Global Business Environment: A Strategic Analysis of SASOL Company

This report provides a comprehensive analysis of SASOL, a multinational company in the energy and chemical sector, within the global business environment. It delves into the organization's structure, culture, and governance using McKinsey's 7S model, evaluating how global operations influence SASOL and how it can adapt to the global market. The report applies Hofstede's Dimensions of Culture to assess cultural influences and examines ethical and sustainable factors crucial for SASOL in the global market, including ethical and sustainable globalization. Furthermore, it critically evaluates strategic decision-making in the context of risk and diversification and assesses the range of strategic global expansion routes available to the organization, such as licensing, franchising and exporting, providing a holistic view of SASOL's strategic approach to global business.

Global business
Environment

Table of Contents
TASK 2............................................................................................................................................3
INTRODUCTION ..........................................................................................................................3
Explanation of culture, governance and structure within organisation like application of
McKinsey's 7S model .................................................................................................................3
Evaluation of ways of influence of global operation and ways in which organisation can adopt
these in global market ................................................................................................................4
Application of Hofstede Dimension of culture and ways in which it is influenced ..................5
An evaluation of ethical and sustainable factors that the organisation has to consider in a
global market...............................................................................................................................6
Critical evaluation of strategic decision making in context to risk and diversification in global
context.........................................................................................................................................7
Assessment and critical evaluation of range of strategic global expansion routes available in
organisation ................................................................................................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

TASK 1
(Covered in PPT)
TASK 2
INTRODUCTION
Global business environment can be described as environment of different countries that
create influence over use and capabilities of resources (BĂTUȘARU, 2019). This report includes
analysis of ASOL which is a multinational company operation in energy and chemical. This
project report includes explanation of structure, culture as well as governance in organisation and
evaluation of influence of global operation. Influence of application of Hofstede dimension of
culture is also discussed in it. Moreover it also includes different types of global expansion
routes in business.
Explanation of culture, governance and structure within organisation like application of
McKinsey's 7S model
McKinsey's 7S model can be described as tool that assist firm to analyse design of
organisation. Main goal of this model is to identify ways in which effectiveness of organisation
can be attained (Bhagra and Sharma, 2018). There are seven elements of this model including
structure, system, strategy, share values, staff and style. Explanation of these structure in context
of 7S model is mentioned below:
Structure: It provide a way through which an organisation is organised its chain of
command and also accountability for relationship that develop organisation chart. SASOL is an
organisation that organised its roles and responsibility that will helps them to get growth in
international market (Kasemsap, 2018).

Strategy: Strategy can also be described as business plan that assist an organisation to
develop an action plan for attainment of competitive advantage through reinforcing mission and
values of company. SASOL is an organisation which is developing new strategies in order to
compete 9in international market and also to attain goals and objectives of company.
Systems: It includes technical as well as business infrastructure of company that develop
workflow as well as decision making chain. SASOL has developed a system that allow them to
make informed decision and also allow to includes other members of organisation to make
decision.
Skills: Skills can be described as capabilities and competencies of company that allow
employees to attain its objectives (Bhasin and Garg, 2020). Managers of SASOL is hiring skilled
and talent workforce that provide them competitive advantage in market and also allow them to
attain their goals and objectives.
Style: It is attitude of employees in an organisation to develop code of conduct with
different ways of interaction as well as symbolic decision making that develop style of
management of its leader. Managers of SASOL needs to develop different style in business that
is essential in marketplace for getting success.
Staff: Staff consist talent management as well as human resources that are related to
decision of company like training, recruiting as well as reward system. SASOL is an organisation
which is recruiting talent employees that can contribute towards growth of companies and also
provide them timely training and development opportunities.
Shared Values: Objectives, mission as well as values of an organisation form foundation
of every business and also play essential role for alignment of different elements in order to
maintain design of organisation.
Evaluation of ways of influence of global operation and ways in which organisation can adopt
these in global market
Global operation in international market can be supported due to different elements that
are present in environment including internal as well as external environment. There are various
companies which are focusing in international market that are focusing on expanding their
operation. There are different factors and different ways in which global business operation is
influence with different factors that are mentioned below:

Political fluctuation: In international market, companies needs to face political structure
of more than on country that create influence over business (Liu and Yang, 2019). There are
various positive fluctuation in business like increase in monetary policy that allow managers of
SASOL to increase in their revenue as well as operation in international market.
Technological development: Advancement and up-gradation in technology is a positive
aspect for business in international market. It is important for companies to adopt new
technology in business as it allow them to take advantage in market. Companies use technology
in order to conduct their operation in effective manner as for using and managing data of
customers, understanding their preference, making purchasing process easier and other.
Global business climate: Global business climate is also increasing at faster rate as it is
important for business. It is essential for business that are operation in international market as it
provide opportunity to company like SASOL. There are various large organisation in
international market that is maintaining global business climate for development of major
operation in contemporary world.
Application of Hofstede Dimension of culture and ways in which it is influenced
It is one of cultural dimension theory that was developed by Geert Hofstede in the year
1980. It provide framework for people to understand differences in culture in different countries
and also identify ways that business can be done across different cultures (Nelson, 2018). It is
also a framework that is used to differentiate among different national culture, assess impact of
business setting and dimension of culture. There are basically six categories for defining culture
which is mentioned below:
Power Distance Index: It is a category that consist limit with which power as well as
inequality can be accepted in an organisation. High power distance index shows that organisation
is accepting inequity and power whereas low power index show that it is not accepted in
organisation. SASOL is an organisation which has low power index.
Collectivism against Individualism: It is another category that incudes level to which
society as well as community can integrate into different group as well as perceived obligation
on group (Singh, Verma and Verma, 2020). SASOL is an organisation which is emphasising
importance on collectivism that allow them to attain group goals.

