Unit 18 Global Business Environment: Analysis of SASOL Ltd.'s Strategy

This report provides a comprehensive analysis of SASOL Ltd within the global business environment, utilizing McKinsey's 7S model to describe the company's governance, culture, and structure, and examining how these elements affect global functioning and adaptation. It evaluates the influencing culture through Hofstede's Dimensions, discusses sustainable and ethical factors valued by the company, and explores strategic decision-making concerning risk and diversification. The report also describes the range of strategic global expansion routes used by SASOL Ltd, offering insights into their approach to international markets and strategic choices. This resource is helpful for students studying global business strategies.

Unit 18 Global Business Environment

Table of Content.
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
PART 2............................................................................................................................................1
Describe the governance, culture and structure for the company by the application of
McKinsey's 7S model..................................................................................................................1
The way these elements effect global functioning and the way company adopt in working
globally........................................................................................................................................3
Hofstede’s Dimensions of Culture for evaluating the influencing culture..................................3
Sustainable and ethical factors valued by the company globally................................................4
Strategic decision making with the reference to risk and diversification globally......................5
Describe the range of strategic global expansion routes used by the company...........................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
The global business environment can consist the pathways in which an organisation can
trade across nation. It is generally illustrated within the form of economic, cultural, political as
well as the legal variations within the entire countries. It can generally mirror to make impact of
the utilization of resources as well as their abilities for operating within the home environment of
the organization. In this, the report is based on SASOL organization which can provide a
description over McKinsey's 7s model, the pathway in which it can make impact over the global
functioning, the pathways by which an organization can adopt with the global functioning as
well (Courtney, 2020). In this, it can also include a Hofstede's dimensions of ethical, cultural and
a sustainable component for the global markets as well, the specific strategic making decisions
with the risk as well as the diversification universally and can analyse the range of strategic
international expansion which can routes for a company as well.
PART 1
Covered in PowerPoint presentation.
PART 2
Describe the governance, culture and structure for the company by the application of McKinsey's
7S model.
The model is generally applicable for measuring the structure of an organization that can
tells their effectiveness within the specific seven components that are classified into hard and soft
as well. These such components are as mentioned below:
Strategy: It generally refers to a plan of employers that is made in an effort to compete
with inside the market. It is mainly carried out for analysing the movement plan for buying gain
extra than the competitors, it's far associated with an organisation's undertaking and vision as
well. It is a tough detail so in context to SASOL Ltd., they generally do not want to compromise
within the fee in any other case their merchandise can end up inferior (Duffy, 2021).
Structure: This particularly refers back to a manner a business enterprise is forming the
teams, departments and the hierarchy levels as well. This additionally can define in precise a
person's responsibilities and responsibilities of members of the family in a company. It is
generally a tough detail and the organization such as SASOL Ltd. must separate their provider's
vicinity sensible in order that the geographical elements could not have an effect on them much.
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Shared values: The shared values can express an approximations of an ethics of the
enterprise which can be accompanied in running of all personnel which might be associated with
the important thing values given in mission, imaginative and prescient and objectives. It is a
tender detail and SASOL Ltd. is tons higher in constructing the values however cognizance on
sustainability because the traders had been worried of environment.
Style: Within this, this particular form of management is mainly carried out via the way
of means of the chief with inside the phrases of scenario confronted via way of means of the
employees. It also can be called behaviour of the pinnacle degree control that bureaucracy a code
of behaviour of their way in their communique and choice making. It is a tender detail and
SASOL's leaders ought to growth enter in paintings offline and the for the net employees they
ought to manage them via way of means of dividing them into greater teams (Kanger, 2019).
Staff: They are the employees and all of the humans who are representing a corporation
all collaboratively of their abilities. As per the SASOL Ltd., they generally have to have
interaction on line with their staffs for recognising their lifestyle and being obvious in keeping
with their hierarchy.
Skills: It is an ability, information or performance of an employee in a specific project
given. It also can be known as as competency of a business enterprise which has a tendency them
to fulfilment in keeping with their objective. In addition to this, a SASOL Ltd. must enhance the
staffs who are functioning from domestic via way of means of schooling them.
System: This represents to the set of habitual sports as well as the technique which
personnel have to undertake in order to finish their tasks. It can mainly define an infrastructure of
the agency this is worried in waft of labour accordingly it's miles a difficult element. In addition
to this, SASOL Ltd. generally have to listen within the cyber protection in order that they may
invite work at home to growth their productivity as well (Kasheeta, 2019).
