Global Business Environment: Strategic Analysis of SASOL Ltd. Report

This report provides an analysis of the global business environment with a focus on SASOL Ltd., a growing energy and chemical organization headquartered in South Africa. It examines key factors such as market dynamics, costs, competition, and the environment that drive global commerce and trade, highlighting the challenges and opportunities these factors present. The report delves into the strategic complexities faced by the organization in the global environment, including risk and diversification strategies within the supply chain. Furthermore, it evaluates the influences of globalization on organizational governance, leadership, culture, structure, and functions, using models like McKinsey 7s to analyze organizational design. The report also discusses ethical and sustainable considerations, the impact of political and technological changes, and the application of Hofstede's model of culture in international business. It concludes by evaluating different ways decision-making can be more effective in a global context, determining routes to internationalization, and critiquing strategies for operating in the global business environment.

Unit 18
Global Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................4
PART 1............................................................................................................................................5
PART 2..........................................................................................................................................13
Evaluating globalisation influences on organisational governance along with leadership,
culture, structure & functions...............................................................................................13
Evaluating ethical along with sustainable globalisation influences on organisational functions
..............................................................................................................................................14
Critical evaluation of globalisation influences with applying appropriate theory along with
models related with organisational culture and structure.....................................................15
Evaluating different ways where decision making can work more effectively within global
context..................................................................................................................................16
Determining and articulating various routes to internationalisation in an organisation that may
adopt, including barriers.......................................................................................................16
Critical evaluation of key barriers during international business along with recommendation
how to overcome it...............................................................................................................17
Critique strategies which can adopted by organisation during operating global business
environment along with recommendation to adapt organisational structure along with decision
making processes..................................................................................................................17
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................19

INTRODUCTION
Globalisation can refer to the closer economic integration where different countries included
in the liberalisation along with consequences increases in volume and variety with international
trade within goods and services. It may include different business activities within different
countries at international scale. It also helps to provide interconnecting different countries and
also provide better help in manufacturing goods and services. Global business environment can
be referred as the various countries environment which include various exogenic factor that may
impact business decision making process. This report is based on SASOL Ltd. Which is highly
growing energy and chemical organisation. Company headquarter is in Cape Town, South
Africa. This company has the global presence in different locations like New York,
Mozambique, Gabon, Frankfurt and Australia including UK (Chams and García-Blandón, 2019).
In this report, there is discussion about the key factors of market, cost, competition along with
environment that may drive global commerce and trade. There is also discussion about the key
factors impact on global business environment in term of challenges and opportunities. There is
also discussion about the strategic challenges complexities that are faced by organisation during
operating global environment. This report also includes strategic challenges towards risk and
diversification strategies within the supply chain flow. This report also includes the globalisation
influences on organisational governance along with leadership, culture, structure and function.

PART 1
Notes:
This report also consists of strategic challenges complexities faced by an organisation
while operating global environment.

Notes:
Cost- This factor also helps to provide greater opportunities that also help in
organisational development and provide generating high economy at international level. this
factor can provide higher profit to SASOL that can be effective and may provide advantage in
form of international or on the global level (Schwab, 2019). Here, company should focus on
different activities which are effective and may lead to impact the international business.
Moreover, customer should easily get their resources and fulfilled their demand in easy manner.
It is also necessary to get that customer are able to get better quality of product at lower cost that
can help to increase the customer base and get higher profitability with increasing in the
business. SASOL ship their business in bulk that allow to save the shipping cost and provide
high margin on the product. SASOL also ensures that they should get their raw material in bulk
that can be effective to reduce time and cost of production which can be effective and beneficial
for the company.
Market- SASOL manager have high focus on the market which are effective and enable
them to capture huge market which allow organisation to get higher profit from that product.
This enable business gets better sustainability in the market. Moreover, it is essential for
organisational to ensure about getting new customer that can enable organisation to increase their
market area and get high profitability (Berry, Gaynor and Scott Morton, 2019). Here, they need

to satisfy their customer with their high quality product in less prices. This can enable them to
make new customer that can be effective to get high profitability. SASOL should also take care
of the market area that are effective and may lead to create high profit for the organisation that
may lead to provide better impact and enable customer to get their product with better quality.
This can also enable organisation to increase their product sales and allow to achieve better
response towards increased demand due to addition of new customer and enhance the
organisational profitability. This enable SASOL to stay in the international market with high
profit.
Competition- Globalisation lead to create high level of competition in the international
market that lead to increase higher level of operation in the business market. There are various
company within same sector has increased with the time due to globalisation that lead to create
high impact on the competition. In context to SASOL, organisation perform their business in
different countries part which lead to immense competition within the market at the international
level (Warner and Wäger, 2019).
Environment- There is different environmental factor which may include legal, political,
technological, social and economic factor that are having high impact on the globalisation.
SASOL manager should ensure and pay attention towards any policy along with strategy which
can impact organisational operation and may lead to impact organisational profitability. They
should also ensure that policy should be in their favour or to use those policies in effective way
that can enable them to sustain the international market and get better business for their higher
profitability.

Notes:
Political factor- SASOL have positive impact of the political factor due to stable
government in UK that imposer less tax on the global level. Here, SASOL manager focus on the
rules and regulations of government that operate the business activities effectively and provide
long term stability in global market (Williamson, Eynon and Potter, 2020).
Economic factor- This include cost, wages, gross domestic product, profit and growth
rate. Here, SASOL, operate their work in different country that have strong economic
background.

Notes:
Social factor- SASOL manager need to focus on customer needs and their demands. This
may include society demand and providing better quality of product that can accountable by their
customer. This can help to get better position in the market through developing business globally
(Valencia and et al., 2019).
Technological factor- SASOL invest on the advance technology that can be effective to
increase the production and enhance the product quality. It can also help to reduce the cost and
provide high profit to the organisation. Advance technology can also be used to perform different
operation within business.
Legal factor- SASOL manager need to focus on different laws like equity law, women
empowerment and others that can impact the business operation and their business profitability.
Through focusing on such can enable them to focus business operation at international level.

Notes:
It can enable organisation to stable in the market for long term. It is difficulty task to find skilled
employee in the market that can enhance value along with organisational efficiency in market.
To manage proper payroll system there is need to follow effective strategy to overcomes such
challenges.

Notes-
Moreover, it may affect fear that can lose their cultural identity. It also lead to create chanllenges
for the business organisation to adopt and follow culture along with surroundings that can
conduct within business.

.

PART 2
Evaluating globalisation influences on organisational governance along with leadership, culture,
structure & functions
McKinsey 7s model can refers to the tool which can allow organisation to analyse their
organisational design. Here, SASOL can have influenced through globalisation that include
organisational culture, structure, governance along with functions which are going to be
discussed.
Structure- This element help organisation to stay organised. Here, SASOL, need to
maintain their structure which can help employee to communicate effectively to understand their
roles along with responsibility more effectively.
Strategy- This element help organisation to perform well and provide better intent in
effective flow of business. Here, SASOL manager should implement effective strategy that can
be effective to provide better response to their company and make better profit. It may also help
to motivate their employee for the successful execution of strategy (Heidary Dahooie and et. al.,
2021).