Global Business Environment Analysis Report: SASOL Limited Case Study

This report provides a comprehensive analysis of SASOL Limited's global business environment, examining the influence of globalization on organizational governance, leadership, structure, culture, and functions. It delves into the impact of ethical and sustainable globalization on organizational functions, particularly marketing, finance, research and development, and human resources. The report evaluates effective decision-making processes within a global context, including identifying decisions, gathering information, and reviewing outcomes. Furthermore, it explores various routes to internationalization, such as foreign direct investment and strategic alliances, while also identifying key barriers like cultural and language differences. The report concludes by emphasizing the importance of strategic adaptation and proactive measures for SASOL Limited to capitalize on global opportunities and overcome challenges, supported by relevant references.

Global Business Environment
1

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................4
P1 and P2 are covered in ppt........................................................................................................4
TASK 2 ...........................................................................................................................................4
P3. Influence of globalisation on organisational governance, leadership, structure, culture and
functions.......................................................................................................................................4
P4 Evaluate the influences of ethical and sustainable globalisation on organisational functions.
......................................................................................................................................................5
TASK 3............................................................................................................................................6
P5 Evaluate the different ways decision making can work effectively in a global context.........6
P6 Determine and articulate the various routes to internationalisation an organisation may
adopt, including key barriers........................................................................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................8
2

INTRODUCTION
To understand global business environment can help an organisation to take advantage
from globalisation. Through it an organisation can grab market share. In this report chosen
organisation is SASOL Limited which is a fast growing energy and chemical company. The aim
of it is to take advantage from globalization and take important decisions to achieve it. It covers
various topics such as: key drive factors, complexity of strategic challenges, influence of
globalisation on culture, structure, governance and functions. Apart from this it also discuss
about influence of it on organisational decision making and strategy.
TASK 1
P1 and P2 are covered in ppt
TASK 2
P3. Influence of globalisation on organisational governance, leadership, structure, culture and
functions
Organisational governance has consist of rules and regulations which are needed to be
performed by members as well as employer. It can be influenced by globalisation by the
following ways such are as follows:
Globalisation can affect the organisational governance if SASOL Limited does not follow
the policies and rules according to different countries (Globalisation. 2018). All nations have its
own laws related to organisation so it is necessary to maintain it as per the need.
Influence of globalization on leadership:
It can affect the leadership of an organisation because all companies have follow different
leaders and they have different style to lead the workers. For example, If SASOL Limited has
follow participative leadership style. It means it involves employees in decision making precess
and take suggestion from them. If organisation enter in new country and its management does
involve workers in decisions making than corporation will influence from it. As as result it does
not get innovative ideas.
Influence of globalisation on culture:
Culture involves beliefs, values and principles which are needed to be maintained by all
members of an organisation. For example, If SASOL Limited has decided that it does not
compromise with the quality of their products. But when it operates the business in other country
3

than it found that their management does not provide better products in that nation. It shows that
managers of company is not able to perform as per the culture (Rasche and McIntosh, 2013).
Influence of globalisation on Structure and function:
Structure of company can be influence by globalization and through it productivity can
hamper. For example, If SASOL Limited has follow traditional line structure in its organisation
and in this structure president or CEO are at top level. Then there are directors followed by the
manager. If it goes in other country than it found that their management follows functional
organizational culture which is totally different traditional culture. In that situation conflicts can
arises among management of both countries and organisational structure of corporation can be
affected by it. In that case it operational functions will also influence (Holt and Seki,2012).
P4 Evaluate the influences of ethical and sustainable globalisation on organisational functions.
A company have to perform various functions in its business. Organisational functions of
SASOL Limited can give impact on ethical and sustainable globalization by the following ways
such as:
Marketing departments: It is the responsibility of marketing team to promote business of
company. Marketing manager of SASOL Limited has responsible for it. Marketing department
helps an organisation to reach more number of customers and create good brand image of it. It is
ethics for marketing team to perform their roles effectively and help corporation to grab more
market share. If members of this team perfectly do their work than company can achieve
sustainable success and growth. It help to an organisation to achieve sustainable globalisation
Finance department: It is responsible to handle finance related matters in the organisation. The
ethics for finance department is to manage and control financial activity in corporation. If it is
able to perform its duties effectively than SASOL Limited does not face the problem of shortage
of fund. As as result company can invest more and able to generates more returns from it and it
helps to achieve sustainable success (Swarbrooke and Horner, 2012).
Research and development department: It is responsible to do research so that organisation
can develops products on the basis of it. To provide use information to company is ethics for it
and it includes: analyse taste, preference and find new market for company so that it can expand
its business. As a result SASOL Limited can develop better product as per the needs of
consumers as a result sales can be maximize and it can achieve sustainable success. It help the
corporation to gain sustainable globalisation (Chin and et. al., 2012).
4