The way these elements effect global functioning and the way company adopt in working
globally
The elements which are generally by hook or by crook mainly associated with the people
operating in an agency. In this, SASOL Ltd. cannot produce them effortlessly, if they are
determined to installation into a brand new market then they want to pay attention nicely on
those such effective elements. They are generally being measured while they're now no longer
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green sufficient for merger as well as acquisition because the most important chances are to fail.
This ends in failing within the subculture as well as the shared values of each of the companies.
The SASOL Ltd. is directing closer towards interacting their staffs greater on an on-line mode
for those people who generally work at home in order that they might get control their subculture
and as many personnel are leaving so early so their HR crew is successful sufficient to rent the
brand new ones. They specifically share their values well so that there are generally no
alterations needed in that, but they must use more sustainable pathways for protecting the
environment thus, it will attract more investors towards organization as well. The difficult factors
cowl the specific elements of enterprise and SASOL Ltd. can effortlessly produce shape as well
as structures amongst them. The enterprise can ought to make their merchandise much greater
high priced in addition to they ought to get greater marketplace stocks and compete on costs.
Structure of the agency ought to be in small groups to make decision-making in a well-timed
manner. The machine of the agency ought to be greater that specialize in family members with
customer, statistics visualisation throughout the enterprise and internet application optimization
(Khiew et. al., 2020).
Hofstede’s Dimensions of Culture for evaluating the influencing culture.
The Hofstede’s Dimensions of Culture is generally a structure for acknowledging the
specific diversified cultures within several nations as well as the manner of doing such
businesses as a culture generally has make an influence over the organization. The dimensions of
culture is mainly classified within the six cultures and are as detailed below:
Power Distance Index: In this, it generally considers the approaches to degree the
inequality and electricity. The shape of SASOL Ltd. is generally democratic no matter being
autocratic and there are much less versions the various electricity as well as the authority of
seniors and juniors as well. They speak at once and make a contribution of their notions.
Collectivism vs individualism: In this, it mainly represented with inside the way societies
have responsibility and are their dependency over the teams. In context with SASOL Ltd., the
employees are self-dependable and feature robust self-desires in addition to self-achievement.
They generally recall to be unbiased as well.
Uncertainty Avoidance Index: In this, it can have stated the premise of putting up with an
uncertainty and inexactness as well. The excessive index of it will be struggling low uncertainty
and vice versa. In context with SASOL Ltd. it mainly incorporates an openness as well as that
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they can take their paintings as a possibility in relation with enforcing the modern notions so the
business enterprise can accept their suggestions as well (Kolossvary, Dory and Feszty, 2020).
Femininity vs Masculinity: It is known as the distinction in difficult and smooth as it is
far linked with the society's prioritize their achievement behaviour in sexuality, equality and
attitude. Masculinity is thought for exclusive gender, roles, assertive and wealth improving.
Femininity is shaped of fluid gender roles, nurture and great of life. The personnel of SASOL
Ltd. are greater masculine as they may be aggressive and influenced which can acquire the
organisational goals.
Short term vs long term orientation: In this, the long time period orientation can take time
and they may be characterized via ways of means of long time growth, perseverance as well as
persistence. Within this, the Short time period orientation would not take that lots time and are
characterized via way of means of brief effects and conventional values. In context with SASOL
Ltd., it is greater into quick time period orientation as they can collaborate with various different
organizations across nation.
Restraint vs Indulgence: In this, indulgence can refer to the reputation of a society in a
laugh and enjoyment as well. Whereas, the concept of restraint can specifically refer to a society
this is being regulated in a few rules. The organisation is having a dissipated subculture as their
employees have bendy time as well as an alternative for driving the shape domestic which
additionally now no longer make influences the high-satisfactory of drivings as well.
Sustainable and ethical factors valued by the company globally.
Environmental and regulatory considerations: In this, SASOL Ltd. generally needs to be
more concentrated over the environmental aspects as well as can select some specific standards
for not polluting the states or cities by simply managing their wastage while manufacturing
goods.
Manufactured trash pollution: In context with SASOL Ltd., the organization is somehow
careful in their managing their wastes as they can care for their society and sustainable norms as
well (Loonam, 2021).
Safe working conditions: In this, SASOL Ltd. as an organization is caring for their every worker
as well as can have formed an effective lifesaving rules and thus can attains a safe working
environment for them as well.
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Ethics and corruption: In this, paying bribes is specifically avoided within some of the
countries as followed at even greater authorities, which can lead to downgrading the economy of
the country more indirectly. In this, SASOL Ltd. always strictly forbid their workers in order to
pay as well as accept for the bribes.
