attain sustainable
proficiency ratio. So, they should make corrective course of action which lead them to cope with
these in a better manner.
6. Recommendations in order to reduce these challenges.
As per the above explained study, it has been stated that SASOL should takes an initiative
to determine current and emerging trend of market and based on that they must implement a best
strategic decision which help them to increase their volume of sales and profitability. Along with
this, they should hire best personnel and generate impressive working culture so that they feel
motivated to put their full contribution towards an achievement of organizational goal in a
productive way (Perveen and Habib, 2017). Furthermore, SASOL must be adaptable and
flexible in nature as they should acquire all updated technologies or ways which lead them to
become more competitive and challenging within highly competition industry.
PART 2
1. Explanation of the culture, structure and governance of an organisation. By using McKinsey's
7S model in the organisational context.
For achieving company’s objective in an appropriate manner, a manager must ensure
several aspects into their business operation and function. However, some of the components
which SASOL follows in their business procedure are as follows:
Culture: It encompasses different types of values, norms, beliefs, thoughts, caste, perception
which has huge impact over firm productivity. However, SASOL respect all kinds of individuals
and provides them equal opportunity which makes firm to acquire high level of employee
satisfaction as well as improves overall performance.
Structure: Under this, it consist of various departments which are interlinked with each other
who puts their full contribution towards company’s goal. Hence, SASOL implies hierarchical

organizational structure which helps them in making suitable decision and generate positive
relationship with employees that add value to firm brand image.
Governance: It define as the procedure which use within business function in order to gain
competitive advantage. In regard of SASOL Limited, they make use of all social media platforms
and enlarge their connectivity in a better manner which improves its overall performance in an
appropriate way.
Thus, SASOL applies McKinsey 7’s model for enriching their culture, structure and its business
operation in an organized way and it is discussed below:
• Strategy: It comes under hard approach, which signifies organization plan for building and
maintaining a competitive advantage over competitors (). In reference to the SASOL, they
contain long term long term objectives for that they acquire unique techniques i.e. SWOT and
PESTLE analysis to evaluate its internal or external potentiality in order to improve their
situations.
• Structure: Under this, it states that how company should be organized that is their departments,
teams are structured including who reports to them for building a productive working condition.
Therefore, SASOL limited, applies divisional organizational structure in which they assign each
function for various roles and responsibilities that develops firm decision making capability
• System: In this, it signifies daily activities and procedures that staff use to get the job done. In
context of SASOL limited, they implies all suitable and fair policies, training and development
program, recruitment, performance evaluation system and many more as well as using
interpretative tool to enlarge company’s market size.
• Shared value: It is the kind of soft approach which is considered as core values of firm which
enable them to improve its overall performance in a better way. Thus, SASOL limited encourage
its personnel to take participate business activities which increases their motivation level.
• Style: It is relate with the style of leadership adopted for achieving organizational goal in a
better way. In relation to, SASOL it implies democratic leadership which helps them to engage
manpower equally towards achieving goal in an appropriate way .

• Staff: They are regarded as one of the biggest asset for company’s growth and success. As per
the SASOL limited, they render best training programs as well as enormous platform to their
enhancement of abilities that directly reflect over increase in sales growth.
• Skills: Under this, it is concern with an ability of an individual to complete the task in
prescribed time limit in an impressive style. For this SASOL limited determine employees need
and expectation in order to create excitement or motivation through intense counselling and
information sharing that leads them to enlarge its market share.
2. For applying Hofstede's dimensions of culture to determine that how organisation has been
affected
However, SASOL implies Hofstede dimension into their business operation for
accomplishing organizational goal in an effective manner.
 Power distance index: It relates to degree to which the less powerful members of a
society accept and expect that authority is is distributed unequally. Therefore, in order to
tackle with this, SASOL makes an attempt to identify each personnel capability and
based on that they delegate roles and responsibilities to them. Due to which it help them
to gain increased level of employee motivation and satisfaction.
 Individualism Vs Collectivism: In this aspect, it signifies the importance of individual
verses group interest in order to obtain profit maximization in an effective and efficient
manner. However, SASOL Company invites their manpower to take participate in
business activities and recognize individual effort in order to maintain a positive working
culture for improving their productivity.
 Uncertainty Avoidance: It express the degree to which members of society feel
uncomfortable with uncertainty and ambiguity. Due to the globalization, it has great
influence over SASOL business decision making, thus company adopt latest technology
and provide best training or development program for acquiring best positioning among
competitive marketplace.
 Masculinity Vs Femininity: It signifies male or female workers are the same there is no
difference so that it influence SASOL limited company provide equal opportunity to
everyone towards attainment better result in an appropriate way.