Human resource department: Human resource department of company recruit and select
suitable candidates who can perform as per the needs of organisation. It is ethics for HR
department. If it hire talented persons then they can perform better and accomplish their targets
on time as a result it can achieve sustainable success and growth. Skilful and knowledgable
employees can improve productivity and efficiency. So organisational functions of SASOL
Limited can be influence by ethical and sustainable globalisation.
TASK 3
P5 Evaluate the different ways decision making can work effectively in a global context.
There are various ways of decision making which help an organisation for globalisation.
It makes the work smoother and effective. SASOL Limited can take good decision which help it
to grab more market share. Different ways of decision making are as follows:
Identify the decision: Organisation of company should know that what are the decisions are
needed to be taken and when they have to take. An advisor of SASOL Limited can suggest the
bored of directors that they first they have to analyse the situation and on the basis of it they can
take effective decisions. As a result work can be done in good manner and its helps the company
in globalisation.
Gather relevant information: It is necessary for SASOL Limited to gather appropriate data
and information about culture, law and polices of various countries so that it can take advantage
from globalisation and earn more revenue (Binh and Terry, 2014).
Identify the alternatives: SASOL Limited can identify alternatives so that if one decision does
not work than they can use other one. In this method all possibilities are analysed for example, if
company thinks that traditional line structure is good for them but if if fails and performance of
organisation has affected from it. In that case functional organizational culture can be adopted by
it so that performance can be enhanced. As as result it can take advantage of globalisation and
improve productivity (Georghiou, 2013).
Take corrective action: If a plan is not working as per the requirements of an organisation. In
that case SASOL Limited can take effective action to make the decision successful. For example,
If company thinks that they should involve employees in the decision making process so that
innovative idea can come up to solve the issues in corporation. If it fails due to bad ideas of
5

workers and performance is also hamper than it can take corrective action and find other ways to
resolve the problems.
Review decisions and its consequences: SASOL Limited can review its decisions if they are
not working properly and analyse the consequences of it. So that it can correct its decision from
and implement another action plan so that they can take advantage from globalisation and
expand its business.
P6 Determine and articulate the various routes to internationalisation an organisation may adopt,
including key barriers.
A company can internationalisation so that it take benefits of globalisation and capture
more market share. Routes of internationalisation are as follows:
Foreign direct investment: It is way of internationalisation through which an company can
enter in other market in new country. It is a process in which organisation can make investment
and want to generates more returns form it. SASOL Limited can apply it so that it can take
benefits of globalisation and increase its market share (Amankwah-Amoah, 2016).
Joint- venture: It is a method of internationalisation through which SASOL Limited can tie up
with other organisation who is doing same business and produce same products. It can so joint
venture with those companies who engaged in the business of energy and chemical.
Merger: It is also a method which help the organisation to take benefits from globalisation. In
this process two companies merger together and form one new company. SASOL Limited can
merge with other organisation who has similar business as this corporation. It helps it to grab
more market share and increase its revenue.
Strategic alliance: It is term in which a company can do alliance with other organisation. For
example, if SASOL Limited is not good in marketing than it can make alliance with other
corporation who perform marketing activity better and effectively.
Franchise: It is a method of internationalisation in which a company give right to other business
unit to do business on behalf him. It help the organisation to maximize its market share and earn
more revenue.
There are various barriers which can be seen in globalisation and it restrict the
organisation to do its business in other nations. These barriers are as follows:
Culture barrier: It is a barrier for an organisation because it is difficult to analyse the culture of
different countries. So it can restrict SASOL Limited for internationalisation.
6

Language barrier: All countries have different language which are used by them for
communication. So it is difficult for SASOL Limited to know all language which are used for
communication. It can restrict SASOL Limited for internationalisation(Agrawal and Srinivasan,
2012).
Environment barrier: It is also a barrier for an organisation because environment conditions
can varies country to country. So company does not take benefit from globalisation because of
this factor.
CONCLUSION
As from the above report, it has been concluded that global business environment can be
properly analysed by the corporations. So that company can get benefit of globalisation and
maximize its revenue. SASOL Limited can evaluate key factors which drive globalisation and it
help to it to expand its business. Various strategies can be used by organisation so that it can
overcome from these problems. By analysing culture, solution and structure it can perform better
and improve its management. Corporation can use different methods of internationalisation so
that it can grab more market share and earn maximum profits.
7

REFERENCES
Books and Journals
Agrawal, N.M., Khatri, N. and Srinivasan, R., 2012. Managing growth: Human resource
management challenges facing the Indian software industry. Journal of World Business.
47(2). pp.159-166.
Amankwah-Amoah, J., 2016. Emerging economies, emerging challenges: Mobilising and
capturing value from big data. Technological Forecasting and Social Change. 110.
pp.167-174.
Binh, N.B. and Terry, A., 2014. Meeting the challenges for franchising in developing countries:
The Vietnamese experience. Journal of Marketing Channels. 21(3). pp.210-221.
Chin and et. al., 2012. Adoption of supply chain management in SMEs. Procedia-Social and
Behavioral Sciences. 65. pp.614-619.
Georghiou, L., 2013. Challenges for science and innovation policy. In Science, technology and
innovation policy for the future (pp. 233-246). Springer, Berlin, Heidelberg.
Holt, K. and Seki, K., 2012. Global leadership: A developmental shift for everyone. Industrial
and Organizational Psychology. 5(2). pp.196-215.
Jones, G. R., 2013. Organizational theory, design, and change. Upper Saddle River, NJ:
Pearson,.Nijkamp, P. and Kourtit, K., 2013. The “new urban Europe”: Global
challenges and local responses in the urban century.European Planning Studies. 21(3).
pp.291-315.
Rasche, A., Waddock, S. and McIntosh, M., 2013. The United Nations global compact:
Retrospect and prospect. Business & Society. 52(1). pp.6-30.
Swarbrooke, J. and Horner, S., 2012. Business travel and tourism. Routledge.
Weiner, S.A., 2013. Overview: the role of information policy in resolving global
challenges.Purdue Policy Research Institute (PPRI) Policy Briefs. 1(1). p.6.
Woollard, B. and Boelen, C., 2012. Seeking impact of medical schools on health: meeting the
challenges of social accountability. Medical education. 46(1). pp.21-27.
Online
Globalisation. 2018. [ Online]. Available Through:
<https://www.investopedia.com/terms/g/globalization.asp>
8