Strategic decision making with the reference to risk and diversification globally.
The specific strategic selection making are mainly associated with the mission,
imaginative and prescient as well as the objectives of an organisation. There are a number of the
standards on worldwide diversification which are the use of the company's abilities in addition to
getting an access towards more recent assets as well as the generation with inside the
marketplace of various different nations. There are benefits from economies of scale as well as
can lowering the producing fee via way of means of arranging the assets from various different
nations in addition to occupying the low fee labours via way of means of diversifying. In this,
getting to understand the new reviews as well as the information’s via merger and acquisition in
addition to growing the performance with inside the overall performance of the company.
Therefore, in diversification it's miles important for SASOL Ltd. to use the effective 5 styles of
ranges which can compare risks, examine them, shape plan, tune chance as well as manipulate
them via way of means of making choices. Thus, globalisation has a tendency to alternate the
effective management styles, can lower worldwide exchange limitations as well as make the
strategic choices in addition to put into effect them (Raghav, 2022).
Describe the range of strategic global expansion routes used by the company.
The worldwide growth is from time to time elaborate for firms. The groups do not need
to characteristic in an excessive opposition marketplace in order that they can enlarge as it's
miles in a higher manner to reap the increase approaches. There are generally the five worldwide
growth techniques that may be followed with the aid of using business enterprise that are
protecting a mild footprint, obtaining a clean product approach with the aid of using trying out
the product with inside the focused audiences, make pals for choice making as well as to realize
approximately the opportunities as well (Tsai and Wang, 2019).
CONCLUSION
From the above discussion, it has been concluded that global business environment is
generally essential for both nation and businesses itself. It can offer a comprehensive platform in
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order to grow more customers of the services and products as well. It mainly ensures the
development and growth of the nations and businesses as well. In this, the multinational
companies have an influence over the quality of life for various people across nation.
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REFERENCES
Books and Journals:
Courtney, R., 2020. Strategic management in the third sector. Bloomsbury Publishing.
Duffy, E., 2021. Key drivers in digital marketing management.
Geschwill, R. and Nieswandt, M., 2020. Cracks in the World View of Classical Management.
In Lateral Management (pp. 39-61). Springer, Cham.
Kanger, L., Geels, F.W., Sovacool, B. and Schot, J., 2019. Technological diffusion as a process
of societal embedding: Lessons from historical automobile transitions for future electric
mobility. Transportation Research Part D: Transport and Environment, 71, pp.47-66.
Kasheeta, T., 2019. Challenges encountered in the implementation of the strategic plan 2014-
2018: A case study of Nampower (PTY) (Doctoral dissertation, University of Namibia).
Khiew, K.F., Chen, M., Shia, B.C. and Pan, C.H., 2020. The Implementation of Adopted
Balanced Scorecard with New Insight Strategy Framework for the Healthcare Industry: A
Case Study. Open Journal of Business and Management, 8(2), pp.600-627.
Kolossvary, T., Dory, T. and Feszty, D., 2020. Formula SAE as a Model Environment to
Innovate Automotive Product Development. Economic and Social Development: Book of
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Loonam, J., 2021. Towards Digital Transformation: Implications for Strategic Change.
In Reviving Businesses With New Organizational Change Management Strategies (pp.
56-70). IGI Global.
Raghav, S., 2022. Coaching-Style Leadership’s Role in the Change Management Process in
Mechanistically Structured Organizations: A Narrative Inquiry Study (Doctoral
dissertation, University of Phoenix).
Staples, C., 2019. Project Initiation and Army Design Methodology: A Structured Approach to
Project Success (Doctoral dissertation, The College of St. Scholastica).
Tsai, S.B. and Wang, K., 2019. Using a novel method to evaluate the performance of human
resources in green logistics enterprises. Ecological Chemistry and Engineering, 26(4),
pp.629-640.
Vătămănescu, E.M., Alexandru, V.A., Mitan, A. and Dabija, D.C., 2020. From the deliberate
managerial strategy towards international business performance: A psychic distance vs.
global mindset approach. Systems Research and Behavioral Science, 37(2), pp.374-387.
Vetrova, N.M., Ryvkina, O.L. and Gaisarova, A.A., 2018. Problem aspects of organizing the
process of strategy implementation of a construction company. In Materials Science
Forum (Vol. 931, pp. 1276-1280). Trans Tech Publications Ltd.
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