 Long Term Vs Short term orientation: It is also identified that while handling present
challenges there should be link with past experience in order to bring out best strategic
decision in a better manner. Thus, SASOL prioritize these two dimensions and analyses
the gap which lead them to implement corrective course of action for accomplishing their
business goals or objective in a productive manner.
 Indulgence Vs Restraint: This concept is defined as the extent to which people try to
control their desires and impulses, based on the way they were raised. As per this SASOL
company works according to their manpower interest or demand and give them enormous
opportunity which enhance their morale and encourage them to put best contribution
towards in gain competitive advantage.
3. Evaluation of ethical and sustainable factors about organization within the global market.
Sustainable globalisation: It refers to the method of enlargement of business across the
realm which will boost the sustainability within the competitive market to meet targeted goals
perfectly
Ethical globalisation: It is the process of relocating dissimilar kind of products and
services, correct information with the support of ethical globalisation in order to stimulate
customer's, stakeholders, employee's to succeed aims.
Furthermore, there are certain organizational tasks which is tracked by the SASOL
limited company in both behaviors ethical and sustainable which are mentioned below:
Finance: This function aid SASOL limited in order to realizations in a healthier
technique. In which designated organization able to afford guiding principle to their member of
staff so that they can practice company's endowment in an impressive way
Human resource: It is the finest phases for an management system of particular
organization in which they can afford quite a lot of curriculums to their manpower in order to
escalation their working efficiency to complete effective goals in an appropriate way.
.
Marketing: It is regarded as an integral tool of every company in which SASOL limited
company fixed their objectives according to their marketing scenario in order to run business
effectively by consuming suitable strategies to reach anticipated goals in a proper manner.

As per from the above explained identification it has been examined that all the overhead
components are very actual and essential to bring about firm's circumstances in a suitable mode.
Therefore, both ethical or sustainable are very much best to use within the global market (Okeke,
Onuorah and Jakpa, 2016)
4. Factors influenced decision making within the global context
In the scenario of today's competitive market , there are different sort of decision making
component in order to empower establishment conclusion in a better way. Along with this, this
aspect is highly depends upon the efficacious condition to advancement the variant within the
company. In reference to the SASOL, they are following effective decision making process for
motivate each personnel so that they can take part actively for an achievement of firm goal or
vision which add value to SASOL brand image. Therefore, this process of decision making is
considered as an important element as it help them to obtain high level of profit margin as well
as to evolve decision, situation analysis in order to resolve the matters in an organised mode.
Thus, this can be said that due to globalisation decision making can be impressed by the
perverse feature in which SASOL is not capable to proceeds correct judgement in an befitting
manner. That's why it is more trenchant or enchanting before manpower, with the help of this,
organization can achieve their destined content in a proper way.
5. Assess which strategic expansion route the organization imply and explain its advantages and
disadvantages
In the existing premise, every establishment wants to enlarge their concern at high level
in an appropriate manner. Therefore, there are various kinds of element or routes for SASOL
limited company through which they can maximise their enterprise at higher level, which are
explained below:
Licensing: It signifies that it is a business arrangements in which one company give
another firm permission to manufacture its products or services for a specified payments. In
regard of SASOL limited company, to expand their business operation or market share at higher
level they tales an initiative to acquire innovative or novel ideas or knowledge and productive
methods for attaining increased level of productivity in an impressive manner. Moreover, it
provides enormous opportunity platform which assist SASOL to enlarge their proficiency in an

effective way with less cost of money. That's why it will upsurge the chances of opportunities
in order to resolved issues in an appropriate manner
Exporting: It is concern with those type of business in they sell their goods and services
to customer in other countries in order to obtain increased level of profit maximisation. However,
it is signified that exporting is one way in which firm can rapidly expand their potential market
and can easily enlarge their market value in an innovative and creative style. Hence, in regards
with SASOL limited, they makes an attempt to deliver best or high quality of products or
services within international market in order to attain higher development of business in a better
way. Addition to this, it enable SASOL to enhance its sales potential as it benefit them by
reducing cost, impressive or novel ideas, latest technology which lead them to attain increased
profit margin in an effective manner. Moreover, it also benefits in the development of national
economies by acquiring different resources, skills, equipments and many more for raising the life
standard of community or society in better way. (Wang, Rieger and Hens, 2017).
Therefore, exporting is viewed as one of the appropriate way of international route fro the
growth of SASOL in a better way as it make firm more competitive within domestic market as
well as empower them to adopt diverse business culture into their functional areas. Due to which,
it enlarge their market share or size and also assist them to add value towards their brand image.
CONCLUSION
It has been stated from the preceding explained report that globalization is very much
familiar term in present scenario of competitive world as it enable firm to make use of available
resources in order to acquire maximization of profit in an effective manner. Along with this,
there are several factors which directly impact upon company decision making capability.
Moreover, PESTLE analysis help an organization to evaluate its external business environment
and based on that allow them to make best strategic decision for the betterment of enterprise
overall performance. Additionally, McKinsey 7’s Model and Hofstede approach assist company
to generate a best working culture that lead them to gain competitive advantage in a better way.
REFERNCES
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Online
PEST Analysis for Global Oil and Gas Companies Operations, 2016.[Online]. Available
Through ; < https://energyroutes.eu/2016/05/08/pest-analysis-for-global-oil-and-gas-companies-
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