Index for avoiding uncertainties: It is a index that is considering level to which
ambiguity and uncertainty is accepted in an organisation. There is low uncertainty avoidance
index in an organisation that are accepting uncertainty and risk taking.
Masculinity against femininity: It is a dimension that includes preference of society for
their attitude, achievement as well as equality in business. SASOL is an organisation that is
adopting both in balance way.
Restraint against indulgence: It is another dimension that is including level to which
society is fulfilling their desire and also revolve around ways in which society control desire and
impulses (Supawan and Deebhijarn, 2020). SASOL is adopting indulge dimension in their
organisation that allow society for free gratification in context of enjoying life and also having
fun.
Short term against long term orientation: It is a dimension that includes level to which
society is considering time horizon. Focus on SASOL is one long term orientation as they are
making efforts for long term success for company.
An evaluation of ethical and sustainable factors that the organisation has to consider in a global
market
Ethical globalisation is related to those concept under which the management of the has
applied combination ethics and transforming information in the functioning of their organisation.
It is very important for the management of the organisation that they develop effective and
efficient framework in their organisation so that the ethics and sustainability can be achieved.
There are different types of peoples and resources are connected with the management of the
SASOL. It is the duty of the managers that they focus on the human rights, working standards
and other ethical issues in the organisation. These functions of the organisation has develop
positive culture in the organisation which helps them to established their business in international
markets.
Sustainable globalisation is related to those concept under which the development in
globalisation are made without sacrificing the development of the future. Sustainability is one of
the most important aspect of the business because it helps the organisation to develop effective
strategies and policies in relation to the expansion and other business function. Sustainability
helps the organisation to make considerable development in their workplace so that the business
can be spread in different countries of the world (Wei, Thurasamy and Popa, 2018. SASOL is an

organisation which deals in chemical products and the attainability in their business is very
important because of their dangerous product range. It is very important for the management of
such organisation that they perform only those function in their organisation which promotes
natural environment and protect their management from different types of malfunctions.
Sustainability helps the organisation to increase their customers base because most of the
customers in the market are attracted towards the sustainable organisation. The company is
planning to enter in to global market by creating sustainable globalization such as minimum
wastages, recycling resources, using scare resources appropriately, managing climate change that
can help to maintain operation in international country. The influences of sustainable addition to
ethical globalisation on functions of business are as follows:
Finance: If the management of the SASOL wants to established their footprints on global
market then finance is the most important issue which required focus from the management of
the organisation. It is very important for the management of the organisation that that they
focuses on development of different sources of funds which can be used in the expansion policy
of the organisation. If the company wants to manage sources of funds then they have to use their
resources optimum and with their greatest returns. If organisation does not have considerable
funds then the policy of their expansion are not possible in international market.
Marketing: It is one of the important factor for the attraction of customers towards the
organisation. The marketing of the organisation plays a important role in the success of their
policies.
Critical evaluation of strategic decision making in context to risk and diversification in global
context
Risk is always present in market and this risk is also increase in international market and
can crate impact over operation of company. In order to overcome of it, company needs to make
effective decision for organisation. SASOL is an organisation which is taking assistance for
strategic management as well as board of director that allow them to make different decision for
company. In recent time, it is essential for companies to consider strategic decision making in
order to make decision quickly and also to minimise risk present in business that allow them to
get success in market.

Assessment and critical evaluation of range of strategic global expansion routes available in
organisation
There are different method which is adopted by managers of a company for purpose of
expansion of business. These methods has their own advantage and disadvantage. Explanation of
these method in context of company is mentioned below:
Licensing: can be described as agreement between licensor and licensee that provide
right to licensee to produce as well as sell sell of licensor's products. This license provide
permission to licensee to sell brand of licensor. It is method through which managers of SASOL
can offer license to other party for purpose of expanding their business operation.
Franchising: it is another method for global expansion in which products and service of
franchisor who is developing trademark of business, is distributed and franchisee who is paying
fee for taking right to carry out business understand name of franchisor. It is an effective method
for purpose of expansion of business for SASOL as it mitigate risk of business.
Exporting: It is one of method for purpose of expanding business at international level in
which business is producing products and service in home country and then sell it to another
country. It is a method that can be adopted by managers of SASOL for purpose of expansion of
business and also allow them to avoid expenses of developing operation system in new country.
CONCLUSION
From above mentioned discussion, it can be concluded that global business environment
is consisting different uncertainties and in order to overcome of it, business needs to use different
tool. Mckinsey's model is one that allow diem to develop system and structure of company. They
also consider culture dimension theory in their organisation in order to develop effective culture
in company.

REFERENCES
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